Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — Macquarie Australia Conference 2013
22 slides from Jb Hi-fi's conference presentation, May 2013
Slide 1: JB Hi-Fi Limited Macquarie Australia Conference May 2013
For personal use only JB Hi Hi-Fi Fi Limited Macquarie Australia Conference May 2013
Slide 2: Agenda
Ag e n da For personal use only 1. Sales 2 2. Gross margin 3. Cost of doing business 4. Trading outlook 5. Growth opportunities pp 6. Commercial 7. Online 8. g Digital 9. JB HI-FI HOME trial 10. The JB model 11. Maintaining the JB model 12. Customer engagement 13. Investment checklist Terry Smart CE
Slide 3: Sales – maintaining momentum!
1. S a l e s For personal use only Sales – maintaining momentum! Sales Growth HY13 Jan - Apr '13 YTD (Apr '13) Total Comps.1 Total Comps.1 Total Comps.1 Australia 2.8% (3.4%) 11.0% 3.3% 5.4% (1.2%) New Zealand (NZD) (6.0%) (5.6%) (5.0%) (5.0%) (5.6%) (5.4%) Total 2.3% (3.5%) 10.3% 3.0% 4.9% (1.3%)
Slide 4: Gross Margin – it remains a competitive environment
2 . G r os s M a r gin For personal use only Gross Margin – it remains a competitive environment We continue to see an improvement in gross profit percentage over the previous corresponding period. Market is still very competitive although we are not currently experiencing the level of unsustain
Slide 5: Cost of Doing Business – Maintaining the focus!
3. Cos t of D oing B usin e s s For personal use only Cost of Doing Business – Maintaining the focus! Our low cost of doing business (CODB) enables us to operate at healthy profit margins notwithstanding competitor activity. This is driven by high sales per square q metre and an obsession with not
Slide 6: Trading Outlook – Sales momentum continues!
4 . T r a ding O u t l o o k For personal use only Trading Outlook – Sales momentum continues! At the end of FY13 the Company will have 177 stores (Australia: 164, NZ: 13), of which 176 will be JB Hi-Fi stores. We have completed our rollout of 13 new JB Hi- Fi stores for FY13,, all located in Aust
Slide 7: Trading Outlook - Categories: Evolution continues to drive growth
4 . T R A DI NG O U T L O O K - C at e g o rie s For personal use only Evolution continues to drive growth TV – Smart TV, big screen, OLED, Ultra HD. Telco – New handsets, Samsung S4, HTC ONE, potential new iPhone. Computer – continued growth in tablets, eReaders, Google Chromebooks, new form
Slide 8: Growth will come from multiple areas
5. G r o w t h Op p o rt unitie s For personal use only Growth will come from multiple areas New stores Solid pipeline of properties. Will continue our disciplined approach to selecting new stores. M j shopping Major h i didistricts. ti t High foot traffic locations. Existing store and c
Slide 9: Growth will come from multiple areas: Online and Digital
5. G r o w t h Op p o rt unitie s. . . For personal use only Growth will come from multiple areas Online JB HI-FI HOME website launched. New JB Hi-Fi website currently under construction. Digital NOW Music growing. NOW eBooks B k llaunched h d – add dd on tto d devices. i NOW Video ser
Slide 10: Commercial – Significant growth opportunity!
6 . Com me r cia l For personal use only Commercial – Significant growth opportunity! JB Hi-Fi has continued to see strong growth in Commercial, while off a small base revenue has grown 50% YTD. We have doubled our sales staff in Australia and NZ in the last 12 months including staff joining us
Slide 11: Commercial – Network Neighborhood acquisition
6 . Com me r cia l . . . For personal use only Commercial – Significant growth opportunity! On 17 Feb 2013, we acquired 51% in Network Neighborhood, a Victorian based Education IT Services business: – The business has 160 technicians providing IT support services to 400 schools in Victoria. In add
Slide 12: Online – Seamless customer experience
7. O n lin e For personal use only Goal is a “Seamless customer experience” Online and Mobile sites give customers a choice on how they wish to shop with JB Hi-Fi. Hi Fi In 1HY13, online sales grew 40.3% on the pcp to $37.2m or 2.0% of sales. Unique visitations grew 30.9% over the previous yea
Slide 13: Digital – JB HI-FI NOW
8 . Digita l For personal use only JB HI-FI NOW – Platform continues to developp and allows us to stayy engaged g g with our customers after the physical purchase has been made. We need to stay ahead of our customers needs d (i (i.e. as customers t evolve, l so d do we). ) NOW Music continues
Slide 14: JB HI-FI HOME trial – Leveraging the power of the brand!
9. J B HI-F I H OME t ria l For personal use only JB HI-FI HOME trial – Leveraging the power of the brand! Home categories H t g i – circa i $4 billi billion market opportunity. These categories are becoming fast becoming a technology and fashion story. On 28 November 2012, we announced the tr
Slide 15: JB HI-FI HOME trial – continued
9. J B HI-F I H ome t ria l . . . For personal use only JB HI-FI HOME trial – Leveraging the power of the brand! The new concept appears to have been positively accepted by our customers, with no negative impact on the traditional JB Hi-Fi categories. The two previously flagged Queensland stores
Slide 16: The JB Model – Unique and engaging model!
1 0. T h e J B Mo d e l For personal use only Unique and engaging model! Unique model, high energy, engaging and entertaining retail format (ranked 10th in Interbrand’s “Most valuable Australian Retail Brands 2013” listing). High level of loyalty and trust from customers (i.e. 3rd in the 2013 Co
Slide 17: Maintaining the model - Constant evolution
1 1. M ain taining T H E J B MO D E L For personal use only Maintaining the model - Constant evolution Its vital we remain focused on evolving the model to maintain the energy and entertainment factor. Constantly working to ensure that we maintain our appeal as a destination to browse, explore a
Slide 18: Customer Engagement: Not about Bricks vs. Online
1 2 . Cus t ome r E ngag e me n t For personal use only It’s not about Bricks vs. vs Online. Online 18 18
Slide 19: Customer Engagement: A seamless customer experience
1 2 . Cus t ome r E ngag e me n t. . . For personal use only It’s about a seamless Customer Experience. Experience 19 19
Slide 20: Investment Checklist
1 3. I n v e s tme n t C h e c k lis t For personal use only Unique q and relevant brand ((a consumer destination). ) Low cost of doing business (scale advantages). Flexible business model – history of category growth and development. Diversity of product categories. New store, online and
Slide 21: Appendix: Store movements and geographic breakdown
Ap p e n dix For personal use only Store movements during FY131 Geographic breakdown1 FY131 FY12 Opened Rebrand Closed Total Australia JB HI-FI - Tier 1 135 8 (7) - 136 JB HI-FI - Tier 2 18 5 - (3) 20 JB HI HI-FI FI HOME - - 7 - 7 153 13 - (3) 163 Clive Anthonys 2 - (1) 1 155 13 - (4) 164 2 New Zeal
Slide 22: Thank You
For personal use only Thank You