Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — H1 FY2013 Earnings Presentation
24 slides from Jb Hi-fi's earnings presentation, Feb 11, 2013
Slide 1: Half Year Results Presentation 31 December 2012
For personal use only JB Hi- Hi-Fi Limited H lf Y Half Year R Results lt PPresentation t ti 31 December 2012 11 F February b 2013
Slide 2: Agenda
AGENDA For personal use only 1. Performance 2. Profit and Loss Statement 3. Trading Performance 4 4. JB HI-FI HOME Trial 5. Outlook 6. Cash Flow and Balance Sheet 7. Di id d Dividends 8. Store Update 9. Investment Checklist Terry Smart Richard Murray CEO CFO
Slide 3: 1. Performance - Highlights
1. PERFORMANCE - HIGHLIGHTS For personal use only JB Hi-Fi branded store sales up 3.1% Gross margin up 28 bps NPAT up 3.0% EPS up 2.9% Interim dividend up 1 cps to 50 cps 3
Slide 4: 1. Performance - Summary
1. PERFORMANCE - SUMMARY For personal use only HY12 HY13 Mvt Total JB Hi-Fi Branded Store Sales $1.75b $1.81b +3.1% - comparable store sales n/a n/a -3.5% [ex Visual (TV) -0.6%] Total Sales $1.77b $1.82b +2.3% Gross Margin 21.2% 21.5% +28 bps Cost of Doing Business 13.6% 13.8% +25 bp
Slide 5: 2. Profit and Loss Statement
2. PROFIT AND LOSS STATEMENT For personal use only 1 AUST NZ (NZD) CONSOLIDATED $m HY12 HY13 Growth HY12 HY13 Growth HY12 HY13 Growth Sales 1,677.3 1,724.0 2.8% 124.9 117.5 -6.0% 1,774.7 1,816.2 2.3% Gross Profit 360.7 375.1 4.0% 20.8 20.1 -3.6% 377.0 390.9 3.7% Gross Margin 21.51% 21 51% 21.76% 21
Slide 6: 3. Trading Performance - Sales
3. TRADING PERFORMANCE For personal use only Sales – Total JB Hi-Fi branded store growth of 3.1% Sales Growth Australia: HY13 Total Comps. JB Hi-Fi branded store sales grew by 3.6% to $1.71b. JB Hi-Fi Brand Customer transactions for comparable stores have shown a positive trend - Australia 3.6%
Slide 7: 3. Trading Performance - New Zealand Sales
3. TRADING PERFORMANCE… For personal use only Sales (cont.) New Zealand: Sales Growth HY13 Sales declined by 6.0% to NZ$117.5m. Total Comps. Comparable store sales were negative 5.6%. JB Hi-Fi Brand - Australia 3.6% (3.4%) Sales were impacted by cycling the Rugby World Cup in HY12. - New Zeala
Slide 8: 3. Trading Performance - Gross Margin
3. TRADING PERFORMANCE… For personal use only Gross Margin – Market competitive but a solid result Consolidated gross margin was 21.5%, a 28 bps increase on the pcp. GROSS MARGIN HY12 HY13 In Australia, the gross margin in HY13 increased by 25 bps to 21.8%, Australia 21.5% 21.8% driven in part b
Slide 9: 3. Trading Performance - Cost of Doing Business
3. TRADING PERFORMANCE… For personal use only Cost of Doing Business (CODB) – Maintaining customer service Consolidated CODB was 13.8% (Aust: 13.8%, NZ: 13.9%). CODB We continue to drive productivity improvements whilst HY12 HY13 Australia 13.6% 13.8% maintaining a high level of customer service
Slide 10: 3. Trading Performance - Earnings
3. TRADING PERFORMANCE… For personal use only Earnings – Competitive trading environment In Australia, EBIT was up 2.2% to $121.6m driven by improved EBIT MARGIN gross margins over the pcp. HY12 HY13 Australia ($m) 119.0 121.6 In New Zealand, EBIT was up 17.2% to NZ$2.6m driven by - margin (%) 7
Slide 11: 3. Trading Performance - Out of Store
3. TRADING PERFORMANCE… For personal use only Out of Store Our multi channel strategy continues to develop and has delivered some good results in HY13. Strategy is to give customers a choice on how they wish to shop with JB Hi-Fi. O li Online Online sales grew 40.3% on the pcp to $37.2m or 2
Slide 12: 4. JB HI-FI HOME Trial
4. JB HI-FI HOME TRIAL For personal use only JB HI-FI HOME trial – Leveraging the power of the brand! On 28 November 2012, we announced the trial of the JB HI-FI HOME concept, with our four existing co-located JB Hi-Fi and Clive Anthonys stores merging under the one new brand, JB HI-FI HOME. Ear
Slide 13: 5. Outlook
5. OUTLOOK For personal use only Trading Outlook: 2HY13 sales update: - total consolidated sales growth for the JB Hi-Fi branded stores in January 2013 was 11.7%; and - consolidated comparable store sales growth for the JB Hi-Fi branded stores in January 2013 was 4.2%. Gross margin in January 20
Slide 14: 6. Cash Flow and Balance Sheet
6. CASH FLOW AND BALANCE SHEET For personal use only Cash Flow Statement Working Capital AUDm HY12 HY13 Statutory Statutory Normalised EBITDA 136.1 139.8 AUDm HY12 HY13 HY13 Change in Working Capital 107.5 (9.2) (Increase)/decrease in current assets Inventory (9.2) (101.1) (101.1) Net Interest Paid
Slide 15: 6. Working Capital & Performance Indicators
6. CASH FLOW AND BALANCE SHEET… For personal use only Working Capital & Performance Indicators Working capital was impacted by: - higher average inventory per store; Inventory 550 - timing relating to creditor payments; and - mix of supplier rebates at the end of the period. 53.6 500 Inventory M
Slide 16: 6. Balance Sheet
6. CASH FLOW AND BALANCE SHEET… For personal use only Balance Sheet AUDm HY12 HY13 FY12 Cash 58.7 54.3 39.7 Receivables 125.7 113.6 58.4 Inventories 415.7 529.8 428.3 Other 8.0 6.8 7.7 Total Current Assets 608.2 704.4 534.1 Fixed Assets 183.2 188.1 182.0 Intangibles & Goodwill 78.5 79.0 78.8 Other 1
Slide 17: 7. Dividends
7. DIVIDENDS For personal use only Dividends The interim dividend is 50.0 cents per share fully franked, up 1.0 cps from the pcp. This represents a payout ratio of 60% of HY13 earnings which is in line with the our dividend policy. The Board is confident that the group’s strong cash flow generat
Slide 18: 8. Store Update
8. STORE UPDATE For personal use only 11 JB Hi-Fi stores opened in HY13 15 JB Hi-Fi stores are to be opened in FY13 including: NSW: Port Macquarie#, Coffs Harbour#, Tamworth#, Broadway#, Chatswood Chase#, North Sydney# VIC: Fountain Gate#, The Glen#, Barkley Square QLD: Bundaberg#, Oxley# FY
Slide 19: 9. Investment Checklist
9. INVESTMENT CHECKLIST For personal use only Unique and relevant brand (a consumer destination). Low cost of doing business (scale advantages). Flexible business model – history of category growth and development. Diversity of product categories. New store, online and digital opportunitie
Slide 20: Appendix I - Store movements and geographic breakdown
Appendix I For personal use only Store movements during HY13 Geographic breakdown# HY13 FY12 Opened Rebrand Closed Total Australia JB HI-FI - Tier 1 135 7 (4) - 138 JB HI-FI - Tier 2 18 4 - (3) 19 JB HI-FI HOME - - 4 - 4 153 11 - (3) 161 Clive Anthonys 2 - - 2 155 11 - (3) 163 2 New Zealand JB - Tie
Slide 21: Appendix II - EBIT and CODB reconciliations
Appendix II For personal use only a) EBIT reconciliation b) NZ Profit and Loss statement (AUD) AUDm HY12 HY13 AUDm HY12 HY13 Profit for the year (App 4D) 79.6 82.1 97.4 Sales 92.2 add back Gross Profit 16.2 15.8 - income tax expense (App 4D) 34.2 36.4 Gross Margin 16.7% 17.1% Profit before Tax 113 8
Slide 22: Appendix III - Half Year Profit and Loss Statements (5 years)
Appendix III For personal use only Half Year Profit and Loss Statements (5 years) AUDm HY09 HY10 HY11 HY12 HY13 Sales 1,261.6 1,553.8 1,682.6 1,774.7 1,816.2 Gross Profit 269 5 269.5 327 8 327.8 362 5 362.5 377 0 377.0 390 9 390.9 Gross Margin 21.4% 21.1% 21.5% 21.2% 21.5% EBITDA 97.9 122.6 140.3 13
Slide 23: Appendix III - Half Year Balance Sheets (5 years)
Appendix III… For personal use only Half Year Balance Sheets (5 years) AUDm HY09 HY10 HY11 HY12 HY13 Cash 90.8 127.4 180.0 58.7 54.3 Receivables 97.3 113.4 130.3 125.7 113.6 Inventories 300.3 373.3 388.1 415.7 529.8 Other 4.6 6.4 5.1 8.0 6.8 Total Current Assets 493.0 620.4 703.4 608.2 704.4 Fixed A
Slide 24: Appendix III - Half Year Cash Flow Statement (5 years)
Appendix III… For personal use only Half Year Cash Flow Statement (5 years) AUDm HY09 HY10 HY11 HY12 HY13 EBITDA 97.9 122.6 140.3 136.1 139.8 Change in Working Capital 108.5 73.6 97.7 107.5 (9.2) N t IInterest Net t t Paid P id (4 4) (4.4) (2 7) (2.7) (2 1) (2.1) (7 2) (7.2) (4 9) (4.9) Income Tax P