Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — FY2008 Earnings Presentation
16 slides from Jb Hi-fi's earnings presentation, Aug 19, 2008
Slide 1: Full Year Results Presentation – June 2008
For personal use only JB Hi-Fi Limited Full Year Results Presentation – June 2008 19 August 2008
Slide 2: Agenda
Agenda For personal use only 1. Performance 2. Historical Performance 3. Trading Update 4. Financial Detail 5. Dividends 6. Store Update 7. Investment Checklist Richard Uechtritz Richard Murray CEO CFO 2
Slide 3: Performance: Strong performance for 12 months to 30 June 2008
1. PERFORMANCE Strong performance for 12 months to 30 June 2008 For personal use only FY08 Growth q Sales $1.83b 42.7% Û q Comparable store sales growth 15.3% q EBIT Margin 5.6% +48 bps Û q NPAT $65.1m 61.1% Û q Earnings per share 61.8 cps 59.3% Û q Total dividend - fully franked 26.0 cps 136.0% Û (
Slide 4: Historical Performance: Strong growth in sales & earnings since MBI in July 2000
2. HISTORICAL PERFORMANCE Strong growth in sales & earnings since MBI in July 2000 For personal use only SALES +43% EBIT +56% NPAT +61% 1.83b 102.3m 65.1m +43% +56% +61% 1.28b +36% 65.5m 40.4m +47% +57% 946m +36% 44.5m 694m +28% 25.8m +54% 34.7m +32% +52% 19.5m 452m 61% +41% 22.8m 13.8m 356m +27% 16
Slide 5: Trading Update: Trading Performance
3. TRADING UPDATE For personal use only Trading Performance § Strong result is very pleasing – the company has traded well through the softest retail climate for many years. § Again demonstrates how strong and resilient the JB model is. § Home entertainment showing signs of being a more staple purch
Slide 6: Trading Update: Australia and New Zealand
3. TRADING UPDATE …. For personal use only Australia § Sales grew 37.7% to $1.7b with comparable store sales up 16.5%. § Gross margin at 22.2% was consistent with FY07 (22.2%), pleasing given the growth of newer lower margin categories. § Cost of doing business down 95 bps to 15.0%. § Mobile consume
Slide 7: Trading Update: Trading Outlook
3. TRADING UPDATE …. For personal use only Trading Outlook § Comparable store sales growth YTD for FY09 was 19.2%. § Games, Computers/IT and Visual continue to drive significant comparable store sales. § Underlying comparable store sales growth (ie excluding games and computers) still remains solid
Slide 8: Financial Detail: Profit and Loss Statement
4. FINANCIAL DETAIL Profit and Loss Statement For personal use only AUST NZ CONSOLIDATED $AUDm FY08 FY07 Growth FY08 FY08 FY07 Growth Sales 1,735.1 1,259.9 37.7% 93.5 1,828.6 1,281.8 42.7% Gross Profit 384.6 279.1 37.8% 15.1 399.7 283.4 41.1% Gross Margin 22.2% 22.2% +1 bps 16.2% 21.9% 22.1% -25 bps
Slide 9: Financial Detail: Balance Sheet
4. FINANCIAL DETAIL…. Balance Sheet For personal use only $m FY08 FY07 Movement Cash - 23.7 (23.7) Receivables 53.0 45.2 7.8 Inventories 271.9 211.2 60.7 Other Current Assets 5.3 3.5 1.8 Total Current Assets 330.2 283.6 46.6 Fixed Assets 112.9 80.1 32.8 Brandname & Goodwill 81.2 80.7 0.5 Other Non-C
Slide 10: Financial Detail: Cashflow Statement
4. FINANCIAL DETAIL…. Cashflow Statement For personal use only $m FY08 FY07 EBITDA 117.0 76.4 Change in Working Capital (44.8) 5.6 Net Interest Paid (8.9) (7.1) Income Tax Paid (28.0) (15.2) Other non cash items 7.1 4.4 Net Cashflow from Operations 42.4 64.0 Purchases of P&E (51.3) (34.3) Investment
Slide 11: Financial Detail: Working capital and key ratios
4. FINANCIAL DETAIL…. Working capital and key ratios: For personal use only $m FY08 FY07 (Increase)/Decrease in current assets § Inventory turnover has improved to 5.9 Inventory (59.5) (42.6) times (FY07: 5.4 times). Receivables (4.9) (14.3) Other current assets (1.8) (0.6) § Like for like inventory
Slide 12: Dividends
5. DIVIDENDS For personal use only § The full year dividend has been increased 10 cents to 16.0 cents per share fully franked. § This brings the total dividends for FY08 to 26.0 cents per share, an increase of 15 cents per share over the prior year. 26.0cps § Payout ratio of 42% in line with the tar
Slide 13: Store Update: stores opened in FY08
6. STORE UPDATE 20 stores opened in FY08 For personal use only Ø 18 JB Hi-Fi stores were opened during FY08: • NSW: Rouse Hill, Westfield Kotara, Westpoint Blacktown, Westfield Parramatta, Strand Arcade • QUEENSLAND: Toowoomba, Westfield Strathpine, Townsville • VICTORIA: Epping Plaza, Westfield Don
Slide 14: Store Update: new stores to open in FY09
6. STORE UPDATE…. 24 new stores to open in FY09 For personal use only Ø 21 JB Hi-Fi stores expected be opened during FY09: • NSW: Albury, Tweed Heads, undisclosed (Syd.), Pagewood (Syd.), Penrith (Syd.) • QUEENSLAND: Morayfield, North Lakes (Bris.), Cairns, Rockhampton • VICTORIA: Bendigo • WA: Mala
Slide 15: Investment Checklist
7. INVESTMENT CHECKLIST For personal use only P Strong and unique retail model. P Operates mainly in high growth home entertainment and technology sector. P Low cost of doing business – best of listed retailers. P Many new store opportunities - JB circa 150 in Australia and New Zealand (90 end FY08)
Slide 16: Appendix I: Store movements during FY08 and geographic breakdown
APPENDIX I For personal use only Store movements during FY08 Geographic breakdown FY08 FY07 Opened Closed Total AUSTRALIA JB Hi-Fi 71 14 - 85 Clive Anthonys 6 2 - 8 77 16 - 93 1 NEW ZEALAND JB Hi-Fi 1 4 - 5 21 Hill & Stewart 11 - 4 7 6 12 4 4 12 89 105 6 20 4 29 Store Format: Shopping centres 39 12