Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — 2018 Macquarie Australia Conference
14 slides from Jb Hi-fi's conference presentation, May 2, 2018
Slide 1: JB Hi-Fi Limited 2018 Macquarie Australia Conference
JB Hi-Fi Limited 2018 Macquarie Australia Conference 15 AUGUST 2 MAY 2018 2016 PAGE 1
Slide 2: Agenda
Agenda 1. Trading and FY18 Outlook 2. The Group Model 3. Achievements in the last 12 months 4. Key focus areas for the next 12 months 5. Investment checklist JB HI-FI LIMITED PAGE 2
Slide 3: Trading and FY18 Outlook: FY18 sales update
1. Trading and FY18 Outlook FY181 sales update: JB Hi-Fi ▪ Q3 FY18 total sales growth was 6.8% (Q3 FY17: 10.8%) with comparable sales growth of 4.0% (Q3 FY17: 8.2%) ▪ YTD FY18 total sales growth was 9.0% (YTD FY17: 11.0%) with comparable sales growth of 6.3% (YTD FY17: 7.9%) The Good Guys ▪ Q3 FY18
Slide 4: Trading and FY18 Outlook: FY18 Outlook
1. Trading and FY18 Outlook FY18 Outlook: ▪ The Company reaffirms its FY18 sales guidance with total Group sales to be circa $6.85 billion (JB HI-FI $4.75 billion and The Good Guys $2.1 billion) ▪ The JB Hi-Fi business continues to perform strongly and in line with expectations ▪ The Good Guys perfo
Slide 5: The Group Model: A dual branded retail combination
2. The Group Model A dual branded retail combination Leading retailer of technology and consumer Leading retailer of home appliances and consumer Product offering electronics electronics Target customer base / Strong position with young/tech savvy demographics Strong position with home-making demogr
Slide 6: The Group Model: Scale
2 The Group Model i. Scale 42,200 Consistent with international experience, consolidation and scale results in: ▪ Best in market buying terms ▪ Increased relevance to Suppliers at a global level ▪ Ability to invest in price and drive further consolidation in the market 26,800 ▪ Diversified category
Slide 7: The Group Model: Low cost operating model
2. The Group Model ii. Low cost operating model ▪ Lowest cost of doing business (~15.5%) of major Australian listed retailers and international consumer electronics retailers ▪ Low cost of doing business enables: ▪ Consistently low prices (gross margins of only ~22%) ▪ Ability to respond to market p
Slide 8: The Group Model: Quality store locations
2. The Group Model iii. Quality store locations Store Summary JB Hi-Fi Australia 192 JB Hi-Fi JB Hi-Fi New Zealand 15 The Good Guys 104 ▪ High grade shopping centre, CBD and homemaker Total 311 store locations ▪ High foot traffic and convenient locations ▪ Compact store size 1 ▪ Dense displays, high
Slide 9: The Group Model: Supplier partnerships
2. The Group Model iv. Supplier partnerships ▪ Strong and lasting partnerships with all major suppliers, scale on a global level ▪ Quality store locations provide suppliers high visibility for their product ▪ Knowledgeable staff assist to inform the customer of product benefits, particularly importa
Slide 10: The Group Model: Multichannel capability
2. The Group Model v. Multichannel capability ▪ Continued investment in online ensures we give consumers choice on how to transact with JB HI-FI and The Good Guys (i.e. in store, mobile or desktop) ▪ Integrated, high quality in-store and online offer is critical as retail continues to evolve ▪ High
Slide 11: Achievements in the last 12 months
3. Achievements in the last 12 months • Group operating model • Category Evolution: • New executive team in place developed • Drones • Increased customer transactions • Shared capability and (Comp and total) efficiencies across the Group • Home security • Improved in-store conversion • Alignment of
Slide 12: Key focus areas for the next 12 months
4. Key focus areas for the next 12 months • Group sales and market share • Category Evolution: • Continued focus on sales – increase ASP • Group supply chain design and • PC gaming development • Store relays - focus on • Connected technology and adjacencies, improved traffic • Continued synergy real
Slide 13: Investment Checklist
5. Investment Checklist Unique and relevant brands Flexible business model – history of category growth and development Diversity of product categories across brands Scale operator, market leader Global best in class metrics including low cost of doing business and high sales per square me
Slide 14: Questions
QUESTIONS JB HI-FI LIMITED PAGE 14