Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — H1 FY2009 Earnings Presentation
17 slides from Jb Hi-fi's earnings presentation, Feb 10, 2009
Slide 1: Half Year Results Presentation – December 2008
For personal use only JB Hi-Fi Limited Half Year Results Presentation – December 2008 10 February 2009
Slide 2: Agenda
Agenda For personal use only 1. Performance 2. Historical Performance 3. Trading Update 4. Financial Detail 5. Dividends 6. Debt 7. Store Update 8. Investment Checklist Richard Uechtritz Richard Murray CEO CFO 2
Slide 3: Performance: Strong performance for 6 months to 31 December 2008
1. PERFORMANCE Strong performance for 6 months to 31 December 2008 For personal use only HY09 HY08 q Sales $1.26b $988.5m 27.6% Û q Comparable store sales growth 11.1% 18.8% Û q Gross Margin 21.4% 21.6% -22 bps Û q Cost of Doing Business 13.4% 14.3% -92 bps q EBIT Margin 7.3% 6.6% +69 bps Û q NPAT $
Slide 4: Historical Performance: Strong growth in sales & earnings since MBI in July 2000
2. HISTORICAL PERFORMANCE Strong growth in sales & earnings since MBI in July 2000 For personal use only SALES +28% EBIT +41% NPAT +41% ~ 2.35b 65.1m 102.3m FULL YEAR GUIDANCE +61% +56% 59.0m 91.5m +41% 1.83b +41% +43% 65.5m 40.4m 1,282m 1.26b +47% +57% +36% HALF YEAR HALF YEAR +28% 946m 44.5m 25.8m
Slide 5: Trading Update: Trading Performance
3. TRADING UPDATE For personal use only Trading Performance § Strong result – the company has traded well through what is considered to be the weakest economic climate for many years. § Consolidated comparable store sales growth for HY09 was 11.1%. § Reinforces the strength and resilience of our uni
Slide 6: Trading Update: Financial Metrics
3. TRADING UPDATE …. For personal use only Financial Metrics § Gross margin at 21.4% (pcp: 21.6%) was pleasing given the tough competitive environment, the growth of lower margin product categories of games and computers, the continued roll-out of JB Hi-Fi New Zealand and our investment in everyday
Slide 7: Trading Update: New Stores
3. TRADING UPDATE …. For personal use only New Stores § Opened 11 new JB Hi-Fi stores (Aust: 9, NZ: 2) and 3 Clive Anthonys stores during HY09. § 2 stores were relocated in Australia. § Planning to open circa 7 stores across Australia and New Zealand in 2nd half FY09. § 3 stores originally planned t
Slide 8: Trading Update: Trading Outlook
3. TRADING UPDATE …. For personal use only Trading Outlook § “Cautiously confident” of a solid 2nd half FY09 and another strong year. § Games, Computers/IT, DVD and Telco should continue to drive comparable store sales. § Confident of continued solid growth in most categories and market share gains
Slide 9: Financial Detail: Profit and Loss Statement
4. FINANCIAL DETAIL Profit and Loss Statement For personal use only AUST NZ CONSOLIDATED $AUDm HY09 HY08 Growth HY09 HY09 HY08 Growth Sales 1,194.5 940.7 27.0% 67.0 1,261.6 988.5 27.6% Gross Profit 258.1 205.2 25.8% 11.3 269.5 213.3 26.3% Gross Margin 21.6% 21.8% -20 bps 16.9% 21.4% 21.6% -22 bps EB
Slide 10: Financial Detail: Balance Sheet
4. FINANCIAL DETAIL…. Balance Sheet For personal use only $m HY09 HY08 Movement FY08 Cash 90.8 46.4 44.4 (1.5) Receivables 97.3 82.2 15.1 53.0 Inventories 300.3 272.5 27.8 271.9 Other Current Assets 4.6 4.4 0.2 5.3 Total Current Assets 493.0 405.5 87.5 328.7 Fixed Assets 131.4 105.1 26.3 112.9 Brand
Slide 11: Financial Detail: Cashflow Statement
4. FINANCIAL DETAIL…. Cashflow Statement For personal use only $m HY09 HY08 EBITDA 100.2 71.6 Change in Working Capital 108.5 26.4 Net Interest Paid (4.4) (3.7) Income Tax Paid (21.5) (14.0) Other non cash items 6.8 1.3 Net Cashflow from Operations 189.6 81.7 Purchases of P&E (29.1) (31.9) Investmen
Slide 12: Financial Detail: Working capital and key ratios
4. FINANCIAL DETAIL…. Working capital and key ratios: For personal use only § Working capital is an ongoing focus of management $m HY09 HY08 and is in-line with current expectations. (Increase)/decrease in current assets § Inventory Management: Inventory (28.4) (60.0) § Inventory management remains
Slide 13: Dividends
5. DIVIDENDS For personal use only § The half year dividend has been increased 50% to 15.0 cents per share fully franked. § The Board is targeting a full year payout ratio of circa 40%. § The board is confident that continuing strong cashflows from existing stores and overall market growth will supp
Slide 14: Debt
6. DEBT For personal use only § In December 2008 the company renewed its $145m of existing senior term debt facilities for another three years. § The company has a further working capital facility, which includes a base $63m facility and an additional seasonal facility of $25m available between Febr
Slide 15: Store Update: new stores opened in HY09
7. STORE UPDATE 14 new stores opened in HY09 For personal use only Ø 21 new stores to open in FY09 (14 opened in HY09) § 18 JB Hi-Fi stores: • WA: Malaga*, Cockburn*, Cannington*, Joondalup*, Perth City*, Claremont, Perth CBD, Rockingham • NSW: Tweed Heads*, Albury • QLD: Morayfield*, Cairns*, Rockh
Slide 16: Investment Checklist
8. INVESTMENT CHECKLIST For personal use only P Strong and unique retail model. P Operates mainly in high growth home entertainment and technology sector. P Low cost of doing business – best of listed retailers. P Many new store opportunities - JB circa 150 in Australia and New Zealand (101 end HY09
Slide 17: Appendix I: Store movements during HY09
APPENDIX I For personal use only Store movements during HY09 Geographic breakdown HY09 FY08 Opened Closed Total AUSTRALIA JB Hi-Fi 85 9 - 94 Clive Anthonys 8 3 - 11 93 12 - 105 1 NEW ZEALAND 24 JB Hi-Fi 5 2 - 7 Hill & Stewart 7 - - 7 11 12 2 - 14 6 105 14 - 119 27 5 Store Format: 30 Shopping centres