Harvey Norman Holdings Ltd · ASX:HVN

Harvey Norman — HY2018 Earnings Presentation

22 slides from Harvey Norman's earnings presentation, Feb 28, 2018

  1. Slide 1: Presentation of Results for the Half-Year Ended 31 December 2017

    a. ‘= O @ “ 3 = ‘= S) PRESENTATION 4 OF RESULTS f FOR THE HALF-YEAR ENDED ] 31" DECEMBER 2017 YD | y Harvey Norman HOLDINGS LIMITED ABN 54 003 237 545

  2. Slide 2: Contents

    Contents Flagship Strategy 0... 3 i Underlying Profit ..........sssscssssesscessneseesees 4 Reported Profit Before Tax ..........ssseesssseeees 7 in Key Statistics: Balance Sheet... 8 os Company-Operated Retail Segment. ......... y Aggregated Sales Revenue ..........ss.sssseee: 11 Franchisee Sales R

  3. Slide 3: Flagship Strategy

    These Flagship complexes and stores represent the best of the Harvey Norman? brand, and are setting the course for our future,

  4. Slide 4: Key Financial Highlights: Underlying Profit

    KEY FINANCIAL HIGHLIGHTS: UNDERLYING PROFIT* (*excluding significant items) RESULTS FOR HALF-YEAR ENDED 31 DECEMBER 2017 moet $296,08m_ *+0.8” (*Excluding net property revaluations, Coomboona JV trading losses and Coomboona JV impairment) UNDERLYING PROFIT BEFORE TAX ($M) (Excluding net property rev

  5. Slide 5: Key Contributors to Record Underlying Profit

    KEY CONTRIBUTORS TO RECORD UNDERLYING PROFIT > $61.82m profit from company-operated offshore retail operations, up +8.4% from $57.04m in HY17 — all overseas Harvey Norman® company operated stores reporting sales growth, higher profitability and market share gains; > $167.21m profit from franchising

  6. Slide 6: Reconciliation of Underlying Profit to Reported Profit Before Tax

    RECONCILIATION OF UNDERLYING PROFIT TO REPORTED PROFIT BEFORE TAX HY2018 HY2017 Incr/(Decr) REPORTED PROFIT BEFORE TAX $293.61m $366.23m 19.8% Less: Net property revaluation increment ($22.76m) = ($75.74m) Profit Before Tax Excluding Net Property Revaluation Increment $270.85m $290.49m Add back: Coo

  7. Slide 7: Reported Profit Before Tax: Key Contributors

    REPORTED PROFIT BEFORE TAX: KEY CONTRIBUTORS 7 RESULTS FOR HALF-YEAR ENDED 31 DECEMBER 2017 prone °293.61m *""-19,8" ¢8.61m) $293.61m $22.76m PROFIT BEFORE TAX AS REPORTED ($M) (Including property revaluations) $262.01m ; 2016 2013 2014 2015 HALF-YEAR ENDED 31 DECEMBER (including net property revalu

  8. Slide 8: Key Statistics: Balance Sheet

    KEY STATISTICS: BALANCE SHEET HY2018 $4.51bn HY2017 $4.81bn Incr/(Decr) 6.2% Total Assets (a) Total Liabilities (a) ($1.63bn) ($2.04bn) -20.2% Net Assets $2.88bn $2.77bn +4.2% Net Debt to Equity % 24.16% 19.91% +425bps Dividends Per Share 12.0c 14.0c 14.3% EPS 18.65¢ 23.13¢ 19.4% (a) Total Assets &

  9. Slide 9: Solid Offshore Results: Company-Operated Retail Segment

    SOLID OFFSHORE RESULTS: Improvement in Company-Operated Retail Segment SEGMENT HY2018 HY2017 RESULT New Zealand $41.08m Singapore & Malaysia $12.30m = $11.56m — +6.4% Ireland & = yore RETAIL REVENUE (SAUDu) +2.3% $40.15m =a Dect Deets Deel ‘Dei Deol Deets Dect? “Deets DewiS Deol Oeoll “Dest Ducid Do

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  11. Slide 11: Headline Aggregated Sales & Comparable Aggregated Sales

    HEADLINE AGGREGATED SALES & COMPARABLE AGGREGATED SALES Headline aggregated sales up “5.3% ($AUD) for the half-year (ended 31 December 2017 ggregated comparable sales up = .8% ($AUD) for the half-year ended 31 December 2017 © ggregated franchisee sales in Australia plus Company-Operated “Harvey Norm

  12. Slide 12: Franchisee Sales Revenue

    FRANCHISEE SALES REVENUE: Underpins the Franchising Operations Segment 12 AGGREGATED FRANCHISEE SALES REVENUE TOTAL FRANCHISEE SALES COMPARABLE FRANCHISEE SALES DECEMBER 2017 DECEMBER 2017 $3. 00bn 4.8% $2.97bn #4.1% AUSTRALIAN FRANCHISEES QUARTERLY AGGREGATED SALES REVENUE 421% 483% << sen _ “en ae

  13. Slide 13: Segment Analysis: Franchising Operations

    SEGMENT ANALYSIS: FRANCHISING OPERATIONS 13 HY2018 HY2017 — Incr/(Decr) % Aggregated Franchisee Headline Sales Revenue $3,001.68m $2,863.41m +$138.27m +4.8% Franchising Operations Segment Result $167.21m $172.13m $4.91m — -2.9% Franchising Operations Margin % 5.57% 6.01% -44bps FRANCHISING OPERATION

  14. Slide 14: Segment Analysis: Franchising Operations (Continued)

    SEGMENT ANALYSIS: FRANCHISING OPERATIONS (CONTINUED) 14 SITAR REACT Franchised Complexes HY2016 HY2017. HY20 *402.83m *419.01m “208m Number of franchised complexes in 191 193 195 e “346.66 defen Australia Openings during period +THN +T1HN +1DM FRANCHISING OPERATIONS ‘SEGMENT RESULT ($M) Rebranded du

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  22. Slide 22: Questions

    Questions (limited to 30 minutes)

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