Directors’ Report (continued)  Beneficial Interest Results 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.  Included in the above shareholdings are the following:  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:  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.  Details of share options are set out in Note 26 of the  financial statements and form part of this report.  The total equity of the consolidated entity for the year  ended 30 June 2003 increased over the previous  financial year due to the following:  The principal activities of the consolidated entity  continue to be that of:  Review of Group Operations Principal Activities Share Options Dividend Payment Date  $  2002 final fully franked  dividend recommended 2 December 2002  26,397,336 2003 interim fully franked  dividend 5 May 2003  26,397,336 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. 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. HARVEY NORMAN HOLDINGS LIMITED AND ITS CONTROLLED ENTITIES – ANNUAL REPORT 2003  8  Lessor of premises to Harvey Norman franchisees and other third parties  Property investment  Provision of consumer finance  Sale of homewares and electrical goods in New  Zealand, Slovenia and Ireland Franchisor  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 