Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — Merger or Acquisition (August 2004)
8 slides from Jb Hi-fi's merger presentation, Aug 5, 2004
Slide 1: Acquisition of 70% interest in Clive Anthonys
WB AFL JB Hi-Fi Limited Acquisition of 70% interest in Clive Anthonys 5 August 2004 Chief Executive Officer Chief Financial Officer Richard Uechtritz Richard Murray
Slide 2: Introduction
Introduction » JB to acquire 70% of shares in Clive Anthonys Pty Ltd >» Clive Anthonys is a Queensland based electrical goods retailer * Consumer Electronics, White Goods, Cooking and Computers * 5 Stores currently (5 store opened mid June 2004) > Clive Anthonys FY2004 Sales $82.5m, EBIT $7.5m > Cos
Slide 3: Why Clive Anthonys?
Why Clive Anthonys? ral B Hi-Fi » It's a great business and an attractive Investment at an attractive price * Very profitable ($7.5m EBIT on $82.5m of Sales, EBIT Margin of 9.1%) * Strong cashflow and no debt * Proven strong performance over years * Low cost culture (opex as a % of sales — 16%) * Ex
Slide 4: Why Clive Anthonys? - continued
Why Clive Anthonys? - continued ral B >» Great management team, who will continue to manage the busines * Clive Savage (Executive Chairman) one of the best electrical retailers in the country (ex Clive Peeters founder) + Managing Director, Senior Buyer, Operations General Manager all staying + Commi
Slide 5: Why Clive Anthonys? - continued (synergies)
Why Clive Anthonys? - continued ral B HI-FI > Has synergies with JB Hi-Fi * 30% of Clive Anthonys sales are brown goods (TV, Home Theatre, Cameras etc.) * 70% of stock purchases are from existing JB suppliers resulting in better buying power (rebates and advertising support) for both parties >» Allo
Slide 6: Clive Anthonys Future
Clive Anthonys Future >» Short Term * Further 1 to 2 stores in Brisbane * Rollout in Sydney > JB will probably move to 100% in 3 to 4 years * Ensure focus on JB roll out in short term * Directly motivate Clive Anthony management post acquisition [ JB J
Slide 7: Q&A
Q&A [ JB J
Slide 8: Appendix - Clive Anthonys Stores
Appendix - Clive Anthonys Stores ral B >» 4 Stores in Queensland and 1 store in NSW > Current portfolio of 5 stores Mermaid Waters (QLD) — opened Nov 1996 Carseldine (QLD) — opened Dec 2002 Labrador (QLD) — opened Nov 2002 Tweed Heads (NSVV) - opened Dec 2003 Capalaba (QLD) - opened June 2004 a fF W