Chairman’s Report (continued)  Sales  Consolidated Entity  Sales from Harvey Norman Franchised Complexes  HARVEY NORMAN HOLDINGS LIMITED AND ITS CONTROLLED ENTITIES – ANNUAL REPORT 2003  3  Sales Mix % 0.12 0.16 0.27 2.39 2.61 2.90 0 0.5 1 1.5 2 2.5 3 2001 2002 2003 $ billion NZ & Slovenia Franchisees Sales Revenue Furniture  22% Electrical  46% Computers  28% Other  4% 2001 $billion  2002   $billion  2003   $billion  Sales made by Harvey Norman Stores in  New Zealand and Slovenia  0.12  0.16  0.27  Sales made by Harvey Norman  Franchisees, and other sales outlets  2.39  2.61  2.90  TOTAL 2.51 2.77 3.17 The sales revenue generated by franchised “Harvey Norman” complexes do not form part of the financial results of  the consolidated entity. Retail sales in these complexes are made by separate independent business entities that are  not consolidated in the group results.  The information below is not intended to be representative of the results of the consolidated entity and partly reflects  the results of the franchisee businesses which are not included in the consolidated results.  Sales revenue for the consolidated entity, excluding sales revenue from Harvey Norman franchised stores, but  including Harvey Norman stores in New Zealand and Slovenia, controlled entities such as Rebel in Australia, and  Pertama Holdings Limited in Singapore, are up 26.9% to $1.0 billion (2002: $788.2 million) for the twelve months  ending 30 June 2003. Main factors contributing to the increase were:  sales revenue from New Zealand company owned stores was up $95.6 million or 62.9%, including revenue from  six new Harvey Norman stores opened during the year;  sales revenue from Rebel Limited increased by $48.2 million or 21.1%, including revenue from six new Rebel  stores and one Glue store opened during the year;  the first European Harvey Norman store located in Ljubljana, Slovenia which commenced trading during  September 2002 contributed $17.9 million to sales revenue;  sales revenue from Pertama Holdings Limited, Singapore, trading as “Harvey Norman” increased $19.4 million  resulting from an increased acceptance of the Harvey Norman brand name, enhanced marketing initiatives, and  varied product mix.