Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — H1 2016 Earnings Presentation
20 slides from Jb Hi-fi's earnings presentation, Feb 8, 2016
Slide 1: Half Year Results Presentation
For personal use only JB Hi-Fi Limited Half Year Results Presentation 31 December 2015 8 February 2016
Slide 2: Agenda
AG E N DA For personal use only 1. HY16 Highlights 2. Profit and Loss Statement 3. Trading Performance 4. In Store 5. Out of Store 6. Cash Flow and Balance Sheet 7. Capital Management 8. Trading Outlook Richard Murray Nick Wells CEO CFO
Slide 3: HY16 Highlights
1. H Y 1 6 HI G HL I G HTS For personal use only Total sales up 7.7% to $2.12 billion Comparable sales up 5.2% Gross profit up 7.6% NPAT up 7.5% to $95.2 million EPS up 7.5% to 96.1 cps Interim dividend up 4 cps to 63 cps 3
Slide 4: Profit and Loss Statement
2 . P R OF I T A N D L OS S S TAT E ME N T For personal use only AUST NZ (NZD) CONSOLIDATED $m HY15 HY16 Growth HY15 HY16 Growth HY15 HY16 Growth Sales 1,862.1 2,000.9 7.5% 113.0 127.3 12.7% 1,965.1 2,116.8 7.7% p Gross Profit 408.7 438.6 7.3% 20.4 23.0 12.9% 427.3 459.6 7.6% p Gross Margin 21.95% 2
Slide 5: Trading Performance: Sales
3. T R A DI NG P E R F O R M A NC E For personal use only Sales Sales Growth Q1 FY16 Q2 FY16 HY16 Total consolidated sales grew by 7.7% to $2.12b, with Total Comps. Total Comps. Total Comps. comparable sales up 5.2%. Australia 4.7% 3.4% 9.5% 6.5% 7.5% 5.2% Sales in November and December 2015 wer
Slide 6: Trading Performance: Gross Margin
3. T R A DI NG P E R F O R M A NC E . . . For personal use only Gross Margin GROSS PROFIT GROSS MARGIN Consolidated gross profit increased by 7.6% to $459.6m. HY15 HY16 Growth HY15 HY16 Growth Consolidated gross margin was 21.7%, a 3 bps decrease Australia $408.7m $438.6m 7.3% 21.95% 21.92% (3 b
Slide 7: Trading Performance: Cost of Doing Business
3. T R A DI NG P E R F O R M A NC E . . . For personal use only Cost of Doing Business (CODB) CODB HY15 HY16 Consolidated CODB was 14.3%, up 8 bps on the pcp. Australia 14.14% 14.19% In Australia, CODB increased by 5 bps to 14.2%. Operating costs remained well New Zealand 14.78% 15.31% controlle
Slide 8: Trading Performance: Earnings
3. T R A DI NG P E R F O R M A NC E . . . For personal use only Earnings EBIT MARGIN Consolidated EBIT was up 6.3% to $138.2m, driven by Australia with growth of 6.8%. HY15 HY16 Australia 6.86% 6.82% This was a solid result with sales and earnings momentum growing through the half New Zealand 2.17
Slide 9: In Store: We continue to optimise the store portfolio
4. IN STOR E We continue to optimise the store portfolio For personal use only HY16 Seven new stores were opened in HY16, four new JB HI-FI HOME stores (Aust: 4, NZ: nil) and three new JB HI-FI stores1 (Aust: 2, NZ: 1). Nine existing JB HI-FI stores were converted to JB HI-FI HOME (Aust: 8, NZ:
Slide 10: In Store: JB HI-FI HOME
4. IN STOR E . . . For personal use only JB HI-FI HOME During HY16 nine existing stores were converted to JB HI-FI HOME and four new JB HI-FI HOME stores were opened. We had HOME Stores 56 HOME stores at the end of HY16, including four in New ~75 Zealand. In FY16 we anticipate opening five new J
Slide 11: Out of Store
5. O u t of s t o r e For personal use only JB HI-FI Solutions All departments enjoyed solid growth. We remain on track to deliver on our longer term aspirational sales target of approximately $500m per annum, through both organic growth and strategic acquisitions. Online and Digital We contin
Slide 12: Cash Flow and Balance Sheet: Cash Flow
6 . C A S H F L O W A N D B A L A NC E S H E ET For personal use only Cash Flow Statement Working Capital AUDm HY15 HY16 AUDm HY15 FY12 HY16 EBITDA 148.7 157.9 (Increase)/decrease in current assets Change in Working Capital 146.6 134.4 Inventory (112.6) (140.4) Net Interest Paid (2.7) (1.7) Receivab
Slide 13: Cash Flow and Balance Sheet: Balance Sheet
6 . C A S H F L O W A N D B A L A NC E S H E ET. . . For personal use only Balance Sheet Inventory Bridge – HY15 to HY16 AUDm HY15 HY16 FY15 $11.7m ($27.7m) $33.6m Cash 68.1 101.4 49.1 Receivables 150.5 146.1 81.5 $31.2m $17.6m Inventories 572.6 621.5 478.9 Other 5.7 9.7 7.4 Total Current Assets 796
Slide 14: Capital Management
7. C API TA L M A NAG E ME N T For personal use only Capital Management JB HI-FI regularly reviews all aspects of its capital structure with a focus on maximising returns to shareholders. Interim dividend up 4 cps We have maintained our dividend payout ratio of 65%, with the interim dividend at
Slide 15: Trading Outlook
8 . T R A DI NG O U T L O OK For personal use only Trading Outlook January 2016 sales update: - Total consolidated sales growth was +10.2% (January 2015: +8.9%); and - Consolidated comparable sales growth was +6.5% (January 2015: +7.0%). The sales result in January 2016 was pleasing given the stre
Slide 16: Appendix I
Ap p e n dix I a) Store movements during HY16 b) Geographic breakdown2 For personal use only HY16 FY15 Opened Converted Total Australia JB HI-FI 133 2 (8) 127 JB HI-FI HOME 40 4 8 52 173 6 - 179 New Zealand 2 JB HI-FI 11 1 (1) 11 JB HI-FI HOME 3 - 1 4 37 14 1 - 15 TOTAL 187 7 - 194 21 9 Store type:
Slide 17: Appendix II
Ap p e n dix I I For personal use only a) EBIT reconciliation b) NZ Profit and Loss statement (AUD) AUDm HY15 HY16 AUDm HY15 HY16 Profit for the half-year (App 4D) 88.5 95.2 Sales 103.0 116.0 add back Gross Profit 18.6 21.0 - income tax expense (App 4D) 38.5 41.2 Gross Margin 18.03% 18.07% Profit be
Slide 18: Appendix III: Profit and Loss
Ap p e n dix I I I For personal use only a) Profit and Loss AUDm HY12 HY13 HY14 HY15 HY16 Sales 1,774.7 1,816.2 1,939.9 1,965.1 2,116.8 Gross Profit 377.0 390.9 419.6 427.3 459.6 Gross Margin 21.24% 21.52% 21.63% 21.74% 21.71% CODB 240.9 251.1 269.3 278.5 301.6 EBITDA 136.1 139.8 150.3 148.7 157.9 D
Slide 19: Appendix III: Cash Flow
Ap p e n dix I I I. . . For personal use only b) Cash Flow AUDm HY12 HY13 HY14 HY15 HY16 EBITDA 136.1 139.8 150.3 148.7 157.9 Change in Working Capital 107.5 (9.2) (45.8) 146.6 134.4 Net Interest Paid (7.2) (4.9) (3.7) (2.7) (1.7) Income Tax Paid (23.9) (15.3) (25.9) (29.0) (33.6) Other 3.4 3.1 3.3
Slide 20: Appendix III: Balance Sheet
Ap p e n dix I I I. . . For personal use only c) Balance Sheet AUDm HY12 HY13 HY14 HY15 HY16 Cash 58.7 54.3 44.9 68.1 101.4 Receivables 125.7 113.6 127.6 150.5 146.1 Inventories 415.7 529.8 588.1 572.6 621.5 Other 8.0 6.8 4.7 5.7 9.7 Total Current Assets 608.2 704.4 765.4 796.8 878.7 Fixed Assets 18