Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — FY2023 Earnings Presentation
42 slides from Jb Hi-fi's earnings presentation, Aug 14, 2023
Slide 1: FY23 Results Presentation
rsonal use only JB Hi-Fi Limited FY23 Results Presentation JB HI-FI LIMITED
Slide 2: Agenda
Agenda 1. Group Overview rsonal use only 2. JB HI-FI Australia 3. JB HI-FI New Zealand 4. The Good Guys 5. Group Balance Sheet and Cash Flow 6. Group FY24 Trading Update 7. Group Focus Areas 8. Investment Checklist Terry Smart Nick Wells Group CEO Group CFO JB HI-FI LIMITED PAGE 2
Slide 3: Group Overview
rsonal use only 1. Group Overview
Slide 4: The group model
The group model Two iconic retail brands rsonal use only Purpose Help people with better ways to live, Help families live better for less learn, work, and play Leading retailer of technology and consumer Leading retailer of home appliances and Product offering electronics consumer electronics 200+ J
Slide 5: Group Model: key competitive advantages
Group Model Underpinned by 4 key competitive advantages 1 2 3 4 People and Culture rsonal use only Scale Low Cost Operating Model Multichannel Capability ▪ #1 player in Australian Consumer ▪ Constant focus on productivity and ▪ Focus on providing the customer with an ▪ Knowledgeable and passionate E
Slide 6: Generating sustainable long-term growth
Generating sustainable long-term growth The Group today released its FY23 Sustainability Report outlining our commitment to having a positive impact on our people, our community and our environment rsonal use only Sustainability Policy focus areas FY23 Achievements Our People ▪ Continued to improve
Slide 7: Group FY23 Performance
Group FY23 Performance FY23 Group Performance rsonal use only AUD FY23 FY22 Growth Total sales ($m) 9,626.4 9,232.0 394.4 4.3% ▲ Earnings before interest and tax ($m) 769.0 794.6 (25.6) (3.2%) ▼ Net profit after tax ($m) 524.6 544.9 (20.4) (3.7%) ▼ Earnings per share (basic ¢) 479.9 479.5 +0.4 cps 0
Slide 8: Group FY23 Performance
Group FY23 Performance FY23 Group Performance rsonal use only FY23 FY22 Growth $m % Sales ($m) - JB HI-FI Australia 6,546.1 6,196.5 349.6 5.6% ▲ - JB HI-FI New Zealand (NZD) 292.1 262.4 29.7 11.3% ▲ - The Good Guys 2,813.0 2,789.4 23.6 0.8% ▲ Total Sales (AUDm) 9,626.4 9,232.0 394.4 4.3% ▲ EBIT ($m)
Slide 9: JB HI-FI Australia
rsonal use only 2. JB HI-FI Australia
Slide 10: JB HI-FI Australia FY23 Performance
JB HI-FI Australia FY23 Performance rsonal use only AUD FY23 FY22 Growth Sales ($m) 6,546.1 6,196.5 5.6% ▲ Gross Profit ($m) 1,481.4 1,387.7 6.7% ▲ Gross Margin (%) 22.63% 22.40% +23 bps ▲ Cost of Doing Business (%) 12.07% 11.40% +68 bps ▲ EBITDA ($m) 690.9 681.4 1.4% ▲ EBITDA Margin (%) 10.55% 11.0
Slide 11: JB HI-FI Australia FY23 Performance: Sales
JB HI-FI Australia FY23 Performance FY23 Sales rsonal use only TOTAL SALES GROWTH BY QUARTER ▪ Total sales increased by 5.6% to $6.55 billion, with comparable sales up 4.8%. As compared to pre Covid FY19, total sales were up 38.5% vs FY22 ▪ Hardware and Services1 sales were up 5.8%, with comparable
Slide 12: JB HI-FI Australia FY23 Performance: Earnings
JB HI-FI Australia FY23 Performance FY23 Earnings GROSS MARGIN (%) rsonal use only ▪ Gross profit increased by 6.7% to $1.48 billion with gross margin up 23 bps to 22.6%, driven by positive sales mix ▪ CODB was 12.1%, up 68 bps. CODB % remained below pre Covid 22.1% 22.0% 22.2% 22.4% 22.6% FY19, dri
Slide 13: JB HI-FI New Zealand
rsonal use only 3. JB HI-FI New Zealand
Slide 14: JB HI-FI New Zealand FY23 Performance
JB HI-FI New Zealand FY23 Performance rsonal use only NZD FY23 FY22 Growth Sales ($m) 292.1 262.4 11.3% ▲ Gross Profit ($m) 46.7 45.7 2.4% ▲ Gross Margin (%) 16.00% 17.40% (140 bps) ▼ Cost of Doing Business (%) 14.18% 12.75% +142 bps ▲ EBITDA ($m) 5.3 12.2 (56.3%) ▼ EBITDA Margin (%) 1.82% 4.64% (28
Slide 15: JB HI-FI New Zealand FY23 Performance: Sales
JB HI-FI New Zealand FY23 Performance FY23 Sales rsonal use only TOTAL SALES GROWTH BY QUARTER ▪ Total sales increased by 11.3% to NZD292.1 million, with comparable sales up 11.3%. As compared to pre Covid FY19, vs FY22 total sales were up 23.6% 30.1% vs FY19 ▪ Hardware and Services1 sales were up 1
Slide 16: JB HI-FI New Zealand FY23 Performance: Earnings
JB HI-FI New Zealand FY23 Performance FY23 Earnings GROSS MARGIN (%) rsonal use only ▪ Gross profit increased by 2.4% to NZD46.7 million with gross margin down 140 bps to 16.0%, driven by price competitiveness in key categories and negative sales mix ▪ CODB was 14.2%, up 142 bps. CODB % remained bel
Slide 17: The Good Guys
rsonal use only 4. The Good Guys
Slide 18: The Good Guys FY23 Performance
The Good Guys FY23 Performance rsonal use only AUD FY23 FY22 Growth Sales ($m) 2,813.0 2,789.4 0.8% ▲ Gross Profit ($m) 658.4 649.9 1.3% ▲ Gross Margin (%) 23.40% 23.30% +11 bps ▲ Cost of Doing Business (%) 12.83% 11.79% +104 bps ▲ EBITDA ($m) 297.4 321.1 (7.4%) ▼ EBITDA Margin (%) 10.57% 11.51% (94
Slide 19: The Good Guys FY23 Performance: Sales
The Good Guys FY23 Performance FY23 Sales rsonal use only TOTAL SALES GROWTH BY QUARTER ▪ Total sales increased by 0.8% to $2.81 billion, with comparable vs FY22 sales up 0.8%. As compared to pre Covid FY19, total sales were 38.1% vs FY19 up 31.0% 35.3% 31.0% ▪ The key growth categories were Refrige
Slide 20: The Good Guys FY23 Performance: Earnings
The Good Guys FY23 Performance FY23 Earnings GROSS MARGIN (%) rsonal use only ▪ Gross profit was $658.4 million with gross margin up 11 bps to 23.4%, driven by positive sales mix ▪ CODB was 12.8%, up 104 bps. CODB % remained below pre Covid FY19, driven by continued disciplined cost control 23.3% 23
Slide 21: Group Balance Sheet and Cash Flow
rsonal use only 5. Group Balance Sheet And Cash Flow
Slide 22: Group Balance Sheet and Cash Flow
Group Balance Sheet and Cash Flow Group Balance Sheet rsonal use only AUDm FY23 FY22 ▪ Inventory was $1.04 billion, down 8.3% or $94.4 million year on year. As compared to pre Covid FY19, Inventory was up Cash 177.3 125.6 17.4% vs sales growth of 35.7% over the same period Receivables 146.5 132.6 In
Slide 23: Group Cash Flow Statement and Performance Indicators
Group Balance Sheet and Cash Flow Group Cash Flow Statement Group Performance Indicators rsonal use only AUDm FY23 FY22 FY23 FY22 EBITDA 993.2 1,013.9 Fixed Charge Ratio 3 4.5x 4.8x Change in working capital 5.0 (119.4) Interest Cover 3 170.9x 602.1x Net interest received / (paid) on borrowings 0.7
Slide 24: Capital Management
Group Balance Sheet and Cash Flow Capital Management TOTAL DIVIDEND OF 312 CPS rsonal use only ▪ The final dividend is 115 cents per share (cps) fully franked, down 38 cps or 24.8%. As compared to pre Covid FY19, the final dividend was up 64 cps or 125.5% ▪ The total dividend for FY23 was 312 cps, d
Slide 25: Group FY24 Trading Update
rsonal use only 6. Group FY24 Trading Update
Slide 26: July 2023 sales update
Group FY24 Trading Update July 2023 sales update rsonal use only JULY TOTAL SALES GROWTH The Group provides the following sales update for the period 1 July 2023 vs FY23 to 31 July 2023 38.7% vs FY19 ▪ Total sales growth for JB HI-FI Australia was -1.8% with 27.9% comparable sales growth of -2.9%. A
Slide 27: Group Focus Areas
rsonal use only 7. Group Focus Areas
Slide 28: Group Focus Areas: 1. Retail Execution
Group Focus Areas 1. Retail Execution rsonal use only Continue to leverage our value proposition and grow our market share ▪ Leverage our low price and discount heritage ▪ Utilise our supplier relationships to continue to create best in market offers and promotions Delivering value ▪ Use the breadth
Slide 29: Group Focus Areas: 2. Multichannel
Group Focus Areas 2. Multichannel rsonal use only Expanding our reach and attracting more shoppers to the brands ▪ Continue to focus on the in-store experience and engagement with constant category and store layout evolution Stores ▪ 5 new JB HI-FI Australia stores opened in FY23 with additional new
Slide 30: Group Focus Areas: 3. New Zealand
Group Focus Areas 3. New Zealand rsonal use only Grow and expand the business ▪ Refresh the store network to deliver an improved in-store customer shopping experience and engagement Grow the ▪ 7 existing store relays completed in FY23 and the relocation of existing retail stores at Queen St & Hamilt
Slide 31: Group Focus Areas: 4. Commercial
Group Focus Areas 4. Commercial rsonal use only Developing our Commercial businesses for future growth ▪ Evolving the brand to align to our key market segments Evolving the ▪ JB HI-FI Business ▪ JB HI-FI Education Brand ▪ The Good Guys Commercial ▪ Targeting growth in small to medium sized business
Slide 32: Group Focus Areas: 5. Supply Chain
Group Focus Areas 5. Supply Chain rsonal use only Continued investment in a fit for purpose Group Supply Chain that supports In-store and Online fulfilment ▪ Highly focused on customer delivery solutions ▪ Continued growth of the JB HI-FI Australia ‘on-demand’ delivery service, in partnership with U
Slide 33: Investment Checklist
rsonal use only 8. Investment Checklist
Slide 34: Investment Checklist
Investment Checklist rsonal use only Unique team culture and unrivalled Unique and relevant brands customer service Flexible business model – history of Multichannel capability built around high quality store category growth and development portfolio Diverse and resilient product categories
Slide 35: Appendices
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Slide 36: Appendix I: Group Profit and Loss
Appendix I a) Group Profit and Loss rsonal use only AUDm FY23 FY22 FY21 FY20 FY19 (Pre AASB16) Sales 9,626.4 9,232.0 8,916.1 7,918.9 7,095.3 Gross Profit 2,182.5 2,080.4 1,977.2 1,694.1 1,527.1 Gross Margin 22.67% 22.53% 22.18% 21.39% 21.52% EBITDA 993.2 1,013.9 961.6 718.0 429.1 Depreciation & Impa
Slide 37: Appendix I: Group CODB reconciliation
Appendix I b) Group CODB reconciliation rsonal use only AUDm FY23 FY22 Other income (ex interest revenue) (3.2) (2.2) Sales and marketing expenses 978.3 881.1 Occupancy expenses 321.8 302.8 less depreciation, amortisation & impairment (214.8) (210.1) Administration expenses 46.0 41.8 less depreciati
Slide 38: Appendix I: Group Balance Sheet
Appendix I c) 5 year Group Balance Sheet rsonal use only AUDm FY23 FY22 FY21 FY20 FY19 (Pre AASB16) Cash 177.3 125.6 263.2 251.5 119.2 Receivables 146.5 132.6 102.8 220.3 254.4 Inventories 1,040.9 1,135.3 938.8 739.3 886.7 Other 34.6 31.2 35.7 34.7 34.6 Total Current Assets 1,399.3 1,424.7 1,340.5 1
Slide 39: Appendix I: Group Cash Flow
Appendix I d) 5 year Group Cash Flow rsonal use only AUDm FY23 FY22 FY21 FY20 FY19 (Pre AASB16) EBITDA 993.2 1,013.9 961.6 718.0 429.1 Change in working capital 5.0 (119.4) (241.0) 402.1 (16.9) Net interest received / (paid) on borrowings 0.7 (0.6) (1.7) (10.4) (13.1) Interest on lease liabilities (
Slide 40: Appendix II: Group Profit and Loss – Breakdown
Appendix II Group Profit and Loss – Breakdown rsonal use only FY23 FY22 Growth JB HI-FI JB HI-FI JB HI-FI JB HI-FI vs FY22 TGG Group TGG Group AUDm AUST NZ (NZD) AUST NZ (NZD) Sales 6,546.1 292.1 2,813.0 9,626.4 6,196.5 262.4 2,789.4 9,232.0 4.3% ▲ Gross Profit 1,481.4 46.7 658.4 2,182.5 1,387.7 45.
Slide 41: Appendix III: Group store reconciliation
Appendix III 322 stores across Australia and New Zealand1 Group store reconciliation rsonal use only FY23 FY22 Opened Converted Closed Total 1 Australia 2 JB HI-FI 139 2 1 (2) 140 23 JB HI-FI HOME 60 3 (1) - 62 14 40 199 5 - (2) 202 23 New Zealand 5 JB HI-FI 14 - - - 14 JB HI-FI HOME - - - - - 11 30
Slide 42: Important Notice and Disclaimer
Important Notice and Disclaimer The material in this presentation is general background information about JB Hi-Fi Limited (ACN 093 220 136) (JB Hi-Fi) and its rsonal use only activities current as at the date of the presentation, 14th August 2023. It is information given in summary form and does no