Shao-Lun Lu, Ying Jiang, Jiazi Cui Presented: May 1, 2014

1. Company Overview 2. Relevant Macroeconomic Trends 3. Industry Structure Analysis 4. Financial Analysis 5. Projections/Assumptions 6. Valuation 7. Recommendation AGENDA

 Incorporated in Atlanta in  3266 employees.  Market Cap : 750 million.  Business: residential furniture and accessories.  Customers: college educated women in middle to upper-middle income households.  Positioning: fashion and middle to upper-middle price ranges.  Channel: retail store and internet.  Marketing:  - Internet and Social Media.  - Bright inspiration ( ). COMPANY OVERVIEW Source: HVT 10-K report & FOURTH QUARTER AND YEAR 2013 report

PRODUCTS Living Room Dining Room Bed Room

Source: HVT 10k. 119 stores serving 80 cities in 16 states with approximately 4.3 million retail square feet. HVT DISTRIBUTION SYSTEM

NamePostitionAgeWork Period Clarence H SmithChairman/ CEO Dennis L FinkVP/CFO Steven G BurdetteVP: Stores Allan J DeniroVP:HR Thomas P CurranVP:Marketing Source: Bloomberg MANAGEMENT INFOMATION

INDUSTRY OVERVIEW Source: Bloomberg

 U.S. furniture & floor coverings market value Source: MarketLine Industry Profile Furniture & Floor Coverings in the United States INDUSTRY OVERVIEW

Source: Bloomberg

Customer loyalty High efficient Distribution Channels Social media Strengths Focus only on U.S. market. Most stores are in Florida, not diversified enough. Weaknesses Global market Opportunities Governmental regulations. Intensive Competitions Threats SWOT ANALYSIS

PORTER’S FIVE FORCES Bargaining Power of Suppliers High Bargaining Power of Customers Med-High Threats of Substitutes Median New Entrants Threats High Competitive Rivalry within Industry Med-High

STOCK PERFORMANCE Source: Yahoo Finance

FINANCIAL ANALYSIS Source: HAVERTY FURNITURE COMPANIES, INC K, k, k K, lBloomberg Revenue Growth Rate keep growing Sales for 2011 were virtually flat with 2010 FY 2012, the number of stores increased

FINANCIAL ANALYSIS Source: HAVERTY FURNITURE COMPANIES, INC K, k, k K, lBloomberg

FINANCIAL ANALYSIS Source: HAVERTY FURNITURE COMPANIES, INC K, k, k K, lBloomberg

FINANCIAL ANALYSIS Source: HAVERTY FURNITURE COMPANIES, INC K, k, k K, lBloomberg

COMPARABLE Source: HAVERTY FURNITURE COMPANIES, INC K,.. Bloomberg

COMPARABLE Source: HAVERTY FURNITURE COMPANIES, INC K, k, k K, lBloomberg

COMPARABLE Source: HAVERTY FURNITURE COMPANIES, INC K, k, k K, lBloomberg

Source: Havertty Inc K, REVENUE FORECAST

Source: Haverty Inc K, Bloomberg COST OF CAPITAL

Source: Haverty Inc K, Haverty Inc K VALUATION-DCF

IMPLIED SHARE PRICE Current Stock Price: $25.54

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