JB Hi-Fi Limited

CRROs (p. 58). The Group identified 5 CRROs relevant to demonstrate the impacts of climate change on its business model and future prospects, each with a summary table (pp. 60–66): (1) severe weather impacts the Group's operations (acute physical); (2) severe weather impacts the Group's supply chain (acute physical); (3) increased carbon regulation (transition, regulatory); (4) increased demand for goods and services resulting from severe weather (market opportunity); (5) increased demand for energy efficient products (market opportunity). The Group does not expect any CRRO to have a material impact on its financial position, financial performance or cash flow over the short, medium or long term, but has determined them to be qualitatively material. They are reviewed at least annually.

Time horizons (pp. 52, 60–66). Short term is 0–2 years (typical timeframe for financial budgeting and forecasting), medium term 2–10 years (strategic decisions on store network and supply chain planning) and long term 10–20 years (lifecycle of a typical store or warehouse location), consistent with the Group's planning horizons. CRROs 1, 2, 4 and 5 exist under each horizon and CRRO 3 is expected over the medium to long term.

Business model (p. 58). The Group has three brands (JB Hi-Fi, The Good Guys and e&s) selling consumer electronics, telecommunications, home appliances and software. Its competitive advantages are scale and diversification across a large supplier base and geographically diverse store network, a low-cost operating model, multichannel capability, and people and culture. Structure and value chain: pp. 17–18.

Operations (pp. 60–61). Severe weather may disrupt or damage stores, warehouses and last-mile delivery. In FY2026 less than 0.02% of total trading hours were disrupted. The Group does not expect impacts to be pervasive, given diversification across all states of Australia and New Zealand. 38 locations (5.4% of total assets) are predisposed to higher risk, concentrated on the eastern seaboard (flood-prone coastal Queensland and New South Wales) and the cyclone-exposed far north.

Value chain (pp. 61–64). Goods for resale are sourced from over 35 countries, with trade supply approximately 42% China, Hong Kong and Taiwan, 25% Southeast Asia and 17% Europe. Typhoons in China, Hong Kong, Taiwan and Southeast Asia could disrupt manufacturing, logistics and shipping. The Group buys inventory in-country, so suppliers bear the risks and costs of bringing it into Australia and New Zealand (p. 62). Carbon regulation may raise suppliers' operating costs and so the cost of goods (p. 63). Severe weather can raise demand for home appliances and technology products (p. 64).

Decarbonization plan (pp. 70–72). The Group has established a plan to decarbonize its operations and is working toward net-zero direct scope 1 and scope 2 (market-based) emissions by 2030 through renewable energy procurement, on-site solar power generation, store and warehouse energy efficiency, reducing energy consumption where possible and fleet rationalization. Stated assumption: continued optionality to procure renewable energy through contracts with its energy providers (p. 72). In FY2026 68% of energy needs came from renewables (82% in June 2026) and solar sites rose to 42 (FY2025: 36) (p. 72).

Mitigation measures (pp. 61–63). Physical risk (CRRO 1): geographic diversification, omni-channel sales and fulfillment, flood risk assessments in store network planning, a short Weighted Average Lease Expiry (WALE) of less than 3 years, water deluge kits across all HDC sites, insurance and business continuity plans. Transition risk (CRRO 3): the Ethical Sourcing Policy requires suppliers to measure, monitor and reduce emissions; 321 suppliers were asked to complete the Ethical Sourcing Questionnaire and 254 responded.

Resourcing (p. 69). Resources are allocated through annual budgeting processes overseen by the Group CFO. Other funding and resource allocation is not separately identifiable or already in budgeted operating expenditures; as at 30 June 2026 no financially material capital or operational expenditure is planned to address CRROs.

Overall (p. 58). The Group does not expect any CRRO to have a material impact on its financial position, financial performance or cash flow over the short, medium or long term. Each CRRO table names the financial statement lines affected, such as sales revenue, other expenses, cost of sales, receipts from customers and payments to suppliers (pp. 60–66).

In FY2026 less than 0.02% of total trading hours were disrupted by severe weather; the impacts were not material and, where applicable, losses were covered by insurance (p. 61). No financially material capital or operational expenditure is planned to address CRROs (p. 69).

Scenarios (pp. 58–59). The approach was informed by the National Climate Scenario Guidance 2026 issued by the Department of Climate Change, Energy, Environment and Water (DCCEEW). Physical risk uses Shared Socioeconomic Pathways (SSPs) published by the Intergovernmental Panel on Climate Change (IPCC) and transition risk uses Network for Greening the Financial System (NGFS) scenarios.

Assessment as at 30 June 2026 (pp. 60–68). Anticipated impacts use the middle-of-the-road scenarios, judged most aligned to current market dynamics, regulatory settings and the latest assessment from the United Nations Environment Programme. Resilience is assessed under the high warming scenario (SSP3-7.0) for CRROs 1, 2 and 4 and the low warming NGFS 2050 Net zero scenario for CRROs 3 and 5. Each CRRO has significant areas of uncertainty, implications for the business model and how the Group would adapt. For CRROs 1 to 3 the Group believes appropriate mitigations are in place to support the resilience of its business model.