Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — H1 FY2006 Earnings Presentation
12 slides from Jb Hi-fi's earnings presentation, Feb 15, 2006
Slide 1: Half Year Results Presentation — December 2005
all = 5 -HL-FI JB Hi-Fi Limited Half Year Results Presentation — December 2005 15 February 2006
Slide 2: Agenda
we AGENDA 1. Performance 2. Trading Update 3. Financial Detail 4. New Stores 5. Investment Scorecard Richard Uechtritz Richard Murray CEO CFO
Slide 3: 1. Performance
JB 1. PERFORMANCE Strong performance for 6 months to 31 December 2005: Growth against pervious corresponding period: * Sales Comparable store sales growth (JB Stores: 7.1%, CA Stores: -5.0%) EBIT NPAT Return on invested capital $609.8m 5.3% $31.1m $18.8m 30% 35.5% * 26.2% * 28.5% * + 5% Interim full
Slide 4: 2. Trading Update
wJB : 2. TRADING UPDATE Strong growth in most categories - in particular Slim-line TV, Games & Portable Audio. Solid Christmas & post Christmas sales. Due to overall growth of gift categories as a % of business, ie CD, DVD, Games, Portable Audio and Camera’s, JB sales growth will have a bias to firs
Slide 5: 3. Financial Detail: Profit and Loss Statement
wJB : 3. FINANCIAL DETAIL Profit and Loss Statement: $m Sales Comparative Store Sales Growth Gross Profit Gross Margin EBITDA Depreciation & Amortisation EBIT EBIT Margin Net Profit After Tax (net of OED Headline Statistics: Earnings per share (basic, cents) Stores at period end OPEX (ex. depn & amo
Slide 6: Balance Sheet
JB Balance Sheet: $m Cash 45.5 32.1 13.5 Receivables 44.0 23.9 20.1 Inventories 160.1 128.5 31.5 Other Current Assets 2.0 18 0.3 Total Current Assets 251.6 186.2 65.4 Fixed Assets 50.6 30.8 19.8 Brandname & Goodwill 66.7 66.6 0.1 Other Non-Current 4.7 3.6 11 Total Non-Current Assets 121.9 101.0 20.9
Slide 7: Cashflow Statement
we Cashflow Statement: $m EBITDA 34.7 27.4 Change in Working Capital 40.1 (0.7) Interest Paid (2.5) (2.2) Income Tax Paid (6.2) (5.4) Net Cashflow from Operations 66.1 18.8 Purchases of F,F & E (16.8) (8.3) Payments for Intangibles & Invest. - (22.1) Net Cashflow from Investing (16.8) (30.5) Net Bor
Slide 8: Continued proactive management of working capital position
JB Continued proactive management of working capital position: $m (Increase)/Decrease in current assets Inventory (57.9) (49.2) Receivables (24.1) (9.3) Other Current Assets 0.6 1.5 Increase/(Decrease) in current liabilities Trade creditors 120.6 56.5 Other current liabilities 1.0 (0.2) Net Movement
Slide 9: Performance Indicators
JB Performance Indicators: JB Hi-Fi’s balance sheet remains strong, and the group is well positioned for growth. Stock Turnover 6.0 5.8 Creditors Days 64 65 Fixed Charge Ratio 3.7 4.0 Interest Cover (times) 10.2 9.6 Return on Equity 25% 26% Return on Invested Capital 30% 25%
Slide 10: IFRS Impact
JB IFRS Impact: $'000 IFRS NPAT Share Based Payments Straightline Rent Inventory Other Pre-tax IFRS impact Tax & OE Post-tax AGAAP NPAT Going forward share based payments and straight-line rent will be the influences on profit. 18,818 14,640 28.5% 402 245 262 152 103 812 (138) (77) 629 1,132 42 388
Slide 11: 4. New Stores
wJB : 4. NEW STORES 12 JB stores opened during 1* half of FY06: + NSW: Tuggerah, Miranda, Chatswood, Castle Hill, Brookvale, Campbelltown, Penrith, Hornsby * QLD: Robina, Loganholme + VIC: Cheltenham + NT: Darwin 6 JB stores to open during 2™ half of FY06: + NSW: Mt Druitt (March), Liverpool (June)
Slide 12: 5. Investment Scorecard
wJB : 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 new store roll-out continues, with plenty of site opportu