Harvey Norman Holdings Ltd · ASX:HVN
Harvey Norman — H1 FY2023 Earnings Presentation
20 slides from Harvey Norman's earnings presentation, Feb 28, 2023
Slide 1: Half-Year Results Presentation
HALF-YEAR RESULTS PRESENTATION 31 DECEMBER 2020 ®
Slide 2: Half Year-End Results Presentation 31 December 2022
HALF YEAR-END RESULTS PRESENTATION 31 DECEMBER 2022 2 Half-Year 2023 Results 3 Key Financial Highlights 4-5 An Integrated Retail, Franchise, Property & Digital System 6-7 Key Statistics: Balance Sheet 8 Review of the Balance Sheet 9 Review of the Statement Cash Flows 10 Aggregated Sales Revenue 11 F
Slide 3: The Harvey Norman Retail & Property Strategy Delivers
HALF-YEAR 23 RESULTS THE HARVEY NORMAN® RETAIL & PROPERTY STRATEGY DELIVERS 3 HOLDINGS LIMITED | ACN 003 237 545
Slide 4: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS 4 EBITDA EBITDA Excluding AASB 16 net impact & net property revaluations $1.044bn $694.01m $490.26m 547 DOWN BY $60.40m or –8.0% FROM $754.41m IN 1H22 DOWN BY $47.91m or –8.9% FROM $538.16m IN 1H22 FRANCHISEES IN UP BY $250.89m or 56.6% FROM $443.13m IN 1H20 UP BY $148.72m o
Slide 5: Key Financial Highlights (continued)
KEY FINANCIAL HIGHLIGHTS (continued) 5 Group Results • Reported profit before tax (PBT) of $522.67 million, down by $89.57 • Total operating expenses as a percentage of total system sales revenue million or -14.6% from $612.24 million in 1H22. Compared to pre-COVID remain efficient at 16.4% for 1H23
Slide 6: An Integrated Retail, Franchise, Property and Digital System
AN INTEGRATED RETAIL, FRANCHISE, PROPERTY AND DIGITAL SYSTEM 6 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 7: An Integrated Retail, Franchise, Property and Digital System (continued)
AN INTEGRATED RETAIL, FRANCHISE, PROPERTY AND DIGITAL SYSTEM (continued) 7 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 tech
Slide 8: Key Statistics: Balance Sheet
KEY STATISTICS: BALANCE SHEET 8 vs
Slide 9: Review of the Balance Sheet
REVIEW OF THE BALANCE SHEET 9 31 DECEMBER 31 DECEMBER INCREASE / (DECREASE) 2022 2021 TOTAL ASSETS $7,812.19m $6,961.37m $850.82m 12.2% TOTAL LIABILITIES $3,349.77m $2,797.09m $552.68m 19.8% EQUITY $4,462.42m $4,164.28m $298.14m 7.2% • $351.28m increase in the value of the freehold investment proper
Slide 10: Review of the Statement of Cash Flows
REVIEW OF THE STATEMENT OF CASH FLOWS 10 31 DECEMBER 31 DECEMBER INCREASE / (DECREASE) 2022 2021 NET CASH FLOWS FROM OPERATING ACTIVITIES $341.07m $566.16m ($225.09m) (-39.8%) NET CASH FLOWS USED IN INVESTING ACTIVITIES ($150.61m) ($77.78m) ($72.83m) (-93.6%) NET CASH FLOWS USED IN FINANCING ACTIVIT
Slide 11: Aggregated Sales Revenue
AGGREGATED SALES REVENUE 11 AGGREGATED SALES INCREASE / (DECREASE) IN CONSTANT LOCAL CURRENCIES: TOTAL SALES TOTAL SALES Local 1Q23 vs. 2Q23 vs. 1H23 vs. Aggregated Franchisee Sales of Currency 1Q22 2Q22 1H22 $3.51bn for 1H23 AUSTRALIAN FRANCHISEES* $ AUD 11.5% (-5.0%) 2.1% vs $3.43bn for 1H22 up by
Slide 12: Australian Franchisee Aggregated Sales Revenue
AUSTRALIAN FRANCHISEE AGGREGATED SALES REVENUE* 12 * 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 13: Franchising Operations Segment
FRANCHISING OPERATIONS SEGMENT 13 31 DECEMBER 31 DECEMBER INCREASE / (DECREASE) 2022 2021 FRANCHISING OPERATIONS SEGMENT REVENUE $595.08m $595.93m (-$0.85m) (-0.1%) AGGREGATED FRANCHISEE HEADLINE SALES REVENUE* $3.51bn $3.43bn $73.29m 2.1% FRANCHISING OPERATIONS SEGMENT RESULT $237.65m $292.85m (-$5
Slide 14: Overseas Company-Operated Retail Segment
OVERSEAS COMPANY-OPERATED RETAIL SEGMENT 14 31 31 OVERSEAS SEGMENT PROFIT RESULT DECEMBER DECEMBER INCREASE / (DECREASE) 2022 2021 RETAIL – NEW ZEALAND $45.28m $67.61m (-$22.33m) (-33.0%) RETAIL – SINGAPORE & MALAYSIA $26.97m $20.61m $6.35m 30.8% RETAIL – IRELAND & NORTHERN IRELAND $19.30m $33.11m (
Slide 15: Overseas Company-Operated Retail Segment (continued)
OVERSEAS COMPANY-OPERATED RETAIL SEGMENT (continued) 15 New Zealand Singapore & Malaysia • Sales for 1H23 declined by $57.57m or, -9.8% to $528.86m for 1H23, from • Aggregated sales revenue for Asia combined was $347.56m, an increase of $586.43m in 1H22. NZ sales are still ahead of pre-pandemic leve
Slide 16: Property Segment
PROPERTY SEGMENT 16 31 DECEMBER 31 DECEMBER INCREASE / TOTAL SALES % 2022 2021 (DECREASE) PROPERTY SEGMENT REVENUE $257.79m $259.38m ($1.60m) (-0.6%) NET PROPERTY REVALUATION INCREMENT $106.89m $129.38m ($22.49m) (-17.4%) PROPERTY SEGMENT EBITDIA $201.56m $206.25m ($4.69m) (-2.3%) PROPERTY SEGMENT R
Slide 17: Freehold Property Portfolio
FREEHOLD PROPERTY PORTFOLIO 17 Net Increase Net Increase / # of Owned # of Owned December in Fair Value (Decrease) COMPOSITION OF FREEHOLD Retail Other 2022 (Income in Fair Value PROPERTY SEGMENT ASSETS Property Property Statement) (Equity) Assets Assets (1) Investment Properties (Freehold) and Asse
Slide 18: Leasehold Property Portfolio
LEASEHOLD PROPERTY PORTFOLIO 18 Right -of-Use Lease # of Leased # of Leased COMPOSITION OF LEASEHOLD Asset Liabilities Retail Other PROPERTY SEGMENT ASSETS Dec 2022 Dec 2022 Property Property Assets Assets (1) Leases of Properties Sub-Leased to External Parties - Australia $702.18m $759.23m 101 200
Slide 19: Outlook
OUTLOOK 19 • The consolidated entity is confident in the resilience of its integrated retail, franchise, property and digital system and in its continued ability to deliver stable returns and sustainable growth for its stakeholders. Despite the macroeconomic headwinds and cost of living pressures af
Slide 20: Questions
Q U E ST I O N S (LIMITED TO 30 MINUTES) 20
Harvey Norman Holdings — H1 FY2023 Earnings Presentation on 6ix