Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — H1 FY2004 Earnings Presentation
14 slides from Jb Hi-fi's earnings presentation, Dec 31, 2003
Slide 1: Half Year Results Presentation 31 December 2003
JB A-GFE JB Hi-Fi Limited Half Year Results Presentation 31 December 2003
Slide 2: Agenda
AGENDA >» Highlights - 6 months 31 December 2003 > 2004 Focus Chief Executive Officer Chief Financial Officer Richard Uechtritz Richard Murray
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS > Sound six months performance to 31 December, 2003 * Growth against previous corresponding period strong: - Sales 26.3% » - Comparable store sales growth 8A% a - Gross Margin (+0.8 to 23.3%) 3.6% » - NPAT 49.2% n >» Fully franked interim dividend of 3.6 cents per share declared
Slide 4: Trading Overview
Pr HEF TRADING OVERVIEW >» Continued strong growth in emerging categories of Digital Camera’s, Flat Panel TV’s and DVD software Music showed good growth in both CD’s (comp store 3.6%) and Music DVD’s Store rollout ahead of plan with 5 stores opened to Feb 2004 and further 2 to 3 stores likely in sec
Slide 5: Profit and Loss
PROFIT AND LOSS Sales Comparative Store Sales Growth Gross Profit Gross Margin EBITDA Depreciation & Amortisation EBIT EBIT Margin Net Profit After Tax Headline Statistics: Earnings per Share (cents) Stores at period end Opex as a % of sales * Applying same number of shares as current year (102,120,
Slide 6: Cash Flow
CASH FLOW Six Months Six Months 31 Dec 2003 31 Dec 2002 $m $m EBNDA 159 11.6 Movement in Working Capital 86 21.2 Net Borrowing Costs (1.2) (1.6) Income Tax Paid (3.0) (2.7) Net Cash flow from Operating Activities 20.3 28.5 Purchase of Fixtures, Fittings & Equipment (5.0) (3.1) less Finance Lease fun
Slide 7: Working Capital
WORKING CAPITAL Six Months Six Months 31 Dec 2003 31 Dec 2002 $m $m Movement in Working Capital (Increase)/Decrease in assets Current receivables (5.8) (4.2) Current inventories (27.3) (10.3) Other current assets (0.2) (0.8) Increase/(Decrease) in liabilities Current trade creditors and accruals 42.
Slide 8: Capex
Pr HEF CAPEX > Capex is slightly higher than forecast. > New store capex estimates of $0.7 million per new store still appropriate > Full year capex is likely to be in the range $2.7 to $4.8 million more than forecast, based on: * Expanded store rollout program * — Acquisition of DVD security produc
Slide 9: Balance Sheet
Cash Receivables Inventories Other Total Current Assets Fixed Assets Intangibles Other Total Non-Current Assets TOTAL ASSETS Payables Interest Bearing Liabilities Provisions Total Current Liabilities Interest Bearing Liabilities Provisions Total Non-Current Liabilities TOTAL LIABILITIES NET ASSETS B
Slide 10: Balance Sheet - cont'd
Po HEF Balance Sheet — cont’d > Assets * Inventory has increased as a result of - New stores coming on line - Existing stores increased product range as a result of growth in DVD music software, expanded product offering in both Digital Camera and LCD/Plasma televisions - Stock Turnover for the peri
Slide 11: New Stores
NEW STORES » Stores opened this financial year 1. Cannington Perth 2. Osborne Park Perth 3. Kawana Waters Qld Sunshine Coast 4. Marion Adelaide 5. Erina NSW Central Coast » New stores outlook Bondi Junction Sydney Fountain Gate Melbourne Modbury Adelaide O'Connor Perth plus several others under nego
Slide 12: 2004 Focus
2004 FOCUS Growing and emerging products * slimline widescreen digital televisions i.e. plasma / LCD * Digital cameras * Recordable DVD players * DVD software Store layout and presentation Hiring of key people to manage the company’s continued strong growth New store rollout * Seven to eight new sto
Slide 13: Investment Scorecard
INVESTMENT SCORECARD Growth factors + Continued focused exposure to high growth home entertainment product market + Recently opened stores continue to mature strongly + New store roll-out ahead of plan Profitability underpinned by * Opex 16.5% of sales + High stock turns at 5.8 times + Low capital i
Slide 14: Disclosure
Disclosure As highlighted in slide 4, for the comparability with the prospectus and generally accepted market convention, the Company considers interest income and borrowing costs on a net basis. As a result in the 6 months to December 2003 interest income of $0.2 million (Dec 2002 Nil) was earned a