Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — HY21 Earnings Presentation
36 slides from Jb Hi-fi's earnings presentation, Feb 15, 2021
Slide 1: JB Hi-Fi Limited HY21 Results Presentation
JB Hi-Fi Limited HY21 Results Presentation 15 AUGUST 2016 FEBRUARY 2021 PAGE 1
Slide 2: Agenda
Agenda ▪ Group overview ▪ JB HI-FI Australia and JB HI-FI New Zealand ▪ The Good Guys ▪ Group Balance Sheet and Cash Flow ▪ Group FY21 Trading Update ▪ Investment Checklist Richard Murray Nick Wells Group CEO Group CFO JB HI-FI LIMITED PAGE 2
Slide 3: Group Overview
Group Overview 15 AUGUST 2016 FEBRUARY 2021 PAGE 3
Slide 4: Group Model
Group Model Two iconic Australian retail brands 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 demograph
Slide 5: Group Model: Unique competitive advantages
Group Model Underpinned by 5 unique competitive advantages Low Cost Quality Store Supplier Multichannel 1 Scale 2 Operating Model 3 Locations 4 Partnerships 5 Capability ▪ #1 player in Australian ▪ Low CODB relative to retail JB HI-FI ▪ Strong partnerships with all ▪ Integrated, high quality in- mar
Slide 6: Group HY21 Performance
Group HY21 Performance HY21 Group Performance AUD HY21 HY20 Growth Total sales ($m) 4,941.2 3,995.2 946.1 23.7% ▲ Earnings before interest and tax ($m) 462.8 263.0 199.8 76.0% ▲ Net profit after tax ($m) 317.7 170.6 147.1 86.2% ▲ Earnings per share (basic ¢) 276.5 148.5 +128 cps 86.2% ▲ Dividend per
Slide 7: Group HY21 Performance: Divisional Performance
Group HY21 Performance HY21 Divisional Performance HY21 HY20 Growth $m % Sales ($m) - JB HI-FI Australia 3,355.7 2,722.4 633.4 23.3% ▲ - JB HI-FI New Zealand (NZD) 144.9 132.8 12.1 9.1% ▲ - The Good Guys 1,450.5 1,147.5 303.0 26.4% ▲ Total Sales (AUDm) 4,941.2 3,995.2 946.1 23.7% ▲ EBIT ($m) - JB HI
Slide 8: Group Highlights
Group Highlights Group HY21 Financial achievements Group Operational achievements ▪ Sales up 23.7% to $4.9 billion, with continued elevated ▪ The health, safety and wellbeing of our team members, customer demand for consumer electronics and home customers, business partners and the wider community a
Slide 9: Generating sustainable long-term growth
Generating sustainable long-term growth The Group is committed to having a positive impact on our people, our community and our environment Sustainability Policy focus areas HY21 Achievements ▪ Prioritised the safety of team members through Covid-19 ▪ Roll out of an updated Equal Opportunity and Wor
Slide 10: JB HI-FI Australia and New Zealand
JB HI-FI Australia and New Zealand 15 AUGUST 2016 FEBRUARY 2021 PAGE 10
Slide 11: JB HI-FI Australia HY21 Performance
JB HI-FI Australia HY21 Performance AUD HY21 HY20 Growth Sales ($m) 3,355.7 2,722.4 23.3% ▲ Gross Profit ($m) 737.4 600.8 22.7% ▲ Gross Margin (%) 21.98% 22.07% (9 bps) ▼ Cost of Doing Business (%) 10.08% 11.88% (180 bps) ▼ EBITDA ($m) 399.3 277.5 43.9% ▲ EBITDA Margin (%) 11.90% 10.19% +171 bps ▲ E
Slide 12: JB HI-FI Australia HY21 Performance: Sales
JB HI-FI Australia HY21 Performance HY21 Sales ▪ Total sales grew by 23.3% to $3.36 billion, with comparable sales Sales Growth up 24.2%. Sales momentum was strong through the half, with continued elevated customer demand for consumer electronics and home appliance products Total Comp ▪ Hardware and
Slide 13: JB HI-FI Australia HY21 Performance: Earnings
JB HI-FI Australia HY21 Performance HY21 Earnings ▪ HY21 gross profit increased by 22.7% to $737.4 million whilst gross margin Gross Profit was down 9 bps at 22.0%, driven primarily by sales mix, as a result of an acceleration of growth in lower margin technology products ▪ CODB was 10.1%, down 180
Slide 14: JB HI-FI New Zealand HY21 Performance
JB HI-FI New Zealand HY21 Performance NZD HY21 HY20 Growth Sales ($m) 144.9 132.8 9.1% ▲ Gross Profit ($m) 24.8 23.0 7.7% ▲ Gross Margin (%) 17.13% 17.36% (23 bps) ▼ Cost of Doing Business (%) 11.85% 13.02% (117 bps) ▼ EBITDA ($m) 7.6 5.8 32.7% ▲ EBITDA Margin (%) 5.28% 4.34% +94 bps ▲ 363.7% ▲ 1 EB
Slide 15: JB HI-FI New Zealand HY21 Performance: Sales and Earnings
JB HI-FI New Zealand HY21 Performance HY21 Sales Sales Growth ▪ Total sales were up 9.1% to NZD144.9 million, with comparable sales up 9.1%. The key growth categories were Visual, Games Hardware, Small Appliances and Computers Total Comp 16.8% 16.8% ▪ Online sales grew 69.2% to NZD16.3 million or 11
Slide 16: 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 FY21 Focus Areas Covid-19 ▪ Continue to prioritise the safety of team members and customers through Covid-19 ▪ Continue to adapt and respond to our customers’ changing needs Sales
Slide 17: The Good Guys
The Good Guys 15 AUGUST 2016 FEBRUARY 2021 PAGE 17
Slide 18: The Good Guys HY21 Performance
The Good Guys HY21 Performance AUD HY21 HY20 Growth Sales ($m) 1,450.5 1,147.5 26.4% ▲ Gross Profit ($m) 324.6 237.6 36.6% ▲ Gross Margin (%) 22.38% 20.71% +167 bps ▲ Cost of Doing Business (%) 10.98% 12.93% (195 bps) ▼ EBITDA ($m) 165.4 89.2 85.4% ▲ EBITDA Margin (%) 11.41% 7.78% +363 bps ▲ EBIT ($
Slide 19: The Good Guys HY21 Performance: Sales
The Good Guys HY21 Performance HY21 Sales Sales Growth ▪ Total sales grew by 26.4% to $1.45 billion, with comparable sales up Total 26.4%. Sales momentum was strong through the half, with continued 30.9% 30.9% Comp elevated customer demand for home appliance and consumer 26.4% 26.4% electronics prod
Slide 20: The Good Guys HY21 Performance: Earnings
The Good Guys HY21 Performance HY21 Earnings Gross Profit ▪ Gross profit was $324.6 million with gross margin up 167 bps to 22.4%, driven by strong improvements in key categories ▪ CODB was 11.0%, down 195bps, and in absolute terms grew 7.3% as store wages remained well controlled throughout the hal
Slide 21: 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 FY21 Focus Areas Covid-19 ▪ Continue to prioritise the safety of team members and customers through Covid-19 ▪ Continue to adapt and respond to our customers’ changing n
Slide 22: Group Balance Sheet and Cash Flow
Group Balance Sheet and Cash Flow 15 AUGUST 2016 FEBRUARY 2021 PAGE 22
Slide 23: Group Balance Sheet
Group Balance Sheet and Cash Flow Group Balance Sheet AUDm HY21 FY20 HY20 ▪ Inventory at December ended flat year on year with inventory availability improving throughout the half. Inventory turnover was up Cash 472.8 251.5 76.8 201 bps to 8.2x (HY20: 6.2x) Receivables 322.6 220.3 386.6 Inventories
Slide 24: Group Cash Flow Statement and Performance Indicators
Group Balance Sheet and Cash Flow Group Cash Flow Statement Group Performance Indicators AUDm HY21 HY20 HY21 HY20 Statutory EBITDA 571.9 372.1 Fixed Charge Ratio 3 4.2x 3.0x Change in Working Capital (34.6) (17.7) Interest Cover 3 217.5x 46.0x Net Interest Paid on Borrowings (1.0) (4.8) Gearing Rati
Slide 25: Capital Management
Group Balance Sheet and Cash Flow Capital Management HY21 dividend up 81.8% to 180 cps ▪ The interim dividend is 180 cents per share (cps) fully franked, up 81 cps or 81.8%, and represents 65% of NPAT 90 ▪ The Board will continue to regularly review the Company’s Final capital structure with a focus
Slide 26: FY21 Trading Update
FY21 Trading Update 15 AUGUST 2016 FEBRUARY 2021 PAGE 26
Slide 27: Group FY21 Trading Update
Group FY21 Trading Update January 2021 sales update and outlook ▪ Total sales growth for JB HI-FI Australia was 17.3% (January 2020: 6.5%) with comparable sales growth of 18.6% (January 2020: 6.0%) ▪ Total sales growth for JB HI-FI New Zealand was 21.7% (January 2020: -1.6%) with comparable sales gr
Slide 28: Investment Checklist
Investment Checklist 15 AUGUST 2016 FEBRUARY 2021 PAGE 28
Slide 29: Investment Checklist
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 metre
Slide 30: Appendices
Appendices 15 AUGUST 2016 FEBRUARY 2021 PAGE 30
Slide 31: Appendix I: Group Profit and Loss
Appendix I a) Group Profit and Loss AUDm HY21 HY20 HY19 HY18 HY171. (Pre AASB16) (Pre AASB16) (Pre AASB16) Sales 4,941.2 3,995.2 3,843.7 3,689.8 2,616.2 Gross Profit 1,085.2 860.2 828.0 793.9 571.1 Gross Margin 21.96% 21.53% 21.54% 21.52% 21.83% EBITDA 571.9 372.1 264.3 256.3 203.9 Depreciation & Im
Slide 32: Appendix I: Group CODB reconciliation
Appendix I b) Group CODB reconciliation AUDm HY21 HY20 Other income (ex interest revenue) (1.0) (0.8) Sales and marketing expenses 433.9 407.3 Occupancy expenses 146.1 149.4 less depreciation, amortisation & impairment (103.7) (104.6) Administration expenses 21.0 21.3 less depreciation & impairment
Slide 33: Appendix I: Group Balance Sheet
Appendix I c) 5 year Group Balance Sheet AUDm HY21 HY20 HY19 HY18 HY17 (Pre AASB16) (Pre AASB16) (Pre AASB16) Cash 472.8 76.8 117.1 182.7 124.5 Receivables 322.6 386.6 311.2 302.2 257.5 Inventories 1,135.4 1,132.3 1,076.4 986.7 898.1 Other 35.4 37.6 41.2 45.3 47.5 Total Current Assets 1,966.2 1,633.
Slide 34: Appendix I: Group Cash Flow
Appendix I d) 5 year Group Cash Flow AUDm HY21 HY20 HY19 HY18 HY17 (Pre AASB16) (Pre AASB16) (Pre AASB16) Statutory EBITDA 571.9 372.1 264.3 256.3 188.5 Change in Working Capital (34.6) (17.7) 84.5 179.3 117.0 Net Interest Paid on Borrowings (1.0) (4.8) (6.5) (8.5) (0.1) Interest on lease liabilitie
Slide 35: Appendix II: Group Profit and Loss Breakdown
Appendix II e) Group Profit and Loss – Breakdown HY21 HY20 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 3,355.7 144.9 1,450.5 4,941.2 2,722.4 132.8 1,147.5 3,995.2 23.7% ▲ Gross Profit 737.4 24.8 324.6 1,085.2 600.8 23.0 237.6 860.2 26.2% ▲ Gr
Slide 36: Appendix III: Store reconciliation
Appendix III 1 316 stores across Australia and New Zealand Group store reconciliation HY21 FY20 Opened Converted Closed Total 1 Australia JB HI-FI 138 - - - 138 2 JB HI-FI HOME 59 - - - 59 23 197 - - - 197 New Zealand 14 39 JB HI-FI 14 - - - 14 JB HI-FI HOME - - - - - 22 5 14 - - - 14 JB HI-FI TOTAL