Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — Macquarie Equities 2006 Emerging Leaders Conference
18 slides from Jb Hi-fi's conference presentation, 2006
Slide 1: JB Hi-Fi Limited Macquarie Conference
JB; JB Hi-Fi Limited Macquarie Conference
Slide 2: Agenda
Agenda >» Introduction to JB >» Trading Update > JB moves into Computer market >» Using technology to increase sales & lower costs
Slide 3: JB Hi-Fi Overview
JB Hi-Fi Overview » Large format category killer discount retailer specialising in home entertainment >» Product categories — Visual — Audio — Camera’s — Car Sound — Accessories — CD's — DVD's — Games
Slide 4: Track Record of Growth
Track Record of Growth » Strong growth in sales, earnings and stores since MBI in July 2000 250m 66 634m 4520 356m 249m " 15 1550 a 2001(A} 2002{4) 2083(A) 2004(A} 2005{4) 2006(F} 2001{A) (2002(A) 2003{A4) (2004(A) 2005{A) (2006(F} Sales Stores 37.om 207m 228m 13.8m 16.7m 116m 6.2m 87m 26m 2004 (A)
Slide 5: Track Record of Growth
Track Record of Growth » Share price up 300% since listing $5.50 $5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 Oct-03 Jan-04 Apr-04 JulO4 Oct-04 Jan-05 Apr-05 JubO5 Oct-05 Jan-06 Apr-06 — JB Hi-Fi —— ASxX200 - IPO Share Price — Retail offer $1.55, Institutional offer $1.80, blended opening I
Slide 6: Trading Update
wv v Trading Update Trading to expectations, consumer confidence seems to be picking up a little. Visual strong, household penetration about 9% with many years of good visual sales still ahead. 2003 | 2004 2005_|CAGR Number of households (Millions) 7.58 7.67 7.76 1% Number of LCD 22,525 | 64,987 | 2
Slide 7: JB Enters Computer Market
JB ENTERS COMPUTER MARKET Richard Uechtritz, CEO
Slide 8: Why Computers/IT?
7 » » » Why Computers/IT? Large market $1.5 billion + Growing fast — 2006 20%+ Should continue to grow for number of years Linking more and more to other JB categories i.e. television, portable audio, digital cameras, media etc. Suits JB customer base — young, mobile, tech savvy JB has store traffic
Slide 9: Industry Overview
Industry Overview (& >» $1.5B+ computer market PC $290M Software $130M Monitor $90M Laptop $650M Scanner a $10M | Printer /PDA $120 g52q MFD $ 160M Accessories/Peripherals Not Listed: Keyboards, Mice, Networking, Bags, Hard Storage Source: GFK Dec 2005
Slide 10: Competitors
Competitors tt » Competitive Landscape — Harvey Norman — market leader ~30%+ of market — Dick Smith — Officeworks — Computer Specialists — Electrical Retailers — Mass Merchants
Slide 11: Using Technology to Lower Costs & Increase Sales
wf JB Hi-Fi Limited USING TECHNOLOGY TO LOWER COSTS & INCREASE SALES Terry Smart, COO
Slide 12: JB's proposition is EDLP
» JB’s proposition is EDLP > Therefore we need to continue to hold down CODB » Graph below compares JB to respected industry player Woolworths, Consumer Electronics division 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 8.0% JB Using Technology 26.6% 25.2% 9 17.8% 17.0% FYO4 FYOS OJB Hi-Fi g WOW Consumer Elect
Slide 13: JB Using Technology
JB Using Technology Pid IT does not drive what we do but it does support our primary position - EDLP. Some Key objectives are: » Maximise sales * Minimise sales process time ie more customers serviced by sales people + Prompt add on > Protect GP * Control discounting » Minimise costs * Increase prod
Slide 14: JB Using Technology main IT supports
JB Using Technology Pid 3 main IT supports >» Sales person PDA’s » Regional Manager PDA’s > Time and attendance system
Slide 15: Sales person's PDA's
Sales person’s PDA’S (#H | Handheld PDA based sales order system Benefits — » Improve counter efficiency — faster processing of transactions » Replaces current paper based sales books » Improves Inventory management » Drive optimal sales and gross profit outcomes >» Assists with up sells and Add on’
Slide 16: Regional Managers PDA's
Regional Managers rit PDA’S “ee Trialling introduction of Regional Managers PDA’s Benefits - » Total Store information available upon entering store » Store sales & gross profit by department » Sales staff sales & statistics >» Alerts such as sales below cost, low statistics etc » Stock issues, over
Slide 17: Time & Attendance System
Time & Attendance JB, System _— Payroll time and attendance system Benefits — Off the shelf package Eliminate possibility of time sheet errors Monitor / control overtime Improve productivity by volume rostering Allow Head Office Real Time visibility of rosters Provide alerts to Regional Manager's if
Slide 18: Investment Scorecard
Investment Scorecard & Jp, Questions ue » Growth factors: Continued focused exposure to high growth home entertainment product market Recently opened stores continue to mature strongly JB new store roll-out continues, with plenty of site opportunities Clive Anthonys provides exposure to different ma
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