Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — 2019 Macquarie Australia Conference
18 slides from Jb Hi-fi's conference presentation, Apr 30, 2019
Slide 1: JB Hi-Fi Limited 2019 Macquarie Australia Conference
JB Hi-Fi Limited 2019 Macquarie Australia Conference 30 AUGUST 15 APRIL 2019 2016 PAGE 1
Slide 2: Agenda
Agenda 1. Trading and FY19 Outlook 2. The Group Model 3. FY19 Key Focus Areas update 4. FY20 Key Focus Areas 5. Investment checklist JB HI-FI LIMITED PAGE 2
Slide 3: 1. Trading and FY19 Outlook
1. Trading and FY19 Outlook FY191 sales update: JB HI-FI Australia Q3 FY19 total sales growth was 2.6% (Q3 FY18: 7.5%) with comparable sales growth of 1.5% (Q3 FY18: 4.3%) YTD FY19 total sales growth was 4.1% (YTD FY18: 9.8%) with comparable sales growth of 2.7% (YTD FY18: 6.7%) JB HI-FI New Zea
Slide 4: 1. Trading and FY19 Outlook
1. Trading and FY19 Outlook FY19 Outlook: The Company reaffirms its FY19 guidance with: Total Group sales to be circa $7.1 billion comprising: – JB HI-FI Australia $4.73 billion; – JB HI-FI New Zealand (NZD) $0.24 billion; and – The Good Guys $2.15 billion. Total Group NPAT to be in the range
Slide 5: 2. The Group Model
2. The Group Model A dual branded retail combination Leading retailer of technology and Leading retailer of home appliances Product offering consumer electronics and consumer electronics Target customer base / Strong position with a young tech Strong position with home-making demographic savvy demog
Slide 6: Scale
2. The Group Model 1 Scale Consistent with international experience, consolidation results in a clear leader in each key market. The benefits of scale lead to: Best in market buying terms Increased relevance to Suppliers at a global level Ability to invest in price and drive further consolidat
Slide 7: Low cost operating model
2. The Group Model 2 Low cost operating model Lowest cost of doing business (15.4%) of major Australian listed retailers and international consumer electronics retailers Low cost of doing business enables: Consistently low prices (gross margins of only ~21.5%) Ability to respond to market pr
Slide 8: Store Summary
2. The Group Model 3 Store Summary Quality store locations JB HI-FI Australia 196 JB HI-FI New Zealand 14 JB HI-FI The Good Guys 105 Total 315 High grade shopping centre, CBD and homemaker store locations High foot traffic and convenient locations Compact store size Dense displays, highly pr
Slide 9: Supplier partnerships
2. The Group Model 4 Supplier partnerships Strong and lasting partnerships with all major suppliers, scale on a global level Quality store locations provide suppliers high visibility for their product Knowledgeable staff assist to inform the customer of product benefits, particularly important
Slide 10: Multichannel capability
2. The Group Model 5 Multichannel capability Continued investment in online ensures we give consumers choice on how to transact with JB HI-FI and The Good Guys (i.e. in-store, mobile or desktop) Integrated, high quality in-store and online offer is critical as retail continues to evolve High e
Slide 11: 3. FY19 Key Focus Areas Update
3. FY19 Key Focus Areas Update Group Focus Area Update • Function established Establish a Group Merchandise function led by • Supplier benchmarking undertaken monthly to Group Merchandising Cameron Trainor as Managing Director Group identify underperformance Merchandise • Ongoing development of repo
Slide 12: 3. FY19 Update
3. FY19 Key Focus Areas Update JB HI-FI Focus Area Update Continued focus on driving sales - in-store, online and Sales • Positive YTD FY19 comparable sales commercial • New store format trialled at a number of stores Category evolution Gaming, Telco and Connected Tech • Recent store openings have i
Slide 13: 3. FY19 Update
3. FY19 Key Focus Areas Update The Good Guys Focus Area Update Continued focus on driving sales - in-store, online and Sales • Positive YTD FY19 comparable sales commercial • Connected appliances are continuing to grow and Category evolution Technology enabled Home Appliances are contributing to ASP
Slide 14: 4. FY20 Key Focus Areas
4. FY20 Key Focus Areas Group Focus Area Implementation of a Group wide entry level Television offer Group Merchandising Enhance supplier engagement Consolidate brand data and drive market insights Group Supply Chain Strategy Proof of concept trial of consolidated Big and Bulky home delivery centres
Slide 15: 4. FY20 Key Focus Areas
4. FY20 Key Focus Areas JB HI-FI Focus Area Sales Continued focus on driving sales - in-store, online and commercial Gaming – rollout of in-store gaming experience zones Category evolution Telco – partner with Telstra to create an enhanced telco offer Connected Tech – establish leading position in t
Slide 16: 4. FY20 Key Focus Areas
4. FY20 Key Focus Areas The Good Guys Focus Area Sales Continued focus on driving sales - in-store, online and commercial Connected Home Appliances - establish leading position in the market Category evolution Cooking – improve offer and in-store experience Telco – expand offering to include service
Slide 17: 5. Investment Checklist
5. Investment Checklist Unique and relevant brands Flexible business model – history of category growth and development Diversity of product categories across brands Scale operator, market leader Global best in class metrics including low cost of doing business and high sales per square metr
Slide 18: Questions
QUESTIONS JB HI-FI LIMITED PAGE 18