Harvey Norman Holdings Ltd · ASX:HVN

Harvey Norman — H1 FY2014 Earnings Presentation

16 slides from Harvey Norman's earnings presentation, Feb 28, 2014

  1. Slide 1: Presentation of Results for the Half-Year Ended 31 December 2013

    For personal use only Presentation of Results for the Half-Year Ended 31 December 2013

  2. Slide 2: Contents

    Contents For personal use only 1. Key Financial Highlights 2. Global Sales Revenue 3. Franchise Sales Revenue 4. Review of the Income Statement for the half-year ended 31 December 2013 5. Review of the Balance Sheet as at 31 December 2013 6. Review of the Statement of Cash Flows 7. Segment Analysis:

  3. Slide 3: Key Financial Highlights

    Key Financial Highlights For personal use only HY Dec 13 HY Dec 12 Mvmt on PCP EBIT (excluding property revaluations ) 2 $186.86m $168.00m up 11.2% EBIT Margin %1 14.2% 13.7% +50 bps PBT (excluding property revaluations ) 2 $168.25m $144.52m up 16.4% PBT (including property revaluations) $159.64m $9

  4. Slide 4: Global Sales Revenue

    Global Sales Revenue Global Sales Increase / (Decrease) % Global Sales $AUD For personal use only  $2.99 billion in sales from franchised “Harvey Sales Growth (%) Norman” complexes, commercial divisions & other Total (%) Like for Like (%) sales outlets in Australia, New Zealand, Slovenia, Croatia,

  5. Slide 5: Franchise Sales Revenue

    Franchise Sales Revenue  1.4% increase in franchise sales revenue to $2.48 billion for HY Dec 2013 from $2.44 billion for HY Dec 2012. For personal use only  3.3% increase in like-for-like franchise sales revenue to $2.46 billion for HY Dec 2013 from $2.38 billion for HY Dec 2012.  Retail sales i

  6. Slide 6: Income Statement

    Review of the Income Statement For personal use only Revenue Items HY Dec 13 HY Dec 12 Mvmt on PCP Sales Revenue * $776.96m $676.94m up 14.8% Gross Profit $222.37m $188.25m up 18.1% Revenues & Other Income $540.62m $548.82m down 1.5% * retail sales in HN, DM and JM complexes in Australia are made by

  7. Slide 7: Income Statement (continued)

    Review of the Income Statement (continued) For personal use only Expenses & Profit HY Dec 13 HY Dec 12 Mvmt on PCP Total Expenses ($613.21m) ($648.49m) down 5.4% Share of JV investments $9.86m $10.97m down 10.1% Profit Before Tax $159.64m $99.55m up 60.4% Income Tax Expense ($48.91m) ($16.89m) up 18

  8. Slide 8: Balance Sheet

    Review of the Balance Sheet For personal use only Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Total Assets $3.82bn $4.06bn $4.23bn $4.27bn $4.42bn Return on Total Assets % 4.15% 3.25% 3.05% 1.92% 2.52% Total Liabilities $1.67bn $1.87bn $1.96bn $1.96bn $1.97bn Net Assets $2.10bn $2.14bn $2.23bn $2.29bn $2.43b

  9. Slide 9: Balance Sheet: Net Debt to Equity Ratio (%)

    Review of the Balance Sheet: Net Debt to Equity Ratio (%) For personal use only Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 TOTAL DEBT $579.57m $682.77m $799.40m $835.79m $778.10m Less: CASH RESERVES ($166.35m) ($132.92m) ($122.47m) ($201.19m) ($161.29m) NET DEBT $413.22m $549.85m $676.93m $634.60m $616.81m

  10. Slide 10: Statement of Cash Flows

    Review of the Statement of Cash Flows For personal use only HY Dec 13 HY Dec 12 Mvmt on PCP Operating Cash Flows $183.48m $133.89m up 37.0% Operating cash  $140.63m increase in receipts from customers due to new store openings at Djitsun Mall in Singapore (Jul-13), flows ↑ by Gurney Paragon in Mala

  11. Slide 11: Statement of Cash Flows (continued)

    Review of the Statement of Cash Flows (continued) HY Dec 13 HY Dec 12 Mvmt on PCP For personal use only Investing Cash Flows ($72.49m) ($122.06m) down 40.6% Financing Cash Flows ($101.69m) $22.91m down 543.8% Net Increase in Cash Flows $9.29m $34.74m down 73.2% Cash & Cash Equivalents At Beginning o

  12. Slide 12: Segment Analysis: Franchising Operations Segment

    Segment Analysis: Franchising Operations Segment For personal use only Franchising Operations HY Dec 13 HY Dec 12 Mvmt on PCP Segment Revenue $432.85m $444.38m down 2.6% Segment Result Before Tax $79.86m $71.01m up 12.5% Franchising Operations Margin % 3.22% 2.91% +31 bps FO segment  $3.51m reducti

  13. Slide 13: Segment Analysis: Total Property Segments

    Segment Analysis: Total Property Segments For personal use only Total Property HY Dec 13 HY Dec 12 Mvmt on PCP Segment Revenue $111.34m $99.45m up 12.0% Net Property Revaluation Decrement ($8.61m) ($44.97m) down 80.9% Segment EBITDA $75.45m $28.85m up 161.6% Segment Result Before Tax $61.65m $14.00m

  14. Slide 14: Segment Analysis: Company-Operated Retail Operations

    Segment Analysis: Company-Operated Retail Operations Total Retail Operations HY Dec 13 HY Dec 12 Mvmt on PCP For personal use only Segment Revenue $779.59m $682.16m up 14.3% Segment EBITDA $26.47m $19.43m up 36.3% Segment Result Before Tax $12.89m $6.73m up 91.5% Retail Ops segment  $44.05m increas

  15. Slide 15: Outlook

    Outlook  Australian house prices are expected to continue to rise this year and housing construction is set to For personal use only grow in the year ahead. This will be a positive for the furniture, bedding, whitegoods, cooking and appliance categories.  With the staging of the FIFA World Cup in

  16. Slide 16: Questions (limited to 30 minutes)

    Questions (limited Questions (limited toto 3030 minutes) minutes) For personal use only 16

Harvey Norman Holdings — H1 FY2014 Earnings Presentation on 6ix