Harvey Norman Holdings Ltd · ASX:HVN
Harvey Norman — FY2021 Earnings Presentation
21 slides from Harvey Norman's earnings presentation, Aug 31, 2021
Slide 1: Year-End Results Presentation 30 June 2021
ARIARNE TITMUS Australian Olympic Gold Medalist Tokyo 2020 Olympics HARVEY NORMAN ® BRAND AMBASSADOR ISABELLA NICHOLS WSL Surfer BRENDEN HALL Paralympian YEAR-END RESULTS P R E S E N TAT I O N 30 JUNE 2 0 2 1 Australia Singapore Ireland Malaysia New Zealand Slovenia Northern Ireland Croatia
Slide 2: Table of Contents
YEAR-END RESULTS PRESENTATION 30 JUNE 2021 2 2021 Results 3 Key Financial Highlights 4-6 Table ofRetail,Contents An Integrated Franchise, Property & Digital Strategy 7 Key Statistics: Balance Sheet 8 Review of the Balance Sheet 9 Review of the Statement Cash Flows 10 System Sales Revenue 11 Franchis
Slide 3: 2021 Results
3 HOLDINGS LIMITED | ACN 003 237 545 2021 RESULTS EBITDA $1.457 billion Increase of $512.46 million from FY20 Reported PBT $1.183 billion Increase of $521.24 million from FY20 Income Tax Expense $336 million Increase of $160.42 million from FY20 SYSTEM SALES REVENUE Total System Sales Revenue $9.721
Slide 4: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS 4 EBITDA Excluding AASB 16 net impact and net EBITDA property revaluations NET DEBT TO EQUITY RATIO 539 UP $1.457bn UP 54.2% $1.147bn Excluding AASB 16 net impact and net property revaluations. BY 54.4% 1042bn BY $ FROM $944.67m in FY20 FROM $742.47m in FY20 FRANCHISEES IN 7
Slide 5: Key Financial Highlights (continued)
KEY FINANCIAL HIGHLIGHTS (continued) 5 RECORD FINANCIAL RESULTS • Record reported earnings before interest, tax, depreciation & amortisation (EBITDA) of $1.457 billion, up by $512.46 million or +54.2%. • EBITDA (excluding AASB 16 impact and net property revaluations) of $1.147 billion, up by $404.09
Slide 6: Key Financial Highlights (continued)
KEY FINANCIAL HIGHLIGHTS (continued) 6 PROPERTY • 30 June 2021: 192 franchised complexes in Australia and 107 company-operated stores overseas. • Strong freehold property portfolio valued at $3.37 billion, up by $355.90 million or +11.8%, consisting of 95 freehold investment properties in Australia
Slide 7: An Integrated Retail, Franchise, Property and Digital Strategy
AN INTEGRATED RETAIL, FRANCHISE, PROPERTY AND DIGITAL STRATEGY 7 The consolidated entity operates an integrated retail, franchise, property and digital strategy, comprising three main pillars: 1. Retail- 2. Franchise- 3. Property complemented by a robust and sustained investment in technology, digit
Slide 8: Key Statistics: Balance Sheet
KEY STATISTICS: BALANCE SHEET 8 vs
Slide 9: Review of the Balance Sheet
REVIEW OF THE BALANCE SHEET 9 30 JUNE 2021 30 JUNE 2020 INCREASE / (DECREASE) TOTAL ASSETS $6,672.93m $5,828.60m $844.33m 14.5% TOTAL LIABILITIES $2,779.92m $2,351.28m $428.64m 18.2% EQUITY $3,893.02m $3,477.33m $415.69m 12.0% • $440.87m increase in franchisee receivables Total Assets o due to highe
Slide 10: Review of the Statement of Cash Flows
REVIEW OF THE STATEMENT OF CASH FLOWS 10 30 JUNE 2021 30 JUNE 2020 INCREASE / (DECREASE) NET CASH FLOWS FROM OPERATING ACTIVITIES $543.87m $1,056.96m ($513.10m) (-48.5%) NET CASH FLOWS USED IN INVESTING ACTIVITIES ($254.12m) ($136.96m) ($117.15m) (-85.5%) NET CASH FLOWS USED IN FINANCING ACTIVITIES
Slide 11: System Sales Revenue
SYSTEM SALES REVENUE 11 SYSTEM SALES INCREASE / (DECREASE) IN CONSTANT LOCAL CURRENCIES: Total System Sales Revenue of 1QTR – 2021 2QTR – 2021 3QTR – 2021 4QTR – 2021 TOTAL SALES TOTAL SALES vs vs vs vs FY2021 vs FY2020 $9.721 Billion for FY21 1QTR 2020 2QTR 2020 3QTR 2020 4QTR 2020 Comprised of agg
Slide 12: Australian Franchisee Aggregated Sales Revenue
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 businesses that are not
Slide 13: Franchising Operations Segment
FRANCHISING OPERATIONS SEGMENT 13 30 JUNE 2021 30 JUNE 2020 INCREASE / (DECREASE) FRANCHISING OPERATIONS SEGMENT REVENUE $1.238bn $949.04m $288.67m 30.4% AGGREGATED FRANCHISEE HEADLINE SALES REVENUE* $6.95bn $6.16bn $789.77m 12.8% FRANCHISING OPERATIONS SEGMENT RESULT $628.19m $348.59m $279.60m 80.2
Slide 14: Overseas Company-Operated Retail Segment
OVERSEAS COMPANY-OPERATED RETAIL SEGMENT 14 30 JUNE 30 JUNE OFFSHORE SEGMENT PROFIT RESULT 2021 2020 INCREASE / (DECREASE) RETAIL – NEW ZEALAND $141.61m $99.16m $42.45m 42.8% RETAIL – SINGAPORE & MALAYSIA $35.92m $27.62m $8.30m 30.1% RETAIL – IRELAND & NORTHERN IRELAND $51.89m $16.87m $35.01m 207.5%
Slide 15: Overseas Company-Operated Retail Segment (continued)
OVERSEAS COMPANY-OPERATED RETAIL SEGMENT (continued) 15 New Zealand Singapore & Malaysia • Sales increased by $187.96m or +19.6%, from $960.19m in FY20 to $1.15 bn • Aggregated sales revenue for Singapore and Malaysia combined increased by in FY21, surpassing the billion dollar milestone in AUD for
Slide 16: Property Segment
PROPERTY SEGMENT 16 INCREASE / TOTAL SALES 30 JUNE 2021 30 JUNE 2020 % (DECREASE) PROPERTY SEGMENT REVENUE $409.20m $300.53m $108.67m +36.2% NET PROPERTY REVALUATION INCREMENT $140.37m $34.96m $105.42m +301.6% PROPERTY SEGMENT EBITDIA $307.44m $199.02m $108.42m +54.5% PROPERTY SEGMENT RESULT BEFORE
Slide 17: Freehold Property Portfolio
FREEHOLD PROPERTY PORTFOLIO 17 # of Owned # of Owned Net Increase Net Increase / COMPOSITION OF FREEHOLD June 2021 Retail Other in Fair Value (Decrease) PROPERTY SEGMENT ASSETS Property Property (Income in Fair Value Assets Assets Statement) (Equity) (1) Investment Properties (Freehold) and Assets H
Slide 18: Leasehold Property Portfolio
LEASEHOLD PROPERTY PORTFOLIO 18 # of Leased # of Leased Right -of-Use Lease COMPOSITION OF LEASEHOLD Retail Other Asset Liabilities PROPERTY SEGMENT ASSETS Property Property June 2021 June 2021 Assets Assets (1) Leases of Properties Sub-Leased to External Parties $620.46m $647.12m 97 166 - Australia
Slide 19: Outlook
OUTLOOK 19 During the 2022 financial year, we intend to open up to 3 franchised complexes in Australia and 3 company-operated stores overseas: 1 in Malaysia, 1 in Croatia and 1 in Ireland. Beyond the upcoming financial year, we intend to open up to 2 franchised complexes in Australia during the 2023
Slide 20: Outlook (continued)
OUTLOOK (continued) 20 Aggregated Sales increase / (decrease) from 1 July 2021 to 26 August 2021 vs 1 July 2020 to 26 August 2020 1 and 1 July 2021 to 26 August 2021 vs 1 July 2019 to 26 August 2019 (% increases have been calculated in Australian Dollars $A) 1 comparable sales growth has not been ad
Slide 21: Questions
Q U E ST I O N S (LIMITED TO 30 MINUTES) 21
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