Harvey Norman Holdings Ltd · ASX:HVN
Harvey Norman — H1 2025 Earnings Presentation
19 slides from Harvey Norman's earnings presentation, Feb 28, 2025
Slide 1: Half-Year Results Presentation
HALF-YEAR RESULTS PRESENTATION 31 DECEMBER 2020 ®
Slide 2: Contents
2 Contents December 2024 (1H25) Results 3 Australian Franchisee Aggregated Sales Revenue 12 1H25 Results for Announcement to the Market 4-5 Franchising Operations Segment 13 An Integrated Retail, Franchise, Property & Digital Overseas Company-Operated Retail Segment 14-15 6 System Property Segment 1
Slide 3: December 2024 (1H25) Results
3 DECEMBER 2024 (1H25) RESULTS Net Assets Reported PBT PBT [excluding AASB 16 net impact and net property revaluations] $4.72bn $400.29m $310.46m [$m] [$m] [$m] $206.34m from 1H24 5-YEAR CAGR 7.5% $116.71m from 1H24 $6.64m from 1H24 Net Debt to Equity % Cash Conversion % Total System Sales Rev
Slide 4: 1H25 Results for Announcement to the Market
4 1H25 RESULTS FOR ANNOUNCEMENT TO THE MARKET Total System Sales Revenue EBITDA EBIT $581.42m $461.26m $4.83 bn Aggregated headline franchisee sales revenue* $3.34bn $108.40m or 22.9% from $473.02m in 1H24 $123.31m or 36.5% from $337.95m in 1H24 Company-operated sales revenue $1.49bn 4-YEAR CAGR
Slide 5: 1H25 Results for Announcement to the Market (continued)
1H25 RESULTS FOR ANNOUNCEMENT TO THE MARKET (continued) 5 • $8 billion milestone surpassed for the first-time, with total assets reaching $8.25bn as at 31 December 2024. 66% of our asset base is comprised of quality, tangible assets, including an appreciating freehold property portfolio valued at $4
Slide 6: An Integrated Retail, Franchise, Property and Digital System
AN INTEGRATED RETAIL, FRANCHISE, PROPERTY AND DIGITAL SYSTEM 6 We operate an integrated retail, franchise, property and digital system across 8 countries. Australia New Zealand Singapore Slovenia Ireland Malaysia Croatia United Kingdom 198 47 11 5 16 37 3 3 franchised complexes stores stores stores
Slide 7: Segment Analysis
SEGMENT ANALYSIS 7 The consolidated entity operates an integrated retail, franchise, property and digital system, comprising three main strategic pillars: 1. Franchise — 2. Retail — 3. Property complemented by sustained investment in technology, digital transformation and IT infrastructure assets. F
Slide 8: Review of the Balance Sheet
REVIEW OF THE BALANCE SHEET 8 Increase / (Decrease) Increase / (Decrease) 31 DECEMBER 2024 31 DECEMBER 2023 $ % Total assets $8.25bn $7.86bn $395.48m 5.0% Total liabilities $3.54bn $3.35bn $189.14m 5.6% Equity $4.72bn $4.51bn $206.34m 4.6% • $234.57m increase in the value of the freehold investment
Slide 9: Review of the Balance Sheet (continued)
REVIEW OF THE BALANCE SHEET (continued) 9 Composition of Total Assets of $8.25bn $218.64m $931.89m $656.03m Other Receivables Inventory $408.02m Plant & equipment $557.14m $774.25m Property, plant & $314.23m $4,393.42m Investment properties: equipment: Cash Tangible property assets Leasehold right-o
Slide 10: Review of the Statement of Cash Flows
REVIEW OF THE STATEMENT OF CASH FLOWS 10 Increase / (Decrease) Increase / (Decrease) 31 DECEMBER 2024 31 DECEMBER 2023 $ % Net cash flows from operating activities $448.10m $497.31m ($49.21m) (-9.9%) Net cash flows used in investing activities ($125.14m) ($137.88m) $12.74m 9.2% Net cash flows used i
Slide 11: Aggregated Sales Revenue
AGGREGATED SALES REVENUE 11 Aggregated sales increase / (decrease) in constant local currencies: Total franchisee sales* Total Sales Local Currency 1H25 vs 1H24 Half-year ended 31 December 2024 Australian Franchisees* New Zealand $ AUD $ NZD 5.5% (-1.9%) $3.34bn 5.5% increase of $174.03m vs 1H24 S
Slide 12: Australian Franchisee Aggregated Sales Revenue
AUSTRALIAN FRANCHISEE AGGREGATED SALES REVENUE* 12 • Australian franchisee sales for 1H25 increased by 5.5% to $3.34 billion from $3.16 billion in 1H24 • Comparable franchisee sales revenue for 1H25 was $3.30 billion, an increase of 5.3% from 1H24 • As reported on 27/11/24, franchisee sales for the
Slide 13: Franchising Operations Segment
FRANCHISING OPERATIONS SEGMENT 13 Increase / (Decrease) Increase / (Decrease) 1H25 1H24 $ % Franchising operations segment revenue $540.94m $511.81m $29.13m 5.7% Aggregated franchisee headline sales revenue* $3.34bn $3.16bn $174.03m 5.5% Franchising operations segment PBT $180.28m $143.08m $37.21m 2
Slide 14: Overseas Company-Operated Retail Segment
OVERSEAS COMPANY-OPERATED RETAIL SEGMENT 14 Increase / (Decrease) Increase / (Decrease) Overseas retail segment PBT result 1H25 1H24 $ % Retail – New Zealand $35.57m $39.53m ($3.96m) (-10.0%) Retail – Singapore & Malaysia $21.82m $19.01m $2.81m 14.8% Retail – Ireland $17.92m $15.80m $2.12m 13.4% Ret
Slide 15: Overseas Company-Operated Retail Segment (continued)
OVERSEAS COMPANY-OPERATED RETAIL SEGMENT (continued) 15 New Zealand Singapore & Malaysia • Aggregated sales revenue for Asia combined was $363.63m, an increase of $7.39m (+2.1%) • Sales for 1H25 declined by $18.34m (–3.6%) to $487.87m for 1H25, from $506.21m in 1H24 from $356.24m in 1H24 as macroeco
Slide 16: Property Segment
PROPERTY SEGMENT 16 Increase / (Decrease) Increase / (Decrease) 31 December 2024 31 December 2023 $ % Property segment revenue $260.00m $160.62m $99.38m 61.9% Net property revaluation increment / (decrement) $84.71m ($5.12m) $89.82m 1755% Property segment EBITDA $191.29m $92.91m $98.38m 106% Propert
Slide 17: Freehold Property Portfolio
FREEHOLD PROPERTY PORTFOLIO 17 Net Increase / # of Owned # of Owned Net Increase / (Decrease) December Retail Other (Decrease) Composition of freehold property segment assets in Fair Value 2024 Property Property in Fair Value [Income Assets Assets [Equity] Statement] (1) Investment Properties (Freeh
Slide 18: Leasehold Property Portfolio
LEASEHOLD PROPERTY PORTFOLIO 18 Composition of the Leasehold Property Portfolio: Right-of-Use Lease # of Leased # of Leased Composition of leasehold property portfolio Assets Liabilities Retail Other Dec 2024 Dec 2024 Property Assets Property Assets (1) Leases of Properties Sub-Leased to External Pa
Slide 19: Outlook
OUTLOOK 19 • In Malaysia, we previously reported our intention to open up to 10 stores during FY25. During 1H25, 3 new stores were opened and we launched our expanded store in Mid Valley Megamall as our flagship store in Malaysia. We will open 1 more store during 2H25, bringing the number of stores
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