Harvey Norman : Aggregated Sales for the 6 months ended 31 December 2021

Harvey Norman	A1 RICHMOND ROAD
HOMEBUSH WEST N.S.W. 2140
Holdings Limited	LOCKED BAG 2
SILVERWATER DC, N.S.W 1811
A.C.N. 003 237 545	Telephone: (02)	9201 6111
	Facsimile: (02)	9201 6250

25 February 2022

Australian Securities Exchange Limited

Exchange Centre

20 Bridge Street

SYDNEY NSW 2000

AGGREGATED SALES REVENUE FOR THE PERIOD

1 July 2021 to 31 December 2021 (1H22) vs

1 July 2020 to 31 December 2020 (1H21)

DOWN -6.3%

AGGREGATED SALES REVENUE FOR THE PERIOD

1 July 2021 to 31 December 2021 (1H22) vs

1 July 2019 to 31 December 2019 (1H20)

UP 17.8%

* Sales made by franchisees in Australia are not made by Harvey Norman Holdings Limited or its controlled entities.

The Directors of Harvey Norman Holdings Limited announce that the aggregated sales revenue from Harvey Norman® wholly-ownedcompany-operated stores in New Zealand, Slovenia, Croatia, Ireland and Northern Ireland, majority-owned controlled company-operated stores in Singapore and Malaysia, and from independent Harvey Norman®, Domayne® and Joyce Mayne® branded franchised complexes in Australia* (Aggregated Sales) decreased by 6.3%for the period 1 July 2021 to 31 December 2021 (1H22) when compared to Aggregated Sales for the period 1 July 2020 to 31 December 2020 (1H21). Comparable Aggregated Sales for 1H22 when compared to 1H21, decreased by 6.8%.

When compared to a more stable recent retail trading period in 1H20 (i.e. the period 1 July 2019 to 31 December 2019), Aggregated Sales for 1H22 increased by 17.8%relative to 1H20. Comparable Aggregated Sales for 1H22 when compared to 1H20, increased by 16.2%.

Australian franchisees were adversely affected with hard lockdowns throughout most cities and regions in New South Wales (NSW), Victoria (VIC) and the Australian Capital Territory (ACT) for a period of up to 4 months, representing retail closures of nearly 60% of the total number of Australian Harvey Norman®, Domayne® and Joyce Mayne® franchised complexes for the majority of 1Q22. These closures resulted in a reduction in franchisee sales by -16.5% in 1Q22 compared to 1Q21. Whilst express contactless click & collect and safe delivery to the home in-person was available, the mandatory retail closures and the 5 km limit to customer mobility affected the product categories that were unable to transact online, resulting in consumers deferring home furnishing purchases until the restrictions lifted. Franchisee sales rebounded during 2Q22 as the Delta restrictions progressively lifted from mid-October 2021, with the pent-up demand resulting in an acceleration in franchisee sales post lockdown. This momentum continued into the Christmas trading period despite the looming threat of 'Omicron' to close out 2Q22 only 1.7% down on the record 2Q21 sales achieved last year. Retail closures during 1H21 were not as widespread, limited to franchised complexes located in greater Melbourne, VIC for an 11-week period, representing less than 10% of the total number of Australian franchised complexes.

Offshore sales growth has moderated this half due to extensive hard lockdowns and nationwide closures in New Zealand and Malaysia during 1H22.

For 1H22, Aggregated Sales have been negatively affected by a 2.8% depreciation in the Euro (€), a 0.9% depreciation in the Singaporean dollar ($SGD) and a 2.1% depreciation in the Malaysian Ringgit (MYR) offset by a 2.3% appreciation in the New Zealand dollar ($NZD) and a 3.1% appreciation in the UK Pound (£GBP).

During 1H22, two new franchised complexes were opened in Australia located at Murwillumbah, New South Wales (opening delayed to September 2021 due to NSW lockdowns) and in Port Pirie, South Australia (opened 11 November 2021). One company-operated store was opened in Malaysia located at Pavilion Bukit Jalil, Kuala Lumpur on 3 December 2021.

1

Aggregated Sales increase / (decrease) in Australian Dollars $A - TOTAL SALES: 1 July 2021 to 31 December 2021 vs 1 July 2020 to 31 December 2020; and 1 July 2021 to 31 December 2021 vs 1 July 2019 to 31 December 2019

(% increases have been calculated in Australian Dollars $A)

COUNTRY	1Q22 vs.	2Q22 vs.	1H22 vs.	1Q22 vs.	2Q22 vs.	1H22 vs.
	1Q21	2Q21	1H21	1Q20	2Q20	1H20
	%	%	%	%	%	%
Australian Franchisees	(-16.5)	(-1.7)	(-8.7)	9.8	21.7	16.2
New Zealand	(-12.6)	8.0	(-1.3)	3.7	26.8	16.4
Slovenia & Croatia	0.9	15.2	8.2	27.9	19.1	23.0
Ireland	8.3	(-0.4)	2.9	79.2	48.0	59.0
Northern Ireland	8.3	(-6.7)	(-0.4)	27.9	14.5	20.2
Singapore	5.8	2.8	4.1	2.3	9.4	6.1
Malaysia	(-32.3)	6.6	(-12.0)	(-29.0)	16.8	(-5.6)
Total Increase /
(Decrease) % in	(-13.9)	0.2	(-6.3)	11.0	23.4	17.8
$AUD

Aggregated Sales increase / (decrease) in Australian Dollars $A - COMPARABLE SALES: 1 July 2021 to 31 December 2021 vs 1 July 2020 to 31 December 2020; and

1 July 2021 to 31 December 2021 vs 1 July 2019 to 31 December 2019

(% increases have been calculated in Australian Dollars $A)

Comparable sales growth has not been adjusted for the temporary closures mandated by each local government as a result of their COVID-19 Response. Refer to the tables of closure dates for each country in Appendix 1 and Appendix 2.

COUNTRY	1Q22 vs.	2Q22 vs.	1H22 vs.	1Q22 vs.	2Q22 vs.	1H22 vs.
	1Q21	2Q21	1H21	1Q20	2Q20	1H20
	%	%	%	%	%	%
Australian Franchisees	(-16.3)	(-1.3)	(-8.4)	11.0	22.1	17.1
New Zealand	(-13.1)	7.9	(-1.6)	2.4	25.2	14.9
Slovenia & Croatia	(-6.0)	11.2	2.8	19.1	11.9	15.0
Ireland	2.8	(-1.5)	0.1	62.2	33.7	43.7
Northern Ireland	8.3	(-6.7)	(-0.4)	27.9	14.5	20.2
Singapore	(-3.2)	0.7	(-1.0)	(-7.9)	(-2.0)	(-4.8)
Malaysia	(-40.8)	(-1.8)	(-20.5)	(-46.5)	(-1.9)	(-23.7)
Total Increase /
(Decrease) % in	(-14.8)	0.1	(-6.8)	9.8	21.4	16.2
$AUD

Aggregated Sales increase / (decrease) in Local Currencies - TOTAL SALES:

1 July 2021 to 31 December 2021 vs 1 July 2020 to 31 December 2020; and 1 July 2021 to 31 December 2021 vs 1 July 2019 to 31 December 2019

(% increases have been calculated in local currencies)

	COUNTRY				1Q22 vs.	2Q22 vs.		1H22 vs.		1Q22 vs.	2Q22 vs.		1H22 vs.
					1Q21	2Q21		1H21		1Q20	2Q20		1H20
					%	%		%		%	%	%
	Australian		$A		(-16.5)	(-1.7)		(-8.7)		9.8	21.7		16.2
	Franchisees
	New Zealand		$NZD	(-15.0)	6.1		(-3.6)		3.0	25.2	15.2
	Slovenia & Croatia		€Euro	2.8	19.6		11.4		29.3	22.8	25.6
	Ireland		€Euro	10.3	3.2		5.9		81.3	52.2	62.4
	Northern Ireland		£GBP	4.4	(-9.0)		(-3.4)		22.7	15.5	18.6
	Singapore		$SGD	7.0	3.4		5.0		7.9	16.1	12.2
	Malaysia		MYR	(-30.8)	8.8		(-10.2)		(-23.5)	25.6	1.5

2

Aggregated Sales increase / (decrease) in Local Currencies - COMPARABLE SALES: 1 July 2021 to 31 December 2021 vs 1 July 2020 to 31 December 2020; and

1 July 2021 to 31 December 2021 vs 1 July 2019 to 31 December 2019

(% increases have been calculated in local currencies)

Comparable sales growth has not been adjusted for the temporary closures mandated by each local government as a result of their COVID-19 Response. Refer to the tables of closure dates for each country in Appendix 1 and Appendix 2.

	COUNTRY				1Q22 vs.	2Q22 vs.		1H22 vs.		1Q22 vs.	2Q22 vs.		1H22 vs.
					1Q21	2Q21		1H21		1Q20	2Q20		1H20
					%	%		%		%	%	%
	Australian		$A		(-16.3)	(-1.3)		(-8.4)		11.0	22.1		17.1
	Franchisees
	New Zealand		$NZD	(-15.6)	6.1		(-3.8)		1.7	23.7	13.8
	Slovenia & Croatia		€Euro	(-4.3)	15.4		5.8		20.4	15.3	17.5
	Ireland		€Euro	4.7	2.0		3.0		64.1	37.5	46.8
	Northern Ireland		£GBP	4.4	(-9.0)		(-3.4)		22.7	15.5	18.6
	Singapore		$SGD	(-2.1)	1.4		(-0.2)		(-2.9)	4.0	0.7
	Malaysia		MYR	(-39.5)	0.3		(-18.8)		(-42.4)	5.5	(-18.0)

RETAIL TRADING UPDATE:

1 January 2022 to 21 February 2022 vs 1 January 2021 to 21 February 2021 and1 January 2022 to 21 February 2022 vs 1 January 2020 to 21 February 2020

Except for Ireland where sales were virtually flat, there has been sales growth in all countries for the period 1 January 2022 to 21 February 2022 against a strong prior comparable period for 1 January 2021 to 21 February 2021. When compared to a more stable recent retail trading period in 1 January 2020 to 21 February 2020, there has been solid sales growth by Australian franchisees and the company-operated stores in each overseas country.

The strengthening momentum in the home renovation market and heightened consumer demand since the start of the pandemic, continues to drive sales across key Home, Lifestyle and Tech product categories with the 'home' continuing to be the focal point for consumer spending.

Aggregated Sales increase / (decrease) from 1 January 2022 to 21 February 2022 vs 1 January 2021 to 21 February 2021 and 1 January 2022 to 21 February 2022 vs 1 January 2020 to 21 February 2020

(% increases have been calculated in Australian Dollars $A)

Comparable sales growth has not been adjusted for the temporary closures mandated by each local government as a result of their COVID-19 Response.

COUNTRY	1 January 2022 to 21 February 2022	1 January 2022 to 21 February 2022
		vs		vs
	1 January 2021 to 21 February 2021	1 January 2020 to 21 February 2020
	Total		Comparable	Total		Comparable
	%		%	%		%
Australian Franchisees	1.3		1.5	22.9		23.0
New Zealand	1.5		1.5	19.8		18.2
Slovenia & Croatia	21.2		21.2	11.6		3.3
Ireland	(-0.1)		(-0.3)	51.1		37.2
Northern Ireland	100.2		100.2	32.5		32.5
Singapore	9.2		9.2	13.3		1.6
Malaysia	8.7		4.5	18.1		2.1

3

Aggregated Sales increase / (decrease) from 1 January 2022 to 21 February 2022 vs 1 January 2021 to 21 February 2021 and 1 January 2022 to 21 February 2022 vs 1 January 2020 to 21 February 2020

(% increases have been calculated in local currencies)

Comparable sales growth has not been adjusted for the temporary closures mandated by each local government as a result of their COVID-19 Response

	COUNTRY				1 January 2022 to 21 February 2022		1 January 2022 to 21 February 2022
	(% increase					vs			vs
	calculated in local				1 January 2021 to 21 February 2021		1 January 2020 to 21 February 2020
	currencies)				Total		Comparable		Total		Comparable
				%		%		%		%
	Australian Franchisees	$A	1.3		1.5		22.9		23.0
	New Zealand	$NZD	1.2		1.2		23.1		21.4
	Slovenia & Croatia	€Euro	20.4		20.4		14.3		5.8
	Ireland	€Euro	(-0.7)		(-1.0)		54.8		40.5
	Northern Ireland	£GBP	87.6		87.6		4.9		4.9
	Singapore	$SGD	3.1		3.1		18.0		5.8
	Malaysia	MYR	4.6		0.6		26.9		9.7

This document was authorised to be provided to the ASX by the Board of Directors of Harvey Norman Holdings Limited.

Yours faithfully

Chris Mentis

Company Secretary / CFO

4

Appendix 1: TABLE 1 - COVID-19 Closures in Australia from 1 July 2021 to 31 December 2021:

The mandatory temporary COVID-19 closures imposed by each State Government in Australia from 1 July 2021 to 31 December 2021 are outlined below. Comparable sales in the previous corresponding period were not adjusted for the effect of these mandated temporary closures.

TABLE 1 AUSTRALIA: Government Mandated Temporary Closure Dates

1 July 2021 to 31 December 2021

Affected Product Category

Date

Date

Closed

Re-opened

Australian Franchised Complexes:

39 Franchised Complexes

All product categories in the 39 Harvey Norman®

16/07/21

28/07/21

and Domayne® franchised complexes across VIC

All product categories in the 17 Harvey Norman®

17 Franchised Complexes

and Domayne® franchised complexes in greater

06/08/21

29/10/21

Melbourne, VIC

22 Franchised Complexes

All product categories in the 22 Harvey Norman®

06/08/21

10/08/21

From

franchised complexes across regional VIC

21/08/21

10/09/21

1 Franchised Complex

All product categories in the Harvey Norman®

15/09/21

23/09/21

Franchised

franchised complex at Ballarat

Complexes in

All product categories in the 2 Harvey Norman®

Victoria (VIC)

2 Franchised Complexes

franchised complexes in the City of Greater

20/09/21

27/09/21

Geelong

3 Franchised Complexes

All product categories in the 3 Harvey Norman®

29/09/21

06/10/21

franchised complexes in the City of Latrobe

1 Franchised Complex

All product categories in the Harvey Norman®

01/10/21

09/10/21

franchised complex at Shepparton

1 Franchised Complex

All product categories in the Harvey Norman®

10/10/21

22/10/21

franchised complex at Mildura

Online Trade

Online permitted - all product categories

open

Furniture & bedding categories in the 10 Harvey

20/07/21

28/07/21

Franchised

10 Franchised Complexes

Norman® franchised complexes in SA

Complexes in

Computer & electrical categories in the 10 Harvey

South

21/07/21

23/07/21

Norman® franchised complexes in SA

Australia (SA)

Online Trade

Online permitted - all product categories

open

Furniture & bedding categories in the 29 Harvey

Norman®, Domayne® and Joyce Mayne®

franchised complexes across Sydney, Blue

18/07/21

11/10/21

Mountains, Central Coast, Wollongong &

29 Franchised Complexes

Shellharbour LGAs of NSW

Computer & electrical categories in the 29 Harvey

Norman®, Domayne® and Joyce Mayne®

franchised complexes across Sydney, Blue

24/07/21

11/10/21

Mountains, Central Coast, Wollongong &

Franchised

Shellharbour LGAs of NSW

Complexes in

All product categories in the 12 Harvey Norman®

From

From

New South

12 Franchised Complexes

and Domayne® franchised complexes within

05/08/21

11/09/21

Wales (NSW)

specific regional NSW LGAs

All product categories in the 30 Harvey Norman®,

30 Franchised Complexes

Domayne® and Joyce Mayne® franchised

From

From

complexes within the remaining regional NSW

15/08/21

11/09/21

LGAs

2 Franchised Complexes

All product categories in the 2 Harvey Norman®

16/09/21

23/09/21

franchised complexes at Albury and Lismore

1 Franchised Complex

All product categories in the Harvey Norman®

18/09/21

01/10/21

franchised complex at Young

5