Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — FY2022 Earnings Presentation
44 slides from Jb Hi-fi's earnings presentation, Aug 15, 2022
Slide 1: FY22 Results Presentation
rsonal use only JB Hi-Fi Limited FY22 Results Presentation JB HI-FI LIMITED
Slide 2: Agenda
Agenda 1. Group Overview rsonal use only 2. JB HI-FI Australia 3. JB HI-FI New Zealand 4. The Good Guys 5. Group Balance Sheet and Cash Flow 6. Group FY23 Trading Update 7. Group Focus Areas 8. Investment Checklist Terry Smart Nick Wells Group CEO Group CFO JB HI-FI LIMITED PAGE 2
Slide 3: Group Overview
rsonal use only 1. Group Overview
Slide 4: Group Model
Group Model Two iconic Australian retail brands rsonal use only Purpose Help people with better ways to live, Help families live better for less learn, work, and play Leading retailer of technology and Leading retailer of home appliances Product offering consumer electronics and consumer electronics
Slide 5: Group Model: Key Competitive Advantages
Group Model Underpinned by 4 key competitive advantages 1 2 3 4 People and Culture rsonal use only Scale Low Cost Operating Model Multichannel Capability ▪ #1 player in Australian Consumer ▪ Constant focus on productivity and ▪ Focus on providing the customer with an ▪ Knowledgeable and passionate E
Slide 6: Generating sustainable long-term growth
Generating sustainable long-term growth The Group today released its FY22 Sustainability Report outlining our commitment to having a positive impact on our people, our community and our environment rsonal use only Sustainability Policy focus areas FY22 Achievements ▪ Continued to action a set of Div
Slide 7: Group FY22 Performance
Group FY22 Performance FY22 Group Performance rsonal use only AUD FY22 FY21 Growth Total sales ($m) 9,232.0 8,916.1 315.9 3.5% ▲ Earnings before interest and tax ($m) 794.6 743.1 51.6 6.9% ▲ Net profit after tax ($m) 544.9 506.1 38.8 7.7% ▲ Earnings per share (basic ¢) 479.5 440.8 +39 cps 8.8% ▲ Div
Slide 8: FY22 Divisional Sales Performance
Group FY22 Performance FY22 Divisional Sales Performance rsonal use only FY22 FY21 Growth $m % Sales ($m) - JB HI-FI Australia 6,196.5 5,956.8 239.7 4.0% ▲ - JB HI-FI New Zealand (NZD) 262.4 261.6 0.8 0.3% ▲ - The Good Guys 2,789.4 2,715.7 73.7 2.7% ▲ Total Sales (AUDm) 9,232.0 8,916.1 315.9 3.5% ▲
Slide 9: FY22 Divisional Earnings Performance
Group FY22 Performance FY22 Divisional Earnings Performance rsonal use only FY22 FY21 Growth $m % EBIT ($m) - JB HI-FI Australia 544.9 523.0 21.9 4.2% ▲ - JB HI-FI New Zealand (NZD) 8.8 5.8 3.0 51.7% ▲ - The Good Guys 241.4 214.7 26.8 12.5% ▲ Total EBIT (AUDm) 794.6 743.1 51.6 6.9% ▲ EBIT Margin (%)
Slide 10: JB HI-FI Australia
rsonal use only 2. JB HI-FI Australia
Slide 11: JB HI-FI Australia FY22 Performance
JB HI-FI Australia FY22 Performance rsonal use only AUD FY22 FY21 Growth Sales ($m) 6,196.5 5,956.8 4.0% ▲ Gross Profit ($m) 1,387.7 1,325.2 4.7% ▲ Gross Margin (%) 22.40% 22.25% +15 bps ▲ Cost of Doing Business (%) 11.40% 11.19% +21 bps ▲ EBITDA ($m) 681.4 658.5 3.5% ▲ EBITDA Margin (%) 11.00% 11.0
Slide 12: JB HI-FI Australia FY22 Sales
JB HI-FI Australia FY22 Performance FY22 Sales rsonal use only TOTAL SALES GROWTH ▪ Total sales increased by 4.0% to $6.20 billion, with comparable sales up 3.4%. Sales momentum was strong through the year, particularly in the second half with sales up 11.7%, driven by continued heightened customer
Slide 13: JB HI-FI Australia FY22 Earnings
JB HI-FI Australia FY22 Performance FY22 Earnings EBIT $ rsonal use only ▪ FY22 gross profit increased by 4.7% to $1.39 billion with gross margin up 15 bps to 22.4%, driven by strong improvements in key categories, particularly in the second half ▪ CODB was 11.4%, up 21 bps. CODB in absolute terms g
Slide 14: JB HI-FI New Zealand
rsonal use only 3. JB HI-FI New Zealand
Slide 15: JB HI-FI New Zealand FY22 Performance
JB HI-FI New Zealand FY22 Performance rsonal use only NZD FY22 FY21 Growth Sales ($m) 262.4 261.6 0.3% ▲ Gross Profit ($m) 45.7 46.6 (2.1%) ▼ Gross Margin (%) 17.40% 17.83% (43 bps) ▼ Cost of Doing Business (%) 12.75% 13.12% (36 bps) ▼ EBITDA ($m) 12.2 12.3 (0.9%) ▼ EBITDA Margin (%) 4.64% 4.70% (6
Slide 16: JB HI-FI New Zealand FY22 Sales
JB HI-FI New Zealand FY22 Performance FY22 Sales rsonal use only TOTAL SALES GROWTH ▪ Total sales increased by 0.3% to NZD262.4 million, with comparable sales up 0.3%. Second half sales were up 6.3% ▪ Hardware and Services1 sales were down 0.1%, with comparable sales down 0.1%. The key growth catego
Slide 17: JB HI-FI New Zealand FY22 Earnings
JB HI-FI New Zealand FY22 Performance FY22 Earnings rsonal use only ▪ Gross margin down 43 bps to 17.4% UNDERLYING EBIT NZD ▪ CODB was 12.8%, down 36 bps, and in absolute terms declined by 2.5% as store wages remained well controlled ▪ EBITDA was NZD12.2 million, down 0.9% $6.0m ▪ EBIT was up 51.7%
Slide 18: The Good Guys
rsonal use only 4. The Good Guys
Slide 19: The Good Guys FY22 Performance
The Good Guys FY22 Performance rsonal use only AUD FY22 FY21 Growth Sales ($m) 2,789.4 2,715.7 2.7% ▲ Gross Profit ($m) 649.9 608.6 6.8% ▲ Gross Margin (%) 23.30% 22.41% +89 bps ▲ Cost of Doing Business (%) 11.79% 11.67% +12 bps ▲ EBITDA ($m) 321.1 291.7 10.1% ▲ EBITDA Margin (%) 11.51% 10.74% +77 b
Slide 20: The Good Guys FY22 Sales
The Good Guys FY22 Performance FY22 Sales TOTAL SALES GROWTH rsonal use only ▪ Total sales increased by 2.7% to $2.79 billion, with comparable sales up 2.2%. Sales momentum was strong through the year, 7.8% particularly in the second half with sales up 6.7%, driven by continued heightened customer d
Slide 21: The Good Guys FY22 Earnings
The Good Guys FY22 Performance FY22 Earnings rsonal use only EBIT $ ▪ Gross profit was $649.9 million with gross margin up 89 bps to 23.3%, driven by strong improvements in key categories, particularly in the second half ▪ CODB was 11.8%, up 12 bps, and in absolute terms grew 3.8% as store wages rem
Slide 22: Group Balance Sheet and Cash Flow
rsonal use only 5. Group Balance Sheet And Cash Flow
Slide 23: Group Balance Sheet
Group Balance Sheet and Cash Flow Group Balance Sheet rsonal use only AUDm FY22 FY21 ▪ Inventory at June finished at $1.14 billion, up 20.9% or $196.5 million year on year, as inventory availability continued to improve Cash 125.6 263.2 from the low closing inventory positions in FY21 and FY20 that
Slide 24: Group Cash Flow Statement and Performance Indicators
Group Balance Sheet and Cash Flow Group Cash Flow Statement Group Performance Indicators rsonal use only AUDm FY22 FY21 FY22 FY21 EBITDA 1,013.9 961.6 Fixed Charge Ratio 3 4.8x 4.6x Change in Working Capital (119.4) (241.0) Interest Cover 3 602.1x 228.4x Net Interest Paid on Borrowings (0.6) (1.7) G
Slide 25: Capital Management
Group Balance Sheet and Cash Flow TOTAL DIVIDEND UP 10.1% TO 316 CPS Capital Management rsonal use only ▪ The final dividend is 153 cents per share (cps) fully franked, up 46 cps or 43.0%, bringing the total dividend for FY22 to 316 cps, up 29 cps or 10.1%, and representing 65% of NPAT ▪ The record
Slide 26: Group FY23 Trading Update
rsonal use only 6. Group FY23 Trading Update
Slide 27: July 2022 sales update
Group FY23 Trading Update July 2022 sales update rsonal use only ▪ The Group provides the following sales update for the period 1 July 2022 to 31 July 2022 ▪ Total sales growth for JB HI-FI Australia was 9.7% (July 2021: -12.4%) with comparable sales growth of 9.2% (July 2021: -12.6%) ▪ Total sales
Slide 28: Group Focus Areas
rsonal use only 7. Group Focus Areas
Slide 29: Focus Areas: Multichannel
Group Focus Areas 1. Multichannel rsonal use only Catering for our customers’ differing shopping journeys ▪ Continue to focus on the in-store experience and engagement ▪ Constant category and store layout evolution Stores ▪ Continued data driven evaluation of new store opportunities, including addit
Slide 30: Multichannel - continued
Group Focus Areas 1. Multichannel - continued rsonal use only Continue to leverage our strong brand awareness Leverage ▪ Significant web traffic, with 5.8 million1 average total weekly sessions across the Group and www.jbhifi.com.au being the website 7th most visited retail website in Australia2 vis
Slide 31: Focus Areas: Supply Chain
Group Focus Areas 2. Supply Chain rsonal use only Continued investment in a fit for purpose Group Supply Chain that supports our customers’ needs ▪ Launch of improved delivery options for The Good Guys customers focusing on increased certainty, transparency and choice ▪ Fast and Launch of on-demand
Slide 32: Focus Areas: Commercial
Group Focus Areas 3. Commercial rsonal use only Setting our Commercial Businesses for the next phase of growth ▪ Repositioning from previous “JB HI-FI Solutions” branding to 3 new brands to align to our key market Evolving segments the Brand ▪ JB HI-FI Business ▪ JB HI-FI Education ▪ The Good Guys C
Slide 33: Focus Areas: New Zealand
Group Focus Areas 4. New Zealand rsonal use only Strategic review completed with opportunity to grow and expand the business ▪ Tim Edwards has joined as Managing Director of JB HI-FI New Zealand Executive ▪ Tim has previously worked at the Warehouse Group for more than a decade, including seven year
Slide 34: Focus Areas: Retail execution
Group Focus Areas 5. Retail execution rsonal use only Continuing to leverage our core customer proposition of great value and experience ▪ Strong brand loyalty to continue to drive awareness and traffic to the brands ▪ Leverage our low price and discount heritage Delivering ▪ Utilise our scale and s
Slide 35: Investment Checklist
rsonal use only 8. Investment Checklist
Slide 36: Investment Checklist
Investment Checklist rsonal use only Unique team culture and unrivalled Unique and relevant brands customer service Flexible business model – history of Multichannel capability built around high quality store category growth and development portfolio Diverse and resilient product categories
Slide 37: Appendices
ppendices <x Ajuo asn jeuosia
Slide 38: Appendix I: Group Profit and Loss
Appendix I a) Group Profit and Loss rsonal use only AUDm FY22 FY21 FY20 FY19 FY18 (Pre AASB16) (Pre AASB16) Sales 9,232.0 8,916.1 7,918.9 7,095.3 6,854.3 Gross Profit 2,080.4 1,977.2 1,694.1 1,527.1 1,470.3 Gross Margin 22.53% 22.18% 21.39% 21.52% 21.45% EBITDA 1,013.9 961.6 718.0 429.1 411.7 Deprec
Slide 39: Appendix I: Group CODB reconciliation
Appendix I b) Group CODB reconciliation rsonal use only AUDm FY22 FY21 Other income (ex interest revenue) (2.2) (1.3) Sales and marketing expenses 881.1 845.8 Occupancy expenses 302.8 293.6 less depreciation, amortisation & impairment (210.1) (207.6) Administration expenses 41.8 41.3 less depreciati
Slide 40: Appendix I: Group Balance Sheet
Appendix I c) 5 year Group Balance Sheet rsonal use only AUDm FY22 FY21 FY20 FY19 FY18 (Pre AASB16) (Pre AASB16) Cash 125.6 263.2 251.5 119.2 72.0 Receivables 132.6 102.8 220.3 254.4 204.7 Inventories 1,135.3 938.8 739.3 886.7 891.1 Other 31.2 35.7 34.7 34.6 42.7 Total Current Assets 1,424.7 1,340.5
Slide 41: Appendix I: Group Cash Flow
Appendix I d) 5 year Group Cash Flow rsonal use only AUDm FY22 FY21 FY20 FY19 FY18 (Pre AASB16) (Pre AASB16) EBITDA 1,013.9 961.6 718.0 429.1 411.7 Change in Working Capital (119.4) (241.0) 402.1 (16.9) (6.6) Net Interest Paid on Borrowings (0.6) (1.7) (10.4) (13.1) (14.5) Interest on lease liabilit
Slide 42: Appendix II: Group Profit and Loss – Breakdown
Appendix II Group Profit and Loss – Breakdown rsonal use only FY22 FY21 Growth JB HI-FI JB HI-FI JB HI-FI JB HI-FI vs FY21 TGG Group TGG Group AUDm AUST NZ (NZD) AUST NZ (NZD) Sales 6,196.5 262.4 2,789.4 9,232.0 5,956.8 261.6 2,715.7 8,916.1 3.5% ▲ Gross Profit 1,387.7 45.7 649.9 2,080.4 1,325.2 46.
Slide 43: Appendix III: Stores across Australia and New Zealand
Appendix III 319 stores across Australia and New Zealand1 Group store reconciliation rsonal use only FY22 FY21 Opened Converted Closed Total 1 Australia 2 JB HI-FI 137 2 - - 139 23 JB HI-FI HOME 60 - - - 60 14 39 197 2 - - 199 23 New Zealand 5 JB HI-FI 14 - - - 14 11 30 JB HI-FI HOME - - - - - 14 -
Slide 44: Important Notice and Disclaimer
Important Notice and Disclaimer The material in this presentation is general background information about JB Hi-Fi Limited (ACN 093 220 136) (JB Hi-Fi) and its rsonal use only activities current as at the date of the presentation, 15th August 2022. It is information given in summary form and does no