JB HiFi Annual Report Analysis: Directors, Financials, and Reports

This report provides an analysis of JB HiFi's 2018 annual report, focusing on key directors and financial performance. The report identifies three main directors: Mr. Greg Richards (Chairman), Mr. Stephen Goddard, and Mr. Richard Murray (CEO). It summarizes the director's report, highlighting information on business activities, financial reviews, and director's shareholdings. The report also details JB HiFi's financial performance, including a significant increase in sales and profit from 2017 to 2018, and a detailed breakdown of cash flow from operating activities, showing a substantial increase in net cash flow. The analysis references the 2018 annual report and relevant financial management literature.

Answer 3:
List of three main directors of JB HiFi as provided in the annual report of year 2018:
1. Mr. Greg Richards: He holds the position of Chairman and he fall in under the category
of Non-Executive Directors. Mr. Greg is an active member at the remuneration
committee and holds position of chairman in the Audit and risk management committee.
He has experience of more than 25 years in investment banking industry.
2. Mr. Stephen Goddard: He falls under the category of Non-Executive Director and he is
the active member in Audit and Risk Management Committee. Mr. Stephen has
experience of more than 30 years in retail industry as the senior executive position in
most of the retails companies of Australia.
3. Mr. Richard Murray: He is currently the Chief Executive Officer and executive
director at JB HiFi. Mr. Murray has been appointed as the executive director in June 2012
and became CEO on 1 July, 2014. He has experience of 10 years as a financial officer in
Deloitte and as a CFO in JB HiFi for more than 10 years (Annual Report, 2018).
Brief Summary of Director’s Report
Director’s report contains important information on the business activities that has been
carried out during the reporting period and has been related with the board of directors.
Information such as operating and financial review, principal activity of the business, changes in
state of affairs, future development, subsequent events, regulations and control on environment,
and report on dividends (Arnold, 2013). In addition to this director report contains information
on director’s meeting during the reporting period along with the directors’ shareholdings of each
of the director (Damodaran, 2011). Director’s report also disclosed detailed information on the
remuneration of executives and board of directors paid during the reporting period. It helps to
understand the performance of directors with respect to the company performance as
remuneration is dependent upon the financial performance. Director’s report has also information
on the non-audit services that has been taken up the directors of the company to assist the
auditors in various projects (Moles and Kidwekk, 2011). As these non audit services must be
independent to keep up the requirement of auditor’s independence (Brigham and Michael, 2013).
Director’s report has disclosed detailed information on the operating and financial performance
during the year 2018 and any change with respect to year 2017 (Schlichting, 2013). As per the
director’s report total sales of the company has been increased from $ 5628 million in year 2017
to $ 6854 million in year 2018 reflecting increase of 21.8% in the current period. The increase in
sales has helped the management at JB HiFi to attain the profit of $ 233.2 million in year 2018
reflecting an increase of 9.2 % in present with respect to previous period (Annual Report, 2018)
Answer 6:
Cash flow operating activity

Net cash flow from operating activities in year 2018 was $292.1 million and in year 2017
it was $ 190.6 million that reflects JB HiFi has managed to gather over $ 100 million cash flows
from its main operating activity. The increase in net cash flows from operating activity in year
2018 as compare to 2017 amounts to $ 101.5 million ($292.1 million in year 2018 and $ 190.6
million in year 2017). The increase in value of net cash flow operating activity reflects increase
of 53.25% in current year (2018) as compare to year 2017 (Davies and Crawford, 2011).
Cash flow from operating activity
Items 2017 2018 Change
Value Change $190.60 $292.10 $101.50
In % 100% 153.25% 53.25%
(Annual Report, 2018)

References
Annual Report. 2018. JB HiFi. [Online]. Available at: https://investors.jbhifi.com.au/wp-
content/uploads/2018/10/Annual-Report-2018-with-Chairmans-CEOs-Report.pdf [Accessed on:
16 May 2019].
Arnold, G., 2013. Corporate financial management. USA: Pearson Higher Ed.
Brigham, F., and Michael C. 2013. Financial management: Theory & practice. Canada: Cengage
Learning.
Damodaran, A, 2011. Applied corporate finance. USA: John Wiley & sons.
Davies, T. and Crawford, I., 2011. Business accounting and finance. USA: Pearson.
Moles, P. and Kidwekk, D. 2011. Corporate finance. USA: John Wiley &sons.
Schlichting, T. 2013. Fundamental Analysis, Behavioral Finance and Technical Analysis on the
Stock Market. Australia: GRIN Verlag.