JBHi-FiLimited JBHi-FiLimited F ll Y Full Year Results - - PowerPoint PPT Presentation

JBHi-FiLimited JBHi-FiLimited

F ll Y R lt P t ti Full Year Results Presentation 30 June 2013

12 A t 2013 12 August 2013

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AGENDA

1. Performance 2. Profit and Loss Statement 3. Trading Performance 4. FY13 Store Update 5. Online 5. Online 6. Digital 7. Commercial 8 HOME 8. HOME 9. Cash Flow and Balance Sheet 10. Dividends 11. Key Competitive Advantages 12. Growth Opportunities 13. FY14 Store Update 13. FY14 Store Update 14. Trading Outlook 15. Investment Checklist

Terry Smart Richard Murray CEO CFO

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1.PER FOR M ANCE– F Y 13HIGHLIGHTS

• Total sales up 5 8%
• Total sales up 5.8%
• 2nd half total sales up 10.3%
• 2nd half comparable sales up 3 2%

2 half comparable sales up 3.2%

• Gross margin up 43 bps
• NPAT

11 2%

• NPAT up 11.2%
• EPS up 11.1%
• Total dividend up 10.8% to 72 cps

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1.PER FOR M ANCE- SUMM ARY

FY12 FY13 Mvt FY12 FY13

 Total Sales $3.13b $3.31b +5.8%  Gross Margin 21.1% 21.5% +43 bps

Mvt

   Cost of Doing Business 14.9% 15.1% +18 bps  EBIT $161.5m $177.8m +10.1%  EBIT Margin 5 2% 5 4% +21 bps    EBIT Margin 5.2% 5.4% +21 bps  NPAT1 $104.6m $116.4m +11.2%  Earnings per share 105.9 cps 117.7 cps +11.1%     Total dividend - fully franked2 65.0 cps 72.0 cps +7.0 cps

1 FY13 profit attributable to owners of JB Hi-Fi Limited, excludes 49% of the profits of Network Neighborhood, which is 51%

• wned 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 6th September 2013 (record date 23rd August 2013).

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2.PR OFI TANDLOSSSTAT E MEN T

$m

FY12 FY13

Growth

FY12 FY13

Growth

FY12 FY13

Growth Sales 2,954.6 3,140.8 6.3% 222.2 209.4

• 5.7%

3,127.8 3,308.4 5.8% Gross Profit 629.3 682.5 8.5% 39.2 37.1

• 5.5%

659.8 712.2 7.9%

AUST NZ (NZD) CONSOLIDATED

1

% % % 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 NPAT2 104.6 116.4 11.2% Headline Statistics: Earnings per share (basic ¢) 105.9 117.7 +11.1% C t f d i b i

3

14 9% 15 1% 17 b 15 0% 15 4% 43 b 14 9% 15 1% 18 b Cost of doing business3 14.9% 15.1% +17 bps 15.0% 15.4% +43 bps 14.9% 15.1% +18 bps Stores4 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.

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3.T R ADINGPER FOR M ANCE

Sales

Sales Growth

Australia:

• Sales grew by 6.3% to $3.14b.
• We saw positive momentum in the 2nd half with comparable1

Australia 2.8% (3.4%) 10.9% 3.5% 6.3% (0.5%) New Zealand (NZD) (6.0%) (5.6%) (5.4%) (5.4%) (5.7%) (5.5%) Total Comps. Sales Growth 2HY13 Total Comps. FY13 Total Comps. 1HY13

1 1 1

sales up 3.5% and total sales up 10.9%.

• Hardware2 sales in FY13 were up 9.0%, with comparable1

sales up 2.2%. I th Vi l t f ll bl

1

l

S l C t S lit b V l (T t l A t)

Total 2.3% (3.5%) 10.3% 3.2% 5.8% (0.6%)

23.5% 21.5%

• In the Visual category, full year comparable1 sales were

down 11.9%, however sales showed improvement in the 2nd half being down 3.6%.

• Software sales (Music, Movies and Games) in FY13 were

Sales Category Splits by Value (Total Aust)

76 5% 78 5%

negative 2.6% and, on a comparable1 basis were negative 8.9%. The rate of decline in comparable software sales was lower than that in FY12.

76.5% 78.5%

FY12 FY13 Hardware Software

1 Excludes Clive Anthonys. 2 Hardware is defined as all sales excluding the Music, Movies and Games software categories.

2

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3.T R ADINGPER FOR M ANCE . . .

Sales (cont.)

N Z l d

Sales Growth

New Zealand:

• Sales declined by 5.7% to NZ$209.4m.
• Comparable sales were negative 5.5%.

Australia 2.8% (3.4%) 10.9% 3.5% 6.3% (0.5%) New Zealand (NZD) (6.0%) (5.6%) (5.4%) (5.4%) (5.7%) (5.5%) Total Comps. Sales Growth 2HY13 Total Comps. FY13 Total Comps. 1HY13

• Sales were impacted by cycling the Rugby World Cup in

FY12 and an overall softer consumer electronics retail market.

Total 2.3% (3.5%) 10.3% 3.2% 5.8% (0.6%)

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3.T R ADINGPER FOR M ANCE . . .

Gross Margin

• Consolidated gross margin was 21.5%, a 43 bps increase on

the pcp.

• In Australia, the gross margin in FY13 increased by 43 bps to

21.7%.

FY12 FY13 Australia 21.3% 21.7% New Zealand 17.7% 17.7% 21 1% 21 5% Gross Margin

• The market remained very competitive in the 2nd half of FY13

however we did not experience the level of unsustainable discounting seen in the pcp.

Total 21.1% 21.5%

• In New Zealand, gross margin increased 4 bps to 17.7% with
• ur improving buying terms enabling the Company to continue

to reinvest in price given the competitive market.

Gross Margin

21.1% 21.5% FY12 FY13

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3.T R ADINGPER FOR M ANCE . . .

Cost of Doing Business (CODB)

• Consolidated CODB was 15.1%, up 18 bps over the pcp.
• In Australia, CODB increased by 17 bps to 15.1% as a result
• f both the +2.9% Fair Work Australia award increase on 1

July 2012 (total increase of +10.6% over the last 3 years)1

FY12 FY13 Australia 14.9% 15.1% New Zealand 15.0% 15.4% CODB

y ( y ) 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

Total 14.9% 15.1%

demonstrating the company s ability to actively manage its wages in line with the market, while remaining focused on customer service.

• In New Zealand, CODB increased by 43 bps to 15.4% driven

CODB

14.9% 15.1%

by reduced operating leverage.

FY12 FY13

9

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).

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3.T R ADINGPER FOR M ANCE . . .

Earnings

• In Australia, EBIT was up 10.9% to $175.9m driven in part by

improved gross margins over the pcp.

• In New Zealand, EBIT was down 35.8% to NZ$2.3m driven by

a weaker consumer electronics retail market.

FY12 FY13 Australia 5.4% 5.6% New Zealand 1.6% 1.1% % % EBIT MARGIN

• Consolidated EBIT margin was 5.4%, up 21 bps on the pcp.
• EPS was up 11.1% to 117.7 cents per share.

Total 5.2% 5.4%

EPS (cps)

105 9 117.7 105.9 FY12 FY13

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4.F Y 13STOR EUPDAT E 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: Bundaberg Oxley

13

NZ

 QLD: Bundaberg, Oxley  ACT: Tuggeranong  NT: Darwin (Berrimah)

• 5 of the FY13 stores are classified as Tier 2.

FY13 177 stores

157 168

14 10 13 13

NZ AUST

• 8 JB Hi-Fi stores were converted to JB HI-FI HOME.
• 3 sub-scale JB Hi-Fi stores and 1 Clive Anthonys store

closed in FY13.

141 123 105 157

131 144 155 164 12 12 14

105 89

21 26 32 48 66 77 93 109 131 10 15 21 26 Acquired July 2000 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

Total Stores

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5.onlIn e

Goal is a “Seamless customer experience”

• We continue to leverage the benefits of a strong
• nline 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
• f 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.

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6.DIGI TAL

– Digital Content Delivery Platform!

• Entertainment anywhere, anytime.
• Device agnostic service.
• We need to stay relevant and follow consumers’ present and

future content consumption behaviour.

• Allows us to stay engaged with our customers after the

physical purchase has been made.

• NOW Music:
• Approximately 18 million tracks and growing; and
• Over 60 million streams and 200,000 trial users, with

more than 10% staying on as paid subscribers.

• NOW eBooks:

NOW eBooks:

• Launched in April 2013;
• Natural add on to our significant e-reader, tablet and

PC sales; F t i k t t it d

• Fast growing market opportunity; and
• Approximately 250,000 eBooks and growing.
• NOW Video:
• Digital copy redemption site (UltraViolet) launched in

13

Digital copy redemption site (UltraViolet) launched in May 2013; and

• Future digital video download / streaming and rental

service for feature film and TV episodes.

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7 .COMMER C IAL

Commercial – Significant growth opportunity!

• JB Hi-Fi has continued to see strong growth in Commercial;

while off a relatively small base, revenue has grown 68.7% in FY13.

• We have doubled our sales staff in Australia and NZ in the last 12 months.

Th C i l k t i l d f t d W id th t ti l l t it f JB Hi Fi t i $500

• The Commercial market is large and fragmented. We consider the potential sales opportunity for JB Hi-Fi at circa $500m.
• In March 2013 we launched a B2B Telco offer (fixed line, mobility and data).
• One of our key strategic aims is to provide an integrated offer (product and services) to Enterprise and Education clients

across Australia across Australia.

• To support this aim in February 2013 we acquired 51% in Network Neighborhood, a Victorian based Education IT

Services business: – The business has 160 technicians providing IT support services to 400 schools in Victoria. In addition, it provides services to a number of corporate clients; – In FY13, on an annualised basis, the business had turnover of $24.3m and an EBIT of $2m1; and – We anticipate acquiring the remaining shareholding from the owner in the next 24 months. Th i iti f N t k N i hb h d id JB C i l ith t i ff i b th Ed ti d

• The acquisition of Network Neighborhood provides JB Commercial with a strong service offer in both Education and

Enterprise.

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1 Network Neighborhood contributed sales of $8.6m and EBIT of $0.8m to the FY13 consolidated result.

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8 .HOME

HOME – Leveraging the power of the brand!

• Home appliance categories is a circa $4.6 billion market
• pportunity
• pportunity.
• Trial store setup has demonstrated we can integrate

appliance categories within our existing model and maintain the unique JB Hi-Fi brand personality.

• In FY13 eight stores were converted to the “HOME” concept.
• Early sales results have been positive, with strong customer

engagement and no negative impact on existing JB Hi-Fi categories categories.

• Due to the successful trial, we now anticipate converting 10

additional existing stores1 in FY141 (total of 18 HOME stores by the end of FY14).

• We see the potential for approximately 50 HOME stores over

the next three years, with the long term opportunity still to be fully quantified, as this will be dependent on space available in existing stores and the suitability of new store locations. g y

• While the longer term incremental sales opportunity of

HOME is still to be fully quantified, results to date suggest annualised incremental sales per store of circa $3m in Year 1 increasing to circa $5m in Year 2

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1, increasing to circa $5m in Year 2.

1 One store was converted to HOME in July 2013.

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9.C A SHFLOWANDBAL ANCESHEET Cash Flow Statement Working Capital

AUDm EBITDA 192.2 211.0 Change in Working Capital 80.3 (8.2) Net Interest Paid (12.2) (8.4)

FY12 FY13

AUDm (Increase)/decrease in current assets Inventory (21.0) 4.5 Receivables (0 4) (1 1)

FY12 FY13

Income Tax Paid (49.3) (39.6) Other 3.9 1.7 Net Cash Flow from Operations 215.0 156.4 Purchases of P&E (net) (44.8) (34.1) Investments (4 2) Receivables (0.4) (1.1) Other current assets 1.0 1.6 Increase/(decrease) in current liabilities Payables 99.4 (19.3) Other current liabilities 1.4 6.0 Investments

• (4.2)

Net Cash Flow from Investing (44.8) (38.3) Free Cash Flow1 170.2 122.3 Borrowings / (Repayments) (84.2) (26.8) Net Movement in Working Capital 80.3 (8.2)

Performance Indicators:

Inventory Turnover 5 9x 6 1x

FY12 FY13

2

Proceeds from issue of Equity 3.5 1.1 Dividends Paid (77.0) (65.3) Other (0.1)

• Net Cash Flow from Financing

(157.7) (91.0) Net Change in Cash Position 12 4 27 1 Inventory Turnover 5.9x 6.1x Creditor Days 51.9d 55.4d Fixed Charge Ratio 3.1x 3.2x Interest Cover 11.8x 17.5x Gearing Ratio 0.76 0.58 Net Change in Cash Position 12.4 27.1 Effect of exchange rates 0.02 0.6 Cash at the end of Period 39.7 67.4 Return on Invested Capital 54.8% 59.1%

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1 Free Cash Flow = Net Cash Flow from Operations less payments for store related assets (excludes investments). 2 Refer to Note 27 in the Preliminary Financial Report for calculation of the Gearing Ratio.

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9.C A SHFLOWANDBAL ANCESHEET. . . Working Capital & Performance Indicators

4.7 500

Inventory

• Working capital performance was solid with increased inventory turnover,

decreased inventory levels and increased creditor days.

• Inventory management:

inventory levels are down on the pcp driven by proactive management

(7.7) (30.9) 31.6 4.7 400 450

• inventory levels are down on the pcp driven by proactive management.
• the reduction in inventory in existing stores effectively matched our

investment in inventory for new stores. This was a pleasing result.

• inventory turnover was 6.1x (pcp: 5.9x) and like for like inventory

turnover was 6 5x (pcp: 6 2x);

428.3 426.0 350

$m

turnover was 6.5x (pcp: 6.2x);

• Creditors:
• creditor days remained in line with internal expectations, increasing 3.5

days on the pcp.

300

FY12 Closing Stock FY13 Stores Growth in Private Label Closed Stores & Other Existing Stores FY13 Closing Stock

• both FY12 & FY13 year end creditors balances were influenced by
• timing. With both year ends falling on a weekend, creditor payments

were made in the next financial year, thereby resulting in a higher creditor balance and lower net debt. The impact of this timing at the end

• f FY13 was circa $94m (FY12:

$82m) This will not occur in FY14

• f FY13 was circa $94m (FY12: ~$82m). This will not occur in FY14.
• Receivables relate predominantly to supplier rebates which are in line with internal expectations and fluctuate based on timing and

contract terms.

• Financial and operating leverage remains low and is evidenced by solid fixed charges cover of 3.2x and interest cover of 17.5x.

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• Our Return on Invested Capital remains strong.

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9.C A SHFLOWANDBAL ANCESHEET. . . Balance Sheet

AUDm Cash 39.7 67.4 Receivables 58.4 64.2 Inventories 428.3 426.0

FY12 FY13

Other 7.7 6.0 Total Current Assets 534.1 563.7 Fixed Assets 182.0 181.1 Intangibles & Goodwill 78.8 83.7 Other 16 2 14 8 Other 16.2 14.8 Total Non-Current Assets 277.1 279.7 Total Assets 811.2 843.3 Payables 400.8 387.0 Other 38 7 55 4 Other 38.7 55.4 Total Current Liabilities 439.5 442.4 Borrowings 149.8 124.3 Other 37.4 32.8 Total Non-Current Liabilities 187.2 157.1 Total Liabilities 626.6 599.5 Net Assets 184.5 243.8 Net Debt / (Net Cash) 110.1 57.0

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10.DIV I DENDS Dividends

• The final dividend is 22.0 cents per share fully franked. This brings total dividends for FY13 to 72.0 cps, up

10.8% or 7.0 cps from the pcp.

• Maintenance of our current circa 60% payout ratio enables the Company to continue to grow through its

investment in both its store rollout program, including an expansion of the JB HI-FI HOME footprint, and its

80.0

Digital and Online strategies.

72 0 cps

22.0

60.0 70.0

Final

72.0 cps

66.0 77.0 65.0

30 0 40.0 50.0

Final Interim 44.0 50.0

10.0 20.0 30.0 0.0 FY09 FY10 FY11 FY12 FY13

Dividends (cps)

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11.KEYCOMPETI TIV EADVAN TAGE S

Key Competitive Advantages



Market Position – Value / low price focus, we have always been a discount retailer supported by our low cost model.



Unique Brand Personality – Very distinctive and engaging brand personality that is unlike most other local or overseas consumer electronic retailers consumer electronic retailers.



Low Cost Operating Model – Low cost culture, innovative in driving costs down and maintaining the lowest CODB of any major listed Australian retailer. – Motivated, passionate and knowledgeable staff.



Great People – Busy and enjoyable working environment ensures we continue to attract high calibre staff. – Model constantly innovating to ensure we remain current and relevant to our customers. – Change seen as a 'natural' part of our business. – Ability to enter and grow new markets.



p Adaptable model



y g – Culture of embracing change within the business. – Our unique offer ensures we remain a desired destination for the customer, however our location strategy has always been about positioning the stores in high foot traffic precincts. This strategy has allowed us to provide both convenient access for customers and to High traffic locations



– This strategy has allowed us to provide both convenient access for customers and to maximise impulse traffic. – Stores are compact when compared to local and international peers. – High sales per square metre. Highly productive floor space

 20

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12.GR OW THOPP ORTUNI TI E S

Growth Opportunities

– Solid pipeline of properties (12 new JB Hi-Fi stores expected to open in FY14). – Will continue our disciplined approach to selecting new stores based on high foot traffic locations. – Target of 214 JB Hi-Fi stores across Australia and New Zealand. New stores



– Many categories still have above average growth opportunities. – Convenient and easily accessible locations with high foot traffic generates impulse sales. – Continued growth in market share, both in store and online. Existing categories and market share



– HOME appliances website opportunity. – New JB Hi-Fi website to be launched in the first half of FY14. – NOW Music – presents a longer term sales growth opportunity as adoption of music subscription gains momentum



Online momentum. – NOW eBooks – add on opportunity to our substantial device sales. – NOW Video – Digital copy redemption site (UltraViolet) launched. Future digital video download/streaming and rental service for feature films and TV episodes. Digital

 

Commercial – Significant opportunities to grow this division over the next 2 to 3 years. – Leverage the strength of the brand. – Significant growth opportunity.



HOME

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13.F Y 14STOR EUPDAT E 12 new JB Hi-Fi stores to be opened in FY14

 NSW: 3  VIC: 3  QLD: 1  WA: 1

13 14

NZ AUST

 WA: 1  TAS: 1  AUST: 2  NZ: 1 FY14F ~189

168 177

14 10 13 13 13

AUST

• 1 of the FY14 stores is classified as Tier 2.
• 4 stores are expected to open in the first half of FY14.

141 123 105 157

Target f 214

131 144 155 164 175

12 12 14

105 89

• f 214

stores

21 26 32 48 66 77 93 109 10 15 21

Acquired July 2000 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14F

Total Stores

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14.T R ADINGOUTLOOK

Trading Outlook

• FY14 July sales update:
• total consolidated sales growth in July 2013 was 8.0%; and
• consolidated comparable1 sales growth in July 2013 was 2.2%.
• Sales in July 2013 were pleasing given we were cycling the Olympics in July 2012 and experienced softer

gaming sales as consumers await the new console releases due in the first half of FY14.

• A solid pipeline of new products in FY14, such as UHD TV and gaming consoles, will continue to drive

growth in the consumer electronics market. g

• The Company expects to open 12 new JB Hi-Fi stores in FY14, with four opening in the first half.
• In addition, the Company anticipates converting 10 existing stores2 to the “HOME” concept in FY14.
• The Company expects sales in FY14 to increase by between 6% and 8% on the prior year
• The Company expects sales in FY14 to increase by between 6% and 8% on the prior year.

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1 Excludes Clive Anthonys. 2 One store was converted to HOME in July 2013.

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1 5.INV E STMEN TC HECKLIST

 Unique and relevant brand.  Low cost of doing business.  Flexible business model – history of category growth and development.  Diversity of product categories.  New store, online and digital opportunities.  Experienced management team.  High return on invested capital.  Sh

h ld t f d th h ti it l t d

 Shareholder return focused – through proactive capital management and

dividend policies.

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AppendixI Geographic breakdown# Store movements during FY13

FY13

Opened

Rebrand

Closed

Total Australia JB HI-FI - Tier 1 135 8 (8)

• 135

JB HI-FI - Tier 2 18 5

• (3)

20 JB HI-FI HOME

• 8
• 8

FY12 FY13

2 34

JB HI FI HOME 8 8 153 13

• (3)

163 Clive Anthonys 2

• (1)

1 155 13

• (4)

164 New Zealand JB HI-FI - Tier 1 9

• 9
• 34

9 18

JB HI-FI - Tier 1 9

• 9

JB HI-FI - Tier 2 4

• 4

13

• 13

TOTAL 168 13

• (4)

177 JB Hi-Fi store type:

47 48 5

JB Hi-Fi store type: Tier 1 144 8 (8)

• 144

Tier 2 22 5

• (3)

24 HOME

• 8
• 8

166 13

• (3)

176

13 1

Store format: Shopping centres 83 9

• 92

Other 85 4

• (4)

85 168 13

• (4)

177

# as at 30 June 2013 NZ

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AppendixII

a) EBIT reconciliation b) NZ Profit and Loss statement (AUD)

AUDm

FY12 FY13

Profit for the year (App 4E) 104.6 116.6 add back

• income tax expense (App 4E)

43.7 51.4 P fit b f T 148 4 168 1 AUDm

FY12 FY13

Sales 173.2 167.6 Gross Profit 30.6 29.7 Gross Margin 17.7% 17.7% Profit before Tax 148.4 168.1 add back

• interest received

(0.6) (0.5)

• interest expense (App 4E)

13.7 10.2

• net interest expense

13.1 9.7 EBITDA 4.7 3.9 Depreciation & Amortisation 1.9 2.0 EBIT 2.8 1.8 EBIT Margin 1.6% 1.1%

c) Other items

$3

d) CODB reconciliation

Earnings before interest and tax (EBIT) 161.5 177.8

• Net interest expense was down $3.4m driven by a lower interest rate

environment and strong cash flows.

• Effective tax rate was 30.6%, up from 29.5% in the pcp.

AUDm

FY12 FY13

Other income (ex interest received) (0.05) (0.1) Sales and marketing expenses (App 4E) 309.5 336.8 Occupancy expenses (App 4E) 129.3 140.2 less depreciation & impairment (24.7) (27.6) Ad i i t ti (A 4E) 26 7 27 2 Administration expenses (App 4E) 26.7 27.2 less depreciation & amortisation (7.1) (7.2) Other expenses (App 4E) 32.9 30.2 Cost of Doing Business (CODB) 466.6 499.6 Sales 3,127.8 3,308.4

26

, , CODB (% of sales) 14.9% 15.1%

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