Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — HY10 Earnings Presentation
21 slides from Jb Hi-fi's earnings presentation, Feb 8, 2010
Slide 1: Half Year Results Presentation 31 December 2009
For personal use only JB Hi Hi--Fi Limited Half Year Results Presentation 31 December 2009 8 February 2010
Slide 2: Agenda
Agenda For personal use only 1. Performance 2. Historical Performance 3 Trading Update 3. 4. Financial Detail 5 Dividends 5. 6. Store Update 7 Change of CEO 7. 8. Investment Checklist Richard Uechtritz Richard Murray 2 CEO CFO
Slide 3: Performance: Strong performance for 6 months to 31 December 2009
1. PERFORMANCE St Strong performance f ffor 6 months th to t 31 December D b 2009 For personal use only HY09 HY10 Growth Sales $1.26b $1.55b 23.2% ½ ½ Gross Margin 21.4% 21.1% -26 bps ½ Cost of Doing Business 13.6% 13.2% -39 bps EBIT Margin 7.1% 7.2% +10 bps ½ NPAT $59.0m $76.0m 28.8% ½
Slide 4: Historical Performance: Strong growth in sales & earnings since MBI
2. HISTORICAL PERFORMANCE St Strong growth th iin sales l & earnings i since i MBI iin J July l 2000 For personal use only SALES +23% EBIT +25% NPAT +29% ~ 2.80b 142.0m +39% ~117-120m GUIDANCE +FULL YEAR GUIDANCE 2.33b + FULL YEAR G +27% + 111.4m 94.4m +25% 102.3m +45% +56% 1.83b +43% 76.0m 1.55b +2
Slide 5: Trading Update: Trading Performance
3. TRADING UPDATE For personal use only Trading Performance Strong result – the company has traded well through what was a challenging and very competitive period for many retailers. Consolidated comparable store sales growth for HY10 was 9.9%. Consolidated comparable store sales in December w
Slide 6: Trading Update: Financial Metrics
3. TRADING UPDATE…. For personal use only Financial Metrics Gross margin at 21.1% (pcp: 21.4%) was pleasing given the tough competitive environment, the growth of lower margin product categories of games and computers and our investment in everyday low prices. Cost of doing business was down 39
Slide 7: Trading Update: New Stores
3. TRADING UPDATE…. For personal use only New Stores Opened Ope ed 15 5 new e JJB Hi-Fi sto stores es in Australia ust a a du during g HY10. 0 Planning to open circa 7 stores across Australia and New Zealand in 2HY10 (total 22 stores for FY10). Australia Sales grew 23.7% to $1.5b with comparab
Slide 8: Trading Update: Trading Outlook
3. TRADING UPDATE…. For personal use only Trading Outlook We expect FY10 to be another good year of sales and earnings growth. January 2010 trading has been solid with comparable sales for the period up 7.2%. Gross Margin is currently meeting budget. Confident of continued solid growth in mo
Slide 9: Financial Detail: Profit and Loss Statement
4. FINANCIAL DETAIL P fit and Profit dLLoss St Statement t t For personal use only AUST NZ CONSOLIDATED AU$m HY09 HY10 Growth HY09 HY10 Growth HY09 HY10 Growth Sales 1,194.5 1,477.2 23.7% 67.0 76.6 14.2% 1,261.6 1,553.8 23.2% Gross Profit 258.1 258 1 316.4 316 4 22.5% 22 5% 11.3 11 3 11.4 11 4 1.0%
Slide 10: Financial Detail: Balance Sheet
4. FINANCIAL DETAIL…. Balance Sheet For personal use only AU$m HY09 HY10 FY09 Cash 90.8 127.4 35.8 Receivables 97.3 113.4 60.3 Inventories 300.3 373.3 324.5 Other Current Assets 4.6 6.4 5.7 Total Current Assets 493 0 493.0 620 4 620.4 426 2 426.2 Fixed Assets 131.4 155.1 136.1 Brandname & Goodwill 8
Slide 11: Financial Detail: Cashflow Statement
4. FINANCIAL DETAIL…. Cashflo Statement Cashflow For personal use only AU$m HY09 HY10 EBITDA 97.9 122.6 Change in Working Capital 108.5 73.6 Net Interest Paid (4.4) (2.7) Income Tax Paid (21.5) (29.4) Other 9.1 4.4 Net Cashflow from Operations 189.6 168.4 Purchases of P&E (29.1) (30.3) Payments for
Slide 12: Financial Detail: Working capital and key ratios
4. FINANCIAL DETAIL…. Working capital and key ratios: For personal use only AU$m HY09 HY10 (Increase)/decrease in current assets Working capital is an ongoing focus of management Inventory (28.4) (48.6) and is in-line with current expectations. Receivables (44.3) (53.2) Inventory Management: Oth
Slide 13: Dividends
5. DIVIDENDS For personal use only The half year dividend has been increased 120% to 33.0 cents per share fully franked. franked Target payout ratio has increased to 60% reflecting the Company’s continuing strong cashflows from existing stores and overall ~ 60% Target company growth. Payout Rati
Slide 14: Store Update: stores opened in HY10
6. STORE UPDATE 15 stores opened in HY10 For personal use only ¾ 22 new stores to open p in FY10 (15 ( opened p in HY10)) 22 JB Hi-Fi stores: • NSW: Albury*, Artarmon , Belrose*, Eastgardens*, Moore Park*, Top Ryde*, Wollongong Central*, World Square*, Wagga Wagga • QLD: Brisbane CBD (2x)*, (2x) ,
Slide 15: Change of CEO – Business as Usual
7. CHANGE OF CEO – BUSINESS AS USUAL For personal use only Richard Uechtritz to retire as CEO July /August 2010 after 10 years with the Company. Terry Smart an Executive Director since July 2000 and COO will become CEO as part of the Company’s long term succession plan. Terry joined the Compan
Slide 16: Investment Checklist
8. INVESTMENT CHECKLIST For personal use only Why JB Hi Hi-Fi Fi should continue to grow and trade well well. 3 Strong and unique retail model. 3 Operates O t mainly i l in i high hi h growth th h home entertainment t t i t and d ttechnology h l sector. t 3 Low cost of doing business – best of liste
Slide 17: Appendix I: Store movements and geographic breakdown
APPENDIX I For personal use only Store movements during HY10 Geographic breakdown# HY10 FY09 Opened Rebranded Closed Total AUSTRALIA JB Hi-Fi 98 15 - - 113 Clive Anthonys 11 - - - 11 109 15 - - 124 1 NEW ZEALAND JB Hi-Fi 8 - 1* - 9 29 Hill & Stewart 6 - - (2)* 4 14 14 - 1 (2) 13 123 15 1 (2) 137 7 S
Slide 18: Appendix II: EBIT and CODB reconciliation
APPENDIX II For personal use only a)) EBIT reconciliation AU$m HY09 HY10 Profit for the year (per Appendix 4D) 59.0 76.0 add back - income tax expense 26.3 32.7 Profit before Ta Tax 85 4 85.4 108 7 108.7 add back - interest received (1.0) (0.6) - interest expense 4.8 3.2 - net interest expense 3.8 2
Slide 19: Appendix II: Store types and H&S closure
APPENDIX II… For personal use only c)) Store types yp JB Hi-Fi is currently targeting 210 stores in Australia and New Zealand. This target is split between Tier 1 (160 stores) and Tier 2 (50 stores). While each store is different, broadly the stores can be defined as follows: Tier 1: approximately p
Slide 20: Appendix III: Terry Smart to succeed Richard Uechtritz as CEO
APPENDIX III For personal use only COMPANY ANNOUNCEMENT 8 February 2010 Terry Smart to succeed Richard Uechtritz as CEO JB Hi-Fi CEO Richard Uechtritz, announces today his intention to retire as chief executive in July/August 2010 following 10 years of service with the company. Chairman Patrick Elli
Slide 21: Appendix III: Terry Smart to succeed Richard Uechtritz as CEO (continued)
APPENDIX III… For personal use only COMPANY ANNOUNCEMENT 8 February 2010 Terry Smart to succeed Richard Uechtritz as CEO “Terry and I have worked together for 16 years and I have no doubt that he will make an outstanding CEO. He has made a huge contribution to the company’s success and we are on the