Harvey Norman Holdings Ltd · ASX:HVN
Harvey Norman — FY2017 Earnings Presentation
25 slides from Harvey Norman's earnings presentation, Aug 31, 2017
Slide 1: Presentation of Results for the Year Ended 30 June 2017
PRESENTATION OF RESULTS FOR THE YEAR ENDED 30™ JUNE 2017 HOLDINGS LIMITED ABN 54 003 237 545
Slide 2: Contents
Contents Key Financial Highlights Integrated Strategy Company-Operated Segment Aggregated Sales Revenue Franchisee Sales Revenue Solutions for a Connected Lifestyle Franchising Operations Segment Review of the Income Statement Review of the Balance Sheet Review of Cash Flows Property Segment Outlook
Slide 3: Team Harvey: Bringing Women in Sport to the Frontline
TEAM HARVEY BRINGING WOMEN IN x, bee ; CAPTAIN, GIANTS AFLW TEAM SPORT TO THE FRONTLINE > 2 As a sponsor of women in sport for over a decade, with involvement ranging from grassroots to elite levels, Harvey Norman? is leading the push to Z Pies S Gag SUPERCARS DRIVER ensure female athletes get the r
Slide 4: Key Financial Highlights: Outstanding Profitability
KEY FINANCIAL HIGHLIGHTS: OUTSTANDING PROFITABILITY HARVEY NORMAN’ ANNOUNCES RECORD BREAKING FULL-YEAR PROFIT RESULT PROFIT BEFORE TAX (excluding net property revaluations) JUNE 2017 JUNE 2017 $639.81m *29.6* °531.76m * 19.4" 2017 2016 —_Incr/(Decr) EBIT $659.88m $522.47m +26.3% Profit Before Tax (P
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Slide 6: Key Financial Highlights: Balance Sheet Strengthens
KEY FINANCIAL HIGHLIGHTS: BALANCE SHEET STRENGTHENS 6 2017 2016 __Incr/(Decr) Total Assets $4.19bn $4.43bn 5.5% Total Liabilities ($1.38bn) — ($1.74bn) 21.0% Net Assets $2.81bn $2.69bn +4.6% See TOTALASSETS Net Debt to Equity % 22.59% 18.97% +362bps Dividends Per Share 26.0c 30.0c -13.3% EPS 40.35¢
Slide 7: Integrated Strategy: Ongoing Investment in Omni Channel & Customer Engagement
INTEGRATED STRATEGY: Ongoing Investment in Omni Channel & Customer Engagement , The record-breaking results for the 2017 financial year represents an outstanding endorsement of our business model, and provides great substantive evidence of the value of our integrated retail, franchise, property and
Slide 8: A Flagship Strategy for the Future
HARVEY NORMAN” A FLAGSHIP STRATEGY FOR THE FUTURE aA Pe Our strategy is to feature a franchised Flagship complex or a Flagship e od (= _ store in each country we operate in across the globe, creating a physical space that sets the tone of the brand for that region - both in terms of achievement and
Slide 9: Flagship complexes and stores by country
Pr Australia - Auburn, Sydney 174,000 sq feet. Currently renovating with a part re-open October 2017 and fully completed by June 2018. eH Croatia - Zagreb i 97,000 sq feet. To be renovated and relaunched by April 2018. land - Tallaght, Dublin = 60,000 sq feet. Opened in July 2017. »~ Malaysia - Ikan
Slide 10: Solid Offshore Results: Company-Operated Retail Improvement
SOLID OFFSHORE RESULTS: Company-Operated Retail Improvement COMPANY-OPERATED RETAIL REVENUE ($AUDM) SEG M ENT RESULT $79.43m l U = | $19.30m ‘NEW ZEALAND SINGAPORE & MALAYSIA IRELAND & NORTHERN IRELAND ‘SLOVENIA & CROATIA OTHER NON-FRANCHISED ($2 49m) $4.63m COMPANY-OPERATED RETAIL RESULT BEFORE TAX
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Slide 12: Headline Aggregated Sales & Comparable Aggregated Sales
HEADLINE AGGREGATED SALES & COMPARABLE AGGREGATED SALES Headline aggregated sales up 5.1% ($AUD) for 12 Months to June 2017 Aggregated comparable sales up 4.5% ($AUD) for 12 Months to June 2017 Franchisee sales in Australia plus Company-Operated Harvey Norman® Sales in New Zealand, Slovenia, Croatia
Slide 13: Franchisee Sales Revenue: Underpins the Franchising Operations Segment
13 FRANCHISEE SALES REVENUE: Underpins the Franchising Operations Segment . direct correlation between franchise fee income and franchisee sales revenue; ° increased franchisee sales revenue resulted in increased franchise fee income. AGGREGATED FRANCHISEE SALES REVENUE TOTAL FRANCHISEE SALES COMPAR
Slide 14: Solutions for a Connected Lifestyle
HARVEY NORMAN” SOLUTIONS FOR A CONNECTED LIFESTYLE Franchisees have capitalised on the strong performing category of Connected Devices, with smartphones as\the centrepiece. Franchisees successfully launched the Modern PC range. Connected lifestyle devices are leading the technology advancement in th
Slide 15: Outstanding Franchising Operations Segment Result
OUTSTANDING FRANCHISING OPERATIONS SEGMENT RESULT 15 2017 2016 Incr/(Decr) % Franchising Operations Segment Revenue $968.85m $939.95m +$28.90m +3.1% Franchising Operations Segment Result $304.53m $268.15m +$36.38m = + 13.6% Franchising Operations Margin % 5.42% 5.03% +39bps FRANCHISING OPERATIONS SE
Slide 16: Franchising Operations Segment is Robust & Thriving
FRANCHISING OPERATIONS SEGMENT IS ROBUST & THRIVING Franchised Complexes 2015 2016 2017 GROSS FRANCHISE FEES ($M) oo oO Number of franchised complexes in Australia 194 192 194 §709.30m_ *659.25m *661.86m Openings during year +1 +1 +2HN HN HN +1DM Rebranded during year +1 FRANCHISING OPERATIONS DM SE
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Slide 23: Outlook
Outlook 23 * continue to invest in the Flagship Strategy * intend to open a total of six (6) new stores in the 2018 financial year: 1 Domayne® franchised complex in Western Australia and 5 company-operated stores in: Ireland (1); Malaysia (3) and Singapore (1); * housing conditions in Australia rema
Slide 24: Questions
Questions (limited to 30 minutes)
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