Slide 1: JB Hi-Fi Limited HY17 Results Presentation
JB Hi-Fi Limited HY17 Results Presentation 15 13 AUGUST 2016 FEBRUARY 2017 PAGE 1
Slide 2: Agenda
Agenda 1. Group Performance Overview 2. JB HI-FI 3. The Good Guys 4. Stores 5. Group Balance Sheet and Cash Flow 6. Outlook Richard Murray Nick Wells Group CEO CFO JB HI-FI LIMITED PAGE 2
Slide 3: Group Performance Overview: Financial highlights
1. Group Performance Overview Financial highlights Growth AUD HY17 1 HY16 ($m) (%) Total sales ($m) 2,616.2 2,116.8 +499.4 +23.6% p Underlying earnings before interest and tax ($m) 180.8 138.2 +42.7 +30.9% p Underlying net profit after tax ($m) 125.4 95.2 +30.2 +31.7% p 2 Underlying earnings per sha
Slide 4: Divisional performance
1. Group Performance Overview Divisional performance 1 Growth HY17 HY16 ($m) % Sales ($m) - JB HI-FI Australia 2,234.2 2,000.9 +233.3 11.7% p - JB HI-FI New Zealand (NZD) 125.1 127.3 (2.2) (1.7%) q - The Good Guys 263.1 n/a +263.1 n/a Total Sales ($AUm) 2,616.2 2,116.8 +499.4 23.6% p EBIT ($m) - JB
Slide 5: JB HI-FI Australia performance summary
2. JB HI-FI JB HI-FI Australia performance summary AUD HY17 1 HY16 Growth Sales Total sales grew by 11.7% to $2.23 billion, with Sales ($m) 2,234.2 2,000.9 11.7% p comparable sales up 8.7% Gross Profit ($m) 496.5 438.6 13.2% p Hardware and Services3 sales in HY17 were up 15.8%, with Gross Margin
Slide 6: JB HI-FI Australia performance summary: Gross Profit and Margin
2. JB HI-FI JB HI-FI Australia performance summary AUD HY17 1 HY16 Growth Gross Profit and Margin Gross profit increased by 13.2% to $496.5 million Sales ($m) 2,234.2 2,000.9 11.7% p Gross margin was 22.2%, a 30 bps increase on the pcp, Gross Profit ($m) 496.5 438.6 13.2% p primarily driven by s
Slide 7: JB HI-FI Australia performance summary: CODB
2. JB HI-FI JB HI-FI Australia performance summary AUD HY17 1 HY16 Growth CODB CODB was 13.9%, down 26 bps on the pcp Sales ($m) 2,234.2 2,000.9 11.7% p CODB in absolute terms grew 9.7% Gross Profit ($m) 496.5 438.6 13.2% p Total operating costs were in line with expectations. Store wages Gros
Slide 8: JB HI-FI New Zealand performance summary
2. JB HI-FI JB HI-FI New Zealand performance summary NZD HY17 HY16 Growth Total sales were down 1.7% to NZ$125.1 million, with comparable sales down 11.2% Sales ($m) 125.1 127.3 (1.7%) q As highlighted in the pcp, HY16 sales were elevated by the market Gross Profit ($m) 24.0 23.0 4.4% p wide dem
Slide 9: The Good Guys performance summary
3. The Good Guys The Good Guys performance summary AUD HY171 For December 20162, total sales were up +0.7% to $263.1m, with comparable sales -0.7% Sales ($m) 263.1 December 2016 earnings of $14.3m were pleasing and ahead of the pcp driven by Gross Profit ($m) 51.7 improved sales mix and good cos
Slide 10: Recap of acquisition strategic rationale
3. The Good Guys Recap of acquisition strategic rationale Creates Australia’s leading consumer electronics and home appliance retail group Aligned retailing philosophies and customer value propositions with a focus on great value everyday and exceptional customer service Complementary customer
Slide 11: Stores across Australia and New Zealand
4. Stores 302 stores across Australia and New Zealand JB HI-FI In Australia, four new JB HI-FI HOME stores were opened and small appliances were introduced to a further 17 existing JB HI-FI stores in HY17 One new JB HI-FI store was opened 1 and small appliances were introduced to 2 one existing
Slide 12: Group Balance Sheet and Inventory Bridge
5. Group Balance Sheet and Cash Flow Group Balance Sheet Inventory Bridge – HY16 to HY17 $AUm HY17 FY16 HY16 Cash 124.5 51.9 101.4 $257.9m Receivables 331.8 98.0 146.1 $28.2m $3.0m Inventories 904.0 546.4 621.5 Other 46.3 6.1 9.7 ($6.6m) Total Current Assets 1,406.6 702.4 878.7 $904.0m Fixed Assets
Slide 13: Group Cash Flow Statement and Performance Indicators
5. Group Balance Sheet and Cash Flow Group Cash Flow Statement Group Performance Indicators $AUm HY17 HY16 HY17 HY16 Statutory EBITDA 188.5 157.9 Fixed Charge Ratio2 3.6x 3.5x Change in Working Capital 117.0 134.4 Interest Cover 66.0x 69.6x Net Interest Paid (0.1) (1.7) Gearing Ratio2 1.4 0.0 Income
Slide 14: Capital Management
5. Group Balance Sheet and Cash Flow Capital Management HY17 dividend up 14.3% The Board regularly reviews its capital structure with a focus Final on maximising returns to shareholders and believes the Interim current dividend payout ratio of 65% appropriately balances the distribution of profit
Slide 15: Outlook
6. Outlook Outlook January 2017 sales update: Total sales growth for JB HI-FI was 9.8% (January 2016: +10.2%) with comparable sales growth of 7.2% (January 2016: +6.5%) Total sales growth for The Good Guys was 5.0% with comparable sales growth of 3.5% FY17 Guidance: As we have previously highl
Slide 16: Appendix I
Appendix I a) Group underlying EBIT reconciliation c) Group underlying CODB reconciliation $AUm $AUm HY17 HY17 HY16 Statutory EBIT 165.5 Other income (ex interest received) (0.1) (0.004) Adjustments Sales and marketing expenses (App 4D) 249.3 202.8 - Transaction Fees 14.1 Occupancy expenses (App 4D)
Slide 17: Appendix II: Store reconciliation
Appendix II a) Store reconciliation HY17 FY16 Opened Acquired Total Australia JB HI-FI 124 - - 124 JB HI-FI HOME 55 4 - 59 179 4 - 183 New Zealand JB HI-FI 11 1 - 12 JB HI-FI HOME 4 - - 4 15 1 - 16 JB HI-FI TOTAL 194 5 - 199 THE GOOD GUYS1 - - 103 103 TOTAL 194 5 103 302 Store type: JB HI-FI 135 1 -
Slide 18: Appendix III: Group Profit and Loss
Appendix III a) Group Profit and Loss $AUm HY171 HY16 HY15 HY14 HY13 Sales 2,616.2 2,116.8 1,965.1 1,939.9 1,816.2 Gross Profit 571.1 459.6 427.3 419.6 390.9 Gross Margin 21.83% 21.71% 21.74% 21.63% 21.52% EBITDA 203.9 157.9 148.7 150.3 139.8 Depreciation & Amortisation 23.1 19.7 18.8 17.4 16.1 EBIT
Slide 19: Appendix III: Group Profit and Loss - Breakdown
Appendix III b) Group Profit and Loss - Breakdown HY171 HY16 JB HI-FI JB HI-FI JB HI-FI JB HI-FI Growth TGG Group Group $AUm AUST NZ (NZD) AUST NZ (NZD) Sales 2,234.2 125.1 263.1 2,616.2 2,000.9 127.3 2,116.8 +23.6% p Gross Profit 496.5 24.0 51.7 571.1 438.6 23.0 459.6 +24.3% p Gross Margin 22.22% 1
Slide 20: Appendix III: Group Balance Sheet
Appendix III c) Group Balance Sheet $AUm HY17 HY16 HY15 HY14 HY13 Cash 124.5 101.4 68.1 44.9 54.3 Receivables 331.8 146.1 150.5 127.6 113.6 Inventories 904.0 621.5 572.6 588.1 529.8 Other 46.3 9.7 5.7 4.7 6.8 Total Current Assets 1,406.6 878.7 796.8 765.4 704.4 Fixed Assets 215.7 185.5 190.4 185.4 1
Slide 21: Appendix III: Group Cash Flow
Appendix III d) Group Cash Flow $AUm HY17 HY16 HY15 HY14 HY13 Statutory EBITDA 188.5 157.9 148.7 150.3 139.8 Change in Working Capital 117.0 134.4 146.6 (45.8) (9.2) Net Interest Paid (0.1) (1.7) (2.7) (3.7) (4.9) Income Tax Paid (34.2) (33.6) (29.0) (25.9) (15.3) Other 4.8 2.6 1.8 3.3 3.1 Net Cash