Harvey Norman Holdings Ltd · ASX:HVN

Harvey Norman — FY2013 Earnings Presentation

23 slides from Harvey Norman's earnings presentation, Aug 30, 2013

  1. Slide 1: Presentation of Results for the Year Ended 30 June 2013

    For personal use only Presentation of Results for the Year Ended 30 June 2013

  2. Slide 2: For personal use only

    For personal use only 1. Omni-Channel Strategic Plan 2. Global Sales Revenue 3. Franchise Sales Revenue 4. Rise in Franchise Sales Revenue for 3Q13 & 4Q13 Results in Better Franchising Operations Performance in 2H13 5. Strategic Advantages of the Harvey Norman Integrated Retail, Franchise, Property

  3. Slide 3: Omni-Channel Strategic Plan

    Omni-Channel Strategic Plan Our brands provide “Solutions for the home” by offering the largest range of trusted brands, For personal use only products and services under one roof in 283 stores in eight countries 3

  4. Slide 4: Omni-Channel Strategic Plan (continued)

    Omni-Channel Strategic Plan (continued) • Over the past year we continued to execute the Harvey Norman omni channel strategy. The For personal use only strategic initiatives require that Harvey Norman franchisees invest in their people and deliver the best consumer experience by focussing on the cor

  5. Slide 5: Global Sales Revenue

    Global Sales Revenue Global Sales $AUD For personal use only  Sales from the franchised “Harvey Norman” complexes, commercial divisions & other sales outlets in Australia, New Zealand, Slovenia, Croatia, Ireland & Northern Ireland (excluding Singapore & Malaysia) (“Global Sales”) totalled $5.57 bil

  6. Slide 6: Franchise Sales Revenue

    Franchise Sales Revenue  Franchise sales revenue was $4.72 billion for FY2013 vs $4.83 billion for FY2012, a decrease of 2.3%. For personal use only  Retail sales in Harvey Norman, Domayne and Joyce Mayne complexes in Australia are made by independently owned franchised business entities that are

  7. Slide 7: Rise in Franchise Sales Revenue in 3Q13 & 4Q13 Results in Better Franchising Performance

    Rise in Franchise Sales Revenue in 3Q13 & 4Q13 results in Better Franchising Operations Segment Performance in 2nd Half of FY2013 For personal use only HY Dec 12 HY Dec 11 HY Jun 13 HY Jun 12 FY Jun 13 FY Jun 12 Franchising Operations Segment Result $71.01m $95.51m $42.42m $31.47m $113.43m $126.98m

  8. Slide 8: Strategic Advantages of the Harvey Norman Integrated Retail, Franchise, Property & Digital Operations

    Strategic Advantages of the Harvey Norman Integrated Retail, Franchise, Property & Digital Operations For personal use only The omni channel strategy, incorporating the Harvey Norman integrated retail, franchise, property & digital platform, provides strategic advantages over competitors including:

  9. Slide 9: Net Assets (5 Years)

    Net Assets (5 Years) For personal use only Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Net Assets* $2.01bn $2.10bn $2.19bn $2.24bn $2.33bn Rate of increase from PY 5.6% 4.8% 4.3% 1.9% 4.2% Real Property Assets $1.82bn $1.88bn $2.04bn $2.12bn $2.21bn Rate of increase from PY 8.1% 3.1% 8.9% 3.6% 4.1% * exclusi

  10. Slide 10: Key Financial Highlights

    Key Financial Highlights FY Jun 13 FY Jun 12 Mvmt on PY For personal use only EBIT (excluding property revaluations ) 2 $292.84m $301.86m down 3.0% EBIT Margin %1 12.3% 12.2% +10 bps PBT (excluding property revaluations ) 2 $247.06m $252.40m down 2.1% PBT (including property revaluations) $187.95m $

  11. Slide 11: Key Financial Highlights by Half Years

    Key Financial Highlights by Half Years HY Dec 12 HY Dec 11 HY Jun 13 HY Jun 12 FY Jun 13 FY Jun 12 For personal use only EBIT $123.03m $188.12m $110.69m $88.74m $233.72m $276.86m PBT $99.55m $163.47m $88.40m $63.94m $187.95m $227.41m Property Revaluation Increments / (Decrements) ($44.97m) $11.07m (

  12. Slide 12: Review of the Income Statement

    Review of the Income Statement Revenue Items FY Jun 13 FY Jun 12 Mvmt on PY For personal use only Sales Revenue $1,323.48m $1,407.34m down 6.0% Gross Profit $379.25m $381.98m down 0.7% Revenues & Other Income $1,035.55m $1,061.23m down 2.4% Sales Revenue  nil sales recorded for the former CP & RH s

  13. Slide 13: Review of the Income Statement (continued)

    Review of the Income Statement (continued) Expenses & Profit FY June 13 FY June 12 Mvmt on PY For personal use only Total Expenses ($1,255.18m) ($1,227.04m) up 2.3% Share of JV investments $28.32m $11.24m up 152.0% Profit Before Tax $187.95m $227.41m down 17.4% Income Tax Expense ($43.47m) ($51.09m)

  14. Slide 14: Review of the Balance Sheet (5 Years)

    Review of the Balance Sheet (5 Years) June 09 June 10 June 11 June 12 June 13 For personal use only Total Assets $3.66bn $3.70bn $4.00bn $3.95bn $4.07bn Return on Total Assets % 5.86% 6.25% 6.30% 4.36% 3.50% Total Liabilities $1.60bn $1.55bn $1.78bn $1.68bn $1.70bn Net Assets $2.06bn $2.16bn $2.23bn

  15. Slide 15: Review of the Balance Sheet: Net Debt to Equity Ratio (%)

    Review of the Balance Sheet: Net Debt to Equity Ratio (%) June 09 June 10 June 11 June 12 June 13 For personal use only TOTAL DEBT $586.68m $501.17m $651.76m $779.35m $820.28m Less: CASH RESERVES ($157.91m) ($157.24m) ($162.78m) ($172.46m) ($161.66m) NET DEBT $428.77m $343.93m $488.98m $606.89m $658

  16. Slide 16: Review of the Statement of Cash Flows

    Review of the Statement of Cash Flows FY June 13 FY June 12 Mvmt on PY For personal use only Operating Cash Flows $239.22m $200.95m up 19.0% Operating cash 1) Lower payments to supplier & employees by $158.32m due to the closure & restructure/conversion of CP flows ↑ by & RH stores in the previous y

  17. Slide 17: Review of the Statement of Cash Flows (continued)

    Review of the Statement of Cash Flows (continued) FY June 13 FY June 12 Mvmt on PY For personal use only Investing Cash Flows ($208.18m) ($171.07m) down 21.7% Financing Cash Flows ($46.56m) ($8.51m) down 447.2% Net (Decrease)/Increase in Cash Flows ($15.53m) $21.36m down 172.7% Cash & Cash Equivalen

  18. Slide 18: Segment Analysis: Franchising Operations Segment

    Segment Analysis: Franchising Operations Segment Franchising Operations FY June 13 FY June 12 Mvmt on PY For personal use only Segment Revenue $826.05m $858.01m down 3.7% Segment EBITDA $178.87m $202.81m down 11.8% Segment Result Before Tax $113.43m $126.98m down 10.7% Franchising Operations Margin

  19. Slide 19: Segment Analysis: Total Property Segments

    Segment Analysis: Total Property Segments Total Property FY June 13 FY June 12 Mvmt on PY For personal use only Segment Revenue $229.07m $205.43m up 11.5% Revaluation Increment/(Decrement) ($59.12m) ($24.99m) down 136.5% Segment EBITDA $96.36m $116.53m down 17.3% Segment Result Before Tax $58.52m $8

  20. Slide 20: Segment Analysis: Company-Operated Retail Operations

    Segment Analysis: Company-Operated Retail Operations Total Retail Operations FY June 13 FY June 12 Mvmt on PY For personal use only Segment Revenue $1,338.83m $1,433.34m down 6.6% Segment EBITDA $38.39m $35.11m up 9.3% Segment Result Before Tax $12.53m $9.70m up 29.2% Retail Ops segment  nil revenu

  21. Slide 21: Outlook

    Outlook  The value of the Harvey Norman brand is underpinned by the integration of stores, online, mobile For personal use only and local distribution centres. This strategy will continue to deliver improved results and a sustainable and growing future.  The digital platform is creating new opport

  22. Slide 22: Outlook (continued)

    Outlook (continued) July 2013 Sales vs July 2012 Sales For personal use only  Sales from the franchised “Harvey Norman complexes, commercial divisions and other sales outlets in Australia” increased by 5.3% for the month of July 2013 compared to July 2012. Like for like sales increased by 6.8% for

  23. Slide 23: Questions (limited to 30 minutes)

    Questions (limitedtoto Questions (limited 3030 minutes) minutes) For personal use only 23

Harvey Norman Holdings — FY2013 Earnings Presentation on 6ix