HALF-YEAR RESULTS PRESENTATION

31 DECEMBER 2020

HOLDINGS LIMITED | ACN 003 237 545

HALF-YEAR RESULTS PRESENTATION 31 DECEMBER 2020

HOLDINGS LIMITED | ACN 003 237 545

Table of Contents

Key Financial Highlights 3-4

Group Results for 1H21 5

An Integrated Retail, Franchise, Property & Digital Strategy 6

Key Statistics: Balance Sheet 8

Review of the Balance Sheet 9

Review of the Statement Cash Flows 10

System Sales Revenue 11

Australian Franchisee Aggregated Sales Revenue 12

Franchising Operations Segment 13

Offshore Achievements for 1H21 14

Overseas Company-Operated Retail Segment 15-16

Property Segment 17

Freehold Property Portfolio 18

Leasehold Property Portfolio 19

Outlook 20

Questions 21

Hornsby, NSW Franchised Complex

KEY FINANCIAL HIGHLIGHTS

3

HARVEY NORMAN HOLDINGS LIMITED

REPORTED PBT

$643.91m

UP BY

FROM $301.15m IN 1H20

113.8%

PBT

Excluding AASB 16 net impact and net property revaluations

$610.22m

UP BY

113.5%

FROM $285.87m IN 1H20

REPORTED PROFIT AFTER TAX & NCI

$462.03m

UP BY

FROM $213.59m IN 1H20

EBITDA

$779.84m

UP BY

FROM $443.13m IN 1H20

EBIT

$668.95m

UP BY

FROM $332.39m IN 1H20

116.3%

PROFIT AFTER TAX & NCI

Excluding AASB 16 net impact and net property revaluations

$438.17m

UP BY

115.8%

FROM $203.04m IN 1H20

76.0%

EBITDA

Excluding AASB 16 net impact and net property revaluations

$659.31m

UP BY

93.0%

FROM $341.54m IN 1H20

101.3%

EBIT

Excluding AASB 16 net impact and net property revaluations

$614.83m

UP BY

107.5%

FROM $296.37m IN 1H20

INTERIM DIVIDENDS

NET ASSETS $3.74 billion

13.9% FROM $3.28bn IN DEC 19

BASIC EARNINGS PER SHARE

37.08c

FROM 17.70c IN 1H20

PER SHARE

(FULLY FRANKED)

20.0c

$2.34 billion

COMPANY-OPERATED SALES REVENUE . . . . . . . . . . . . . . . . . . . . . . . . . . $1.47bn

UP BY

27%

REVENUE RECEIVED FROM FRANCHISEES . . . . . . . . . . . . . . . . . . . . . $742.07m

FROM $1.84 billion IN 1H20

REVENUES AND OTHER INCOME ITEMS . . . . . . . . . . . . . . . . . . . . . . . $123.70m

HNHL CONSOLIDATED REVENUES

539

FRANCHISEES IN AUSTRALIA

194

FRANCHISED COMPLEXES

IN AUSTRALIA

107

OFFSHORE COMPANY

OPERATED STORES

$5.23 billion

UP BY 24.8%

FROM $4.19 billion IN 1H20

Comprised of aggregated Franchisee sales in Australia plus company-operated sales in New Zealand, Slovenia, Croatia,

Ireland, Northern Ireland, Singapore and Malaysia:

AGGREGATED HEADLINE FRANCHISEE SALESREVENUE* ........................ $3.76bn COMPANY-OPERATED SALES REVENUE . . . . . $1.47bn

* Sales made by franchisees in Australia do not form part of the financial results of the consolidated entity.

TOTAL SYSTEM SALES REVENUE

KEY FINANCIAL HIGHLIGHTS (continued)

4

RECORD FINANCIAL ACHIEVEMENT

Reported profit before tax (PBT) of $643.91m, up by $342.76m or +113.8% from 1H20.

Franchising operations segment revenue of $689.27m up by $245.46m or +55.3% from 1H20.

1H21 offshore company-operated retail revenue of $1.39bn, up by $242.72m or +21.1%.

PBT (excluding net property revaluations & AASB 16) of $610.22m, up by $324.36m or +113.5% from 1H20.

Franchising operations segment result of $383.96m up by $260.10m or +210.0%.

1H21 offshore company-operated retail result of $138.15m, up by $56.46m or +69.1%.

Aggregated headline franchisee sales revenue totalled $3.76bn, up by +27.3% in 1H21 vs 1H20.

Franchising operations margin of 10.22% for 1H21, up by 603 bps from a margin of 4.19% for 1H20.

SOLID BALANCE SHEET

Robust balance sheet with total assets of $6.26bn, including tangible freehold property assets of $3.10bn.

Net assets of $3.74bn up by +13.9% from Dec-19.

Net debt to equity: NIL in Dec-20 vs. 16.57% in Dec-19.

Positive net cash position of $21.75m (cash net of interest-bearing loans and borrowings) at the end of 1H21 vs. a net debt position of $553.23m at the end of 1H20.

Net cash flows from operating activities of $391.95m for 1H21, up $93.18m or +31.2%, from $298.77m for 1H20.

Earnings per share of 37.08 cents, up by +109.5% from 17.70 cents for 1H20.

PROPERTY

194 franchised complexes in Australia and 107 company-operated stores overseas.

$3.10bn property portfolio, consisting of freehold investment properties, owner-occupied land and buildings in New Zealand, Singapore, Slovenia, Ireland and Australia, joint venture assets and assets held for resale.

$1.16bn right-of-use assets, consisting of leases of owner-occupied properties of $528.26m, and leases of properties sub-leased to external parties of $631.35m.

12 new company-operated stores opened during 1H21 as planned.

1 new premium-format Harvey Norman® franchised complex opened at Hornsby, NSW (Oct-20).

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Harvey Norman Holdings Ltd. published this content on 26 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 February 2021 02:40:02 UTC.