Slide 1: HY18 Results Presentation
JB Hi-Fi Limited HY18 Results Presentation 15 12 AUGUST 2016 FEBRUARY 2018 PAGE 1
Slide 2: Agenda
Agenda 1. Group Performance Overview 2. JB HI-FI 3. The Good Guys 4. Group Balance Sheet and Cash Flow 5. Outlook Richard Murray Nick Wells Group CEO Group CFO JB HI-FI LIMITED PAGE 2
Slide 3: Group Performance Overview: Financial highlights
1. Group Performance Overview Financial highlights 1 AUD HY18 HY17 Growth Total sales ($m) 3,689.8 2,616.2 1,073.6 41.0% ▲ Earnings before interest and tax ($m) 225.8 180.8 45.0 24.9% ▲ Net profit after tax ($m) 151.7 125.4 26.3 21.0% ▲ Earnings per share (basic ¢) 132.2 116.3 +16 cps 13.7% ▲ Divide
Slide 4: Group Performance Overview: Divisional performance
1. Group Performance Overview Divisional performance 1,2 Growth HY18 HY17 $m % Sales ($m) - JB HI-FI Australia 2,476.0 2,234.2 241.8 10.8% ▲ - JB HI-FI New Zealand (NZD) 124.6 125.1 (0.5) (0.4%) ▼ - The Good Guys 1,099.8 263.1 836.7 318.0% ▲ Total Sales (AUDm) 3,689.8 2,616.2 1,073.6 41.0% ▲ EBIT ($
Slide 5: JB HI-FI Australia performance summary: Sales
2. JB HI-FI JB HI-FI Australia performance summary 1 Sales AUD HY18 HY17 Growth ▪ Total sales grew by 10.8% to $2.48 billion, with Sales ($m) 2,476.0 2,234.2 10.8% ▲ comparable sales up 7.8% ▪ Hardware and Services3 sales in HY18 were up 13.5%, Gross Profit ($m) 545.3 496.5 9.8% ▲ with comparable sa
Slide 6: JB HI-FI Australia performance summary: Gross Profit and Margin
2. JB HI-FI JB HI-FI Australia performance summary 1 Gross Profit and Margin AUD HY18 HY17 Growth ▪ Gross profit increased by 9.8% to $545.3 million Sales ($m) 2,476.0 2,234.2 10.8% ▲ ▪ Gross margin was 22.0%, a 20 bps decrease on the pcp, primarily driven by: Gross Profit ($m) 545.3 496.5 9.8% ▲ ▪
Slide 7: JB HI-FI Australia performance summary: CODB
2. JB HI-FI JB HI-FI Australia performance summary 1 CODB AUD HY18 HY17 Growth ▪ Our low CODB remains a competitive advantage and Sales ($m) 2,476.0 2,234.2 10.8% ▲ is maintained through continued focus on productivity and minimising unnecessary expenditure Gross Profit ($m) 545.3 496.5 9.8% ▲ ▪ COD
Slide 8: JB HI-FI New Zealand performance summary
2. JB HI-FI JB HI-FI New Zealand performance summary ▪ Total sales were down 0.4% to NZD124.6 million NZD HY18 HY17 Growth ▪ Comparable sales for HY18 were up 2.4%, with Q2 Sales ($m) 124.6 125.1 (0.4%) ▼ comparable sales up 8.7% Gross Profit ($m) 21.8 24.0 (9.2%) ▼ ▪ Online sales in New Zealand for
Slide 9: The Good Guys performance summary: Sales
3. The Good Guys The Good Guys performance summary 1 ▪ All performance indicators and ratios for HY17 are AUD HY18 HY17 Growth 1 for the period of ownership, and reflect the seasonal Sales ($m) 1,099.8 263.1 318.0% ▲ impact of the month of December Gross Profit ($m) 228.6 51.7 342.1% ▲ Sales ▪ Total
Slide 10: The Good Guys performance summary: CODB, EBIT and Stores
3. The Good Guys The Good Guys performance summary 1 ▪ All performance indicators and ratios for HY17 are AUD HY18 HY17 Growth for the period of ownership,1 and reflect the seasonal Sales ($m) 1,099.8 263.1 318.0% ▲ impact of the month of December Gross Profit ($m) 228.6 51.7 342.1% ▲ CODB ▪ CODB wa
Slide 11: Group Balance Sheet and Inventory Bridge
4. Group Balance Sheet and Cash Flow Group Balance Sheet Inventory Bridge – HY17 to HY18 1 1 AUDm HY18 FY17 HY17 $56.5m Cash 182.7 72.8 124.5 $37.3m Receivables 302.2 193.6 257.5 ($5.3m) Inventories 986.7 859.7 898.1 Other 45.3 41.4 47.5 Total Current Assets 1,516.9 1,167.5 1,327.6 $986.7m Fixed Ass
Slide 12: Group Cash Flow Statement and Performance Indicators
4. Group Balance Sheet and Cash Flow Group Cash Flow Statement Group Performance Indicators AUDm HY18 HY17 HY18 HY17 Statutory EBITDA 256.3 188.5 Fixed Charge Ratio 3.0x 3.6x Change in Working Capital 179.3 117.0 Interest Cover 27.2x 66.0x Net Interest Paid (8.5) (0.1) Gearing Ratio 0.9 1.4 Income T
Slide 13: Capital Management
4. Group Balance Sheet and Cash Flow Capital Management HY18 dividend up 19.4% to 86 cps ▪ The Board regularly reviews its capital structure with a focus on Final maximising returns to shareholders and believes the current Interim dividend payout ratio of 65% appropriately balances the distribution
Slide 14: Outlook
5. Outlook Outlook January 2018 sales update: ▪ Total sales growth for JB HI-FI was 6.9% (January 2017: 9.8%) with comparable sales growth of 4.5% (January 2017: 7.2%) ▪ Total sales growth for The Good Guys was -3.5% (January 2017: 5.0%) with comparable sales growth of -4.7% (January 2017: 3.5%). Th
Slide 15: Appendix I
Appendix I a) Group underlying EBIT reconciliation c) Group underlying CODB reconciliation AUDm AUDm HY18 HY17 HY18 HY17 Statutory EBIT 225.8 165.5 Other income (ex interest received) (0.4) (0.1) Adjustments Sales and marketing expenses (App 4D) 357.4 249.3 - Transaction Fees - 14.1 Occupancy expens
Slide 16: Appendix II: Stores across Australia and New Zealand
Appendix II 311 stores across Australia and New Zealand1 Group store reconciliation HY18 FY17 Opened Converted Closed Total Australia JB HI-FI 126 7 - - 133 JB HI-FI HOME 59 - - - 59 185 7 - - 192 1 New Zealand 2 JB HI-FI 12 - 4 (1) 15 23 JB HI-FI HOME 4 - (4) - - 14 38 16 - - (1) 15 22 JB HI-FI TOT
Slide 17: Appendix III: Group Profit and Loss
Appendix III a) Group Profit and Loss AUDm 1 HY18 HY17 HY16 HY15 HY14 Sales 3,689.8 2,616.2 2,116.8 1,965.1 1,939.9 Gross Profit 793.9 571.1 459.6 427.3 419.6 Gross Margin 21.52% 21.83% 21.71% 21.74% 21.63% EBITDA 256.3 203.9 157.9 148.7 150.3 Depreciation & Amortisation 30.5 23.1 19.7 18.8 17.4 EBI
Slide 18: Appendix III: Group Profit and Loss - Breakdown
Appendix III b) Group Profit and Loss - Breakdown 1 HY18 HY17 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 2,476.0 124.6 1,099.8 3,689.8 2,234.2 125.1 263.1 2,616.2 41.0% ▲ Gross Profit 545.3 21.8 228.6 793.9 496.5 24.0 51.7 571.1 39.0% ▲ Gros
Slide 19: Appendix III: Group Balance Sheet
Appendix III c) Group Balance Sheet AUDm HY18 HY171 HY16 HY15 HY14 Cash 182.7 124.5 101.4 68.1 44.9 Receivables 302.2 257.5 146.1 150.5 127.6 Inventories 986.7 898.1 621.5 572.6 588.1 Other 45.3 47.5 9.7 5.7 4.7 Total Current Assets 1,516.9 1,327.6 878.7 796.8 765.4 Fixed Assets 207.2 215.7 185.5 19
Slide 20: Appendix III: Group Cash Flow
Appendix III d) Group Cash Flow AUDm HY18 HY17 HY16 HY15 HY14 Statutory EBITDA 256.3 188.5 157.9 148.7 150.3 Change in Working Capital 179.3 117.0 134.4 146.6 (45.8) Net Interest Paid (8.5) (0.1) (1.7) (2.7) (3.7) Income Tax Paid (58.9) (34.2) (33.6) (29.0) (25.9) Other 5.4 4.8 2.6 1.8 3.3 Net Cash