Harvey Norman Holdings Ltd · ASX:HVN
Harvey Norman — FY2023 Earnings Presentation
19 slides from Harvey Norman's earnings presentation, Aug 31, 2023
Slide 1: Presentation of Results 30 June 2023
HALF-YEAR RESULTS PRESENTATION 31 DECEMBER 2020 ® PRESENTATION OF RESULTS | 30 JUNE 2023 Australia Singapore Ireland Malaysia New Zealand Slovenia Northern Ireland Croatia
Slide 2: Contents
2 Contents 2023 Results 3 Key Financial Highlights 4-5 An Integrated Retail, Franchise, Property & Digital 6 System Segment Analysis 7 Key Statistics: Balance Sheet 8 Review of the Balance Sheet 9 Review of the Statement Cash Flows 10 Aggregated Sales Revenue 11 Franchisee Aggregated Sales Revenue 1
Slide 3: 2023 Results
3 2023 RESULTS EBITDA Reported PBT Reported NPAT & NCI $1,130.71m $776.08m $539.52m [$m] [$m] [$m] $305.85m from FY22 $364.36m from FY22 $272.01m from FY22 $442.11m from FY19 4-YEAR CAGR 13.2% $201.52m from FY19 4-YEAR CAGR 7.8% $137.20m from FY19 4-YEAR CAGR 7.6% Net Assets Operating Ca
Slide 4: Key Financial Highlights
4 KEY FINANCIAL HIGHLIGHTS EBITDA EBIT Total System Sales Revenue $1.131 bn $867.74 m $9.193 bn $305.85m or –21.3% from $1.437bn in FY22 $324.85m or –27.2% from $1.193bn in FY22 $442.11m or 64.2% from $688.60m in FY19 $264.40m or 43.8% from $603.34m in FY19 $6.417bn Aggregated headline franc
Slide 5: Key Financial Highlights (continued)
KEY FINANCIAL HIGHLIGHTS (continued) 5 • $7.67bn total assets, anchored by a $4bn property portfolio – up by $425.43m or 5.9% from FY22 Operating Cash Flows • $4.47bn net assets – substantial 40% growth since the beginning of the pandemic Substantial improvement in working capital to deliver strong
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 Northern Ireland Croatia 197 45 12 5 16 28 2 3 franchised complexes stores stores store
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: Key Statistics: Balance Sheet
KEY STATISTICS: BALANCE SHEET 8 Net Debt: June 23 Net debt of $631.61 m VS June 22 Net debt of $450.77 m Total assets Year ended 30 June $4,560.52 2023 $7.67 bn 5.9% $4,371.93 2022 $7.25 bn from June 22 $631.61 $626.47 • Total assets increased by $425.43 million or 5.9% from $3,956.30 June 2022 $4
Slide 9: Review of the Balance Sheet
REVIEW OF THE BALANCE SHEET 9 Increase / (Decrease) Increase / (Decrease) 30 June 2023 30 June 2022 $ % Total assets $7.67 bn $7.25 bn $425.43m 5.9% Total liabilities $3.21 bn $2.95 bn $253.06m 8.6% Equity $4.47 bn $4.29 bn $172.37m 4.0% • $253.38m increase in the value of the freehold investment pr
Slide 10: Review of the Statement of Cash Flows
REVIEW OF THE STATEMENT OF CASH FLOWS 10 Increase / (Decrease) Increase / (Decrease) 30 June 2023 30 June 2022 $ % Net cash flows from operating activities $680.26m $597.30m $82.96m 13.9% Net cash flows used in investing activities ($333.48m) ($178.80m) ($154.69m) (-86.5%) Net cash flows used in fin
Slide 11: Aggregated Sales Revenue
AGGREGATED SALES REVENUE 11 Aggregated sales increase / (decrease) in constant local currencies: Aggregated Franchisee Sales of Total Sales Local Currency 1H23 vs 1H22 2H23 vs 2H22 FY23 vs FY22 Australian Franchisees* $ AUD 2.1% (-12.3%) (-4.9%) $6.42 bn for FY23 New Zealand $ NZD (-5.2%) (-10.9%) (
Slide 12: Australian Franchisee Aggregated Sales Revenue
AUSTRALIAN FRANCHISEE AGGREGATED SALES REVENUE* 12 Total franchisee sales* Comparable franchisee sales* Year ended 30 June 2023 Year ended 30 June 2023 4.9% on FY22 5.1% on FY22 $6.42 bn 13.4% on FY19 $6.40 bn 14.0% on FY19 4-YEAR CAGR 3.2% 4-YEAR CAGR 3.3% * Sales made by franchisees in Aus
Slide 13: Franchising Operations Segment
FRANCHISING OPERATIONS SEGMENT 13 Increase / (Decrease) Increase / (Decrease) 30 June 2023 30 June 2022 $ % Franchising operations segment revenue $1.07bn $1.19bn (-$127.50m) (-10.7%) Aggregated franchisee headline sales revenue* $6.42bn $6.75bn (-$333.40m) (-4.9%) Franchising operations segment res
Slide 14: Overseas Company-Operated Retail Segment
OVERSEAS COMPANY-OPERATED RETAIL SEGMENT 14 Increase / (Decrease) Increase / (Decrease) Overseas retail segment PBT result 30 June 2023 30 June 2022 $ % Retail – New Zealand $80.69m $129.08m (-$48.38m) (-37.5%) Retail – Singapore & Malaysia $40.07m $45.36m (-$5.30m) (-11.7%) Retail – Ireland & North
Slide 15: Overseas Company-Operated Retail Segment (continued)
OVERSEAS COMPANY-OPERATED RETAIL SEGMENT (continued) 15 New Zealand Singapore & Malaysia • Sales for FY23 declined by $113.98m, or –10.2%, to $1.01bn for FY23, from $1.12bn in FY22. • Aggregated sales revenue for Asia combined was $682.42m, an increase of $61.19m, or 9.9%, All key categories were af
Slide 16: Property Segment
PROPERTY SEGMENT 16 Increase / (Decrease) Increase / (Decrease) 30 June 2023 30 June 2022 $ % Property segment revenue $423.13m $494.39m ($71.27m) (-14.4%) Net property revaluation increment $118.75m $213.68m ($94.93m) (-44.4%) Property segment EBITDA $308.40m $383.61m ($75.20m) (-19.6%) Property se
Slide 17: Freehold Property Portfolio
FREEHOLD PROPERTY PORTFOLIO 17 Net Increase / # of Owned # of Owned Net Increase / (Decrease) Retail Other (Decrease) Composition of freehold property segment assets June 2023 in Fair Value Property Property in Fair Value [Income Assets Assets [Equity] Statement] (1) Investment Properties (Freehold)
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 Asset Liabilities Retail Other June 2023 June 2023 Property Assets Property Assets (1) Leases of Properties Sub-Leased to External P
Slide 19: Outlook
OUTLOOK 19 • Subsequent to balance date, 2 new Harvey Norman® company-operated stores were opened in Malaysia located at Shah Alam, Selangor (opened 24 July 2023) and Kota Kinabalu, Sabah (opened 28 August 2023), bringing our total number of stores in Malaysia to 30 as at the date of this report. •
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