JB HI-FI LIMITED — M&A Activity 2024

Aug 11, 2024

JB HI-FI LIMITED 60 CITY ROAD SOUTHBANK VIC 3006 ABN: 80 093 220 136 www.jbhifi.com.au

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COMPANY ANNOUNCEMENT

12 August 2024

Acquisition of e&s

JB Hi-Fi Limited (“JB Hi-Fi Group”) is pleased to announce that it has entered into an agreement to acquire E. & S. Trading Co. (Discounts) Pty. Ltd. (“e&s”).

e&s Overview

• Established in 1962 by the Sinclair family

• Premium offering across the kitchen, laundry and bathroom product segments

• 10 showrooms in Victoria and Online, plus 1 showroom in ACT to open in August 2024, delivering highly personalised customer service, both pre and post purchase

• Strong delivery capability

• Established commercial offering in Victoria servicing builders, developers and architects, with recent opening in ACT

• FY24 revenue of circa $230m revenue and normalised pre AASB16 EBITDA of circa $7m

Strategic Rationale

e&s is highly complementary to the JB Hi-Fi Group’s existing brands, providing the JB Hi-Fi Group with new and expanded customer segments and product categories, including:

• the premium home appliance customer and category;

• the bathroom category;

• the large commercial construction customer; and

• boutique and volume builders and architects.

JB Hi-Fi Group expects to be able to continue to grow e&s, both in Victoria and nationally.

Transaction Details

• Initial acquisition of 75% for cash consideration of $47.8 million on a cash-free / debt-free basis

• Put and call option arrangement in place for the acquisition of the remaining 25% in September 2029

• Rob Sinclair to continue as Managing Director of the business

• The acquisition will be funded through existing cash reserves

• Completion of the acquisition is subject to customary completion conditions and is expected to occur in September 2024

JB Hi-Fi Group CEO, Terry Smart said “e&s is a high-quality business that prides itself on offering the world’s leading kitchen, laundry and bathroom brands at great prices, with expert advice and exceptional customer service. e&s have a highly complementary premium product offering, which will appeal to a new customer base, and a commercial construction market focus, making it a strategically compelling addition to the JB HiFi Group.”

Authorised by the Board.

*******************Media & Investors:Terry SmartGroup Chief Executive Officer03 8530 7454	*****************Investors:Nick WellsGroup Chief Financial Officer03 8530 7454