Harvey Norman Holdings Ltd · ASX:HVN
Harvey Norman — FY2022 Earnings Presentation
21 slides from Harvey Norman's earnings presentation, Aug 31, 2022
Slide 1: Half-Year Results Presentation
HALF-YEAR RESULTS PRESENTATION 31 DECEMBER 2020 ® HOLDINGS LIMITED | ACN 003 237 545
Slide 2: Table of Contents
YEAR-END RESULTS PRESENTATION 30 JUNE 2022 2 2022 Results 3 Key Financial Highlights 4-6 Table ofRetail,Contents An Integrated Franchise, Property & Digital System 7-8 Key Statistics: Balance Sheet 9 Review of the Balance Sheet 10 Review of the Statement Cash Flows 11 Aggregated Sales Revenue 12 Fra
Slide 3: 2022 Results
3 HOLDINGS LIMITED | ACN 003 237 545 2022 RESULTS EBITDA $1.437 billion Decrease of $20.58 million from FY21 Reported PBT $1.140 billion v Decrease of $42.09 million from FY21 Income Tax Expense $323 million Decrease of $13.12 million from FY21 SYSTEM SALES REVENUE Total System Sales Revenue $9.558
Slide 4: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS 4 EBITDA EBITDA Excluding AASB 16 net $1.437bn $1.044bn impact and net property revaluations 544 Excluding AASB 16 net impact and net property revaluations. DOWN BY $20.58m or –1.4% FROM $1.457bn IN FY21 UP BY $491.88m or 52.1% FROM $944.67m IN FY20 1042bn $DOWN BY $102.83m
Slide 5: Key Financial Highlights (continued)
KEY FINANCIAL HIGHLIGHTS (continued) 5 SOLID FINANCIAL RESULTS • Reported earnings before interest, tax, depreciation & amortisation (EBITDA) of • Net profit after tax and non-controlling interests (NPAT&NCI) of $811.53 million, $1.437 billion, down by $20.58 million or -1.4% from $1.457 billion in
Slide 6: Key Financial Highlights (continued)
KEY FINANCIAL HIGHLIGHTS (continued) 6 PROPERTY • 30 June 2022: 195 franchised complexes in Australia and 109 company-operated stores overseas. • Strong freehold property portfolio valued at $3.74 billion as at 30 June 2022, up by $367.36 million or +10.9%, consisting of 95 freehold investment prope
Slide 7: An Integrated Retail, Franchise, Property and Digital System
AN INTEGRATED RETAIL, FRANCHISE, PROPERTY AND DIGITAL SYSTEM 7 HARVEY NORMAN® AUSTRALIAN FRANCHISED RETAIL AND OVERSEAS COMPANY-OPERATED RETAIL OPERATIONS ARE SUPPORTED BY AN INTEGRATED RETAIL, FRANCHISE, PROPERTY & DIGITAL SYSTEM HARVEY NORMAN® RECOGNISED HOME, LIFESTYLE AND TECHNOLOGY RETAIL BRAND
Slide 8: An Integrated Retail, Franchise, Property and Digital System
AN INTEGRATED RETAIL, FRANCHISE, PROPERTY AND DIGITAL SYSTEM 8 The consolidated entity operates an integrated retail, franchise, property and digital system, comprising three main strategic pillars: 1. Retail- 2. Franchise- 3. Property complemented by a robust and sustained investment in technology,
Slide 9: Key Statistics: Balance Sheet
KEY STATISTICS: BALANCE SHEET 9 vs
Slide 10: Review of the Balance Sheet
REVIEW OF THE BALANCE SHEET 10 30 JUNE 2022 30 JUNE 2021 INCREASE / (DECREASE) TOTAL ASSETS $7,246.40m $6,672.93m $573.47m 8.6% TOTAL LIABILITIES $2,952.28m $2,779.92m $172.36m 6.2% EQUITY $4,294.12m $3,893.02m $401.11m 10.3% • $324.70m increase in the value of the freehold investment property portf
Slide 11: Review of the Statement of Cash Flows
REVIEW OF THE STATEMENT OF CASH FLOWS 11 30 JUNE 2022 30 JUNE 2021 INCREASE / (DECREASE) NET CASH FLOWS FROM OPERATING ACTIVITIES $597.30m $543.87m $53.43m 9.8% NET CASH FLOWS USED IN INVESTING ACTIVITIES ($178.80m) ($254.12m) $75.32m 29.6% NET CASH FLOWS USED IN FINANCING ACTIVITIES ($432.87m) ($33
Slide 12: Aggregated Sales Revenue
AGGREGATED SALES REVENUE 12 AGGREGATED SALES INCREASE / (DECREASE) IN CONSTANT LOCAL CURRENCIES: Aggregated Franchisee Sales of TOTAL SALES $6.75bn for FY22 Local 1H22 vs. 2H22 vs. FY2022 vs TOTAL SALES Currency 1H21 2H21 FY2021 vs $6.95bn for FY21 down 2.9% ($AUD) AUSTRALIAN FRANCHISEES* $ AUD (-8.
Slide 13: Australian Franchisee Aggregated Sales Revenue
AUSTRALIAN FRANCHISEE AGGREGATED SALES REVENUE* 13 * Sales made by franchisees in Australia do not form part of the financial results of the consolidated entity. Retail sales in Harvey Norman®, Domayne® and Joyce Mayne® in Australia are made by independently owned franchisee businesses that are not
Slide 14: Franchising Operations Segment
FRANCHISING OPERATIONS SEGMENT 14 30 JUNE 2022 30 JUNE 2021 INCREASE / (DECREASE) FRANCHISING OPERATIONS SEGMENT REVENUE $1.193bn $1.238bn (-$44.54m) (-3.6%) AGGREGATED FRANCHISEE HEADLINE SALES REVENUE* $6.75bn $6.95bn (-$202.13m) (-2.9%) FRANCHISING OPERATIONS SEGMENT RESULT $553.02m $628.19m (-$7
Slide 15: Overseas Company-Operated Retail Segment
OVERSEAS COMPANY-OPERATED RETAIL SEGMENT 15 30 JUNE 30 JUNE OVERSEAS SEGMENT PROFIT RESULT 2022 2021 INCREASE / (DECREASE) RETAIL – NEW ZEALAND $129.08m $141.61m (-$12.53m) (-8.9%) RETAIL – SINGAPORE & MALAYSIA $45.36m $35.92m $9.45m 26.3% RETAIL – IRELAND & NORTHERN IRELAND $46.16m $51.89m (-$5.73m
Slide 16: Overseas Company-Operated Retail Segment (continued)
OVERSEAS COMPANY-OPERATED RETAIL SEGMENT (continued) 16 New Zealand Singapore & Malaysia • Sales for FY22 have surpassed the billion dollar milestone for a second year in a row, • Aggregated sales revenue for Asia combined was $621.23m, an increase of at $1.12bn for FY22, down by $29.06m or –2.5% fr
Slide 17: Property Segment
PROPERTY SEGMENT 17 INCREASE / TOTAL SALES 30 JUNE 2022 30 JUNE 2021 % (DECREASE) PROPERTY SEGMENT REVENUE $494.39m $409.20m $85.19m +20.8% NET PROPERTY REVALUATION INCREMENT $213.68m $140.37m $73.31m +52.2% PROPERTY SEGMENT EBITDIA $383.61m $307.44m $76.17m +24.8% PROPERTY SEGMENT RESULT BEFORE TAX
Slide 18: Freehold Property Portfolio
FREEHOLD PROPERTY PORTFOLIO 18 Net Increase Net Increase / # of Owned # of Owned (Decrease) in Fair Value COMPOSITION OF FREEHOLD June 2022 Retail Other in Fair Value (Income PROPERTY SEGMENT ASSETS Property Property (Equity) Statement) Assets Assets (1) Investment Properties (Freehold) and Assets H
Slide 19: Leasehold Property Portfolio
LEASEHOLD PROPERTY PORTFOLIO 19 Right -of-Use Lease # of Leased # of Leased COMPOSITION OF LEASEHOLD Asset Liabilities Retail Other PROPERTY SEGMENT ASSETS June 2022 June 2022 Property Property Assets Assets (1) Leases of Properties Sub-Leased to External Parties $675.60m $719.02m 100 170 - Australi
Slide 20: Outlook
OUTLOOK 20 During the second half of the financial year, the premium refit program, which was hampered by the government mandated closures during 1H22, was recommenced. Given COVID supply chain issues and labour shortages, we have reassessed expected completion dates and we now expect to complete up
Slide 21: Questions
Q U E ST I O N S (LIMITED TO 30 MINUTES) 21
Harvey Norman Holdings — FY2022 Earnings Presentation on 6ix