Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — FY2021 Earnings Presentation
39 slides from Jb Hi-fi's earnings presentation, Aug 16, 2021
Slide 1: JB Hi-Fi Limited FY21 Results Presentation
JB Hi-Fi Limited FY21 Results Presentation JB HI-FI LIMITED
Slide 2: Agenda
Agenda 1. Group CEO Transition 2. Group Overview 3. JB HI-FI Australia and JB HI-FI New Zealand 4. The Good Guys 5. Group Balance Sheet and Cash Flow 6. Group FY22 Trading Update 7. Investment Checklist Terry Smart Nick Wells Incoming Group CEO Group CFO JB HI-FI LIMITED PAGE 2
Slide 3: Group CEO Transition Update
1. Group CEO Transition Update
Slide 4: Group CEO Transition
Group CEO Transition ▪ As previously announced: ▪ Richard Murray to leave JB HI-FI for a new role; ▪ Terry Smart to succeed Richard Murray as Group Chief Executive Officer; ▪ Nick Wells, the Group’s Chief Financial Officer, will join the Board as an Executive Director; and ▪ Biag Capasso appointed a
Slide 5: Group Overview
2. Group Overview
Slide 6: Group Model
Group Model Two iconic Australian retail brands 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 / demographic savvy demograph
Slide 7: Group Model
Group Model Underpinned by 5 unique competitive advantages 1 Scale 2 Low Cost Operating Model 3 Quality Store Locations ▪ #1 player in Australian market with opportunity ▪ Low CODB relative to retail peers driven by: JB HI-FI for further consolidation ▪ Productive floor space with high sales per ▪ M
Slide 8: Generating sustainable long-term growth
Generating sustainable long-term growth The Group today released its FY21 Sustainability Report, outlining our commitment to having a positive impact on our people, our community and our environment Sustainability Policy focus areas FY21 Achievements Our People & Culture ▪ Prioritised the safety of
Slide 9: Group FY21 Performance
Group FY21 Performance FY21 Group Performance AUD FY21 FY20 Growth Total sales ($m) 8,916.1 7,918.9 997.2 12.6% ▲ Earnings before interest and tax ($m) 743.1 483.3 259.8 53.8% ▲ Net profit after tax ($m) 506.1 302.3 203.8 67.4% ▲ Earnings per share (basic ¢) 440.8 263.1 +178 cps 67.5% ▲ Dividend per
Slide 10: Group FY21 Performance
Group FY21 Performance FY21 Divisional Performance FY21 FY20 Growth $m % Sales ($m) - JB HI-FI Australia 5,956.8 5,318.9 638.0 12.0% ▲ - JB HI-FI New Zealand (NZD) 261.6 222.8 38.8 17.4% ▲ - The Good Guys 2,715.7 2,388.8 326.9 13.7% ▲ Total Sales (AUDm) 8,916.1 7,918.9 997.2 12.6% ▲ EBIT ($m) - JB H
Slide 11: Group Highlights
Group Highlights 1. ScaleGroup FY21 Financial achievements Group Operational achievements ▪ Sales up 12.6% to $8.9 billion, with continued heightened ▪ The health, safety and wellbeing of our team members, customer demand for consumer electronics and home customers, business partners and the wider c
Slide 12: JB HI-FI Australia and New Zealand
3. JB HI-FI Australia and New Zealand
Slide 13: JB HI-FI Australia FY21 Performance
JB HI-FI Australia FY21 Performance AUD FY21 FY20 Growth Sales ($m) 5,956.8 5,318.9 12.0% ▲ Gross Profit ($m) 1,325.2 1,169.0 13.4% ▲ Gross Margin (%) 22.25% 21.98% +27 bps ▲ Cost of Doing Business (%) 11.19% 12.10% (91 bps) ▼ EBITDA ($m) 658.5 525.6 25.3% ▲ EBITDA Margin (%) 11.06% 9.88% +117 bps ▲
Slide 14: JB HI-FI Australia FY21 Performance
JB HI-FI Australia FY21 Performance FY21 Sales TOTAL SALES GROWTH ▪ Total sales grew by 12.0% to $5.96 billion, with comparable sales up 13.0%. Sales momentum was strong through the year, with 33.1% heightened customer demand for consumer electronics and home 27.3% 27.1% appliance products 26.0% 23.
Slide 15: JB HI-FI Australia FY21 Performance
JB HI-FI Australia FY21 Performance FY21 Earnings EBIT $ ▪ FY21 gross profit increased by 13.4% to $1.33 billion whilst gross margin was up 27 bps at 22.2%, driven by strong improvements in key categories ▪ CODB was 11.2%, down 91 bps. CODB in absolute terms grew 3.6% with disciplined cost control t
Slide 16: JB HI-FI New Zealand FY21 Performance
JB HI-FI New Zealand FY21 Performance NZD FY21 FY20 Growth Sales ($m) 261.6 222.8 17.4% ▲ Gross Profit ($m) 46.6 36.8 26.6% ▲ Gross Margin (%) 17.83% 16.54% +129 bps ▲ Cost of Doing Business (%) 13.12% 14.21% (109 bps) ▼ EBITDA ($m) 12.3 5.2 137.5% ▲ EBITDA Margin (%) 4.70% 2.32% +238 bps ▲ EBIT ($m
Slide 17: JB HI-FI New Zealand FY21 Performance
JB HI-FI New Zealand FY21 Performance FY21 Sales TOTAL SALES GROWTH ▪ Total sales were up 17.4% to NZD261.6 million, with comparable sales up 17.4%. 46.9% ▪ Hardware and Services1 sales were up 18.3%, with comparable sales up 18.3% driven by the Computers, Visual, Communications, Games Hardware and
Slide 18: JB HI-FI New Zealand FY21 Performance
JB HI-FI New Zealand FY21 Performance FY21 Earnings STATUTORY UNDERLYING ▪ Gross margin was up 129 bps to 17.8% EBIT NZD $6.0m ▪ CODB was 13.1%, down 109 bps, and in absolute terms grew by 8.4% as store wages remained well controlled $5.8m ▪ EBITDA was NZD12.3 million, up 137.5%, driven by sales gro
Slide 19: JB HI-FI Australia and New Zealand Focus Areas
JB HI-FI Australia and New Zealand Focus Areas JB HI-FI continues to execute well, whilst positioning for future growth FY22 Focus Areas • Continue to prioritise the safety of team members and customers through Covid-19 Covid-19 • Continue to adapt and respond to our customers’ changing needs • Cont
Slide 20: The Good Guys
4. The Good Guys
Slide 21: The Good Guys FY21 Performance
The Good Guys FY21 Performance AUD FY21 FY20 Growth Sales ($m) 2,715.7 2,388.8 13.7% ▲ Gross Profit ($m) 608.6 490.2 24.2% ▲ Gross Margin (%) 22.41% 20.52% +189 bps ▲ Cost of Doing Business (%) 11.67% 12.67% (100 bps) ▼ EBITDA ($m) 291.7 187.4 55.6% ▲ EBITDA Margin (%) 10.74% 7.85% +289 bps ▲ EBIT (
Slide 22: The Good Guys FY21 Performance
The Good Guys FY21 Performance FY21 Sales TOTAL SALES GROWTH ▪ Total sales grew by 13.7% to $2.72 billion, with comparable sales up 13.7%. Sales momentum was strong through the year, with 30.9% 30.2% heightened customer demand for home appliance and consumer 28.3% 26.6% 26.4% electronics products 22
Slide 23: The Good Guys FY21 Performance
The Good Guys FY21 Performance FY21 Earnings EBIT $ ▪ Gross profit was $608.6 million with gross margin up 189 bps to 22.4%, driven by strong improvements in key categories ▪ CODB was 11.7%, down 100bps, and in absolute terms grew 4.7% as store wages remained well controlled throughout the year $215
Slide 24: The Good Guys Focus Areas
The Good Guys Focus Areas The Good Guys continues to leverage its unique offer and capabilities with opportunities for improvement FY22 Focus Areas ▪ Continue to prioritise the safety of team members and customers through Covid-19 Covid-19 ▪ Continue to adapt and respond to our customers’ changing n
Slide 25: Group Balance Sheet And Cash Flow
5. Group Balance Sheet And Cash Flow
Slide 26: Group Balance Sheet and Cash Flow
Group Balance Sheet and Cash Flow Group Balance Sheet INVENTORY AUDm FY21 FY20 FY19 (Pre AASB 16) Cash 263.2 251.5 119.2 Receivables 211.6 220.3 254.4 Inventories 938.8 739.3 886.7 $860m $891m $887m $939m Other 35.7 34.7 34.6 $739m Total Current Assets 1,449.3 1,245.8 1,294.9 Fixed Assets 169.0 172.
Slide 27: Group Balance Sheet and Cash Flow
Group Balance Sheet and Cash Flow Group Cash Flow Statement Group Performance Indicators AUDm FY21 FY20 FY19 FY21 FY20 FY19 (Pre AASB 16) EBITDA 961.6 718.0 429.1 Fixed Charge Ratio 3 4.6x 3.4x 3.0x Change in Working Capital (241.0) 402.1 (16.9) Interest Cover 3 228.4x 40.4x 26.1x Net Interest Paid
Slide 28: Capital Management
Group Balance Sheet and Cash Flow Capital Management TOTAL DIVIDEND UP 51.9% TO 287 CPS ▪ The final dividend is 107 cents per share (cps) fully franked, up 17 cps or 18.9%, bringing the total dividend for FY21 to 287 cps, up 98 cps or 51.9%, and representing 65% of NPAT ▪ The Board will continue to
Slide 29: FY22 Trading Update
6. FY22 Trading Update
Slide 30: Group FY22 Trading Update
Group FY22 Trading Update FY22 YTD sales update and outlook ▪ The Group provides the following FY22 YTD sales update, for the period 1 July 2021 to 15 August 2021: Comparable Total Sales Growth FY22 YTD vs FY21 vs FY20 vs FY21 vs FY20 JB HI-FI Australia (14.9%) 19.4% (14.6%) 19.1% JB HI-FI New Zeala
Slide 31: Investment Checklist
7. Investment Checklist
Slide 32: Investment Checklist
Investment Checklist 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 team High return
Slide 33: Appendices
Appendices
Slide 34: Appendix I: Group Profit and Loss
Appendix I a) Group Profit and Loss AUDm FY21 FY20 FY19 FY18 FY171. (Pre AASB16) (Pre AASB16) (Pre AASB16) Sales 8,916.1 7,918.9 7,095.3 6,854.3 5,628.0 Gross Profit 1,977.2 1,694.1 1,527.1 1,470.3 1,230.5 Gross Margin 22.18% 21.39% 21.52% 21.45% 21.86% EBITDA 961.6 718.0 429.1 411.7 360.3 Depreciat
Slide 35: Appendix I: Group CODB reconciliation
Appendix I b) Group CODB reconciliation AUDm FY21 FY20 Other income (ex interest revenue) (1.3) (2.5) Sales and marketing expenses 845.8 809.2 Occupancy expenses 293.6 313.7 less depreciation, amortisation & impairment (207.6) (224.1) Administration expenses 41.3 41.7 less depreciation & impairment
Slide 36: Appendix I: Group Balance Sheet
Appendix I c) 5 year Group Balance Sheet AUDm FY21 FY20 FY19 FY18 FY17 (Pre AASB16) (Pre AASB16) (Pre AASB16) Cash 263.2 251.5 119.2 72.0 72.8 Receivables 211.6 220.3 254.4 204.7 193.6 Inventories 938.8 739.3 886.7 891.1 859.7 Other 35.7 34.7 34.6 42.7 41.4 Total Current Assets 1,449.3 1,245.8 1,294
Slide 37: Appendix I: Group Cash Flow
Appendix I d) 5 year Group Cash Flow AUDm FY21 FY20 FY19 FY18 FY17 (Pre AASB16) (Pre AASB16) (Pre AASB16) EBITDA 961.6 718.0 429.1 411.7 337.9 Change in Working Capital (241.0) 402.1 (16.9) (6.6) (52.7) Net Interest Paid on Borrowings (1.7) (10.4) (13.1) (14.5) (7.6) Interest on lease liabilities (2
Slide 38: Appendix II: Group Profit and Loss Breakdown
Appendix II e) Group Profit and Loss – Breakdown FY21 FY20 JB HI-FI JB HI-FI JB HI-FI JB HI-FI Growth TGG Group TGG Group AUDm AUST NZ (NZD) AUST NZ (NZD) Sales 5,956.8 261.6 2,715.7 8,916.1 5,318.9 222.8 2,388.8 7,918.9 12.6% ▲ Gross Profit 1,325.2 46.6 608.6 1,977.2 1,169.0 36.8 490.2 1,694.1 16.7
Slide 39: Appendix III: Group store reconciliation
Appendix III 316 stores across Australia and New Zealand1 Group store reconciliation FY21 FY20 Opened Converted Closed Total 1 Australia 2 JB HI-FI 138 1 (1) (1) 137 23 JB HI-FI HOME 59 - 1 - 60 14 39 197 1 - (1) 197 22 New Zealand 5 JB HI-FI 14 - - - 14 JB HI-FI HOME - - - - - 10 30 14 - - - 14 61