Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — 2021 Macquarie Australia Conference
37 slides from Jb Hi-fi's conference presentation, May 6, 2021
Slide 1: Macquarie Conference Presentation
JB HI-FI LIMITED 60 CITY ROAD SOUTHBANK VIC 3006 ABN: 80 093 220 136 www.jbhifi.com.au COMPANY ANNOUNCEMENT 6 May 2021 For personal use only Macquarie Conference Presentation Please see attached the Presentation to today’s Macquarie Conference as authorised by the Group CEO, Richard Murray. Doug Smi
Slide 2: JB Hi-Fi Limited 2021 Macquarie Australia Conference
rsonal use only JB Hi-Fi Limited 2021 Macquarie Australia Conference 6 MAY 15 JB HI-FI 2021 AUGUSTLIMITED 2016 PAGE 1
Slide 3: Agenda
Agenda 1. The Group Model rsonal use only 2. Generating sustainable long-term growth 3. JB HI-FI Focus Areas update 4. The Good Guys Focus Areas update 5. Group Focus Areas update 6. Group Q3 FY21 Trading 7. Group CEO Transition 8. Investment checklist JB HI-FI LIMITED PAGE 2
Slide 4: The Group Model
rsonal use only 1. The Group Model 6 MAY 15 JB HI-FI 2021 AUGUSTLIMITED 2016 PAGE 3
Slide 5: The Group Model
The Group Model Two iconic Australian retail brands rsonal use only Leading retailer of technology and Leading retailer of home appliances Product offering consumer electronics and consumer electronics Strong position with a young tech- Strong position with home-making Target customer base / demogra
Slide 6: The Group Model: Scale
The Group Model 1 Scale rsonal use only Consistent with international experience, consolidation results in a clear leader in each key market. The benefits of scale lead to: Improved Buying terms Relevance to Suppliers at a global level Diversified category Price Competitiveness exposure Opportunitie
Slide 7: The Group Model: Low Cost Operating Model
The Group Model 2 Low Cost Operating Model rsonal use only Lowest cost of doing business of major Australian listed retailers and international consumer electronics retailers, driven by: Productive floor space with high sales Continued focus on productivity and per square metre minimising unnecessar
Slide 8: The Group Model: Quality Store Locations
The Group Model 3 Quality Store Locations rsonal use only 1 Major shopping centre, Leading homemaker 2 23 CBD, homemaker centre and standalone store 14 39 and airport store locations 22 locations 5 10 30 High foot traffic and Destination locations, 61 3 convenient locations easily accessible 28 54 5
Slide 9: The Group Model: Supplier Partnerships
The Group Model 4 Supplier Partnerships rsonal use only Strong and lasting Quality store locations and partnerships with all high traffic websites provide major suppliers, scale on a suppliers high visibility for local and global level their product Dual brand retail approach provides: Knowledgeable
Slide 10: The Group Model: Multichannel Capability
The Group Model 5 Multichannel Capability rsonal use only Integrated, high quality Store network provides: in-store, online and phone offer • Fast online fulfillment, via delivery that provides customers with from store or click and collect choice on how to transact with us • Online customers with a
Slide 11: Generating sustainable long-term growth
rsonal use only 2. Generating sustainable long-term growth 6 MAY 15 JB HI-FI 2021 AUGUSTLIMITED 2016 PAGE 10
Slide 12: Generating sustainable long-term growth: Our People & Culture
Generating sustainable long-term growth The Group is committed to having a positive impact on our people, our community and our environment rsonal use only Sustainability Policy focus areas FY21 YTD Achievements ▪ Prioritised the safety of team members through Covid-19 ▪ Roll out of an updated Equal
Slide 13: Generating sustainable long-term growth: Communities
Generating sustainable long-term growth The Group is committed to having a positive impact on our people, our community and our environment rsonal use only Sustainability Policy focus areas FY21 YTD Achievements ▪ FY21 YTD workplace giving donations totalling $2.5 million and $26.9 million since inc
Slide 14: Generating sustainable long-term growth: Our Environment
Generating sustainable long-term growth The Group is committed to having a positive impact on our people, our community and our environment rsonal use only Sustainability Policy focus areas FY21 YTD Achievements ▪ Partnered with a supplier to trial 100% recyclable and sustainable packaging for selec
Slide 15: JB HI-FI
rsonal use only 3. JB HI-FI Focus Areas update 6 MAY 15 JB HI-FI 2021 AUGUSTLIMITED 2016 PAGE 14
Slide 16: JB HI-FI: Category Evolution
JB HI-FI Focus Areas update 1. CATEGORY EVOLUTION rsonal use only Diversified product categories strategically positioned to support the overall offer Destination Traffic drivers Basket Builders Niche and Incubator JB HI-FI LIMITED PAGE 15
Slide 17: JB HI-FI: Category Evolution
JB HI-FI Focus Areas update 1. CATEGORY EVOLUTION rsonal use only With continued category expansion and technology led product development JB HI-FI LIMITED PAGE 16
Slide 18: JB HI-FI: Category Evolution
JB HI-FI Focus Areas update 1. CATEGORY EVOLUTION rsonal use only And constant investment in, and optimization of, category space to maintain the productivity of floor space * * 2010 2016 2021 *JB Hi-Fi Home stores only JB HI-FI LIMITED PAGE 17
Slide 19: JB HI-FI: Store Portfolio Evolution
JB HI-FI Focus Areas update 2. STORE PORTFOLIO EVOLUTION rsonal use only Sophisticated, data driven approach to evaluating each catchment Openings Richmond, VIC – Jun 2021 Karrinyup, WA – Jul 2021 Closures Pitt Street, NSW – Feb 2021 Relocations Holmesglen, VIC – Jun 2021 Loganholme, QLD – Sep 2021
Slide 20: JB HI-FI: Store Portfolio Evolution
JB HI-FI Focus Areas update 2. STORE PORTFOLIO EVOLUTION rsonal use only That guides the optimisation of and investment in the store network, including the trialling of RICHMOND ~500sqm High foot traffic, Small format alternate store formats and tailored product propositions HOLMESGLEN ~c2,100sqm La
Slide 21: JB HI-FI: Productivity
JB HI-FI Focus Areas update 3. PRODUCTIVITY rsonal use only Continue to enhance the customer experience and drive productivity with technology led improvements to systems and processes • Back of House excellence program • Digital Receiving via PDA • Trialling of new store space and range deployment
Slide 22: The Good Guys
rsonal use only 4. The Good Guys Focus Areas update 6 MAY 15 JB HI-FI 2021 AUGUSTLIMITED 2016 PAGE 21
Slide 23: The Good Guys: Category Evolution
The Good Guys Focus Areas update 1. CATEGORY EVOLUTION rsonal use only Continue to improve ranging with the expansion of new and existing brands JB HI-FI LIMITED PAGE 22
Slide 24: The Good Guys: Category Evolution
The Good Guys Focus Areas update 1. CATEGORY EVOLUTION rsonal use only And constant optimization of the category space, through our store upgrade program VISUAL & TECH LAUNDRY LAUNDRY &&CLEAN CLEAN KITCHEN KITCHEN && COOK COOK Creating a category layout aligned to Showcasing Home Appliances Supporti
Slide 25: The Good Guys: Store Portfolio Evolution
The Good Guys Focus Areas update 2. STORE PORTFOLIO EVOLUTION rsonal use only Continued investment in the store portfolio Openings Launceston, TAS – July 2021 Relocations Belmont, WA – Nov 2020 Rockingham, WA – Aug 2021 JB HI-FI LIMITED PAGE 24
Slide 26: The Good Guys: Productivity
The Good Guys Focus Areas update 3. PRODUCTIVITY rsonal use only Continue to enhance the customer experience and drive productivity with technology led improvements to systems and processes • Expansion of PDA capabilities including Receiving, Allocation, Stocktaking & Dispatching Apps • Sales and Se
Slide 27: Group
rsonal use only 5. Group Focus Areas update 6 MAY 15 JB HI-FI 2021 AUGUSTLIMITED 2016 PAGE 26
Slide 28: Group: Online
Group Focus Areas update 1. ONLINE rsonal use only Growing online offer that gives customers choice on how they choose to shop with us Destination Basket Builders • Flexible home delivery options including 3-hour rush, same day and next day delivery • 1 Hour Click & Collect • Investment in e-Commerc
Slide 29: Group: Supply Chain
Group Focus Areas update 2. SUPPLY CHAIN rsonal use only Continued investment in a fit for purpose Group Supply Chain that supports In-store and Online fulfillment Destination • BasketofBuilders Consolidation 18 Bulky Goods DC’s into Group Home Delivery Centres (“HDCs”) with Sydney, Melbourne and Br
Slide 30: Group: Group Commercial Businesses
Group Focus Areas update 3. GROUP COMMERCIAL BUSINESSES rsonal use only Continue to see growth opportunities in a fragmented market Destination Basket Builders • Establishing our position as leading provider of key products and services to Commercial, Government & Education markets • Ability to leve
Slide 31: Group Q3 FY21 Trading
rsonal use only 6. Group Q3 FY21 Trading 6 MAY 15 JB HI-FI 2021 AUGUSTLIMITED 2016 PAGE 30
Slide 32: Group Q3 FY21 Trading
Group Q3 FY21 Trading As previously announced on 28 April 2021: rsonal use only ▪ The Q3 FY211 sales results were: Q3 FY21 Q3 FY21 YTD Sales Growth Total Comparable Total Comparable 10.4% 11.5% 19.4% 20.7% JB HI-FI Australia (FY20: 11.6%) (FY20: 11.3%) (FY20: 6.9%) (FY20: 6.4%) JB HI-FI New Zealand
Slide 33: Group CEO Transition
rsonal use only 7. Group CEO Transition 6 MAY 15 JB HI-FI 2021 AUGUSTLIMITED 2016 PAGE 32
Slide 34: Group CEO Transition
Group CEO Transition ▪ Richard Murray to leave JB HI-FI for a new role at the end of August 2021 rsonal use only ▪ Terry Smart to succeed Richard Murray as Group Chief Executive Officer ▪ Terry was CEO of JB Hi-Fi from May 2010 to June 2014, following ten years as Chief Operating Officer ▪ Terry ret
Slide 35: Investment Checklist
rsonal use only 8. Investment Checklist 6 MAY 15 JB HI-FI 2021 AUGUSTLIMITED 2016 PAGE 34
Slide 36: Investment Checklist
Investment Checklist rsonal use only High quality store portfolio and Unique and relevant brands unrivalled customer service Flexible business model – history of Multichannel capability category growth and development Diversity of product categories across brands Experienced management tea
Slide 37: Questions
rsonal use only QUESTIONS JB HI-FI LIMITED PAGE 36