Harvey Norman Holdings Ltd · ASX:HVN

Harvey Norman — FY2014 Earnings Presentation

19 slides from Harvey Norman's earnings presentation, Aug 29, 2014

  1. Slide 1: Presentation of Results for the Year Ended 30 June 2014

    For personal use only Presentation of Results for the Year Ended 30 June 2014

  2. Slide 2: Contents

    Contents For personal use only 1. Key Financial Highlights 2. Strategy: Integrated Retail, Franchise, Property & Digital System 3. Strategy: Omni Channel 4. Strategy: Business Efficiencies 5. Global Sales Revenue 6. Franchise Sales Revenue 7. Review of the Income Statement for the year ended 30 June

  3. Slide 3: Key Financial Highlights

    Key Financial Highlights FY Jun 14 FY Jun 13 Mvmt on PY For personal use only EBIT (excluding property revaluations2) $349.15m $292.84m up 19.2% EBIT Margin %1 13.7% 12.4% up 130 bps PBT (excluding property revaluations2) $312.71m $247.06m up 26.6% PBT (including property revaluations) $301.06m $187

  4. Slide 4: Strategy: Integrated Retail, Franchise, Property & Digital System

    Strategy: Integrated Retail, Franchise, Property & Digital System For personal use only The Integrated Retail, Franchise, Property & Digital System provides the backbone for retail & franchising operations & differentiates Harvey Norman’s competitive position. Financial Stability Operational Benefit

  5. Slide 5: Strategy: Omni Channel

    Strategy: Omni Channel For personal use only Omni Channel strategy provides a seamless experience across physical stores and digital interfaces, creating a leading Australian integrated retail network.  Continued investment in systems, processes and people  Increasing use of data analytics  impro

  6. Slide 6: Strategy: Business Efficiencies

    Strategy: Business Efficiencies For personal use only Continued investment in systems, technology & processes to improve profitability & create operational efficiencies. Initiatives to be rolled out in FY2015 1. Merchandise inventory and supplier management system that will enhance back-end capabili

  7. Slide 7: Global Sales Revenue

    Global Sales Revenue Global sales revenue of $5.77 billion is a Sales Growth (%) For personal use only 3.5% increase on prior year and 4.7% Total (%) Like for Like (%) increase on a like-for-like basis FY Jun-14 FY Jun-14 Australia $A +1.1% +3.0% New Zealand $NZ +2.0% -2.2% Slovenia / Croatia € Euro

  8. Slide 8: Franchise Sales Revenue

    Franchise Sales Revenue Franchise Sales Revenue ($billion) For personal use only Franchise Sales $BN Like-for-Like Sales $BN $1.31 $1.33 $1.32 $1.28 $1.19 $1.15 $1.14 $1.18 $1.18 $1.14 $1.16 $1.11 $1.10 $1.09 $1.11 $1.07 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14 % increase Franchise Sales Li

  9. Slide 9: Income Statement

    Review of the Income Statement Revenue Items FY Jun 14 FY Jun 13 Mvmt on PY For personal use only Sales Revenue * $1,513.66m $1,323.48m up 14.4% Gross Profit $448.77m $379.25m up 18.3% Revenues & Other Income $1,033.62m $1,035.55m down 0.2% * retail sales in HN, DM and JM complexes in Australia are

  10. Slide 10: Income Statement (continued)

    Review of the Income Statement (continued) For personal use only Expenses & Profit FY Jun 14 FY Jun 13 Mvmt on PY Total Expenses ($1,198.83m) ($1,247.38m) Down 3.9% Share of JV investments $17.50m $20.52m down 14.7% Profit Before Tax $301.06m $187.95m up 60.2% Income Tax Expense ($88.82m) ($43.47m)

  11. Slide 11: Balance Sheet

    Review of the Balance Sheet For personal use only Harvey Norman has more than doubled its net asset base over the last ten years Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Total Assets $3.70bn $4.00bn $3.95bn $4.07bn $4.23bn Return on Total Assets % 6.25% 6.30% 4.36% 3.50% 5.01% Total Liabilities $1.55bn $1

  12. Slide 12: Balance Sheet: Net Debt to Equity Ratio (%)

    Review of the Balance Sheet: Net Debt to Equity Ratio (%) Conservative net gearing of 22.40% positions Harvey Norman to capitalise on For personal use only growth opportunities as they arise Net Assets* ($billion) & Rate of Increase from PCP (%) Net Debt To Equity Ratio % * Net Assets is after the e

  13. Slide 13: Statement of Cash Flows

    Review of the Statement of Cash Flows For personal use only FY Jun 14 FY Jun 13 Mvmt on PY Operating Cash Flows $338.94m $239.22m up 41.7% Operating cash  $196.75m increase in receipts from customers due to new store openings at Djitsun Mall (Jul-13) & Bedok Point (Jun-14) in flows ↑ by $99.72m Sin

  14. Slide 14: Statement of Cash Flows (continued)

    Review of the Statement of Cash Flows (continued) FY Jun 14 FY Jun 13 Mvmt on PY For personal use only Investing Cash Flows ($113.12m) ($208.18m) down 45.7% Financing Cash Flows ($235.21m) ($46.56m) up 405.2% Net Decrease in Cash Flows ($9.40m) ($15.53m) down 39.5% Cash & Cash Equivalents At Beginni

  15. Slide 15: Segment Analysis: Franchising Operations Segment

    Segment Analysis: Franchising Operations Segment For personal use only Franchising Operations FY Jun 14 FY Jun 13 Mvmt on PY Segment Revenue $814.02m $826.05m down 1.5% Segment Result Before Tax $143.72m $113.43m up 26.7% Franchising Operations Margin % 3.01% 2.40% up 61 bps FO segment revenue  $5.

  16. Slide 16: Segment Analysis: Total Property Segments

    Segment Analysis: Total Property Segments For personal use only Total Property FY Jun 14 FY Jun 13 Mvmt on PY Segment Revenue $219.42m $200.51m up 9.4% Net Property Revaluation Decrement ($11.65m) ($59.12m) down 80.3% Segment EBITDA $152.06m $96.36m up 57.8% Segment Result Before Tax $123.67m $58.52

  17. Slide 17: Segment Analysis: Company-Operated Retail Operations

    Segment Analysis: Company-Operated Retail Operations Total Retail Operations FY Jun 14 FY Jun 13 Mvmt on PY For personal use only Segment Revenue $1,531.50m $1,339.07m up 14.4% Segment EBITDA $54.27m $38.39m up 41.4% Segment Result Before Tax $28.72m $12.53m up 129.2% Retail Ops segment  $93.93m in

  18. Slide 18: Outlook

    Outlook  Robust housing market outlook positions HVN to harness market-leading position in homemaker category For personal use only  Housing starts forecast to grow 7% in FY14 and remain at elevated levels through at least FY16  Strong housing start performance in NSW, where more than 35% of HVN

  19. Slide 19: Questions (limited to 30 minutes)

    Questions (limited Questions (limited toto 3030 minutes) minutes) For personal use only 19

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