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

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

3.  Incorporated in Atlanta in 1885.  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 (2010-2015). COMPANY OVERVIEW Source: HVT 10-K report & FOURTH QUARTER AND YEAR 2013 report

4. PRODUCTS Living Room Dining Room Bed Room

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

6. NamePostitionAgeWork Period Clarence H SmithChairman/ CEO632002- Dennis L FinkVP/CFO621993- Steven G BurdetteVP: Stores521993- Allan J DeniroVP:HR602004- Thomas P CurranVP:Marketing611988- Source: Bloomberg MANAGEMENT INFOMATION

7. INDUSTRY OVERVIEW Source: Bloomberg

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

9. Source: Bloomberg

10. 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

11. 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

12. STOCK PERFORMANCE Source: Yahoo Finance

13. FINANCIAL ANALYSIS Source: HAVERTY FURNITURE COMPANIES, INC.2013 10-K,. 2012 10-k, 2011 10-k2010 10-K, 2009 10-lBloomberg Revenue Growth Rate keep growing Sales for 2011 were virtually flat with 2010 FY 2012, the number of stores increased

14. FINANCIAL ANALYSIS Source: HAVERTY FURNITURE COMPANIES, INC.2013 10-K,. 2012 10-k, 2011 10-k2010 10-K, 2009 10-lBloomberg

15. FINANCIAL ANALYSIS Source: HAVERTY FURNITURE COMPANIES, INC.2013 10-K,. 2012 10-k, 2011 10-k2010 10-K, 2009 10-lBloomberg

16. FINANCIAL ANALYSIS Source: HAVERTY FURNITURE COMPANIES, INC.2013 10-K,. 2012 10-k, 2011 10-k2010 10-K, 2009 10-lBloomberg

17. COMPARABLE Source: HAVERTY FURNITURE COMPANIES, INC.2013 10-K,.. Bloomberg

18. COMPARABLE Source: HAVERTY FURNITURE COMPANIES, INC.2013 10-K,. 2012 10-k, 2011 10-k2010 10-K, 2009 10-lBloomberg

19. COMPARABLE Source: HAVERTY FURNITURE COMPANIES, INC.2013 10-K,. 2012 10-k, 2011 10-k2010 10-K, 2009 10-lBloomberg

20. Source: Havertty Inc. 2013 10-K, REVENUE FORECAST

21. Source: Haverty Inc. 2013 10-K, Bloomberg COST OF CAPITAL

22. Source: Haverty Inc. 2013 10-K, Haverty Inc. 2010 10-K VALUATION-DCF

24. IMPLIED SHARE PRICE Current Stock Price: $25.54

25. RECOMMENDATION 25 Watch List