HOLDINGS LIMITED

Presentation of Results for the Year Ended

30 June 2012 For personal use only use personal For HOLDINGS LIMITED

1. Omni-Channel Strategy 2. Franchisee Sales Revenue 3. Strategic Advantages of Our Integrated Retail, Franchise, Property & Digital Operations 4. Net Assets 5. Key Financial Highlights 6. Review of the Income Statement for the year ended 30/06/12 7. Review of the Balance Sheet as at 30/06/12 8. Review of the Statement of Cash Flows 9. Segment Analysis 10. Outlook 11. Questions (limited to 30 minutes)

12. Appendix 1: Selection of Properties as at 30 June 2012 For personal use only use personal For

2 OmniOur Omni-Channel Channel Strategy Strategy HOLDINGS LIMITED

• Our Omni Channel strategy is the backbone of the business and we have made strong progress throughout the year. • With the successful launch of new online sites in both Australia and throughout 2012, we continue to build on our Omni Channel capability. • We have made further enhancements through mobile capability & improved functionality in response to ongoing customer feedback. • Launched m-Commerce in August 2012. • Online sales are performing to our initial expectations and, whilst low, our digital platform has been established for the future. • Our digital, store & distribution centre channels are fully integrated with consumers supporting our buy online, pick-up in-store capability. • Our “Customer First” system which receives and manages communications from consumers across all channels as well as providing the workflow for our online sites has been a very good development throughout 2012. • Our Omni Channel strategy requires that we provide our franchisees with tactical support, when & where necessary. • We continue to develop, support & invest in the skills of our franchisees as well as the information tools of the company for the future. With the natural progression of consumers

For personal use only use personal For being more connected, our aim is to continually provide a consistent and quality experience to all , Domayne and Joyce Mayne customers with a clear focus on our channels & our capability within them.

3 Franchisee Sales Revenue HOLDINGS LIMITED

Global Sales $AUD . Sales from the franchised “Harvey Norman” complexes, commercial divisions & other sales outlets in Australia, New Zealand, Slovenia, Croatia, Ireland & Northern Ireland (excluding Singapore)(“Global Sales”) totalled $5.74 billion for the year ended 30 June 2012. . 7.0% decrease from PY . 6.5% like-for-like decrease from PY

Global Sales Increase / (Decrease) %

Sales Growth (%)

Total (%) Like-for-Like (%)

FY Jun-12 1Q12 2Q12 3Q12 4Q12 FY Jun-12

Australia $A (-8.1%) (-2.8%) (-9.5%) (-7.7%) (-7.3%) (-7.0%) New Zealand $NZ (-4.0%) (-10.6%) 2.3% (-7.9%) (-3.0%) (-4.7%) Slovenia / Croatia € Euro 35.4% (-8.9%) (-19.3%) (-5.0%) (-4.7%) (-10.4%)

Ireland € Euro 6.3% (-0.5%) 10.0% 1.3% 13.5% 6.3% For personal use only use personal For Nth. Ireland £ Pound 2.0% (-11.1%) 1.8% 9.3% 11.5% 2.0% TOTAL in $A (-7.0%) (-3.8%) (-8.0%) (-7.5%) (-6.1%) (-6.5%)

4 FranchiseeFranchisee Trading Sales Revenue Performance HOLDINGS LIMITED

. 2012 proceeded to be the most challenging year due to unprecedented price & margin deflation in our television & devices categories.

. Demise of WOW Sight & Sound (turnover estimated to be approx. $225 million p.a.), closure of numerous Retravision stores & restructure of Dick Smith brand (resulting in a Dick Smith provision of $420 million) created a glut of product being sold at never before seen prices.

. We continue to see good growth in the stores located near the mining areas of WA, QLD & the Hunter Valley in NSW. The capital cities of Sydney, Melbourne & Brisbane are not yet seeing the flow-on effects of the mining boom but our franchisees are well-placed when that happens.

. Home appliances, furniture and bedding remain stable and the businesses are well-placed for any upturn in housing starts.

. Our franchisees will continue to innovate, invest and improve their product offering, online

channel, staff training and strategic category enhancements. For personal use only use personal For

5 Strategic Advantages of Our Integrated Retail, Franchise, Property & Digital Operations HOLDINGS LIMITED Our Omni Channel strategy, incorporating our integrated retail, franchise, property & digital operations, provides strategic advantages over our competitors including:

1. The ability to diversify the product offering within the franchising operations segment to focus on more profitable product categories. Unlike many of our competitors that are solely exposed to the challenging AV/IT category, we operate in a number of different product categories that continue to perform solidly. The flexibility of our franchising operations segment allows us to diversify and tailor the product offering of our franchisees towards the more profitable Homemaker categories.

2. A strong and unique balance sheet underpinned by real, tangible property assets. As at balance date, we have a total asset base of approximately $4 billion which is inclusive of a property portfolio valued at $2.12 billion. Our strong balance sheet affords quick access to capital and the ability to seize opportunities in the marketplace as they arise. Property ownership offers the distinct advantage of a reliable income stream in an uncertain retail climate.

3. Our strong asset position and prudent management of working capital allows us to conservatively manage our debt levels. Whilst a cautious level of investment in our system is necessary to maintain and grow market share, our debt to equity ratio remains low at 34.16%

and our net debt to equity ratio is 26.60%. For personal use only use personal For

4. Our digital, store & distribution centre channels are fully integrated with consumers supporting our buy online, pick-up in-store capability. 6 NetNet Assets (5(5 Years) Years) HOLDINGS LIMITED

Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Net Assets* $1.90bn $2.01bn $2.10bn $2.19bn $2.24bn Rate of increase from PY 12.2% 5.6% 4.8% 4.3% 1.9% Real Property Assets $1.68bn $1.82bn $1.88bn $2.04bn $2.12bn Rate of increase from PY 19.1% 8.1% 3.1% 8.9% 3.6%

* exclusive of non-controlling interests

. we have MORE THAN DOUBLED our net asset base in 8.5 years . our net assets were $0.97 billion in Jun-2003 vs $2.24 billion in Jun-2012 . included in net assets are real property assets of $2.12 billion valued at fair market value as at Jun-12 . we have a real, tangible asset base as opposed to many of our competitors whose asset value lies

in intangibles such as goodwill, brand names & trademarks For personal use only use personal For

7 Key Financial Highlights HOLDINGS LIMITED

FY June 12 FY June 11 Mvmt on PY

EBIT (excluding property revaluations) $301.86m $401.46m down 24.8% EBIT Margin %1 12.2% 14.9% -270 bps

PBT (including property revaluations) $227.41m $373.94m down 39.2% NPAT 2 $172.47m $252.26m down 31.6% NPAT Margin %1 6.9% 9.4% -250 bps Net Assets 3 $2.24bn $2.19bn up 1.9% Net Debt to Equity % 26.60% 21.87% Dividends Per Share 9.0c 12.0c EPS 16.24c 23.75c down 31.6%

1 EBIT & NPAT Margins are calculated on Total Revenues 2 FY only use personal For June 12 NPAT (NPAT = net profit after tax & non-controlling interests) has been affected by a lower tax charge in the current year resulting from the Advanced Pricing Arrangement with the ATO and the reversal of future tax liabilities previously recognised on certain pre-CGT properties 3 Net Assets is after the exclusion of non-controlling interests primarily relating to Singapore 8 Review of the Income Statement HOLDINGS LIMITED

Revenue Items FY June 12 FY June 11 Mvmt on PY Sales Revenue $1,407.34m $1,556.38m down 9.6% Gross Profit $381.98m $426.87m down 10.5% Revenues & Other Income $1,061.23m $1,122.46m down 5.5%

Sales Revenue . the reduction in CP & RH sales by $145.25 million following the restructure of the CP & RH businesses ↓ by $149.04m due resulting in the closure of 7 stores in Aug-11 and the conversion of 18 CP & RH stores to the franchised to: model in the first half of 2012 . lower sales in NZ by $13.64 million due to store closures in (natural disasters in early 2011), severe price deflation & intense discounting in the AV/IT category & the subdued NZ economy Offset by: . opening of the 1st Croatian store in Zagreb in Oct-11 contributing $15.75M sales for the year . higher sales in Slovenia due to the new store at Maribor & a full year’s trading of the Novo Mesto store Gross Profit . price deflation in key categories, aggressive local & overseas competition & heavy discounting ↓ by $44.88m due to: . continue to grow or at least maintain market share in key categories in overseas markets Revenues & Other . revenue received from franchisees down by $43.40m due to 4.9% decline in franchise sales revenue Income ↓ by [$4.83bn in FY12 vs $5.08bn in FY11] attributed to deflationary headwinds (particularly in AV/IT), a high $61.23m due to: Australian dollar limiting growth in non-mining related sectors & heavy discounting by competitors . investment property & JV revaluation increment of $15.46m recognised in FY11 vs a revaluation

decrement of $27.77m in FY12 (recorded in expenses) For personal use only use personal For . decline of $10.20m in the market value of listed public securities relative to PY Offset by: . increased rental income & interest from other third parties by $7.96m . revaluation increment for a store in Slovenia of $2.78m to reverse a previous decrement 9 Review of the Income Statement HOLDINGS LIMITED

Expenses & Profit FY June 12 FY June 11 Mvmt on PY Total Expenses ($1,227.04m) ($1,193.44m) up 2.8% Share of JV investments $11.24m $18.05m down 37.7% Profit Before Tax $227.41m $373.94m down 39.2% Income Tax Expense ($51.09m) ($114.32m) down 55.3% Non-Controlling Interests ($3.84m) ($7.37m) down 47.8% Profit After Tax & NCI $172.47m $252.26m down 31.6%

Total Expenses ↑ by . a higher level of tactical support by $63.82m to assist franchisees to manage a challenging retail $33.60m due to: environment & effectively compete in their local markets . revaluation decrement for Australian investment properties of $25.26m . restructuring and closure costs associated with the impaired CP & RH brand names of $8.07m . higher borrowing costs by $6.47m due to increased utilisation of external facilities & the modification of the Syndicated Facility Agreement during the year Share of JV profit ↓ . JV revaluation decrement of $2.51m in FY12 vs increment of $0.16m in FY11 by $6.81m due to: . profit on sale of a development property held by a JV entity of $7.34m in PY Lower tax charge by . reduction in FY12 profit before tax translating to a decrease in tax liability by ~ $40m

$63.22monly use personal For due to: . tax benefit of $16.29m associated with treatment of support payments to Ireland & Nth. Ireland during 2010, 2011 & 2012 as agreed under the terms of an Advance Pricing Agreement with the ATO dated 6 Feb 2012 . tax benefit of $6.31m for the reversal of future tax liabilities previously recognised on certain pre-CGT properties 10 Review of the Balance Sheet (5 Years) HOLDINGS LIMITED

June 08 June 09 June 10 June 11 June 12 Total Assets $3.37bn $3.66bn $3.70bn $4.00bn $3.95bn Return on Total Assets % 10.65% 5.86% 6.25% 6.30% 4.36% Total Liabilities $1.42bn $1.60bn $1.55bn $1.78bn $1.68bn Net Assets $1.95bn $2.06bn $2.16bn $2.23bn $2.27bn

Total Assets . steady increase in total assets over the above 5-year period . small reduction in total assets in Jun-12 due to the property revaluation decrement recorded during the year, the restructure of the CP & RH businesses & FX deterioration reducing the value of assets in Ireland & Slovenia upon translation to AUD . strength of the asset base is in the ownership of real, tangible property assets comprising $2.12bn in Jun-12 . balance sheet not clouded by intangible assets pinned to the “underlying worth” of the business . solid cash reserves of $172.46m as at Jun-12 ($140.09m net of bank overdraft) Total Liabilities . reduction of $90.61m in total liabilities from Jun-11 to Jun-12 attributed to the reduction in franchisee trade creditors due to more effective inventory & working capital management & the restructure of the CP & RH businesses offset by an increase in interest-bearing liabilities following increased utilisation of external financing facilities . despite higher utilisation of facilities, debt levels remain low and gearing ratios continue to be

For personal use only use personal For conservative . rise in total liabilities over the 5-year period is slower than the growth in total assets Net Assets We have MORE THAN DOUBLED our net asset base in 8.5 years

11 Review of the Balance Sheet: Net Debt to Equity Ratio (%) HOLDINGS LIMITED

June 08 June 09 June 10 June 11 June 12 TOTAL DEBT $566.94m $586.68m $501.17m $651.76m $779.35m

Less: CASH RESERVES ($64.66m) ($157.91m) ($157.24m) ($162.78m) ($172.46m) NET DEBT $502.28m $428.77m $343.93m $488.98m $606.89m TOTAL EQUITY* $1.95bn $2.06bn $2.16bn $2.24bn $2.28bn Net Debt to Equity Ratio % 25.80% 20.82% 15.94% 21.87% 26.60%

* excluding acquisition reserve Net Debt To Equity Ratio

26.60% 25.80% 21.87% 20.82%

15.94% For personal use only use personal For

Jun-2008 Jun-2009 Jun-2010 Jun-2011 Jun-2012

12 Review of the Statement of Cash Flows HOLDINGS LIMITED

FY June 12 FY June 11 Mvmt on PY Operating Cash Flows $200.95m $358.97m down 44.0%

Operating cash 1) Reduction in net receipts from franchisees by $180.33m due to the following: flows ↓ by . lower revenue received from franchisees by $43.40m (franchise fees & interest) due to difficult retail $158.03m due trading conditions to: . a higher net outflow by the franchisor for working capital advances to franchisees by $135.55m relative to PY primarily due to a lower rate of reduction in franchisee loan balances from reduced cash receipts from franchisee sales & a higher level of tactical support provided to franchisees which offset the reduced outflows from more effective inventory & working capital management . the aggregate amount of tactical support for the current year was $124.19 million compared to $60.37 million for the previous year, an increase of $63.82 million. 2) Reduction in receipts from customers by $171.65m due to conversion of CP & RH businesses from company operated stores to franchised stores during the year & lower sales by NZ stores 3) Higher payments for GST by $11.67m & interest by $6.30m & lower distributions received from JV’s by $24.57m (PY included proceeds from sale of a development property) 4) Offset by: . lower payments to supplier & employees by $165.16m despite heavy investment in our Omni-channel of For personal use only use personal For approximately $30.40m during the year (digital, on-line, photo centres, software on-demand kiosks, E- commerce & wireless); . lower income tax payments by $69.91m due to lower profits generated & tax benefit of support payments to Ireland & Nth. Ireland 13 Review of the Statement of Cash Flows HOLDINGS LIMITED

FY June 12 FY June 11 Mvmt on PY Investing Cash Flows ($171.07m) ($345.24m) down 50.4% Financing Cash Flows ($8.51m) $4.09m down 308.2% Net Increase in Cash Flows $21.36m $17.82m up 19.9% Cash & Cash Equivalents At Beginning of the Year $118.73m $100.91m Cash & Cash Equivalents At End of the Year $140.09m $118.73m up 18.0%

Investing cash flows . prior year included the payment of $55m for the purchase of the CP & RH assets ↓ by $174.17m due . reduction in payments for investment properties by $84.08m as the prior period included several large to: property acquisitions including the At Home Centre at Penrith & extensive costs for the construction of the Springvale development & the Space Asian showroom in Singapore . decrease in payments for purchase of equity investments as PY balance included capital

For personal use only use personal For contributions for a mining camp JV in Queensland of $4.76m Financing cash . down due to lower rate of increase in the utilisation of the Syndicated Facility & other external flows ↓ by $12.60m debt relative to PY due to: . reduction in dividends paid by HNHL by $21.25m 14 Segment Analysis: Franchising Operations Segment HOLDINGS LIMITED

Franchising Operations FY June 12 FY June 11 Mvmt on PY Segment Revenue $858.01m $938.93m down 8.6% Segment EBITDA $202.81m $332.46m down 39.0% Segment Result Before Tax $126.98m $254.59m down 50.1% Franchising Operations Margin % 2.63% 5.01% -238 bps

FO segment . lower franchise fees received due to tough retail trading conditions experienced by franchisees, price revenue ↓ by deflation particularly in AV/IT categories & aggressive competition & discounting $80.92m due to: . reduction partially offset by the conversion of 18 former CP & RH stores to the franchised model & the opening of 4 new franchised complexes during the year . comprises 34.6% of total revenue for FY12 (FY11: 34.8%) FO segment EBITDA . profitability of franchisees adversely affected by falling product margins (price deflation and heavy ↓ by $129.65m due discounting) resulting from their attempt to maintain & grow market share to: . a higher level of tactical support payments made to franchisees during the year to enable them to effectively compete in their local markets . the aggregate amount of tactical support provided to franchisees was $124.19 million in the current year compared to $60.37 million in the previous year

. comprises 55.1% of total EBITDA for FY12 (FY11: 65.4%) For personal use only use personal For FO segment result . lower funding costs allocated to the FO segment in FY12 despite higher total funding costs in FY12 due before tax ↓ by to a reduction in FO segment assets (lower utilisation of debt by the FO segment) $127.61m . reduction in FO depreciation expense in FY12 due to fully-depreciated assets . comprises 55.8% of consolidated profit before tax for FY12 (FY11: 68.1%) 15 Segment Analysis: Total Property Segments HOLDINGS LIMITED

Total Property** FY June 12 FY June 11 Mvmt on PY Segment Revenue $205.43m $174.53m up 17.7% Revaluation Increment/(Decrement) ($24.99m) $15.46m down 261.7% Segment EBITDA $116.53m $136.55m down 14.7% Segment Result Before Tax $84.44m $112.02m down 24.6%

** refer to Appendix 1 for an analysis of selected properties within the Harvey Norman Property Portfolio

Property segment . rent & outgoings received from owned properties in Australia increased by $13.79m revenue ↑ by . recognition of property development income of $10.00m on the successful completion & opening of $30.90m due to: the Springvale development . reversal of a previous revaluation decrement relating to a property in Slovenia of $2.78m . recognition of $1.78m in rental income following the opening of the flagship Space showroom in Singapore . comprises 8.3% of total revenue for FY12 (FY11: 6.5%) Property segment . increase in property-related expenses proportional to the rise in property revenue EBITDA ↓ by $20.02m . revaluation decrement of $25.26m for investment properties in Australia & decrement of $2.51m for due to: joint venture properties . higher expenses associated with the opening of several large developments during the year

For personal use only use personal For . comprises 31.7% of total EBITDA for FY12 (FY11: 26.9%) Property segment . higher funding costs allocated to the property segment by $6.92m due to the expansion of the result before tax ↓ property portfolio & construction/opening of large property developments by $27.58m . comprises 37.1% of consolidated profit before tax for FY12 (FY11: 30.0%) 16 Segment Analysis: Company-Operated Retail Operations HOLDINGS LIMITED

Total Retail Operations FY June 12 FY June 11 Mvmt on PY Segment Revenue $1,433.34m $1,585.89m down 9.6% Segment EBITDA $35.11m $16.76m up 109.6% Segment Result Before Tax $9.70m ($10.59m) up 191.6%

Retail Ops segment . decrease in CP & RH revenue by $148.43m due to closure of 7 stores in Aug-11 & conversion of 18 revenue ↓ by stores to the franchised model in first half of 2012 $152.55m due to: . decreased NZ revenue by $15.44m due to the subdued state of NZ economy, price deflation in AV/IT categories, competitive pressures & the impact of the earthquakes in Christchurch . decrease of $5.77m in the “other” non-franchised retail segment due to the challenging nature of the discretionary retail sector in Australia Offset by: . higher revenue in Slovenia & Croatia following new store openings (the Maribor store in Slovenia and the Zagreb store in Croatia, both in Oct-11) & a full year’s trading of the Novo Mesto store . sales generated by 14 stores in Ireland & 2 stores in Nth. Ireland similar to PY in AUD Retail Ops segment . reduction in the trading losses (excluding restructure & closure costs) incurred by the CP & RH EBITDA ↑ by $18.36m businesses by $34.35m following the closure of 7 stores & conversion of 18 stores to franchised model due to . reduction in expenses incurred by stores in Ireland & Nth. Ireland flowing from operational efficiencies & effective cost management Offset by: . higher costs incurred by Slovenia & Croatia due to start-up investment costs of new store openings

For personal use only use personal For . closure & restructuring costs incurred by the CP & RH businesses of $8.07 million Retail Ops segment result before tax ↑ by $20.29m 17 Outlook HOLDINGS LIMITED

. We continue to execute our Omni-channel strategic plan to deliver improved performance from the Australian franchisees & company-operated stores internationally.

. Our integrated retail, franchise, property & digital operations are the backbone of our Omni Channels.

. Online operations across Australia & NZ will continue to develop & will deliver incremental revenue in the year ahead.

. We continue to implement our merchandising & supply-chain improvements program which will deliver improved information from both our suppliers & customers & provide a seamless customer experience across all channels.

. We anticipate that the Home Entertainment & Technology category of the franchising operations segment will continue to remain volatile & uncertain however, with further retailer & supplier rationalisation occurring, there is the opportunity for improvement.

. The strong performance of the Home Appliance, Furniture & Bedding categories will continue to deliver results.

. We are cautiously optimistic of consolidating & increasing our market shares in the technology For personal use only use personal For categories & geographies in which we compete.

18 Outlook (continued) HOLDINGS LIMITED

. Our New Zealand operation remains strong and will be positively supported by the re-opening of the main complex within Christchurch in late 2012.

. Our Irish business has improved & we expect this to continue in the year ahead within this challenged economy. We have a strong position with both Irish consumers & suppliers that is supporting the ongoing improvements to this business.

. Within central Europe, Slovenia has a solid position for growth & we expect that the investment in the initial store in Croatia will develop positively throughout the year.

. The flagship homemaker centre at Maroochydore in Queensland will open as scheduled in November 2012 adding to the strong asset base of the company’s property portfolio.

. The balance sheet of the company remains strong through conservative fiscal management. The low net debt to equity ratio of 26.60% with tangible property assets in excess of $2.12 billion has the company well-positioned to manage the core business within the respective territories

& take advantage of opportunities in the future. For personal use only use personal For

19 QuestionsQuestions (limited(limited to to 30 30 minutes) minutes)

HOLDINGS LIMITED For personal use only use personal For

20 APPENDIXQuestions (limited1: Selection to 30 minutes) of Properties as at 30 June 2012 HOLDINGS LIMITED

Harvey Norman Albury Centre is a modern bulky goods retail Domayne Alexandria is located in the inner-city suburb of Located in the suburb of western Sydney, the Domayne centre constructed in 2007. It occupies a prominent position Sydney. It occupies a prominent position on O’Riordan Street, centre occupies a prominent position of the northern side of on the northern side of the Riverina Highway and provides in the established homemaker and car dealership precinct of Parramatta Road. It forms part of the established 25,222.5m2 of single level retail accommodation. The retail Alexandria. This iconic property comprises a substantial Auburn/Lidcombe bulky goods retail precinct. The complex mix includes Harvey Norman, Joyce Mayne, Spotlight, modern bulky goods development constructed circa 2004. comprises a modern bulky goods centre arranged in three Freedom Furniture, BCF, Godfreys, Focus on Furniture, Recently refurbished, it provides premium retail buildings with a warehouse to the rear. It is occupied by Curtain Wonderland and Beacon Lighting. accommodation over ground, first and second floors with Domayne, Harvey Norman, Floors Dominion, Auburn parking for approximately 439 vehicles over ground and Aquarium and the Salvation Army. basement levels. The centre is anchored by Domayne, Harvey Norman, Space Furniture, Poliform & Caesar Stone.

Location: Albury, NSW Location: Alexandria, NSW Location: Auburn, NSW Ownership/title: 100% Freehold Ownership/title: 100% Freehold Ownership/title: 100% freehold Gross lettable area: 25,222.5m² Gross lettable area: 19,365m² Gross lettable area: 13,365m²

Last Independent Valuation Date: Jun-10 Last Independent Valuation Date: Jun-11 Last Independent Valuation Date: Dec-10 Valuation as at 30/06/2012 $38.9million Valuation as at 30/06/2012 $54.18 million Valuation as at 30/06/2012: $34.5million Capitalisation rate: 9.00% Capitalisation rate: 8.50% Capitalisation rate: 8.70% Car parking spaces: 520 Car parking spaces: Approximately 439 Car parking spaces: 277

M ajor Tenants GLA ( m²) M ajor Tenants GLA ( m²) M ajor Tenants GLA ( m²)

Harvey Norman Franchisees 8,473 Domayne Franchisees 12,665 Domayne Franchisees 12,077 For personal use only use personal For Joyce M ayne Franchisees 4,313 Harvey Norman Franchisees 2,662 Auburn Aquarium 449 Spotlight 3,504 Space Furniture 3,150 Floor Dominion 200 Freedom Furniture 1,149 Poliform 1,134 Salvation Army 481 BCF 1,104 Caesarstone 310 Café 158

21 APPENDIXQuestions (limited1: Selection to 30 minutes) of Properties as at 30 June 2012 HOLDINGS LIMITED

Harvey Norman Cambridge Park TAS

Located between Condamine Street and Roseberry Street, Located in the city of Clarence, Harvey Norman Centre Situated on the western side of Albany Highway within the within the established Balgowlah/Manly Vale bulky goods Cambridge Park is well accessible to Hobart Central Business southern suburb of Cannington, approximately 10 kilometres and light industrial precinct, this modern bulky goods centre District and the surrounding suburbs. The centre is from the Perth CBD, and located opposite Westfield provides ground and first floor retail showroom contemporary in design and anchored by a number of high Carousel Shopping Centre, this complex comprises two accommodation and a two level car park to the south. It is profile national traders including the largest Harvey Norman separate buildings, one being a large Harvey Norman occupied by a large Harvey Norman store which was retail store in TAS, K&D Hardware, Anaconda, Super Cheap showroom and the other anchored by Motor Xtreme, Fitness recently refurbished. Auto, Godfreys, Drummond Golf and Workout World. This First and Nodic Fitness. property includes surplus development land comprising an area of approximately 185,000 sqm.

Location: Balgowlah, NSW Location: Cambridg Park, TAS Location: Cannington, WA Ownership/title: 100% Freehold Ownership/title: 100% Freehold Ownership/title: 100% Freehold Gross lettable area: 11,553m² Gross lettable area: 40,450m² Gross lettable area: 14,023m²

Last Independent Valuation Date: Dec-10 Last Independent Valuation Date: Jun-12 Last Independent Valuation Date: Dec-09 Valuation as at 30/06/2012: $32 million Valuation as at 30/06/2012 (incl surplus land) $54 million Valuation as at 30/06/2012: $32.6 million Capitalisation rate: 8.51% Capitalisation rate: 9.75% Capitalisation rate: 8.75% Car parking spaces: 267 Car parking spaces: 145 Car parking spaces: 347

M ajor Tenants GLA ( m²) M ajor Tenants GLA ( m²) M ajor Tenants GLA ( m²)

Harvey Norman Franchisees 11,464 Harvey Norman Franchisees 9,992 Harvey Norman Franchisees 10,096 For personal use only use personal For Café 89 K&D Hardware 8,856 Fitness First 3,498 Anaconda 3,501 Motor Xtreme 186 Bennetts Furniture 1,501 Nodic Fitness 244 Shiploads 1,395 Super Cheap Auto 749

22 APPENDIXQuestions (limited1: Selection to 30 minutes) of Properties as at 30 June 2012 HOLDINGS LIMITED

Harvey Norman Fyshwick is the second largest retail store in Harvey Norman Gepps X forms part of South Australia’s The Harvey Norman Lower Hutt Centre is a modern bulky Australia. It is situated on a prominent position on the corner largest purpose-built bulky goods developments. It goods retail centre constructed in 2007. It occupies a of Barrier and Ipswich Streets, located in the established commenced trading in June 2009. Located on the eastern prominent corner position on Rutherford Street and Melling bulky goods precinct of Fyshwick. Erected on the land is a side of Main North Road, with access from two of Adelaide’s Link on the western fringe of the Lower Hutt CBD. It provides modern bulky goods showroom building constructed in 1994 major northern industrial carriageways, this modern centre 13,789.6m2 of high end retail accommodation over three and extended in 2005. The property comprises a 12,911m2 comprises the largest Harvey Norman retail store in SA, levels. The retail mix includes Harvey Norman, Smiths City, Harvey Norman showroom with associated Spotlight, Radio Rentals, Nick Scali, BCF, Forty Winks, Danske Mobler, Pet Centre, LV Martin, Beds R Us, Lighting office/warehouse accommodation arranged over part Barbeques Galore, Baby Bunting, Workout World and other Plus and Godfreys. basement and ground floor levels. retail tenancies.

Location: Fyshwick, ACT Location: Gepps Cross, SA Location: Lower Hutt, New Zealand Ownership/title: 100% Freehold Ownership/title: 50% Joint Venture Ownership/title: 100% Freehold Gross lettable area: 12,911m² Gross lettable area: 28,880m² Gross lettable area: 13,789.6m²

Last Independent Valuation Date: Dec-11 Last Independent Valuation Date: Jun-10 Last Independent Valuation Date: Jun-11 Valuation as at 30/06/2012: $29.5 million Valuation as at 30/06/2012 $32.5m (50% of total value) Valuation as at 30/06/2012: NZ $34 million Capitalisation rate: 8.45% Capitalisation rate: 8.50% Capitalisation rate: 8.87% Car parking spaces: 281 Car parking spaces: 767 Car parking spaces: 302

M ajor Tenants GLA ( m²) M ajor Tenants GLA ( m²) M ajor Tenants GLA ( m²)

Harvey Norman Franchisees 12,911 Harvey Norman Franchisees 12,332 Harvey Norman Franchisees 7,175 For personal use only use personal For Spotlight 2,978 Smiths City 2,297 Radio Rentals 1,889 Danske M obler 1,177 Nick Scali 1,812 Pet Centre 826 BCF 1,360 LV M artin 707 Forty Winks 1,265 Beds R Us 692 Lighting Plus 476 Godfreys 232 23 APPENDIXQuestions (limited1: Selection to 30 minutes) of Properties as at 30 June 2012 HOLDINGS LIMITED

The centre is situated on a prominent location on Rosamond Harvey Norman Midland is located centrally in the south Located 28 kilometres north of Adelaide’s CBD, this modern Road in Maribyrnong, located opposite Highpoint Shopping eastern sector of Midland within the Midland bulky goods complex has been built in two stages. The Centre, one of Australia's largest shopping centres. The Redevelopment Authority Area and occupies a prominent original Harvey Norman Showroom was constructed in circa complex is anchored by Harvey Norman, Officeworks, AMF position along the northern side of Clayton Street. This 2000, and a significant extension was completed circa Bowling and . modern bulky good accommodation is anchored by Harvey October 2006 which incorporated six new retail showrooms. Norman, a Harvey Norman seconds store, Forty Winks and The Centre is anchored by Harvey Norman, Fantastic Furniture Bazaar. Furniture, JB Hi-Fi, Forty Winks, Super Cheap Auto and Beacon Lighting.

Location: M aribyrnong, VIC Location: M idland, WA Location: M unno Para, SA Ownership/title: 100% Freehold Ownership/title: 100% Freehold Ownership/title: 100% freehold Gross lettable area: 23,668m² Gross lettable area: 12,964m² Gross lettable area: 16,624m²

Last Independent Valuation Date: Dec-10 Last Independent Valuation Date: Jun-11 Last Independent Valuation Date: Jun-12 Valuation as at 30/06/2012: $35.8 million Valuation as at 30/06/2012: $26.5 million Valuation as at 30/06/2012: $26.2million Capitalisation rate: 8.75% Capitalisation rate: 8.75% Capitalisation rate: 9.25% Car parking spaces: 303 Car parking spaces: 230 Car parking spaces: 432

M ajor Tenants GLA ( m²) T enant s GLA ( m²) M ajor Tenants GLA ( m²)

Harvey Norman Franchisees 9,495 Harvey Norman Franchisees 7,745 Harvey Norman Franchisees 8,254 For personal use only use personal For Bunnings 9,243 Forty Winks 1,218 Fantastic Furniture 2,381 Officeworks 2,381 Harvey Norman Franchisees (second) 970 JB Hi Fi 1,459 AMF Bowling 2,549 Furniture Bazaar 3,031 Forty Winks 1,075 Super Cheap Auto 628 Beacon Lighting 636

24 APPENDIXQuestions (limited1: Selection to 30 minutes) of Properties as at 30 June 2012 HOLDINGS LIMITED

The Perth City West Centre is located in West Perth, an inner Just 5 minutes from Penrith CBD and at the foothills of the Penrith is a regional centre on the western outskirts of the suburb of Perth’s metropolitan area. It is situated opposite a Blue Mountains, Penrith Homemaker Centre is located at Sydney metropolitan area situated approximately 55 train station on the Perth CBD fringe. The Perth City West Pattys Place, Penrith. The centre is supported by extensive kilometres west of Sydney CBD. The centre comprises four Centre comprises a two level retail/office development and car parking and is anchored by Spotlight, JB Hi-Fi, Plush, Strata lots within a complex of five forming a large bulky theatre room. Tenants include Harvey Norman, SciTech, Baby Bunting, Anaconda and 20 specialty stores. This goods retail/showroom complex. Its is anchored by Harvey Vehicle Licensing Centre, City West Function Centre, Ruah property was purchased in 2010 and now forms part of the Norman, Domayne, Lindcraft, Focus On Light, Super Cheap Community Services, STH Architects and another 40 specialty Harvey Norman Penrith Homemaker Centre. Auto and a freestanding Bunnings Warehouse. In 2010, tenancies. Additionally the MacMahon Building is a multi Harvey Norman acquired the adjoining Penrith Homemaker level office building completed in 2009. Total open car Centre making this centre, the largest of its kind in NSW. parking across both lots is approximately 478 open bays along with 443 undercover bays. The land size of 4.6 HA provides a significant opportunity for high rise residential, office and retail development within the site, subject to Location: Penrith, NSW Location: Penrith, NSW Council approval. Ownership/title: 100% Freehold Ownership/title: 100% Freehold Gross lettable area: 25,370m² Gross lettable area: 34,441m² Location: Perth, WA Ownership/title: 50% Joint Venture Gross lettable area: 37,067m² Acquisition Date Sep-10 Last Independent Valuation Date: Jun-10 Book Value as at 30/06/2012 $60.5million Valuation as at 30/06/2012: $57.7million Last independent valuation Car parking spaces: 1,013 Capitalisation rate: 9.00% Date: Jun-10 Car parking spaces: 650 Valuation: $51m(50% of the total value) Capitalisation rate: 8.00% T enant s GLA ( m²) Discount rate: 9.50% Spotlight 3,726 M ajor Tenants GLA ( m²) Car parking spaces: 921

JB Hi Fi 1,313 Harvey Norman Franchisees 11,305 For personal use only use personal For Anaconda 3,206 Domayne Franchisees 6,790 Fantastic Furniture 1,528 Bunnings 12,394 M ajor Tenants GLA ( m²) Baby Bunting 1,703 Lindcraft 2,043 Domayne Franchisees 7,929 Super Cheap Auto 804 SciTech 5,148 Focus on Light 661 M acM ahon Contractor 4,622

25 APPENDIXQuestions (limited1: Selection to 30 minutes) of Properties as at 30 June 2012 HOLDINGS LIMITED

Harvey Norman Rutherford NSW Space Furniture in Singapore

Harvey Norman Rutherford occupies a prominent position on The modern, cutting-edge design and mixture of Springvale Homemaker Centre is a landmark development the corner of the New England Highway and Shipley Drive in conservation restoration have created the new iconic that showcases for the first time the joint retail powers of the established bulky goods precinct of Rutherford on the Asian hub for Space Furniture in Singapore. The site in the Harvey Norman and IKEA together under one roof, forming fringe of the Maitland CBD. Construction of this centre was very heart of Singapore’s arts district was purchased in the largest combined Bulky Goods Centre in Australia. completed in 2007 which delivered a modern bulky goods 2007. The intense design and construction programme was Construction of the integrated IKEA and Harvey Norman centre anchored by Harvey Norman, Joyce Mayne, completed in 2011 and delivered a world class showroom. centre was completed in late 2011 which delivered a Spotlight, BCF, Forty Winks, and Capt Snooze. In November 2011 this new Space Furniture store was modern and unique retail ambiance for a bulky goods opened, the 3,876 square-metre multiplex carries the very centre. It houses Harvey Norman, Domayne, Anaconda, best designer brands from around the world. Nick Scali, JB Hi-Fi and 20 specialty stores. The centre is supported by 2,754 car parks apportioned over two undercroft levels. Location: Rutherford, NSW Location: Bencoolen Street, Singapore Ownership/title: 100% freehold Leasehold for 99 years Location: Springvale, VIC Gross lettable area: 21,321m² Ownership/title: from M arch 1995. Ownership/title: 100% freehold Gross lettable area: 3,876m² Gross lettable area: 39,521m² (excluding Ikea) Not e: IKEA is under a separat e ownership Last independent valuation Date: Dec-11 Valuation: $33.16 million Last Independent Valuation Date: Jun-12 Last Independent Valuation Date: Jun-11 Capitalisation rate: 9.00% Valuation/($/m²): SGD $ 60 million Valuation as at 30/06/2012: $132,207,828 Car parking spaces: 472 Capitalisation rate: 4.75% Capitalisation rate: 8.00% Car parking spaces: 2,754 (shared with IKEA) T enant s GLA ( m²) M ajor Tenants GLA ( m²) Space Furniture 3,876

Harvey Norman Franchisees 8,780 M ajor Tenants GLA ( m²) For personal use only use personal For Joyce M ayne Franchisees 3,238 Harvey Norman Franchisees 10,155 Spotlight 3,520 Domayne Franchisees 3,875 BCF 1,310 Anaconda 2,503 Capt'n Snooze 1,110 Nick Scali 1,996 Forty Winks 1,081 JB Hi Fi 1,229

26 APPENDIXQuestions (limited1: Selection to 30 minutes) of Properties as at 30 June 2012 HOLDINGS LIMITED

The Silverwater warehouse complex comprises the whole Harvey Norman Toowoomba is a modern bulky goods The Noble Park Harvey Norman warehouse is located on the block bounded by Carvarvon Street, Suttor Street, Derby complex which is located in south Toowoomba. The southern side of Summit Road and is approximately 24 km Street and Stubbs Street. It is located within the Silverwater complex comprises Harvey Norman, Capt’n Snooze, south-east of Melbourne's central business district. The Industrial Area, a mid-western suburb of Sydney. This large Petbarn, House & Garden, Super Cheap Auto, Spotlight, property has seven loading bays. It is occupied by Harvey brick warehouse and office building comprises ground and Trade Secret, Sportscene, Crazy Clark, Howards Storage Norman Springvale, Domayne Springvale and Domayne basement warehouse areas with first floor office and World and Zen Crema Café. Melbourne QV. basement parking, it is tenanted by Harvey Norman, Domayne, David Jones, Caesar Stone and Rebel Sport.

Location: Silverwater, NSW Location: Toowoomba, QLD Location: Noble Park, VIC Ownership/title: 100% freehold Ownership/title: 100% Freehold Ownership/title: 100% Freehold Gross lettable area: 66,923m² Gross lettable area: 16,004m² Gross lettable area: 9,140.6m²

Last Independent Valuation Date: Dec-09 Last Independent Valuation Date: Dec-10 Last Independent Valuation Date: Jun-12 Valuation as at 30/06/2012: $38.95 million Valuation as at 30/06/2012: $27.6 million Valuation as at 30/06/2012: $6.3million Capitalisation rate: 10.80% Capitalisation rate: 8.75% Capitalisation rate: 9.25% Car parking spaces: 60 Car parking spaces: 612

M ajor Tenants GLA ( m²) M ajor Tenants GLA ( m²) M ajor Tenants GLA ( m²) Harvey Norman Springvale Franchisees 5,000

Harvey Norman Franchisees 19,610 Harvey Norman Franchisees 4,193 Domyane Springvale Franchisees 1,700 For personal use only use personal For Domayne Franchisees 3,334 Spotlight 3,030 Domyane M elbourne QV Franchisees 1,500 David Jones 26,377 Capt'n Snooze 1,213 Rebel Sports 4,568 Trade Secret 2,467 Caesar Stone 3,212 Super Cheap Auto 696 Sportscene 1,494 Crazy Clarkes 1,114 27 APPENDIXQuestions (limited1: Selection to 30 minutes) of Properties as at 30 June 2012 HOLDINGS LIMITED

Harvey Norman Broadmeadows is situated on the western Harvey Norman Townsville is a modern, single level bulky Situated on the northern side of Burnside Road, in Stapylton, side of Pascoe Vale Road, approximately 16 kilometres north goods store which is located on the northern side of Stock the modern commercial showroom consists of a ground floor of Melbourne’s CBD. This large modern bulky goods Route Way, in Garbutt (Townsville). The complex forms part showroom, first floor office and a large warehouse component showroom is surrounded by other bulky goods retailers and of an integrated bulky goods/retail precinct which includes the Broadmeadows Shopping Centre. It is supported by an Domain Central. Additional storage and adequate car with a maximum clearance of approximately 8 metres. The onsite warehouse and at-grade car parking with easy parking is provided on site. complex additionally provides concrete hardstand for car access. parking and approximately 11,550 square metres vacant land at the rear of the property.

Location: Broadmeadows, VIC Location: Townsville, QLD Location: Stapylton, QLD Ownership/title: 100% Freehold Ownership/title: 100% Freehold Ownership/title: 100% Freehold Gross lettable area: 7,283m² Gross lettable area: 8,403m² Gross lettable area: 11,020m²

Last Independent Valuation Date: Dec-09 Last Independent Valuation Date: Dec-10 Last Independent Valuation Date: Dec-10 Valuation as at 30/06/2012: $10.97million Valuation as at 30/06/2012: $11 million Valuation as at 30/06/2012: $13.5million Capitalisation rate: 8.75% Capitalisation rate: 9.25% Capitalisation rate: 9.00% Car parking spaces: 174

M ajor Tenants GLA ( m²) M ajor Tenants GLA ( m²) Harvey Norman Franchisees 7,283 M ajor Tenants GLA ( m²) Harvey Norman Franchisees 11,020

Harvey Norman Franchisees 8,403 For personal use only use personal For

28 APPENDIXQuestions (limited1: Selection to 30 minutes) of Properties as at 30 June 2012 HOLDINGS LIMITED

Space Furniture Richmond VIC Harvey Norman Auburn NSW

Space Furniture occupies a prominent position on the Auburn located approximately 18 kilometres west of Sydney. eastern side of Church Street within an established furniture This modern two storey air-conditioned bulky goods complex and homewares retail strip in the inner-eastern suburb of has extensive frontage of around 155 metres to Parramatta Richmond. It is a purpose built, modern furniture showroom, Road and is well situated within a leading bulky goods retail comprising ground floor and two split levels of showroom precinct. The Centre has ample parking located at the lower plus car parking within the ground and basement level. ground, upper and lower basement parking areas with access between levels provided via escalators and lifts. Tenants include the largest Harvey Norman store, Energy Specialist and Auburn Café.

Location: Richmond, VIC Location: Auburn, NSW Ownership/title: 100% Freehold Ownership/title: 100% freehold Gross lettable area: 1,319m² Gross lettable area: 15,359m²

Last Independent Valuation Date: Jun-11 Last independent valuation date: Dec-09 Valuation as at 30/06/2012: $5.4million Valuation as at 30/06/2012: $37.5m Capitalisation rate: 7.25% Capitalisation rate: 9.10% Car parking spaces: 349

M ajor Tenants GLA ( m²) Space Furniture 1,319 M ajor Tenants GLA ( m²)

Harvey Norman Franchisees 14,736 For personal use only use personal For Energy Specialist 402 Auburn Café 221

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