Jb-Hi-Fi Case Study

1. Provide a brief summary of the company. Include details JB-HI-FI such as industry sector, primary activities, recent performance (300 words maximum).

JB-HI-FI is a chain retailer offering that continues to offer daily low prices through our business scale, high inventory turnover and low-cost business with its largest range of home entertainment, consumer electronic and home appliances with reasonable price aimed to whole customers. The Group's principal business for the current financial year is retail consumer goods. The group offers a wide range of leading brands, with special attention to consumer electronics, software, including music, games and movies, white food and electrical (P17).

There are two types of JB-HI-FI stores, one is normal store with the amount of 194 during the middle of the 2016 located in Australia and New Zealand and plan to open nine new stores and close two at the end of 2016. The other one is JB HI-FI HOME stores with the amount of 59 during the middle of the 2016, planning to open five new HOME stores and converting 13 normal stores to JB HI-FI HOME stores. Basically, the HOME store has its advantage with better position, store wages, staff training and supply chain in order to gain customers’ interest and awareness. ( page 1)

Because of the leading role the home appliances market plays in the market, it      is vital for JB HI-FI to adjust home appliances to more with the strategy by rolling out more small appliances to online store and 43 JB HI-FI stores with small appliances in the end of 2016.

P16 P36

1. Prepare a table that outlines details of the Board of Directors. Include items such as name, gender, age, education, career history, remuneration, and any other details you think are important or interesting.  (400 words maximum). Please do not cut and paste from the annual report.

There has been little shifts in the Board of Directors, it is observed that Gary Levin wish to retire from the Board thus the Board needs new member that hired Stephen Goddard.

Greg was appointed a member of the Board of Directors in December 2007 and was appointed Chairman of the Board in June 2012. Greg is a member and chairman of the Remuneration Committee and served as Chairman of the Audit and Risk Management Committee from February 2010 to May 2012.

Beth was appointed to the Board of Directors of JB Hi-Fi in May 2011 and became Chairman of the Audit and Risk Management Committee on June 1, 2012 and was appointed as the Remuneration Committee of the Company in October 2015.

Gary Levin has been a director of JB Hi-Fi for three years since its listing in 2003 and is a member of the Remuneration Committee and the Audit and Risk Management Committee. After the 2016 Annual General Meeting of the Company was closed, Gary was interested in withdrawing from the Board of Directors. From the website of the JB HI-FI we confirm that he is no longer in the Board.

Wai Tang was appointed as a member of the Company's Audit and Risk Management Committee on 14 September 2015.

Richard  Uechtritz joined the board in April 2011 as a non-executive director.

1. Provide a brief assessment on the characteristics of the Board, considering the information stated in requirement (b) above and other relevant factors such as composition of the board, board expertise, etc. (400 words maximum).

The board is made up of seven members who include five males and two females, which demonstrates the proportion of men and women is not imbalanced.

Form the members’ former career history, they are all expertise in retail, business and investment fields which gave them sufficient knowledge to guide and operate the development of this company. Before they turned into the members of Broad of JB HI-FI, all of them have at least already been the directors of other famous enterprise, form where to ensure that maximise the shareholders’ wealth as the goal of being the directors of other company for them, they are selected to be the directors of JB HI-FI duo to experience has been gained. From the report, it is undeniable that several of the directors has been the co-founder of famous company in Australia, their inspiration and values for innovation are vital for a young company like JB HI-FI to succeed in through the IPO and encourage it to keep moving and developing.

1. List and comment on important investment or financing decisions made by JB-Hi-FI Ltd during the year (200 words maximum).P21-24

Investment in capital expenditure for the current financial year was $ 52.3 million, an increase of $ 9.8 million from $ 42.5 million in the previous financial year. These projects include new store opening, JB Hi-Fi home store conversion, store relocation and upgrades, inventory, supply chain and online projects.

Firstly, Duo to the sales of household appliances are growing rapidly, it is necessary to open five new JB HI-FI home store which provide about 400 square meters to place and show the home appliances and for those old stores the need for fulfill the small appliances are also essential.

Secondly, total inventory has been increased mainly due to the company's investment in new store inventory, the introduction of electrical appliances and the increase in existing store inventory to support the July promotional activities.

Thirdly, The Group has been investing in low development costs and is suitable for supply chain, major cities in Australia has been investigated to improve the supply chain which eventually contribute to the logistics systems and support group expansion.

Lastly, continuing develop JB Hi-Fi online website, enhance the user experience of multiple platforms such as computers, tablets and mobile phones, and promote the continuous growth of online sales;

JB Hi-Fi's workplace program is known as the "helper" to enable JB Hi-Fi directors, executives and employees to donate to registered charities and nearly 5,000 employees of the staff participated in the program every week

1. JB-HI-FI Limited follows the corporate governance recommendations of the Australian Stock Exchange (ASX) Corporate Governance Council (CGC) and has several policies in place to support its corporate conduct. Outline the key recommendations of the ASX CGC in table format (100 words maximum). P10

Lay solid foundations for management and oversight

Structure the board to add value

Act ethically and responsibly

Safeguard integrity in corporate reporting

Make timely and balanced disclosure

Respect the rights of security holders

Recognize and manage risk

Remunerate fairly and responsibly