Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — FY2015 Earnings Presentation
21 slides from Jb Hi-fi's earnings presentation, Aug 10, 2015
Slide 1: Full Year Results Presentation
For personal use only JB Hi-Fi Limited Full Year Results Presentation 30 June 2015 10 August 2015
Slide 2: Agenda
AG E N DA For personal use only 1. FY15 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: FY15 Highlights
1. F Y 1 5 HI G HL I G HTS For personal use only Total sales up 4.8% to $3.65 billion Comparable sales up 2.9% Gross profit up 5.6% and gross margin up 16 bps NPAT up 6.4% to $136.5 million EPS up 7.4% to 137.9 cps Total dividend for FY15 up 7.1% to 90.0 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 FY14 FY15 Growth FY14 FY15 Growth FY14 FY15 Growth Sales 3,292.8 3,456.0 5.0% 211.4 211.1 (0.1%) 3,483.8 3,652.1 4.8% p Gross Profit 721.6 762.6 5.7% 38.1 38.3 0.6% 756.0 798.3 5.6% p Gross Margin 21.91% 2
Slide 5: Trading Performance
3. T R A DI NG P E R F O R M A NC E For personal use only Sales Sales Growth 1HY15 2HY15 FY15 Total consolidated sales grew by 4.8% to $3.65b, with Total Comps. Total Comps. Total Comps. comparable sales up 2.9%. Australia 1.4% (0.6%) 9.4% 7.8% 5.0% 3.1% Sales gained momentum through FY15 with p
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 FY14 FY15 FY14 FY15 Consolidated gross profit increased by 5.6% to $798.3m. Australia $721.6m $762.6m 21.91% 22.07% Consolidated gross margin was 21.9%, a 16 bps increase on the pcp. New Zealan
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) Consolidated CODB was 15.3%, up 6 bps on the pcp. CODB FY14 FY15 In Australia, CODB increased by 2 bps to 15.2%. Store wages Australia 15.18% 15.20% remained well controlled as we invested in our HOME s
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 5.1% to $200.9m and EBIT margin was up 1.5 bps on FY14 FY15 Australia 5.72% 5.77% the pcp at 5.5%. New Zealand 1.47% 0.74% This was a pleasing result with sales and earnings momentum gro
Slide 9: In Store: We continue to optimise the store portfolio
4. IN STOR E For personal use only We continue to optimise the store portfolio FY15 Four new JB HI-FI HOME stores (Aust: 3, NZ: 1) and one new JB HI-FI store opened (Aust: 1, NZ: Nil). 17 JB HI-FI stores were converted to JB HI-FI HOME (Aust: 15, NZ: 2). This included four stores in Australia wh
Slide 10: In Store: JB HI-FI HOME sales growth opportunity
4. IN STOR E . . . Significant sales growth opportunity in the ~$4.6b home appliances market1 For personal use only JB HI-FI HOME Our HOME store concept requires ~400 sqm of additional space (total store size HOME Stores ~1,750 sqm). ~75 Stores are rebranded JB HI-FI HOME with a full range of ho
Slide 11: JB HI-FI continues to evolve
4. IN STOR E . . . For personal use only JB HI-FI continues to evolve It is 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 and discover. Obsession with m
Slide 12: Out of Store
5. O u t of s t o r e For personal use only JB HI-FI Solutions (formerly Commercial) The recent rebranding of JB HI-FI Commercial as JB HI-FI Solutions is in line with our plan to provide an integrated offer of both products and services to business, government and education clients across Austral
Slide 13: Cash Flow and 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 Cash Flow Statement Working Capital AUDm FY14 FY15 AUDm FY14 FY12 FY15 EBITDA 226.7 240.0 (Increase)/decrease in current assets Change in Working Capital (122.0) (4.6) Inventory (29.6) (22.0) Net Interest Paid (7.1) (5.1) Receivab
Slide 14: Cash Flow and Balance Sheet: Balance Sheet and Inventory Bridge
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 – FY14 to FY15 AUDm FY14 FY15 $9.9m ($16.5m) Cash 43.4 49.1 $10.4m Receivables 70.7 81.5 $16.5m Inventories 458.6 478.9 $3.8m Other 5.3 7.4 Total Current Assets 578.1 616.9 $478.9m $458.6m Fixed
Slide 15: 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. Total Dividend up 7.1% The Board believes the current dividend payout ratio of 65% appropriately balances th
Slide 16: Trading Outlook
8 . T R A DI NG O U T L O OK For personal use only Trading Outlook July 2015 sales update: - total consolidated sales growth was 7.6% (July 2014: -3.2%); and - consolidated comparable sales growth was 5.7% (July 2014: -5.5%). The sales result in July 2015 was a solid start to FY16 as we cycled a
Slide 17: Appendix I
Ap p e n dix I For personal use only a) Store movements during FY15 b) Geographic breakdown2 FY15 FY14 Opened Converted Total Australia JB HI-FI 147 1 (15) 133 JB HI-FI HOME 22 3 15 40 169 4 - 173 New Zealand 2 JB HI-FI 13 - (2) 11 JB HI-FI HOME - 1 2 3 35 13 1 - 14 TOTAL 182 5 - 187 19 9 Store type
Slide 18: Appendix II
Ap p e n dix I I For personal use only a) EBIT reconciliation b) NZ Profit and Loss statement (AUD) AUDm FY14 FY15 AUDm FY14 FY15 Profit for the full-year (App 4E) 128.4 136.5 Sales 190.9 196.1 add back Gross Profit 34.4 35.6 - income tax expense (App 4E) 54.2 59.0 Gross Margin 18.03% 18.16% Profit
Slide 19: Appendix III: Profit and Loss
Ap p e n dix I I I For personal use only a) Profit and Loss AUDm FY11N 1 FY12 FY13 FY14 FY15 Sales 2,959.3 3,127.8 3,308.4 3,483.8 3,652.1 Gross Profit 652.0 659.8 712.2 756.0 798.3 Gross Margin 22.03% 21.10% 21.53% 21.70% 21.86% EBITDA 223.3 192.2 211.0 226.7 240.0 Depreciation & Amortisation 27.3
Slide 20: Appendix III: Cash Flow
Ap p e n dix I I I. . . For personal use only b) Cash Flow AUDm FY11N 1 FY12 FY13 FY14 FY15 EBITDA 223.3 192.2 211.0 226.7 240.0 Change in Working Capital (62.2) 80.3 (8.2) (122.0) (4.6) Net Interest Paid (3.8) (12.2) (8.4) (7.1) (5.1) Income Tax Paid (52.2) (49.3) (39.6) (60.6) (59.9) Other 4.8 3.9
Slide 21: Appendix III: Balance Sheet
Ap p e n dix I I I. . . For personal use only c) Balance Sheet AUDm FY11 FY12 FY13 FY14 FY15 Cash 27.2 39.7 67.4 43.4 49.1 Receivables 58.3 58.4 64.2 70.7 81.5 Inventories 406.9 428.3 426.0 458.6 478.9 Other 8.6 7.7 6.0 5.3 7.4 Total Current Assets 501.1 534.1 563.7 578.1 616.9 Fixed Assets 169.6 18