Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — UBS Australian Emerging Companies Conference 2008
13 slides from Jb Hi-fi's conference presentation, October 2008
Slide 1: JB Hi-Fi Limited UBS Conference – October 2008
For personal use only JB Hi-Fi Limited UBS Conference – October 2008
Slide 2: Agenda
Agenda For personal use only 1. Performance 2. Trading Update 3. JB Model – CODB & EDLP 4. Store Update 5. Investment Case 6. Investment Checklist Richard Uechtritz CEO 2
Slide 3: 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 J
Slide 4: Strong growth in sales & earnings since MBI in July 2000
1. PERFORMANCE - TREND 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 +28% 25.8m 694m +54% 34.7m +32% 19.5m +52% 452m 61% +41% 22.8m 13.8m 356m +27% 16.7m
Slide 5: Trading Update
2. TRADING UPDATE For personal use only • The company will open 13 new stores in the first half of FY09, taking the total store network to 118 by Christmas. A further 11 stores are expected to open in the second half. The 24 stores to open in FY09 will be the biggest number of new stores that the co
Slide 6: Low CODB enables EDLP strategy
3. JB MODEL – CODB & EDLP Low CODB enables EDLP strategy For personal use only § JB has the lowest CODB of listed Consumer Electronic (CE) retailers which supports our Everyday Low Prices (EDLP) strategy 25.0% 20.0% 23.9% 22.7% 22.7% 22.1% 21.0% 15.0% 19.1% 17.1% 16.0% 15.3% 10.0% FY06 FY07 FY08 Woo
Slide 7: EDLP strategy drives EBIT margin expansion
3. JB MODEL – CODB & EDLP…. EDLP strategy drives EBIT margin expansion For personal use only § The continued reductions in our cost of doing business (CODB) has more than offset the impact that the growth of lower margin product categories has had on gross margin. As a result we have seen year on ye
Slide 8: Store Update: new stores to open in FY09
4. STORE UPDATE 24 new stores to open in FY09 For personal use only Ø 20 stores opened in FY08 § 18 JB Hi-Fi stores, 2 Clive Anthonys stores, 3 stores were relocated and 4 subscale H&S stores were closed Ø 24 stores to open in FY09 § 21 JB Hi-Fi stores: • WA: Malaga**, Cockburn*, Cannington*, Joonda
Slide 9: Store ramp up profile & maturity mix
4. STORE UPDATE…. Store ramp up profile & maturity mix For personal use only § Store Ramp Up Profile - a JB Hi-Fi store takes on average 2.5/3 years to mature, sales mature faster than earnings. § Approximately 50% of our stores are still in their maturity ramp up and with 24 new stores expected to
Slide 10: Store rollout guidance
4. STORE UPDATE…. Store rollout guidance For personal use only § Current guidance is circa 150 JB branded stores in Australia & NZ, ie stores which generate similar sales and earnings as our current stores. § The company currently has 96 JB Hi-Fi branded stores. § The company also believes there are
Slide 11: Low Debt, Strong Cashflow & Good Management
5. INVESTMENT CASE Low Debt, Strong Cashflow & Good Management For personal use only § The company has been able to fund its growth over recent years through the combination of strong levels of cashflow generated from established stores and a prudent level of borrowings. § In considering an appropri
Slide 12: Dividends & Cashflow
5. INVESTMENT CASE Dividends & Cashflow For personal use only § The total dividend for FY08 was 26.0 cents per share, an increase of 15 cents per share over the prior year. § Payout ratio of 42% in line with the target payout ratio of 40%. § The board is confident that continuing strong cashflows fr
Slide 13: Investment Checklist
6. 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)
JB Hi-Fi — UBS Australian Emerging Companies Conference 2008 on 6ix