Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — H1 FY22 Earnings Presentation
40 slides from Jb Hi-fi's earnings presentation, Feb 14, 2022
Slide 1: HY22 Results Presentation
rsonal use only JB Hi-Fi Limited HY22 Results Presentation JB HI-FI LIMITED
Slide 2: Agenda
Agenda 1. Group Overview rsonal use only 2. JB HI-FI Australia and JB HI-FI New Zealand 3. The Good Guys 4. Group Balance Sheet and Cash Flow 5. Group FY22 Trading Update 6. Investment Checklist Terry Smart Nick Wells Group CEO Group CFO JB HI-FI LIMITED PAGE 2
Slide 3: Group Overview
rsonal use only 1. Group Overview
Slide 4: Group Model: Two iconic Australian retail brands
Group Model Two iconic Australian retail brands rsonal use only Purpose Help people with better ways to live, Help families live better for less learn, work, and play Leading retailer of technology and Leading retailer of home appliances Product offering consumer electronics and consumer electronics
Slide 5: Group Model: Scale
Group Model Underpinned by 4 key competitive advantages rsonal use only 1 Scale ▪ #1 player in Australian Consumer Electronics and Home LEADING RETAILER BY COUNTRY Appliance market (SALES AUD$BN1) ▪ Local and global relevance to suppliers 67.6 ▪ Strong and engaged supplier relationships both locally
Slide 6: Group Model: Low Cost Operating Model
Group Model Underpinned by 4 key competitive advantages rsonal use only 2 Low Cost Operating Model CODB% ▪ Constant focus on productivity and minimising unnecessary expenditure ▪ Highly productive floor space with high sales per square metre ▪ Efficiency of model allows us to: ▪ respond to market pr
Slide 7: Group Model: Multichannel Capability
Group Model Underpinned by 4 key competitive advantages rsonal use only 3 Multichannel Capability 3 319 Stores 62 ▪ Focus on providing the customer with an integrated 37 and frictionless shopping experience regardless of their chosen 16 sale channel 91 ▪ Customer choice on how to shop with us 8 ▪ In
Slide 8: Group Model: People and Culture
Group Model Underpinned by 4 key competitive advantages rsonal use only 4 People and Culture ▪ Knowledgeable and passionate teams who put customers first and provide exceptional customer service ▪ Strong, overarching culture that also reflects the individual brand personalities ▪ Dynamic and flexibl
Slide 9: Generating sustainable long-term growth
Generating sustainable long-term growth The Group is committed to having a positive impact on our people, our community and our environment rsonal use only Sustainability Policy focus areas HY22 Achievements Our People ▪ Prioritised the safety of team members through Covid-19, including support to t
Slide 10: Group HY22 Performance
Group HY22 Performance HY22 Group Performance rsonal use only AUD HY22 HY21 Growth vs HY21 HY20 Growth vs HY20 Total sales ($m) 4,861.8 4,941.2 (79.4) (1.6%) ▼ 3,995.2 866.6 21.7% ▲ Earnings before interest and tax ($m) 420.5 462.8 (42.3) (9.1%) ▼ 263.0 157.5 59.9% ▲ Net profit after tax ($m) 287.9
Slide 11: HY22 Divisional Sales Performance
Group HY22 Performance HY22 Divisional Sales Performance rsonal use only HY22 HY21 Growth vs HY21 HY20 Growth vs HY20 $m % $m % Sales ($m) - JB HI-FI Australia 3,290.5 3,355.7 (65.2) (1.9%) ▼ 2,722.4 568.1 20.9% ▲ - JB HI-FI New Zealand (NZD) 138.4 144.9 (6.5) (4.5%) ▼ 132.8 5.6 4.2% ▲ - The Good Gu
Slide 12: HY22 Divisional Earnings Performance
Group HY22 Performance HY22 Divisional Earnings Performance rsonal use only HY22 HY21 Growth vs HY21 HY20 Growth vs HY20 $m % $m % EBIT ($m) - JB HI-FI Australia 292.4 329.8 (37.4) (11.3%) ▼ 209.3 83.1 39.7% ▲ - JB HI-FI New Zealand (NZD) 7.3 6.9 0.4 6.0% ▲ 1.5 5.8 391.7% ▲ - The Good Guys 121.1 126
Slide 13: JB HI-FI Australia and New Zealand
rsonal use only 2. JB HI-FI Australia and New Zealand
Slide 14: JB HI-FI Australia HY22 Performance
JB HI-FI Australia HY22 Performance rsonal use only HY22 HY21 Growth vs HY20 Growth vs AUD HY21 HY20 Sales ($m) 3,290.5 3,355.7 (1.9%) ▼ 2,722.4 20.9% ▲ Gross Profit ($m) 716.3 737.4 (2.9%) ▼ 600.8 19.2% ▲ Gross Margin (%) 21.77% 21.98% (21 bps) ▼ 22.07% (30 bps) ▼ Cost of Doing Business (%) 10.79%
Slide 15: JB HI-FI Australia HY22 Sales
JB HI-FI Australia HY22 Performance HY22 Sales TOTAL SALES GROWTH rsonal use only ▪ Total sales declined by 1.9% on HY21 to $3.29 billion, with comparable sales down 2.5%. Over a two-year period total sales were up 20.9% with comparable sales up 20.8%. Sales momentum was strong through the half, vs
Slide 16: JB HI-FI Australia HY22 Earnings
JB HI-FI Australia HY22 Performance HY22 Earnings EBIT $ rsonal use only ▪ HY22 gross profit declined on HY21 by 2.9% to $716.3 million with gross margin down 21 bps to 21.8% ▪ CODB was 10.8%, up 71 bps. CODB in absolute terms grew 5.0% with disciplined cost control throughout the half $330m $292m ▪
Slide 17: JB HI-FI New Zealand HY22 Performance
JB HI-FI New Zealand HY22 Performance rsonal use only HY22 HY21 Growth vs HY20 Growth vs NZD HY21 HY20 Sales ($m) 138.4 144.9 (4.5%) ▼ 132.8 4.2% ▲ Gross Profit ($m) 24.2 24.8 (2.4%) ▼ 23.0 5.0% ▲ Gross Margin (%) 17.49% 17.13% +37 bps ▲ 17.36% +14 bps ▲ Cost of Doing Business (%) 12.16% 11.85% +31
Slide 18: JB HI-FI New Zealand HY22 Sales
JB HI-FI New Zealand HY22 Performance HY22 Sales TOTAL SALES GROWTH rsonal use only ▪ Total sales declined by 4.5% on HY21 to NZD138.4 million, with vs FY21 comparable sales down 4.5%. Over a two-year period total sales were 12.8% up 4.2% with comparable sales up 4.2% vs FY20 ▪ Hardware and Services
Slide 19: JB HI-FI New Zealand HY22 Earnings
JB HI-FI New Zealand HY22 Performance HY22 Earnings EBIT NZD rsonal use only ▪ Gross margin was up 37 bps to 17.5% ▪ CODB was 12.2%, up 31 bps, but in absolute terms declined by 2.0% as store wages remained well controlled. JB Hi-Fi New Zealand received NZD0.5m from the New Zealand Government’s wage
Slide 20: The Good Guys
rsonal use only 3. The Good Guys
Slide 21: The Good Guys HY22 Performance
The Good Guys HY22 Performance rsonal use only HY22 HY21 Growth vs HY20 Growth vs AUD HY21 HY20 Sales ($m) 1,439.4 1,450.5 (0.8%) ▼ 1,147.5 25.4% ▲ Gross Profit ($m) 324.9 324.6 0.1% ▲ 237.6 36.8% ▲ Gross Margin (%) 22.58% 22.38% +19 bps ▲ 20.71% +187 bps ▲ Cost of Doing Business (%) 11.42% 10.98% +
Slide 22: The Good Guys HY22 Sales
The Good Guys HY22 Performance HY22 Sales TOTAL SALES GROWTH rsonal use only ▪ Total sales declined by 0.8% on HY21 to $1.44 billion, with comparable sales down 1.3%. Over a two-year period total sales vs FY21 were up 25.4% with comparable sales up 24.7%. Sales momentum vs FY20 was strong through th
Slide 23: The Good Guys HY22 Earnings
The Good Guys HY22 Performance HY22 Earnings EBIT $ rsonal use only ▪ Gross profit was $324.9 million with gross margin up 19 bps to 22.6%, driven by strong improvements in key categories ▪ CODB was 11.4%, up 45bps, and in absolute terms grew 3.3% as store wages remained well controlled throughout t
Slide 24: Group Balance Sheet and Cash Flow
rsonal use only 4. Group Balance Sheet And Cash Flow
Slide 25: Group Balance Sheet
Group Balance Sheet and Cash Flow Group Balance Sheet rsonal use only ▪ Inventory at December finished at $1,065 million, down $71 AUDm HY22 FY21 HY21 HY20 million year on year, as a result of continued Covid-19 related Cash 844.5 263.2 472.8 76.8 supply shortages. Inventory turnover was down 64 bps
Slide 26: Group Cash Flow Statement and Performance Indicators
Group Balance Sheet and Cash Flow Group Cash Flow Statement Group Performance Indicators rsonal use only AUDm HY22 HY21 HY20 HY22 HY21 EBITDA 529.0 571.9 372.1 Fixed Charge Ratio 3 4.4x 4.2x Change in Working Capital 482.3 (34.6) (17.7) Interest Cover 3 621.7x 217.5x Net Interest Paid on Borrowings
Slide 27: Capital Management
Group Balance Sheet and Cash Flow HY22 DIVIDEND OF 163 CPS Capital Management rsonal use only ▪ The interim dividend is 163 cents per share (cps) fully franked, down 17 cps or 9.4% and represents 65% of NPAT ▪ The record date for the final dividend is 24 February 2022, with payment to be 180 made on
Slide 28: Up to $250m Off-Market Buy-Back
Group Balance Sheet and Cash Flow Up to $250m return of capital by way of an Off-Market Buy-Back rsonal use only 1. Scale Off-Market Buy-Back Timetable2 ▪ Off-Market Buy-Back of up to $250m Announcement of Buy-Back 14 February ▪ The buy-back will be conducted via a tender Last day that Shares can be
Slide 29: Group FY22 Trading Update
rsonal use only 5. Group FY22 Trading Update
Slide 30: January 2022 sales update and outlook
Group FY22 Trading Update January 2022 sales update and outlook rsonal use only ▪ The Group provides the following sales update for the period 1 January 2022 to 31 January 2022: Comparable Total Sales Growth January FY22 vs FY21 vs FY20 vs FY21 vs FY20 JB HI-FI Australia 3.6% 22.2% 4.3% 22.4% JB HI-
Slide 31: Investment Checklist
rsonal use only 6. Investment Checklist
Slide 32: Investment Checklist
Investment Checklist rsonal use only Unique team culture and unrivalled Unique and relevant brands customer service Flexible business model – history of Multichannel capability built around high quality store category growth and development portfolio Diversity of product categories across br
Slide 33: Appendices
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Slide 34: Group Profit and Loss
Appendix I a) Group Profit and Loss rsonal use only AUDm HY22 HY21 HY20 HY19 HY18 (Pre AASB16) (Pre AASB16) Sales 4,861.8 4,941.2 3,995.2 3,843.7 3,689.8 Gross Profit 1,064.4 1,085.2 860.2 828.0 793.9 Gross Margin 21.89% 21.96% 21.53% 21.54% 21.52% EBITDA 529.0 571.9 372.1 264.3 256.3 Depreciation &
Slide 35: Group CODB reconciliation
Appendix I b) Group CODB reconciliation rsonal use only AUDm HY22 HY21 HY20 Other income (ex interest revenue) (1.8) (1.0) (0.8) Sales and marketing expenses 448.3 433.9 407.3 Occupancy expenses 148.5 146.1 149.4 less depreciation, amortisation & impairment (103.8) (103.7) (104.6) Administration exp
Slide 36: Group Balance Sheet
Appendix I c) 5 year Group Balance Sheet rsonal use only AUDm HY22 HY21 HY20 HY19 HY18 (Pre AASB16) (Pre AASB16) Cash 844.5 472.8 76.8 117.1 182.7 Receivables 109.4 110.9 124.4 103.5 106.4 Inventories 1,064.8 1,135.4 1,132.3 1,076.4 986.7 Other 32.0 35.4 37.6 41.2 45.3 Total Current Assets 2,050.7 1
Slide 37: Group Cash Flow
Appendix I d) 5 year Group Cash Flow rsonal use only AUDm HY22 HY21 HY20 HY19 HY18 . (Pre AASB16) (Pre AASB16) EBITDA 529.0 571.9 372.1 264.3 256.3 Change in Working Capital 482.3 (34.6) (17.7) 84.5 179.3 Net Interest Paid on Borrowings (0.1) (1.0) (4.8) (6.5) (8.5) Interest on lease liabilities (9.
Slide 38: Group Profit and Loss – Breakdown
Appendix II e) Group Profit and Loss – Breakdown rsonal use only HY22 HY21 HY20 Growth Growth JB HI-FI JB HI-FI JB HI-FI JB HI-FI vs HY21 JB HI-FI JB HI-FI vs HY20 TGG Group TGG Group TGG Group AUDm AUST NZ (NZD) AUST NZ (NZD) AUST NZ (NZD) Sales 3,290.5 138.4 1,439.4 4,861.8 3,355.7 144.9 1,450.5 4
Slide 39: Stores across Australia and New Zealand
Appendix III 319 stores across Australia and New Zealand1 Group store reconciliation rsonal use only HY22 FY21 Opened Converted Closed Total Australia 1 JB HI-FI 137 2 - - 139 2 JB HI-FI HOME 60 - - - 60 23 197 2 - - 199 14 39 New Zealand JB HI-FI 14 - - - 14 23 JB HI-FI HOME - - - - - 5 14 - - - 14
Slide 40: Important Notice and Disclaimer
Important Notice and Disclaimer The material in this presentation is general background information about JB Hi-Fi Limited (ACN 093 220 136) (JB Hi-Fi) and its rsonal use only activities current as at the date of the presentation, 14th February 2022. It is information given in summary form and does