Harvey Norman Holdings Ltd · ASX:HVN

Harvey Norman — FY2012 Earnings Presentation

29 slides from Harvey Norman's earnings presentation, Aug 31, 2012

  1. Slide 1: Presentation of Results for the Year Ended 30 June 2012

    H O L D I N G S L I M I T E D For personal use only Presentation of Results for the Year Ended 30 June 2012

  2. Slide 2: For personal use only

    H O L D I N G S L I M I T E D For personal use only 1. Omni-Channel Strategy 2. Franchisee Sales Revenue 3. Strategic Advantages of Our Integrated Retail, Franchise, Property & Digital Operations 4. Net Assets 5. Key Financial Highlights 6. Review of the Income Statement for the year ended 30/06/12

  3. Slide 3: Our Omni Channel Strategy

    Omni-Channel Strategy Our Omni Channel Strategy H O L D I N G S L I M I T E D For personal use only • Our Omni Channel strategy is the backbone of the business and we have made strong progress throughout the year. • With the successful launch of new online sites in both Australia and New Zealand thr

  4. Slide 4: Franchisee Sales Revenue

    Franchisee Sales Revenue H O L D I N G S L I M I T E D For personal use only Global Sales $AUD  Sales from the franchised “Harvey Norman” complexes, commercial divisions & other sales outlets in Australia, New Zealand, Slovenia, Croatia, Ireland & Northern Ireland (excluding Singapore)(“Global Sale

  5. Slide 5: Franchisee Trading Performance

    Franchisee Sales Revenue Franchisee Trading Performance H O L D I N G S L I M I T E D For personal use only  2012 proceeded to be the most challenging year due to unprecedented price & margin deflation in our television & devices categories.  Demise of WOW Sight & Sound (turnover estimated to be a

  6. Slide 6: Strategic Advantages of Our Integrated Retail, Franchise, Property & Digital Operations

    Strategic Advantages of Our Integrated Retail, Franchise, Property & Digital Operations H O L D I N G S L I M I T E D For personal use only Our Omni Channel strategy, incorporating our integrated retail, franchise, property & digital operations, provides strategic advantages over our competitors inc

  7. Slide 7: Net Assets (5 Years)

    Net Assets (5 Net Assets (5Years) Years) H O L D I N G S L I M I T E D For personal use only Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Net Assets* $1.90bn $2.01bn $2.10bn $2.19bn $2.24bn Rate of increase from PY 12.2% 5.6% 4.8% 4.3% 1.9% Real Property Assets $1.68bn $1.82bn $1.88bn $2.04bn $2.12bn Rate of

  8. Slide 8: Key Financial Highlights

    Key Financial Highlights H O L D I N G S L I M I T E D For personal use only FY June 12 FY June 11 Mvmt on PY EBIT (excluding property revaluations) $301.86m $401.46m down 24.8% EBIT Margin %1 12.2% 14.9% -270 bps PBT (including property revaluations) $227.41m $373.94m down 39.2% NPAT 2 $172.47m $25

  9. Slide 9: Review of the Income Statement

    Review of the Income Statement H O L D I N G S L I M I T E D Revenue Items FY June 12 FY June 11 Mvmt on PY For personal use only Sales Revenue $1,407.34m $1,556.38m down 9.6% Gross Profit $381.98m $426.87m down 10.5% Revenues & Other Income $1,061.23m $1,122.46m down 5.5% Sales Revenue  the reduct

  10. Slide 10: Review of the Income Statement

    Review of the Income Statement H O L D I N G S L I M I T E D Expenses & Profit FY June 12 FY June 11 Mvmt on PY For personal use only Total Expenses ($1,227.04m) ($1,193.44m) up 2.8% Share of JV investments $11.24m $18.05m down 37.7% Profit Before Tax $227.41m $373.94m down 39.2% Income Tax Expense

  11. Slide 11: Review of the Balance Sheet (5 Years)

    Review of the Balance Sheet (5 Years) H O L D I N G S L I M I T E D June 08 June 09 June 10 June 11 June 12 For personal use only Total Assets $3.37bn $3.66bn $3.70bn $4.00bn $3.95bn Return on Total Assets % 10.65% 5.86% 6.25% 6.30% 4.36% Total Liabilities $1.42bn $1.60bn $1.55bn $1.78bn $1.68bn Net

  12. Slide 12: Review of the Balance Sheet: Net Debt to Equity Ratio (%)

    Review of the Balance Sheet: Net Debt to Equity Ratio (%) H O L D I N G S L I M I T E D June 08 June 09 June 10 June 11 June 12 For personal use only TOTAL DEBT $566.94m $586.68m $501.17m $651.76m $779.35m Less: CASH RESERVES ($64.66m) ($157.91m) ($157.24m) ($162.78m) ($172.46m) NET DEBT $502.28m $4

  13. Slide 13: Review of the Statement of Cash Flows

    Review of the Statement of Cash Flows H O L D I N G S L I M I T E D FY June 12 FY June 11 Mvmt on PY For personal use only Operating Cash Flows $200.95m $358.97m down 44.0% Operating cash 1) Reduction in net receipts from franchisees by $180.33m due to the following: flows ↓ by  lower revenue recei

  14. Slide 14: Review of the Statement of Cash Flows

    Review of the Statement of Cash Flows H O L D I N G S L I M I T E D FY June 12 FY June 11 Mvmt on PY For personal use only Investing Cash Flows ($171.07m) ($345.24m) down 50.4% Financing Cash Flows ($8.51m) $4.09m down 308.2% Net Increase in Cash Flows $21.36m $17.82m up 19.9% Cash & Cash Equivalent

  15. Slide 15: Segment Analysis: Franchising Operations Segment

    Segment Analysis: Franchising Operations Segment H O L D I N G S L I M I T E D Franchising Operations FY June 12 FY June 11 Mvmt on PY For personal use only Segment Revenue $858.01m $938.93m down 8.6% Segment EBITDA $202.81m $332.46m down 39.0% Segment Result Before Tax $126.98m $254.59m down 50.1%

  16. Slide 16: Segment Analysis: Total Property Segments

    Segment Analysis: Total Property Segments H O L D I N G S L I M I T E D Total Property** FY June 12 FY June 11 Mvmt on PY For personal use only Segment Revenue $205.43m $174.53m up 17.7% Revaluation Increment/(Decrement) ($24.99m) $15.46m down 261.7% Segment EBITDA $116.53m $136.55m down 14.7% Segme

  17. Slide 17: Segment Analysis: Company-Operated Retail Operations

    Segment Analysis: Company-Operated Retail Operations H O L D I N G S L I M I T E D Total Retail Operations FY June 12 FY June 11 Mvmt on PY For personal use only Segment Revenue $1,433.34m $1,585.89m down 9.6% Segment EBITDA $35.11m $16.76m up 109.6% Segment Result Before Tax $9.70m ($10.59m) up 191

  18. Slide 18: Outlook

    Outlook H O L D I N G S L I M I T E D We continue to execute our Omni-channel strategic plan to deliver improved performance from For personal use only  the Australian franchisees & company-operated stores internationally.  Our integrated retail, franchise, property & digital operations are the ba

  19. Slide 19: Outlook (continued)

    Outlook (continued) H O L D I N G S L I M I T E D For personal use only  Our New Zealand operation remains strong and will be positively supported by the re-opening of the main complex within Christchurch in late 2012.  Our Irish business has improved & we expect this to continue in the year ahead

  20. Slide 20: Questions (limited to 30 minutes)

    Questions (limitedtoto Questions (limited 3030 minutes) minutes) H O L D I N G S L I M I T E D For personal use only 20

  21. Slide 21: Appendix 1: Selection of Properties as at 30 June 2012

    APPENDIX 1: Selection Questions (limited of Properties as at 30 June 2012 to 30 minutes) H O L D I N G S L I M I T E D For personal use only Harvey Norman Albury Centre is a modern bulky goods retail Domayne Alexandria is located in the inner-city suburb of Located in the suburb of western Sydney, t

  22. Slide 22: Appendix 1: Selection of Properties as at 30 June 2012

    APPENDIX 1: Selection Questions (limited of Properties as at 30 June 2012 to 30 minutes) H O L D I N G S L I M I T E D For personal use only Harvey Norman Cambridge Park TAS Located between Condamine Street and Roseberry Street, Located in the city of Clarence, Harvey Norman Centre Situated on the w

  23. Slide 23: Appendix 1: Selection of Properties as at 30 June 2012

    APPENDIX 1: Selection Questions (limited of Properties as at 30 June 2012 to 30 minutes) H O L D I N G S L I M I T E D For personal use only Harvey Norman Fyshwick is the second largest retail store in Harvey Norman Gepps X forms part of South Australia’s The Harvey Norman Lower Hutt Centre is a mod

  24. Slide 24: Appendix 1: Selection of Properties as at 30 June 2012

    APPENDIX 1: Selection Questions (limited of Properties as at 30 June 2012 to 30 minutes) H O L D I N G S L I M I T E D For personal use only The centre is situated on a prominent location on Rosamond Harvey Norman Midland is located centrally in the south Located 28 kilometres north of Adelaide’s CB

  25. Slide 25: Appendix 1: Selection of Properties as at 30 June 2012

    APPENDIX 1: Selection Questions (limited of Properties as at 30 June 2012 to 30 minutes) H O L D I N G S L I M I T E D For personal use only The Perth City West Centre is located in West Perth, an inner Just 5 minutes from Penrith CBD and at the foothills of the Penrith is a regional centre on the w

  26. Slide 26: Appendix 1: Selection of Properties as at 30 June 2012

    APPENDIX 1: Selection Questions (limited of Properties as at 30 June 2012 to 30 minutes) H O L D I N G S L I M I T E D For personal use only Harvey Norman Rutherford NSW Space Furniture in Singapore Harvey Norman Rutherford occupies a prominent position on The modern, cutting-edge design and mixture

  27. Slide 27: Appendix 1: Selection of Properties as at 30 June 2012

    APPENDIX 1: Selection Questions (limited of Properties as at 30 June 2012 to 30 minutes) H O L D I N G S L I M I T E D For personal use only The Silverwater warehouse complex comprises the whole Harvey Norman Toowoomba is a modern bulky goods The Noble Park Harvey Norman warehouse is located on the

  28. Slide 28: Appendix 1: Selection of Properties as at 30 June 2012

    APPENDIX 1: Selection Questions (limited of Properties as at 30 June 2012 to 30 minutes) H O L D I N G S L I M I T E D For personal use only Harvey Norman Broadmeadows is situated on the western Harvey Norman Townsville is a modern, single level bulky Situated on the northern side of Burnside Road,

  29. Slide 29: Appendix 1: Selection of Properties as at 30 June 2012

    APPENDIX 1: Selection Questions (limited of Properties as at 30 June 2012 to 30 minutes) H O L D I N G S L I M I T E D For personal use only Space Furniture Richmond VIC Harvey Norman Auburn NSW Space Furniture occupies a prominent position on the Auburn located approximately 18 kilometres west of S

Harvey Norman Holdings — FY2012 Earnings Presentation on 6ix