Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — HY08 Earnings Presentation
16 slides from Jb Hi-fi's earnings presentation, Feb 12, 2008
Slide 1: Half Year Results Presentation – December 2007
For personal use only JB Hi-Fi Limited Half Year Results Presentation – December 2007 12 February 2008
Slide 2: Agenda
AGENDA For personal use only 1. Performance 2. Historical Performance 3. Trading Update 4. Financial Detail 5. Dividends 6. Store Update 7. Investment Checklist Richard Uechtritz Richard Murray CEO CFO 2
Slide 3: Performance
1. PERFORMANCE For personal use only Strong performance for 6 months to 31 December 2007: HY08 Growth q Sales $988.5m 50.0% Û q Comparable store sales growth 18.8% (Aust: 19.6%, NZ: 0.4%) q EBIT Margin 6.6% +22 bps Û q NPAT $41.9m 60.2% Û q Earnings per share 40.0 cps 58.2% Û q Interim dividend - fu
Slide 4: Historical Performance
2. HISTORICAL PERFORMANCE For personal use only Strong growth in sales & earnings since MBI in July 2000 SALES HY08 EBIT HY08 NPAT HY08 +50% +55% +60% ~ 90-94m ~ 1.8b ~ 57-60m 65.5m 64.8m 1,282m +47% +55% +36% 41.9m 40.4m +60% +57% 989m 946m +50% 44.5m +36% +28% 34.7m 25.8m 694m +52% +32% +54% 19.5m
Slide 5: Trading Update
3. TRADING UPDATE For personal use only Trading Performance § JB traded strongly throughout the first half with consolidated comparable store sales growth of 18.8% (JB Hi-Fi 20.1%, Clive Anthonys 15.0%, NZ (H&S) 0.4%). § Strong Christmas sales with all major product categories either meeting or exce
Slide 6: Trading Update: Clive Anthonys and New Zealand
3. TRADING UPDATE . . . For personal use only Clive Anthonys § The remaining 30% of Clive Anthonys was acquired on 2 July 2007 for circa $7m. § Stronger trading conditions and closer alignment to the JB Hi-Fi way of operating have helped drive solid comparable store growth in the first half of 15.0%
Slide 7: Trading Update: Industry and Trading Outlook
3. TRADING UPDATE . . . For personal use only Industry § Continues to consolidate – big getting bigger. § All categories remain very competitive. § Games, visual, DVD, navigation, computers have all good growth forecasts. Trading Outlook § In Australia, the strong momentum experienced during the fir
Slide 8: Financial Detail: Profit and Loss Statement
4. FINANCIAL DETAIL For personal use only Profit and Loss Statement $m HY08 HY07 Growth Sales 988.5 658.9 50.0% Comparative Store Sales Growth 18.8% 5.8% Gross Profit 213.3 145.9 46.2% Gross Margin 21.6% 22.1% -56 bps EBITDA 71.6 46.8 52.9% Depreciation & Amortisation 6.8 5.1 EBIT 64.8 41.8 55.3% EB
Slide 9: Financial Detail: Balance Sheet
4. FINANCIAL DETAIL. . . For personal use only Balance Sheet 31 Dec 07 31 Dec 06 30 Jun 07 Movement $m as at HY08 HY07 FY07 Cash 46.4 83.4 (37.1) 23.7 Receivables 82.2 55.4 26.9 45.2 Inventories 272.5 188.7 83.8 211.3 Other Current Assets 4.4 3.2 1.2 3.5 Total Current Assets 405.5 330.7 74.8 283.7 F
Slide 10: Financial Detail: Cashflow Statement
4. FINANCIAL DETAIL. . . For personal use only Cashflow Statement $m HY08 HY07 EBITDA 71.6 46.8 Change in Working Capital 26.4 65.5 Net Interest Paid (3.7) (3.3) Income Tax Paid (14.0) (8.5) Other non cash items 1.3 (0.5) Net Cashflow from Operations 81.7 100.1 Purchases of F,F & E (31.9) (17.9) Inv
Slide 11: Financial Detail: Working Capital and Key Ratios
4. FINANCIAL DETAIL. . . For personal use only Working capital and key ratios: $m HY08 HY07 § Inventory turnover has improved over the (Increase)/Decrease in current assets first half to 6.4 times (HY07: 5.8 times). Inventory (60.0) (27.5) § Like for like inventory turnover was 6.4 Receivables (33.5
Slide 12: Dividends
5. DIVIDENDS For personal use only § The half year dividend has been increased 100% to 10.0 cents per share fully franked. § The board is targeting a full year payout ratio of 40% in FY08. In FY07, JB’s payout ratio was just under 30%. § The board is confident that continuing strong cashflows from e
Slide 13: Store Update
6. STORE UPDATE For personal use only 15 stores opened in HY08 Ø 13 JB Hi-Fi stores were opened during HY08: § NSW: Rouse Hill, Westfield Kotara, Westpoint Blacktown, Westfield Parramatta § QUEENSLAND: Toowoomba, Westfield Strathpine, Townsville § VICTORIA: Epping Plaza Total ~ 109 § SOUTH AUSTRALIA
Slide 14: Investment Checklist
7. INVESTMENT CHECKLIST For personal use only P Strong and unique retail model. P Operates mainly in high growth home entertainment and technology sector. P Low cost of doing business – best of listed retailers. P Many new store opportunities - JB circa 120 in Australia and New Zealand (85 end HY08)
Slide 15: Appendix I: Store Movements and Geographic Breakdown
APPENDIX I For personal use only Store movements during HY08 Geographic breakdown HY08 FY07 Opened Acquired Closed Total AUSTRALIA JB Hi-Fi 71 10 - - 81 Clive Anthonys 6 2 - - 8 1 77 12 - - 89 NEW ZEALAND 21 JB Hi-Fi 1 3 - - 4 6 Hill & Stewart 11 - - - 11 12 3 - - 15 6 89 15 - - 104 28 Store Format:
Slide 16: Appendix II: Consensus Analyst Forecasts
APPENDIX II For personal use only Consensus Analyst Forecasts Report Analyst NPAT Date FY08 14-Aug-07 ABN AMRO 57.4 15-Aug-07 Austock Securities 53.0 16-Jan-08 Citigroup 59.3 17-Jan-08 CommSec 59.6 11-Feb-08 Credit Suisse 59.5 15-Aug-07 CCZ Equities 57.6 15-Aug-07 Foresight Securities 54.9 18-Oct-07