Harvey Norman Holdings Ltd · ASX:HVN
Harvey Norman — 1H21 Earnings Presentation
21 slides from Harvey Norman's earnings presentation, Feb 26, 2021
Slide 1: Half-Year Results Presentation 31 December 2020
HALF-YEAR RESULTS PRESENTATION 31 DECEMBER 2020 For personal use only HOLDINGS LIMITED | ACN 003 237 545
Slide 2: Table of Contents
HALF-YEAR RESULTS PRESENTATION 31 DECEMBER 2020 Table of Contents For personal use only Key Financial Highlights 3-4 Group Results for 1H21 5 An Integrated Retail, Franchise, Property & Digital Strategy 6 Key Statistics: Balance Sheet 8 Review of the Balance Sheet 9 Review of the Statement Cash Flow
Slide 3: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS 3 HARVEY NORMAN HOLDINGS LIMITED REPORTED PBT PBT Excluding AASB 16 net impact and net property revaluations 539 $ 643.91m $ 610.22m FRANCHISEES For personal use only UP BY 113.8% UP BY 113.5% IN AUSTRALIA FROM $301.15m IN 1H20 FROM $285.87m IN 1H20 Excluding AASB 16 net imp
Slide 4: Key Financial Highlights (continued)
KEY FINANCIAL HIGHLIGHTS (continued) 4 RECORD FINANCIAL Reported profit before tax Franchising operations 1H21 offshore company- (PBT) of $643.91m, up by segment revenue of operated retail revenue of ACHIEVEMENT $342.76m or +113.8% from $689.27m up by $245.46m $1.39bn, up by $242.72m or 1H20. or +55
Slide 5: Group Results for 1H21
GROUP RESULTS FOR 1H21 For personal use only 5 Net profit after tax (NPAT) and non-controlling interests increased by $248.44m, or +116.3%, to $462.03m for 1H21, from $213.59m in 1H20. Excluding the AASB 16 net impact and the after tax net property revaluation adjustments, NPAT would have been $438.
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 For personal use only complemented by a robust and sustained investm
Slide 7: Summary of Temporary Store Closures Due to COVID-19
SUMMARY OF TEMPORARY STORE CLOSURES DUE TO COVID-19 7 Our company operated stores in New Zealand, Ireland, Northern Ireland and Slovenia were mandatorily closed by their respective Governments for between 2 to 6 weeks during the current half-year period. Based on the eligibility criteria of the COVI
Slide 8: Key Statistics: Balance Sheet
KEY STATISTICS: BALANCE SHEET 8 vs For personal use only
Slide 9: Review of the Balance Sheet
REVIEW OF THE BALANCE SHEET 9 31 December 31 December INCREASE / 2020 2019 (DECREASE) For personal use only TOTAL ASSETS $6,256.70m $6,049.01m $207.69m 3.43% TOTAL LIABILITIES $2,517.18m $2,765.02m ($247.84m) (8.96%) EQUITY $3,739.52m $3,283.99m $455.53m 13.87% • $99.16m (+3.88%) increase in the val
Slide 10: Review of the Statement of Cash Flows
REVIEW OF THE STATEMENT OF CASH FLOWS 10 1H21 1H20 INCREASE / (DECREASE) NET CASHFLOWS FROM OPERATING ACTIVITIES $391.95m $298.77m $93.18m 31.19% NET CASHFLOWS USED IN INVESTING ACTIVITIES ($96.36m) ($84.98m) ($11.37m) (-13.38%) For personal use only NET CASHFLOWS USED IN FINANCING ACTIVITIES ($320.
Slide 11: System Sales Revenue
SYSTEM SALES REVENUE 11 SYSTEM SALES INCREASE / (DECREASE) IN CONSTANT LOCAL CURRENCIES: Total System Sales Revenue of $5.23 Billion for 1H21 For personal use only TOTAL SALES 1QTR – 2021 vs 2QTR – 2021 vs 1H21 vs TOTAL SALES 1QTR 2020 2QTR 2020 1H20 AUSTRALIAN FRANCHISEES $ AUD* +31.4% +23.8% +27.3
Slide 12: Australian Franchisee Aggregated Sales Revenue
For personal use only 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 bu
Slide 13: Franchising Operations Segment
FRANCHISING OPERATIONS SEGMENT 13 INCREASE / 1H21 1H20 (DECREASE) FRANCHISING OPERATIONS SEGMENT REVENUE $689.27m $443.81m $245.46m 55.3% For personal use only AGGREGATED FRANCHISEE HEADLINE SALES REVENUE* $3.76bn $2.95bn $805.09m 27.3% FRANCHISING OPERATIONS SEGMENT RESULT $383.96m $123.86m $260.10
Slide 14: Offshore Achievements for 1H21
OFFSHORE ACHIEVEMENTS FOR 1H21 14 Ireland Singapore Malaysia 21.5% Opened 2 new stores Opened 3 new stores Opened 3 new stores OF TOTAL • Seletar Mall (Sep-20) • KL East Mall (Nov-20) For personal use only • Galway (Jul-20) CONSOLIDATED PBT • The Centrepoint (Sep-20) • Menara (Dec-20) • Sligo (Nov-2
Slide 15: Overseas Company-Operated Retail Segment
OVERSEAS COMPANY-OPERATED RETAIL SEGMENT 15 OVERSEAS SEGMENT PROFIT RESULT 1H21 1H20 INCREASE / (DECREASE) RETAIL – NEW ZEALAND $75.34m $48.53m $26.81m 55.3% For personal use only RETAIL – SINGAPORE & MALAYSIA $20.76m $15.16m $5.60m 37.0% RETAIL – IRELAND & NORTHERN IRELAND $35.21m $12.45m $22.77m 1
Slide 16: Overseas Company-Operated Retail Segment (continued)
OVERSEAS COMPANY-OPERATED RETAIL SEGMENT (continued) 16 New Zealand Singapore & Malaysia • Sales increased by $90.49m or +18.0%, from $503.90m in 1H20 to $594.39m • Aggregated sales revenue increased by $10.58m or +3.6%, from $292.05m in in 1H21 1H20 to $302.63m in 1H21 For personal use only • Retai
Slide 17: Property Segment
PROPERTY SEGMENT 17 INCREASE / TOTAL SALES 1H21 1H20 % (DECREASE) For personal use only PROPERTY SEGMENT REVENUE $167.23m $156.91m $10.32m +6.6% NET PROPERTY REVALUATION INCREMENT $36.32m $20.28m $16.04m +79.1% PROPERTY SEGMENT EBITDIA $117.07m $107.09m $9.98m +9.3% PROPERTY SEGMENT RESULT BEFORE TA
Slide 18: Freehold Property Portfolio
FREEHOLD PROPERTY PORTFOLIO 18 Net Increase Net Increase # of Owned # of Owned For personal use only December in Fair Value in Fair Value COMPOSITION OF FREEHOLD Retail Other 2020 (Income (Equity PROPERTY SEGMENT ASSETS Property Property ($m) Statement) Assets Assets ($m) ($m) (1) Investment Propert
Slide 19: Leasehold Property Portfolio
LEASEHOLD PROPERTY PORTFOLIO 19 Right -of-Use Lease # of Leased # of Leased COMPOSITION OF LEASEHOLD Asset Dec 20 Liabilities Retail Other PROPERTY SEGMENT ASSETS Dec 20 Property Property ($m) ($m) Assets Assets For personal use only (1) Leases of Properties Sub-Leased to External Parties - Australi
Slide 20: Outlook
OUTLOOK 20 From 1 January 2021, further lockdowns and restrictions have been mandated by each local government as part of their COVID-19 Response as follows: • Australian Franchised Complexes: Western Australia (WA): 5-day closure of 13 Harvey Norman® and Domayne® franchised complexes located in Per
Slide 21: Questions
For personal use only Q U E ST I O N S (LIMITED TO 30 MINUTES) 21