Trading As

1. Trading As

2. This presentation will review the annual report for Harvey Norman Holdings Limited Focussing on • Industry sector • Size • Compared to other businesses in sector • Position on Australian Stock Exchange (ASX) • Business activities • Store locations • Activities undertaken • Terminology used in Annual Report • Other sources of Information available

3. Retail Industry Sector The retail industry is made up of different areas ranging from motor vehicles and clothes through to food and consumables. Harvey Norman stores specialise in selling • Furniture / Bedding • Electrical goods • Whitegoods • Computers • Home entertainment • Photo developing And provide financing services

4. Retail Industry Comparison

5. Position on Stock Exchange Harvey Norman is a big company on the Australian Stock Exchange (ASX). Harvey Norman Facts • Listed as one of the top 50 companies in Australia in 2000, participating in the S&P/ASX50 when indices were introduced. • Currently listed as one of the top 100 companies in Australia, participating in the S&P/ASX100. • Currently participates in 10 indices on the ASX. (Greene, 2000), (Commonwealth Securities)

6. Store Locations 195 Franchised Stores in Australia 69 Company Owned Stores Overseas Nth. Ireland 2 Ireland 14 Slovenia 2 Malaysia 6 Singapore 14 Australia 195 New Zealand 31 (Harvey Norman, 2010a)

7. Activities undertaken (Harvey Norman, 2010a)

8. Terminology The following terms were used in the Annual Report:- Covered in Accounting: an introduction 4ed textbook Not covered in Accounting: an introduction 4ed textbook Impairment (Page 4) Dividend (Page 3, 10) Acquisition (Page 112) Shareholder (Page 30) Net cash flow (Page 10) Dividend (Page 10) Governance (Page 29) Gearing (Page 4) Margin (Page 6) Consolidate (Page 6, 8) Revenue (Page 8) Audit (Page 13) Eliminations (Page 112) Franchise (Page 3) Decrement (Page 3, 4) Remuneration (Page 13) Directors interests (Page 13) Code of Conduct (Page 29) Risk Management (Page 30) Threshold (Page 31) Joint Venture (Page 38) Reverse expired or realised cash flow hedge reserves (Page 38) Ineffective interest rate swaps (Page 38) (Harvey Norman, 2010a) (Atrill, McLaney, Harvey, Jenner 2009)

9. Reliable sources of information The Annual Report of a business is not the only reliable source of information on a business. The Annual Report is limiting, as it is a snapshot in time and is a general purpose report; its main use is to provide information to other users of the information, not for the day to day running of the business. Other reliable sources include:- • Other reports that are listed on ASX. • Prospectus. • Information from the company website (as they are legally responsible for the information)

10. Summary Harvey Norman is one of the “main players” in Australia’s furniture, electrical and computer sales section of the retail industry. Its business activities include franchising, retail sales, financing, property and share trading. Due to the size of the company it has a large and in-depth annual report using accounting terminology. Other reliable sources of information about the company include reports listed on the Australian Stock Exchange, and the company prospectus.

11. References Atrill, McLaney, Harvey, Jenner 2009. Accounting an introduction, Frenchs Forest, Pearson Education Australia. Betta Electrical. Franchise Opportunity [Online]. Available: http://www.betta.com.au/about-betta/franchise-opportunity.aspx [Accessed 7 May 2010]. Clive Peeters. Company Overview [Online]. Available: http://www.clivepeetersltd.com.au/Company-Overview.aspx [Accessed 7 May 2010]. Commonwealth Securities. Company Profile Harvey Norman; Announcements [Online]. Available: http://comres.comsec.com.au/CompanyProfice.asp?SecurityCode=HVN [Accessed 7 May 2010]. Domayne. Domayne Stores [Online]. Available: http://www.domayne.com.au/about-us [Accessed 7 May 2010]. Greene, G & Levine, C. 2000. Australian Stock Exchange and Standard and Poor's introduce the S&P/ASX indices [Online]. Available: http://203.15.147.66/about/pdf/CompanyIndex.pdf [Accessed 7 May 2010]. Ikea. Welcome to Ikea - store locations [Online]. Available: http://www.ikea.com/au/en/preindex.html [Accessed 7 May 2010]. JB Hi-Fi Limited. JB Hi-Fi Store Locations [Online]. Available: http://www.jbhifi.com.au/stores/ [Accessed 7 May 2010]. Joyce Mayne. Home Page [Online]. Available: http://www.joycemayne.com.au/ [Accessed 7 May 2010]. Kmart. The Kmart Story [Online]. Available: http://www.kmart.com.au/AboutKmart/TheKmartStory.aspx [Accessed 7 May 2010]. JB Hi-Fi Limited. 2003 Prospectus [Online]. Available: http://www.jbhifi.com.au/documents/reports/JB_Hi-Fi_Limited_Prospectus.pdf [Accessed 7 May 2010]. Myer. Myer Stores [Online]. Available: http://www.myer.com.au/stores.aspx [Accessed 7 May 2010]. Myer. 2010. Store Information [Online]. Available: http://www.myer.com.au/stores.aspx [Accessed 9 May 2010]. Harvey Norman. Home Page [Online]. Available: http://www.harveynorman.com.au/ [Accessed 7 May 2010]. Harvey Norman. 2010a. 2008-2009 Annual Report [Online]. Available: http://www.harveynormanholdings.com.au/annualreports.htm [Accessed 16 April 2010]. Harvey Norman. 2010b. Harvey Norman Company Profile [Online]. Available: http://www.harveynormanholdings.com.au/pdf_files/Company_Profile_2010.pdf [Accessed 16 April 2010]. Norman Ross. Home Page [Online]. Available: http://www.normanross.co.nz/ [Accessed 7 May 2010]. Retravision. About Retravision[Online]. Available: http://www.retravision.com.au/About.aspx [Accessed 7 May 2010]. Super A-mart. About Us [Online]. Available: http://www.superamart.com.au/home/inner.asp?pageID=63&mainID=71 [Accessed 7 May 2010]. The Good Guys. Store Locations [Online]. Available: http://www.thegoodguys.com.au/portal/page/portal/tggwebportal/corporate/storelocator [Accessed 7 May 2010].