Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — H1 2023 Earnings Presentation
39 slides from Jb Hi-fi's earnings presentation, Feb 13, 2023
Slide 1: HY23 Results Presentation
rsonal use only JB Hi-Fi Limited HY23 Results Presentation JB HI-FI LIMITED
Slide 2: Agenda
Agenda 1. Group Overview rsonal use only 2. JB HI-FI Australia 3. JB HI-FI New Zealand 4. The Good Guys 5. Group Balance Sheet and Cash Flow 6. Group FY23 Trading Update 7. Group Focus Areas 8. 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
Group Model Two iconic 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 Strong pos
Slide 5: Group Model: Key Competitive Advantages
Group Model Underpinned by 4 key competitive advantages rsonal use only 1 Scale 2 Low Cost Operating Model 3 Multi-channel Capability 4 People and Culture ▪ #1 player in Australian Consumer ▪ Constant focus on productivity and ▪ Focus on providing the customer with an ▪ Knowledgeable and passionate
Slide 6: 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 HY23 Achievements Our People ▪ Continued to action a set of Diversity and Inclusion initiatives, to improve di
Slide 7: Group HY23 Performance
Group HY23 Performance HY23 Group Performance rsonal use only AUD HY23 HY22 Growth Total sales ($m) 5,278.5 4,861.8 416.7 8.6% ▲ Earnings before interest and tax ($m) 479.2 420.5 58.7 14.0% ▲ Net profit after tax ($m) 329.9 287.9 42.1 14.6% ▲ Earnings per share (basic ¢) 301.8 250.6 +51 cps 20.4% ▲
Slide 8: Group HY23 Divisional Performance
Group HY23 Performance HY23 Divisional Performance rsonal use only HY23 HY22 Growth $m % Sales ($m) - JB HI-FI Australia 3,588.8 3,290.5 298.3 9.1% ▲ - JB HI-FI New Zealand (NZD) 160.6 138.4 22.3 16.1% ▲ - The Good Guys 1,544.0 1,439.4 104.6 7.3% ▲ Total Sales (AUDm) 5,278.5 4,861.8 416.7 8.6% ▲ EBI
Slide 9: JB HI-FI Australia
rsonal use only 2. JB HI-FI Australia
Slide 10: JB HI-FI Australia HY23 Performance
JB HI-FI Australia HY23 Performance rsonal use only AUD HY23 HY22 Growth Sales ($m) 3,588.8 3,290.5 9.1% ▲ Gross Profit ($m) 820.0 716.3 14.5% ▲ Gross Margin (%) 22.85% 21.77% +108 bps ▲ Cost of Doing Business (%) 11.36% 10.79% +58 bps ▲ EBITDA ($m) 412.2 361.4 14.1% ▲ EBITDA Margin (%) 11.49% 10.98
Slide 11: JB HI-FI Australia HY23 Sales
JB HI-FI Australia HY23 Performance HY23 Sales rsonal use only TOTAL SALES GROWTH BY QUARTER ▪ Total sales increased by 9.1% to $3.59 billion, with comparable sales up 8.5%. As compared to pre Covid HY20, total sales were up 31.8% vs HY22 vs HY20 ▪ Hardware and Services1 sales were up 9.2%, with com
Slide 12: JB HI-FI Australia HY23 Earnings
JB HI-FI Australia HY23 Performance HY23 Earnings GROSS MARGIN (%) rsonal use only ▪ Gross profit increased by 14.5% to $820.0 million with gross margin up 108 bps to 22.8%, driven by improvements in key product and service categories and positive sales mix ▪ CODB was 11.4%, up 58 bps. As compared t
Slide 13: JB HI-FI New Zealand
rsonal use only 3. JB HI-FI New Zealand
Slide 14: JB HI-FI New Zealand HY23 Performance
JB HI-FI New Zealand HY23 Performance rsonal use only NZD HY23 HY22 Growth Sales ($m) 160.6 138.4 16.1% ▲ Gross Profit ($m) 25.9 24.2 7.0% ▲ Gross Margin (%) 16.12% 17.49% (137 bps) ▼ Cost of Doing Business (%) 12.56% 12.16% +40 bps ▲ EBITDA ($m) 5.7 7.4 (22.5%) ▼ EBITDA Margin (%) 3.56% 5.33% (177
Slide 15: JB HI-FI New Zealand HY23 Sales
JB HI-FI New Zealand HY23 Performance HY23 Sales rsonal use only TOTAL SALES GROWTH BY QUARTER ▪ Total sales increased by 16.1% to NZD160.6 million, with comparable sales up 16.1%. As compared to pre Covid HY20, 27.7% vs HY22 total sales were up 21.0% vs HY20 23.9% ▪ Hardware and Services1 sales wer
Slide 16: JB HI-FI New Zealand HY23 Earnings
JB HI-FI New Zealand HY23 Performance HY23 Earnings GROSS MARGIN (%) rsonal use only ▪ Gross profit increased by 7.0% to NZD25.9 million with gross margin down 137 bps to 16.1%, driven by price competitiveness in key categories and negative sales mix ▪ CODB was 12.6%, up 40 bps. As compared to pre C
Slide 17: The Good Guys
rsonal use only 4. The Good Guys
Slide 18: The Good Guys HY23 Performance
The Good Guys HY23 Performance rsonal use only AUD HY23 HY22 Growth Sales ($m) 1,544.0 1,439.4 7.3% ▲ Gross Profit ($m) 358.4 324.9 10.3% ▲ Gross Margin (%) 23.21% 22.58% +64 bps ▲ Cost of Doing Business (%) 11.87% 11.42% +45 bps ▲ EBITDA ($m) 175.2 160.5 9.1% ▲ EBITDA Margin (%) 11.35% 11.15% +19 b
Slide 19: The Good Guys HY23 Sales
The Good Guys HY23 Performance HY23 Sales rsonal use only TOTAL SALES GROWTH BY QUARTER ▪ Total sales increased by 7.3% to $1.54 billion, with comparable vs HY22 sales up 7.3%. As compared to pre Covid HY20, total sales were vs HY20 up 34.6% 38.8% 34.6% ▪ The key growth categories were Refrigeration
Slide 20: The Good Guys HY23 Earnings
The Good Guys HY23 Performance HY23 Earnings GROSS MARGIN (%) rsonal use only ▪ Gross profit increased by 10.3% to $358.4 million with gross margin up 64 bps to 23.2% driven by improvements in key categories and positive sales mix ▪ CODB was 11.9%, up 45 bps. As compared to pre Covid HY20, 22.4% 22.
Slide 21: Group Balance Sheet and Cash Flow
rsonal use only 5. Group Balance Sheet And Cash Flow
Slide 22: Group Balance Sheet
Group Balance Sheet and Cash Flow Group Balance Sheet rsonal use only AUDm HY23 FY22 HY22 ▪ Inventory was $1.21 billion, up 13.8% year on year, as inventory availability improved following Covid-19 related supply shortages Cash 391.2 125.6 844.5 Receivables 174.3 132.6 133.1 in HY22. As compared to
Slide 23: Group Cash Flow Statement and Performance Indicators
Group Balance Sheet and Cash Flow Group Cash Flow Statement Group Performance Indicators rsonal use only AUDm HY23 HY22 HY23 HY22 EBITDA 592.6 529.0 Fixed Charge Ratio 3 5.0x 4.4x Change in Working Capital 208.1 482.3 Interest Cover 3 436.2x 621.7x Net Interest 0.8 (0.1) Gearing Ratio 3 0.0 0.0 Inte
Slide 24: Capital Management
Group Balance Sheet and Cash Flow Capital Management HY23 DIVIDEND UP 20.9% TO 197 CPS rsonal use only ▪ The interim dividend is 197 cents per share (cps) fully franked, up 34 cps or 20.9% and represents 65% of NPAT ▪ The record date for the interim dividend is 24 February 2023, with payment to be m
Slide 25: Group FY23 Trading Update
rsonal use only 6. Group FY23 Trading Update
Slide 26: January 2023 sales update
Group FY23 Trading Update January 2023 sales update rsonal use only ▪ The Group provides the following sales update for the period 1 January 2023 to 31 January 2023 JANUARY TOTAL SALES GROWTH 43.4% vs Jan FY22 ▪ Total sales growth for JB HI-FI Australia was 2.5% (January 2022: 4.3%) with vs Jan FY20
Slide 27: Group Focus Areas
rsonal use only 7. Group Focus Areas
Slide 28: Group Focus Areas
Group Focus Areas The Group continues to leverage and evolve its unique offer and capabilities rsonal use only Group Focus areas HY23 Achievements Multi-channel ▪ 4 new stores opened in HY23 including smaller curated range JB Hi-Fi stores in Parkmore (VIC) and the Gold Coast International Airport ▪
Slide 29: Group Focus Areas
Group Focus Areas The Group continues to leverage and evolve its unique offer and capabilities rsonal use only Group Focus areas HY23 Achievements New Zealand ▪ Successful transition to new MD and investment in key hires to strengthen local capability ▪ Strengthening local team capability ▪ Increase
Slide 30: Investment Checklist
rsonal use only 8. Investment Checklist
Slide 31: Investment Checklist
Investment Checklist rsonal use only Unique team culture and unrivalled Unique and relevant brands customer service Flexible business model – history of Multi-channel capability built around high quality store category growth and development portfolio Diverse and resilient product categories
Slide 32: Appendices
ppendices <x Ajuo asn jeuosia
Slide 33: Appendix I: Group Profit and Loss
Appendix I a) Group Profit and Loss rsonal use only AUDm HY23 HY22 HY21 HY20 HY19 (Pre AASB16) Sales 5,278.5 4,861.8 4,941.2 3,995.2 3,843.7 Gross Profit 1,201.8 1,064.4 1,085.2 860.2 828.0 Gross Margin 22.77% 21.89% 21.96% 21.53% 21.54% EBITDA 592.6 529.0 571.9 372.1 264.3 Depreciation & Impairment
Slide 34: Appendix I: Group CODB reconciliation
Appendix I b) Group CODB reconciliation rsonal use only AUDm HY23 HY22 HY21 HY20 HY19 (P re AAS B 16 ) Other income (ex interest revenue) (1.6) (1.8) (1.0) (0.8) (0.7) Sales and marketing expenses 504.5 448.3 433.9 407.3 391.6 Occupancy expenses 160.0 148.5 146.1 149.4 151.4 less depreciation, amort
Slide 35: Appendix I: Group Balance Sheet
Appendix I c) 5 year Group Balance Sheet rsonal use only AUDm HY23 HY22 HY21 HY20 HY19 (Pre AASB16) Cash 391.2 844.5 472.8 76.8 117.1 Receivables 174.3 133.1 322.6 386.6 311.2 Inventories 1,211.4 1,064.8 1,135.4 1,132.3 1,076.4 Other 37.2 32.0 35.4 37.6 41.2 Total Current Assets 1,814.1 2,074.4 1,96
Slide 36: Appendix I: Group Cash Flow
Appendix I d) 5 year Group Cash Flow rsonal use only AUDm HY23 HY22 HY21 HY20 HY19 (Pre AASB16) EBITDA 592.6 529.0 571.9 372.1 264.3 Change in Working Capital 208.1 482.3 (34.6) (17.7) 84.5 Net Interest 0.8 (0.1) (1.0) (4.8) (6.5) Interest on lease liabilities (9.4) (9.7) (11.1) (12.8) - Income Tax
Slide 37: Appendix II: Group Profit and Loss – Breakdown
Appendix II Group Profit and Loss – Breakdown rsonal use only HY23 HY22 JB HI-FI JB HI-FI JB HI-FI JB HI-FI Growth TGG Group TGG Group AUDm AUST NZ (NZD) AUST NZ (NZD) Sales 3,588.8 160.6 1,544.0 5,278.5 3,290.5 138.4 1,439.4 4,861.8 8.6% ▲ Gross Profit 820.0 25.9 358.4 1,201.8 716.3 24.2 324.9 1,06
Slide 38: Appendix III: Group store reconciliation
Appendix III 322 stores across Australia and New Zealand1 Group store reconciliation rsonal use only HY23 FY22 Opened Converted Closed Total Australia 1 JB HI-FI 139 2 1 (1) 141 2 JB HI-FI HOME 60 2 (1) - 61 23 199 4 - (1) 202 14 40 New Zealand JB HI-FI 14 - - - 14 23 JB HI-FI HOME - - - - - 5 14 -
Slide 39: 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, 13th February 2023. It is information given in summary form and does