For personal use only JB�Hi-Fi�Limited JB�Hi-Fi�Limited F ll Y Full Year Results Presentation R lt P t ti 30 June 2013 12 A 12 August 2013 t 2013
AGENDA For personal use only 1. Performance 2. Profit and Loss Statement 3. Trading Performance 4. FY13 Store Update 5. 5. Online Online 6. Digital 7. Commercial 8 8. HOME HOME 9. Cash Flow and Balance Sheet 10. Dividends 11. Key Competitive Advantages 12. Growth Opportunities 13. 13. FY14 Store Update FY14 Store Update 14. Trading Outlook 15. Investment Checklist Terry Smart Richard Murray CEO CFO
1.�PER FOR M ANCE�– F Y 13�HIGHLIGHTS For personal use only Total sales up 5 8% Total sales up 5.8% 2 nd half total sales up 10.3% 2 nd half comparable sales up 3 2% 2 half comparable sales up 3.2% Gross margin up 43 bps NPAT NPAT up 11.2% 11 2% EPS up 11.1% Total dividend up 10.8% to 72 cps 3
1.�PER FOR M ANCE�- SUMM ARY For personal use only FY12 FY12 FY13 FY13 Mvt Mvt Total Sales $3.13b $3.31b +5.8% Gross Margin 21.1% 21.5% +43 bps Cost of Doing Business 14.9% 15.1% +18 bps EBIT $161.5m $177.8m +10.1% +21 bps EBIT Margin EBIT Margin 5.2% 5 2% 5 4% 5.4% +21 bps NPAT 1 $104.6m $116.4m +11.2% Earnings per share 105.9 cps 117.7 cps +11.1% Total dividend - fully franked 2 +7.0 cps 65.0 cps 72.0 cps 1 FY13 profit attributable to owners of JB Hi-Fi Limited, excludes 49% of the profits of Network Neighborhood, which is 51% owned by the Company. 2 The final FY13 dividend is 22.0 cents per share and represents a payout ratio of circa 60% of 2HY13 earnings, to be paid on p p p y g , p 6 th September 2013 (record date 23 rd August 2013). 4
2.�PR OFI T�AND�LOSS�STAT E MEN T For personal use only 1 AUST NZ (NZD) CONSOLIDATED FY12 FY13 FY12 FY13 FY12 FY13 $m Growth Growth Growth Sales 2,954.6 3,140.8 6.3% 222.2 209.4 -5.7% 3,127.8 3,308.4 5.8% 629.3 39.2 659.8 Gross Profit 682.5 8.5% % 37.1 -5.5% % 712.2 7.9% % Gross Margin 21.3% 21.7% +43 bps 17.7% 17.7% +4 bps 21.1% 21.5% +43 bps EBITDA 187.5 207.1 10.4% 6.0 4.8 -19.6% 192.2 211.0 9.8% Depreciation & Amortisation 28.9 31.2 8.1% 2.4 2.5 4.7% 30.8 33.2 8.1% EBIT 158.7 175.9 10.9% 3.6 2.3 -35.8% 161.5 177.8 10.1% EBIT Margin 5.4% 5.6% +23 bps 1.6% 1.1% -52 bps 5.2% 5.4% +21 bps NPAT 2 104.6 116.4 11.2% Headline Statistics: Earnings per share (basic ¢) 105.9 117.7 +11.1% Cost of doing business 3 3 C t f d i b i 14 9% 14.9% 15 1% 15.1% +17 bps 17 b 15 0% 15.0% 15.4% 15 4% +43 bps 43 b 14 9% 14.9% 15 1% 15.1% +18 bps 18 b Stores 4 155 164 +9 stores 13 13 - 168 177 +9 stores 1 Refer to Appendix II(b) for NZ P&L in AUD. 2 Profit attributable to owners of JB Hi-Fi Limited, excludes 49% of the profits of Network Neighborhood, which is 51% owned by the Company. 3 Refer to Appendix II(d) for reconciliation of consolidated CODB. 4 In FY13, 13 JB Hi-Fi stores opened (Aust: 13, NZ: Nil) and eight JB Hi-Fi (Aust) stores were converted to JB HI-FI HOME. One Clive Anthonys store and three sub-scale JB Hi-Fi (Aust) stores were closed. 5
3.�T R ADING�PER FOR M ANCE For personal use only Sales Sales Growth Sales Growth Australia: 1HY13 2HY13 FY13 1 1 1 Total Comps. Total Comps. Total Comps. Sales grew by 6.3% to $3.14b. Australia 2.8% (3.4%) 10.9% 3.5% 6.3% (0.5%) We saw positive momentum in the 2 nd half with comparable 1 New Zealand (NZD) (6.0%) (5.6%) (5.4%) (5.4%) (5.7%) (5.5%) sales up 3.5% and total sales up 10.9%. Total 2.3% (3.5%) 10.3% 3.2% 5.8% (0.6%) Hardware 2 sales in FY13 were up 9.0%, with comparable 1 sales up 2.2%. In the Visual category, full year comparable 1 sales were 1 I th Vi l t f ll bl l S l Sales Category Splits by Value (Total Aust) C t S lit b V l (T t l A t) down 11.9%, however sales showed improvement in the 2 nd half being down 3.6%. 21.5% 23.5% Software sales (Music, Movies and Games) in FY13 were negative 2.6% and, on a comparable 1 basis were negative 8.9%. The rate of decline in comparable software sales was lower than that in FY12. 78.5% 78 5% 76.5% 76 5% FY12 FY13 2 1 Excludes Clive Anthonys. Hardware Software 2 Hardware is defined as all sales excluding the Music, Movies and Games software categories. 6
3.�T R ADING�PER FOR M ANCE . . . For personal use only Sales (cont.) Sales Growth Sales Growth N New Zealand: Z l d 1HY13 2HY13 FY13 Sales declined by 5.7% to NZ$209.4m. Total Comps. Total Comps. Total Comps. Australia 2.8% (3.4%) 10.9% 3.5% 6.3% (0.5%) Comparable sales were negative 5.5%. New Zealand (NZD) (6.0%) (5.6%) (5.4%) (5.4%) (5.7%) (5.5%) Total 2.3% (3.5%) 10.3% 3.2% 5.8% (0.6%) Sales were impacted by cycling the Rugby World Cup in FY12 and an overall softer consumer electronics retail market. 7
3.�T R ADING�PER FOR M ANCE . . . For personal use only Gross Margin Consolidated gross margin was 21.5%, a 43 bps increase on Gross Margin the pcp. FY12 FY13 Australia 21.3% 21.7% In Australia, the gross margin in FY13 increased by 43 bps to New Zealand 17.7% 17.7% 21.7%. 21 1% 21.1% 21 5% 21.5% Total The market remained very competitive in the 2 nd half of FY13 however we did not experience the level of unsustainable discounting seen in the pcp. In New Zealand, gross margin increased 4 bps to 17.7% with Gross Margin our improving buying terms enabling the Company to continue to reinvest in price given the competitive market. 21.5% 21.1% FY12 FY13 8
3.�T R ADING�PER FOR M ANCE . . . For personal use only Cost of Doing Business (CODB) Consolidated CODB was 15.1%, up 18 bps over the pcp. CODB FY12 FY13 In Australia, CODB increased by 17 bps to 15.1% as a result Australia 14.9% 15.1% of both the +2.9% Fair Work Australia award increase on 1 New Zealand 15.0% 15.4% July 2012 (total increase of +10.6% over the last 3 years) 1 y ( y ) 14.9% 15.1% Total and the de-leveraging from lower comparable sales. Store wages, adjusted for the 2.9% Fair Work Australia award increase, remained flat as a percentage of sales, demonstrating the company’s ability to actively manage its demonstrating the company s ability to actively manage its CODB wages in line with the market, while remaining focused on customer service. In New Zealand, CODB increased by 43 bps to 15.4% driven by reduced operating leverage. 15.1% 14.9% FY12 FY13 1 The Fair Work Australia award increases (effective from 1 July each year) over the last 3 years were +4.3% (2010), +3.4% (2011) and +2.9% (2012). 9
3.�T R ADING�PER FOR M ANCE . . . For personal use only Earnings In Australia, EBIT was up 10.9% to $175.9m driven in part by EBIT MARGIN improved gross margins over the pcp. FY12 FY13 Australia 5.4% 5.6% In New Zealand, EBIT was down 35.8% to NZ$2.3m driven by New Zealand 1.6% 1.1% a weaker consumer electronics retail market. 5.2% % 5.4% % Total Consolidated EBIT margin was 5.4%, up 21 bps on the pcp. EPS was up 11.1% to 117.7 cents per share. EPS (cps) 117.7 105 9 105.9 FY12 FY13 10
4.�F Y 13�STOR E�UPDAT E For personal use only 13 JB Hi-Fi stores opened in FY13 13 JB Hi-Fi stores opened in FY13: NSW : Port Macquarie, Coffs Harbour, Tamworth, Broadway, Chatswood Chase, North Sydney VIC : Fountain Gate, The Glen, Barkly Square QLD : QLD : Bundaberg, Oxley Bundaberg Oxley ACT : Tuggeranong FY13 177 stores NT : Darwin (Berrimah) 168 5 of the FY13 stores are classified as Tier 2. 13 NZ NZ 157 157 13 AUST 8 JB Hi-Fi stores were converted to JB HI-FI HOME. 141 13 3 sub-scale JB Hi-Fi stores and 1 Clive Anthonys store 10 123 closed in FY13. 14 14 105 105 12 89 12 164 155 144 131 131 109 93 77 66 48 32 26 26 21 21 15 10 Acquired FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 July 2000 Total Stores 11
5.�onlIn e For personal use only Goal is a “Seamless customer experience” We continue to leverage the benefits of a strong online presence combined with our bricks and mortar locations In FY13, online sales grew 29.8% on the pcp to , g p p $65.9m or 2.0% of sales (FY12: 1.6%). Unique visitations grew 24.1% over the pcp to an average of 1.15 million per week. The new JB Hi-Fi site, to be launched in the first half of FY14, will enhance the customer experience with improved search functionality and richer product information. New responsive design will mean a seamless experience across computers, tablets and mobiles. 12
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