Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — H1 FY2015 Earnings Presentation
21 slides from Jb Hi-fi's earnings presentation, Feb 2, 2015
Slide 1: Half Year Results Presentation 31 December 2014
For personal use only JB Hi-Fi Limited Half Year Results Presentation 31 December 2014 2 February 2015
Slide 2: Agenda
AG E N DA For personal use only 1. HY15 Highlights 2. Profit and Loss Statement 3. Trading Performance 4. Store Update 5. In Store 6. Out of Store 7. Cash Flow and Balance Sheet 8. Capital Management 9. Trading Outlook 10. Growth Opportunities Richard Murray Nick Wells CEO CFO
Slide 3: HY15 Highlights
1. h Y 1 5 HI G HL I G HTS For personal use only Ø Total sales up 1.3% Ø Comparable sales down 0.7% Ø Gross profit up 1.8% and gross margin up 11 bps Ø NPAT down 1.9% Ø EPS down 1.2% Ø Interim dividend up 7.3% to 59.0 cps 3
Slide 4: Profit and Loss Statement
2 . P R OF I T A N D L OS S S TAT E ME N T For personal use only AUST NZ (NZD) CONSOLIDATED $m HY14 HY15 Growth HY14 HY15 Growth HY14 HY15 Growth Sales 1,836.0 1,862.1 1.4% 118.0 113.0 (4.3%) 1,939.9 1,965.1 1.3% Û Gross Profit 401.3 408.7 1.8% 20.7 20.4 (1.8%) 419.6 427.3 1.8% Û Gross Margin 21.86%
Slide 5: Trading Performance
3. T R A DI NG P E R F O R M A NC E For personal use only Sales Sales Growth § Total consolidated sales grew by 1.3% to $1.97b, Q1 FY15 Q2 FY15 HY15 with comparable sales down 0.7%. Total Comps. Total Comps. Total Comps. Australia (0.8%) (3.5%) 3.0% 1.5% 1.4% (0.6%) § Sales momentum improved through
Slide 6: Trading Performance: Gross Margin
3. T R A DI NG P E R F O R M A NC E . . . For personal use only Gross Margin GROSS PROFIT GROSS MARGIN HY14 HY15 HY14 HY15 § Consolidated gross profit increased by 1.8% to $427.3m. Australia $401.3m $408.7m 21.86% 21.95% § Consolidated gross margin was 21.7%, an 11 bps increase on the pcp. New Zeala
Slide 7: Trading Performance: Cost of Doing Business
3. T R A DI NG P E R F O R M A NC E . . . For personal use only Cost of Doing Business (CODB) CODB § Consolidated CODB was 14.2%, up 29 bps on the pcp. HY14 HY15 § In Australia, CODB increased by 28 bps to 14.1% driven by reduced Australia 13.86% 14.14% operating leverage. Store wages remained well
Slide 8: Trading Performance: Earnings
3. T R A DI NG P E R F O R M A NC E . . . For personal use only Earnings EBIT MARGIN § Consolidated EBIT was down 2.2% to $130.0m and EBIT margin was down 24 HY14 HY15 Australia 7.11% 6.86% bps on the pcp at 6.6%. New Zealand 2.28% 2.17% § This was a pleasing result given the challenging first quart
Slide 9: Store Update
4 . S T O R E U P DAT E For personal use only § Three new JB HI-FI HOME stores were opened in the first half of FY15, two in Australia and one in New Zealand. § In the first half, 14 JB HI-FI stores in Australia were converted to JB HI-FI HOME. This included four stores which were relocated as part
Slide 10: In Store: JB HI-FI HOME
5. I N S T O R E For personal use only JB HI-FI HOME § Significant sales growth opportunity as we grow our share of the circa $4.6 billion home appliances market. § The HOME stores achieved comparable sales growth of 5.8% in HY15. § During HY15, 14 existing stores were converted to JB HI-FI HOME and
Slide 11: Out of Store
6 . O u t of s t o r e For personal use only Online § We continue to leverage the benefits of a strong online presence combined with our bricks and mortar locations. § Online sales for HY15 grew 13.5% on the pcp to $48.7m or 2.5% of sales (HY14: 2.2%), with sales in December up 20.6% on the pcp. § N
Slide 12: Cash Flow and Balance Sheet
7. C A S H F L O W A N D B A L A NC E S H E ET For personal use only Cash Flow Statement Working Capital AUDm HY14 HY15 Statutory Adjusted Statutory EBITDA 150.3 148.7 AUDm HY14 FY12 HY14 FY12 HY15 Change in Working Capital (45.8) 146.6 (Increase)/decrease in current assets Net Interest Paid (3.7) (
Slide 13: Cash Flow and Balance Sheet: Balance Sheet and Inventory Bridge
7. C A S H F L O W A N D B A L A NC E S H E ET. . . For personal use only Balance Sheet Inventory Bridge – HY14 to HY15 AUDm HY14 HY15 FY14 625 Cash 44.9 68.1 43.4 13.9 Receivables 127.6 150.5 70.7 17.6 (41.2) Inventories 588.1 572.6 458.6 575 (5.0) Other 4.7 5.7 5.3 (0.8) Total Current Assets 765.4
Slide 14: Capital Management
8 . C API TA L M A NAG E ME N T For personal use only § JB HI-FI regularly reviews all aspects of its capital structure with a focus on maximising returns to shareholders. § During HY15 we completed an on-market buy-back of 0.3 million ordinary shares (at a cost of $5.0 million) to offset the diluti
Slide 15: Trading Outlook
9. T R A DI NG O U T L O O K For personal use only Trading Outlook § January 2015 sales update: - total consolidated sales growth was 8.9% and comparable sales growth was 7.0%; and - total consolidated sales growth January 2015 YTD was 2.2% and comparable sales growth was 0.2%. § January sales and o
Slide 16: Growth Opportunities
1 0. G R O W T H OP P O RT UN I T I E S For personal use only Growth Opportunities – Solid pipeline of properties with six new stores to be opened in FY15. q New stores – Will continue our disciplined approach to selecting new stores based on high foot traffic locations. – Target of 214 stores acros
Slide 17: Appendix I
Ap p e n dix I For personal use only a) Store movements during HY15 b) Geographic breakdown1 HY15 FY14 Opened Converted Total Australia JB HI-FI 147 - (14) 133 JB HI-FI HOME 22 2 14 38 169 2 - 171 New Zealand 2 JB HI-FI 13 - - 13 JB HI-FI HOME - 1 - 1 35 13 1 - 14 TOTAL 182 3 - 185 19 9 Store type:
Slide 18: Appendix II
Ap p e n dix I I For personal use only a) EBIT reconciliation b) NZ Profit and Loss statement (AUD) AUDm HY14 HY15 AUDm HY14 HY15 Profit for the half-year (App 4D) 90.4 88.5 Sales 103.9 103.0 add back Gross Profit 18.3 18.6 - income tax expense (App 4D) 38.6 38.5 Gross Margin 17.58% 18.03% Profit be
Slide 19: Appendix III: Profit and Loss
Ap p e n dix I I I For personal use only a) Profit and Loss AUDm HY11 HY12 HY13 HY14 HY15 Sales 1,682.6 1,774.7 1,816.2 1,939.9 1,965.1 Gross Profit 362.5 377.0 390.9 419.6 427.3 Gross Margin 21.54% 21.24% 21.52% 21.63% 21.74% EBITDA 140.3 136.1 139.8 150.3 148.7 Depreciation & Amortisation 13.3 15.
Slide 20: Appendix III: Cash Flow
Ap p e n dix I I I. . . For personal use only b) Cash Flow AUDm HY11 HY12 HY13 HY14 HY15 EBITDA 140.3 136.1 139.8 150.3 148.7 Change in Working Capital 97.7 107.5 (9.2) (45.8) 146.6 Net Interest Paid (2.1) (7.2) (4.9) (3.7) (2.7) Income Tax Paid (22.4) (23.9) (15.3) (25.9) (29.0) Other 5.1 3.4 3.1 3
Slide 21: Appendix III: Balance Sheet
Ap p e n dix I I I. . . For personal use only c) Balance Sheet AUDm HY11 HY12 HY13 HY14 HY15 Cash 180.0 58.7 54.3 44.9 68.1 Receivables 130.3 125.7 113.6 127.6 150.5 Inventories 388.1 415.7 529.8 588.1 572.6 Other 5.1 8.0 6.8 4.7 5.7 Total Current Assets 703.4 608.2 704.4 765.4 796.8 Fixed Assets 17