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## Beneficial Interest 

Included in the above shareholdings are the following: 

 Mr. G. Harvey has a beneficial interest in 142,629,301 shares held by G Harvey Nominees Pty Limited. 

 Mr. I.J. Norman has a beneficial interest in 175,249,660 shares held by Dimbulu Pty Limited. 

 Ms. K.L. Page has a beneficial interest in 1,932,000 shares held by Page Option Trust in Pertama Holdings Limited and a beneficial interest in 300,000 shares held by K Page Pty Limited in Harvey Norman Holdings Limited. 

 Mr. C.H. Brown has a beneficial interest in 173,467 shares held by PWSD Pty Limited and Starmoro Pty Limited. 

 Mr. R.J. Skippen has a beneficial interest in 1,096,297 shares held by ANZ nominees. 

 Mr. A.B. Brew has a beneficial interest in 627,408 shares held by ANZ nominees. 

 Mr. S.P. Hauville has a beneficial interest in 202,446 shares held by Valmarl Pty Ltd and Hauville Superannuation Pty Ltd. He also has a beneficial interest in 975,000 Pertama Holdings Limited shares and 2,134 Rebel Sport Limited shares held by Valmarl Pty Ltd and Hauville Superannuation Pty Ltd. 

 Mr. K.W. Gunderson-Briggs has a beneficial interest in 3,000 shares held by Nosrednug Superannuation Fund Pty Limited. 

## Share Options 

Details of share options are set out in Note 26 of the financial statements and form part of this report. 

## Principal Activities 

The principal activities of the consolidated entity continue to be that of: 

 Franchisor 

 Sale of homewares and electrical goods in New Zealand, Slovenia and Ireland 

 Provision of consumer finance 

 Property investment 

 Lessor of premises to Harvey Norman franchisees and other third parties 

The consolidated entity holds a controlling interest in Pertama Holdings Limited (“Pertama”). Shares in Pertama are listed on the Stock Exchange of Singapore. The principal activities of Pertama are retail, wholesale and export sales of homewares and electrical goods. 

The consolidated entity holds a controlling interest in Rebel Sport Limited (“Rebel”). Shares in Rebel are listed on the Australian Stock Exchange. The principal activity of Rebel is the sale of sporting and leisure goods. 

## Results 

The net profit attributable to members of the parent entity for the financial year ended 30 June 2003 after income tax expense was $151.05 million. This represents an increase of 17.8% on the net profit after income tax expense attributable to members for the year ended 30 June 2002. 

## Dividends 

The directors recommend a fully franked dividend of 2.5 cents per share be paid on 5 December 2003 (total dividend, fully franked - $26,397,336). The following fully franked dividends of the parent entity have also been paid, declared or recommended since the end of the preceding financial year: 

<img src='content_image/49979.jpg'>

## Review of Group Operations 

The total equity of the consolidated entity for the year ended 30 June 2003 increased over the previous financial year due to the following: 

 Increased revenue from franchisees (excluding rent and interest received) 

 Increased rental from tenants 

 Revaluation of the group property portfolio 

 Increased profit from Harvey Norman New Zealand owned stores 

 Increased profit from Pertama Holdings Limited in Singapore 

 Increased profit from Rebel Sport Limited 

Net profit attributable to members of the parent entity for the year ending 30 June 2003 increased by 17.8% over the previous year, due to increased revenue from franchise fees, improved trading conditions experienced by franchisees, increased profit from Harvey Norman New Zealand owned stores, increased profit from Pertama Holdings Limited in Singapore and increased profit from Rebel Sport Limited. 

