The JB Hi-Fi & Harvey Norman Company Overview

Running Head: CORPORATE FINANCE: JB HI-FI & HARVEY NORMAN 1
Corporate Finance: JB Hi-Fi & Harvey Norman

CORPORATE FINANCE: JB HI-FI & HARVEY NORMAN 2
Table of Contents
Company overview....................................................................................................................3
Major Shareholders....................................................................................................................3
Executive management of the company....................................................................................4
Directors of the company...........................................................................................................5
Compensation of directors and top executives...........................................................................6
Equity comparison.....................................................................................................................7
Debt structure and sources of debt.............................................................................................8
Dividend policy..........................................................................................................................9
Mergers and restructuring........................................................................................................10
Comparative performance evaluation......................................................................................10
Stock values.............................................................................................................................11
References................................................................................................................................13

CORPORATE FINANCE: JB HI-FI & HARVEY NORMAN 3
Company overview
JB Hi-Fi Ltd. is a retail company which deals mainly in domestic consumer products
independent destination sites, online stores and shopping centers. JB Hi-Fi was founded in
1974 by John Barbuto and currently its headquarters are at Melbourne, Australia (Bloomberg,
2018a). The company is segmented into three parts, JB Hi-Fi Australia, The good Guys and
JB Hi-Fi New Zealand. With a total strength of 12,200 employees, JB Hi-Fi’s annual revenue
stands to be AUD 6.85 billion (Bloomberg, 2018a).
The engagements of Harvey Norman Holdings Ltd. are primarily in franchise, retail,
digital enterprise and property business. It has several franchising operations and its retail
business are based in countries like New Zealand, Singapore, Malaysia, Croatia, Slovenia,
Ireland, etc. The non-franchised retail business is also a part of the company’s operations.
Harvey Norman also engages in Retail property business, Resale property developments,
Investments in equity and much more. Ian John Norman and Gerald Harvey together founded
Harvey Norman in 1982, October (Bloomberg, 2018b). Currently the firm is located at
Sydney, Australia, where it has its headquarters. With a total of 5420 employees, the
company’s annual revenues are AUD 1.99 billion.
Major Shareholders
JB Hi-Fi has several major shareholders who have more than 5% shares in the
company. Ellerston Capital Ltd. owns 10.7% equity shares of the company which is
equivalent to 12,262,159 equities (Market Screener, 2018a). An investment management
company known as Pendal Group Ltd. has 8.26% shares in the company which is equal to
9,491,899 shares. Legg Mason Asset Management Ltd. of Australia owns 8.17% of the equity
shares of JB Hi-Fi which is around 9,383,770 shares. A total of 8,884,202 shares is owned by
AustralianSuper Pty Ltd. in the company which is equivalent to 7.73% of the total equity

CORPORATE FINANCE: JB HI-FI & HARVEY NORMAN 4
shares (Market Screener, 2018a). UniSuper Ltd. owns about 7.51% of the total shares of the
company that amounts to be 8,623,136. A total of 7,640,264 equity shares are owned by
Airlie Funds Management Pty Ltd. which forms 6.65% of the total shares and finally Health
Employees Superannuation Trust Australia owns 5.14% shares in the total shares of Hi-Fi.
Their shares amount to be 5,908,167 (Market Screener, 2018a).
There are several shareholders of the company Norman Harvey. These are, firstly, the
company’s executive Chairman himself, Gerald Harvey who owns 370,317,267 shares which
is equal to 31.4% of the total equity shares (Market Screener, 2018b). Estate of Ian John
Norman owns 194,107,477 shares of the company which is equal to 16.5% of the total shares.
No other shareholder of the company holds more than or even 5% of the total number of
shares of the company. However, Harvey Norman has several holdings, which hold some of
the shares of the company. These companies are Gazal Corporation Limited, Brisco Group
Limited and Eclipx Group Ltd. But, only Gazal Corporation Ltd owns more than 5% shares
of the company, that is 9.33%, which is equivalent to a total of 4,165,656 shares (Market
Screener, 2018b). These shares are valued at an estimated value of 12,459,186 USD.
Executive management of the company
The executive management of JB Hi-Fi is formed by the fourteen key people of the
company. These are: Richard Murray (Executive Director, Chief Executive Officer and
Group Chief Executive Officer), Nick Wells (Chief Financial Officer), Simon Page (Chief
Information Officer), Peter Green (Operations Director), Tim Carter (Director-Supply Chain
& Solutions), James Saretta (Director-Strategy & Digital), Gregory Richards (Chairman),
Stephen Thomas Goddard (Independent Non-executive Director), Mark D. Powell
(Independent Non-executive Director), Beth May Laughton (Independent Non-executive
Director), Cameron Trainor (Managing Director), Doug Smith (Secretary & General