Thank you. Thanks for joining us this morning to discuss JB Hi-Fi's full-year results. As always, thanks for your interest in the business. We'll talk through the presentation and allow time for questions at the end. I'll now start by turning to slide four, titled The Group CEO Transition. On slide four, as previously announced, Richard Murray is to leave JB Hi-Fi for a new role. I'll be taking over as Group CEO. Nick Wells, the Group CFO, will join the board as Executive Director, and we've made an internal appointment of Biagio Capasso, taking over from myself as Managing Director of The Good Guys. To replace Biagio, we have made an external appointment of Tania Garonzi as our Merchandise Director of The Good Guys. Tania's a great hire for the business, and she will join us from Hisense Australia, where she was General Manager for 15 years. Tania's start date is yet to be finalized. All transitions have progressed well, and I'm formally to commence as Group CEO at the end of August. On to slide six, our group model. I'm sure many of you have seen this slide before, but it's important because it highlights the group model and how it supports our two leading brands. Our two brands have both distinctive brand personalities and distinctive core product leadership positions. The group appeals to a wide, but brand-differentiated customer base, to which both businesses provide a common value proposition of big brands at low prices. Our customer-centric approach, which is underpinned by passionate and knowledgeable sales staff delivering exceptional customer service. We achieve this through our multi-channel strategy, be it in-store, online, or over the phone. This multi-channel strategy has been an absolute key to our current and ongoing success. All of this is supported through our combined group functions here at the support office and is underpinned by our five key competitive advantages, which I'll touch on slide seven. We've talked about this before, however, our five key competitive advantages are scale, low-cost operating model, quality store locations, supplier partnerships, and multi-channel capability. With scale, we have the number one position in the market and are globally relevant to suppliers. Our low-cost operating model, this is a constant focus and is a key to ensuring we deliver our price promise to our customers. Quality and diversified store locations, this ensures we provide ultimate convenience for and maximum reach of our customers. Solid supplier partnerships, this assists us in leveraging our scale. The fifth is our multi-channel capability. Our strategy has always been to give customers the ultimate choice on how they wish to deal with us, whether that's in-store, online, or over the phone. We continue to invest across all these channels to ensure we provide a smooth and engaging experience regardless of the customer's preferred way to shop. However, key to this multi-channel competitive advantage is our store network that provides customers physical access to products, especially those high-involvement products, which are generally not transacted online. Of course, our access to our knowledgeable sales staff. The store network gives us the ability to achieve fast online fulfillment times, click and collect, and the security of a physical store presence should after-sale support be needed for both in-store and online purchases. We also have a strong and growing commercial business to support that sector of the market. Over to slide eight. We remain focused on generating long-term sustainable growth for the business. Our sustainability policy outlines our commitment to having a positive effect on our people, community, and environment. Some of our key FY21 achievements are our people and culture. We prioritize the safety of team members through COVID-19. We rolled out an updated equal opportunity and workplace behavior policy to all team members. We launched a set of diversity and inclusion initiatives to continue to improve diversity and leadership. For our communities, FY21 workplace giving donations totaled AUD 3.7 million and AUD 21.8 million since inception, with JB Hi-Fi Helping Hands program winning Workplace Giving Australia's 2020 Best Overall Program and Best Innovation Award. We completed our modern slavery statement, which outlines the actions that we are taking to address the risk of modern slavery to our business and supply chain and continue to work with suppliers on embedding our ethical sourcing policy. With the environment, the group is committed to net zero direct carbon emissions by 2030 and recently installed our first solar power generation at our JB Hi-Fi Chadstone Homemaker Centre store. We continue to explore waste reduction, reuse, and recycling initiatives led by the group's operational waste and recycling working group. We're getting continuous improvements in sustainable packaging. Our FY21 sustainability report can be found on our investor website. Now turning to page nine. We'll talk through this in more detail as we move through the presentation, but again, it's pleasing to see the results in what has been, and I must say continues to be, an extraordinary period. Our continued focus on our customer, along with the strength of our multi-channel offer, be it in-store, online, or over the phone, and importantly, the incredible efforts of our over 13,000 team members, had enabled us to meet our customers' increased demands and achieve these solid results. Over to page 10. Again, I will take this slide as read, as we'll discuss it in greater detail as we move through the presentation. Again, it's pleasing to see sales and earnings growth across all divisions in FY 2021. Over to page 11, group highlights. The group's financial highlights. Sales up 12.6% to AUD 8.9 billion. We saw exceptional growth online with sales up 78.1% to AUD 1.1 billion, representing 11.9% of total sales. EBIT was up 53.8% to AUD 743.2 million. We had strong operating leverage from elevated sales, gross margin expansion, and disciplined cost control. NPAT up 67.4% to AUD 506.1 million. EPS up 67.5% to AUD 4.408 per share. Our final dividend per share is up AUD 0.17 per share or 18.9% to AUD 1.07 per share, bringing the total dividend for FY 2021 to AUD 2.87 per share, up AUD 0.98 per share or 51.9%. The group's operational achievements. The health, safety, and wellbeing of our team members, customers, and business partners remains the group's highest priority, especially during this period. We continue to respond and adapt to the challenges resulting from COVID-19 with a well-executed promotional program and a high level of customer service maintained across stores, online, and supply chain. Key internal appointment of Biagio Capasso to Managing Director of The Good Guys. We saw continued investment in online and supply chain operations, including upgrades to the website and expanded delivery and warehousing options. We continued to invest in sustainability initiatives, including committing to net zero direct carbon emissions by 2030. We also continued expansion and investment in our group commercial businesses, products, and service offerings. Over to page 13, I'll turn to the divisional performance, starting with JB Hi-Fi Australia. I'll take this slide as read as we'll cover in greater detail as we move through. Over to 14, JB Hi-Fi Australia's FY21 sales. Total sales grew by 12% to AUD 5.96 billion, with comparable sales up 13%. Sales momentum was strong through the year with heightened customer demand for consumer electronics and home appliance products. Our hardware and services sales were up 14.1%, with comparables up 15.1%, driven by communications, computers, games hardware, visual, and small appliance categories. Communication sales categories had a very strong result, with both outright handset sales and connections, with our offering continuing to resonate with customers. Computers had a very strong year, with customers continuing to seek products for work and learning at home, with MacBook and laptops performing well. Games hardware performed very well and assisted by new console sales in the second half. Visual had a solid year despite some stock challenges, and we continue to see an increase in sales in larger panels as customers continue to move to 75-inch and above panels. Small appliances had a solid year, with growth in stick vacs, coffee, and kitchen appliances. Software sales were down 14.5%, with comparables down 14.2%, as a result of the decline in movie and game software categories, but offset by growth in music. Software sales were 5.5% of total sales. Online grew 93% to AUD 780 million or 13.1% of total sales. Excluding Victoria with the lockdown, we temporarily saw in the first half of FY21, sales represented 11.1% of total sales. The ongoing investment in this area ensures that we're able to meet increased customer demands. The commercial business recorded solid sales growth as we continue to grow our product and service offerings. Onto page 15 and JB Hi-Fi's earnings results. FY21 gross profit increased by 13.4% to AUD 1.33 billion. With gross margins up 27 basis points to 22.2%, driven by a combination of lower discounting and continued buying improvements. CODB was 11.2%, down 91 basis points. CODB in absolute terms grew 3.6%. As a reminder, sales are up 12%, with disciplined cost control throughout the year. Depreciation grew by 1.1%, with increase in both depreciation on right of use assets and fixed assets. EBIT was up 33.6% to AUD 523 million, with EBIT margin up 142 basis points to 8.8%. Over the page to New Zealand. Again, with Australia, I'll take most of this as read. However, just to note the last two lines, which show JB Hi-Fi New Zealand's underlying EBIT, excluding our non-cash impairment charges for both FY20 and FY21. We will touch on those as we move through. Over the page to page 17, FY21 sales. Total sales in New Zealand were up 17.4% to NZD 261.6, with comparable sales up the same. Hardware and services sales were up 18.3%. Again, comparables up the same. This was driven by computers, visual communication, games, hardware, and small appliance categories. Software sales was 7.4%, with comparable sales again up the same, with a decline in movie category offset by growth in music and game software. Software sales represented 7.1% of total sales. Online sales grew 35.6% to NZD 27.6 million, or 10.6% of total sales. Turn over to page 18, the earnings. The FY21 earnings for New Zealand. Gross margins were up 129 basis points to 17.8%. Cost of doing business was 13.1%, down 109 basis points, and in absolute terms, grew 8.4%. Again, a reminder, sales are up 17.4%, with store wages remaining well controlled. EBITDA was NZD 12.3 million, up 137.5%, driven by sales growth, margin expansion, and cost control. Statutory EBIT from New Zealand was NZD 5.8 million, up NZD 28.1 million from a loss of NZD 22.3 million in FY21. However, underlying EBIT, excluding the impact of impairment in the current and prior period, resulted in New Zealand having NZD 6 million in earnings, up 7.2% on FY20. Looking forward, we've got our focus areas for both JB Hi-Fi Australia and JB Hi-Fi New Zealand. With COVID-19, it continues to prioritize the safety of our team members and customers through COVID-19, and continue to adapt and respond to our customers' changing needs. With sales, continue to focus on sales across all channels, be it in-store, online, phone, or commercial, and focus on growing top line and gross margin dollars. With stores, we'll continue investment in and optimization of the store network to maximize profitability, and we'll continue to trial alternative store formats to increase market penetration. With e-commerce, we'll continue to leverage our new e-commerce platform and continue to build on its capability. We'll continue to meet changing customer needs through our online offer, including expansion of payment options with the buy now, pay later. Continue to integrate our in-store and online experiences. Category evolution, continued expansion of communications, wearables, small appliances, and pop culture. Optimize category space allocations to maximize productivity of floor space. Supplier partnerships, build on our partnerships with major suppliers to extend our capabilities. With New Zealand specifically, we'll continue to execute on the strategy to improve performance in New Zealand. With services, we'll expand and extend our service offerings, continuing to enhance and develop in-store experience. With productivity, simplify processes and drive productivity with a focus on improved stock flow into store or back-of-house operations. Over on to page 21, The Good Guys. Again, with JB, I'll take this slide as read, as we'll cover it in greater detail as we move through. Over to page 22. The Good Guys FY 2021 sales. Total sales grew by 13.7% to AUD 2.72 billion, with comparable sales up 13.7% or the same. Sales momentum was strong throughout the year with heightened customer demand for home appliances and consumer electronic products. We saw growth in refrigeration, with strong unit growth across refrigeration and freezer sales alike. Laundry, with solid growth in larger capacity washers and heat pump dryers. Floor care, with significant growth across stick and robot vacuums as we continue to expand our offer across this category. Portable or small appliances had strong unit sales growth seen across coffee machines, cooking, and food preparation. Televisions, we saw growth there with solid unit sales across all sizes. Online sales were up 48.5% to AUD 258.3 million or 9.5% of total sales. If you exclude the Victorian sales during the period when they were temporarily closed, online sales represented 8.4% of sales. Our online and fulfillment system performed extremely well with the significant sales volume increases. Over to page 23, the earnings. Gross profit was AUD 608.6 million, with gross profit margin up 189 basis points to 22.4%, driven by combined lower discounting, product mix, and continued buyer improvements. Cost of doing business was 11.7%, down 100 basis points, and in absolute terms, grew 4.7%. Sales were up 13.7%. Our store wages remained well controlled throughout the year. Depreciation grew by 3.3%, with an increase in both depreciation on right of use assets and fixed assets. We saw strong operating leverage from the elevated sales growth, gross margin expansion, and disciplined cost control, drove strong EBIT growth up 90.2% to AUD 214.7 million, and EBIT margin was up 380 basis points to 7.9%. Turning to The Good Guys' key focus. As with JB, COVID-19, we continued to prioritize the safety of our team members and customers through COVID-19. We continued to adapt and respond to our customers' changing needs. With sales, continue our multi-channel strategy to drive sales across all channels, be it in-store, online, phone, or commercial. With stores, continue the store upgrade program to focus on adjacencies, supporting growth categories, and showcasing the home appliance categories. With e-commerce, we want to leverage capabilities to further connect the online and in-store experience, and we continue to meet changing customers' needs through our online offer, including the expansion of payment options with the buy now, pay later. Category evolution, continue to establish a leading position in the growing connected home appliances market. Continued expansion of telco products and services in partnership with Telstra. With supplier relations, we continue to build on our supplier relations and continue to enhance and evolve our offer with improving range and the introduction of new brands, especially to increase the relevance in the premium product area. Delivery experience, utilize group supply chain capabilities to provide customers an enhanced delivery experience. With productivity, the rollout of technology to streamline in-store processes. Focus on inventory efficiencies, right product, right time, at the right place. I will now hand over to Nick to talk through the balance sheet and cash flow. Thanks, Terry. Starting on slide 26, the balance sheet and inventory. Inventory at June finished at AUD 938.8 million, up AUD 199.5 million, as inventory availability continued to improve from the low FY20 closing inventory position, resulting from those COVID-19 related supply shortages that we called out last year. We've included the five-year inventory graph there, which really highlights that low closing stock position last year and the reversion to closer to normal levels this year. I would call out, we do manage stock to sales, and even with that improvement in availability, inventory supply is still tight, which you can see when you compare the closing inventory balance of AUD 939 million in FY21 versus the AUD 887 million in FY19, which is only up 6%, when sales across that period are up more than 25%. That's what's driving the increased inventory turnover, which was up 61 basis points to 8.3 times from 7.7 times in FY20, but more significantly, up 200 basis points from 6.3 times in FY19. Payables, which would ordinarily grow in line with inventory, were down year on year as inventory was purchased earlier to replenish inventories and to ensure we secured stock to support the continued heightened customer demand. Receivables were down year on year, as we continued to actively manage outstanding receivables, and other current liabilities increased primarily due to income tax payable arising from the elevated profit in the period. Turning to slide 27, highlights on the cash flow statement. Operating cash flows and operating cash conversion were impacted by the increases to working capital required to replenish those inventory levels from the low FY 2020 closing position that remained very strong over two years with the combined FY 2020 and FY 2021 cash conversion well over 100%. CapEx remains in line with our expectations as we continue to invest in our store portfolio, our online offerings, and strategic initiatives. FY 2020 CapEx, again, was low as a result of COVID restrictions impacting our ability to complete some projects. FY 2021 CapEx has returned to a more normal level. The dividends paid during the year include the final dividend of FY 2020 and the FY 2021 interim dividend, which both increased significantly year-on-year following strong increases in net profit in those periods. The final dividend for the second half of FY 2021, which is obviously elevated, is yet to be paid. You can see closing net cash of AUD 263.2 million there. On slide 28, capital management. We've today declared a final dividend of AUD 1.07 per share, fully franked, up AUD 0.17 per share or 18.9% on the FY20 final dividend, bringing the total dividend for FY21 to AUD 2.87 per share, up AUD 0.98 per share or AUD 0.519 and representing 65% of NPAT. The board will continue to regularly review the company's capital structure with a focus on maximizing returns to shareholders and maintaining balance sheet strength and flexibility, which we continue to consider very important in what remains an uncertain period. The record date for the final dividend is the 27th of August, with payment to be made on the 10th of September. I'll hand back to Terry. Thanks, Nick. We'll move to now to slide or page 30, the outlook slide there. FY22 year-to-date sales update for the period 1st of July to the 15th of August as we cycle the extremely elevated sales from the previous period. JB Hi-Fi Australia total sales was down 14.6%, with comparables down 14.9%. Over the two years, total sales were up 19.1%, with comps up 19.4%. New Zealand total and comp sales were up 8.4% and up 14.8% over two years. The Good Guys' total sales were down 8.1% with comps down 8.6%. Over two years, total sales were up 28.9% and comps up 28.2%. Whilst we have experienced some disruption and variability of sales as a result of the various state-based COVID restrictions, we have continued to see a heightened customer demand and strong sales growth rate over the two-year period. In view of the ongoing uncertainty arising with COVID-19, we do not currently consider it appropriate to provide FY22 sales or earnings guidance. We'll now turn to our final slide on 32. In closing out the presentation, we'll talk about the investment checklist, which I'm sure many of you know, so I won't cover in any great detail. However, a few comments. Both brands work hard to maintain their market leadership. For JB, technology and consumer electronics is at its core and front of mind purchase for consumers. For The Good Guys, they have a market leadership position in home appliance categories, but also cater for family consumer electronics needs. As a group, we work hard every day to maintain our position as the number one destination for technology, consumer electronics, and home appliances. Our long-term and ongoing focus on our multi-channel capabilities has definitely served us well over this extraordinarily disruptive period for customers. The combined power of our physical locations, the well-integrated online offering, phone sales, and our commercial teams all ensure we remain connected and ready to assist shoppers however they wish or indeed need to deal with us. We are focused on maintaining a resilient and highly relevant retail model. Also having a business that is a desired place to work for our team members and ensuring we continue to attract high-quality staff into the future. We will continue to deliver our commitment to our customers of big brands at low prices while continuing to invest for the future and ensuring we do so in a sustainable and ethical way. Thank you, and we'll now go to questions. Thank you. Your first question comes from Michael Simotas with Jefferies. Please go ahead. Morning, everyone, Terry, it's good to hear from you again on these calls. The first one from me, just on your recent trading in July and August. It seems like a very good outcome that you've effectively maintained your two-year growth rates in JB Hi-Fi Australia and The Good Guys, notwithstanding the COVID restrictions and closures. Is there any more color you can give us on variability across states and whether these store closures were actually a drag or whether there are offsets in other places? Look, you're right. We're cycling these significant volumes. Just a bit of color around the store closures. At any single point in time during that period, we had 30% of our stores closed, and as of today, it's about 55% of our stores closed. Compare that to about 5% this time last year. What you definitely do see, though, with store closures, that it does have an impact on the sales. I think with the store closures, what it really does demonstrate is the strength of the model and how the customers just seem to seamlessly switch to our online platforms. When the stores reopen, they flood back. We are seeing some impact from states such as New South Wales and Victoria. However, what you tend to see, just as a bit of color around that, what you tend to see is it's those high-involvement purchases, things such as cooking, higher ASP products, that tend to, I'd say, get delayed more than you lose. When the stores reopen, you tend to pick a lot of those back up again. Okay. That makes sense. In New South Wales, a couple of your competitors are still trading, at least to some extent, in-store, Officeworks and Harvey Norman. Do you think that's had much of an impact on you? Well, definitely Officeworks. They always appear on the essentials list, albeit we sell some of those similar products. Look, Harvey Norman is now closed in New South Wales. They did remain open for a period where we thought it was in the spirit of the right thing to do to close. No doubt, you just have to accept that some sales will bleed off into those retailers that are still open. As you can see from the results, it's not significant. Yep, I agree. All right. Second question from me. Your occupancy expenses, just on the face of the P&L, fell by about AUD 20 million in FY 2021. That implies they were down about 10% in the second half. Can you just talk us through what happened there? Is there something funny with AASB 16 coming through, or is there another issue? There is some occupancy savings with stores that closed, so that does play to it. Then the impairments, Michael, of the New Zealand right-of-use assets and fixed assets last year, some of that is going through in occupancy. Yeah, okay. It just seems like more of it's come through in the second half than the first half, where I would've thought store closures were more of a driver in the first half, and that New Zealand issue should've been about even across the halves. No, the impairment in New Zealand last year is significant. Like I said, AUD 20 million, AUD 21 million, Michael, in the second half last year. Yeah, it's just that it fell by more in the second half than it did in the first half, is what I'm saying. I would've thought the impact of that would be about the same in the two halves of FY 2021. We can take it offline if you like, but I'm just trying to understand the movement. Yeah, look, we haven't sought any material rent reductions from landlords. We've continued to trade well through the period and pay our landlords in full. There's obviously a little bit strained, that occupancy expense line now that rent doesn't go through there. It goes through the right-of-use asset depreciation and the interest. The two material lines on an ongoing basis are the energy consumption and the security costs, and yeah, we continue to manage those pretty closely. Okay. All right. Thank you. Thank you. Your next question comes from Shaun Cousins with UBS. Please go ahead. Thanks. Good morning, Terry. Good morning, Nick. Just a question around the inventory rebuild. Do you think you're still at the risk of losing sales given tight inventory, or do you remain in this quite positive environment, which is sort of a tight supply that supports gross margins, but no real loss of sales? Yeah, look, definitely we're feeling more comfortable with our stock levels, albeit they're not exactly where we would like them to be. Given that that stock level is probably elevated around the market, we are seeing discounting return to the market. We expect that that would have a slight impact on margin going forward. We are still seeing, though, that we definitely, in the early parts here, that we've still got stock shortages in some key categories. For JB, that's categories like computing. We've seen some significant stock shortages from Apple, from Microsoft, from HP, which tend to be those premium products. We're seeing shortages come through telco, again from Apple and Samsung being very short of stock, and for both brands in small appliances just being a bit tight on stock. We're lucky we've got multiple suppliers. Some of those sales we can move across to other suppliers. In the cases of computers, et cetera, it's a little bit hard when it's the premium products. It is still having an impact. Okay, thanks. Maybe just a little bit around capital management. I recognize the buyback in 2011 wasn't the best experience, and the environment remains uncertain. I'm just curious, given you're in a very strong net cash position, elevated franking, and fairly modest CapEx outlook, what are the factors holding back some form of capital management, particularly even just a slight increase in the dividend payout ratio, please? Well, maybe take a macro view for a start, Shaun, as Terry called it out when he was talking about trading in the recent period, 55% of our stores are closed today. I would say we are at a pretty uncertain period, in an uncertain period, having a strong balance sheet is absolutely a priority. If you get into just some of the detail around those movements in working capital year-over-year, look at, I think it's slide 27, you'll see there's still a bit of a working capital build to come back into the business in the next 12 months. We've got a big tax bill still to pay. I think we do have a pretty material dividend to pay. I think if you calculate that out, it's AUD 120 million, the final dividend. There's still a number of significant cash outflows to come out, which will obviously eat into that cash balance that we have today. We're keen just to preserve the strength of the balance sheet, have that flexibility to give us optionality if we need to, and to make the most of any opportunities that arise over the next 12 months, whether that even is just looking for opportunities to secure stock when they do arise. It's that balance sheet strength and flexibility that we just want to make sure we maintain over the short term. Obviously, we'll continue to monitor it and reassess it every reporting period. Okay, fantastic. Thanks, Nick. Thanks, Terry. Thank you. Your next question comes from David Errington, the Bank of America. Please go ahead. Morning, Terry. Morning, Nick. Terry, I thought this is relevant to you coming from The Good Guys, but I never thought I'd see the day where gross margin for The Good Guys would exceed that of JB Hi-Fi Australia, which is an astoundingly great result. I'm trying to work out, though, obviously, the sustainability of that gross margin. I suppose my question is, you've highlighted that I think you're talking more about, what was the actual phrase for it? I think you said basically, improvement in key categories. I'm wondering if you're selling yourself a bit short there. Is it benefiting premiumization of products? Is it scale coming through? I know promotional activity is led by suppliers, but can you give us a little bit more color on what's driving that improved gross margin in The Good Guys? Obviously working out how sustainable it will be going into the future. Yeah, look, if you think of The Good Guys, what we were seeing during the year was obviously some strength or mix playing a part. The strength coming from the HA components of the business, which is higher margin, albeit, we continue to grow our CE offer. It was just that we were seeing a lot of strength in the HA. Definitely, less discounting was going on during that period. Stock was tight. Consumers weren't shopping around. They were coming in. That’s not just because of discounting on floor, that’s just because we don’t need to have as many promotions running at that time. One, you just don’t have stock to promote. There’s less actual promotion going on in pricing. As I mentioned, that lack of shopping around. I think the benefits going forward is going to be that we'll continue to see excuse me, mix play a positive impact, but that discounting will return. It is returning. We have no doubt about that it will continue to return. I think one thing that I will say, look, on that positive side of mix returning, there is also the fact that we've now set this new watermark in the business. What our buyers are just great at is taking that and absolutely striving to maintain that level. They work hard with suppliers to try and find support and deals to be able to maintain it. They look at their own mix within the categories to maintain it. It really drives actions within the buyers. You've got to suspect it's going to be hard to maintain with the discounting, but there is some good emphasis there on trying and getting us close to it. One thing we are confident on, it will be at a higher level than we would've anticipated it would have been a few years ago. Yeah. Somewhere in between. You're saying a little bit of discounting coming back, but you still got measures going forward, such as premiumization still coming in, also driving working harder with key suppliers, and also scale you haven't mentioned. We should expect it to remain high, but not at these levels. Is that what you're saying? Not trying to put words into your mouth, but is that what you're saying? Without giving guidance, David, obviously, there's a lot of moving parts in there, but it does, to Terry's point, it does feel there's some benefits of the environment in there, but absolutely in Good Guys, I think you're seeing some of the benefits of that improved buying, improved merchandising, improved ranging in there as well. Yeah. Okay. Nick, while you're there, perfect to question on you. Just to get a bit more understanding on the working capital. There's a lot of moving parts there. Going into 2022, did you mention that you still got a working capital build to go? With these payables, I expect that you probably get a bit of release into 2022. Where are you actually right now with regard to your working capital cycle? Are we expecting a working capital release a little bit in this current year, or are we expecting still a little bit of a build? It's still a build into 2022. If you look at slide 27, you'll see there's a cash flow rec there. I think in FY 2020, we had a AUD 400 million release of working capital. Yep. In FY21, that swung back by AUD 241. There's still a net AUD 160 million release there. The bulk of it, inventory's got back to a level which we're probably reasonably comfortable with, even though preference would be to have that stock turned closer back to where it was. Payables is the one that, because the stock is turning so quickly, the payables balance is elevated. At some point, David, that payables balance sort of comes down to a more consistent percentage of inventory as it was back in FY19. Okay. That's the payables. Okay, excellent. Thank you, Nick. Thank you, Terry. Thank you for the answers. Thank you. Thank you. Your next question comes from Ross Curran with Macquarie. Please go ahead. Hi, guys. Congratulations on a great result. Two questions this morning. One short term. This kind of goes back to Michael's question at the start. Do you think you might be able to give us some color on the trading by state that we're seeing at the moment, how, say, W.A. is traveling relative to, say, New South Wales? Yeah. Look, absolutely. If you sort of rank them in states without giving numbers, WA would be the strongest. You'd hit Queensland, South Australia, and then you start to hit the states that have been more materially impacted by restrictions. As Terry called out earlier, I think we are doing a good job of capturing those sales online when the stores are closed, but you do absolutely miss a little bit, and you can see that in the state-by-state breakdown at the moment. Okay. Secondly, this is a longer-term question, that clearly COVID's changed consumer behavior with less travel spend finding its way into elevated consumer durable spending. Terry, presumably over your tenure as CEO, these COVID restrictions we're dealing with at the moment start to ease and customer behavior normalizes. Do you think it's possible for the business to hold margins if we go back to a pre-COVID AUD 7 billion sales figure? I think we've pointed out that there is just going to be some challenges holding margin. We cycled, to your point, an unusual time. As we revert back to, let's call it normal, maybe COVID normal, whatever it may be, it absolutely becomes more challenging to maintain those margins. Okay. Thank you. Thank you. Your next question comes from Grant Saligari with Credit Suisse. Please go ahead. Good morning, Terry, Nick. Thanks. Could you, Terry, elaborate on the game plan in New Zealand? You sort of exist there, but it's a market where you really should do a lot better, and you've noted that in the past yourselves. What's the game plan there over the next several years? Look, to be fair, I haven't got my seat permanently under the desk yet. To try and give you a game plan, obviously we're remaining focused on improving that business and continuing to grow it. We've seen some reasonable results starting to appear in the sense of growth. Look, I need a bit more time to really get my head around what that future could look like. Well, I look forward to hearing the answer to that. On the balance sheet, you indicated earlier that there's a number of uses for cash. Are you thinking that the balance sheet could be used beyond that for growth opportunities? How should we think about the availability of investment opportunities for JB at the moment, and therefore how the balance sheet could be used over the next year or two beyond COVID? I think, Grant, you know we're always looking for growth opportunities, and we'll continue to investigate opportunities as they arise. I would point out that probably most people in our sector have had a pretty good period, and that may mean that opportunities don't pop up in the short term, but we'll continue to assess and be ready in the event anything does. It's interesting you'd called out Officeworks earlier. Is commercial an area where you could be bigger? Small business. Yeah. Look, we've called out commercial for a number of years, and that we're continuing growing that business. We still think there's plenty of opportunity to grow and improve our offer there, particularly in categories like education. Okay. All right, thanks. Appreciate the color. Thank you. Your next question comes from Ben Gilbert with Jarden. Please go ahead. Morning, guys. Just first one from me, just on the promotional piece. Could you give us any insight into how your level of promotions, how materially it fell last year? Did you see you went from 50% on promotion to 20%? I'm just trying to get a bit of an idea around what sort of deflationary headwind that might mean into FY 2022 if they come back. Also just trying to have a bit more of a think around what that impact is to gross margin. Hi, Ben. Promotionally, we maintained our promotional program out there. It's not so much around the promotional program, it's the price that's in that promotional program. I appreciate that's what you're trying to understand. We're continuing to promote and promote heavily. Again, we would find products where we could offer a great value to the consumer. However, the depth of that didn't have to be as great, and the starting point didn't have to be as great. There was a few periods there where definitely we were limited in what we could promote, without question. However, more often than not, we were able just to maintain our normal promotional program. Do you think, Terry, that means, because if you look at the CPI numbers and a bit of those issues with that in terms of how they comp it and put it together, but it looks like we had inflation across a number of the CE categories last year for the first time in 10 odd years. With promotions coming back, do you think that means we should move to a deflationary situation again through FY 2022? I think we've called that out a few times now that discounting, we anticipate that discounting will return to the market as stocks improve for everyone. Again, it's not necessarily people discounting on the floor, it's just promoting at a lower level to try and drive traffic to themselves. Look, there's definitely some challenges there. On the flip side, we've got some positives which will come through, which will be continued focus, for example, consumers focused on their homes. We should see HA side continue to grow, albeit, and therefore, help affect the mix side of it as well. Yeah, look, it's going to represent a bit of a challenge, but we're not really too concerned, if you will, about it at this stage. Just another second one for me, just around cost. You guys obviously do a phenomenal job around managing your cost. When we start moving, and acknowledge obviously they're very strong results on two-year basis, but if we just look on a one year, you see that there was obviously still very well managed and you sort of saw what you would have thought sort of inflation type increases in the CODB. Is there much cost that comes out through this year that you can manage out as your comps turn negative? Or is it just a matter of the staffing levels remain the same, you just get a bit of that negative lever-- or that positive leverage you got, you just give a bit of that back? Look, we'll continue to remain focused on the customer service side. We'll manage the wages to ensure that we meet everything that we know we should with customers. I think what we'll see is, as we know, is that the FY21 benefited from that leverage of the sales. There won't be a great deal we'll be able to cut out, but obviously we'll continue to keep a real close eye on it. As to your point, our teams really managed that well. Just final one from me, Terry and Nick, sorry, I know I've asked you this a number of times over the years, but just interested, Terry, now you're coming in as CEO again, your view around investment in two areas. One is CapEx on supply chain and ability to have more of your own warehousing, be it rapid deployment centers or whatever it is. Second thing also around on the OpEx side, around putting in a proper or decent CRM across the group. How you think about those two things in terms of need for investment and where that prioritizes in terms of how you're thinking about the world. Look, warehousing, or supply chain, full stop, is something that we need to continue to remain really focused on. We're comfortable with where we sit today with the new home delivery centers opening, which we've made those investments, as we speak and some small minor ones to flow. We'll continue to look at that and continue to ensure that it fits the purpose. If we need to, we will invest. To say that there's going to be CapEx is, or a significant amount of CapEx is wrong, to say that we've got a high focus on it is right, we will continue to review it. When it comes to CRM, both businesses have a CRM. I think the system's probably not going to be material if we were to do investments in it. Currently, we've got our current CRMs working in both businesses today and effectively. Okay. Thanks a lot. Cheers. Thank you. Your next question comes from Craig Woolford with MST Marquee. Please go ahead. Morning, Terry Smart. Morning, Nick Wells. Wanted to ask a question about gross margin. It's been a popular topic. In the JB Hi-Fi Australia business, gross margins in the second half were up quite substantially. It contrasts with the first half performance. 1 more a technical question to begin with. If there's less discounting, is that positive or negative for percentage gross margins? The discounting is typically funded by suppliers. Just for clarity, promotions are funded by suppliers. The on-floor discounting is funded internally, if you will. That's what we saw less of, as well as just advertising promotionally. It's, yeah, it's that on-floor discount that a consumer would get if they come in and haggle for a price. Right. The second half gross margin performance for JB Hi-Fi Australia, what drove the increase in margins there? Well, part of that is just cycling the significant tech categories growth that we saw in the first half from the work from home and homeschooling. It typically is more consistent between halves, but the second half is about 50 basis points higher than the first half, and it's up quite a bit on 2019 levels as well. It seemed like even though you're cycling numbers from last year, it was still a good result on two years ago. Yeah. Craig, if you compare half-on-half, the first half was absolutely a strong Apple period, and that weighs on margins overall. That mix impact on margins. Second half, we saw a more reversion to a more standard mix, and then you overlay some of those things we talked about with The Good Guys, with less discounting on the floor, a little bit less promotional activity. That is translating into a probably higher than two years ago margin in the JB. Okay. Understood. Thank you. My second question, just on store numbers. Across the group, the last four or five years, store numbers are virtually flat. What is the outlook over the next couple of years for store numbers for each of your major brands? Look, again, you can see they're relatively flat, but there's openings and closings in those numbers. We continue to trial some smaller footprints in JB. Airport locations, which acknowledging at the moment are a bit quieter, but also some of those smaller shopping centers that we may have historically not been able to get to. The Good Guys, we opened the first store in a while down in Launceston, and it's trading very well, which is pleasing. Across the group, we'll just continue to assess opportunities as they arise. Okay. Thanks, Terry. Thanks, Nick. Thank you. Your next question comes from Tom Kierath with Barrenjoey. Please go ahead. Oh, good day, guys. A couple of questions for me. Just on online, I presume you're doing things a bit differently now than what you were, say, back in February, March last year when this all kicked off. Can you step through the things you're doing differently and whether that online business is kind of scaling now and you're driving some efficiencies there? Yeah, look, I've got to say, one thing this period has done has stress tested all the systems and processes around online. Obviously we've done a lot of learning during that time. Those learnings will obviously be embedded into the system and will benefit us in the long run. Again, it's just that deeper understanding of the online channel that the COVID has driven. Sorry? Oh, is it more efficient now, the way that you process online orders, whether it be click and collect or delivery? Oh, yeah. Look, every part of the system, we were able to and took the advantage to see as much of streamlining it as much as possible. The answer is yes. Okay. Tom, it's efficient, it scales. There's been significant leverage. We've talked about it before. We're pretty agnostic to whether the customer trades in store or online because it's profitable for us. It's relatively small basket sizes and easy to pick and pack. It is scaling, and it's working well for us at the moment. We'll continue to test different online fulfillment channels. We're doing things in the background, and I know to Ben's question, you probably don't see it, but in terms of testing super hub stores where we consolidate volume into more stores for fulfillment, testing different systems, back-of-house processes. We'll continue to test it and improve it over time. Yeah, cool. Just a second one on suppliers. Are they increasing prices in some categories just with the chip shortages and freight rates that have gone up a lot? I'd just be interested to understand, yeah, if you are seeing some straight-out price rises and whether consumers are accepting those. Well, there's definitely conversation around price rises, but we actually haven't seen any flow through or anything of significance flow through as yet. I think there still appears to be a little bit reluctance to pass some of them through, albeit we would anticipate that at some point that will have to happen. At this stage, we don't have anything definitive. Okay, cool. Thanks, guys. Thank you. Your next question comes from Mark Wade with CLSA. Please go ahead. Good morning, guys. The question for the business, coming in now as taking the top role there, Terry, what do you think will stay the same? More importantly, what do you think it needs a real overhaul? Look, again, I think I mentioned it before, I haven't got my feet firmly under the desk as yet. It may be a bit premature. The comments I can make, though, is we've always had, and from Richard it was the same, a very collaborative approach to strategy and how we think about it and have some input. I don't walk in here I'm confident I know what's going on. I got to get my head around some things. I look at the business and go, it's just continuing to progress with our current thinking at this point. I do admit I have a passion around our staff and their contribution. I think what you'll see is more change in focus. That just happens to be relative to just the ongoing business and changes that you would have seen anyway or may have seen anyway. Sure. Lastly, obviously, as you've said yourself, it's been an extraordinary period, and I'm thinking around the impact of availability and service and some of the price changes. How has that affected the customer satisfaction or the brand perception over the last 18 months? Are you happy where it's at the moment? Yeah. Look, our NPS scores have been holding. I think if you take where you would think, in New South Wales, where our delivery systems would be challenged, our NPS scores have skyrocketed there. We're actually, I think, the converse, I think people have been happy with what we've been able to deliver during this time and how we've been delivering it. Okay. All right. All the best. Thanks so much, guys. Okay. Thank you. Your next question comes from Phillip Kimber with E&P. Please go ahead. Hey, guys. Question, really, it's flowing on from all the gross profit margin questions. The really strong sales result, I'm sure you've had a big volume pick-up, but I suspect ASPs have gone up at a decent clip as well. Terry, I'd be interested in your history here as to when you've had periods like that where you get these phenomenal growth in ASPs, arguably for reasons that aren't sustainable. How quickly have they unwound in the past? Can they unwind really quickly, or do they tend to just take their time, gradually returning to more normal levels? Oh, extremely hard question to attempt to answer, to be honest. There's so many moving parts in that. We've got some benefits in The Good Guys of property and the investment people are putting in property that can maintain things like volume and ASP, of course, as we move into premium. There's just so many moving parts that it's really hard to do it. Look, at the end of the day, all our teams are motivated and focused on a number, sales, a sales number, and we'll strive to achieve that, whether it's through ASP or volume. They'll remain focused on just achieving a number. Okay. Maybe tipping it back. I'm not asking for specific guidance, but tipping it back on that gross profit margin question, you made it pretty clear that you're expecting discounting to normalize and go back to normal levels. There's some other positive tailwinds. Does the discounting just flip a switch and go straight back to the old level, or does it take time to gradually grind down to a more normal level of discounting? I guess I'm just trying to understand how quickly the gross profit margins can revert back to the, whatever normal is, more normal level. Yeah. Look, you could anticipate that it would happen, I say reasonably quickly. We're also in a period where we've got lockdowns, and a lot of disruptions with states, which can then impact that discounting as well. I think if you were to say we're right back to normal, then I think we'd find everything would go back to normal. We've just got so many disruptions, states impacted in different ways, that I don't think it'll be a switch. I'm not sure it's going to be slow either, but I don't think it's going to be just a switch, again, because of all the disruptions that we're facing. Yep. One last quick one. I know you won't give a number here, but in terms of when the stores are shut, through your experience in Melbourne and Victoria, I think you kept something like 75%, 80% of your store sales. Are you finding lockdowns similar this time around in that you're keeping a big percentage of your sales through your online channel, or is it a little bit different this time around? Is it surprising you, the outcomes you're getting when your stores are locked down? No. We seem to be maintaining a similar level. Yeah. Online doesn't offset at all, but sorry, you maintain a very big percentage of stores' sales, whether they're open or shut. Yeah. Obviously, you don't keep 100%, but you manage to keep the vast majority by the sound of it. You do. The answer is yes. The big question is what you lose is generally, and I think this is the power of having a multi-channel retail environment for what it's worth is, what you're losing is generally those products and services that aren't normally transacted online. I'm talking premium product, I'm talking cooking, I'm talking services, telco Connects. There's products that aren't generally transacted online that what we've still really got to get a real clear understanding are they just delayed? They are, but how much of that is delayed and comes back when the store reopens? Yep. That's right. Thanks, Terry. Thank you. Your next question comes from Alexander Mees with Morgans. Please go ahead. Thanks very much. Thank you, Terry, Nick, to take the question. I'll keep it to one to avoid this becoming the longest call in history. Just on the online sales penetration. Clearly, the growth in that number, quite a highlight of the result in FY21. The penetration increased clearly during the period of temporary store closures. I wonder if COVID-19, you think, has accelerated a trend that was already underway, and if you think you can hang on to that level of penetration in the year ahead, even if we do go back to a more normal situation. I suppose related to that, is there much less need to discount product when you're selling online? Thank you. That last one is easy to answer, and that is, yes, you don't tend to discount as much when it's online. You don't also get the attach of a product when it's online, or to the same rate. Then online penetration, I think what we would see, Alexander, on the states, those states that have only had short lockdowns, they probably revert back to a more normal, closer to a pre-COVID online versus store mix quickly. What we've seen in Victoria as an example, when we've been through an extended lockdown in Victoria, the online percentage tends to settle a little bit higher than the other states. Obviously, it's too early to say whether we'll see a similar thematic in New South Wales yet. We will be planning for it in the event that it occurs. If I could just add, again, one thing that is absolutely demonstrated with COVID-19 is that people will, with the brand, shift to online. Yes, we don't pick up 100%, but they will shift to online. As soon as we reopen the stores, customers are flooding back in. It's really demonstrating their way of how they want to shop. We've always been about, we'll give them a great experience in both, and we'll let the customer make their mind up. I think what COVID-19 has absolutely done is got us to a really deep understanding of the online channel so we can maximize it. Customers are voting with their feet and coming back into the store when we're open. That's the type of products that we do sell, that they want to see, they want to compare, and they absolutely want to talk to a salesperson. Even though they've researched heavily online, they just want to get confirmation from a salesperson they're making the right decision. Is that penetration continuing? There's no doubt it does. This has also proven that people just love that physical environment as well. That's great. Thanks, and well done for a great performance last year.