Harvey Norman Holdings Ltd · ASX:HVN

Harvey Norman — H1 FY2013 Earnings Presentation

20 slides from Harvey Norman's earnings presentation, Feb 28, 2013

  1. Slide 1: Presentation of Results for the Half-Year Ended 31 December 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 Half-Year Ended 31 December 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 2. Gl b l Sales Global S l Revenue R 3. Franchisee Sales Revenue 4. Strategic Advantages of the Harvey Norman Integrated Retail, Franchise, Property & Digital Operations 5. Net Assets 6. Key y Financial Highlights g g 7.

  3. Slide 3: Omni-Channel Strategic Plan

    Omni-Channel Strategic g Plan H O L D I N G S L I M I T E D For personal use only • The strategic initiatives of the Harvey Norman omni channel strategy requires Harvey Norman franchisees to invest in their people, and deliver the best customer experience by focussing on the core mantras of “Quality

  4. Slide 4: Global Sales Revenue

    Global Sales Revenue H O L D I N G S L I M I T E D Global Sales $AUD Global Sales Increase / (Decrease) % For personal use only ƒ Sales from the franchised Sales Growth (%) “Harvey Norman” complexes, commercial i l di divisions ii & other th Total (%) Like for Like sales outlets in Australia, New (%

  5. Slide 5: 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 ƒ Franchisee sales revenue was $2.44 billion for HY Dec 2012 vs $2.58 billion for HY Dec 2011, a decrease of 5.3%. ƒ Retail e a sa sales es in Harvey a ey Norman, o a , Domayne o ay e and a d Joyce Mayneay e complexes co p

  6. Slide 6: Strategic Advantages of the Harvey Norman Integrated Retail, Franchise, Property & Digital Operations

    Strategic Advantages of the Harvey Norman 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 The omni channel strategy, incorporating the Harvey Norman integrated retail, franchise, property & digital platform, provides strategic advantage

  7. Slide 7: Net Assets (5 Years)

    Net Assets (5 Years) H O L D I N G S L I M I T E D For personal use only Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Net Assets* $1.96bn $2.10bn $2.14bn $2.23bn $2.29bn Rate of increase from PCP 4.7% 7.4% 1.9% 4.2% 2.4% Real Property Assets $1 77bn $1.77bn $1 83bn $1.83bn $1 98bn $1.98bn $2 12bn $2.12bn $2 1

  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 HY Dec 12 HY Dec 11 Mvmt on PCP EBIT ((excludingg property p p y revaluations)) $168.00m $177.05m down 5.1% EBIT Margin %1 13.6% 12.7% +90 bps PBT (excluding property revaluations) $144.52m $152.40m down 5.2% PBT (including

  9. Slide 9: Income Statement

    Review of the Income Statement H O L D I N G S L I M I T E D For personal use only Revenue Items HY Dec 12 HY Dec 11 Mvmt on PCP Sales Revenue $676.94m $806.88m down 16.1% Gross Profit $188.25m $205.00m down 8.2% Revenues & Other Income $548.82m $584.11m down 6.0% Sales Revenue ƒ nil sales recorded

  10. Slide 10: Income Statement

    Review of the Income Statement H O L D I N G S L I M I T E D For personal use only Expenses & Profit HY Dec 12 HY Dec 11 Mvmt on PCP Total Expenses ($646.87m) ($628.03m) up 3.0% Sh Share off JV investments i t t $9 35 $9.35m $2 39 $2.39m up 291.5% 291 5% Profit Before Tax $99.55m $163.47m down 39.1%

  11. Slide 11: 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 For personal use only Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Total Assets $3.78bn $ $3.82bn $ $4.06bn $ $4.23bn $ $4.27bn $ Return on Total Assets % 2.63% 4.15% 3.25% 3.05% 1.92% Total Liabilities $1.76bn $1.67bn $1.87bn $1.96bn $1.96bn

  12. Slide 12: 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 For personal use only Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 TOTAL DEBT $655.24m $ $579.57m $ $682.77m $ $799.40m $ $835.79m $ Less: CASH RESERVES ($159.67m) ($166.35m) ($132.92m) ($122.47m) ($201.19m) NET DEBT $495.

  13. Slide 13: 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 For personal use only HY Dec 12 HY Dec 11 Mvmt on PCP Operating Cash Flows $133.89m $19.88m 573.6% Operating cash 1) increase in net receipts from franchisees by $77.73m due to the following: flows ↑ by ƒ a lower increase in net out

  14. Slide 14: 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 For personal use only HY Dec12 HY Dec 11 Mvmt on PCP g Cash Flows Investing ($122.06m)) ($ ($116.42m)) ($ ((4.8%)) Financing Cash Flows $22.91m $65.55m (65.0%) Net Increase in Cash Flows $34.74m ($31.00m) 212.0% Cash & Cash Equivale

  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 For personal use only Franchising Operations HY Dec 12 HY Dec 11 Mvmt on PCP Segment Revenue $444.38m $466.26m down 4.7% Segment EBITDA $109.21m $134.88m down 19.0% Segment Result Before Tax $71.01m $95.51m down 25.6% Fra

  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 For personal use only Total Property HY Dec12 HY Dec 11 Mvmt on PCP g Segment Revenue $110.41m $ $116.61m $ down 5.3% Revaluation Increment/(Decrement) ($44.97m) $11.07m down 506.2% Segment EBITDA $28.85m $83.37m down 65.4% Segm

  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 For personal use only Total Retail Operations HY Dec 12 HY Dec 11 Mvmt on PCP g Segment Revenue $682.16m $ $822.53m $ down 17.1% Segment EBITDA $19.43m $9.94m up 95.5% Segment Result Before Tax $6.73m ($1.14m) up 692.

  18. Slide 18: Outlook

    Outlook H O L D I N G S L I M I T E D For personal use only ƒ Digital operations Æ developing well to support and enhance the store network for the Australian franchisees and company operated stores internationally ƒ The experience of the customer is at the centre of our omni channel strategic plan

  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 ƒ Ireland Æ Solid period of improvement & we expect this to continue in the year ahead. Our Customer First strategy has us in a strong position with Irish consumers & we have positive expectations for ongoing improvement in the

  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

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