Good morning, and welcome to the JB Hi-Fi 2021 Annual General Meeting. My name is Stephen Goddard. I'm Chairman of the JB Hi-Fi Group, and I'm your chair for today's meeting. We have a quorum, and I'm pleased to declare the meeting open. I'm delighted to be able to extend a warm welcome to our shareholders, proxies, and guests who are participating through our online meeting program for this virtual AGM. I would like to start by introducing my fellow directors, Beth Laughton, Mark Powell, Geoff Roberts, Melanie Wilson, Richard Uechtritz, and our executive directors, Terry Smart and Nick Wells. Our Company Secretary, Doug Smith, is also in attendance, as is Travis Simkin of our auditors, Deloitte Touche Tohmatsu. Obviously, as this is a virtual AGM, there is a risk of technical difficulties.
If this happens, it will be at my discretion whether we continue the meeting or postpone or adjourn the meeting. In the unlikely event that I drop out of the meeting, the chair of the company's Audit and Risk Management Committee, Beth Laughton, will assume the chair. The agenda for today's meeting is as follows. Procedural items. Items of business. Voting opens. Chairman's address. The Group CEO's address. Directors standing for election and re-election. Proxy votes received. Questions on all items of business. Voting closes. Final votes and the close of meeting. I'll start by briefly setting out how the virtual meeting will work. Today's meeting is being held online via the Lumi platform. This allows shareholders, proxies, and guests to attend the meeting virtually. Attendees can listen to the proceedings and view the slides. In addition, shareholders and proxies have the ability to ask questions and submit votes.
Online attendees can submit questions at any time. To ask a question, select the Messaging tab at the top of the Lumi platform. At the top of that tab, there is a section for you to type your question. Once you have finished typing, please hit the arrow symbol to send. Please note that while you submit questions from now on, I will not address them until the relevant time in the meeting. Please also note that your questions may be moderated, or if we receive multiple questions on one topic, amalgamated together. For those shareholders who wish to ask a verbal question on audio, an audio questions facility is available during the meeting. To use this service, please pause the broadcast on the Lumi platform and then click on the link under Asking Audio Questions.
A new page will open where you'll be prompted to enter your name and the topic of your question before being connected. You will listen to the meeting on this page while waiting to ask your question. If you have any issue using this system, please return to the Lumi platform. Finally, due to time constraints, we may not get to answer all of your questions. If this happens, we will answer them in due course via email and posting responses on our website. Voting today will be conducted by way of a poll on all items of business. In order to provide you with enough time to vote, I will shortly open voting for all resolutions. When I do this, if you are eligible to vote at the meeting, a new Voting tab will appear.
Selecting this tab will bring up a list of resolutions and present you with voting options. To cast your vote, simply select one of the options. There is no need to hit a submit or enter button as the vote is automatically recorded. You do, however, have the ability to change your vote up until the time I declare voting closed. Results of voting will be shown at the end of the meeting and released to the ASX after the meeting. If you have any difficulties voting or submitting questions, please consult the online meeting guide, which can be accessed within the platform or on the JB Hi-Fi investors website. The items of business for the meeting are set out in the notice of meeting and are as follows. To receive and consider the financial and other reports for the financial year ending 30 June 2021.
To vote on the election and re-election of directors. To adopt the remuneration report. To approve the allocation of restricted shares to each of the executive directors. I now declare voting open on all items of business. The Voting tab will soon appear. Please submit your votes at any time, and I'll give you a warning before I close voting. We now move to my chairman's address. The financial year ended 30 June 2021 was a strong year for JB Hi-Fi Limited and its subsidiaries, the group. We are pleased to report record sales and earnings for the year, a period where we continued to respond and adapt to the challenges resulting from COVID-19.
Our continued focus on the customer, combined with the strength and competitive advantage of our multi-channel offer, be it in-store, online or over the phone, enabled us to seamlessly meet our customers' increased demand throughout this period. We would like to recognize and thank our team members across Australia and New Zealand who worked tirelessly to deliver this record result. Our motivated, passionate, knowledgeable, and highly trained staff continue to be our most important asset. We believe the group is an employer of choice with an inclusive, busy, enjoyable, and, most importantly, safe working environment that helps us to continue to attract and retain high-caliber staff. As the challenges associated with COVID-19 continue, the health, safety, and well-being of our team members, customers, business partners, and the wider community remain our highest priority.
As previously announced, following a smooth and successful transition period, Group Chief Executive Officer Richard Murray left the group in August 2021 and has been succeeded by Terry Smart. Terry has a proven record as one of Australia's leading retail executives, both as CEO of the JB Hi-Fi business and more recently as Managing Director of The Good Guys. We look forward to him applying his considerable talents to both of the group's brands and continuing to deliver on the group's previous success. The board also thanks Richard for his outstanding contribution to the group over the past 18 years and wishes him all the best for the future. In addition to Terry's appointment, the Group Chief Financial Officer, Nick Wells, has also joined the board as an Executive Director. Nick is a highly rated and valued member of the group's executive team.
We see Nick as an important part of the group's future, and his appointment to the board alongside Terry reflects this. Terry and Nick's appointments are a testimony to the quality and depth of our management team and the group's succession planning. Turning to the group's operating model, the group comprises two leading retail brands, JB Hi-Fi, with a focus on technology and consumer electronics, and The Good Guys, with a focus on home appliances and consumer electronics. The value proposition for each brand centers around ranging the best brands at low prices, supported by exceptional customer service across our store network, our online and phone channels, and through our commercial business. The dual-branded retail approach is underpinned by five key enablers that provide the group with a unique competitive advantage, being scale, a low-cost operating model, quality store locations, strong supplier partnerships, and our multi-channel capabilities.
An integral part of the group's ongoing strategy is to encourage innovation and diversification through new products, online, supply chain, merchandising formats, advertising, and property locations in a controlled and responsible manner to ensure that we remain current and relevant to our customers. We have a culture of embracing change, which is seen as a natural part of our business, and this approach provides opportunities to increase revenue, margin, and productivity. The group's FY 2021 sustainability report outlines our commitment to having a positive impact on our people, our community, and our environment. As set out in the report, we are committed to developing our people and providing them with a safe and respectful workplace while looking for ways to improve work flexibility, diversity, and inclusion.
Giving back to the communities within which our team members live and work, and minimizing the impact of waste and greenhouse gases generated by our operations on the natural environment. We are pleased with the progress made in these key areas of focus, which at FY 2021 included our commitment to reach net zero direct Scope 1 and Scope 2 carbon emissions by 2030. Rollout of an updated equal opportunity and workplace behavior policy to all team members. Launching a revised set of diversity and inclusion initiatives. Workplace giving donations totaling AUD 3.7 million and AUD 28.1 million since inception of our programs. JB Hi-Fi's Helping Hands program winning Workplace Giving Australia's 2020 Best Overall Program and Best Innovation awards. Continuing to work with suppliers to embed our ethical sourcing policy.
Continuing to explore waste reduction, reuse, and recycling initiatives led by the group's operational waste and recycling working group, and ongoing improvements in sustainable packaging. The FY 2021 sustainability report, which can be found on the group's investor website, has received an overwhelmingly positive response from our team members. The group regularly reviews all aspects of its capital structure with a focus on maximizing returns to shareholders while maintaining balance sheet strength and flexibility. In closing, the board remains focused on building long-term shareholder value. For the record, since JB Hi-Fi listed in October 2003, the JB Hi-Fi share price compound annual growth rate is 20.3% to 26 October 2021, compared to 4.6% on the ASX 200 accumulation index over the same period.
The earnings per share compound annual growth rate is 22.9%, and the dividend per share, fully franked compound annual growth rate is 24.2%. More recently, over the past three years, the JB Hi-Fi share price compound annual growth rate is 28.4% to 26 October 2021, 5% on the ASX 200 Accumulation Index over the same period. The earnings per share compound annual growth rate is 29.5%, and the dividend per share, fully franked compound annual growth rate is 29.5%. I'd like to take this opportunity to thank my fellow directors, the executive team, and our store and support teams for their unwavering commitment to the ongoing prosperity of your company and its shareholders. I now invite Terry to address the meeting on the operational result.
Thank you, Stephen, and good morning, ladies and gentlemen. First, I'd like to acknowledge the confidence that Stephen and the board have shown in me in appointing me as Chief Financial Officer. I'm excited to take on the role and believe that in JB Hi-Fi and The Good Guys, we have two of Australia's most loved, respected, and successful retail brands. Both businesses continue to be well-positioned to maximize the opportunities ahead of them, and I look forward to working with the two best retail management teams in Australia and New Zealand. As we have said before, retailing is a dynamic and exciting industry, and JB Hi-Fi and The Good Guys are market leaders in their respective sectors. The core of our proposition has been and always will remain an unwavering focus on our customers.
Our customers have continued to turn to us for their technology and home appliances need in these unusual times. Our over 13,000 dedicated and knowledgeable team members across Australia and New Zealand have responded and adapted in an amazing manner which makes sure we can meet these needs safely and efficiently and effectively. Turning to our last financial year's results, FY 2021 was a strong year for the group, with sales of AUD 8.9 billion, up 12.6% on the prior year, including group online sales up 78.1% to AUD 1.1 billion. EBIT was up 53.8% to AUD 743.1 million. Excuse me. NPAT was up 67.4% to AUD 506.1 million.
Earnings per share was up 67.5% to AUD 4.408 per share. Total dividends for FY 2021 were up 51.9% or AUD 0.98 per share to AUD 2.87 per share. The group had 316 stores across Australia and New Zealand as at 30 June. JB Hi-Fi Australia 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. The key categories was communication, computers, games hardware, visual, and small appliances. Online sales grew 93% to AUD 780 million or 13.1% of total sales.
Elevated sales growth, combined with growth margin expansion and disciplined cost control, resulted in strong earnings growth. EBIT was up 33.6% on PCP to AUD 523 million, with EBIT margin up 142 basis points to 8.8%. JB Hi-Fi in New Zealand, total sales were up 17.4% to NZD 261.6 million, with comparable sales up 17.4%. The key growth categories was computers, visual, communications, games, hardware, and small appliances. Online sales in New Zealand grew 35.6% to NZD 27.6 million or 10.6% of total sales. EBIT was NZD 5.8 million, a significant improvement on the prior year, and we are pleased to see the New Zealand business return to profitability.
The Good Guys total sales grew 13.7% to AUD 2.72 billion, with comparable sales up 13.7%. Sales momentum was strong through the year with heightened customer demand for home appliances and consumer electronics products. The key growth categories was refrigeration, laundry, floor care, portable appliances, and visual. Online sales were up 48.5% to AUD 258.3 million or 9.5% of total sales. Strong operating leverage from the elevated sales growth, combined with gross margin expansion and disciplined cost control, drove strong EBIT growth. EBIT was up 90.2% on PCP to AUD 214.7 million, with EBIT margin up 318 basis points to 7.9%.
The group's balance sheet continues to grow and strengthen with low financial and operating leverage, evidenced by a solid fixed charges cover of 4.6x and no net debt. With regards to FY 2022 trading, we have today provided a sales update for the period 1st of July 2021 to 30th September 2021, as you will see on the slide. In Q1 FY 2022, despite the disruption and variability to sales as a result of the various state-based COVID-19 restrictions, we continue to see heightened customer demand and strong sales growth rate over a two-year period. In October, we have seen sales momentum continue and have benefited from the reopening of New South Wales stores and changes to the timing of key product releases versus the prior year.
While the start to the year has been significantly impacted by COVID-19 restrictions and, in some states, extended periods of store closures, we have demonstrated our ability to adapt and respond, to continue to meet the strong demand from our customers. The combination of our passionate and knowledgeable team members, our multi-channel offer, including our quality store locations and our established online offering, gives us confidence we can, as we enter this important Christmas period. I look forward to another exciting and successful year in FY 2022.
Thank you, Terry. Item one on the agenda is the consideration of the financial and other reports. I will take these reports as read and received, and shareholders will have the opportunity to ask questions later. I now move to item two, being the election and re-election of directors. Item two on the agenda relates to the re-election of myself and Richard Uechtritz as directors, and the election of Geoff Roberts and Nick Wells as directors. As I'm one of the directors standing, I will hand over the chair to my colleague, Beth Laughton, at this point.
Thank you, Stephen. Item 2A relates to the re-election of Stephen Goddard. Stephen was appointed to the board in August 2016 and became chairman on the 1st of Jul 2020. Stephen is also the chair of the company's Remuneration and Nominations Committee and was a member of the Audit and Risk Management Committee until the 30th of June 2020. Stephen has more than 30 years retail experience, having held senior executive positions with some of Australia's best-known retailers. These include finance director and operations director for David Jones, founding managing director of Officeworks, and various senior management roles with Myer. Stephen is currently a non-executive director and chair of the Audit and Risk Management Committees of GWA Group Limited, Accent Group Limited, and Nick Scali Limited. I will now ask Stephen to say a few words.
Thanks, Beth. I've worked in many different areas in a number of retail businesses over those 30 years, which has given me a good sense of the competitive environment in which we operate and what a retail business needs to do well to be successful. I was on the board of David Jones for nearly 10 years as finance director and along with my other public company board experience, I feel this equips me well for my role as chair of the company. I have great respect for the business and its achievements over a long time, and the high quality of Terry, Nick, and the management team. I look forward to supporting the company as it grows and prospers. Thanks, Beth.
Thank you, Stephen. I will now hand the chair back to Stephen.
Thank you, Beth. Item 2B relates to the re-election of Richard Uechtritz. Richard has over 30 years' experience in retailing. He was co-founder of Australia's two leading photo chains, Rabbit Photo and Smiths Kodak Express, and was a director of Kodak (Australasia) Proprietary Limited. Richard led the management buy-in of JB Hi-Fi in July 2000 and was CEO and managing director until his resignation from these positions in May 2010. Richard rejoined the board in April 2011 as a non-executive director. He is also a non-executive director of Seven Group Holdings Limited. I'll now hand over to Richard to say a few words.
Thank you, Stephen. Stephen's mentioned most of it. I've had experience as a public company director for over 20 years with various companies. I've also been on the board of an Australian subsidiary of an international company. I've had senior management experience in business, having been a CEO for 25 years. In that time, I have also led two companies through an IPO process. Since ceasing to be a CEO 11 years ago, I have been a public company director of two significant companies, this one and Seven Group Holdings.
I've also stayed in touch with the business world, having investments in a number of smaller companies in various industries where my business experience is sought and given as an advisory member. With consideration to the above, I believe I have the experience to continue to contribute as a board member of JB Hi-Fi, in particular, as most of my business life has been in the retail industry. Thank you.
Thank you, Richard. Item 2C relates to the election of Geoff Roberts. Geoff was appointed to the board in January 2021. He recently retired as Group Chief Financial Officer of SEEK Limited, having joined them in 2015. He has over 35 years' finance experience, including as Group CFO of AXA Asia Pacific Holdings Limited for seven years. Geoff is a committee member and chair of the Audit Committee of the Melbourne Cricket Club and was formerly a director and chair of the Audit Committee of AMP Limited. I'll now hand over to Geoff to say a few words.
Thanks, Stephen, and good morning, everyone. I was pleased to have been asked to become a board member of your company, subject to your approval, of course, for a number of reasons. The quality management team, the two leading brands with important purposes, with JB helping people with better ways to live, learn, work and play, and The Good Guys help families live better for less. Your company's growth story with opportunity for continued multi-channel growth. I believe my executive experience as Group CFO of SEEK and AXA Asia Pacific in high growth and online companies will, I hope, assist in the JB growth story in three main areas. Firstly, finance and risk skills. Group CFO of two large listed high growth companies for over 12 years, including managing through the global financial crisis and COVID.
Secondly, experience with growth companies with both AXA and SEEK nearly tripling in market capitalization over circa six years each through both organic and inorganic growth. Finally, online experience with my last six years as CFO of SEEK, a large online company. Since I joined your board, I've been impressed with the JB management team and how they've continued to adapt to the changing needs of their employees and customers and how they've embraced the fast-emerging ESG challenges, including climate change. As I retired from executive life on 30th of June, I have the time, focus, and I believe the experience to support the JB team and would appreciate your support to be elected as a director. Back to you, Stephen. Thanks.
Thanks, Geoff, and welcome to the board. Item 2 D relates to the election of Nick Wells. Nick was appointed to the board as an executive director on 27 August 2021, at the same time as new Group CEO, Terry Smart, joined the board following the departure of previous Group CEO, Richard Murray. Nick has been Chief Financial Officer of the group since 2014, having joined the group in 2009. Prior to joining JB Hi-Fi, Nick was a manager at Deloitte, where he provided audit and assurance services to a broad range of companies, including a number of retail, Australian retail businesses. I will now hand over to Nick to say a few words.
Thank you, Stephen, and good morning, everyone. As Stephen said, I'm Nick Wells, the Group CFO. I've been with JB Hi-Fi for 12 years and been CFO for the past seven years. In my role, I oversee the traditional finance and risk functions, as well as our sustainability initiatives, safety, procurement, property leasing, and store development. In my time at JB, I've seen significant growth in the business and been heavily involved in a number of key strategic initiatives, including the acquisition of The Good Guys in 2016. I remain excited about the opportunities ahead for the business and look forward to continuing to serve the company as both Group CFO and as an Executive Director. Thank you.
Thanks, Nick, and also welcome to the board. We will shortly answer any questions submitted by shareholders or proxies. Before we do this, we will disclose the proxy votes received in advance of the meeting on each item of business. Firstly, the proxy votes for item 2 A, my re-election. The proxy votes for item 2 B, the re-election of Richard Uechtritz. The proxy votes for item 2 C, the election of Geoff Roberts. The proxy votes for item 2 D, the election of Nick Wells. Proxy votes for item 3, the Remuneration Report. Proxy votes for item 4 A, approval of the allocation of restricted shares to the Group CEO and Executive Director, Terry Smart. Finally, the proxy votes for item 4 B, approval of the allocation of restricted shares to the Group CFO and executive director, Nick Wells. We will now take questions from shareholders.
Questions submitted in writing will be read out by our company secretary. For audio questions, our company secretary will say your name and then direct you to ask the question. Questions will be answered by the relevant director, executive, or Travis Simkin from our auditors. After the questions, I will close voting. Doug, over to you.
Thank you, Stephen. The first question is from Christopher Harkin and Steven Hart. Now that JB owns The Good Guys, will you look at making the Concierge extended warranty and loyalty program available at JB Hi-Fi? Good Guys Concierge is a much better product than the JB Hi-Fi extended warranty. Thanks, Terry.
Thanks for the question. The short answer is no. At this stage, we're maintaining the two different programs. It's a very different construct that we run at The Good Guys versus the JB warranty program. What we are doing, though, is we continue to look to see how we can now provide better benefit through the JB program. At this stage, no, we won't be bringing it across.
Thanks, Terry. We have Mike Robey from the Australian Shareholders' Association on the line with a couple of questions. Hi, Mike. We'll pass to you, and if you can ask both your questions, please. Passing to you now. Please go ahead and ask your question.
Thank you very much. My name is Mike Robey, and I'm a volunteer monitor for the Australian Shareholders' Association. Today, I hold about 8 million in proxy for our retail shareholders. First of all, may I congratulate the JB board and all the staff for a great year for shareholders. We view JB as really the retailer's retailer. It's frugal, adaptive, and profitable. My question today, however, is about culture and concerns sexual harassment and discrimination at JB's, which were first aired in a national media article in September 2020 and subsequently quantified in an independent union-backed staff survey conducted in February this year. The overall takeouts were that JB's was a boys club and that 83% of female staff had experienced some form of harassment, either by customers, in most cases, or in some instances, male colleagues.
It's a year on from that report, and given that I have a good friend whose daughter has just accepted the position at a JB store, Mr. Chairman, what do you wish to say to her about her prospects of being treated with decency and about her opportunities to progress in your, in our company? And can you also give us an update on the gender diversity in the middle and senior management in JB's, which appears to be low and unbudging?
Thanks, Mike, for your question. Also, it was good to catch up on Zoom a few weeks ago to hear the views of the ASA. That's always a good thing for our business, and we appreciate your time doing that. Look, that article was some time ago, but we treat it extremely seriously. Look, our team members, they're our most important asset, and we are absolutely committed to providing a workplace that's free from discrimination and harassment. From the board's perspective, we receive regular reporting on incidents relating to harassment, bullying, and discrimination. Over the last year, and frankly, before that, we've implemented several initiatives that are really important, we think, to dealing with this vital issue.
You know, we emphasize that we have zero tolerance for harassment, whether by coworkers or customers. We've actually revised our training for all staff on harassment, discrimination, and bullying. We've instituted training to deal with sexual harassment by customers. We've actually put in additional training for managers on dealing with harassment by customers as well. We recognize that as an issue and are treating it very, very seriously. We remind staff of the avenues open to them and, look, we constantly challenge ourselves to ensure that we're dealing with this as effectively as possible. Look, we would welcome your friend's daughter into the organization, and I believe she'll have great opportunities to progress within the spirit of the way in which both JB and The Good Guys operate.
In terms of women in our organization and diversity that you raise, look, in consumer electronics, it has been more male-dominated in the past, although 41% of our staff are actually women in the organization. We have put in place significant measures with regard to diversity and inclusion to improve that over time. Recently at the senior levels, we've appointed a lady, Tania Garonzi, as the head for The Good Guys, so we're seeing that change at senior levels. It is something that will take time to work through the organization as we identify the talent and those opportunities open up. Mike, thanks for your question and I look forward to catching up with you, hopefully, at this time next year as well.
Thanks, Stephen. I think Mike has another question. Mike, if you have another question, we'll pass back to you to ask your second question, please. Thank you.
Am I live? Yep.
Yes, you are now, Mike.
Oh, okay. Sorry, I didn't get the beep this time. Thank you. Look, I have actually two relatively related questions. One is on the remuneration report, more of a comment. You're aware, Mr. Chairman, of our long-held concerns of the nature of the long-term variable pay component of the key management personnel. We don't in the least think that you guys overpay. We just think the structure of the variable remuneration could do with some improvement. In effect, what it says is you test after a year and then vest three years later with no final test. We see this as a little like doing a medical degree, passing year one, then being awarded your degree as long as you keep attending the classes.
That said, we do understand that the disruption to the business that COVID has presented and the uncertainty it brings to your forecasts is a formidable challenge. Obviously, we will support the remuneration report and the award of restricted shares, but urge you to develop a true longer-term variable reward, as is the case with most ASX companies, which tightly links shareholder value and business performance. My other question, if I may, concerns the election of Mr. Wells. We've just voted in Mr. Roberts to the board as an experienced independent director and a strong CFO background in an ASX 100 company.
We see actually no reason to create an additional board position with another of the executives because that presents a rather awkward position where the CFO who reports to the CEO during his normal life actually is supposed to be a challenger on the board. We believe that you and Mr. Roberts, you've got suitable financial muscle to assist in doing all of the requirements of filling in the skills matrix on CFOs. Therefore, unfortunately, we'll be voting against what is clearly a very capable Mr. Wells, a very talented CFO, because we actually don't see it as a necessary appointment. If you had any comments on the latter, that would be welcome.
Okay. Thanks, Mike. Look, I'll deal with each of those in turn. Look, the variable remuneration plan, as you point out, has one-year targets. Now, look, in our industry, with the changing nature, not just with COVID, but with international entrants and the retail cycle, you know, our focus as a business is to really galvanize our team to get the year's results. They are very focused as we cross the line into the new financial year with a clear line of sight as to what's required for the business. We feel that setting that target, as I say, galvanizes the team to produce the best possible result for shareholders over the year.
We also think the plan is supportive of shareholders because 75% of the rewards from those plans don't vest until years two, three, and four, and they are actually in restricted shares. In fact, each of our managers has an eye on the share price and a desire to ensure that the business is successful as we go forward. Look, in terms of the doctor analogy, I just might add that not only do you have to pass year one with the VRP, you've actually got to pass year two because the VRP resets each year.
Look, if we'd had an LTI program, and I do understand the arguments for having longer-term targets, but if we'd set an LTI program two years ago, given that our results are up 67%, I think, you know, you could look at us and say, "Well, that's a free ride for our management over the next year." That's not what we want and not what our managers want as well. They wanna be tested. They wanna have targets that are achievable and stretch targets. We think that this program not only does that but also links to shareholder value over time with those restricted shares. We really do think it is fit for purpose, but I accept your comments. In terms of Nick, look, for a start, a couple of comments on Geoff.
I mean, Geoff is certainly a very experienced finance executive, but in this changing world of retail, you will appreciate that our online business did sales of more than AUD 1 billion last year. We're a big player in that space. To have someone of Geoff's caliber, not just from a finance perspective, but someone who spent six or seven years with one of Australia's premium digital online businesses being SEEK, he brings a perspective and expertise that is more than just being a good finance guy. Look, he comes to the board and brings a whole range of experiences that we find useful as we go forward. In terms of Nick, look, Nick is really important to our future. He plays a key role within the business. It's broader than just finance.
As he said, I think, in his introduction, he deals with property matters, commercial matters, and a whole range of things. We feel that it's important for the board to recognize that and also to value his contribution at board level. In terms of the practicalities, look, Nick is always at the board meeting a CFO anyway. If there's a need for us to talk to Terry alone, we do that, regardless. We welcome Nick to the board. We think he's really important to the company's future. You know, we're sorry you disagree, but we feel quite strongly about this, and we're delighted to have him officially on board. Thanks, Mike. Doug, back to you for other questions.
Thanks, Stephen. We have two questions for Mr. Kevin Daly. The first question as follows: The diplomatic relations between Australia and China has deteriorated badly. Does this animus extend to JB Hi-Fi's relationship with Chinese companies? Terry?
Look, we're not, you know, we're not experiencing any concern with our relationships there. To be fair, we do deal with local subsidiaries generally of these Chinese companies. However, with their senior execs from the Chinese companies and, you know, there's still great support. You know, there is no concerns on our part that it's having any impact on any of our dealings. No, it's all good.
Thank you, Terry. Second question for Mr. Terry. Is JB Hi-Fi's supply chain holding up in the face of problems in the northern hemisphere in this area?
Look, it's a challenging one, supply chain. You know, we remain very confident about, you know, going into this busy period as far as stock is concerned. Very well planned with our stock. I stay very close to our suppliers on stock. You know, with our planning processes, we generally can switch suppliers, as in different brands to try and fill those gaps. That's already been done. You know, the challenge, realistically, is it's very fluid, and it can change from week to week, both in a positive sense and a negative sense. We feel like we've got it under control. We feel like we're still very positive going into Christmas. No doubt, you know, it's just one of those challenges we have to deal with, you know, with being in retail.
Thanks, Terry. We have a question from Mr. Maxwell Hall. It's great to see your presence at Victoria Gardens Shopping Centre, but the space that you have there is very limited and crowded, and you can't display all of your products comfortably. Why didn't you occupy the old Centrelink office in Victoria Street, only 100 yards from the shopping center? It has ample space for all your products, has two levels, and its own car park, being very convenient for shoppers. Thanks, Terry.
You know, we're better off being inside the center where traffic is. That's first and foremost. The site you're referring to, while I haven't actually seen it, you know, it doesn't. We've learned a lot over the years with opening stores, and being over two levels is problematic. We find that in stores, we're better off being in the center. We're better off being where the traffic is. It was a case of there wasn't space available in the center. It's very much more of a convenience-type store and, you know, we're gonna continue to look at these opportunities where we may b able to open these smaller stores. Still be very profitable but just provide that more of a convenience to consumers around those highly purchased type products.
Thanks, Terry. That's all the questions we have. Thank you, Stephen. Back to you.
Okay. We've answered all the questions. Thanks, Doug, and thank you, ladies and gentlemen. We'll take a few moments now to allow you to finish voting. Please complete your voting now. Thank you. Voting has now closed. Please bear with us for a few minutes while we finalize the votes so we can display them to the meeting. Ladies and gentlemen, we now have the provisional results of voting as shown on your screens. You will note that all items have been passed with more than 50% of votes cast in favor. On behalf of the board, I would like to thank you for participating in today's AGM. I hope you've enjoyed the virtual format. I also hope that you and your families stay safe and well in the weeks and months ahead. I now declare the meeting closed. Thank you.