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For personal use only JB Hi Fi Limited JB Hi-Fi Limited Full Year Results Presentation 30 June 2011 30 June 2011 8 August 2011 Agenda For personal use only 1. Performance Summary 2. Historic Performance 3. Profit and Loss Statement 4.

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SLIDE 1

JB Hi Fi Limited JB Hi-Fi Limited

Full Year Results Presentation 30 June 2011 30 June 2011

8 August 2011

For personal use only

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SLIDE 2

Agenda

1. Performance Summary 2. Historic Performance 3. Profit and Loss Statement 4. Trading Performance 5. Share Buy-back and Clive Anthonys Restructure y y 6. Outlook 7. Cash Flow and Balance Sheet 8. Dividends 9. Store Update 9. Store Update 10. Investment Checklist

Terry Smart Richard Murray CEO CFO

For personal use only

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SLIDE 3
  • 1. PERFORMANCE SUMMARY

FY10 FY11 FY11 G th

Strong performance for 12 months to 30 June 2011

FY10 FY11 FY11

Statutory Statutory Normalised1

 Sales $2.73b $2.96b $2.96b 8.3% Growth

Normalised1

 Gross Margin 21.8% 22.0% 22.0% +28 bps  Cost of Doing Business 14.5% 15.6% 14.5% 0 bps

EBIT $175.1m $162.6m $196.0m 11.9%  EBIT Margin 6.4% 5.5% 6.6% +21 bps $ $ $

  

 NPAT $118.7m $109.7m $134.4m 13.3%  Earnings per share 109.7 cps 101.8 cps 124.7 cps 13.6%  Total dividend fully franked 66 0 cps 77 0 cps 77 0 cps +11 0 cps

  

 Total dividend - fully franked 66.0 cps 77.0 cps 77.0 cps +11.0 cps

(Final dividend - fully franked2 = 29.0 cps)

3

1

FY11 normalised excludes the Clive Anthonys one-off restructuring charge announced in March 2011 ($24.7m post tax).

2

Final dividend represents a payout ratio of 60% of normalised 2HY11 earnings - to be paid on 2nd September 2011 (record date 23rd August 2011).

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SLIDE 4
  • 2. HISTORIC PERFORMANCE

Continuation of strong grow th in sales and earnings since MBI in July 2000

124.7cps

+14%

196.0m

+12%

134.4m

+13%

SALES +8% EBIT +12% NPAT +13%

(i)

EPS +14%

(i) (i) (i) (i) (i)

2.96b

+8%

88.3cps 109.7cps

+43% +24%

142.0m 175.1m

+23% +12% +39%

94.4m 118.7m

+45% +26%

+

2.33b 2.73b

+27% +17%

E ~$3.2b

+8%

61.8cps

+59% +43%

102.3m

+56%

65.1m

+61% +45%

1.28b 1.83b

+36% +43%

AR GUIDANCE

38.8cps

+55%

65.5m

+47%

40.4m

+57% 36%

FULL YEA

FY07 FY08 FY09 FY10 FY11 FY07 FY08 FY09 FY10 FY11 FY07 FY08 FY09 FY10 FY11 FY07 FY08 FY09 FY10 FY11 FY12F

4

(i) Normalised (excludes Clive Anthonys one-off restructuring charge)

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SLIDE 5
  • 3. PROFIT AND LOSS STATEMENT

AUST NZ (NZD) CONSOLIDATED

3

$m

FY10 FY11 Growth FY10 FY11 Growth FY10 FY11 Growth

Sales 2,598.0 2,814.6 8.3% 167.3 188.7 12.8% 2,731.3 2,959.3 8.3% Gross Profit 573.4 627.0 9.4% 26.0 32.6 25.2% 594.2 652.0 9.7% Gross Margin 22 1% 22 3% +21 bps 15 6% 17 3% +171 bps 21 8% 22 0% +28 bps

( )

Gross Margin 22.1% 22.3% +21 bps 15.6% 17.3% +171 bps 21.8% 22.0% +28 bps EBITDA1 200.3 222.7 11.2% (2.4) 0.8 132.1% 198.4 223.3 12.5% Depreciation & Amortisation 21.7 25.5 2.0 2.3 23.3 27.3 EBIT1 178.6 197.2 10.4% (4.3) (1.6) 64.0% 175.1 196.0 11.9% EBIT Margin1 6 9% 7 0% +13 bps (2 6%) (0 8%) +177 bps 6 4% 6 6% +21 bps EBIT Margin 6.9% 7.0% +13 bps (2.6%) (0.8%) +177 bps 6.4% 6.6% +21 bps Normalised NPAT 118.7 134.4 13.3% Significant item4

  • (24.7)

NPAT after Significant Item 118.7 109.7

  • 7.5%

g Headline Statistics: Earnings per share (basic ¢)1 109.7 124.7 13.6% Cost of doing business1 14.4% 14.4% +0.4 bps 17.0% 16.9%

  • 11 bps

14.5% 14.5%

  • 0.1 bps

Stores2 131 144 +13 stores 10 13 +3 stores 141 157 +16 stores

5

1 FY11 has been normalised (excludes significant item - Clive Anthonys one-off restructuring charge). 2 In FY11, 18 JB Hi-Fi stores opened (Aust: 15, NZ: 3), four Clive Anthonys stores were converted to JB Hi-Fi stores and two Clive Anthonys stores were closed. 3 Refer to Appendix II(c) for NZ P&L in AUD. 4 Significant item (Clive Anthonys one-off restructuring charge).

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SLIDE 6
  • 4. TRADING PERFORMANCE

Sales Growth FY11 Comps.

Sales

S l ti d t b i t d b bd d

JB Hi-Fi

  • Australia

9.9% (0.5%) (0.9%) 0.1%

  • New Zealand (NZD)

28.3% 2.4% 3.9% 1.0% FY11 Comps. 1HY11 2HY11 Total Comps.

  • Sales continued to be impacted by subdued consumer

spending.

  • However comparable sales for JB Hi-Fi stores were positive in

the second half in both Australia and New Zealand (NZD).

(ii)

Total JB Hi-Fi (AUD) 10.5% (0.5%) (0.8%) (0.1%) Clive Anthonys (15.5%) (13.5%) (13.3%) (14.8%) Consolidated (AUD) 8.3% (1.2%) (1.5%) (1.0%)

  • Our market share continued to grow throughout the period.

Australia:

  • JB Hi-Fi branded store sales grew by 9.9% to $2.7b.

(i) (ii)

  • JB Hi-Fi stores consumer electronics (CE) sales, which represents approximately 75% of total sales, grew by 15.2% in

the period. Comparable sales growth was 4.1%, with strong growth in Computers, IT and Telco.

  • JB Hi-Fi stores software (music, movies and games), which represents approximately 25% of total sales, declined on a

comparable store basis by 9.1%, driven predominantly by the games category at negative 16.8%. This reduction came comparable store basis by 9.1%, driven predominantly by the games category at negative 16.8%. This reduction came primarily from the casual gaming category of Wii, PSP and NDS. However we continue to gain market share and saw comparable store growth in PS3, Xbox and PC gaming.

  • We continue to invest in all software categories, with it being an important part of our new store roll-out program.

New Zealand:

  • JB Hi-Fi branded store sales grew by 28.3% to NZ$188.7m.

6

(i)

Consolidated FY11 total sales growth was impacted by the inclusion of the closed New Zealand H&S branded stores in the 2010 comparative period.

(ii)

Impacted due to exchange rate conversion.

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SLIDE 7
  • 4. TRADING PERFORMANCE…

Gross Margin

  • Consolidated gross margin was 22.0%, a 28 bps increase on the prior period.

g g %, p p p FY10 FY11 Growth

Australia 22.1% 22.3% +21 bps New Zealand 15.6% 17.3% +171 bps Consolidated 21 8% 22 0% +28 bps

  • The strength in gross margin was pleasing given the increased discounting within the market.
  • We remain passionate about our low price promise and based on regular monitoring of competitor activity, review our

pricing daily.

Consolidated 21.8% 22.0% +28 bps

  • Increased scale drove improved levels of supplier support, with the majority of the benefit returned to customers in

the form of lower prices.

  • Accessories merchandising and add-on sales strategy concentrated on margin generating products.
  • Continued management focus on inventory management: out of stocks, shrinkage and obsolescence.

g y g g

Gross Margin (5 yrs)

22.1% 21.9% 21.6% 21.8% 22.0%

FY07 FY08 FY09 FY10 FY11

7

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SLIDE 8
  • 4. TRADING PERFORMANCE…

Cost of Doing Business (CODB)

  • Consolidated CODB was flat at 14.5%.

(i)

FY10 FY11 Growth

Australia 14.4% 14.4% +0.4 bps New Zealand 17.0% 16.9%

  • 11 bps

Consolidated 14 5% 14 5%

  • 0 1 bps

(i)

  • In Australia, our CODB was flat at 14.4%. A pleasing result given the 4.28% retail award wage increase on 1 July 2010 and

flat comparable store sales.

  • New Zealand benefited from continued improvement in operating leverage as sales grew.

Consolidated 14.5% 14.5%

  • 0.1 bps

(i)

New Zealand benefited from continued improvement in operating leverage as sales grew.

  • This FY11 result demonstrates the strength and dynamic nature of our model. Our systems allow us to flex with the

changing market conditions whilst ensuring that customer service is maintained at the highest level.

CODB (5

)

CODB (5 yrs)

16.1% 15.4% 14.7% 14.5% 14.5%

FY07 FY08 FY09 FY10 FY11

8

(i)

Normalised (excludes Clive Anthonys one-off restructuring charge).

(i)

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SLIDE 9
  • 4. TRADING PERFORMANCE…

Earnings

  • EBIT increased 11.9% to $196.0m.

(i)

FY10 FY11 Growth

Australia ($m) 178.6 197.2 10.4%

  • margin (%)

6.9% 7.0% +13 bps New Zealand (NZ$m) (4.3) (1.6) 64.0% i (%) (2 6%) (0 8%) 177 b

$

(i)

  • margin (%)

(2.6%) (0.8%) +177 bps Consolidated ($m) 175.1 196.0 11.9%

  • margin (%)

6.4% 6.6% +21 bps

  • Overall EBIT growth was driven by a combination of improved gross profit and a flat cost of doing business.

$ $ % $

  • In New Zealand we increased EBITDA by NZ$3.2m to NZ$0.8m and reduced our EBIT loss by 64.0% to NZ$1.6m.
  • Depreciation increased 17.2% on a consolidated basis and reflected our store rollout program and ongoing

merchandising upgrades in our existing stores.

  • NPAT was up 13.3% to $134.4m.

(i)

EBIT Margin NPAT

$65.1m $94.4m $118.7m $134.4m 5.6% 6.1% 6.4% 6.6% $40.4m

FY07 FY08 FY09 FY10 FY11

5.1%

FY07 FY08 FY09 FY10 FY11

9

(i) Normalised (excludes Clive Anthonys one-off restructuring charge).

(i) (i)

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SLIDE 10
  • 4. TRADING PERFORMANCE…

Online

  • We continue to develop and refine our
  • nline presence as part of our

multichannel strategy.

  • Online sales grew 51.6% on the prior

year.

  • With our high number of unique

visitations (average 800,000 per week in July 2011) our online site is an increasingly important sales generator f b th i t d li l for both in store and online sales.

  • Our buying power and low cost of

business ensured we remained competitive online.

  • Focussed on ensuring that our unique

brand personality is consistent across all mediums (i.e. in store, online, mobile and print media).

10

Note: screen print taken from the JB Hi-Fi website on 29 July 2011 (prices current as at that date).

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SLIDE 11
  • 5. SHARE BUY-BACK AND CLIVE ANTHONYS RESTRUCTURE

Share Buy-back

  • In May 2011 we completed a $173 3m off-market share buy-back which resulted in the purchase of 10 8 million
  • In May 2011 we completed a $173.3m off-market share buy-back which resulted in the purchase of 10.8 million

shares, representing approximately 9.9% of the shares on issue.

  • The buy-back will improve our earnings per share and return on equity.
  • The buy-back was funded through an increase in our term debt facilities to $250m, which were extended out to

March 2014. We forecast our FY12 interest expense to be in the range $13m to $15m.

  • Our key internal measures of Fixed Charges and Gearing remain strong and continue to be comfortably within

internal targets.

  • We are confident, post the buy-back, that our balance sheet remains strong with the flexibility to fund future growth

, p y , g y g

  • pportunities.

Clive Anthonys Restructure

  • In March 2011 we announced a restructure of our Clive Anthonys business including a one-off charge of $33.4m

($24.7m post tax) which is being treated as a significant item in our financial statements.

  • We are pleased with the progress of our restructuring plans.

– Four stores in Queensland have been converted to JB Hi-Fi stores – Four stores in Queensland have been converted to JB Hi-Fi stores. – Two stores have been closed with the cost of exit in line with our expectations.

11

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SLIDE 12
  • 6. OUTLOOK

Stores

 T di O tl k  Trading Outlook

  • We anticipate opening 16 new JB Hi-Fi stores in FY12 (Aust: 16, NZ: 0).
  • Maintain our target of 214 JB Hi-Fi branded stores (164 Tier 1 and 50 Tier 2 format) in Australia and New
  • Zealand. This includes the four Clive Anthonys stores that were recently converted to JB Hi-Fi stores.
  • The recently opened Tier 2 stores continue to perform in line with internal expectations.
  • FY12 YTD Trading Update:
  • Total sales growth for the JB Hi-Fi branded stores in July was 6.4%; and
  • Comparable store sales growth for the JB Hi-Fi branded stores in July was negative 3.3%.
  • While we anticipate the market to remain challenging, our diversified product portfolio, particularly the categories
  • f computers, telco and accessories, from which we expect strong growth, will assist JB in delivering another

year of solid sales and earnings in FY12.

  • Assuming trading conditions are comparable with FY11, we expect sales in FY12 to be circa $3.2b, an 8%

increase on the prior year increase on the prior year.

 Category Outlook

  • All categories expected to remain very competitive.
  • Constant technology innovation will drive continued industry growth.
  • Computers – Expansion of tablet category and the introduction of a new notebook subcategory, Ultrabook.
  • Telecommunications – Continued strong growth in the Smart Phone category with iPhone 5 expected to be

released in the first half of FY12.

12

  • Games – Continued share growth in PS3 and Xbox software and hardware. Launch in FY12 of Sony’s new

handheld gaming device, PlayStation Vita.

  • Accessories – New merchandising layouts will drive sales and assist with gross margin.

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SLIDE 13
  • 6. OUTLOOK…

Online

 Expect continued strong sales growth from online.  Continued enhancement to the customer online experience including:

Pi k t t Thi ill b dditi t li it

  • Pick up at store. This will be a new addition to our online site

which provides customers greater convenience to browse and transact online then pick up direct from desired store.

  • Introduction of a mobile friendly website to browse, explore

and transact online This application also displays our latest and transact online. This application also displays our latest promotions and ‘What’s New’.

  • New gift card module enables our customers to activate and

manage their JB Hi-Fi Gift Cards online.

 O f  Our buying power and low cost of doing business ensures we can remain competitive online.  We will continue to explore opportunities to expand

  • ur online offering
  • ur online offering.

 Online will continue to be an important sales generator for bricks and mortar.

13

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SLIDE 14
  • 6. OUTLOOK…

Digital

 New “JB HI-FI NOW” music service anticipated to launch in the second quarter of FY12.

  • JB Hi-Fi to launch new music subscription streaming

service service.

  • This new service will leverage off our strong music

heritage.

  • Natural extension to our current physical music sales.
  • Will enable us to engage with customers however they choose to consume music.
  • Intended staged roll-out over the next quarter with Mac and PC based web client, with a mobile solution to be

added shortly after.

  • Plan to have between 6 to 8 million tracks from 100,000 artists at launch which will continue to grow over time.
  • Unlimited access and listening from Mac or PC.
  • Service will continue to evolve with the later addition of a music download store.

 Post launch, the “JB HI-FI NOW” digital platform will continue to develop and provide us with

  • pportunities to leverage our existing strong software supplier relationships.

14

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SLIDE 15
  • 7. CASH FLOW & BALANCE SHEET

Cash Flow Statement

AUDm

FY10 FY11

EBITDA 198.4 223.3 Change in Working Capital 1.2 (62.2) N t I t t P id (5 0) (3 8)

(i)

Net Interest Paid (5.0) (3.8) Income Tax Paid (53.5) (52.2) Other 11.0 4.8 Net Cash Flow from Operations 152.1 109.9 Purchases of P&E (53 4) (43 9) Purchases of P&E (53.4) (43.9) Payments for intangible assets (2.4)

  • Net Cash Flow from Investing

(55.8) (43.9) Free Cash Flow 96.3 66.0 Borrowings / (Repayments) (20 0) 162 4

(ii)

Borrowings / (Repayments) (20.0) 162.4 Share Buy-Back

  • (174.1)

Proceeds from issue of Equity 6.8 9.3 Dividends Paid (67.1) (88.4) Net Cash Flow from Financing (80.2) (90.9) Net Change in Cash Position 16.1 (24.8) Effect of exchange rates (0.1) 0.3 Cash at the end of Period 51.7 27.2

15

(i) Normalised (excludes Clive Anthonys one-off restructuring charge). (ii) Free Cash Flow = Net Cash Flow from Operations less payments for store related assets (excludes investments).

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SLIDE 16
  • 7. CASH FLOW & BALANCE SHEET…

AUDm FY10 FY11

  • Inventory Management

Working Capital and Key Ratios

AUDm FY10 FY11 (Increase)/decrease in current assets Inventory (10.0) (73.4) Receivables (3.4) 5.1 Other current assets 1.1 (4.1)

  • Inventory Management.
  • Inventory levels and mix are in line with internal
  • expectations. The movement from the prior year was

due primarily to: $49 1m invested in FY11 new store inventory ( ) Increase/(decrease) in current liabilities Trade creditors 15.6 12.6 Other current liabilities (2.1) (2.3)

  • $49.1m invested in FY11 new store inventory.
  • $7m of prepaid private label inventory.
  • $4.4m of inventory held for FY12 stores.
  • Like for like inventory turnover was 6.7 times

Net Movement in Working Capital 1.2 (62.2) Performance Indicators: (pcp: 6.9 times).

  • Inventory turnover was 6.2 times (pcp: 6.5 times).
  • Receivables relate predominately to supplier rebates and

the movement is due to timing. Inventory Turnover 6.5x 6.2x Creditor Days 48.1 46.8 Fixed Charge Ratio 3.9x 4.0x Interest Cover 25.2x 31.3x Return on Equity 40 5% 75 9%

  • Creditor days were down marginally from the prior period

which reflects changes in supplier mix and is in line with expectations.

  • Fixed charges ratio at 4.0 times, coupled with high

(i),(ii) (i),(ii) (i)

Return on Equity 40.5% 75.9% Return on Invested Capital 56.3% 50.1% interest cover is a good indication of JB Hi-Fi’s strong balance sheet and low financial and operational leverage.

  • Return on Equity has improved predominantly due to the

share b back

(i)

16

share buy-back.

  • Return on Invested Capital has declined due primarily to

the movement in working capital.

(i)

FY11 ratios have been normalised (excludes the Clive Anthonys one-off restructuring charge).

(ii)

On a statutory basis, the FY11 Fixed Charges ratio was 3.5x and FY11 Interest Cover was 25.9 times.

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SLIDE 17
  • 7. CASH FLOW & BALANCE SHEET…

Balance Sheet

AUDm

FY10 FY11

Cash 51.7 27.2 Receivables 63.5 58.3 Inventories 334 8 406 9 Inventories 334.8 406.9 Other 4.5 8.6 Total Current Assets 454.5 501.1 Fixed Assets 164.0 169.6 Brandname & Goodwill 83 9 78 7 Brandname & Goodwill 83.9 78.7 Other 12.0 17.8 Total Non-Current Assets 259.8 266.1 Total Assets 714.3 767.1 Payables 289.5 301.6 Borrowings 35.0

  • Other

38.6 44.3 Total Current Liabilities 363.1 345.9 B i 34 6 232 6 Borrowings 34.6 232.6 Other 23.3 36.3 Total Non-Current Liabilities 57.9 268.9 Total Liabilities 421.0 614.8

17

Net Assets 293.3 152.3 Net Debt / (Net Cash) 17.9 205.3

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SLIDE 18
  • 8. DIVIDENDS

Dividends

  • The final dividend is 29 0 cents per share fully franked
  • The final dividend is 29.0 cents per share fully franked.
  • Total dividends of 77.0 cents per share represents a 16.7%

increase over the prior year.

  • This represents a payout ratio of 60% of normalised FY11

77 cps +17%

(i)

29.0

p p y earnings and further underlines the Board’s confidence in our strong cash flow generation.

  • Our strong balance sheet has enabled us to return $261.7m to

h h ld i th t 12 th

+17%

(ii)

Final Interim

shareholders in the past 12 months.

44.0 66.0 48.0

7.2 7.2 7.6

11.0 26.0

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Dividends (cps)

18

(i)

Excludes Clive Anthonys one-off restructuring charge.

(ii)

Final FY10 dividend of 33 cps ($35.9m), interim FY11 dividend of 48 cps ($52.5m) and the buy-back ($173.3m).

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SLIDE 19
  • 9. STORE UPDATE

18 new JB Hi-Fi stores opened in FY11

  • 18 JB Hi-Fi stores opened in FY11:

 VIC: Airport West, Bayside Frankston, Chadstone – Warrigal Rd, Forrest Hill, Mildura, Sunshine  NSW: Charlestown, Merrylands, Westfield Sydney

13

 NZ: Bayfair, Dunedin, Sylvia Park  QLD: Cairns Stockland, Maroochydore  WA: Booragoon, Bunbury, Mandurah

FY11 157 stores

14 10 13

NZ AUST

 SA: Munno Parra

  • 5 of the FY11 stores are classified as Tier 2.
  • 4 Clive Anthonys stores were converted to JB Hi-Fi stores.

2 Cli A th t l d (L b d F h i k)

141 123 105

131 144

12 12

  • 2 Clive Anthonys stores were closed (Labrador, Fyshwick).

89

32 48 66 77 93 109 10 15 21 26 32

Acquired July 2000 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11

Total Stores

19

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SLIDE 20
  • 9. STORE UPDATE…

16 new JB Hi-Fi stores to be opened in FY12

  • 16 JB Hi-Fi stores to be opened in FY12 including:

 VIC: Greensborough#, Hoppers Crossing#, Traralgon, Thomastown, Springvale  NSW: Caringbah#, Bankstown, Jamisontown, North Sydney

13

NZ

 QLD: Mackay, Garden City  AUST: 5 undisclosed

  • 6 of the FY12 stores are classified as Tier 2.

FY12F 172 stores

157

14 10 13

NZ AUST

  • 1 JB Hi-Fi store was closed in July 2011 (Keilor).

141 123 105 157

131 144 159

12 12

# open as at 8th August 2011

105 89

21 26 32 48 66 77 93 109 10 15 21 26

Acquired July 2000 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12F

Total Stores

20

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SLIDE 21
  • 10. INVESTMENT CHECKLIST

 Strong and unique retail model.  Operates mainly in high growth home entertainment and technology sector.  Low cost of doing business – best of listed retailers.  Many new store opportunities

  • JB Hi-Fi circa 214 (164 Tier 1 format and 50 Tier 2 format) in Australia and

New Zealand (152 as at FY11).

 Good continued growth from existing categories, such as computers and telco.  Online and digital strategies designed to leverage off existing strong brand

h it heritage.

 Size and continued high growth gives us great buying power and advertising

synergies.

 Low capital investment and high return on invested capital.  Proactive capital management initiatives including share buyback and 60%

dividend payout ratio dividend payout ratio.

 Strength and depth of board and management.

21

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SLIDE 22

Appendix I Geographic breakdown# Store movements during FY11

Opened Rebranded Closed

Total Australia JB - Tier 1 107 12 4

  • 123

JB - Tier 2 13 3

  • 16

FY10 FY11

1 32

JB Tier 2 13 3 16 120 15 4

  • 139

Clive Anthonys 11

  • (4)

(2) 5 131 15

  • (2)

144 New Zealand JB Tier 1 8 1 9

32 9 17

JB - Tier 1 8 1

  • 9

JB - Tier 2 2 2

  • 4

10 3

  • 13

TOTAL 141 18

  • (2)

157 JB Hi Fi store type:

39 41 4

JB Hi-Fi store type: Tier 1 115 13 4

  • 132

Tier 2 15 5

  • 20

130 18 4

  • 152

Store format:

13 1

Shopping centres 65 13

  • 78

Other 76 5

  • (2)

79 141 18

  • (2)

157

# as at 30 June 2011

22

NZ

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SLIDE 23

Appendix II

AUDm FY10 FY11 Other income (ex interest received) (0.3) (0.1)

a) EBIT reconciliation b) CODB reconciliation

AUDm FY10 FY11 Profit for the year (App 4E) 118 7 109 7 ( ) ( ) ( ) Sales and marketing expenses (App 4E) 265.1 286.8 Occupancy expenses (App 4E) 101.1 114.8 less depreciation & amortisation (17.2) (20.2) Administration expenses (App 4E) 24.9 26.9 less depreciation & amortisation (6.1) (7.1) Other expenses (App 4E) 28 2 27 7 Profit for the year (App 4E) 118.7 109.7 add back

  • income tax expense (App 4E)

50.9 48.9 Profit before Tax 169.6 158.6 add back Other expenses (App 4E) 28.2 27.7 Significant item (App 4E)

  • 33.4

Cost of Doing Business (CODB) 395.8 462.1 less Clive Anthonys one-off restructuring charge

  • 33.4
  • interest received

(1.4) (2.2)

  • interest expense (App 4E)

7.0 6.3

  • net interest expense

5.5 4.0 Earnings before interest and tax (EBIT) 175.1 162.6 add back Cost of Doing Business (CODB)1 395.8 428.8 Sales 2,731.3 2,959.3 CODB (% of sales)1 14.5% 14.5% add back Clive Anthonys one-off restructuring charge

  • 33.4

Earnings before interest and tax (EBIT)1 175.1 196.0 CODB % (STAT) 14.5% 15.6%

c) NZ Profit and Loss statement (AUD)

AUDm FY10 FY11 Profit for the year (App 4E) 118 7 109 7

d) NPAT reconciliation

$m

FY10 FY11 Growth

Sales 133.3 144.6 8.5%

NZ (AUD)

Profit for the year (App 4E) 118.7 109.7 add back Clive Anthonys one-off restructuring charge

  • 33.4

less tax effect

  • (8.6)
  • 24.7

Gross Profit 20.7 25.0 20.4% Gross Margin 15.6% 17.3% +171 bps EBITDA (1.9) 0.6 130.8% Depreciation & Amortisation 1.6 1.8 EBIT (3.5) (1.2) 65.4%

23

1 FY11 has been normalised (excludes Clive Anthonys one-off restructuring charge).

Normalised profit from the year1 118.7 134.4 EBIT Margin (2.6%) (0.8%) +177 bps Headline Statistics: Cost of doing business 17.0% 16.9%

  • 11 bps

Stores 10 13 +3 stores

For personal use only

slide-24
SLIDE 24

Appendix III Profit and Loss Statement (5 years)

AUDm FY07 FY08 FY09 FY10 FY11 FY11 Sales 1,281.8 1,828.6 2,327.3 2,731.3 2,959.3 2,959.3 Gross Profit 283 4 399 7 503 6 594 2 652 0 652 0

(ii) (i)

Gross Profit 283.4 399.7 503.6 594.2 652.0 652.0 Gross Margin 22.1% 21.9% 21.6% 21.8% 22.0% 22.0% EBITDA 76.4 117.0 160.7 198.4 189.9 223.3 Depreciation & Amortisation 10.9 14.7 18.7 23.3 27.3 27.3 EBIT 65 5 102 3 142 0 175 1 162 6 196 0 EBIT 65.5 102.3 142.0 175.1 162.6 196.0 EBIT Margin 5.1% 5.6% 6.1% 6.4% 5.5% 6.6% Net Profit After Tax 40.4 65.1 94.4 118.7 109.7 134.4 Headline Statistics:

(iii)

Headline Statistics: Earnings per share (basic ¢) 38.8 61.8 88.3 109.7 101.8 124.7 Cost of doing business 16.1% 15.4% 14.7% 14.5% 15.6% 14.5% Stores at period end 89 105 123 141 157 157

24

(i)

Statutory (includes Clive Anthonys one-off restructuring charge).

(ii)

Normalised (excludes Clive Anthonys one-off restructuring charge).

(iii)

Net of OEI.

For personal use only

slide-25
SLIDE 25

Appendix III… Balance Sheet (5 years)

AUDm FY07 FY08 FY09 FY10 FY11 Cash 23.7 (1.5) 35.8 51.7 27.2 Receivables 45.2 53.0 60.3 63.5 58.3 Inventories 211 3 271 9 324 5 334 8 406 9 Inventories 211.3 271.9 324.5 334.8 406.9 Other 3.5 5.3 5.7 4.5 8.6 Total Current Assets 283.7 328.7 426.2 454.5 501.1 Fixed Assets 80.9 112.9 136.1 164.0 169.6 Brandname & Goodwill 80.7 81.2 81.4 83.9 78.7 Other 8.6 11.5 18.0 12.0 17.8 Total Non-Current Assets 170.2 205.6 235.4 259.8 266.1 Total Assets 454.0 534.3 661.7 714.3 767.1 Payables 185 3 206 1 274 0 289 5 301 6 Payables 185.3 206.1 274.0 289.5 301.6 Borrowings

  • 35.0
  • Other

24.7 31.8 49.8 38.6 44.3 Total Current Liabilities 210.0 237.9 323.7 363.1 345.9 Borrowings 117.7 123.0 89.4 34.6 232.6 Borrowings 117.7 123.0 89.4 34.6 232.6 Other 7.5 9.5 19.3 23.3 36.3 Total Non-Current Liabilities 125.2 132.5 108.7 57.9 268.9 Total Liabilities 335.2 370.4 432.4 421.0 614.8 Net Assets 113 1 163 9 229 3 293 3 152 3

(i)

Net Assets 113.1 163.9 229.3 293.3 152.3

25

(i) Net of OEI.

For personal use only

slide-26
SLIDE 26

Appendix III… Cash Flow Statement (5 years)

AUDm FY07 FY08 FY09 FY10 FY11 EBITDA 76.4 117.0 160.7 198.4 223.3 Change in Working Capital 5.6 (44.8) 19.6 1.2 (62.2) N t I t t P id (7 1) (8 9) (6 7) (5 0) (3 8)

(i)

Net Interest Paid (7.1) (8.9) (6.7) (5.0) (3.8) Income Tax Paid (15.2) (28.0) (41.3) (53.5) (52.2) Other 4.5 7.1 13.3 11.0 4.8 Net Cashflow from Operations 64.1 42.4 145.6 152.1 109.9 Purchases of P&E (34 4) (51 3) (43 9) (53 4) (43 9) Purchases of P&E (34.4) (51.3) (43.9) (53.4) (43.9) Investments (19.2) (8.2)

  • Payments for intangible assets
  • (2.4)
  • Net Cashflow from Investing

(53.6) (59.5) (43.9) (55.8) (43.9) Free Cash Flow 29.7 (8.9) 101.7 96.3 66.0

(ii)

Free Cash Flow 29.7 (8.9) 101.7 96.3 66.0 Borrowings / (Repayments) 15.8 5.8 (35.3) (20.0) 162.4 Proceeds from issue of Equity 2.2 3.0 4.2 6.8 9.3 Share Buy-Back

  • (174.1)

Dividends Paid (9.4) (16.9) (33.2) (67.1) (88.4) ( ) ( ) ( ) ( ) ( ) Net Cashflow from Financing 8.6 (8.1) (64.3) (80.2) (90.9) Net Change in Cash Position 19.2 (25.2) 37.4 16.1 (24.8) Effect of exchange rates

  • (0.1)

(0.1) 0.3 Cash at the end of Period 23 7 (1 5) 35 8 51 7 27 2 Cash at the end of Period 23.7 (1.5) 35.8 51.7 27.2

26

(i) Normalised (excludes Clive Anthonys one-off restructuring charge) (ii) Free Cash Flow = Net Cash Flow from Operations less payments for store related assets (excludes investments).

For personal use only