Harvey Norman Holdings Ltd · ASX:HVN
Harvey Norman — H1 2024 Earnings Presentation
19 slides from Harvey Norman's earnings presentation, Feb 29, 2024
Slide 1: Half Year Results Presentation December 2023
HALF YEAR RESULTS P R E S E N TAT I O N DECEMBER 2023 Australia Singapore Ireland Malaysia New Zealand Slovenia Northern Ireland Croatia
Slide 2: Contents
2 Contents December 2023 (1H24) Results 3 1H24 Results for Announcement to the Market 4-5 An Integrated Retail, Franchise, Property & Digital 6 System Segment Analysis 7 Review of the Balance Sheet 8-9 Review of the Statement Cash Flows 10 Aggregated Sales Revenue 11 Australian Franchisee Aggregated
Slide 3: December 2023 (1H24) Results
3 DECEMBER 2023 (1H24) RESULTS Net Assets Operating Cash Flows PBT [excluding AASB 16 net impact and net property revaluations] $4.510bn $497.31m $303.82m [$m] [$m] [$m] $47.31m from 1H23 $156.24m from 1H23 $126.88m from 1H23 $17.96m from 1H20 $1,225.74m from 1H20 4-YEAR CAGR 8.3% $198.5
Slide 4: 1H24 Results for Announcement to the Market
4 1H24 RESULTS FOR ANNOUNCEMENT TO THE MARKET EBITDA EBIT Total System Sales Revenue $473.02m $337.95m $4.64 bn $221.00m or -31.8% from $694.01m in 1H23 $224.42m or –39.9% from $562.37m in 1H23 $29.89m or 6.7% from $443.13m in 1H20 $5.57m or 1.7% from $332.39m in 1H20 Aggregated headline fra
Slide 5: 1H24 Results for Announcement to the Market (continued)
1H24 RESULTS FOR ANNOUNCEMENT TO THE MARKET (continued) 5 • $4.51bn net assets, up $47.31m or 1.1% from Dec- 22 substantial 37.3% growth since Dec-19 • Prudent financial management has resulted in an improved liquidity position and low net debt to equity ratio of 10.75% in 1H24, an improvement fro
Slide 6: An Integrated Retail, Franchise, Property and Digital System
AN INTEGRATED RETAIL, FRANCHISE, PROPERTY AND DIGITAL SYSTEM 6 We operate an integrated retail, franchise, property and digital system across 8 countries. Australia New Zealand Singapore Slovenia Ireland Malaysia Northern Ireland Croatia 198 46 12 5 16 32 2 3 franchised complexes stores stores store
Slide 7: Segment Analysis
SEGMENT ANALYSIS 7 The consolidated entity operates an integrated retail, franchise, property and digital system, comprising three main strategic pillars: 1. Franchise — 2. Retail — 3. Property complemented by sustained investment in technology, digital transformation and IT infrastructure assets. F
Slide 8: Review of the Balance Sheet
REVIEW OF THE BALANCE SHEET 8 Increase / (Decrease) Increase / (Decrease) 31 DECEMBER 2023 31 DECEMBER 2022 $ % Total assets $7.86bn $7.81bn $45.96m 0.6% Total liabilities $3.35bn $3.35bn ($1.35m) (-0.0%) Equity $4.51bn $4.46bn $47.31m 1.1% • $243.29m decrease in total current trade and other receiv
Slide 9: Review of the Balance Sheet (continued)
REVIEW OF THE BALANCE SHEET (continued) 9 Composition of Total Assets of $7.86bn $954.42m Receivables $611.61m $345.63m Inventory Plant & equipment $214.65m Other $524.61m $724.97m Property, plant & $344.39m $4,137.86m Investment properties: equipment: Cash Freehold property assets Leasehold right o
Slide 10: Review of the Statement of Cash Flows
REVIEW OF THE STATEMENT OF CASH FLOWS 10 Increase / (Decrease) Increase / (Decrease) 31 DECEMBER 2023 31 DECEMBER 2022 $ % Net cash flows from operating activities $497.31m $341.07m $156.24m 45.81% Net cash flows used in investing activities ($137.88m) ($150.61m) $12.73m 8.5% Net cash flows used in
Slide 11: Aggregated Sales Revenue
AGGREGATED SALES REVENUE 11 Aggregated sales increase / (decrease) in constant local currencies: Total franchisee sales* Total Sales Local Currency 1H24 vs 1H23 Half-year ended 31 December 2023 $3.16bn 9.7% on 1H23 Australian Franchisees* $ AUD (-9.7%) 7.2% on 1H20 New Zealand $ NZD (-6.1%) Slov
Slide 12: Australian Franchisee Aggregated Sales Revenue
AUSTRALIAN FRANCHISEE AGGREGATED SALES REVENUE* 12 • Australian franchisee sales for 1H24 decreased by 9.7% to $3.16 billion relative to 1H23 as 1H23 was buoyed by the normalisation of retail trading conditions following two years of COVID-related disruptions. 1H23 saw near-record sales of $3.51 bil
Slide 13: Franchising Operations Segment
FRANCHISING OPERATIONS SEGMENT 13 Increase / (Decrease) Increase / (Decrease) 1H24 1H23 $ % Franchising operations segment revenue $511.81m $595.08m ($83.27m) (-14.0%) Aggregated franchisee headline sales revenue* $3.16bn $3.51bn ($341.49m) (-9.7%) Franchising operations segment PBT $143.08m $237.65
Slide 14: Overseas Company-Operated Retail Segment
OVERSEAS COMPANY-OPERATED RETAIL SEGMENT 14 Increase / (Decrease) Increase / (Decrease) Overseas retail segment PBT result 1H24 1H23 $ % Retail – New Zealand $39.53m $45.28m ($5.75m) (-12.7%) Retail – Singapore & Malaysia $19.01m $26.97m ($7.95m) (-29.5%) Retail – Ireland & Northern Ireland $14.54m
Slide 15: Overseas Company-Operated Retail Segment (continued)
OVERSEAS COMPANY-OPERATED RETAIL SEGMENT (continued) 15 New Zealand Singapore & Malaysia • Aggregated sales revenue for Asia combined was $356.24m, an increase of $8.68m, or 2.5%, • Sales for 1H24 declined by $22.65m, or –4.3%, to $506.21m for 1H24, from $528.86m in from $347.56m in 1H23. 1H23 as ma
Slide 16: Property Segment
PROPERTY SEGMENT 16 Increase / (Decrease) Increase / (Decrease) 31 December 2023 31 December 2022 $ % Property segment revenue $160.62m $257.79m ($97.17m) (-37.7%) Net property revaluation (decrement) / increment ($5.12m) $106.89m ($112.01m) (-104.8%) Property segment EBITDA $92.91m $201.56m ($108.6
Slide 17: Freehold Property Portfolio
FREEHOLD PROPERTY PORTFOLIO 17 Net Increase / # of Owned # of Owned Net Increase / (Decrease) December Retail Other (Decrease) Composition of freehold property segment assets in Fair Value 2023 Property Property in Fair Value [Income Assets Assets [Equity] Statement] (1) Investment Properties (Freeh
Slide 18: Leasehold Property Portfolio
LEASEHOLD PROPERTY PORTFOLIO 18 Composition of the Leasehold Property Portfolio: Right-of-Use Lease # of Leased # of Leased Composition of leasehold property portfolio Asset Liabilities Retail Other Dec 2023 Dec 2023 Property Assets Property Assets (1) Leases of Properties Sub-Leased to External Par
Slide 19: Outlook
OUTLOOK 19 • In Malaysia, we are on track to open a further 3 company-operated stores during 2H24, with the sites confirmed and signed. We anticipate opening up to 12 new stores during FY25, and it is still our intention to grow to 80 stores in Malaysia by the end of 2028. • In New Zealand, the full
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