Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — FY2005 Earnings Presentation
17 slides from Jb Hi-fi's earnings presentation, Aug 16, 2005
Slide 1: JB Hi-Fi Limited Full Year Results Presentation – June 2005
JB Hi-Fi Limited Full Year Results Presentation – June 2005 16 August 2005
Slide 2: Agenda
AGENDA 1. Performance 2. Historical Performance 3. Trading Update 4. Financial Detail 5. IFRS Update 6. New Stores 7. Investment Scorecard Richard Uechtritz Richard Murray CEO CFO
Slide 3: Performance: Strong performance for 12 months to 30 June 2005
1. PERFORMANCE Strong performance for 12 months to 30 June 2005 Growth against previous corresponding period: • Sales $693.9m 53.4% Û • Comparable store sales growth (PCP 8.0%) 4.7%* - 3.3% Ü • EBIT $37.0m 62.1% Û • EBIT Margin (PCP 5.1%) 5.3% + 0.2% Û • NPAT $20.7m 49.8% Û Final fully franked divid
Slide 4: Historical Performance: Strong growth in sales & earnings since MBI in July 2000
2. HISTORICAL PERFORMANCE Strong growth in sales & earnings since MBI in July 2000 694m 37.0m 20.7m Û53% Û62% Û50% 452m 13.8m 22.8m Û27% Û60% 356m Û37% Û43% 16.7m 8.6m 249m Û44% 11.6m Û39% Û61% 6.2m 155m Û104% Û138% 5.7m 2.6m 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005
Slide 5: Trading Update: Sales Product Mix and Total Stores
3. TRADING UPDATE Sales Product Mix FY05 Total Stores FY05: 48 (JB 42, CA 6) Domestic Appliances & Computers (CA stores) 10% Music, Movies & Games (JB stores) 33% 13 SE Qld (JB 7, CA 6) 3 Adelaide 1 Newcastle 4 Perth 3 Canberra 1 Central Coast 6 Sydney Consumer Electronic 17 Melbourne (JB & CA store
Slide 6: Trading Overview
3. TRADING UPDATE. . . Trading Overview • Market sales growth slowed significantly in the first half of calendar year 05 after 18 months of strong consumer spending. This slower rate of growth is likely to continue into the first half of FY 05/06. • This slow down has been more pronounced in the whi
Slide 7: Financial Detail: Profit and Loss Statement
4. FINANCIAL DETAIL Profit and Loss Statement $m FY05 FY04 Growth Sales 693.9 452.4 53.4% Comparative Store Sales 4.7% 8.0% - 3.3% Gross Profit 159.5 105.9 50.5% Gross Margin 23.0% 23.4% - 0.4% EBITDA 42.3 25.9 63.6% Depreciation & Amortisation 5.3 3.1 EBIT 37.0 22.9 62.1% EBIT Margin 5.3% 5.1% + 0.
Slide 8: Cashflow Statement
4. FINANCIAL DETAIL. . . Cashflow Statement $m FY05 FY04 EBITDA 42.3 26.0 Change in Working Capital (31.4) (2.8) Interest Paid (5.1) (3.0) Income Tax Paid (9.1) (5.3) Net Cashflow from Operations (3.4) 14.8 Purchases of F,F & E (15.8) (10.3) Payments for Intangibles & Invest. (22.1) (3.6) Net Cashfl
Slide 9: Working Capital
4. FINANCIAL DETAIL. . . Working Capital $m FY05 FY04 (Increase)/Decrease in current assets Inventory (23.0) (21.3) Receivables (5.3) (3.9) Other Current Assets (0.3) (1.4) Increase/(Decrease) in current liabilities Trade creditors (3.7) 18.2 Other current liabilities 0.9 5.6 Net Movement in Working
Slide 10: Balance Sheet
4. FINANCIAL DETAIL. . . Balance Sheet $m FY05 FY04 Movement Cash 1.6 16.4 (14.8) Receivables 19.9 13.0 6.9 Inventories 104.5 70.3 34.2 Other Current Assets 2.6 1.1 1.5 Total Current Assets 128.7 100.9 27.8 Fixed Assets 35.6 21.9 13.7 Brandname & Goodwill 66.8 46.5 20.3 Other Non-Current 1.7 0.7 1.0
Slide 11: Performance Indicators
4. FINANCIAL DETAIL. . . Performance Indicators JB Hi-Fi’s balance sheet remains strong, and the group is well positioned for growth as evidenced by the following key ratios: $m FY05 FY04 Stock Turnover 5.77* 5.81 Creditors Days 54.35* 60.9 Fixed Charge Ratio 3.05 3.25 Interest Cover (times) 6.49 7.
Slide 12: IFRS: Key areas of IFRS for JB
5. IFRS Key areas of IFRS for JB Ongoing P&L Impact 05* B/S Impact P&L Impact Share based payment Yes Yes Yes Inventory (stretch rebates & early settlement Yes Yes Yes discounts) CGU - plant & equipment Yes Yes No Leases - fixed rate increases Yes Yes Yes Brand names & goodwill – deferred tax balanc
Slide 13: IFRS Impact – P&L
5. IFRS. . . IFRS Impact – P&L $m AGAAP IFRS Adj. A-IFRS Sales 693.9 - 693.9 Cost of sales 534.5 0.5 535.0 Gross profit 159.5 (0.5) 159.0 Marketing expenses 84.2 0.5 84.7 Occupancy expenses 22.3 0.3 22.6 Administration expenses 9.2 - 9.2 Borrowing costs 5.7 - 5.7 Other expenses 7.9 0.1 7.9 Other rev
Slide 14: IFRS Impact – Balance Sheet
5. IFRS. . . IFRS Impact – Balance Sheet $m AGAAP IFRS Adj. A-IFRS Assets Inventories 104.5 (1.6) 103.0 Property, plant & equipment 35.6 (0.4) 35.2 Intangibles 66.3 18.4 84.7 Liabilities Deferred tax liabilities 0.6 18.4 19.0 Provisions 6.9 (0.6) 6.3 Other - 1.0 1.0 Net Assets 66.1 (2.8) 63.3 Equity
Slide 15: New Stores: Stores Opened
6. NEW STORES Stores Opened 10 JB stores opened during the year: • VIC: Werribee, Narre Warren, Melbourne City (Bourke St)* • NSW: North Ryde, Sydney City*, Leichhardt • SA: Modbury • WA: Whitford • ACT: Canberra City*, Belconnen ≈65 1 Clive Anthonys store opened during the year: 48 • Mount Gravatt
Slide 16: New Store Program
6. NEW STORES. . . New Store Program Anticipate approximately 16 to 17 new JB stores in FY06, with 12 stores before Xmas in some of the country’s biggest Shopping Centres including: • Westfield Tuggerah (NSW Central Coast) NOW OPEN • QIC’s Loganholme (Brisbane) • QIC’s Robina (Gold Coast) NOW OPEN •
Slide 17: Investment Scorecard: Strong growth, profitability & sustainable competitive advantage
7. INVESTMENT SCORECARD Strong growth, profitability & sustainable competitive advantage Growth factors: • Continued focused exposure to high growth, highly desirable home entertainment product market • Recently opened stores continue to mature strongly • JB new store roll-out continues, with plenty