Harvey Norman Holdings Ltd · ASX:HVN
Harvey Norman — H1 FY2022 Earnings Presentation
20 slides from Harvey Norman's earnings presentation, Feb 25, 2022
Slide 1: Half-Year Results Presentation
HALF-YEAR RESULTS PRESENTATION 31 DECEMBER 2020 ® HOLDINGS LIMITED | ACN 003 237 545
Slide 2: Half-Year Results Presentation 31 December 2021
HALF-YEAR RESULTS PRESENTATION 31 DECEMBER 2021 2 Half Year 22 Results 3 Key Financial Highlights 4-5 An Integrated Retail, Franchise, Property & Digital Strategy 6 Key Statistics: Balance Sheet 7 Review of the Balance Sheet 8 Review of the Statement of Cash Flows 9 System Sales Revenue 10 Franchise
Slide 3: Half Year 22 Results
Half Year 22 RESULTS 3 EBITDA Reported PBT $ 754.41 million DOWN (3.3%) FROM 1H21 UP 70.2% FROM 1H20 $ 612.24 million DOWN (4.9%) FROM 1H21 UP 103.3% FROM 1H20 Income Tax Expense Total System Sales Revenue $ 178.56 million DOWN (0.6%) FROM 1H21 UP 112.5% FROM 1H20 $ 4.91 billion DOWN (6.2%) FROM 1H2
Slide 4: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS 4 EBITDA EBITDA Excluding AASB 16 net $754.41m $538.16m impact and net property revaluations 540 Excluding AASB 16 net impact and net property revaluations. DOWN BY $25.43m or –3.3% FROM $779.84m IN 1H21 UP BY $311.28m or 70.2% FROM $443.13m IN 1H20 1042bn $DOWN BY $121.15m
Slide 5: Key Financial Highlights (continued)
KEY FINANCIAL HIGHLIGHTS (continued) 5 • As with FY2020 and FY2021, the world continues to be impacted by the ongoing effects of COVID-19. • Profit before tax (PBT) result for 1H22 was $612.24 million, a decrease of $31.67 million or –4.9% from the PBT result of $643.91 million for 1H21. • This is a
Slide 6: An Integrated Retail, Franchise, Property and Digital Strategy
AN INTEGRATED RETAIL, FRANCHISE, PROPERTY AND DIGITAL STRATEGY 6 The consolidated entity operates an integrated retail, franchise, property and digital strategy, comprising three main pillars: 1. Retail- 2. Franchise- 3. Property complemented by a robust and sustained investment in technology, digit
Slide 7: Key Statistics: Balance Sheet
KEY STATISTICS: BALANCE SHEET 7 vs Total Assets Total Liabilities DEC 2021 DEC 2020 DEC 2021 DEC 2020 UP 11.3% UP 11.1% $6.96 bn $6.26 bn $2.80 bn $2.52 bn COMPOSITION OF TOTAL ASSETS OF $6.96bn $620.46m $630.28m $278.76m $278.29m $961.76m $822.55m $186.68m $225.07m INVESTMENT PROPERTIES: INVESTMENT
Slide 8: Review of the Balance Sheet
REVIEW OF THE BALANCE SHEET 8 31 DECEMBER 31 DECEMBER INCREASE / (DECREASE) 2021 2020 TOTAL ASSETS $6,961.37m $6,256.70m $704.67m 11.3% TOTAL LIABILITIES $2,797.09m $2,517.18m $279.91m 11.1% EQUITY $4,164.28m $3,739.52m $424.76m 11.4% • $397.65m increase in the value of the freehold investment prope
Slide 9: Review of the Statement of Cash Flows
REVIEW OF THE STATEMENT OF CASH FLOWS 9 31 DECEMBER 31 DECEMBER INCREASE / (DECREASE) 2021 2020 NET CASH FLOWS FROM OPERATING ACTIVITIES $566.16m $391.95m $174.21m 44.4% NET CASH FLOWS USED IN INVESTING ACTIVITIES ($77.78m) ($96.36m) $18.58m 19.3% NET CASH FLOWS USED IN FINANCING ACTIVITIES ($340.04
Slide 10: System Sales Revenue
SYSTEM SALES REVENUE 10 SYSTEM SALES INCREASE / (DECREASE) IN CONSTANT LOCAL CURRENCIES: TOTAL SALES 1Q22 vs 2Q22 vs 1H22 vs 1Q22 vs 2Q22 vs 1H22 vs TOTAL SYSTEM TOTAL SALES 1Q21 2Q21 1H21 1Q20 2Q20 1H20 SALES REVENUE AUSTRALIAN FRANCHISEES $ AUD* NEW ZEALAND $ NZD (-16.5%) (-15.0%) (-1.7%) 6.1% (-8
Slide 11: Australian Franchisee Aggregated Sales Revenue
AUSTRALIAN FRANCHISEE AGGREGATED SALES REVENUE* 11 * 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 12: Franchising Operations Segment
FRANCHISING OPERATIONS SEGMENT 12 INCREASE / (DECREASE) INCREASE / (DECREASE) TOTAL SALES 1H22 1H21 1H20 ON 1H21 ON 1H20 FRANCHISING OPERATIONS SEGMENT REVENUE $595.93m $689.27m $443.81m (-$93.35m) (-13.5%) $152.11m 34.3% AGGREGATED FRANCHISEE HEADLINE SALES $3.43bn $3.76bn $2.95bn (-$325.26m) (-8.7
Slide 13: Overseas Company-Operated Retail Segment
OVERSEAS COMPANY-OPERATED RETAIL SEGMENT 13 31 DECEMBER 31 DECEMBER OFFSHORE SEGMENT PROFIT RESULT 2021 2020 INCREASE / (DECREASE) RETAIL – NEW ZEALAND $67.61m $75.34m (-$7.73m) (-10.3%) RETAIL – SINGAPORE & MALAYSIA $20.61m $20.76m (-$0.14m) (-0.7%) RETAIL – IRELAND & NORTHERN IRELAND $33.11m $35.2
Slide 14: Overseas Company-Operated Retail Segment (continued)
OVERSEAS COMPANY-OPERATED RETAIL SEGMENT (continued) 14 New Zealand Singapore & Malaysia • Sales decreased by $7.95m or -1.3%, from $594.39m in 1H21 to $586.43m in • Aggregated sales revenue for Asia combined was $296.15m, a decrease of 1H22. $6.48m or -2.1%, from $302.63m in 1H21. • Retail result d
Slide 15: Property Segment
PROPERTY SEGMENT 15 31 DECEMBER 31 DECEMBER INCREASE / TOTAL SALES % 2021 2020 (DECREASE) PROPERTY SEGMENT REVENUE $259.38m $167.23m $92.15m +55.1% NET PROPERTY REVALUATION INCREMENT $129.38m $36.32m $93.06m +256.2% PROPERTY SEGMENT EBITDIA $206.25m $117.07m $89.18m +76.2% PROPERTY SEGMENT RESULT BE
Slide 16: Freehold Property Portfolio
FREEHOLD PROPERTY PORTFOLIO 16 Net Increase Net Increase / # of Owned # of Owned December in Fair Value (Decrease) COMPOSITION OF FREEHOLD Retail Other 2021 (Income in Fair Value PROPERTY SEGMENT ASSETS Property Property Statement) (Equity) Assets Assets (1) Investment Properties (Freehold) and Asse
Slide 17: Leasehold Property Portfolio
LEASEHOLD PROPERTY PORTFOLIO 17 Right -of-Use Lease # of Leased # of Leased COMPOSITION OF LEASEHOLD Asset Liabilities Retail Other PROPERTY SEGMENT ASSETS Dec 2021 Dec 2021 Property Property Assets Assets (1) Leases of Properties Sub-Leased to External Parties $630.28m $661.04m 99 168 - Australia (
Slide 18: Outlook
OUTLOOK 18 • Refit program in Australia has been hampered by the government mandated closures during 1H22. It is our intention to complete the premium refits of franchised complexes located at Fyshwick, ACT and Erina, NSW by the end of calendar 2022. • We expect to ramp-up our premium refit plan wit
Slide 19: Outlook (continued)
OUTLOOK (continued) 19 Except for Ireland where sales were virtually flat, there has been sales growth in all countries for the period 1 January 2022 to 21 February 2022 against a strong prior comparable period for 1 January 2021 to 21 February 2021. When compared to a more stable recent retail trad
Slide 20: Questions
Q U E ST I O N S (LIMITED TO 30 MINUTES) 20
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