Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — H1 FY2014 Earnings Presentation
20 slides from Jb Hi-fi's earnings presentation, Feb 3, 2014
Slide 1: JB Hi-Fi Limited Half Year Results Presentation
For personal use only JB Hi-Fi Limited Half Year Results Presentation 31 December 2013 3 February 2014
Slide 2: Agenda
AG E N DA For personal use only 1. Performance 2. Profit and Loss Statement 3. Trading Performance 4. HY14 Store Update 5. HOME 6. Out of Store 7. Cash Flow and Balance Sheet 8. Dividends 9. Trading Outlook 10. Growth Opportunities Terry Smart Richard Murray CEO CFO
Slide 3: Performance – HY14 Highlights
1. P E R F O R M A NC E – H Y 1 4 HI G HL I G HTS For personal use only Total sales up 6.8% Comparable sales up 2.8% Gross margin up 11 bps NPAT up 10.0% EPS up 9.0% Interim dividend up 10.0% to 55.0 cps 3
Slide 4: Performance – Summary
1. P E R F O R M A NC E - S UM M A RY For personal use only HY13 HY14 Mvt Total Sales $1.82b $1.94b +6.8% Gross Margin 21.52% 21.63% +11 bps Cost of Doing Business 13.82% 13.88% +6 bps EBIT $123.7m $132.9m +7.5% EBIT Margin 6.81% 6.85% +4 bps 1 NPAT $82.1m $90.3m +10.0% Ear
Slide 5: Profit and Loss Statement
2 . P R OF I T A N D L OS S S TAT E ME N T For personal use only 1 AUST NZ (NZD) CONSOLIDATED $m HY13 HY14 Growth HY13 HY14 Growth HY13 HY14 Growth Sales 1,724.0 1,836.0 6.5% 117.5 118.0 0.5% 1,816.2 1,939.9 6.8% Gross Profit 375.1 401.3 7.0% 20.1 20.7 3.3% 390.9 419.6 7.3% Gross Margin 21.76% 21.86
Slide 6: Trading Performance – Sales
3. T R A DI NG P E R F O R M A NC E For personal use only Sales Total consolidated sales grew by 6.8% to $1.94b, with comparable Sales Growth sales up 2.8%. HY14 Total Comps. Australia Australia 6.5% 2.3% Total sales grew by 6.5% to $1.84b, with comparable sales up New Zealand (NZD) 0.5% 0.3% 2.3%
Slide 7: Trading Performance – Gross Margin
3. T R A DI NG P E R F O R M A NC E . . . For personal use only Gross Margin Consolidated gross margin was 21.6%, an 11 bps increase on Gross Margin the pcp. HY13 HY14 Australia 21.8% 21.9% In Australia, the gross margin increased by 10 bps on the pcp New Zealand 17.1% 17.6% to 21.9%. Total 21.5
Slide 8: Trading Performance – Cost of Doing Business
3. T R A DI NG P E R F O R M A NC E . . . For personal use only Cost of Doing Business (CODB) CODB Consolidated CODB was 13.9%, up 6 bps over the pcp. HY13 HY14 In Australia, CODB increased by 4 bps to 13.9%. Australia 13.8% 13.9% New Zealand 13.9% 14.3% Operating costs were in line with Compa
Slide 9: Trading Performance – Earnings
3. T R A DI NG P E R F O R M A NC E . . . For personal use only Earnings Consolidated EBIT was up 7.5% to $132.9m and margin was up 4 EBIT MARGIN bps on the pcp at 6.8%. HY13 HY14 Australia 7.1% 7.1% In Australia, EBIT was up 7.3% to $130.5m and margin was up 5 New Zealand 2.2% 2.3% bps on the p
Slide 10: HY14 Store Update
4 . H Y 1 4 S T O R E U P DAT E For personal use only Six new stores opened in HY14 Six new stores opened in HY14 (five JB HI-FI and one JB HI-FI HOME): NSW: Roselands, Castle Towers, Homebush (HOME) VIC: Melton, Craigieburn HY14 TAS: Rosny Park 182 stores 177 Seven JB HI-FI stores in Aust
Slide 11: HOME – Growth Driver
5. H OME For personal use only HOME – Growth Driver! The home appliance category is a circa $4.6 billion market! Results to date support annualised incremental sales per store of circa $3m in Year 1, increasing to circa $5m in Year 2, with the longer term sales opportunity still to be fully quan
Slide 12: Out of Store
6 . O u t of s t o r e For personal use only Online We continue to leverage the benefits of a strong online presence combined with our bricks and mortar locations. In HY14, online sales grew 15.4% on the pcp to $42.9m or 2.2% of sales (HY13: 2.0%). Unique visitations grew 17.8% over the pcp to
Slide 13: Cash Flow and Balance Sheet
7. C A S H F L O W A N D B A L A NC E S H E ET For personal use only Cash Flow Statement Working Capital AUDm HY13 HY14 AUDm HY13 HY14 EBITDA 139.8 150.3 (Increase)/decrease in current assets Change in Working Capital (9.2) (45.8) Inventory (101.1) (159.0) Net Interest Paid (4.9) (3.7) Receivables (
Slide 14: Cash Flow and Balance Sheet – Inventory
7. C A S H F L O W A N D B A L A NC E S H E ET. . . For personal use only Inventory Inventory (HY13 to HY14) Inventory levels are in line with internal expectations; 600 10.0 (3.3) Inventory turnover in HY14 was consistent with the pcp at 5.9x (pcp: 5.9x) and like for like inventory 32.1 turnove
Slide 15: Dividends
8 . DI V I D E N DS For personal use only Dividends The interim dividend is 55.0 cents per share fully franked, up 10.0% or 5.0 cents per share from the pcp. Maintenance of our current circa 60% payout ratio enables the Company to continue to grow through its investment in both its store rollout
Slide 16: Trading Outlook
9. T R A DI NG O U T L O OK For personal use only Trading Outlook 2HY14 sales update: - total consolidated sales growth in January 2014 was +7.4%; and - consolidated comparable sales growth in January 2014 was +3.8%. Eight new stores are expected to open in FY141, bringing the total number of st
Slide 17: Growth Opportunities
1 0. G R O W T H OP P O RT UN I T I E S For personal use only Growth Opportunities – Solid pipeline of properties (2 new stores expected to open in 2HY14). New stores – Will continue our disciplined approach to selecting new stores based on high foot traffic locations. – Target of 214 stores acros
Slide 18: Appendix I – Store movements and geographic breakdown
Ap p e n dix I For personal use only Store movements during HY14 Geographic breakdown# HY14 FY13 Opened Rebrand Closed Total Australia JB HI-FI - Tier 1 135 4 (7) - 132 JB HI-FI - Tier 2 20 1 - - 21 JB HI-FI HOME 8 1 7 - 16 163 6 - - 169 Clive Anthonys 1 - - (1) - 164 6 - (1) 169 New Zealand 2 JB HI
Slide 19: Appendix II – EBIT and CODB reconciliations
Ap p e n dix I I For personal use only a) EBIT reconciliation b) NZ Profit and Loss statement (AUD) AUDm HY13 HY14 AUDm HY13 HY14 Profit for the half-year (App 4D) 82.1 90.4 Sales 92.2 103.9 add back Gross Profit 15.8 18.3 - income tax expense (App 4D) 36.4 38.6 Gross Margin 17.1% 17.6% Profit befor
Slide 20: Appendix III – Balance Sheet
Ap p e n dix I I I For personal use only Balance Sheet AUDm HY13 HY14 FY13 Cash 54.3 44.9 67.4 Receivables 113.6 127.6 64.2 Inventories 529.8 588.1 426.0 Other 6.8 4.7 6.0 Total Current Assets 704.4 765.4 563.7 Fixed Assets 188.1 185.4 181.1 Intangibles & Goodwill 79.0 85.1 83.7 Other 17.4 17.0 14.8