Harvey Norman : Annual Report to shareholders

HARVEY NORMAN HOLDINGS LIMITED

A.C.N 003 237 545

30 September 2020

The Manager Announcements

Australian Securities Exchange Limited

Exchange Centre

20 Bridge Street

SYDNEY NSW 2000

Dear Sir

A1 RICHMOND ROAD HOMEBUSH WEST, N.S.W 2140 LOCKED BAG 2

SILVERWATER DC, NSW 1811

AUSTRALIA

Telephone: [phone]

Facsimile: [phone]

Pursuant to listing rule 4.5, we enclose a copy of the 2020 Annual Report for Harvey Norman Holdings Limited, for your attention.

We would appreciate if this Annual Report be treated as having been lodged with ASIC pursuant to section 317 of the Corporations Act 2001.

We confirm that this Annual Report is the same as those to be sent to shareholders.

We expect to have the printed Annual Report for posting to shareholders on 14th October 2020.

If you have any queries, please do not hesitate to contact the writer.

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

Yours faithfully

Chris Mentis

Chief Financial Officer / Company Secretary

ANNUAL REPORT

Australia	Singapore	Ireland	Malaysia
New Zealand	Slovenia	Northern Ireland	Croatia

ANNUAL REPORT

Contents
Results for Announcement	3
Chairman and CEO's Report	4
Operating and Financial Review	8
Directors' Report	31
Remuneration Report	36
Social and Environmental Sustainability	64
Auditor's Independence Declaration	74
Independent Auditor's Report	75
Directors' Declaration	81
Statement of Financial Position	82
Income Statement	83
Statement of Comprehensive Income	84
Statement of Changes in Equity	85
Statement of Cash Flows	87
Notes to the Financial Statements	88
Shareholder Information	149

KEY DATES:

28 August 2020: Announcement of Full-Year Profit to 30 June 2020 & Announcement of Final 2020 Dividend | 12 October 2020: Record date for

Determining Entitlement to Final 2020 Dividend | 2 November 2020: Payment of Final 2020 Dividend | 25 November 2020 at 11:00am: Annual General

Meeting of Shareholders | 26 February 2021: Announcement of Half-Year Profit to 31 December 2020 & Announcement of Interim 2021 Dividend

| 1 April 2021: Record date for Determining Entitlement to Interim 2021 Dividend | 4 May 2021: Payment of Interim 2021 Dividend

COMPANY INFORMATION

Registered Office: A1 Richmond Road, Homebush West NSW 2140. Ph: 02 9201 6111 Fax: [phone] | Share Registry: Boardroom Pty Limited, Level 12, 225 George Street, Sydney NSW 2000. Ph: 02 9290 9600 | Auditors: Ernst & Young (EY) | Securities Exchange Listing: Shares in Harvey Norman Holdings Limited (HVN) are quoted on the Australian Securities Exchange Limited (ASX) | Solicitors: Brown Wright Stein | Company Secretary: Mr. Chris Mentis

HARVEY NORMAN HOLDINGS LIMITED

ACN 003 237 545

2

RESULTS FOR ANNOUNCEMENT TO THE MARKET

HARVEY NORMAN® HOLDINGS LIMITED

REPORTED PBT					PBT
	Excluding AASB 16 net impact and net property revaluations
$661.29m			$635.60m
$86.73m ( 15.1%) FROM $574.56m IN 2019			$131.35m ( 26.0%) FROM $504.26m IN 2019
REPORTED PROFIT AFTER TAX & NCI			PROFIT AFTER TAX & NCI
	Excluding AASB 16 net impact and net property revaluations
$480.54m			$462.16m
$78.22m ( 19.4%) FROM $402.32m IN 2019		$109.08m ( 30.9%) FROM $353.09m IN 2019
EBITDA				EBITDA
	Excluding AASB 16 net impact and net property revaluations
$944.67m			$742.47m
$256.07m ( 37.2%) FROM $688.60m IN 2019			$124.18m ( 20.1%) FROM $618.30m IN 2019
EBIT					EBIT
	Excluding AASB 16 net impact and net property revaluations
$721.08m			$654.86m
$117.74m ( 19.5%) FROM $603.34m IN 2019			$121.82m ( 22.9%) FROM $533.04m IN 2019
NET DEBT TO EQUITY: NIL
					UNUSED, AVAILABLE
NET CASH OF $15.35m vs NET DEBT OF $626.47m in FY19		FINANCING FACILITIES OF
	$685m
AN IMPROVEMENT OF $641.83m
					AS AT 30 JUNE 2020

TOTAL SYSTEM SALES REVENUE

$8.46 billion AGGREGATED HEADLINE FRANCHISEE SALES REVENUE* . $6.16bn COMPANY-OPERATEDSALES REVENUE . . . . . . . . . $2.29bn

* Sales made by franchisees in Australia do not form part of the financial results of the consolidated entity.

HNHL CONSOLIDATED REVENUES

$3.55 billion SALES OF PRODUCTS TO CUSTOMERS . . . . . . . . $2.29bn REVENUE RECEIVED FROM FRANCHISEES . . . . $1,055.87m

REVENUES AND OTHER INCOME ITEMS . . . . . . . $195.00m

BASIC EARNINGS PER SHARE	DIVIDENDS PER SHARE
	39.19c			(FULLY-FRANKED)
	from 33.94c in 2019				24.0c
539				FRANCHISED		96
FRANCHISEES		194 IN AUSTRALIA		OFFSHORE COMPANY
	IN AUSTRALIA			COMPLEXES			OPERATED STORES

HARVEY NORMAN HOLDINGS LIMITED | ANNUAL REPORT JUNE 2020

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