Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — FY2005 Earnings Presentation
17 slides from Jb Hi-fi's earnings presentation, Aug 16, 2005
Slide 1: Full Year Results Presentation — June 2005
all = 5 -HL-FI JB Hi-Fi Limited Full Year Results Presentation — June 2005 16 August 2005
Slide 2: Agenda
JB -HEFI AGENDA 1. Performance 2. Historical Performance 3. Trading Update 4. Financial Detail 5. IFRS Update 6. New Stores 7. Investment Scorecard Richard Uechtritz Richard Murray CEO CFO
Slide 3: 1. Performance
JB 1. PERFORMANCE Strong performance for 12 months to 30 June 2005 Growth against previous corresponding period: * * * * Sales Comparable store sales growth (PCP 8.0%) EBIT EBIT Margin (PCP 5.1%) NPAT $693.9m 4.7%* $37.0m §.3% $20.7m 53.4% + ~3.3% © 62.1% * + 0.2% + 49.8% + Final fully franked divid
Slide 4: 2. Historical Performance
JB 2. HISTORICAL PERFORMANCE Strong growth in sales & earnings since MBI in July 2000 694m + 53% 452m 155m 37.0m + 62% 22.8m 11.6m 5.7m 6.2m 13.8m 2.6m 20.7m + 50% 2001 2002 2003 2004 2005 Sales 2001 2002 2003 2004 2005 EBIT 2001 2002 2003 2004 2005 NPAT
Slide 5: 3. Trading Update
JB -HEFI 3. TRADING UPDATE Sales Product Mix FY05 Domestic Appliances & Computers (CA stores) Music, Movies & Games (JB stores) 33% Consumer Electronic (JB & CA stores) 57% Total Stores FY05: 48 (JB 42, CA 6) 4 Perth _-., 3 Adelaide 13 SE Qld (JB 7, CA6} 1 Newcastle 3 Canberra /” 4 Central Coast 6 S
Slide 6: Trading Overview
wJB : Trading Overview Market sales growth slowed significantly in the first half of calendar year 05 after 18 months of strong consumer spending. This slower rate of growth is likely to continue into the first half of FY 05/06. This slow down has been more pronounced in the white goods, cooking and
Slide 7: 4. Financial Detail: Profit and Loss Statement
JB -HEFI 4. FINANCIAL DETAIL Profit and Loss Statement $m Sales Comparative Store Sales Gross Profit Gross Margin EBITDA Depreciation & Amortisation EBIT EBIT Margin Net Profit After Tax (net of OED Headline Statistics: Earnings per share (cents)* Stores at period end OPEX (ex. depn & amort) as % of
Slide 8: Cashflow Statement
wJB : Cashflow Statement $m EBITDA Change in Working Capital Interest Paid Income Tax Paid Net Cashflow from Operations Purchases of F,F & E Payments for Intangibles & Invest. Net Cashflow from investing Proceeds from issue of equity Net Borrowings Finance Lease funded Repayment of finance leases Di
Slide 9: Working Capital
wJB : Working Capital $m (Increase)/Decrease in current assets Inventory (23.0) (21.3) Receivables (5.3) (3.9) Other Current Assets (0.3) (1.4) Increase/(Decrease) in current liabilities Trade creditors (3.7) 18.2 Other current liabilities 0.9 5.6 Net Movement in Working Capital {31.4) (2.8) Continu
Slide 10: Balance Sheet
JB Balance Sheet $m Mo Cash 1.6 16.4 (14.8) Receivables 19.9 13.0 6.9 Inventories 104.5 70.3 34.2 Other Current Assets 28 11 15 Total Current Assets 128.7 100.9 27.8 Fixed Assets 35.6 219 13.7 Brandname & Goodwill 66.8 465 20.3 Other Non-Current 17 O7 1.0 Total Non-Current 104.2 69.1 35.1 Total Asse
Slide 11: Performance Indicators
wJB : Performance Indicators JB Hi-Fi’s balance sheet remains strong, and the group is well positioned for growth as evidenced by the following key ratios: $m Stock Turnover Creditors Days Fixed Charge Ratio Interest Cover (times) Return on Equity Return on Invested Capital EBIT Margin * Average met
Slide 12: 5. IFRS
wJB : 5. IFRS Key areas of IFRS for JB Share based payment Inventory (stretch rebates & early settlement discounts) CGU - plant & equipment Leases - fixed rate increases Brand names & goodwill — deferred tax balances P&L Impact 05* Yes Yes Yes Yes No * To retained earnings as part of IFRS transition
Slide 13: IFRS Impact - P&L
we IFRS Impact - P&L $m : Sales 693.9 - 693.9 Cost of sales 534.5 05 535.0 Gross profit 159.5 (0.5) 159.0 Marketing expenses 84.2 0.5 84.7 Occupancy expenses 22.3 0.3 22.6 Administration expenses 9.2 - 9.2 Borrowing costs 5.7 - 5.7 Other expenses 7.9 0.1 7.9 Other revenue 1.1 (0.1) 1.0 Profit Before
Slide 14: IFRS Impact - Balance Sheet
we IFRS Impact - Balance Sheet $m Assets Inventories 104.5 (1.6) 103.0 Property, plant & equipment 35.6 (0.4) 35.2 Intangibles 66.3 18.4 84.7 Liabilities Deferred tax liabilities 0.6 18.4 19.0 Provisions 6.9 (0.6) 6.3 Other . 1.0 1.0 Net Assets 66.1 (2.8) 63.3 Equity Contributed equity 32.4 - 32.4 R
Slide 15: 6. New Stores
wJB : 6. NEW STORES Stores Opened 10 JB stores opened during the year: VIC: Werribee, Narre Warren, Melbourne City (Bourke St)* NSW: North Ryde, Sydney City”, Leichhardt SA: Modbury WA: Whitford ACT: Canberra City*, Belconnen 1 Clive Anthonys store opened during the year: Mount Gravatt (Brisbane) Ac
Slide 16: New Store Program
JB New Store Program Anticipate approximately 16 to 17 new JB stores in FY06, with 12 stores before Xmas in some of the country’s biggest Shopping Centres including: + Westfield Tuggerah (NSW Central Coast) NOW OPEN * QIC’s Loganholme (Brisbane) + QIC’s Robina (Gold Coast) NOW OPEN + Lend Lease’s Ca
Slide 17: 7. Investment Scorecard
wJB : 7. INVESTMENT SCORECARD Strong growth, profitability & sustainable competitive advantage Growth factors: Continued focused exposure to high growth, highly desirable home entertainment product market Recently opened stores continue to mature strongly JB new store roll-out continues, with plenty