Trading As

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

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 developingAnd provide financing services

Retail Industry Comparison

Retravision

Harvey Norman

K-mart

Betta Electrical

JB HiFi

The Good Guys

Myer

Clive Peeters

Super A-mart

Ikea

0 50 100 150 200 250 300 350 400

(Based on number of stores in Australia)

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)

Store Locations

Nth. Ireland 2Ireland 14

Slovenia 2

Malaysia 6

Singapore 14Australia 195New Zealand 31

195 Franchised Stores in Australia69 Company Owned Stores Overseas

(Harvey Norman, 2010a)

Activities undertaken

Finan-cial Ser-

vices; $7,159

Retail Sales; $1,446,404

Prop-erty;

$155,453

Share Trading; $1,884

Franchisor; $914,743

Segment Result $000

(Harvey Norman, 2010a)

TerminologyThe 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)

Reliable sources of informationThe 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)

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.

ReferencesAtrill, 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].