Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — FY2021 Earnings Presentation
39 slides from Jb Hi-fi's earnings presentation, August 2021
Slide 1: FY21 Results Presentation
rsonal use only JB Hi-Fi Limited FY21 Results Presentation JB HI-FI LIMITED
Slide 2: Agenda
Agenda 1. Group CEO Transition rsonal use only 2. Group Overview 3. JB HI-FI Australia and JB HI-FI New Zealand 4. The Good Guys 5. Group Balance Sheet and Cash Flow 6. Group FY22 Trading Update 7. Investment Checklist Terry Smart Nick Wells Incoming Group CEO Group CFO JB HI-FI LIMITED PAGE 2
Slide 3: Group CEO Transition Update
rsonal use only 1. Group CEO Transition Update
Slide 4: Group CEO Transition
Group CEO Transition ▪ As previously announced: rsonal use only ▪ Richard Murray to leave JB HI-FI for a new role; ▪ Terry Smart to succeed Richard Murray as Group Chief Executive Officer; ▪ Nick Wells, the Group’s Chief Financial Officer, will join the Board as an Executive Director; and ▪ Biag Cap
Slide 5: Group Overview
rsonal use only 2. Group Overview
Slide 6: Group Model
Group Model Two iconic Australian retail brands rsonal use only Leading retailer of technology and Leading retailer of home appliances Product offering consumer electronics and consumer electronics Strong position with a young tech- Strong position with home-making Target customer base / demographic
Slide 7: Group Model: Unique competitive advantages
Group Model Underpinned by 5 unique competitive advantages rsonal use only 1 Scale 2 Low Cost Operating Model 3 Quality Store Locations ▪ #1 player in Australian market with opportunity ▪ Low CODB relative to retail peers driven by: JB HI-FI for further consolidation ▪ Productive floor space with hi
Slide 8: Generating sustainable long-term growth
Generating sustainable long-term growth The Group today released its FY21 Sustainability Report, outlining our commitment to having a positive impact on our people, our community and our environment rsonal use only Sustainability Policy focus areas FY21 Achievements Our People & Culture ▪ Prioritise
Slide 9: Group FY21 Performance
Group FY21 Performance FY21 Group Performance rsonal use only AUD FY21 FY20 Growth Total sales ($m) 8,916.1 7,918.9 997.2 12.6% ▲ Earnings before interest and tax ($m) 743.1 483.3 259.8 53.8% ▲ Net profit after tax ($m) 506.1 302.3 203.8 67.4% ▲ Earnings per share (basic ¢) 440.8 263.1 +178 cps 67.5
Slide 10: FY21 Divisional Performance
Group FY21 Performance FY21 Divisional Performance rsonal use only FY21 FY20 Growth $m % Sales ($m) - JB HI-FI Australia 5,956.8 5,318.9 638.0 12.0% ▲ - JB HI-FI New Zealand (NZD) 261.6 222.8 38.8 17.4% ▲ - The Good Guys 2,715.7 2,388.8 326.9 13.7% ▲ Total Sales (AUDm) 8,916.1 7,918.9 997.2 12.6% ▲
Slide 11: Group Highlights
Group Highlights rsonal use only 1. ScaleGroup FY21 Financial achievements Group Operational achievements ▪ Sales up 12.6% to $8.9 billion, with continued heightened ▪ The health, safety and wellbeing of our team members, customer demand for consumer electronics and home customers, business partners
Slide 12: JB HI-FI Australia and New Zealand
rsonal use only 3. JB HI-FI Australia and New Zealand
Slide 13: JB HI-FI Australia FY21 Performance
JB HI-FI Australia FY21 Performance rsonal use only AUD FY21 FY20 Growth Sales ($m) 5,956.8 5,318.9 12.0% ▲ Gross Profit ($m) 1,325.2 1,169.0 13.4% ▲ Gross Margin (%) 22.25% 21.98% +27 bps ▲ Cost of Doing Business (%) 11.19% 12.10% (91 bps) ▼ EBITDA ($m) 658.5 525.6 25.3% ▲ EBITDA Margin (%) 11.06%
Slide 14: JB HI-FI Australia FY21 Sales
JB HI-FI Australia FY21 Performance FY21 Sales TOTAL SALES GROWTH rsonal use only ▪ Total sales grew by 12.0% to $5.96 billion, with comparable sales up 13.0%. Sales momentum was strong through the year, with 33.1% heightened customer demand for consumer electronics and home 27.3% 27.1% appliance pr
Slide 15: JB HI-FI Australia FY21 Earnings
JB HI-FI Australia FY21 Performance FY21 Earnings EBIT $ rsonal use only ▪ FY21 gross profit increased by 13.4% to $1.33 billion whilst gross margin was up 27 bps at 22.2%, driven by strong improvements in key categories ▪ CODB was 11.2%, down 91 bps. CODB in absolute terms grew 3.6% with discipline
Slide 16: JB HI-FI New Zealand FY21 Performance
JB HI-FI New Zealand FY21 Performance rsonal use only NZD FY21 FY20 Growth Sales ($m) 261.6 222.8 17.4% ▲ Gross Profit ($m) 46.6 36.8 26.6% ▲ Gross Margin (%) 17.83% 16.54% +129 bps ▲ Cost of Doing Business (%) 13.12% 14.21% (109 bps) ▼ EBITDA ($m) 12.3 5.2 137.5% ▲ EBITDA Margin (%) 4.70% 2.32% +23
Slide 17: JB HI-FI New Zealand FY21 Sales
JB HI-FI New Zealand FY21 Performance FY21 Sales TOTAL SALES GROWTH rsonal use only ▪ Total sales were up 17.4% to NZD261.6 million, with comparable sales up 17.4%. 46.9% ▪ Hardware and Services1 sales were up 18.3%, with comparable sales up 18.3% driven by the Computers, Visual, Communications, Gam
Slide 18: JB HI-FI New Zealand FY21 Earnings
JB HI-FI New Zealand FY21 Performance FY21 Earnings STATUTORY rsonal use only UNDERLYING ▪ Gross margin was up 129 bps to 17.8% EBIT NZD $6.0m ▪ CODB was 13.1%, down 109 bps, and in absolute terms grew by 8.4% as store wages remained well controlled $5.8m ▪ EBITDA was NZD12.3 million, up 137.5%, dri
Slide 19: JB HI-FI Australia and New Zealand Focus Areas
JB HI-FI Australia and New Zealand Focus Areas JB HI-FI continues to execute well, whilst positioning for future growth rsonal use only FY22 Focus Areas • Continue to prioritise the safety of team members and customers through Covid-19 Covid-19 • Continue to adapt and respond to our customers’ chang
Slide 20: The Good Guys
rsonal use only 4. The Good Guys
Slide 21: The Good Guys FY21 Performance
The Good Guys FY21 Performance rsonal use only AUD FY21 FY20 Growth Sales ($m) 2,715.7 2,388.8 13.7% ▲ Gross Profit ($m) 608.6 490.2 24.2% ▲ Gross Margin (%) 22.41% 20.52% +189 bps ▲ Cost of Doing Business (%) 11.67% 12.67% (100 bps) ▼ EBITDA ($m) 291.7 187.4 55.6% ▲ EBITDA Margin (%) 10.74% 7.85% +
Slide 22: The Good Guys FY21 Sales
The Good Guys FY21 Performance FY21 Sales TOTAL SALES GROWTH rsonal use only ▪ Total sales grew by 13.7% to $2.72 billion, with comparable sales up 13.7%. Sales momentum was strong through the year, with 30.9% 30.2% heightened customer demand for home appliance and consumer 28.3% 26.6% 26.4% electro
Slide 23: The Good Guys FY21 Earnings
The Good Guys FY21 Performance FY21 Earnings EBIT $ rsonal use only ▪ Gross profit was $608.6 million with gross margin up 189 bps to 22.4%, driven by strong improvements in key categories ▪ CODB was 11.7%, down 100bps, and in absolute terms grew 4.7% as store wages remained well controlled througho
Slide 24: The Good Guys Focus Areas
The Good Guys Focus Areas The Good Guys continues to leverage its unique offer and capabilities with opportunities for improvement rsonal use only FY22 Focus Areas ▪ Continue to prioritise the safety of team members and customers through Covid-19 Covid-19 ▪ Continue to adapt and respond to our custo
Slide 25: Group Balance Sheet and Cash Flow
rsonal use only 5. Group Balance Sheet And Cash Flow
Slide 26: Group Balance Sheet and Cash Flow
Group Balance Sheet and Cash Flow Group Balance Sheet INVENTORY rsonal use only AUDm FY21 FY20 FY19 (Pre AASB 16) Cash 263.2 251.5 119.2 Receivables 211.6 220.3 254.4 Inventories 938.8 739.3 886.7 $860m $891m $887m $939m Other 35.7 34.7 34.6 $739m Total Current Assets 1,449.3 1,245.8 1,294.9 Fixed A
Slide 27: Group Cash Flow Statement and Performance Indicators
Group Balance Sheet and Cash Flow Group Cash Flow Statement Group Performance Indicators rsonal use only AUDm FY21 FY20 FY19 FY21 FY20 FY19 (Pre AASB 16) EBITDA 961.6 718.0 429.1 Fixed Charge Ratio 3 4.6x 3.4x 3.0x Change in Working Capital (241.0) 402.1 (16.9) Interest Cover 3 228.4x 40.4x 26.1x Ne
Slide 28: Capital Management
Group Balance Sheet and Cash Flow rsonal use only Capital Management TOTAL DIVIDEND UP 51.9% TO 287 CPS ▪ The final dividend is 107 cents per share (cps) fully franked, up 17 cps or 18.9%, bringing the total dividend for FY21 to 287 cps, up 98 cps or 51.9%, and representing 65% of NPAT ▪ The Board w
Slide 29: FY22 Trading Update
rsonal use only 6. FY22 Trading Update
Slide 30: Group FY22 Trading Update
Group FY22 Trading Update FY22 YTD sales update and outlook rsonal use only ▪ The Group provides the following FY22 YTD sales update, for the period 1 July 2021 to 15 August 2021: Comparable Total Sales Growth FY22 YTD vs FY21 vs FY20 vs FY21 vs FY20 JB HI-FI Australia (14.9%) 19.4% (14.6%) 19.1% JB
Slide 31: Investment Checklist
rsonal use only 7. Investment Checklist
Slide 32: Investment Checklist
Investment Checklist rsonal use only High quality store portfolio and Unique and relevant brands unrivalled customer service Flexible business model – history of Multichannel capability category growth and development Diversity of product categories across brands Experienced management tea
Slide 33: Appendices
ppendices <x Ajuo asn jeuosia
Slide 34: Appendix I: Group Profit and Loss
Appendix I a) Group Profit and Loss rsonal use only AUDm FY21 FY20 FY19 FY18 FY171. (Pre AASB16) (Pre AASB16) (Pre AASB16) Sales 8,916.1 7,918.9 7,095.3 6,854.3 5,628.0 Gross Profit 1,977.2 1,694.1 1,527.1 1,470.3 1,230.5 Gross Margin 22.18% 21.39% 21.52% 21.45% 21.86% EBITDA 961.6 718.0 429.1 411.7
Slide 35: Appendix I: Group CODB reconciliation
Appendix I b) Group CODB reconciliation rsonal use only AUDm FY21 FY20 Other income (ex interest revenue) (1.3) (2.5) Sales and marketing expenses 845.8 809.2 Occupancy expenses 293.6 313.7 less depreciation, amortisation & impairment (207.6) (224.1) Administration expenses 41.3 41.7 less depreciati
Slide 36: Appendix I: Group Balance Sheet
Appendix I c) 5 year Group Balance Sheet rsonal use only AUDm FY21 FY20 FY19 FY18 FY17 (Pre AASB16) (Pre AASB16) (Pre AASB16) Cash 263.2 251.5 119.2 72.0 72.8 Receivables 211.6 220.3 254.4 204.7 193.6 Inventories 938.8 739.3 886.7 891.1 859.7 Other 35.7 34.7 34.6 42.7 41.4 Total Current Assets 1,449
Slide 37: Appendix I: Group Cash Flow
Appendix I d) 5 year Group Cash Flow rsonal use only AUDm FY21 FY20 FY19 FY18 FY17 (Pre AASB16) (Pre AASB16) (Pre AASB16) EBITDA 961.6 718.0 429.1 411.7 337.9 Change in Working Capital (241.0) 402.1 (16.9) (6.6) (52.7) Net Interest Paid on Borrowings (1.7) (10.4) (13.1) (14.5) (7.6) Interest on leas
Slide 38: Appendix II: Group Profit and Loss Breakdown
Appendix II e) Group Profit and Loss – Breakdown rsonal use only FY21 FY20 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 5,956.8 261.6 2,715.7 8,916.1 5,318.9 222.8 2,388.8 7,918.9 12.6% ▲ Gross Profit 1,325.2 46.6 608.6 1,977.2 1,169.0 36.8 49
Slide 39: Appendix III: Group store reconciliation
Appendix III 316 stores across Australia and New Zealand1 Group store reconciliation rsonal use only FY21 FY20 Opened Converted Closed Total 1 Australia 2 JB HI-FI 138 1 (1) (1) 137 23 JB HI-FI HOME 59 - 1 - 60 14 39 197 1 - (1) 197 22 New Zealand 5 JB HI-FI 14 - - - 14 JB HI-FI HOME - - - - - 10 30