Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — H1 FY2007 Earnings Presentation
12 slides from Jb Hi-fi's earnings presentation, Feb 13, 2007
Slide 1: JB Hi-Fi Limited Half Year Results Presentation – December 2006
JB Hi-Fi Limited Half Year Results Presentation – December 2006 13 February 2007
Slide 2: Agenda
AGENDA 1. Performance 2. Trading Update 3. Financial Detail 4. New Stores 5. Investment Scorecard Richard Uechtritz Richard Murray CEO CFO 2
Slide 3: 1. Performance
1. PERFORMANCE Strong performance for 6 months to 31 December 2006: Growth against PCP q Sales $658.9m 29.2%Û q Comparable store sales growth 5.8% (JB Hi-Fi Stores: 7.7%, CA Stores: -7.8%) q NPAT $26.2m 39.1%Û q Earnings per share 25.3 cps 38.1%Û q Return on invested capital 34.5% +5.1%Û q Dividend
Slide 4: 2. Trading Update
2. TRADING UPDATE Trading Performance w 1st half comparative store growth was 7.7% for JB Hi -Fi stores and -7.8% for CA stores (5.8% consolidated). w Solid Christmas sales. w Most categories were solid over Christmas with DVD, games and portable audio very strong. JB Hi-Fi has cemented itself as a
Slide 5: 2. Trading Update: New Stores, Industry, New Zealand
2. TRADING UPDATE New Stores § Opened 7 new JB Hi-Fi stores in first half which are all trading well. § Planning to open 6 new JB Hi-Fi stores in 2nd half. § Canberra City expanded to full JB Hi-Fi offering. Industry § Competitive climate continues to drive industry rationalisation (eg. Retravision
Slide 6: 3. Financial Detail: Profit and Loss Statement
3. FINANCIAL DETAIL Profit and Loss Statement: $m 1H 07 1H 06 Growth Sales 658.9 509.8 29.2% Comparative Store Sales Growth 5.8% 5.3% Gross Profit 145.9 114.8 27.1% Gross Margin * 22.1% 22.5% - 0.4% EBITDA 46.4 34.4 34.9% Depreciation & Amortisation 5.1 3.6 EBIT 41.3 30.8 34.1% EBIT Margin 6.3% 6.0%
Slide 7: Balance Sheet
3. FINANCIAL DETAIL. . . Balance Sheet: $m 1H 07 1H 06 Growth Cash 83.4 45.5 37.9 Receivables 55.4 44.0 11.4 Inventories 188.7 160.1 28.6 Other Current Assets 3.2 2.0 1.2 Total Current Assets 330.7 251.6 79.1 Fixed Assets 69.7 50.6 19.1 Brandname & Goodwill 66.7 66.7 - Other Non-Current 6.2 2.8 3.4
Slide 8: Cashflow Statement
3. FINANCIAL DETAIL. . . Cashflow Statement: $m 1H 07 1H 06 EBITDA 46.4 34.4 Change in Working Capital 65.5 40.4 Net Interest Paid (3.3) (2.5) Income Tax Paid (8.5) (6.2) Net Cashflow from Operations 100.1 66.1 Purchases of F,F & E (17.9) (17.0) Other - 0.2 Net Cashflow from Investing (17.9) (16.8)
Slide 9: Continued proactive management of working capital position
3. FINANCIAL DETAIL. . . Continued proactive management of working capital position: $m 1H 07 1H 06 (Increase)/Decrease in current assets Inventory (27.5) (57.9) Receivables (27.1) (24.1) Other Current Assets (0.4) 0.6 Increase/(Decrease) in current liabilities Trade creditors 116.3 120.6 Other curr
Slide 10: Performance Indicators
3. FINANCIAL DETAIL. . . Performance Indicators: JB Hi-Fi’s balance sheet remains strong, and the group is well positioned for continued growth. 1H 07 1H 06 Stock Turnover 5.8 6.0 Creditors Days 64.7 64.5 Fixed Charge Ratio 3.7 3.7 Interest Cover (times) 10.9 10.2 Return on Equity 25.5% 25.3% Return
Slide 11: 4. New Stores
4. NEW STORES 7 JB Hi-Fi stores were opened during the 1st half of FY07: • NSW: Wollongong • BRISBANE: Carindale, Chermside • MELBOURNE: Broadmeadows, Essendon H1+6 = 78 • ADELAIDE: Elizabeth • PERTH: Myaree 6 JB Hi-Fi stores are proposed to open during the 2nd half of FY07 72 66 48 32 26 21 15 10 A
Slide 12: 5. Investment Scorecard
5. INVESTMENT SCORECARD Strong growth, profitability & sustainable competitive advantage: Growth factors: • Continued focused exposure to growth home entertainment product market • Recently opened stores continue to mature strongly • JB Hi-Fi new store roll-out continues, with plenty of site opportu