Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — Macquarie Australia Conference 2012
14 slides from Jb Hi-fi's conference presentation, May 2012
Slide 1: Macquarie Australia Conference May 2012
For personal use only Macquarie Australia Conference May 2012
Slide 2: Sales – signs of improvement
Sales For personal use only Sales – signs g of improvement! p Expect to achieve previously announced FY12 sales target of circa $3.1 billion. Sales growth for the March quarter FY12 for JB Hi-Fi branded stores in Australia and New Zealand was 8.8% and comparable store sales growth was +1.3%. S
Slide 3: Gross Margin – competitive environment
Gross Margin For personal use only Gross Margin g – competitive p environment Gross margin was impacted by a number of factors, primarily market-wide discounting. We believe that the high level of discounting is the result of increased tactical activity as competitors fight f for f market share,
Slide 4: Cost of Doing Business
Cost of Doing Business For personal use only Cost of Doing Business Our low cost of doing g business ((CODB)) enables us to operate p at healthy ypprofit margins g notwithstanding competitor activity. This is driven by high sales per square metre and an obsession with not letting waste and ineffic
Slide 5: Growth will continue over the long term
Growth will continue over the long term For personal use only Growth will come from multiple areas. New stores Approximately 50 stores still to open, solid pipeline of properties. Will continue our disciplined approach to selecting new stores. Major shopping districts. High foot traffic lo
Slide 6: Industry Consolidation
Industry Consolidation For personal use only JB Hi-Fi is well p positioned to benefit from industry y consolidation. Dick Smith restructure / sale Circa 100 stores to close. Business being actively marketed for sale. Approximately $1.5b sales in FY11. WOW Sight Si h & Sound S d All 15 st
Slide 7: Online – multichannel strategy is key
Online For personal use only Online – multichannel strategy gy is key! y Online and Mobile site is vital to give customers a choice on how they wish to shop with JB Hi-Fi. Focus on making transacting as easy as possible.
Slide 8: Digital
Digital For personal use only Digital strategy offers great future growth opportunities. JB HI HI-FI FI NOW was launched on 13th December 2011 2011. Mobile app has now launched and advertising of the service will now intensify. Will use digital to assist in driving physical sales via “buy no
Slide 9: Customer education and engagement
Customer education and engagement For personal use only Successful retail formats engage g g and entertain customers. The growth of online has heightened this need for differentiation. The JB model has always engaged, educated and entertained customers with our product range, merchandising and
Slide 10: Challenges may still lay ahead!
Challenges may still lay ahead! For personal use only We can’t escape the reality of the market, but we can and will continue to innovate and adapt to help mitigate any impacts impacts. Long term this will make us stronger. Sales Price deflation − Strength of dollar. − Global pricing. − Supplier
Slide 11: The JB model has many benefits versus other retail models
The JB model has many benefits versus other retail models For personal use only JB Hi-Fi is often compared to other electronic retail models around the world but there are significant differences. Unique model, high energy, engaging and entertaining retail format. Operate in high foot traffic lo
Slide 12: We will maintain our position as market leader
We will maintain our position as market leader For personal use only We have an unique model, high energy, engaging and entertaining retail format that diff differentiates ti t us and d gives i consumers a reason to t visit i it our stores. t High foot traffic and easy accessible locations (i.e.
Slide 13: Investment Checklist
INVESTMENT CHECKLIST For personal use only Strong and unique retail model. Operates mainly in the dynamic home entertainment and technology sector. Low cost of doing business – best of listed retailers. Many new store opportunities - JB Hi-Fi branded stores circa 214 (164 Tier 1 format and 5
Slide 14: Appendix I: Store movements during HY12
Appendix I For personal use only Store movements during HY12 Geographic breakdown# HY12 FY11 Opened Closed Total Australia JB - Tier 1 123 8 - 131 JB - Tier 2 16 2 ((1)) 17 139 10 (1) 148 Clive Anthonys 5 - (1) 4 144 10 (2) 152 New Zealand 1 JB - Tier 1 9 - - 9 34 JB - Tier 2 4 - - 4 13 - - 13 17 TO