Harvey Norman : HVN Presentation of Results for FY21

ARIARNE TITMUS

Australian Olympic

Gold Medalist

Tokyo 2020 Olympics

HARVEY NORMAN®

BRAND AMBASSADOR

BRENDEN HALL

Paralympian

YEAR-END RESULTS

P R E S E N T A T I O N

3 0 J U N E

2 0 2 1

Australia	Singapore	Ireland	Malaysia
New Zealand	Slovenia	Northern Ireland	Croatia

ISABELLA NICHOLS

WSL Surfer

YEAR-END RESULTS PRESENTATION 30 JUNE 2021	2

2021 Results	3
Key Financial Highlights	4-6
An Integrated Retail, 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
Franchisee Aggregated Sales Revenue	12
Franchising Operations Segment	13
Overseas Company-Operated Retail Segment	14-15
Property Segment	16
Freehold Property Portfolio	17
Leasehold Property Portfolio	18
Outlook	19-20
Questions	21

HOLDINGS LIMITED | ACN 003 237 545

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 billion

Increase of $1.263 billion from FY20

Improvement of

KEY FINANCIAL HIGHLIGHTS	4

EBITDA

$1.457bn UP

BY

FROM $944.67m in FY20

EBIT78.8%

		EBITDA	Excluding AASB 16 net impact and net
		property revaluations
			NET DEBT TO EQUITY RATIO
	$	$1.147bn		539
54.2%	BY	54.4%
Excluding AASB 16 net impact and net property revaluations.	UP
		1042bn
		FROM $742.47m in FY20			FRANCHISEES IN
	$635.60m in FY20 EBIT	property revaluations
			AUSTRALIA
			Excluding AASB 16 net impact and net

FIRST TIME OVER PBT $1bn

$1.059bn

BY 61.7%

$1.233bn

BY

71.0%

UP

UP

FROM $721.08m in FY20

FROM $654.86m in FY20

192

REPORTED PBT

PBT Excluding net property revaluations

UP BY

$661.29m in FY20

HNHL CONSOLIDATED REVENUES

25.2%

$1.183bn

$1.042bn

from $3.55bn in FY20

UPBY

78.8%

UPBY 66.4%

FRANCHISED COMPLEXES

FROM $661.29m in FY20

FROM $626.33m in FY20

IN AUSTRALIA

REPORTED PROFIT AFTER TAX & NCI

PROFIT AFTER TAX & NCI Excluding net property

$2.768bn

$

1.346bn

revaluations

75 1%

$743.12m

UP

$324.52m

UP

75.1%

$841.41m

BY

BY 63.0%

107

UP BY

FROM $480.54m in FY20

FROM $456.00m in FY20

14.1%

from $8.46bn in FY20

NET DEBT TO EQUITY: 7.47%

OFFSHORE COMPANY

OPERATED STORES

$6.95bn

UNUSED, AVAILABLE

$2.77bn

54.2

NET DEBT OF $295.54m vs NET CASH OF $15.35m in FY20

FINANCING FACILITIES OF

$193.96m

%

TOTAL SYSTEM

from 39.19c in FY20

NET ASSETS

BASIC EARNINGS

DIVIDENDS

SALES REVENUE

$3.893 billion

DIVIDENDS

PER SHARE

PER SHARE

3.89 b

BASIC EARNINGS

67.53c 67.53c

$

$9.721 billion

PER SHARE (FULLY FRANKED)

12.0% from $3.477bn at Jun-20

from 39.19c in FY20

35.0c

PER SHARE

from 24.0c in FY20

AGGREGATED HEADLINE FRANCHISEE

SALES REVENUE* ……………………………………$6.952bn

HNHL CONSOLIDATED REVENUES

$4.439 billion	SALES OF PRODUCTS TO CUSTOMERS…………………..…...$2.768bn
REVENUE RECEIVED FROM FRANCHISEES…...………..……...$1.346bn
REVENUES AND OTHER INCOME ITEMS…...…….……….….. $0.325bn

COMPANY-OPERATED SALES REVENUE ………..$2.768bn

*Sales made by franchisees in Australia do not form part of the financial

results of the consolidated entity.

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 million or +54.4%.
• Record reported earnings before interest & tax (EBIT) of $1.233 billion, up by $511.66 million or +71.0%.
• EBIT (excluding AASB 16 impact and net property revaluations) of $1.059 billion, up by $404.30 million or +61.7%.
• Record profit before tax (PBT) of $1.183 billion, up by $521.24 million or +78.8%, delivering a robust return on net assets of 30.4% for FY21 compared to 19.0% for FY20.
• PBT (excluding net property revaluations) of $1.042 billion, up by $415.82 million or +66.4%.
• Record net profit after tax and non-controlling interests (NPAT&NCI) of $841.41 million, up by $360.87 million or +75.1%.
• Effective tax rate of 28.39% for FY21, compared to an effective tax rate of 26.50% for FY20.
• NPAT&NCI (excluding net property revaluations) of $743.12 million, up by $287.12 million or +63.0%.
• Offshore company-operated retail profit result of $240.79 million, up by $88.72 million or +58.3%, amid government imposed lockdowns and restrictions to mobility.
• Solid earnings per share of 67.53 cents, up by +72.3% from 39.19 cents for FY20.
• Very strong balance sheet with total assets of $6.67 billion, up by $844.33 million or +14.5% primarily driven by organic growth from offshore store expansion and increases in the tangible freehold property portfolio.
• Net assets of $3.89 billion, up by $415.69 million, or +12.0%.