Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — FY2007 Earnings Presentation
14 slides from Jb Hi-fi's earnings presentation, Aug 14, 2007
Slide 1: JB Hi-Fi Limited Full Year Results Presentation – June 2007
For personal use only JB Hi-Fi Limited Full Year Results Presentation – June 2007 14 August 2007
Slide 2: Agenda
AGENDA For personal use only 1. Performance 2. Historical Performance 3. Trading Update 4. Financial Detail 5. Store Update 6. Investment Checklist Richard Uechtritz Richard Murray CEO CFO 2
Slide 3: 1. Performance
1. PERFORMANCE For personal use only Strong performance for 12 months to 30 June 2007: Growth against PCP q Sales $1,282m 35.5% Û q Comparable store sales growth 11.4% q NPAT $40.4m 56.5% Û q Earnings per share 38.8 cps 54.9% Û q Return on invested capital 32% +6.5% Û q Final dividend – fully franke
Slide 4: 2. Historical Performance
2. HISTORICAL PERFORMANCE For personal use only Strong growth in sales & earnings since MBI in July 2000 1,282m 65.5m 40.4m Û36% Û47% Û57% 946m Û36% 44.5m Û28% 25.8m Û32% 694m 34.7m Û54% 19.5m Û52% Û41% 452m 22.8m 13.8m Û27% 356m Û37% Û60% 16.7m Û43% 8.6m 249m Û44% 11.6m 6.2m Û39% Û61% 155m Û104% 5.
Slide 5: 3. Trading Update – Sales Product Mix
3. TRADING UPDATE For personal use only Sales Product Mix FY07 Total Stores: 89 (JB Aust. 71, CA 6, JB NZ 1, H&S 11) Domestic Appliances Music, Movies & Games 6% (FY06: 5%) 33% (FY06: 35%) 1 18 6 5 23 Consumer Electronics 61% (FY06: 60%) 24 12 5
Slide 6: 3. Trading Update – Trading Performance
3. TRADING UPDATE For personal use only Trading Performance § Company traded strongly from March to June 2007. § Consolidated comparable store sales growth in the second half of FY07 was 18.0%, JB Hi-Fi stores 18.3% and Clive Anthonys stores 15.7%. § All product categories were solid. § Games, DVD,
Slide 7: 3. 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. § The performance of the Clive Anthonys business improved in the second half, with comparable store sales 2.7% positive for the full year. § Stronger trading
Slide 8: 4. Financial Detail – Profit and Loss Statement
4. FINANCIAL DETAIL For personal use only Profit and Loss Statement FY07 FY06 $m Consolidated Consolidated Growth Sales 1,281.8 945.8 35.5% Comparative Store Sales Growth 11.4% 5.3% Gross Profit 283.4 212.4 33.4% Gross Margin 22.1% 22.5% -39 bps EBITDA 76.4 52.0 46.9% Depreciation & Amortisation 10.
Slide 9: 4. Financial Detail – Balance Sheet
4. FINANCIAL DETAIL. . . For personal use only Balance Sheet FY07 FY06 $m Consolidated Consolidated Movement Cash 23.7 4.5 19.2 Receivables 45.2 28.3 16.9 Inventories 211.3 161.1 50.2 Other Current Assets 3.5 2.8 0.7 Total Current Assets 283.7 196.8 87.0 Fixed Assets 80.9 57.2 23.7 Brandname & Goodw
Slide 10: 4. Financial Detail – Cashflow Statement
4. FINANCIAL DETAIL. . . For personal use only Cashflow Statement FY07 FY06 $m Consolidated Consolidated EBITDA 76.4 52.0 Change in Working Capital 5.6 (17.9) Net Interest Paid (7.1) (5.7) Income Tax Paid (15.2) (11.3) Other 4.5 (1.5) Net Cashflow from Operations 64.1 15.6 Purchases of F,F & E (34.4
Slide 11: 4. Financial Detail – Working capital and key ratios
4. FINANCIAL DETAIL. . . For personal use only Working capital and key ratios: FY07 FY06 § Inventory management has been enhanced $m Consolidated Consolidated in all categories. (Increase)/Decrease in current assets § Inventory has increased overall due to new Inventory (42.6) (59.0) store inventory
Slide 12: 5. Store Update
5. STORE UPDATE For personal use only Ø 13 JB Hi-Fi stores were opened during FY07: § NSW: Wollongong, Glendale § QUEENSLAND: Carindale, Chermside, Ipswich § VICTORIA: Broadmeadows, Essendon, Watergardens, Ballarat § ADELAIDE: Elizabeth Total = 89 § PERTH: Myaree, Midland NZ - 12 § NEW ZEALAND: Quee
Slide 13: 6. Investment Checklist
6. 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 (72 end FY07)
Slide 14: Appendix – Store Movements during FY07
Appendix For personal use only Store Movements during FY07 Clive Hill & JB Hi-Fi Anthonys JB Hi-Fi Stewart Total Aust Aust NZ NZ Stores at start of FY07 60 6 - - 66 opened 12 - 1 - 13 acquired - - - 11 11 closed (1) - - - (1) Stores at end of FY07 71 6 1 11 89 Shopping centres 33 - - 2 35 High Stree