For personal use only - ASX · Preliminary Final report Period Ended 30 June 2011 Ratios and Other Measures NTA backing Current Period Previous corresponding Period Net tangible asset

Emeco Ho

location Le

phone +61

23 August 2 Company AAustralian SLevel 4 20 Bridge StSYDNEY NS Emeco Hold Results for Attached fo

the Eme2011; a

Emeco Yours faithf

Michael KirCompany Se

ldings Limited |

evel 3, 71 Walter

1 (0) 8 9420 0222

2011

AnnouncemeSecurities Exc

treet SW 2000

dings Limited

the year end

or immediate

eco Holdingsnd

Holdings Lim

fully

rkpatrick ecretary

ACN 112 188 81

rs Drive, Osborne

| fax +61 (0) 8 9

nts Office change Limit

d (ASX:EHL)

ded 30 June

e release to t

s Limited App

mited’s annua

5

Park WA 6017,

9420 0205 | em

ted

– Results fo

2011

the market a

pendix 4E – p

al financial re

Australia | post

mail corporate@e

r announcem

are the follow

preliminary f

eport, audito

tal address PO Bo

mecogroup.com

ment to the

wing docume

final report f

or’s report a

ox 1341, Osborne

| web www.em

market

ents:

for the finan

nd directors

e Park DC WA 6

mecogroup.com

cial year end

s’ report.

916, Australia

ded 30 June

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APPENDIX 4E Preliminary Final report Period Ended 30 June 2011 Name of entity

Emeco Holdings Limited

ABN or equivalent company reference

A.C.N. 112 188 815

Results for announcement to the market Reporting Period: Year ended 30 June 2011 (Previous corresponding period: year ended 30 June 2010) % 2011 2010

Change $A million $A million

Revenues from ordinary activities 11.7% 515.5 461.7

Profit from ordinary activities after tax attributable to members of Emeco Group

200.6%

49.6

(49.3)

Dividends

Date the dividend is payable 30 September 2011

Record date to determine entitlements to the dividend 5 September 2011

Amount per security

Amount per security Franked amount per security

Final Dividend: Current year 3.0 cents 3.0 cents

Previous year 2.0 cents 2.0 cents


Interim Dividend: Current year Ordinary – 2.0 cents

Special – 5.0 cents

Ordinary – 2.0 cents


Previous year ‐ ‐


Total Dividend: Current year Ordinary – 5.0 cents


Ordinary – 5.0 cents


Previous year 2.0 cents 2.0 cents

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APPENDIX 4E Preliminary Final report Period Ended 30 June 2011 Ratios and Other Measures

NTA backing Current Period Previous corresponding

Period

Net tangible asset backing per ordinary security $0.68 $0.70

Details of loss of control of entities having material effect No control over any entities was lost during the period that had a material effect.

Accounts This report is based on accounts that have been audited. Commentary on Results For commentary on the results of the Emeco Group, refer to the accompanying media release, audited financial report and directors’ report.

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Emeco Hol ABN 89 11 Annual Fin 30 June 20

ldings Limit

12 188 815

nancial Rep

011

ted and its

ort

Controlled Entities

1

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Contents Chairman’s

Managing D

Chief Finan

Review of O

Sustainabili

Directors’ R

Director

Current

Compan

Director

Corpora

Nature o

Operatin

Dividend

Significa

Significa

Likely de

Director

Remune

Indemni

Non‐aud

Roundin

Lead Audito

Consolidate

Consolidate

Consolidate

Consolidate

Notes to th

Directors’ D

Independen

s

s Report ......

Director’s Re

cial Officer’s

Operations ..

ity Report ...

Report .........

rs ................

Directors ..

ny Secretary

rs’ Meetings

te Governa

of operation

ng and finan

ds paid or to

ant changes

ant events a

evelopment

rs interest in

eration repo

ification and

dit services

ng ...............

or’s Indepen

ed Statemen

ed Statemen

ed Statemen

ed statemen

e Financial S

Declaration .

nt Auditors’

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eport ..........

s Review .....

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y .................

s .................

ance Statem

ns and princ

ncial review

o be paid ...

in state of

after balanc

ts and expe

n shares of

ort (audited

d insurance

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ndence Decla

nt of Compre

nt of Financia

nt of Change

nt of Cash Flo

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affairs .......

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Chairman

HIGHLIGHT Strategy Total sh Business Dear Shareho We are pleas

BUILDING A The past twethat the bescustomers invery encoura Among the nthe successfmining equipShareholder Despite a bagrowth in mresulting in nreturn on invthe full year in Indonesia. During the yeboth domesunderstand hare the benepillars of “opforefront of o

MANAGING Central to dewith any exc As part of thbeen disposunderperform Of the total per share fufranking credIn addition tboth fully fra During the ycertainty aro

n’s Report

S

y launched in areholder divs well positio

older

sed to present

A PLATFORM

elve months hst value creatn the major maging results.

notable achieful refinancingpment. TheseReturn (“TSR”

ackdrop of onmining activity net profit aftevested capitawas $49.6 mi.

ear we had thstically and inhow Emeco aefits of Emecoptimise the coour planning t

G CAPITAL EF

elivering acceess capital be

he strategic resed. These aming capital o

capital releasully franked sdits to sharehthe Directors anked.

year we also ound funding a

t

July 2010 travidends of 10.ned to benefi

t the Emeco H

M FOR SUSTA

has been a timting strategy mining provinc

evements durig of our debe actions have”) well in exce

ngoing volatilitacross all of er tax before l (“ROC”) incrillion reflectin

he opportunitynternationallydds value to to’s flexible fuore business” to ensure we

FFICIENTLY

eptable returneing duly retur

eview we ideactivities haveover the cours

sed, the Boardspecial divideholders while have declared

successfully ravailability ov

nslating to im.0 cents declait from strong

Holdings Limit

AINABLE GRO

me of excitingfor Emeco wes of the wor

ing the year wbt facilities, ade translated iness of the ASX

ty in global mour markets.significant iteeasing from 8ng a small loss

y to visit a nuy. Meeting their operatioully maintaineand “sustainadevelop long‐

ns to sharehorned to shareh

ntified a nume resulted inse of FY11.

d resolved to end. This inimaintaining td interim and

refinanced ouver the next th

mproved returared for FY11,g activity leve

ted Annual Re

OWTH

g change andwas to focus orld. The early

were the timedvancing ournto improvedX 200 index ov

markets over . Emeco’s fleems (operatin8.3% to 11.3%s from discont

mber of Emecour employeons is always ed dry rental able growth”, ‐term mutual

olders is ensuholders if it is

mber of non‐cn the release

return $31.6itiative returnthe balance sd final dividen

ur debt facilithree to five ye

rns and TSR o, fully frankedels and growin

eport for finan

d developmenour dry rentasteps in impl

ely implemenr people stratd shareholder ver the past 12

the past yeareet utilisationng NPAT) imp% over the pastinued operat

co’s operatingees and speadeeply informservice. As wwe will keep ly beneficial p

ring investmesurplus to the

core businesse of over $56

6 million to shned surplus cheet capacitynds of 2.0 cen

ties with our ears to meet o

utperformancd ng mining geo

ncial year 2010

nt for Emeco. l model moreementing this

tation of our tegy and furtreturns with 2 months.

r, we continue reflected theproving by 36.st twelve montions and a on

g sites as well king directly mative. What we continue tour customerpartnerships.

ent is directede Company’s

es and assets6 million, or

hareholders incapital and dy and gearing nts per share

existing bankour growth ob

ce

ographies

0/2011 (“FY11

In July 2010e on serving s strategy hav

r restructuringther investmeEmeco achie

ed to observeese strong ac.3% to $56.0 nths. Statutone‐off debtor

as meet withwith our cuwe learn timto focus on ors’ changing n

d towards quneeds.

s that have su8.9 cents pe

n the form of distributed solevels to pursand 3.0 cents

king syndicatebjectives.

3

1”).

0 we agreed our mining

ve produced

g initiatives, ent in large ving a Total

e significant ctivity levels million and ry NPAT for impairment

h customers, ustomers to e and again our strategic needs at the

ality assets,

ubsequently er share, in

a 5.0 cents ome surplus sue growth. s per share,

e, achieving

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SAFETY The safety ocontinuous itowards creaan even safe

OUR PEOPL I am pleasedre‐enforces t We are workmanaging oudelivering lon Our employeBoard I woutheir ongoing

THE FUTUR In recent mowe are in a g At the samedriving strona positive oubeing pursue The Compancontinue oursuperior retu Alec BrennanChairman

of our employimprovementating a world r workplace.

LE, COMMUN

to report thathe Company’

king to deepeur environmeng‐term, satis

ees continue tld like to takeg commitmen

RE

onths we havegood position

e time we cong fundamentautlook on acted in FY12 and

y now has a sr focus on imurns for our sh

n

yees and thos in this area class safety m

NITY AND TH

at Emeco is pu’s ongoing com

en our engagental footprintsfactory return

to make outste this opportunt.

e seen the re‐to manage th

ntinue to obsals for the glotivity levels ind provides opp

solid base fromproving the phareholders.

se we work wand our ulti

management c

HE ENVIRON

ublishing its inmmitment to

ement with tt. I’m confidens to our shar

tanding contrunity to thank

‐emergence oese risks and

erve robust cobal mining indn the near terportunities fo

m which to grperformance o

with is a key pmate objectivculture and w

NMENT

naugural sustaits people, co

he communitent we are mreholders.

ributions to thk everyone fo

of risks to thewe remain al

commodity dedustry. As a srm which undor geographic

ow having coof our existin

priority of theve of “zero hwe remain vigi

ainability repoommunity and

ty and to impaking the nec

he success of tr their efforts

e global econoert to the env

emand from service providderpins the sexpansion int

mpleted the rg businesses

e Board and wharm”. Emeclant and com

ort within the d environment

prove our appcessary progre

the Emeco bus over the pas

omy and finanvironment in w

emerging maer to the miniignificant capo the world’s

restructure. Inwhile pursuin

we remain coco continues mmitted to ma

FY11 annual rt.

proach to meess in these a

usiness. On bst twelve mon

ncial system. which we ope

rket economing sector, Empital investmes major mining

n the year ahng growth wh

4

ommitted to to progress aking Emeco

report. This

asuring and areas, while

ehalf of the nths and for

We believe rate.

ies which is meco retains ent program g regions.

ead, we will hich delivers

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Managin

HIGHLIGHT Restruct Strategic Clearly a Further The primary It is timely tpeople acrosour return on

MARKET OV Over the paswhich has trstrong fleet While utilisaunderlying m The Emeco GStatutory NPdebtor impai The performsector. Emefrom 78% inperformanceother market FY11 was thfollowing theFY11, and reto lift returnbeing pursuecoming years The performDespite utilisdebtor impafurther reduvolume grow

STRATEGY When we covalue to sharmining mark

Optimise th The efforts abusiness. Thcapturing cocompleted areconfiguringstrategy for E

g Director

S

ture activitiesc focus now oarticulated goimprovement

objective of tto reflect on ss the businesn capital impr

VERVIEW

st twelve moranslated intoutilisation in tion has marg

market fundam

Group delivePAT for the yirment in Indo

ance of the Aeco’s significan FY10. Whe of the Austrats.

e first year the restructurineturn on fundss to acceptabed to furthers.

mance of the sation remainirment relateced earnings wth, some new

ommunicated reholders. Thkets to deliver

he Core

and achievemhis included rost and oper broad range g our fleet in Emeco people

r’s Report

s completed inon “Sustainaboal of consistet in Safety pe

the strategy I the progress ss, and the conroving to 11.3

onths we haveo strong demthe first half ginally declinementals remai

red an operayear was $49.onesia.

Australian rennt exposure thile the wet alian business

hat the Canadng of the fleets employed imble levels, howr develop the

Indonesian bning flat year d to our largein the second

w customers, a

our strategy hese were conr sustainable

ments of our prefocusing ourating efficienof activities iCanada and Ae.

t

n FY11 with bble Growth” oent value creaerformance w

outlined in Juwe have madntinued growt% in FY11 (FY

e witnessed cand for Emecof the year, ed in the fourn strong.

ting NPAT of6 million incl

tal business rto coal, gold aweather eves in FY11 was

dian business t throughout mproved fromwever the imp business pro

business in Fon year at arest customer d half. Howeand managem

to the markentinual optimgrowth.

people over tr operations ncies and enncluding theAustralia, imp

business improf large miningation for sharith LTIFR at 2

ly 2010 was tde over the lth in activity i10: 8.3%).

continued groco’s equipmebuilding on trth quarter du

f $56.0 milliolusive of a sm

reflected the wand iron ore ents in Queeencouraging

had a full mFY10. Averag

m 2.8% to 11.3proved perforovides a solid

FY11 dampenround 76%, Inin the regionever, the outlment in place t

et in July 2010isation of the

the past twelvon growing mnhancing the closure or disproving intern

ovements cong fleet in globeholders .4 per million

o improve retlast twelve min our core m

owth in activient rental andhe momentuue to some sp

n in FY11, remall loss from

well‐documenunderpinned ensland someand set a ben

ining fleet alige utilisation 3% over the prmance in FY1d foundation

ed an overalndonesia’s ear. The residuaook for Indonto capitalise o

0 we identifiee core busines

ve months wmining markecustomer va

sposal of the nal processes,

ntinuing ‐ “Opbal mining reg

man hours

turns and delimonths, the coarkets, which

ty across thed maintenancm we experiepecific issues

epresenting a m discounted

nted strength average utilis

ewhat impactchmark for ou

gned to the orecovered fropast year. The11 and the earto drive perf

l positive yearnings were sal costs of remnesia is positivon these oppo

d two areas oss and discipl

ere largely foets, liberating alue propositUSA, Europe, and developi

ptimise the Cgions

ver value to sontributions m together hav

e resource secce services. Wenced at the in Canada an

36.3% increaoperations a

of the countsation of 89%ted earnings,ur businesses

oilsands and om 57% in FYere is more wrly success wiformance hig

ar for the Emignificantly immoving the fleve with stronortunities.

of focus whicined investm

ocussed on opunderperfortion. Across and Victorianing and imple

5

ore”

shareholders. made by our ve resulted in

ctor globally, We achieved end of FY10. nd Indonesia,

ase on FY10. nd a one‐off

ry’s resource % in FY11, up , the overall s operating in

coal markets 10 to 78% in

work required ith strategies her over the

meco Group. mpacted by a eet from site ng underlying

h will deliver ent in global

ptimising the ming capital, s Emeco we n businesses, ementing our

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These activitshareholdersimprovemenoperating ris Our primary satisfied thaAustralia, Inrestructure a

Sustainable We are curreoilsands in Cproject based Further, a reacross the mequipment ina key contribcan take sevon capital frexpanded ca In a market demonstrateflexibility to lead times foallows us togrowth by ac

PEOPLE & S In addition toEmeco’s peoglobal visionas a businesengagementnumber of inmanagemen Safety remaito make progthe Lost Time I would like efforts in decompliant wo

ties converteds and in part rnt initiatives sk.

objective in t we have mndonesia and activities now

e Growth

ently observinCanada. This d opportunitie

eview of our fmining cycle ann FY12. Thesebutor to earnieral months from these inpital base.

where equiped with our ingrow and enaor new equipo explore othecquisition, we

SAFETY

o executing bople. Based o, mission and ss, explain ho. Empower initial improvet. We firmly b

ns a top priorgress in enhane Injury Frequ

to thank eacelivering resuorkplace for E

d $56.1 millioreinvested in oto deliver a

the first yearmet this objec

Canada plucomplete, Em

ng strong mardynamic repes that requir

fleet strategynd as a result e investmentsngs growth infrom the timevestments to

pment availabvestment proables us to prment. The coer avenues fo remain very

business and fon feedback f values. Empoow all employis about makiment projectbelieve that in

rity for the Boncing Emeco’suency Rate (“L

h and every olts aligned toEmeco people

n of underpeorganic growtrange of be

of our stratetive in FY11, s complimenmeco is well po

rket fundamenpresents organre fleets of eq

y concluded thwe have coms will be deplon FY12. Howeve of payment o be realised

bility is challeogram in FY12rovide our cusompletion of oor growth. Hmindful of ou

fleet strategiefrom our empower aims to yees can coning Emeco a s centred aronvestment in o

oard and Execs safety manaLTIFR”) to 2.4

one of our emo our strategye and those we

erforming capth capital. In nefits includi

egy was to rewith Emeco

ntary Procureositioned to d

ntals for coal,nic growth ouipment and

hat large minmmitted $165 oyed across Aver, transportand for this rin FY13 whe

enging, the va. The ability tstomers with our business However, wher focus on cre

es during the yployees, we lbuild a commntribute to thgreat place t

ound training aour people is

utive Leadersagement systeper million m

mployees fory and their ce work with.

ital into cashaddition, we eng cost effic

focus the busnow comprisment, Disposdeliver accept

, iron ore andpportunities fon‐site maint

ing equipmenmillion to orgAustralia and Ctation and prereason we expen we will re

alue of our gto source equequipment wrestructure pether it is orgeating value fo

year, we deveaunched “Em

mon understanhe success of o work. As pand developmkey to Emeco

ship Team. Ovems and capabman hours for t

maintaining contribution t

in FY11 whicexpect our cociencies and

siness strategsing three misal and Partsable sharehol

d gold in Austrfor Emeco, anenance suppo

nt consistentlganic growth iCanada throueparation of epect most of tealise a full y

lobal procureipment from twithout them rogram and oganic growth,or shareholde

eloped and esmpower” (our nding for all ethe businesspart of Empowment, career po’s future succ

ver the coursebility. Pleasinthe twelve mo

their focus otowards ensu

ch was in partontinued focusreduced com

gically and finning Rental bs capabilitieslder returns.

ralia, coal in Ind we continort and expert

ly delivered hinvestment inughout the yeaequipment nethe improvemyear of earnin

ement capabithe global mabeing constraour balance s, geographic ers.

stablished ourpeople strate

employees abos, and increaswer, we haveplanning and cess.

e of the year wngly, we saw aonths to 30 Ju

n safety, for uring we have

6

t returned to s on business mmercial and

ancially. I’m businesses in . With the

ndonesia andue to pursuetise.

higher returnsn large miningar and will bew to the fleet

ment in returnngs from the

lity has beenarket providesained by longheet capacityexpansion or

r strategy for egy) and our out our goals se employee e launched a performance

we continued a reduction inune 2011.

their tireless e a safe and

d e

s g e t n e

n s g y r

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LOOKING FO As we look timpact on cogrowth in easector. As a result, I business throand exceed t The Companand committprogress in d Keith GordonManaging Di

ORWARD

to FY12 and bommodity voarthmoving vo

expect Emecough organic gthe Company’

ny has a clearted teams in odelivering on o

n rector & Chie

beyond, we aolumes. Notwolumes given

co to benefit fgrowth, geog’s hurdle rates

ly articulatedour key markeour objectives

ef Executive O

are aware of twithstanding tthe strong co

from this dynaraphic expanss on a risk adj

focus on conets of Australias in FY12.

fficer

the emergingthese broadeommodity fun

amic with strosion or acquisusted basis.

nsistent valuea, Indonesia a

g risks to globr economic rndamentals an

ong fleet utilisition, being m

e creation for and Canada, I

bal economic isks, the currnd a positive

sation and themindful that gr

shareholdersam confident

growth and trent outlook ioutlook for t

e opportunityrowth must be

s. With a strot that we will m

7

the potential is for further he resources

y to grow the e sustainable

ong presence make further

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Chief Fina

HIGHLIGHT Significa Debt ref Cash rea

Our focus duidentified as Against a bafinancial posand investinsustainably g

FINANCIAL

A$ m

Rev

EBIT

EBIT

NPA

Inve

EBIT

Group operaRevenue gromaintenance Mining custoactivities, refthe Sales andwith the min Direct operaemerged in sinvestment i Operating EBcost efficiencpositive factoleverage dueare preserve Profit on saldisposals of $ The Australiatranslation ocurrency riskassets and de Despite a lowdebt facilitie$0.8m in cap

ancial Off

S

ant improvemfinance, facilitalised from re

uring FY11 wathe first step

ackdrop of sisition was furtng in targetedgrowing the b

RESULTS

millions

venue

TDA

T

AT

ested Capital

T ROC %

ating revenue owth in FY11 e services, imp

omers represflecting Emecd Parts businening rental flee

ating costs insome regionsn the addition

BIT and EBITDcies and someors. Operatine to the fixed d across the e

e of rental as$34.6 million

an dollar appof earnings frk for the inteebt funding a

wer average s in Novembepitalised borro

ficer’s Rev

ment in NPAT aty headroom estructure act

as on consolidto delivering

gnificant growther secured bd fleet for fuusiness in the

Oper

FY10

444.4

190.4

83.6

41.1

1005.

8.3%

was up 13.1%was largely aproved pricing

ented 66% oo’s customer esses were broet.

ncreased in Fs as the supplnal operating

DA margins boe price increang EBIT increacomponent oeconomic cycl

ssets (“POSA”(FY10: $44.5 m

reciated apprrom our offshernational busre either in US

debt level in er 2010 whichowing costs at

view

and ROC in FYand comfortativities partly

dating Emecolong term acc

wth in earninby refinancinguture growth.e coming years

rating (pre sign

0 FY11

4 502.5

4 223.3

6 101.2

1 56.0

4 896.9

% 11.3%

% to $502.5 mttributable tog and the dep

of Group rentprofile qualitoadly flat yea

FY11 in line wy of labour aand corporate

oth improved ses. The perfased 21.0% in of depreciationle.

”) contributedmillion).

roximately 27hore businesssinesses wherS or Canadian

FY11, interes resulted in ht the time of t

Y11 able gearing preturned to s

o’s operating ceptable retur

ngs and operg the Compan. These achs.

ificant items)

YOY %

13.1%

17.3%

21.0%

36.3%

(10.8)%

35.7%

million in FY11o a full year oployment of or

tal revenue inty and its levear on year as i

with higher und parts conte capabilities

marginally yeformance of t FY11 wherean charged on

d $2.8 million

7% against theses. Howeverreby our locan dollars.

st costs were igher interesthe refinancing

provides tenoshareholders a

and financial rns to shareho

rating cashflony’s debt facilievements ha

Sta

FY

46

116

(11

(49

100

(1.

1, due to stronof high utilisatrganic growth

n FY11 with 6erage to the mnventories we

utilisation, hotinues to tightrequired for d

ear on year bethe Indonesiaas EBITDA incidle equipme

n to EBIT in FY

e US dollar ovr, we employal earnings an

flat year on yt rates. Borrog as these cos

or and flexibiland partly fun

fitness (“optiolders.

ow over the ities, liberatinave ensured

atutory (post s

10 FY11

1.7 515.5

6.7 217.3

1.4) 92.3

9.3) 49.6

05.4 896.9

1)% 10.3%

ng demand frtion in Austra capital.

64% of revenmining productere downsized

owever addititen. Overheadelivering sust

enefiting fromn business in reased by 17.nt to ensure c

Y11 (FY10: $2

ver FY11 whicy a natural hend cashflows

year due to twing costs alssts related to t

ity nding growth

imise the cor

past year, thng underperfothat Emeco

significant item

1 YOY %

5 11.6%

3 86.1%

3 907.8

6 200.6

9 (10.8)

% 1005.6

rom our mininalia and Cana

nue from minction cycle. Red and repositi

ional cost prads increasedtainable grow

m fixed cost levFY11 partially.3% reflectingcarrying value

2.9 million) o

ch adversely edging strategincluding rev

the refinancinso included ththe previous f

8

h

e”) which we

he Company’sorming capitalis capable of

ms)

%

%

%

%

%

%

6%

ng customers.da, growth in

ne productionevenues fromioned to align

ressures have reflecting an

wth.

verage, directy offset theseg the earningses of our fleet

n rental fleet

impacted thegy on foreignvenues, costs,

ng of Emeco’she write‐off offacility.

e

s l f

. n

n m n

e n

t e s t

t

e n ,

s f

For

per

sona

l use

onl

y

As a result osignificant ite During FY11 $49.6 millionoperations ain the 2010 A Further regio

CASH FLOW During FY11underperformflow before grelease of $expenditure. During the yeearth movingfleets in FY1the $165 milin FY12 and h The Group’s of a $26.0 underlying dinvest for fut During the yemedium termtenor to be e30 June 201times, with u

RETURN ON The combinayear has driv The Australiaoperating EB2.8% in FY1commodity d6.5%, howevmarket that Looking aheainto our core Stephen GobChief Financi

of the above fems increased

Emeco incurrn for the yeand a $6.0 milAnnual Report

onal analysis i

W & BALANC

1, we furtherming assets agrowth capita$46.6 million,.

ear we made g volumes. W1 to meet emlion investmehigher returns

net debt redumillion transldebt. Due to ture growth a

ear Emeco’s sm capital requextended to i1 gearing is 1undrawn facili

N CAPITAL

ation of earninven an improv

an rental busiBIT divided by0 to 11.3% idiversificationver we are coreturns will re

ad, we are tae businesses, a

bby ial Officer

factors operad by 36.3% fro

red one‐off sigar. The one‐olion debtor imt.

s provided in

E SHEET

r enhanced ond maintaininal investment disposal pro

targeted inveWe took advanmerging demaent program as in FY13.

uced by $8.7 mlation benefitthe strong opnd return fun

senior debt fauirements of nclude a mix 1.38 times (Tities of $198.9

ngs growth invement in ROC

ness continuey invested capin FY11, hown to deliver hnfident with aecover in the

argeting furthapplication of

ting EBIT wasom $41.1 milli

gnificant itemoff items (on mpairment in

the Review of

our balance sng a disciplineand dividendoceeds of $5

estments in hintage of our bnd in Australannounced in

million to $29t from the aperating cash ds to shareho

acilities were rthe business.of 3 and 5 yeotal Debt: no9 million provi

n Emeco’s corC from 8.3% to

ed to deliver gpital less goodwever we exphigher returnsan improved near term.

er improvemf our pricing st

s up 21.0% toion to $56.0 m

ms totalling $6a post tax bIndonesia. A

f Operations s

sheet capacited approach tods of $144.9 m53.9 million a

gh quality fleebalance sheet ia and CanadJune 2011 wh

91.5 million atappreciation oflow and libeolders while m

renewed with. Credit markear maturitiesormalised EBIiding capacity

e businesses o 11.3% in the

good returns wdwill) of 23.8%pect the coms in the futurcustomer pro

ents in ROC ttrategies, and

o $101.2 milliomillion in FY11

6.4 million (pobasis) include summary of t

section.

ty through reo capital invesmillion which and $87.5 m

et based on ocapacity and a. $60 milliohich we expec

30 June 2011of the AUD, eration of undmaintaining a c

h our existing ket improvemwhich furtheTDA), which y for future inv

and liberatione 12 months t

with Return o% in FY11. C

mbination of are. Indonesiaofile and the p

through discid cost efficienc

on in FY11, a1.

ost tax), resulta $0.4 milliothe FY10 signi

eleasing workstment. The Gincluded workillion investm

ur positive vieinvested $10n of the FY11ct to deliver si

1. The net chaoffset by a $derperformingcomfortable le

banking syndments over theer enhances ois below our vestment opp

n of underperto 30 June 201

on Funds Empanada’s ROFEadditional scaa’s returns unpositive outlo

plined allocatcy initiatives.

nd operating

ting in a statuon loss from ificant items c

king capital, Group generatking capital a

ment in susta

ew of long‐te05.8 million in 1 growth capitignificant ear

ange was the $17.3 milliong capital, we evel of debt.

icate in ordere past 12 moour funding ristarget range

portunities.

rforming capit11.

ployed (“ROFEE improved male, improvednderperformeook for the Ind

tion of increm

9

NPAT before

tory NPAT of discontinued can be found

disposing ofted free cash nd inventory ining capital

rm growth in large mining tal relates to nings growth

combination n increase in were able to

r to meet the nths allowed sk profile. At of 1.5 – 2.0

tal during the

”) (defined asmarkedly fromd pricing anded in FY11 atdonesian coal

mental capital

e

e

s m d t l

l

For

per

sona

l use

onl

y

Review o HIGHLIGHT High lev Australia Indones

THE EMECO The Group’srespectively average rentlarge miningbusinesses. Significant oIndonesia anfrom the USA

AUSTRALIA

A$ m

Rev

EBIT

EBIT

Flee

Fun

EBIT

Emeco’s AusSouth Waleszinc and 28%Australian re Operating EBproduction acombination The Queenslutilisation fothe second hUnderlying ffollowing the The Westernredeployed aequipment in New South Wwhile succes The loss from

of Operati

S

vel of mining aa and Canadasian debtor im

O GROUP

operating recompared total fleet utilisag equipment m

one‐off items nd a post tax A, Europe and

AN RENTAL

millions

venue

TDA

T

et WDV at 30 Ju

nds Employed 1

T ROFE %

(1) Fun

stralian rental and Western% from otherevenue, with t

BIT increased and expansio of higher ave

land operatiollowing a yeahalf of the yefundamentalse extended we

n Australian ba large quantn gold, coal an

Wales maintasfully managi

m the Victoria

ons

activity in all ca outperformimpairment im

evenue of $50o the prior fination of 85% amade over FY

excluded froloss of $0.4

d Victoria busi

Oper

FY10

250.9

141.2

72.9

une 351.2

382.1

19.1%

ds employed

business is len Australia. Dr commoditiethe balance of

34.9% to $98n activity acrerage utilisatio

ons delivered r of recovery ear and delays in this maret season.

business also tity of idle flend iron ore in

ined consisteng the redepl

n rental disco

core rental geing with growpacting FY11

02.5 million anancial year Facross the yeaY10 and FY11.

om operating million from nesses.

rating (pre sign

0 FY11

9 327.2

2 185.3

9 98.3

2 421.2

1 413.8

% 23.8%

defined as av

everaged to louring the yeares (iron ore, f revenue mai

.3 million in FYoss the resouon of 89% (FY

a significant in FY10. Weted the deployket remained

made a majoeet into new Western Aust

ntly high utilisoyment of tw

ontinued oper

eographies wth capex to dbut strong fu

and operatingFY10. The imar (FY10: 72%). The Group

NPAT comprdiscontinued

ificant items)

YOY %

30.4%

31.3%

34.9%

19.9%

8.3%

24.6%

verage ‘investe

ow cost bulk cr 39% of revecopper and cinly from large

Y11 and ROFEurce sector inY10: 78%) and

increase in et weather impyment of a nd intact with

or contributioprojects durintralia translat

sation in FY11wo major fleet

ration has bee

drive earningsundamentals a

g NPAT of $5mprovement i) and additionresult also be

rise a $6.0 m operations r

Sta

FY

270

128

55

388

425

13.

ed capital less

commodity annue was derivconstruction).e contractors.

E improved fron Australia. Tdeployment o

earnings. Thepacted producnew truck fleea strong rec

on to the earnng the secondted into a solid

1 underpinneds into new co

en excluded fr

s in FY12 and prospects

56.0 million wn earnings wnal contributioenefited from

million (post telating to res

atutory (post s

10 FY11

0.7 336.7

8.8 186.2

5.1 96.5

8.0 429.3

5.0 435.7

0% 22.1%

s goodwill’ for

nd metal prodved from coal,. Mining cus.

om 19.1% to 2The improvemof growth cap

e business enction hours ovet to a customcovery in the

nings improved half of FY11d operating pe

d by high actintracts during

om the opera

s exist

were up 13.1were attributaon from the inm exiting unde

tax) debtor imsidual assets

significant item

1 YOY %

7 24.4%

2 44.6%

5 75.2%

3 10.7%

7 2.5%

% 70.9%

r the period.

ducers in Que, 21% from gostomers repre

23.8% reflectiment in earnpital during th

njoyed a full ver a number mer due to roe fourth qua

ement in Aus1. Sustainederformance in

ivity levels in g the year.

ating result.

10

% and 36.3%ble to highernvestments iner‐performing

mpairment inand liabilities

ms)

%

%

%

%

%

%

%

ensland, Newold, 12% fromesent 81% of

ing sustained ings was the e year.

year of high of months in oad closures. rter of FY11

stralia having demand forn FY11.

thermal coal

% r n g

n s

w m f

For

per

sona

l use

onl

y

INDONESIA

A$ m

Rev

EBIT

EBIT

Flee

Fun

EBIT

Emeco obsemining equipthe statutory Operating eacosts that wo The fleet WDof equipmen A new manaquality custo

CANADIAN

A$ m

Rev

EBIT

EBIT

Flee

Fun

EBIT

Canada’s petowards larg The new fleelevels averagmaintenance Whilst an exbusiness deli

AUSTRALIA

A$ m

Rev

EBIT

EBIT

Inve

Fun

EBIT

Emeco’s strathe core rentmargins werleaving comb

AN RENTAL

millions

venue

TDA

T

et WDV at 30 Ju

nds Employed

T ROFE %

rved increasepment. Utilisy result was im

arnings were ould ordinarily

DV decreased nt damaged w

agement teamomers to impr

RENTAL

millions

venue

TDA

T

et WDV at 30 Ju

nds Employed

T ROFE %

erformance ime mining equi

et mix and theging 77.6% (FYe services inco

xtended thaw ivered a signif

AN SALES & P

millions

venue

TDA

T

entory at 30 Jun

nds Employed

T ROFE %

ategy for the Atal business tae sacrificed inbined invento

Oper

FY10

49.3

33.5

15.8

une 84.3

106.6

14.8%

ed activity acration averagempacted by a

further affecty be recharge

by 36.3% durhile being dem

m has been tove utilisation

Oper

FY10

37.8

15.4

3.1

une 105.5

110.0

2.8%

mproved maripment suitab

e continued rY10: 56.9%). ome which co

period and sficant year on

PARTS

Oper

FY10

66.9

2.2

1.9

ne 77.7

85.1

2.2%

Australian Saarget market. n favour of caries of $42.7 m

rating (pre sign

0 FY11

44.6

21.0

8 5.3

53.7

6 80.4

% 6.5%

ross the Indoed 77% acrossdebtor impair

ted in 2H11 aed to the custo

ring FY11 due mobilised.

transitioned in, reduce cred

rating (pre sign

0 FY11

64.9

4 32.6

14.0

5 102.9

0 124.2

% 11.3%

kedly in FY11ble for mine pr

amp up in actIn addition tontributed $1.2

low start to t year improve

rating (pre sign

0 FY11

65.9

0.9

0.3

42.7

57.2

% 0.5%

les & Parts bu In line with tsh release. Omillion at 30 J

ificant items)

YOY %

(9.6)%

(37.3)%

(66.7)%

(36.3)%

(24.6)%

(55.8)%

nesian resours the year (FYrment of $6.0

as Emeco incuomer involved

to depreciatio

into the busindit risk and im

ificant items)

YOY %

71.7%

112.5%

348.0%

(2.5)%

13.0%

296.6%

1 following troduction and

tivity in the Co increasing d2 million in re

the oilsands sement in oper

ificant items)

YOY %

(1.5)%

(59.8)%

(83.6)%

(45.0)%

(32.8)%

(75.6)%

usinesses in Fthis strategy tOver FY11, $2June 2011.

Sta

FY

49

33

15

84

106

14.

rce industry iY10: 76%). De0 million (post

urred $2.7 md.

on of the equ

ness in FY11 mprove returns

Sta

FY

37

7.

(4.

105

110

(4.2

he reconfigurd reclamation

Canadian oilsadry‐hire rentaevenue to the

summer workrating EBIT an

Sta

FY

66

(24

(25

77

85

(29.

FY11 was focuhese business9.9 million of

atutory (post s

10 FY11

9.3 44.6

3.5 13.1

5.8 (2.7)

4.3 53.7

6.6 80.4

8% (3.3)%

n FY11, resulespite positive‐tax) in 1H11.

illion of fleet

ipment and th

with the objs.

atutory (post s

10 FY11

7.8 64.9

.6 32.6

.7) 14.0

5.5 102.9

0.0 124.2

2)% 11.3%

ration of Emeworks in the

nds contributl revenues, thFY11 result.

s program imd ROFE.

atutory (post s

10 FY11

6.9 65.9

4.5) 0.9

5.3) 0.3

7.7 42.7

5.1 57.2

8)% 0.5%

used on exitinses contributeunderperform

significant item

1 YOY %

6 (9.6)%

1 (61.0)

) (116.9

7 (36.3)

4 (24.6)

% (122.4

ting in stronge underlying .

repair and d

he $3.3 millio

jective of tar

significant item

1 YOY %

9 71.6%

6 331.8

0 400.6

9 (2.5)%

2 13.0%

% 366.1

eco’s fleet inoil sands regi

ted to improvhe business a

mpacted 4Q11

significant item

1 YOY %

9 (1.5)%

103.6

101.2

7 (45.0)

2 (32.8)

% 101.8

ng inventory ned a small opeming capital w

11

ms)

%

%

%

)%

%

%

)%

g demand forperformance,

emobilisation

n impairment

geting higher

ms)

%

%

%

%

%

%

%

n this marketon.

ved utilisationlso expanded

1 earnings the

ms)

%

%

%

%

%

%

%

not aligned toerating loss aswas liberated,

r ,

n

t

r

t

n d

e

o s ,

For

per

sona

l use

onl

y

Sustainab

HIGHLIGHT Inaugura Focus on Workpla

SUSTAINAB At Emeco weto contributestrive to posour operatio We believe twith our coinnovative an

MANAGING Over the pasbenefits to a There are tsustainabilityfocuses on owe target gro Enabling ourworkplaces wthrough to othis Sustaina We believe operations a Table 1. FY11

Sustainabi

Risks & Opportunit

REPORTING During the ssustainabilityAccountAbiliand practicecustomers an While we alrhave comprereport publicshareholders

bility Rep

S

al sustainabiln aligning susace, commun

BILITY

e are focused e to a sustainsitively contribns, while deliv

that to be a tompany valuend efficient in

G SUSTAINAB

st year Emecoll stakeholder

three pillars y. “Consistentoperational effowth that is a

r business stwhere Emecoour core valuebility Report.

that this apnd will help u

1 Sustainabili

lity

ties Em

G APPROACH

econd half ofy risks and oty’s (http://ws, an industrynd employees

ready have a ehensively macly on sustains and custome

ort

ity report benstainability effity and enviro

on the long tnable and probute to the covering long‐te

ruly sustainabes, proactiveln all we do.

BILITY

o has executedrs.

of our busint Value Creatficiency withinligned to our

rategy is Emo people are es (behaviours

proach is alrus to achieve o

ity Risks and O

Our People

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f FY11, we unpportunities.

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number of suapped our effoability perforers.

nchmarks exisforts to businonmental targ

erm success ooductive mininommunities inerm, satisfacto

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ability.org/) fivanalysis and a

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of our businesng industry ann which we oory returns to

we need to reour financial

ategies (for b

and they reholders” will ries of our visnd does not s

co’s people sto achieve as discussed in

g to ensure als in a sustain

s

SUSTAINABLE

Our Co

Community

eat deal of intwas guided byve part materan extensive

elated policieshe global Emeommitments

mance ple strategies Y12 and beyo

ss for the bennd to provideoperate and too our sharehol

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usiness and p

epresent ourensure our fsion and valuesacrifice the q

strategy. Empnd succeed. n more detail

that sustainanable manner

E GROWTH

ommunity

y Participation

ternal and exy our Enterprriality test. It instakeholder i

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nd

efit of all our e a great worko mitigate theders.

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Our Environm

onmental ManCarbon and En

ch to identifynagement Fraview of our cucess with pee

his is the firste first year thimportant to

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. Our vision isr people. Wental impact of

e in alignmentcollaborative,

m, sustainable

t to businessise the Core”h” will ensure

k practices atny vision andent section of

our everyday

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nagement nergy

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year that weat Emeco willour business,

s e f

t ,

e

s ” e

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y

l d s ,

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For

per

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To ensure thInitiative (“Gthe informatour profile d This Sustaina Information Sustainability At Emeco, wbroader stakcontinually im

PERFORMA Emeco was ethroughout tsuch, we havwith a summ Table 2. Sust

P

People

Community

Environme

hat our repoGRI”) G3 Guidtion that shouisclosures, ma

ability Report

regarding ry Report, as a

we are commitkeholders. Asmprove our su

ANCE HIGHLI

established inthe Company’ve set ourselvmary of our sus

tainability Per

Performance Areas

Safety

EmployEngage

Diversi

y CommuParticip

nt EnvironManag

CarbonEnergy

rting can be elines. We hauld be includeanagement ap

is self‐declare

ecent envirore the targets

tted to provid we collect mustainability r

GHTS AND T

n Western Au’s four decadves a number stainability pe

rformance an

yee ement

ty

unity pation

nmental gement

n and y

benchmarkedave applied thd in this Sustapproach and p

ed as a C level

onmental, wos for improvem

ding meaningfmore data onreporting appr

TARGETS

ustralia in 197e history. Oneof sustainabierformance to

nd Targets

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Launch of (people strimprovemprojects)

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d within our he GRI’s princainability Repperformance i

l report in acc

orkplace andment that we

ful and relevan material asroach and dis

72 and there e of our core lity targets foo date.

ormance ghts

LTIFR by ately 30%

Empower rategy and ent

ent of a Policy

support mmunity ons and

ng

able ental

d a arbon for the

industry we ciples of mateport and referindicators.

cordance with

d communityhave set for t

nt performanpects of our closures.

have been nCompany va

or the coming

Progress further re

Implemesystem

Build a neimprove employee

Undertaksurvey

Establish

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Identify ocustomer

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have workederiality and cored to the GR

the GRI.

developmenthe year ahea

ce informatiosustainability

umerous milelues is Continyear. These a

FY12 PerfoTarge

towards zeroeduction in ou

nt contractor

ew company‐wglobal collaboes more effici

ke a second co

a training pla

e to engage emment and impr communicatment projects

measureableforce diversity

opportunities rs on diversity

a global apprtion

table environ

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our carbon ann processes

opportunities rs on equipme

d to the Globompleteness RI to guide the

nts is presed.

on to our shary performanc

estones and anuous Improveare shown in

ormance ets

o harm througur LTIFR

safety manag

‐wide intranetoration and toiently share in

ompany‐wide

an for each em

mployees throlementation otion activities s

e targets and oy

to collaboraty initiatives

roach to comm

nmental incide

mers to meet tollection need

nd energy dat

to collaboratent and fuel e

13

bal Reportingto determinee reporting of

nted in this

reholders ande we plan to

achievementsement and asTable 2 along

h a

gement

t to o help all nformation

culture

mployee

ough the of and

objectives

e with

munity

ents

heir ds

ta

e with our efficiency

g e f

s

d o

s s g

For

per

sona

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PEOPLE

SAFETY Our number available in t This Policy his further sureporting to Over the pasto report thaare proud of We remain performance Enh

lead

Bey

imp

Dev

to s

Broa

driv

Over the cooperations a A key focus believe this nalignment w

Case Study For the sepeople haprogramm This is a gwith on a a safe wor

EMPLOYEE At Emeco, w In Australia, working acrounderstand tcontribute to Following anby employee Empower is continually s

one priority the Investor C

elps us to comupported by the executive

st few years tat this has traf the commitm

committed te. In the past y

anced the lev

dership team a

ond existing

lemented sta

veloped a Trai

upervisor and

adened toolb

ving and gener

ming year wend collaborat

for FY12 wilnew CSMS wiith our global

dy: Recognisin

econd year ins been recogn

me for being a

great achievemdaily basis anrking environm

ENGAGEME

e are commit

our workfoross our Indonethe goals of to the achievem

n internal cultes and develop

the overarchtrive to be a b

across EmecoCentre area of

mmunicate peour compan

e leadership te

he entire busnslated into mment made by

to maintaininyear we have

vel of detail re

and Board of

site safety p

te‐based safe

ning Matrix t

d employee sa

box talk discus

ral health

e will continue with our cu

l be the impll help ensurecommitment

ng Great Safet

n a row Emenised by the InZero Acciden

ment given thd we believe ment for Eme

ENT

ted to providi

rce of employesian and Canthe business (ment of those

ure survey in ped a strategy

hing name webetter busines

o is safety. Weour website (

erformance eny‐wide Occueam and the E

iness has liftemeasurable rey all Emeco em

g our focus implemented

elating to safe

Directors

plans we cond

ty improveme

o support the

afety skills trai

ssions to incl

ue to work wstomers to as

lementation e that Emeco’t to safety and

ty Efforts

co’s Indonesindonesian Gont (Lost Time I

he challengingthat this awaco people and

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14

h is publically

rs. This Policyperformance

e are pleasedTIFR”) and we

ss our safety

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business and

ent approach

tagging, safe

oss all Emecoes.

“CSMS”). Weerformance in

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In August 20feedback wilour ongoing

DIVERSITY Diversity in oour Diversity To date, weworkforce dithe future. (www.emeco

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COMMUNIT Emeco is comprovide finansupporting e During FY11 Fund, Ora BaQueensland floods exper In Canada weSkating Club,celebrations In Indonesia facilities. Ouparticipationrecruitment

as introducedin August 201

months to 30 ore solid foun

ployee culturevelopment of a

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ht further ford in light of ouon and engag

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PATION

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ted to the foovember, St Bood Relief Appuary 2011.

d to: United Wn Institute of

used on provialso assist witsists with buil

ustralian and

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nsideration fo

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t levels and fer”). Initial impr

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aches to estab

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part of Empow

to launch anw Vision, Missi

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groups in Auree Appeal. Wties of Queen

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experience inin schools. Thhe workforce,

of FY11 and w

n implementeco people:

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nd drive hum

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d measureabment diversity e area of

operates. As a. We are also c

ustralia: Save We also contrnsland follow

Wellness CentrFort McMurra

n our workshohis approach t it also assist

15

was launched

d as we work

vement. cluded;

and accessible

man resource

Australia and

cation to all

e survey. Thisrporated in to

we developed

le targets forinitiatives forour website

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During FY12coordinated developed foemployees a

Case Stud In Canadarun Fort Mwith the This partnavailabilit This coorservices,

ENVIRONM ENVIRONM We acknowleGroup Envi(www.emecocontractors a Environmentcollaborate wand proceduwaste dispos Environmentperformance We are pleafinancial yea

Case Study Waste macollected streams. All Emeco To mitigatexperiencemanagem As an exaoffsite forat a local power stabase oil wproducts.

2, we will beapproach andor the long tend customers

dy: Business a

a we have estMcKay Groupmaintenance

nership provity and reliabil

rdinated apprimproving the

MENT

MENTAL MAN

edge that Emronmental Pogroup.com). and customer

tal managemewith our custoures. At this posal and water

tal incidents e is reported t

ased to reporr.

dy: The Good O

anagement pas a result o

workshops h

te the impacted licensed lient, collection

ample, Emecor recycling andfacility. The wtion boiler fuwhich is then

e working tod greater benerm and bases.

and Communi

tablished a co of Companieof their entire

des the Fort Mity, cost contr

roach will alloeir reputation

NAGEMENT

eco has a resPolicy which This Policy

rs.

ent and compomers to ensuoint in time, omanagement

associated wto the executiv

rt that Emeco

Oil

practices at wf equipment

ave wash bay

t of this wastequid waste cn and recyclin

o’s Rutherfordd reprocessinwaste oil is reel and bitumere‐sold local

develop a gefits to commd on feedbac

ity Working T

llaborative bus. Through the equipment f

McKay Grouprol and in mai

ow the Fort Mn and growing

ponsibility to is publical

helps us to c

pliance is an iure that we mour approach t.

ith our operave leadership

o did not exp

workshop facmaintenance

ys to collect oi

e oil on the eontractors tong processes a

d maintenancg each year. Aprocessed inten products. Sly and overse

global commmunity groupsck from a ran

Together

usiness partnehis partnershipfleet.

p of Companieintenance effi

McKay Group their busines

minimise its ly available communicate

important conmeet the obligto environme

ations are tra team and the

perience any

cilities are a e and servicin

ly water and t

environment, collect, treatare in place at

ce facility collA licensed coto a number oSome of this eas as a wide

munity particips in Australia, ge of localise

ership with thp we have com

es with the beiciency.

to focus onss.

impact on thein the Inv

e our perform

nsideration fogations of theental manage

acked and repe Emeco Boar

reportable e

key focus fog activities fo

tanks which te

we engage tht and recycle t all Emeco ma

lects and senntractor colleof different pwaste oil is ae range of co

pation plan tIndonesia andd stakeholde

e local indigemmitted to as

enefits of incr

providing qu

e environmenvestor Centremance expect

or our businesir onsite policment is focus

ported througd on a month

nvironmental

or Emeco. Worms one of o

emporarily co

he services ofthe waste oiaintenance wo

ds over 200,0ects and reproroducts for lolso further refmmercially a

that will prod Canada. Thir groups as w

nous First Natssist their bus

reased equipm

ality earthmo

nt. We have ae area of tations to ou

ss and our cucies, managemsed on oil use

gh our onlinehly basis.

l incidents du

Waste oil prodour largest w

ollect disused

f professionalil offsite. Effeorkshops.

000L of wastocesses this wocal use, inclufined into graavailable oil b

16

ovide a moreis plan will bewell as Emeco

tions iness

ment

oving

n establishedour websiter employees,

ustomers. Wement systemsand disposal,

e system and

uring the last

ducts waste

oil.

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CARBON AN For the past calculated inthis baselinecorporate cli This work hawaste dispogreenhouse (“NGER”) Actconsidered tEmeco is cur While it is nocustomers rcustomers anshared susta During FY12 data and furt

ND ENERGY

3 years, Emecn alignment we informationmate change

s identified thosal. The comgas emissionst, responsibilito be in operarrently operat

ot our responseduce their nd explore eqinability goals

we will use lether analyse o

co has capturwith the intern to the Carbinformation i

hat most of oumbustion of fs. However, uity for the geational controing well unde

sibility to inclucarbon and equipment effics.

earnings gaineour own perfo

red a baselinenational bestbon Disclosurn the world. O

ur emissions afuel during thunder the Ausneration and ol of the equipr the corporat

ude these emenergy impacciency opport

ed through theormance and p

e carbon footpt practice Grere Project (“COur CDP subm

are associatedhe use of oustralian Goverreporting of pment once itte thresholds

issions in our cts. Over thetunities that w

e baseline assprocesses to i

print for its gloeenhouse GasCDP”). The Cmission will be

d with energy ur equipmenrnment’s Natithese emissiot is in use at tset out by th

carbon footpe coming yeawill assist our

sessment procdentify oppor

obal operatioProtocol. WeDP is the lare available at w

use in our but was identifonal Greenhoons lies with otheir sites. Bae Act.

rint, Emeco isar we will cocustomers an

cess to collectrtunities for im

ons. Our carboe have publicrgest databaswww.cdproje

uildings, fleet, fied as a larouse and Eneour customerased on our m

s committed tontinue to wnd Emeco in

t robust carbomprovement.

17

on footprint iscally reportedse of primaryct.net.

air travel andge source ofrgy Reportingrs as they aremeasurements

to helping ourork with ourachieving our

on and energy

s d y

d f g e s

r r r

y

For

per

sona

l use

onl

y

DirectorsFor the yea

Directors The Directorreports of thended 30 Jun

Current DThe current D

Alec Brenna Alec was appsince 28 Nov Alec was Chifrom the Unand Chair of Alec is Chairm

Robert (“Bo Bob was appin ProductioAustralia and Bob is a formrecently BobInternationahaving worke Bob is a mem

John Cahill, John was app John is the fohas over 25managemenas Western Committee. Foundation. President an John is Chair

s’ Report ar ended 30

s

rs of Emeco Hhe consolidatene 2011 (“FY1

Directors Directors of th

an, (Age 64),

pointed an Invember 2006.

ief Executive iversity of NSits Finance Co

man of the Re

ob”) Bishop,

pointed as an n Engineeringd a Fellow of t

mer Managingb was the Chl GmbH (DSI),ed in the UK, S

mber of the Au

, (Age 55), In

pointed as an

ormer Chief E5 years’ expet. He is a NonPower and cJohn is also John is a Grd Director of

man of the Au

0 June 2011

Holdings Limited entity, bei11”).

he Company a

, Chairman a

ndependent, N

Officer of CSRSW. He is Chaommittee and

emuneration a

(Age 66), In

Independent,g from the Uthe Australian

g Director of hief Executive, a position heSouth Africa,

udit and Risk C

ndependent

Independent

xecutive Officerience workn‐Executive Dchairs its Finaa Non‐Execu

raduate MemCPA Australia

udit and Risk

1

ted (Emeco ong Emeco an

are:

and Indepen

Non‐Executive

R until March airman of PPId its HR Comm

and Nominatio

dependent N

, Non‐ExecutivUniversity of Bn Institute of C

Joyce Corpore Officer of te held from 2and Europe.

Committee.

Non‐Executi

t, Non‐Executi

cer of Alinta Inking in the eirector and Dance and Riskutive Directomber of the A Ltd.

Committee an

or the Compand its controll

ndent Non‐Ex

e Director in

2007. Alec h Corporation

mittee and a m

on Committee

Non‐Executiv

ve Director onBirmingham, Company Dire

ration Ltd (19the global m2003 to 2008.

ive Director

ive Director o

nfrastructure energy utilityDeputy Chairmk Committee or of Silver CAustralian Ins

nd a member

any) present ted entities (t

xecutive Dire

August 2005

olds an MBA Pty Ltd, a Fe

member of the

e and a memb

ve Director

n 22 June 200UK, and is a

ectors.

89 to 1994) aining and tunBob has exte

n 15 Septemb

Holdings andy sector in tman of Electricand is a me

Chain Nursingstitute of Com

of the Remun

their report the Emeco Gro

ector

and has held

from City Unllow of the See ASIC Externa

ber of the Aud

09. He holds aMember of

and Dorsognannelling divisensive interna

ber 2008.

Chief Financireasury, finacity Networksember of the Association mpany Directo

neration and N

together withoup) for the

d the position

niversity, Londenate of Sydnal Advisory Pa

dit and Risk Co

a Master of Scthe Institute

a Ltd (1994 toion of DYWItional busine

ial Officer of Aance, accounts Corporation People and Inc and theors and a Fe

Nomination C

18

the financialfinancial year

n of Chairman

don and a BScney Universitynel.

ommittee.

cience Degreeof Engineers

o 1997). MostDAG Systemsss experience

Alinta Ltd andting and riskwhich tradesPerformance Silver Chainellow, Deputy

Committee.

l r

n

c y

e s

t s e

d k s e n y

For

per

sona

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y


Keith Gordo Keith was ap Keith has haEmeco with m He has a stroBachelor of AAustralia.

Peter Johns Peter was ap Peter is curroccupied sin Peter is a graMetallurgy aand is ChairmEnergy WA aResources Li Peter is a me

Peter Richa Peter was ap Peter is a fo2005 until JuAmerica and Currently, PeNFK), NSL CoKangaroo Re Peter holds a Peter is a me

Company Michael Kirkand companfirms. MichaDegree with

s’ report car ended 30

on, (Age 47),

ppointed as M

ad an extensivmore than 10

ong record of Agricultural Sc

ston, (Age 60

ppointed as an

rently Managce December

aduate from tand a Fellow oman of the Miand a Directormited.

ember of the R

ards, (Age 52

ppointed as an

ormer Chief Exune 2008. P Dyno Nobel A

eter is a non‐onsolidated Lesources Limit

a Bachelor of

ember of the A

y Secretar

patrick was ay secretary ofael holds bachmerit honour

contd. 0 June 2011

, Managing

anaging Direc

ve career in t0 years’ experi

achieving valcience with Ho

0), Independ

n Independen

ging Director 2001. He pre

the Universityof the Australinerals Councir of the Austra

Remuneration

2), Independe

n Independen

xecutive Officrior to this, PAsia Pacific Lim

‐executive dirLimited (ASX cted (ASX code

Commerce fro

Audit and Risk

ry

appointed Comf a large induhelor degreesrs from Murdo

1

Director and

ctor of Emeco

the industrialence with We

ue creating gronours and a

dent Non‐Exe

t, Non‐Execut

and Chief Exviously held s

y of Western an Institute oil of Australia.alian Mines an

n and Nomina

ent Non‐ Exe

t, Non‐Execut

cer of Dyno NPeter had hemited. Peter

rector of Bradcode: NSL) an: KRL) and Min

om the Unive

k Committee.

mpany Secretstry superanns in arts and och University

d Chief Execu

o Holdings Lim

ls sector withesfarmers Lim

rowth througMaster of Bu

ecutive Direc

tive Director o

xecutive Officsenior executi

Australia. Heof Company D. Peter is on thnd Metals Ass

ation Committ

ecutive Direc

tive Director o

Nobel Limitedld a number was at Wesfa

dken Limited nd Sedgman Lnbos Resourc

rsity of Weste

tary in April 2nuation fund,economics fry.

utive Officer

mited on 1 Dec

h significant smited, where h

h innovation asiness Admin

ctor

on 1 Septemb

cer of Minarave positions w

is a Fellow oDirectors. He ishe Executive Csociation. He i

tee.

ctor

on 14 June 20

in Australia, of senior exe

armers Limited

(ASX code: BLimited (ASX es Limited.

ern Australia,

005. Michael and as a corrom the Univ

r

ember 2009.

enior leadershe held a num

and disciplineistration from

er 2006.

Resources Lwith WMC and

f the Australis a past ChairmCouncil of Thes a non‐execu

10.

and held thisecutive positid from 1990 u

KN), Norfolk code: SDM) a

majoring in ac

has previousporate lawyerversity of We

ship experienmber of very se

ed strategies. m the Universit

Limited, a pod Alcoa.

ian Institute oman of the Ne Chamber of utive director

s position froions at Dyno until 1995.

Group Limiteand he is the

ccounting and

sly worked as r with severaestern Austral

19

ce. He joinedenior roles.

Keith holds aty of Western

sition he has

of Mining andickel InstituteMinerals andof Silver Lake

om DecemberNobel North

ed (ASX code:e Chairman of

d economics.

legal counsell national lawia and a Law

d

a n

s

d e d e

r h

: f

l w w

For

per

sona

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Directors The number Directors of t

A – Number B – Number ** Not a mem

Dire

Alec Brenna

John Cahill

Keith Gordo

Peter Johnst

Peter Richar

Robert Bisho


s’ Meeting

of meetings the Board and

of meetings aof meetings hmber of this C

ector

n

n

ton

rds

op

contd. 0 June 2011

gs

of the Directod Committees

attended held during thCommittee

A

13

13

13

13

12

13

Board Me

1

ors held durins are outlined

e time the Dir

B

13

13

13

13

13

13

eetings

ng the year ain the table b

rector held of

A

5

5

5**

4**

5

5

Audit & Risk

nd the numbebelow.

ffice during th

B

5

5

5**

5**

5

5

k Committee

er of meeting

e year

A

2

2

2**

2

1**

1**

R

& Nom

gs attended b

*

*

*

Remuneration

mination Comm

20

y each of the

B

2

2

2**

2

2**

2**

n

mittee

e

For

per

sona

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y


Corporat Under ASX Lextent to wrecommenda This corporareference toCouncil, inclAmendment Emeco is pleGovernance Principle 1 Roles and re Board Charte The Board ha The Charter s

the Boar

individua

the Chai Under the Chmanagemen

develop

evaluatiCompan

determi

evaluatidivestitu

reviewinconduct

evaluati

ensuring

approvin

appointiRisk Com

appointi


te Governa

Listing Rule 4which it has ations set by t

te governanco the reviseduding those s issued in Jun

eased to repStatement be

Lay solid

esponsibilities

er

as adopted a C

sets out the r

rd;

al Directors; a

irman.

harter the Bot of its affairs

ing, providing

ng, approvingny;

ning dividend

ng, approvingures and othe

ng, ratifying a and legal com

ng and monit

g appropriate

ng all account

ing, re‐appoinmmittee); and

ing, monitorin

contd. 0 June 2011

ance State

4.10.3, the Cofollowed thethe ASX Corpo

e statement r ASX Principwhich took ene 2010 (2010

ort that it haelow.

d foundations

s of the Board

Charter that d

esponsibilities

and

ard is accoun. Key respons

g input into, an

g and monit

policy and th

g and monitorr corporate tr

nd monitorinmpliance;

oring annual b

resources are

ting policies, f

nting or removd

ng and manag

1

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ompany is reqe principles oorate Governa

reports on thles and ASX effect in their0 Amendmen

as followed e

s for managem

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details its func

s of:

table to the ssibilities of the

nd final appro

oring the str

he amount and

ring major capransactions, in

ng systems of

budgets and b

e available to

inancial repor

ving the Com

ging the perfor

quired to inclof good corpance Council (

e Group’s curRecommendr revised formts).

each of the A

ment and ove

ement

ctions and res

shareholders fe Board includ

oval of corpor

rategic and f

d timing of all

pital expenditncluding the is

risk manage

business plans

senior execut

rts and extern

pany’s extern

rmance and r

ude in its anorate govern(ASX Recomm

rrent corporaations adoptm from 1 Jan

ASX Recomme

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sponsibilities.

for the overade:

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financial plan

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s;

tives;

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nual report anance (ASX Pmendations).

te governanced by the ASnuary 2008, a

endations as

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management ties;

ernal complia

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on recommen

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a statement dPrinciples) an

e practices anSX Corporateand the seco

set out in t

ce of the Com

rmance obje

and all major

ance and cont

Group;

ndation from t

Directors.

21

disclosing thend associated

nd policies bye Governancend edition of

he Corporate

mpany and the

ctives of the

r acquisitions,

trol, codes of

the Audit and

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DirectorsFor the yea The Charter Committee aconduct of thon which Dir A copy of the Delegated Fi Under the tefor the day‐tstructured DChief Executauthority. The DFA ens

contract

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sets a minimand the Remuhe Directors, rectors are ab

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inancial Autho

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s are expectedn an “as needffect the oper

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contd. 0 June 2011

mum number uneration andwhich are furle to obtain in

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tract commitm

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pertise of the

mprised of sixDirectors conshe Company,

d to maintainded” basis, wrations of the

description of

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the Chief Exehe Group. Asty (“DFA”) whg Director.

ments and exp

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of assets for t

ract and expement tool to e

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ctor is regular

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edures in placl position, str

to add value

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n the skills rewith papers, pGroup.

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any’s Code of

ecutive Offices noted in thehich outlines tThe Board a

penditure is li

e of business;

n the day to da

the purpose o

enditure comensure adequa

rly monitored

executive withformance revw the executess the seniorior executive

ce to introdurategies, oper

with five Non‐Eectively they ers and other

equired to dispresentations

nd experience

rovides for thThe Charter aCompany’s Codvice at the C

f Conduct are

er and Manage Board Charthe specific finapproves and

imited to:

ay running of

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mitment for eate controls a

d by the Non‐E

hin the Emecoviews provide ive’s performr executive’s was undertak

ce new seniorations and ri

Executive Direhave the rele stakeholders

scharge their and briefings

e are set out a

he establishmalso sets minode of Conduompany’s exp

available on t

ing Director irter, the Boarnancial autho monitors th

the business)

ome).

employees acre in place wh

Executive Dire

o Group are cothe Managing

mance againstpersonal and ken during FY1

or executives sk manageme

ectors, includievant skills, ex.

duties to thes on Group b

t pages 18 to

ment of the Aimum standauct, and specifpense.

the Emeco we

s responsiblerd has formarity limits delhis delegation

); and

cross the Grohen committi

ectors.

onducted by tg Director ant a range of professional 11.

to the Groupent and othe

ing the Chairmxperience and

e Company. businesses an

19 of this rep

22

udit and Riskrds of ethicalfies the terms

ebsite.

to the Boardlly adopted aegated to then of financial

up. Authorityng the Group

the Managingd each seniorfinancial anddevelopment

p and gain anr policies and

man, and oned expertise to

Directors ared on matters

port.

k l s

d a e l

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g r d t

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e s F

or p

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nal u

se o

nly

DirectorsFor the yea Status of the The table beDirectors, thmeeting of th Table 2 – Sta

Director

Mr Alec Bre

Mr Keith G

Mr Peter Jo

Mr John Ca

Mr Robert

Mr Peter R

Mr Brennan,bring indepeset out in thehas had regathat the Boa The Board asother Directothe relationsCompany, th The Compan The one Direof the Group The ChairmaRecommend


e Directors

elow sets outeir date of aphe Company.

atus of the Dir

ennan

Gordon

ohnston

ahill

Bishop

Richards

Mr Johnstonendent views ae ASX Principard to the relard considers t

ssesses the inors annually aship and thehe Director, an

y therefore co

ector who is np, is Mr Keith G

an of the Boaation 2.2.

contd. 0 June 2011

t details of thppointment an

rectors

Date

16

1 D

1 Se

15 S

2

1

, Mr Cahill, Mand judgemenles and ASX Rationships affeto be relevant

ndependence and as apprope circumstancnd the person

omplies with A

ot consideredGordon, the C

rd is Mr Bren

1

he status of nd whether th

of appointme

6 August 2005

ecember 200

eptember 200

eptember 200

22 June 2009

14 June 2010

Mr Bishop and nt to the BoarRecommendatecting their int.

of new Direcpriate. The teces of the Di or entity with

ASX Recomme

d to be indepeChief Executive

nnan, an Indep

each of the hey are seekin

ent Inde

5

9

06

08

Mr Richards ard’s deliberatitions. In consindependent st

ctors upon apest of whetheirector. Math which the D

endation 2.1.

endent, due toe Officer and

pendent Dire

current Direcng election or

ependent

Yes

No

Yes

Yes

Yes

Yes

are Independeons. All of thidering whethtatus and oth

pointment aner a relationshteriality is coDirector has a

o his involvemManaging Dir

ctor, and the

ctors as Indepr re‐election a

Non‐execu

Yes

No

Yes

Yes

Yes

Yes

ent Directors.em satisfy theher a Director er facts, infor

nd reviews thehip is materialnsidered fromrelationship.

ment in the marector.

Company the

pendent or Nat the 2011 an

utive Sere

. Directors are criteria for iis independermation and c

eir independel is based on m the perspe

anagement an

erefore comp

23

Non‐Executivennual general

eeking electioe‐election at 2

AGM

Yes

No

No

Yes

No

No

e expected tondependenceent, the Boardcircumstances

ence, and thethe nature ofective of the

nd operations

plies with ASX

e l

on or 2011

o e d s

e f e

s

X

For

per

sona

l use

onl

y

DirectorsFor the yea Directors’ re Under the teor seek re‐ewhichever is At least oneresolution ofmeeting und Under the Coto the Boardfor re‐electio The Board hprovide that

have

have any oconsid

have a

have prefe

have

be avcomm

be ab

have Direct

Candidates rIf it is necesspotential bas Procedures f Under the Boconnected wis available o In addition, aof the Compfinancial and The General required.


etirement and

erms of the Celection by nthe longer.

e Director muf the Compander this provis

ompany’s con. Any Directoon at, the next

has establishean incoming

no actual or p

no prior advether serious cderation as a

a deserved re

extensive exrably with a li

high level stra

vailable and wmitment to the

le to work ha

skills, experietors.

recommendedsary to appoinse of possible

for seeking in

oard Charter,with the dischaon the Emeco

all Directors hany and inford operational r

Counsel is M

contd. 0 June 2011

d re‐election

ompany’s conno later than

ust retire fromny’s shareholdion.

nstitution the or, except a Mt annual gene

ed criteria forDirector must

potential conf

erse history. Acriminal convicandidate;

eputation for h

xperience at sted company

ategic, financi

willing to deve Group and it

rmoniously w

ence and know

d for appointmnt a new Direccandidates is

formation an

, a Director isarge of their dwebsite.

have unrestricrmation held breports from s

Michael Kirkpa

1

nstitution, a Dthe third an

m office at eders. Mr Brenn

Directors havanaging Direceral meeting fo

the appointmt:

licts of interes

A potential caniction, ASIC or

honesty, integ

a senior exey;

al and comme

vote the timets success;

with fellow Dire

wledge which

ment as new ctor to fill a vs considered.

nd taking inde

entitled to seduties in acco

cted access toby Group empsenior manag

atrick. Each o

Director othernnual genera

each annual gnan and Mr C

ve the power tctor appointeollowing his o

ment of Non‐

st at the time

ndidate’s banr APRA disqua

grity and com

ecutive level

ercial capabili

e required to

ectors and Ma

h complement

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ependent and

eek professioordance with t

o employees oployees and egement to ena

of the Directo

r than the Mal meeting aft

general meetiCahill will seek

to appoint Dird in this way or her appoint

‐Executive Di

of appointme

nkruptcy, a coalification etc

petence;

in a field re

ty;

o meetings an

anagement;

t the skills, ex

ve Directors ae Board or to

professional

onal advice at the procedure

of the Group axternal advisoable it to carry

ors has access

anaging Directter their app

ng, unless dek re‐election a

rectors to fill amust retire froment.

rectors of the

ent;

nviction for awould disqua

levant to the

nd Company

xperience and

re consideredcomplement

advice

the Companye set out in th

and, subject toors. The Boary out its duties

s to the Gene

tor must retirpointment or

etermined otat the 2011 an

a vacancy or aom office at,

e Company. T

an offence of alify a person

e Group’s op

business and

d knowledge

d by the Boar the existing B

y’s expense ohe Charter, a c

o law, access rd receives regs.

eral Counsel

24

re from officethree years,

herwise by annual general

as an additionand is eligible

These criteria

dishonesty orn from further

perations and

d have a real

of incumbent

d as a whole.Board, a wide

on any mattercopy of which

to all recordsgular detailed

as and when

e ,

a l

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n For

per

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DirectorsFor the yea Remuneratio The Compan

critically

periodicthe Com

reviewinBoard.

Members of Charter of th Process for e A review of tRemuneratioRemuneratioperformance Directors’ quChairman anto the Boardanalysed by t Principle 3 The Companthemselves recognised th The CompanConduct, ShContractors o The Code of The Code of The objective

high staemploym

employeprofessio

all persoguided b


on and Nomin

y has establis

y reviewing th

ally assessingmpany; and

ng the memb

the Remunerhe Remunerat

evaluating the

the performaon and Nomion and Nomine of the Board

uestionnaire nd, where appd by the Chaithe Managing

Promote

ny considers tethically in ahat it should a

ny has adopteare Trading of the Compa

Conduct

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es of the Code

andards of coment with the

ees are awareonal manner;

ons dealing wby the stated v

contd. 0 June 2011

nation Comm

shed a Remun

e performanc

the skills req

ership and pe

ration and Notion and Nomi

e Board, its Co

nce of the Boination Commnation Commd, its Committ

responses (opropriate, discirman. In relg Director and

e ethical and

that confidenall of their coactively prom

ed a Code of Policy and Dny and its sub

updated in FY

e of Conduct a

orporate and e Company or

e of their respoand

ith Emeco, wvalues and pr

1

ittee

eration and N

ce and effectiv

uired to disch

erformance o

omination Comination Comm

ommittees an

oard was committee. The rmittee using aees, the Chair

other than in cussed with thation to the

d discussed wi

responsible d

ce in its integommercial deote ethical co

Conduct, a SDiversity Policbsidiaries.

Y11 to reflect

are to ensure

individual bea subsidiary;

onsibilities un

hether it be eactices of Eme

Nomination Co

veness of the

harge the Boa

of other Board

mmittee are Mmittee is availa

nd Directors

mpleted in Mareview was ua comprehensrman and indi

relation to he Board. AnChairman, Dith the Board.

decision‐maki

grity can onlyealings on thonduct among

Share Tradingcy apply to a

the 2010 Ame

that:

ehaviour are

nder their con

employees, sheco.

ommittee, the

Board and its

rd’s duties, ha

d Committee

Mr Brennan (able on the Em

rch 2011 by tundertaken insive questionividual Directo

the Chairmann analysis of tirectors’ ques

ing

y be achievede Company’sgst its employe

g Policy and inall Directors,

endments.

observed by

tract of emplo

hareholders, s

e responsibilit

individual me

aving regard t

s and making

Chair), Mr Cameco website.

the Chairman n accordance naire, the scoors.

n) were collahe questionnstionnaire res

d if its emplo behalf. Theees, officers a

n FY11, a DivOfficers, Em

all employee

oyment and a

suppliers, clie

ties of which i

embers;

to the strategi

g recommend

ahill, and Mr J.

with the assi with the Chope of which

ated and anaaire results wsponses were

oyees and offe Company hand contracto

versity Policy.mployees, Con

es in the con

always act in a

nts or compe

25

nclude:

ic direction of

dations to the

Johnston. The

istance of theharter of theh covered the

alysed by thewas presented collated and

icers conducthas thereforers.

The Code ofnsultants and

ntext of their

an ethical and

etitors, can be

f

e

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For

per

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DirectorsFor the yea Under the Co

act honewhole;

conduct employe

always a

report aCompan

not permexpectat

The Companthe Code ordisadvantageare dealt wit Directors areinterest arise The Board haand the relatany new mat Where a mamust not be passed a resCorporations The Compan(unless it is n The Companmanaged at in considerat Further, the communities The Share Tr The principathe prohibitipossibility thlimiting tradimeeting. The Companto. Employeeyear results, periods, and Copies of the


ode of Conduc

estly and in g

their personee’s personal

act in a manne

any actual or ny Secretary; a

mit or condontion of prefer

ny actively pror other unlawed in any wayth promptly an

e required to e. Directors a

as adopted thtionship of thterial persona

tter in which present whensolution to ens Act 2001.

ny will only unecessary to p

ny’s approacha corporate letion of social,

Company is cs around whic

rading Policy

l objective of ons on insidehat misundersting to fixed pe

ny has appropes are advisedand after thea copy of the

e Code of Con

contd. 0 June 2011

ct, employees

good faith at

nal activities interests and

er that is in co

potential breand

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omotes and ewful or unethy for reportingnd fairly.

avoid conflictre also requir

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a Director han the matter inable that Dir

use an emploprotect health

h to communevel with inpuenvironment

committed toch it may oper

the Share Trar trading conttandings or sueriods comme

riate compliad of the opene annual genee Share Tradin

nduct and the

1

s of the Emeco

all times and

in a mannethose of the C

ompliance wit

aches of the

g of paymentt for themselv

ncourages ethical conductg violations of

ts of interest ed to advise t

mal standing nto the affairs if there is any

as a material is being considector to do s

yee’s persona and safety, o

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o maintaining rate.

ading Policy istained in the Cuspicions ariseencing after th

nce standardsning and closieral meeting. g Policy accom

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o Group must

d in a manner

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ts, gifts, favouves or the Com

hical behaviot in good faitf the Code or o

and immediathe Company

notices in wh of the Compy change in th

personal intedered or voteso or the mat

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ents (for examusiness. It seemic impacts.

mutually ben

s to raise awaCorporations Ae from emplohe release of

s and proceduing dates of e Employees ampanies these

g Policy are av

t, amongst oth

r which is in t

wful and avo

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urs, bribes, fampany.

our and protecth. The Comother unlawfu

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ich Directors any. A Directe nature or ex

erest is being e on the mattetter comes wi

n for the purby law).

mple sponsoreks to conduct

neficial sustai

areness of, anAct 2001. Theyees and offichalf and full y

ures in place teach trading pare remindede reminder no

vailable on the

her things:

the best inter

oids conflicts

of the countr

or the Comp

cilitation paym

ction for thospany ensuresul or unethica

heir fellow Dirnt interests th

disclose any mtor is requiredxtent of a pre

considered ber, unless all othin a catego

rposes for wh

ships and dot its operation

nable relation

nd minimise ae policy is alsocers trading inyear results an

to ensure the period after tof the releva

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e Emeco webs

rests of the C

of interest

ry in which the

any’s other p

ments or kick

se who reports that emplol conduct and

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material persod to notify theeviously disclo

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hich it has be

onations) is ans in a sustain

nships with th

ny potential fo intended to n the Compannd after the a

policy is propthe release ofant dates for

site.

26

Company as a

between the

ey work;

policies to the

k‐backs in the

t violations ofyees are notd that matters

d a conflict oft in a conflict.

onal interestse Company ofsed interest.

that DirectorDirectors haveon under the

een disclosed

approved andnable manner,

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for breach of,minimise the

ny’s shares, bynnual general

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impleme Members of Managing Diattend the mthe external The Audit anEmeco webs Details regarIndependent Details of thFY11, the Co Independenc The Companreviewed by independencappointment Independenc The Corporathe Board, dand the rulesFY11. This ireport.


licy

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tions Act 200eclaring that s of the profendependence

contd. 0 June 2011

ence formal to establish ag a framewor

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tiveness, perfomes necessattee will form

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f the Committ

FY11, the Com

t pages 18 toere present fo

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nan and Mr Ronsidered appeets from time

tee and is ava

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o 19 of this ror each of the

ce of the exterauditor for peolicy for the s

e declaration, the Corporatieclaration to on page 52 o

27

the Companyversity, and toolicy is on the

Board on the

esponsibilities

he system ofocess, and thend

Richards. Thepropriate maye to time with

ailable on the

prised of four

eport. Duringse meetings.

rnal auditor iserformance orselection and

addressed toions Act 2001the Board forof this annual

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A copy of thincluded in t Details of fee Rotation of l Mr R Gambiappointed as Attendance The lead audaudit and the Principle 5 The Compandisclosing to manner. The Compan The Continucontinuous drelation to thof these oblcomply with responsibilityadministerin The policy spprocedures fCompliance w


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contd. 0 June 2011

the Company’

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ecifies the pe policy sets oles and respopro‐active aptter of the ASXrdinating the

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rate governan

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eral meeting

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es adopted by

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n 307C of the

in Note 8 of t

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the Emeco w

Company enson and decisy’s officers andsclosure and quirements. Tn by the Com

k publicly on bs with marketommittee, and

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or and is satisd did not com

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uditor indepen reviewing orany, acting as

e Corporation

the financial r

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s about the coeral meeting.

r the ASX Listiin a timely an

website.

sures compliasion making pd employees irequires the

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behalf of the Ct rumour andd also by the B

28

heir statutory

sfied that thempromise, the

y;

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s Act 2001 is

report.

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contd. 0 June 2011

the rights of

ges the impogeneral meep. In June 201implementedrs. This is on t

s are also posfull text of noChairman’s ad

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1

shareholders

rtance of effeetings, which 11, the Comp by the Comhe Company’s

sted on the Cootices of meetddress at the a

ons to sharehowhen paymentreceive email

y to ask questice of generaalso requests ut the conduc

ge risk

ent is fundamd. The Board, sses and polici

ment Policy. Ies to ensure thogramme inceco’s Risk Man

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isk consequen

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atabase for co

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esponsible fow the Risk Man

s

ective commuare a major any adoptedmpany to facs website.

ompany’s wetings and expannual genera

olders in relatt advices, ann notification o

stions of the al meetings ofits auditor toct of the aud

mental to soun with assistanies in place to

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financial and c

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ommunicatin

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tion to electronual reports, nof important a

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nd managemence from the Ao identify, asse

mplemented agement concolvement of sogramme are:

compliance ris

hood;

d regional‐ba

g and updatin

nternal controrisks to senior

the effectiveicy on an ann

h its shareholdareholders to

mmunications munication be

ey have beenerial on its we

onic communnotices of meeannouncemen

the Company, as is requirnnual general eparation and

ent and that oAudit and Riskess and mitiga

a formal Entepts and awaenior executiv

sks;

sed risk works

ng activity and

ols to addresr Emeco emplo

ness of the ual basis.

ders and enco ask questiopolicy which etween the C

n released to tebsite, as we

nications. Shaetings and pronts.

y’s general mred by sectionmeetings andd content of

oversight of suk Committee, ate risk.

terprise Risk areness are emves and senio

shops;

d progress on

ss risk issues oyees; and

overall risk

29

ourages theirons about thedescribes theCompany, its

the ASX. Thell as copies of

reholders canoxy forms are

meetings. Then 249K of thed be availablethe auditor’s

uch matters isis responsible

Managementmbedded intoor operational

n risk matters

including risk

management

r e e s

e f

n e

e e e s

s e

t o l

s

k

t

For

per

sona

l use

onl

y

DirectorsFor the yea Internal assu In May 2010period of thdelivering bu Managementhe Audit and The overall manages theFinancial Offframeworks. For FY11, thdeclaration prisk managemfinancial repcompliance a The Risk Man Principle 8 The Emeco Nomination

the Dire

the remsharehoterm be

the humhuman r

Under its Chathe Board ab

the genepursue tbetween

the termtime inc

diversity

the outcDirector

remuner

changes

employe

the discannual r


urance and th

0, the Board hree years. Thusiness improv

t will formallyd Risk Commi

internal assue process, anficer, regardi

e Board has rprovided in acment and inteorting risks. Mand control sy

nagement Pol

Remune

Group remuCommittee. T

ctors and sen

uneration polders, and rewnefits of their

man resourcesresources obje

arter, the Rembout:

eral remunerathe long termn individual pe

ms of remuneluding the crit

y policy compl

comes of remrs, and other s

ration reviews

in remunerat

ee equity plan

closure of remreport.

contd. 0 June 2011

he establishm

approved thehe Company vement outco

y review the ttee.

urance procesd provides asing the effec

received an accordance witernal control aManagement ystem is opera

licy is availabl

erate fairly an

uneration poThe Committe

ior managem

licies and outwarding and r energy and lo

policies and ectives of the

muneration an

ation strategym growth anerformance a

ration for theteria for asses

liance and rep

muneration resenior manage

s for Executiv

tion policy an

ns and allocati

muneration re

1

ent of an inte

e appointmenconsidered t

omes (noting t

performance

ss is overseessurance to tctiveness of t

assurance fromth section 295and that the shas also repoating efficient

e on the Eme

nd responsibly

licy is substae’s remunera

ent of the Gro

tcomes strikemotivating thoyalty; and

practices are Company as

nd Nominatio

y for the Groud success of nd remunerat

e Executive Dissing perform

porting;

views for exeement of the

e and Non‐Ex

d practices, in

ons under tho

equirements

ernal audit fun

nt of Ernst & there was a that the focus

of the intern

n by the Grothe Audit andthe Emeco G

m the Manag5A of the Corsystem is operorted to the Btly and effectiv

co website.

y

antially refletion objective

oup are remu

an appropriahe Group's ex

consistent widetermined b

on Committee

up so that it f the Group ation;

irectors and oance;

ecutives colleGroup;

xecutive Direct

ncluding supe

ose plans; and

in the Comp

nction

Young as a sclear link bets of assurance

al auditors on

oup’s Risk and Risk CommiGroup’s risk m

ging Director arporations Actrating effectivBoard that thevely in all mat

cted in the es are to ende

nerated fairly

ate balance bxecutives and

ith and complby the Board.

is required to

motivates theand establish

other senior m

ctively, and t

tors;

rannuation an

d

any's public

supplier of inttween the ine also remains

n an annual b

nd Corporate ttee and the management,

and the Chieft 2001 is founvely in all matee Group’s risk terial respects

objectives oeavour to ensu

y and appropr

etween the inemployees in

lementary to

o review and m

e Group's exees a fair and

management o

he individual

nd other bene

materials incl

ternal audit snternal audit s central to th

basis and repo

Assurance M Board, throu, governance

f Financial Ofnded on a souerial respectsmanagements.

of the Remuure that:

riately;

nterests of thn order to se

the strategic

make recomm

ecutives and ed transparent

of the Group

reviews for t

efits;

luding ASX fi

30

services for afunction andis function).

ort findings to

Manager whough the Chief and control

fficer that theund system ofin relation tot and internal

neration and

he Company'scure the long

direction and

mendations to

employees tot relationship

from time to

the Executive

lings and the

a d

o

o f l

e f o l

d

s g

d

o

o p

o

e

e

For

per

sona

l use

onl

y

DirectorsFor the yea Details regarFY11, the Co Emeco clearand Senior Esuperannuatbenefits othe A remuneratFY11 is includ

Nature of The principaselling of hea As set out throughout t

Operatin A review of accompanyin

Dividend In relation towhich was pa During the 2a special fullyMarch 2011. Since the enper share to

Significan During the fthose disclos

Significan During the fdeclaration o

Likely de Likely develoThis report oresults of thunreasonabl


rding membermmittee met

ly distinguisheExecutives. Ntion contributer than supera

tion report deded in the Dir

f operatio

l activities duavy earthmov

in this reporthe financial y

ng and fina

Group operatng financial st

ds paid or

o the 2009/20aid on 30 Sep

010/2011 finay franked divi

d of the 2010be paid on 30

nt change

financial year sed in the ope

nt events

financial yearof dividend no

velopmen

opments in, aomits informahose operatioe prejudice to

contd. 0 June 2011

rship of the Rtwo times. A

es the structuon‐Executive ions. They doannuation.

etailing the infrectors’ report

ons and pr

uring the finaing equipmen

rt, the natureyear.

ancial rev

tions, and theatements.

to be paid

010 financial ytember 2010.

ancial year thdend of 5.0 c

0/2011 financ0 September 2

es in state

under reviewerating and fin

after bala

r under revieoted above.

nts and ex

nd expected ration on likelyons the discloo the Emeco G

1

emuneration ll members of

ure of Non‐ExDirectors are not receive o

formation reqt on pages 33

rincipal ac

ncial year of nt to custome

e of the Gro

view

e results of th

d

year the Direc.

e Directors deents per share

cial year, the 2011.

e of affairs

w there were nancial review

ance date

ew there wer

xpected re

results of, they developmenosure of whicGroup.

and Nominatf the Committ

xecutive Direce remunerateoptions or bon

quired by sect to 50.

ctivities

the entities wrs in the mini

oup’s operati

hose operatio

ctors declared

eclared a fullye (total divide

Directors hav

s

no significanw section or in

e

re no signific

esults

e operations onts in the Emech, in the op

tion Committetee were pres

ctors’ remuneed by way of nus payments

tion 300A of t

within the Grng industries.

ons and prin

ons for FY11,

d a fully frank

y franked inteend paid of 7.0

ve declared a

nt changes in the financial

cant events a

of the Emeco eco Group in inion of the

ee are set outent for the m

eration from tfees in the f

s; nor are they

the Corporatio

oup were the

ncipal activiti

is set out on

ked final divid

erim dividend 0 cents per sh

fully franked

the Group’s sstatements a

after the bala

Group are refuture financiDirectors, wo

t under Princimeetings.

that of Executform of cash y provided wi

ions Act 2001

e renting, ma

es, have bee

pages 10 to

end of 2.0 ce

of 2.0 cents phare) which w

final dividend

state of affaind the notes

ance date ot

eferred to at pial years and ould be likely

31

ple 2. During

tive Directorsbenefits andth retirement

in relation to

aintaining and

en consistent

11 and in the

ents per share

per share andwas paid on 31

d of 3.0 cents

rs other thanthereto.

her than the

pages 5 to 11.the expectedy to result in

g

s d t

o

d

t

e

e

d 1

s

n

e

. d n

For

per

sona

l use

onl

y


Directors The relevantissued by thein accordanc Table 3 – Dir


s interest i

interests of ee companies wce with section

rectors’ Intere

contd. 0 June 2011

in shares

each Director within the Gron 205G(1) of t

ests

Alec BrennaPeter JohnsJohn Cahill Robert BishPeter RichaKeith Gordo

1

of the Com

in the shares,oup and othethe Corporatio

an ston

hop ards on

mpany

, debentures, er related bodons Act 2001,

Ordinaryshares

1,581,700100,000120,000300,00040,000

1,833,929

and rights or ies corporateat the date of

Optordin

options over , as notified bf this report a

ions over nary shares

‐‐‐‐‐‐

such shares oby the Directoare as follows:

32

or debenturesors to the ASX:

s X

For

per

sona

l use

onl

y


Remuner This report spersonnel foEmeco Group

Principles o The Group Nomination

the direc

the remthe Comsecure t

the humhuman r

Elements of The remuner Fixed remun Fixed remunbenefits such Each executiin Septembealso taken in Emeco’s broathe best avai

fulfilling

achievin

maximis Variable rem Variable remterm incentiv STI remuner In FY11, the Cand the FY11 Strategy Ince Following thstrategic plapersonnel in Plan). The mManaging Diannual salary


ration rep

summarises thor the 2011 fip’s senior exe

of remunerat

remunerationCommittee. T

ctors of the Co

uneration pompany's sharehe long term

man resourcesresources obje

f remunerat

ration structu

neration

neration comph as the provis

ive’s fixed remer. The executo account.

ad objective iilable key exe

their respect

ng the Group’s

sing Group ear

muneration

muneration is ves (“LTI”).

ation

Company mad1 short term in

entive Plan

e appointmenning proces respect of thaximum amoirector 15% oy.

contd. 0 June 2011

port (audit

he Emeco Groinancial year. ecutives, inclu

tion

n policy is sThe Committe

ompany and s

licies and outeholders, and benefits of th

policies and ectives of the

tion

re for Emeco’

prises base sasion of motor

muneration is tive’s respon

is to set fixed cutives who a

tive roles with

s strategic obj

rnings and the

performance

de grants to itncentive plan

nt of the Mass for the Emhe developmeunt payable if FY10 fixed a

1

ted)

oup’s remuneKey manageding the five m

substantially e’s objectives

senior manag

comes of therewarding an

heir energy an

practices are Company as

’s executives c

alary, employr vehicles and,

reviewed andsibilities, expe

remunerationare appropriat

in the Group;

ectives; and

e returns to sh

linked remu

ts key manage.

naging Directmeco Group, ant, refinemenn cash to eacannual remun

eration practicment personmost highly re

reflected in s are to endea

ement of the

e Company strnd motivatingd loyalty; and

consistent widetermined b

consists of fix

er superannu, in the case o

d benchmarkerience, qual

n at levels whtely qualified

;

hareholders.

neration whic

ement person

tor on 1 Decean incentive nt and executh participant neration, and

ces and outconel comprise emunerated C

the objectiveavour to ensur

Group are re

rike an approg the Group'sd

ith and complby the Board.

ed and variab

uation contribof executives b

ed against apifications, per

hich ensure thand experienc

ch consists of

nnel under tw

ember 2009 aplan was estaion of Emeco’in the Strategin the case of

omes in respethe directors

Company and

es of the Bore that:

munerated fa

priate balance executives a

lementary to

ble componen

butions, otherbased outside

propriate marformance an

he Company isced, and capa

f short term i

o STI plans, a

and the commablished for E’s long term sgy Incentive Pf all other exe

ect of its key s of the Comgroup execut

oard’s Remu

airly and appro

e between thand employee

the strategic

ts.

r allowances ae Australia, ho

arket comparisnd geographic

s able to attraable of:

incentives (“S

strategy ince

mencement oEmeco’s key strategy (StratPlan was, in thecutives, 15%

33

managementpany and thetives.

neration and

opriately;

e interests ofes in order to

direction and

and non‐cashousing.

sons annuallyc location are

act and retain

STI”) and long

ntive plan

f a long termmanagementtegy Incentivehe case of theof FY10 base

t e

d

f o

d

h

y e

n

g

m t e e e

For

per

sona

l use

onl

y

Mr HJohn

Mr G

Mr S

Mr K

Mr A

Mr M

Mr I T

Mr D

Mr M

DirectorsFor the yea In October 2the period 1Incentive Plaon progress wstrategy inceare set out b It is not inten Table 4 – Key

H Christie‐ston

G Gadomsky [A

Gobby

Gordon

A Halls

M Kirkpatrick

Testrow [B]

D Tilbrook

M Turner

Notes: (1) Mr Mossman(2) Amounts rep

strategic ince(3) No amounts [A] Mr Gadoms

January 2010[B] Mr Testrow’

FY11 STI Gra Short term iThe maximuamount of Sagreed key p


010, the direc1 January 201an payment aswith the implentive plan cabelow.

nded to estab

y executive st

NatuStrat

Incentivcompen

Ca

A] Ca

Ca

Ca

Ca

Ca

Ca

Ca

Ca

n was not eligibleported in this tabentive plan paymvest in future finky joined Emeco0 and the date ons remuneration h

ants

ncentives arem achievable TI payable is performance i

contd. 0 June 2011

ctors reviewe0 to 30 Septes at 30 Septemementation oash payments

lish a separat

trategic incen

re of tegy ve Plan nsation

A

sh 22

sh 22

sh 22

sh 22

sh 22

sh 22

sh 22

sh 22

sh 22

e to participate inble for all executivments. nancial years in re in May 2010 ann which bonus pahas been convert

e used to rewSTI amount pdetermined andicators (“KP

1

d progress wiember 2010 amber 2010 in of a range of sfor each key

e strategy inc

ntive plan pay

pproval date

October 2010

October 2010

October 2010

October 2010

October 2010

October 2010

October 2010

October 2010

October 2010

n the Strategy Incves other than M

espect of the strad was paid a proayments were deted to Australian

ward the perfopayable to an at the end of PIs”).

th the develoand determinlight of recomstrategic initiaexecutive, w

centive plan in

yments (1)

Minimumpossiblevalue ofStrategyIncentivePlan

payment

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

centive Plan. Mr Testrow are ne

ategy incentive ploportion of the sttermined. dollars on the ba

ormance of keexecutive is sthe financial

opment and imed the entitlemmendationsatives flowing hich are class

n future financ

m e f y e

t

Maximumpossiblevalue ofStrategyIncentivPlan

paymen

37,844

39,138

44,725

116,972

44,451

34,404

50,161

52,294

44,725

et of superannuat

lan for FY11. trategy incentive

asis of an AUD/CA

ey managemeset as a perceyear in light

mplementatioement of eachfrom the Mafrom the ovesified as STI ca

cial years.

m e f y e

t

AmounStrateIncentiPlan

paymeawarded

$

20,18

12,93

44,72

2 116,97

24,24

28,67

50,16

27,89

23,85

tion guarantee co

e bonus based on

AD exchange rate

ent personnentage of fixedof the execut

on of Emeco’s h participant anaging Directerall strategy. ash bonuses i

nt of egy ive n ent d (2)

% obonu

award(3)

83 53

36 67

25 100

72 100

40 53

70 83

61 100

90 53

53 53

ontributions paya

n his period of se

e of 0.9879.

l over a full fd remuneratiotive’s perform

34

strategy overto a Strategytor and basedDetails of thein this report,

f us ded

% of bonus

forfeite

47

33

0 0

0 0

47

17

0 0

47

47

able in respect of

ervice between 1

financial year.on. The actualmance against

r y d e ,

s ed

f

1

. l t

For

per

sona

l use

onl

y

Mr

John

Mr

Mr S

Mr

Mr A

Mr

Mr

Mr

Mr

Mr

DirectorsFor the yea Under the FYdetermined align executithe Presidenperformancethe Companyand fleet ma Whilst the mand the Chieremuneratio40% of fixedannual remuremuneratioremuneratio Details of the Table 5 – Key

H Christie‐

nston

G Gadomsky

S Gobby

K Gordon

A Halls

M Kirkpatrick

C Mossman [B

I Testrow [C]

D Tilbrook

M Turner

Notes: (1) Amo

amo(2) Amo[A] Mr G[B] Mr M

Direcdollaa key

[C] Mr T


Y11 STI plan, by reference tves’ incentivent Director, e and return oy’s commitmenagement.

maximum percef Financial Ofn earned durd annual remuuneration. Thn. The Presidn.

e vesting prof

y executive ST

Nature

compe

Ca

[A] Ca

Ca

Ca

Ca

Ca

B] Ca

Ca

Ca

Ca

ounts included inunts vest in futurounts forfeited arGadomsky ceasedMossman was apctor on 11 Marchars on the basis oy management peTestrow’s remune

contd. 0 June 2011

60% of each to earnings pees with both tIndonesia, 50on funds emplent to achiev

centage STI gfficer is entitling the financuneration. Thhe Chief Finandent Director

file of the STI c

TI vesting info

e of STI

ensation

A

ash 2

ash 2

ash 2

ash 2

ash 2

ash 2

ash 2

ash 2

ash 2

ash 2

n remuneration fre financial years e due to the KPIsd employment wippointed Presidenh 2011 and becaf an AUD/USD exersonnel betweeeration has been

1

executive’s Serformance athe quality an0% of his STloyed in the Ining certain no

grant to key eed to an STI gcial year. The he Managing ncial Officer r, Indonesia i

cash grants aw

ormation in re

Approval date

2 August 201

2 August 201

2 August 201

2 August 201

2 August 201

2 August 201

2 August 201

2 August 201

2 August 201

2 August 201

for FY11 represein respect of the

s not being met inth Emeco on 25 Mnt Director, Indoame a key managxchange rate of 1n 11 March 2011converted to Aus

STI entitlemennd return on d quantity of TI entitlemenndonesian buon‐financial g

executives vargrant which emajority of kDirector is enis entitled tos entitled to

warded to key

espect of FY1

e Minim

possib

value o

bonu

1 0

1 0

1 0

1 0

1 0

1 0

1 0

1 0

1 0

1 0

ent the amountse STI scheme for Fn relation to FY11March 2011. nesia on 16 Octogement person o1.0511 and the pr1 and 30 June 201stralian dollars on

nt, other thancapital emplothe Companynt was detersiness. The reoals in areas

ries, no execuequals or exceey executivesntitled to a mo a maximuma maximum

y executives in

11

mum

ble

f STI

us

Maxim

poss

valu

STI bo

148,

0

235,

884,

149,

140,

17,3

144,

198,

176,

that vested in FY11. 1.

ober 2010. He coon that date. Hisroportion of STI b11. n the basis of an

n the Presidenyed across thy’s earnings prmined by remaining KPIs such as safety

utive other theeds 50% of t are entitled t

maximum STI gm STI grant of

STI grant of

n respect of FY

mum

sible

e of

onus

Amou

STI b

awar

400 91,

0 0

000 176

000 654

600 100

000 103

360 8,6

751 111

816 137

000 128

the year based o

ommenced repors remuneration hbonus disclosed is

AUD/CAD exchan

nt Director, Inhe Emeco Grouperformance. eference to for all executty, business p

han the Manahe recipient’sto a maximumgrant of 100%f 50% of his f 30% of his

Y11 are set ou

unt of

bonus

rded $

% o

bo

awa

(

,089 61

0 0

6,440 75

4,875 74

0,353 67

3,713 74

680 50

1,576 77

7,344 69

8,622 73

on the achievem

rting to the Comhas been converts based on his pe

nge rate of 0.987

35

ndonesia wasup in order toIn the case ofthe earningstives reflectedlan execution

aging Directors fixed annualm STI grant of% of his fixedfixed annualfixed annual

ut below:

f STI

nus

arded

1)

% of

bon

forfe

(2

1.4 38

0 0

5.1 24

4.1 25

7.1 32

4.1 25

0.0 50

7.1 22

9.1 30

3.1 26

ment of KPIs. No

pany’s Managingted to Australianriod of service as

79.

s o f s d n

r l f d l l

f STI

nus

eited

2)

8.6

0

4.9

5.9

2.9

5.9

0.0

2.9

0.9

6.9

o

g n s

For

per

sona

l use

onl

y

DirectorsFor the yea LTI remunera Performance Emeco has eThe plan proEmeco Group Grants undesubstantially Australian b In FY11, unvthe number share grant aat a nil exerc The performgrant of perfthan performDivision 13Aemployee shtest prior toAustralian ba Executives b Emeco partisubstantiallyprovides thePerformanceand cost of t Vesting cond The performthe FY11 LTI(TSR). TSR winterests of emeasured agin addition trusts/compaof the FY11 g(Peer Group)dividends an


ation

e Shares and P

established anovides Emecop.

r the FY11 LTy identical to t

ased executiv

ested fully paof shares graas a percentagcise price; they

ance shares wformance righmance sharesA of the Incomhare plan for o making offeased executive

ased outside

cipants in thy identical terme recipient wite rights are ishe complianc

ditions for LTI

ance conditio plan (and thas chosen as executives wigainst a Peer Gcompanies inanies and invegrant compris). TSR for Emed capital retu

contd. 0 June 2011

Performance

n LTI plan to ao’s senior ma

I plan were mhe terms and

ves

aid Emeco peranted being dge of the execy vest if the p

were granted hts in FY10. P) because theme Tax Assesits Australianers under its es under the F

Australia

e FY11 LTI pms to the perth the right tosued to Emece issues assoc

I securities

on for both the FY09 and Fthe performaith the intereGroup consistn the S&P/ASestment propsed a total of eco and each crns.

1

Rights

pply to Emecnagers with a

made to all key conditions of

rformance shetermined bycutive’s salaryerformance c

to individual APerformance re Company cessment Act 19 employees wFY11 LTI plaFY11 LTI plan.

lan who werformance shao receive one co’s offshore ciated with th

he vesting of pY10 plans) is ance conditionsts of sharehoting of a grouSX Small Inderty trusts/co97 companiecompany in th

o’s senior maan ongoing in

y executives of grants made

ares were gray reference toy. Performanccondition desc

Australian‐barights were iseased to satis936. Howevewith the resun. As a resul.

re working ouares issued to fully paid Emexecutives ine issue of sha

performance a performann because it isolders. Emecop of 10 compustrials indexompanies andes (this numbehe Peer Group

anagers (whichncentive to a

on the followie under the FY

anted to indivo the senioritye shares werecribed below i

sed executivessued to Austsfy the 75% or, in FY11 thlt that the Cot, the Compa

utside AustraAustralian ba

meco share if tnstead of perfares in the rele

shares and thce hurdle bass considered to’s TSR at thepanies that arex (excluding other stapleder may changp is calculated

h includes keychieve the lo

ing key terms Y08, FY09 and

vidual Australy of the exece granted at ns met.

es on substantralian based ffer participate Company eompany satisfany granted p

lia were issueased executivehe relevant pformance shaevant foreign

he exercise of sed on relativto be an effece end of a 3 ye considered banks, insurad securities). Tge as a result d by reference

y managemenong term obje

s and conditioFY10 LTI plan

ian‐based executive and theno cost to the

tially identicaexecutives intion test presestablished a fied the offer performance

ed performanes. Each perfoperformance hares due to thjurisdictions.

f performanceve total sharective means oyear vesting pdirect peers tance companThe Peer Grouof takeovers,e to share pric

36

nt personnel).ectives of the

ons, which arens.

ecutives, withe value of therecipient and

l terms to the FY10 (ratherscribed underbroad basedparticipationshares to its

nce rights onormance righthurdle is met.he complexity

e rights underholder returnof aligning theperiod will beto Emeco andies, propertyup at the time mergers etc)ce movement,

. e

e

h e d

e r r d n s

n t . y

r n e e d y e ) ,

For

per

sona

l use

onl

y

DirectorsFor the yea At the concPerformanceachieved in cas follows:

(a)

(b)

(c)

(d)

Performnominee Performwhich bethe date

Change of te Following a rterms of the

Com

resp

hold

Trus

If th

in co

vest

These termsfuture LTI pla As at close of The differenabove immed


clusion of thee shares will ocomparison w

If Emeco’s TSshares will ve

If Emeco’s Tperformance

If Emeco’s Tperformance

If Emeco’s TSextra 2% of exercisable, f

ance shares e of the Comp

ance shares wecome exercie of grant.

erms of LTI gra

review of margrants of LTI

mmencing wit

pect of Perfor

ders of those

st.

here is an abs

ontrol will aut

t upon a chan

were also inans. All other

f trading on 1

ce between tdiately before

contd. 0 June 2011

e vesting peronly vest andwith the Peer G

SR is less thanest and no per

TSR is equal t shares will ve

TSR is equal e shares will v

SR is equal to the performafor each perce

that have nopany. Perform

which have vesable at the e

ants

rket practice isecurities und

th the dividen

rmance Share

securities. Pr

olute change

tomatically ve

ge in control.

ncorporated interms of exist

13 August 201

the fair value e their alterat

1

riod, TSR for performance

Group TSR. Th

n the TSR of 5rformance rig

to the TSR oest and 50% o

to the TSR oest and 100%

the TSR of beance shares gentile increase

ot vested aftemance rights w

ested will be end of the thr

n relation to Lder the FY08,

nd declared by

s and shadow

reviously, divid

in control of

est. Previously

nto the termsting grants rem

0, the market

of the LTI seion and after

all companiee rights will ohere is a maxi

50.1% of the hts will be exe

f 50.1% of thof the perform

of 75% of the% of the perfor

etween 50% agranted vest, e in Emeco’s T

er the end owhich do not b

transferred iree year vest

LTI grants, theFY09 and FY1

y the director

w dividends in

dends were p

the Company

y, the board r

s of the FY11 mained uncha

t price of an E

ecurities affecttheir alteratio

es including nly be exercisimum and min

companies oercisable.

he companiemance rights w

e companies rmance rights

and 75% of thor an extra TSR above the

of the performbecome exerci

nto the nameing periods m

e Directors re0 plans as fol

rs for the half

n respect of Pe

paid into the E

y, all LTI secur

retained discre

LTI plan andanged.

meco share w

ted by the alton is set out in

Emeco will bsable if a threnimum vestin

f the Peer Gr

s of the Peewill be exercisa

of the Peer will be exerci

e companies 2% of the pee 50th percen

mance periodisable will laps

e of the particmust be exerci

solved on 13 Alows:

f year ended 3

erformance R

Emeco Emplo

rities on issue

etion as to wh

will be incor

was 72.5 cents

teration of ten the followin

be measured eshold TSR peng range and v

roup then no

r Group thenable.

Group then isable.

of the Peer Gerformance rintile.

d will be transe.

cipant. Perforised within fiv

August 2010

30 June 2010

Rights would b

oyee Share Ow

e at the time o

hether LTI sec

rporated into

s.

erms of LTI grng table.

37

and ranked.erformance isvesting occurs

performance

n 50% of the

100% of the

Group then anights become

nsferred to a

rmance rightsve years after

to amend the

, dividends in

be paid to the

wnership Plan

of the change

curities would

the terms of

rants outlined

. s s

e

e

e

n e

a

s r

e

n

e

n

e

d

f

d

For

per

sona

l use

onl

y

DirectorsFor the yea Table 6 – Dif

L

PerformancePerformanceDecember 20

PerformancePerformance2008 (FY09 g

Performance2010 (FY10 g

For each keythe alteratioout in table 7 Table 7 – Dif

Mr H Christie

Mr G Gadom

Mr S Gobby

Mr K Gordon

Mr A Halls

Mr M Kirkpat

Mr C Mossm

Mr I Testrow

Mr D Tilbroo

Mr M Turner

(1) Mr Gord

conditioNovembaltered t

Prohibition o Emeco’s shaintended to remuneratio


fference in fai

LTI securities

e Shares and e Rights issued007 (FY08 gra

e Shares and e Rights issuedgrant)

e Rights issuedgrant)

y executive, thn of terms of 7.

fference in tot

e Johnston

msky

n (1)

trick

man

w

ok

r

don was offereonal on sharehber 2010, sharterms outline

of hedging LT

re trading pohedge their en.

contd. 0 June 2011

ir value of LTI

d in nt)

d in October

d in April

he difference LTI grants out

tal of the fair

ed LTI securitiholder approvreholders appd above and

I grants

olicy prohibitsexposure to E

1

securities be

Fair value o

between the ttlined above i

value of LTI s

Total fair va

ies under the al. Subsequenroved the grahe was forma

s Directors anEmeco securit

efore and afte

of each LTI seto alteration

$0.87

$0.22

$0.40

total fair valuimmediately b

securities for

alue of LTI secto alteration

191,481

‐

353,359

370,370

102,667

217,574

n/a

302,631

351,592

313,296

FY10 LTI planntly, at the Coant of LTI secually granted th

nd other officties which hav

er the alterati

ecurity prior n

e of the LTI sebefore their a

each key exe

curities prior n

prior to the aompany’s 2010urities to Mr Ghese securities

ers of the Cove been issue

on of terms

Fair value

ecurities issuelteration and

cutive

Total fair v

alteration of t0 annual geneGordon under s on 19 Novem

mpany from ed to the offic

of each LTI sealteration

$0.89

$0.27

$0.49

ed to them anafter their alt

value of LTI sealteration

237,412

‐

424,142

456,130

126,961

260,306

n/a

356,252

417,014

369,532

their terms. Theral meeting othe FY10 LTI pmber 2010.

entering intocer as part of

38

ecurity after

nd affected byteration is set

ecurities after

his offer was on 16 plan on the

o transactionsf the officer’s

y t

r

s s

For

per

sona

l use

onl

y

Non – Executive Directors

Alec Brenna

Robert Bish

John Cahill

Peter

Johnston

Peter

Richards

Executive

Directors

Keith Gordo

TOTAL ALL

DIRECTORS


Details of re Details of thDirector andFY11 are setnot made avbefore the pthan superanof options. Tthe prior fina Table 8 – Dir

Sho

Salary & Fees $

an 191,254

hop 112,355

122,852(1)

106,638

106,190

on 860,505

S 1,499,794

Notes: [A] The

to thto th

(1) Duri

remu(2) The

Geneplan


emuneration

he elements each of the ft out in table ailable to keyerson startednnuation, andTable 9 provideancial year.

rectors’ and E

ort‐term benefits

STI cash bonuses

[A] $

Nm

be

‐

‐

‐

‐

‐

771,847

771,847

short term incenhe Managing Direhe Managing Direng FY11 Mr Cahuneration. share based payeral Meeting on .

contd. 0 June 2011

n

comprising thfive named Co8. Table 8 doy executives du to hold a posd share basedes comparativ

Executive offic

Po

emplo

ben

Non‐monet‐ary enefits $

Superanben

‐

‐

‐

‐

‐

665

665

ntive bonus includector was finally ector under the Sill was reimburse

ment includes th16 November 20

1

he remuneratompany and Eoes not includuring FY11: shsition, long te payments otve information

cers’ remuner

ost‐

oyment

nefits

Othe

long

term

benef

nnuation nefits $ $

17,213

4,450

11,057

9,597

9,557

25,000

76,874

des payments madetermined on 2trategy Incentiveed $8,788 in resp

he expense of the10. Although this

tion of the GEmeco Group de the followihort term cashrm incentivesther than shan in relation t

ration FY11 (C

er

g

m

fits

Termina‐

tion

benefits

$

‐ ‐

‐ ‐

‐ ‐

‐ ‐

‐ ‐

‐ ‐

‐ ‐

ade under the St22 August 2011 ae Plan was determpect of underpay

e 925,926 perfors grant was appro

Group’s key mexecutives whng componenh profit‐sharins distributed inres and units o the remune

Company and

Share based

payments

LTIP $

M

‐

‐

‐

‐

‐

299,483(2)

299,483

trategy Incentive after completion mined on 22 Octoyments relating

mance rights, apoved and disclose

management ho received thnts of compenng bonuses, pn cash, post‐eand share ba

eration of the

Consolidated

d Total

MISP $

$

‐ 208,467

‐ 116,805

‐ 133,909

‐ 116,235

‐ 115,747

‐ 1,957,500

‐ 2,648,663

Plan and the FY1of his performanober 2010. to FY10. This ad

proved by sharehed in FY11, it was

personnel, inhe highest remnsation becauayments mademployment based paymentGroup’s key e

d)

Proportion o

remuneration

performance

related

%

7

5

9

5

7

0 54

3 40

11 STI Plan. The ance review. The a

djustment is incl

holders at the Cos a grant made un

39

ncluding eachmuneration inuse they werede to a personbenefits otherts in the formexecutives for

f

n

e

Value of

options as

proportion

of

remuner‐

ation

%

‐ ‐

‐ ‐

‐ ‐

‐ ‐

‐ ‐

.7 ‐

.4 ‐

amount awardedamount awarded

uded in his FY11

ompany’s Annualnder the FY10 LTI

h n e n r m r

d d

1

l I

For

per

sona

l use

onl

y

Executives

H Christie‐

Johnston

General Manager Emeco Sal

Guido

Gadomsky

General

Manager

Strategy a

Business

Developm

[B]

S Gobby

Chief Finan

Officer

A Halls

General

Manager

Australian

Rental

M Kirkpatr

General

Manager

Corporate

Services

C Mossma

President

Director

Indonesia

I Testrow

President

Emeco No

America [D

D Tilbrook

Executive

General

Manager S

East Asia

M Turner

General

Manager G

Asset

Managem

TOTAL ALL

EXECUTIVE

TOTAL ALL

DirectorsFor the yea Table 8 Direc

Salary Fees $

s

‐

es

282,6

y

nd

ent

219,972

ncial 440,0

351,9

rick

321,0

an

[C]

56,1

rth

D]

337,3

k

South

473,3

Global

ent

358,8

L

ES 2,841,4

L 4,341,2


ctors’ and Exe

Short‐term bene

& STI cash bonuses

[A] $

616 111,272

2(1) 12,936

095 221,165

998 124,593

059 132,383

108 8,680

348 161,737

363 165,234

863 152,475

422 1,090,475

216 1,862,322

contd. 0 June 2011

ecutive office

efits e

b

Non‐monetary benefits

$

S‐nb

15,208

402

2,716

594

744

30,442

68,315

‐

14,632

133,053

133,718

1

rs’ remunerat

Post‐

employ‐

ment

benefits

Othe

long

term

benef

Superannuation benefits

$ $

27,252

20,962

22,015

23,144

25,418

‐

‐

26,187

22,922

167,900

244,774

tion FY11 (Co

er

g

m

fits

Terminatio

benefits

$

‐

‐ 212,5

‐

‐

‐

‐

‐

‐

‐

‐ 212,5

‐ 212,5

ompany and C

on Share b

paym

LTIP $

‐ 130,602

00 ‐

‐ 206,191

‐ 84,899

‐ 124,462

‐ 16,394

‐ 152,548

‐ 188,284

‐ 163,688

00 1,067,068

00 1,366,551

Consolidated)

based

ents T

MISP $

11,524 5

‐ 4

‐ 8

‐ 5

299 6

‐ 1

8,160 7

‐ 8

‐ 7

19,983 5,5

19,983 8,1

– contd.

Total

Propo

remun

perfo

rel

$

578,474

466,772

892,182

585,228

604,365

111,624

728,108

853,068

712,580

532,401

181,064

40

ortion of

neration

rmance

ated

Va

opt

pro

rem

%

43.8

2.8

47.9

35.8

42.5

22.514.7

44.3

41.4

44.4

39.4

39.7

alue of

tions as

portion

of

munerat‐

ion

%

2.0

‐

‐

‐

0.0

‐

1.1

‐

‐

0.4

0.2

For

per

sona

l use

onl

y

DirectorsFor the yea Notes: [A] The s

to eaamo

[B] Mr G[C] Mr M

Direcdolla2011

[D] Mr T(1) This

paid


short term incenach executive ununt awarded to eGadomsky ceasedMossman was apctor on 11 Marcars on the basis o1. Testrow’s remunefigure excludes was $13,494.40.

contd. 0 June 2011

tive bonus includnder the FY11 STeach executive und employment wippointed Presidenh 2011 and becaof an AUD/USD e

eration has been payout of accrue.

1

des payments maTI Plan was finallnder the Strategyth Emeco on 25 Mnt Director, Indoame a key managexchange rate of

converted to Aused but untaken a

ade under the Stly determined ony Incentive Plan wMarch 2011. nesia on 16 Octogement person o1.0511 and his r

stralian dollars oannual leave relat

rategy Incentive n 22 August 201was determined o

ober 2010. He coon that date. Hisremuneration det

n the basis of an ted to the cessat

Plan and the FY11 after completion 22 October 20

ommenced repors remuneration htails are for the p

AUD/CAD exchantion of Mr Gadom

11 STI Plan. The aion of performan010.

rting to the Comhas been convertperiod 11 March

nge rate of 0.987msky’s employm

41

amount awardednce reviews. The

pany’s Managingted to Australian2011 to 30 June

79. ent. The amount

d e

g n e

t

For

per

sona

l use

onl

y

Non ‐

Executive

Directors

Alec Brenna

Robert

Bishop

John Cahill

Peter

Johnston

Peter

Richards [A

Executive

Directors

Keith Gordo

Managing

Director [B]

Laurie

Freedman

Managing

Director [C]

Robin Adair

Executive

Director

Corporate

Strategy &

Business

Developme

[D]

TOTAL ALL

DIRECTORS

DirectorsFor the yea Table 9 ‐ Dire

Sh

Salary & Fees $

an 183,830

102,752

112,237

102,752

]

3,989

on

]

472,532

]

537,957 (1

r

ent

224,135 (2

S 1,740,184

Notes: [A] Mr R[B] Mr G[C] Mr F[D] Mr A[1] This

emp[2] This

emp


ectors’ and Ex

hort‐term benefits

STI cash bonuses

[A] $

0 ‐

2 ‐

7 ‐

2 ‐

9 ‐

2 ‐

1) ‐

2) ‐

4 ‐

Richards was appGordon was appoFreedman ceasedAdair ceased as a figure excludes

ployment. The amfigure excludes

ployment. The am

contd. 0 June 2011

xecutive offic

s em

b


$

Sup‐ion

‐

‐

‐

‐

‐

489

31,185

13,484

45,158

ointed as a Direcointed as a Directd as a Director on Director on 18 Npayout of accru

mount paid was $s payout of accrmount paid was $

1

ers’ remuner

Post‐

ployment

benefits

Ot

long

ben

perannuatn benefits

$

16,544

9,247

10,101

9,247

358

14,583

50,000

23,413

133,493

ctor on 14 June 20or on 1 Decembe 30 November 20November 2009 aued but untaken 652,233. rued but untake326,153.

ration FY10 (C

ther

g term

nefits

Termina

benef

$ $

‐

‐

‐

‐

‐

‐

‐

‐

‐

010. er 2009. 009 and left the Cand left the Compannual leave an

en annual leave

Company and

ation

fits Share ba

LTIP $

‐ ‐

‐ ‐

‐ ‐

‐ ‐

‐ ‐

‐ ‐

‐ ‐

‐ ‐

‐ ‐

Company on 4 Japany on 30 Novemnd long service l

and long servic

Consolidated

ased payments

MISP $

‐

‐

‐

‐

‐

‐

‐

‐

‐

nuary 2010. mber 2009. eave related to

e leave related

d)

Total

Pr

rem

pe

200,374

111,999

122,338

111,999

4,347

487,604

619,142

261,032

1,918,835

the cessation of

to the cessatio

42

oportion of

muneration

erformance

related

p

r

%

‐

‐

‐

‐

‐

‐

‐

‐

‐

f Mr Freedman’s

on of Mr Adair’s

Value of

options as

proportion of

remunerat‐

ion

%

‐

‐

‐

‐

‐

‐

‐

‐

‐

s

s For

per

sona

l use

onl

y

Executives

H Christie‐

Johnston

General

Manager

Australian

& Parts

S Gobby

Chief Finan

Officer

A Halls

General

Manager

Eastern

Australia

G Gadoms

General

Manager

Strategy &

Business

Developm

[F]

M Kirkpatr

General

Manager

Corporate

Services

C Moseley

President

Emeco USA

I Testrow

President

America [H

D Tilbrook

Executive

General

Manager

Western R

M Turner

General

Manager G

Asset

Managem

TOTAL ALL

EXECUTIVE

TOTAL ALL

DirectorsFor the yea Table 9 Direc

SalaryFees$

s

‐

Sales

275,

ncial 400,

258,

sky

&

ent

27,

rick

302,

y

A [G]

257,

North

H]

364,

k

Region

472,

Global

ent

329,

L

ES 2,686,

L 4,427,


ctors’ and Exe

Short‐term bene

y & s

STI cash bonuses

[A] $

,000 ‐

,125 ‐

,751 ‐

,347 ‐

,000 ‐

,824 ‐

,482 ‐

,040 ‐

,250 ‐

,819 ‐

,003 ‐

contd. 0 June 2011

ecutive office

efits


$

27,649

978

15,189

‐

1,411

‐

64,238

886

15,384

125,735

170,893

1

rs’ remunerat

Post‐

employ‐

ment

benefits

O

l

t

be

Superan‐nuation benefits

$

24,750

24,975

23,287

2,461

25,000

21,654

3,240

25,000

25,000

175,367

308,860

tion FY10 (Co

Other

long

term

enefits

Termin

bene

$ $

‐

‐

‐

‐

‐

‐

‐

‐

‐

‐

‐

ompany and C

nation

efits

Shar

pay

LTIP$

‐ 44,815

‐ 93,490

‐ 18,667

‐ ‐

‐ 55,241

‐ (33,088)

‐ 78,563

‐ 90,926

‐ 81,963

‐ 430,577

‐ 430,577

Consolidated)

e based

yments T

MISP $

5 13,751 3

0 ‐ 5

7 ‐ 3

‐ ‐

1 2,497 3

) ‐ 2

3 15,942 5

6 ‐ 5

3 ‐ 4

7 32,190 3,4

7 32,190 5,3

– contd.

Total

Propo

remun

perfo

rel

385,965

519,568

315,894

29,808

386,149

246,390

526,465

588,852

451,597

450,688

369,523

43

ortion of

neration

rmance

ated

Va

opt

prop

rem

%

15.2

18.0

5.9

‐

15.0

‐

18.0

15.4

18.1

13.4

8.6

alue of

tions as

ortion of

munerat‐

ion

%

3.6

‐

‐

‐

0.6

‐

3.0

‐

‐

0.9

0.6

For

per

sona

l use

onl

y

DirectorsFor the yea Notes: [E] The s

Augu[F] Mr G[G] Mr M

left t[H] Mr T

Testexch

[*] Incluentitnot b

Equity instr MISP During FY11,(MISP Particito them und Table 10 – M

Number o

Issue price

Date of gr

Amount o

MISP shar

date

Highest am

the period

Fair value

during the

Notes: [A] As a[B] As a[C] Mr K

was


short term incenust 2010 after comGadomsky was apMoseley’s remunthe Company on Testrow was approw was the Prehange rate of 0.93uded in share batlements being fobeing achieved.

ruments

, the Companipants) under er the MISP a

MISP grants to

of shares issue

e of the MISP

rant

of Company lo

res outstandin

mount of inde

d

recognised as

e year

t 14 March 2011t 12 June 2011, tKirkpatrick sold 1repaid to Emeco

contd. 0 June 2011

ntive bonus is formpletion of perfoppointed to the peration has been29 January 2010.ointed to the poesident, Emeco C303. ased payments isorfeited during th

ny recognisedthe Companyre set out bel

o key executiv

ed under the M

shares

oan in respect

ng at reporting

ebtedness dur

s remuneratio

, the third annivethe fifth anniversa150,000 vested so on this date.

1

r performance duormance reviewsosition of Generan converted to Au. Mr Moseley’s Lsition of PresidenCanada. His remu

s the reversal of he year. The MIS

d share basedy’s Managemeow:

ves

Chris

MISP

14

of

g

ring

on

ersary of the granary of the grant ohares on 8 Decem

uring FY10. The as. al Manager Strateustralian dollars oLTI payment was fnt North Americauneration has be

amounts recognSP and LTIP entitl

d payments toent Incentive

Hamish

stie‐Johnston

500,000

$0.74

4 March 2008

$292,500

$337,500

$11,524

nt of MISP sharesof MISP shares tomber 2010. The

amount awarded

egy and Businesson the basis of aforfeited and is na with effect fromeen converted to

nised as remunerlements were for

o Messrs ChrShare Plan (“

[A] T

8 12

s to Mr Christie‐Joo Mr Testrow, all outstanding Com

d to each executi

Development wn AUD/USD exchnoted as a negativm 1 February 201o Australian dolla

ration in prior yerfeited as a resul

istie‐Johnston“MISP”). Detai

Ian

Testrow [B]

300,000

$1.155

2 June 2006

$283,500

$310,500

$8,160

ohnston, 125,000300,000 shares hmpany loan of $7

ive was finally d

with effect from 24hange rate of 0.87ve expense. 10. Prior to this aars on the basis

ears as a result olt of service vesti

n, Testrow anils of the shar

Mi

Kirkpa

15

$

18 Aug

$7

$

0 shares have veshave vested. 70,500.00 in resp

44

etermined on 11

4 May 2010. 759. Mr Moseley

appointment, Mrof an AUD/CAD

of MISP and LTIPng requirements

nd Kirkpatrickre issue made

ichael

atrick [C]

0,000

0.61

gust 2005

$0

3,500

$299

sted.

ect of the shares

1

y

r D

P s

k e

s

For

per

sona

l use

onl

y

DirectorsFor the yea Key terms an

In accorlimited r

The shashares th

If a MISrelation transfer paymenCompanpurchaserespect

Subject annivers

Any dividthe Com

The share issshares, are ninclusion of tremain with to operate as The MISP hamade to Mr


nd conditions

rdance with trecourse loan

res vest over hen vest on a

SP Participant’to those shathem to a not against the ny must buy te price equal of the vested

to the approsary of the com

dends or capimpany in reduc

sues under thnot dependenttime based vethe Group. Ts a retention i

s been closedChristie Johns

contd. 0 June 2011

of the issue o

he terms of t(Loan) to ena

a 5 year perin annual basi

’s employmenares which haominee at a prLoan amoun

them back orto their marshares.

oval of the Bmmencement

tal distributiocing the amou

he MISP to eat on the satisfesting conditihat is, the terincentive arra

d since 2008. ston in March

1

of shares to th

the MISP theable them to s

iod with the fs until all of th

nt with the Gave not vesterice equal to tnt owed to th transfer themket value, sub

oard, the Loat date of the M

ons which mayunt of the loan

ach MISP Parfaction of a peions in the terms upon whiangement rath

The last alloc 2008.

he MISP Partic

e Company prsubscribe for t

first 6.25% ofhe shares hav

Group is termed, the Compthe Loan amohe Company. m to a nominbject to the C

an can be reMISP.

y become payn.

rticipant, and erformance corms of issue ch the sharesher than a per

cation of share

cipants under

rovided each the MISP shar

f the shares vve vested on th

minated beforepany is requirunt outstandIn relation tonee of the BoCompany setti

paid at any t

yable in respe

the time basondition becawere intendes were issued rformance inc

es to a key m

the MISP are

MISP Participres.

esting 2 yearshe 5th anniver

e all of their red to buy thing in respect o those shareoard and pay ing off the Lo

time but mus

ct of the MISP

sed vesting coause the issueed to provide to the MISP Pcentive arrang

anagement p

as follows:

pant with an

rs after the issrsary of their i

MISP shares hem back, cat of them and es which haveto the MISP

oan amount o

st be repaid

P shares may

onditions in re of shares to them with anParticipants wgement.

person under t

45

interest‐free,

sue date. Theissue.

vest, then inncel them orto set off thee vested, theParticipant a

outstanding in

by the tenth

be applied by

espect of thethem and then incentive towere intended

the MISP was

,

e

n r e e a n

h

y

e e o d

s

For

per

sona

l use

onl

y

M

Jo

M

M

M

M

M[B

M

M

M

DirectorsFor the yea LTI The terms of Grants of Peand FY11 are Table 11 –FY

Mr H Christie‐

ohnston

Mr S Gobby

Mr K Gordon

Mr A Halls

Mr M Kirkpatr

Mr C MossmanB]

Mr I Testrow

Mr D Tilbrook

Mr M Turner


f the LTI Plan a

erformance She set out in tab

Y10 and FY11

Num

durin

FY10

FY11

FY10

FY11

FY10

FY11

FY10

FY11

ick FY10

FY11

n FY10

FY11

FY10

FY11

FY10

FY11

FY10

FY11

contd. 0 June 2011

are discussed

hares made toble 11.

LTI Performa

ber granted

ng FY10 and

FY11

‐

265,000

‐

419,643

‐

1,183,929

‐

267,143

‐

250,000

‐

‐

‐

‐

‐

355,029

‐

314,286

1

at pages 36 t

o key manage

nce Share gra

Gran

0 19 Nove

19 Nove

9 19 Nove

3 19 Nove

0 19 Nove

19 Nove

19 Nove

to 37.

ement person

ants to key ex

nt Date

‐

ember 2010

‐

ember 2010

‐

ember 2010

‐

ember 2010

‐

ember 2010

‐

‐

‐

‐

‐

ember 2010

‐

ember 2010

nnel under th

xecutives

Fair valu

Performan

[*]

‐

$0.5

‐

$0.5

‐

$0.5

‐

$0.5

‐

$0.5

‐

‐

‐

‐

‐

$0.5

‐

$0.5

e Company’s

ue per

ce Share

N

56

56

56

56

56

56

56

LTI plan (LTI

Number of Pe

Shares vesti

FY10 &FY

‐

‐

‐

78,00

‐

‐

‐

‐

‐

26,00

‐

‐

‐

52,00

‐

52,00

‐

52,00

46

Plan) in FY10

erformance

ng during

Y11 [A]

00

00

00

00

00

0

For

per

sona

l use

onl

y

M

Jo

M

M

M

M

M

[D

M

M

M

DirectorsFor the yea Notes: [A] For P

annuOctoPerfo

[B] Mr C[*] The f

repois theof te

Grants of peset out in tab Table 12 – FY

Mr H Christie‐

ohnston

Mr S Gobby

Mr K Gordon [C

Mr A Halls

Mr M Kirkpatri

Mr C Mossman

D]

Mr I Testrow

Mr D Tilbrook

Mr M Turner


Performance Shaual results in Augober 2007 under ormance Shares aC Mossman was afair value of the orting period evene portion of the frms to the LTI pla

rformance rigble 12.

Y10 and FY11

Num

during

FY10

FY11

FY10

FY11

C] FY10

FY11

FY10

FY11

ck FY10

FY11

n FY10

FY11

FY10

FY11

FY10

FY11

FY10

FY11

contd. 0 June 2011

ares granted in Fgust 2013. The vethe FY08 LTI plaand there was thappointed Presideperformance shnly over the periofair value of the pan.

ghts made to k

LTI Performa

mber granted

g FY10 & FY11

203,704

‐

300,926

‐

‐

925,926

166,667

‐

185,185

‐

n/a

107,012

239,077

269,393

281,481

‐

240,741

‐

1

FY11 the earliest esting date is alsan. Under the teerefore no amouent Director, Indoares was determod from grant daperformance shar

key managem

ance Rights gr

1

Gra

19 Ap

19 Ap

19 Nove

19 Ap

19 Ap

19 Nove

19 Ap

19 Nove

19 Ap

19 Ap

vesting date is tso the expiry daterms of the FY08unt unpaid in responesia on 16 Octomined using a Mote to costing datres recognised in

ment personne

rants to key e

nt Date

pril 2010

‐

pril 2010

‐

‐

ember 2010

pril 2010

‐

pril 2010

‐

n/a

ember 2010

pril 2010

ember 2010

pril 2010

‐

pril 2010

‐

the tenth tradingte. The Performa8 LTI plan, no ampect of the sharesober 2010. onte Carlo share e. The value discn this reporting pe

el under the C

executives

Fair valu

Performan

[*]

$0.4

‐

$0.4

‐

‐

$0.4

$0.4

‐

$0.4

‐

n/a

$0.5

$0.4

$0.5

$0.4

‐

$0.4

‐

g day after the ance Shares whicmount was requis at the time of v

price simulationlosed in the Direceriod. The fair va

Company’s LTI

ue per

nce Right

]

N

49

49

49

49

49

a

56

49

56

49

49

announcement och vested in FY 1ired to be paid ivesting.

n model, and is actors’ and Officealue disclosed is p

I plan in FY10

Number of Pe

Rights vestin

FY10 [A] &

‐

‐

‐

‐

‐

‐

‐

‐

‐

‐

‐

‐

‐

‐

‐

‐

‐

‐

47

of the Company’s1 were issued inn respect of the

allocated to eachrs’ remunerationpost modification

and FY11 are

erformance

ng during

FY11 [B]

s n e

h n n

e

For

per

sona

l use

onl

y

DirectorsFor the yea Notes: [A] For p[B] For p

annu[C] Share

Nove[D] Mr C

comm[*] The

repois thmod

Emeco Empl During FY11 Details of theout below: Table 13 – ES

Hamish Chris

Guido Gadom

Stephen Gob

Anthony Hal

Michael Turn

Key terms an

Australiaor wage

For everthe emp

The mattheir emacquiredPeriod, t

All shareCustodia

The ESOServicestermina

Service con Except as ouprovide for athe executiveand accrued


performance righperformance righual results in 2013eholders approvember 2010. AlthC Mossman was menced reportinfair value of theorting period evene portion of theification of terms

oyees Share O

several senioe shares purc

SOP shares pu

stie‐Johnston

msky

bby

ls

ner

nd conditions

an based empto acquire Em

ry 5 Shares acployee.

tching shares mployment wid for them (Rthey forfeit th

es acquired uans Pty Limite

OP shares ares, releases thetion of the em

tracts

utlined belowan indefinite te of up to 6 mstatutory leav

contd. 0 June 2011

hts granted in FY1hts granted in FY3. The vesting daved the grant ofhough this LTI graappointed Presidg to the Compan performance rignly over the perioe fair value of ths to the LTI plan.

Ownership Pl

or Emeco exechased on the

urchased and

of the ESOP a

ployees may smeco ordinary

cquired by the

are subject toith Emeco forestriction Perhe matching sh

under the ESOed, which is an

e held by thee ESOP sharemployee’s em

w, each of theterm and whicmonths’ salaryve entitlemen

1

10 the earliest vesY11 the earliest vte is also the exp925,926 Perfornt was approveddent Director, Indy’s Managing Dirghts was determod from grant dahe performance

an

ecutives particir behalf and

acquired by

Shares purc

4,578

2,840

4,578

4,578

4,578

are as follows:

salary sacrificey shares in acc

e employee u

o a vesting conr 1 year afterriod). If an emhares.

OP are held n independent

e trustee duris from the trployment wit

e key executivch are terminy in lieu of nonts are payabl

sting date is 30 Svesting date is tpiry date. rmance Rights tod in FY11, it is a grdonesia on 16 Orector on 11 Marmined using a Mote to vesting datrights recognise

cipated in theof the match

key executive

chased

8

0

8

8

8

:

e a minimumcordance with

under the ESO

ndition. Under the end of tmployee leav

in a trust ont party separa

ing the Restrrust at the eah Emeco.

ves named inable on eitheotice. No terme under these

eptember 2012. the tenth trading

o Mr Gordon at rant made underOctober 2010. Hech 2011 and becaonte Carlo share e. The value discd in this reporti

e Emeco Emphing shares all

es

Matc

of $500 and h the terms of

OP, Emeco pro

er the ESOP, athe calendar es the Compa

behalf of ESate from the C

riction Periodarlier of the e

n table 5 are r party givingmination payme contracts.

The vesting date g day after the a

the Company’s the FY10 LTI plan

e was not a key mame a key managprice simulationlosed in the Direcng period. The F

ployee Share ocated to the

ching shares g

913

567

913

913

913

a maximum of the ESOP.

ovides one ma

a participatingyear in whichany before th

SOP participanCompany.

. The ESOP aexpiry of the R

employed pu6 months’ no

ments other th

is also the expiryannouncement o

Annual Generaln. management pegement person on model, and is actors’ and OfficeFY10 fair value

Ownership Pem under the

granted

of $5,000 of

atching share

g employee mh the matchinhe expiry of th

nts by the tr

administrator,Restriction Pe

ursuant to conotice or on thhan salary in

48

y date. f the Company’s

l Meeting on 16

rson in FY10. Hen that date. allocated to eachrs’ remunerationdisclosed is post

Plan (“ESOP”). ESOP are set

pre‐tax salary

at no cost to

must remain inng shares arehe Restriction

ustee, Pacific

, Link Marketeriod and the

ntracts whiche payment tolieu of notice

s

6

e

h n t

. t

y

o

n e n

c

t e

h o e

For

per

sona

l use

onl

y

DirectorsFor the yea Mr Keith Go Mr Gordon’snotice on eitpayment in l Under Mr Goof Emeco Ho

Mr Gordo

For a perentitled treduced t

If, withinsubstanti(other thconduct abring his an end, foequivalen

Mr Stephen Mr Gobby’s cor on the paHoldings Ltd is entitled toof his STI bon Mr Hamish C Mr Christie‐Jmonths’ noti


rdon

s employmentther side. Hoieu of notice n

ordon’s emplooldings Ltd:

on’s LTI award

riod of two yeto 12 monthsto 6 months.

n two years ially changes han with the and indicatingemployment ollowing servint to 12 mont

Gobby

contract is forayment to hi occurs or hiso terminate thnus.

Christie‐Johns

Johnston’s coice or on the p

contd. 0 June 2011

t is for an indewever, Emecnot given.

oyment agree

ds will automa

ears following s’ notice of t

of a change Mr Gordon’sExecutive’s ag that he consto an end. Ifice of the aboh's base salar

r an indefinitem of up to 6s duties are mhe contract an

ston

ontract is for payment to hi

1

efinite duratioo may termin

ement the foll

atically vest.

a change of ctermination. A

of control es duties beyoagreement) hsiders the conf Emeco has reove notice on ty in lieu of no

e term and pro6 months’ salmaterially channd to be paid

an indefinite im of up to 3

on. His emplonate Mr Gord

lowing terms

control event At the expiry

event in respond the dutiee may serve nduct to be a epudiated thethe Emeco Bootice.

ovides that it ary in lieu ofnged within cea maximum a

term and prmonths’ salar

oyment may bdon’s employm

apply if there

in respect of y of the two

ect of Emecos ordinarily pwritten noticserious breace Contract andoard, Mr Gord

is terminablef notice. If, hertain time peamount of 6 m

ovides that itry in lieu of no

e terminated ment with a

e is a change o

Emeco Holdinyear period,

o Holdings Ltperformed byce on the Emch of the Cond his employmon will be ent

e on either paowever, a cheriods specifiemonths base

t is terminablotice.

by the givinglesser period

of control eve

ngs Ltd, Mr Gthe notice p

td, Emeco my a Chief Execmeco Board dntract and thament is therebtitled to recei

rty giving 6 mhange of conted in the contsalary and th

le on either p

49

g of 6 months’ of notice on

ent in respect

Gordon will beperiod will be

materially andcutive Officerdescribing thet he elects toby brought tove a payment

months’ noticetrol of Emecotract, then hee full amount

party giving 3

’ n

t

e e

d r e o o t

e o e t

3

For

per

sona

l use

onl

y


Non ‐ ExecuA maximum remuneratio The remune$108,680 pa$174,486, ina member of

Remunerat The Directorexecutives wsignificant prentitlementsachievement The KPIs userewarded for The extent toSTI entitlemeFY10. Furtheexecutives resignificant imrelating to th Based on theachieved a coSTI entitlemeEBITA increaincreased frexecutives w The Companat close of tmaintained exceptions. Fcrisis. Secondand has declshare in respdividend distIn this regaperformance


utive Directoamount of $n available to

ration of all oa, inclusive ofclusive of supf a Board Com

tion and the

s consider thawith the interoportion of ts are linked tt of strategic o

ed to determr robust earni

o which Emecents are genuermore, only eceived an STmprovement ihe restructurin

e consolidatedompound annents of Emecoased by 21.0%om 8.3% to

were increased

ny’s share prictrading on 1 its dividend pFirst, no dividd, the compalared a dividepect of FY11. Ttributions or ird, the Come and align the

contd. 0 June 2011

ors $1,200,000 pao Non‐Executiv

of the Non‐Exf superannuatperannuation mmittee; this f

Company’s p

at the remunerests of the the senior exto financial moutcomes. LTI

mine STI entitings performa

co has set finauinely at risk ‐two senior eTI payment inin earnings anng of Emeco’s

d results set onual decline ino’s senior exe% from $83.6 11.3% over d in FY11.

ce has declineJuly 2010 to policy of payend was paidny paid a speend of three cThe primary mncreases in th

mpany will me interests of

1

a is currently ve Directors.

xecutive Diretion contribucontributionsfee is increase

performance

eration policieCompany anecutive’s remmeasures of I entitlements

tlements haveance and the a

ancial perform‐ is highlightedexecutives ren FY08. In FYnd return on s operations.

out in the Comn operating EBecutives in themillion in FYthe same pe

ed significantly$1.13 at clo

ying shareholdd for the half ycial dividend cents per shameans availablhe Company’saintain remumanagement

prescribed in

ectors other ttions. As Chas. An additioned to $10,868

e

es of the Comd its shareho

muneration is the Compans are linked to

e been devisachievement o

mance KPIs whd by the fact eceived an ST11, STI paymcapital and t

mpany’s finanBITA of 5.9%. ese years werY10 to $101.2eriod, with th

y since FY07; ose of tradingders betweenyear ended 3of five cents re for the hale to the Coms share price, uneration polt with the inte

n the Compan

han Mr Brenairman, Mr Bal annual fee for a Director

mpany effectivolders. This h“at risk” in thy’s profitabilo measures of

sed to ensureof key strateg

hich are genuthat no senioTI payment inents to seniothe achieveme

ncial statemenAs a result of re significantly million in FYhe result tha

however, it ig on 30 June n 35% and 451 December 2per share for lf year endedpany to growis to strive to icies and praerests of share

ny’s constitut

nan compriserennan is entof $8,151 is pr who chairs a

ely align the ihas been achhe form of STity and returtotal shareho

e that key mic objectives.

inely challengor executive rn FY09 and oor executives ent of a num

nts for FY06 ththese decliney reduced. HoY11, and its ot STI entitlem

ncreased by n2011. Furthe5% of the Co2009 in the wthe half year

d 30 June 201 shareholder increase earnactices whicheholders.

ion as the to

es a cash Diretitled to an apaid to any Dia Committee.

interests of Emhieved by ensTI and LTI comrn on capitalolder return.

anagement p

ging ‐ and whireceived an STonly five of eincreased as

mber of strateg

hrough to FY1es, and as noteowever, Emecoperating retuments for Em

nearly 100% fermore, the Company’s prowake of the gl ended 31 De11, a total of twealth, whetnings and retuh reward str

50

otal aggregate

ector’s fee ofannual fee ofirector who is

meco’s seniorsuring that amponents. STI, and to the

personnel are

ich entail thatTI payment ineleven seniora result of agic objectives

10, the Grouped above, theco’s operatingurn on capitalmeco’s senior

from 57 centsCompany hasofit, with twoobal financialecember 2010ten cents perher by way ofurn on capital.ong financial

e

f f s

r a I e

e

t n r a s

p e g l r

s s o l 0 r f . l

For

per

sona

l use

onl

y


Indemnif The CompanDirectors, thindemnifies Company. Thdefending ce Since the encurrent and by such a Dinsurance prThe Group h

Non‐audi During the yduties. The Board hprovision of auditor indep

all non‐a

the non‐out in Aauditorsfor the C

A copy of thincluded in t Details of fee

Rounding The amountsrounding is aThe Compan Signed in acc Keith GordonManaging Di Dated at Per


fication an

ny has enterehe Chief Finathe officer orhe deed provertain proceed

nd of the prevformer Direct

Director, Officeohibit disclosuas not indemn

it services

year, KPMG, t

has consideredthose non‐aupendence req

audit services

‐audit serviceAPES 110 Cods own work, aCompany or jo

he auditor’s inhe Director’s

es paid to the

g

s contained iapplicable) uny is an entity

cordance with

n rector

th, 22nd day o

contd. 0 June 2011

nd insuran

ed into a deeancial Officer r former officides that the dings or appea

vious financiators and Officer or Executiure of the natnified its audi

s

the Company’

d the non‐auudit services dquirements of

were subject

es provided doe of Ethics focting in a maointly sharing

ndependencereport.

Company’s a

n this report nder the optioto which the

h a resolution

of August 2011

1

nce of dire

ed of access,and the Com

cer, to the extCompany muaring before a

al year, the Cers of the Emve to the extture of the liabtors, KPMG.

’s auditor, ha

dit services pduring the yeathe Corporat

to the Corpo

o not undermor Professionanagement or the risks and

e declaration

uditors for no

and in the fion available toClass Order ap

of the Directo

1.

ectors, off

, indemnity ampany Secretent permitteust advance than inquiry or h

Company has meco Group, intent permittebility cover an

as performed

provided duriar by the auditions Act 2001

rate governan

mine the general Accountantdecision makrewards.

as required u

on‐audit servic

nancial reporo the Companpplies.

ors.

ficers and

and insurancetary. Under ted by law, forhe officer reahearing of a go

paid premiumncluding senioed by the Cornd the amoun

certain othe

ng the year bitor is compat for the follow

nce procedure

ral principles ts, as they didking capacity f

under Section

ces are found

rt have been ny under ASIC

d auditors

e with each othe terms ofr liabilities incsonable costsovernment ag

ms in respector executives,rporations Act of the prem

r services in a

by the auditotible with, andwing reasons:

es adopted by

relating to aud not involve for the Comp

n 307C of the

in Note 8 of t

rounded to tClass Order 9

of its currentf the deed, tcurred as an s incurred by gency.

t of contracts, against liabilct 2001. Themium.

addition to th

or and is satisd did not com

y the Compan

uditor indepen reviewing orany, acting as

e Corporation

the financial r

the nearest $98/100 dated

51

t and formerthe Companyofficer of thethe officer in

s insuring thelities incurrede contracts of

heir statutory

sfied that thempromise, the

y;

ndence as setr auditing thes an advocate

s Act 2001 is

report.

1,000 (where10 July 1998.

r y e n

e d f

y

e e

t e e

s

e .

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y

Emeco HoldiConsolidatedFor the year

Continuing

Revenue fro

Revenue fro

Revenue fro

Changes in

Repairs and

Employee e

Hired in equ

Gross profit

Other incom

Other expen

Impairment

Business res

EBITDA(1)

Impairment

Depreciatio

Amortisatio

EBIT(2)

Financial inc

Financial co

Profit befor

Income tax

Profit from

Discontinue

Loss from d

(net of inco

FCTR of disc

Loss on sale

Loss from d

Profit/(Loss

Other comp

Foreign cur

foreign ope

FCTR of disc

Effective po

of cash flow

Total comp

The consolidof the financ

ings Limited ad Statement oended 30 Jun

operations

om rental inco

om the sale o

om maintena

machinery an

d maintenanc

expenses

uipment and

t

me

nse

t of tangible a

structuring co

t of goodwill

n expense

on expense

come

osts

re income tax

(expense)/be

continuing o

ed operations

discontinued o

me tax) befo

continued op

e of discontin

discontinued o

s) for the year

prehensive in

rency transla

rations

continued op

ortion of chan

w hedges

rehensive inc

ated statemecial statement

and its Controof Comprehenne 2011

ome

f machines a

nce services

nd parts inve

e

labour

assets

osts

x expense

enefit

perations

s

operations

re equity tran

erations disp

nued operatio

operations

r

ncome (after

tion differen

erations disp

nges in fair va

come/(loss) fo

ent of comprets set out on p

olled Entitiesnsive Income

nd parts

ntory

nsfers

posed (3)

ons (net of tax

tax)

ces for

posed (3)

alue

or the year

hensive incompages 58 to 13

x)

me is to be re32.

Note

6

7

7

20

7

7

7

7

9

13

13

13

ead in conjunc

2011

$'000

386,5

62,7

53,1

502,4

(69,4

(129,2

(40,7

(8,9

254,1

7,2

(42,1

(3,7

215,3

(121,9

(2

93,2

2

(23,2

70,2

(20,2

49,9

(4

4

(3

(3

49,6

(16,9

4

3,2

(13,2

ction with the

201

$'00

530 30

795 64

170 3

495 404

432) (7

240) (94

769) (34

916) (

138 20

211

198) (2

772) (1

‐

379 16

‐ (20

915) (9

258)

206 4

281

240) (2

247 2

273) (1

974 1

434) (5

420 (

351)

365) (6

609 (4

978) (

420

259

299)

e notes to and

53

10

00

2,355

4,328

8,276

4,959

2,010)

4,208)

4,677)

2,857)

1,207

5,025

3,804)

3,793)

(950)

7,685

0,105)

8,775)

(295)

8,510

157

2,882)

5,785

3,485)

2,300

6,242)

5,371)

‐

1,613)

9,313)

5,473)

5,371

3,290

3,188

d forming partt

For

per

sona

l use

onl

y


Attributed t

Equity hold

Earnings pe

Basic earnin

Diluted earn

Earnings pe

Basic earnin

Diluted earn

(1) EBITDA ‐ (2) EBIT ‐ Ear(3) FCTR ‐ T

operation The consolidof the financ

ings Limited ad statement oended 30 Jun

to:

ers of the Co

er share:

ngs/(loss) per

nings/(loss) p

er share‐conti

ngs per share

nings per sha

Earnings befornings before Transfer of Fons of the Grou

ated statemecial statement

and its Controof comprehenne 2011

mpany

r share

per share

inuing operat

re

ore interest exinterest expeoreign Currenup being dispo

ent of comprets set out on p

olled Entitiesnsive income (

tions

xpense, tax, dense and tax.ncy Translatioosed.

hensive incompages 58 to 13

(continued)

epreciation a

on Reserve (“

me is to be re32.

Note

36

36

36

nd amortisati

“FCTR”) from

ead in conjunc

2011

$'000

36,3

2011$

0.081

0.079

0.082

0.079

on.

equity reserv

ction with the

201

$'00

310 (4

201$

(0.08

(0.08

‐

0.02

0.02

rve to profit

e notes to and

54

10

00

6,125)

10

80)

80)

20

20

upon foreign

d forming part

n

t

For

per

sona

l use

onl

y

Emeco HoldiConsolidatedas at 30th Ju

Current Ass

Cash assets

Trade and o

Inventories

Prepaymen

Current tax

Assets class

Total curren

Non‐curren

Trade and o

Intangible a

Property, p

Total non‐c

Total assets

Current Liab

Trade and o

Interest bea

Current tax

Provisions

Liabilities cl

Total curren

Non‐curren

Interest bea

Deferred tax

Provisions

Total non‐c

Total liabilit

Net assets

Equity

Share capita

Reserves

Retained ea

Total equity

The consolidfinancial stat

ings Limited ad Statement oune 2011

sets

other receivab

ts

asset

sified as held

nt assets

t assets

other receivab

assets

lant and equi

urrent assets

s

bilities

other payable

aring liabilitie

liabilities

assified as he

nt liabilities

t Liabilities

aring liabilitie

x liabilities

urrent liabilit

ties

al

arnings

y attributable

ated statemetements set o

and its Controof Financial Po

bles

for sale

bles

ipment

s

es

es

eld for sale

es

ties

e to equity ho

ent of financiaut on pages 5

olled Entitiesosition

olders of the

al position is to8 to 132.

Company

o be read in c

Note

16

17

19

18

10

14

17

20

21

22

23

10

25

14

23

11

25

27

conjunction w

2011

$'000

5,502

83,251

48,569

2,313

427

8,728

148,790

581

173,248

658,533

832,362

981,152

48,397

3,308

6,790

5,117

‐

63,612

290,495

23,943

868

315,306

378,918

602,234

610,304

(32,462)

24,392

602,234

with the notes

2010

$'000

5,239

90,327

87,017

4,550

656

38,413

226,202

14

178,192

610,346

788,552

1,014,754

50,737

5,203

5,858

5,302

2,196

69,296

298,892

23,020

803

322,715

392,011

622,743

609,578

(18,429

31,594

622,743

to and formin

55

)

ng part of thee

For

per

sona

l use

onl

y


Balance at 1 J

Total compre

Profit or (loss

Other compre

Foreign curre

Exchange diff

Effective port

flow hedge, n

Total compre

Transactions w

Contributions

Own shares a

Dividends to e

Share‐based p

Total contribu

Balance at 30

Balance at 1 J

Total compre

Profit or (loss

Other compre

Foreign curre

Exchange diff

Effective port

flow hedge, n

Total compre

Transactions w

Contributions

Own shares a

Dividends to e

Share‐based p

Total contribu

Balance at 30

(1) Paymen

Incentive

The consolidfinancial stat

ings Limited ad Statement oended 30 Jun

uly 2009

hensive incom

s)

ehensive income

ncy translation

ferences of disp

tion of changes

net of tax

hensive incom

with owners, re

s by and distribu

cquired by emp

equity holders

payment transa

utions by and d

June 2010

uly 2010

hensive incom

s)

ehensive income

ncy translation

ferences of disp

tion of changes

net of tax

hensive incom

with owners, re

s by and distribu

cquired by emp

equity holders

payment transa

utions by and d

June 2011

ts made in se Share Plan.

ated statemetements set o

and its Controof Changes inne 2011

e for the year

e

n differences

posed foreign o

s in fair value of

e/(loss) for the

ecorded directl

utions to owner

ployee share p

actions

istributions to

e for the year

e

n differences

posed foreign o

s in fair value of

e/(loss) for the

ecorded directl

utions to owner

ployee share p

actions

istributions to

satisfaction o

ent of changesut on pages 5

olled EntitiesEquity

6

operations

f cash

e year

ly in equity

rs

lan trust

owners

6

operations

f cash

e year

ly in equity

rs

lan trust

owners

of outstandin

s in equity is t8 to 132.

b

Share pa

capital re

$'000

609,470

‐

‐

‐

‐

‐

‐

68

40 (1)

108

609,578

b

Share pa

capital re

$'000

609,578

‐

‐

‐

‐

‐

‐

220

506 (1)

726

610,304

ng loans on

to be read in c

Share

based

ayment Hedgin

eserve reserv

$'000 $'000

1,832 (10,53

‐

‐

‐

‐ 3,29

‐ 3,29

‐

‐

896

896

2,728 (7,24

Share

based

ayment Hedgin

eserve reserv

$'000 $'000

2,728 (7,24

‐

‐

‐

‐ 3,25

‐ 3,25

‐

‐

3,734

3,734

6,462 (3,98

vested share

conjunction w

Foreign

currency

ng translation

ve reserve

0 $'000

36) (7,562)

‐ ‐

‐ (5,473)

‐ 5,371

90 ‐

90 (102)

‐ ‐

‐ ‐

‐ ‐

‐ ‐

46) (7,664)

Foreign

currency

ng translation

ve reserve

0 $'000

46) (7,664)

‐ ‐

‐ (16,978)

‐ 420

59 ‐

59 (16,558)

‐ ‐

‐ ‐

‐ ‐

‐ ‐

87) (24,222)

s under the

with the notes

Reserve

for own Reta

shares earn

$'000 $'0

(3,870) 93,

‐ (49,

‐

‐

‐

‐ (49,

(2,377)

‐ (12,

‐

(2,377) (12,

(6,247) 31

Reserve

for own Reta

shares earn

$'000 $'0

(6,247) 31,

‐ 49,

‐

‐

‐

‐ 49,

(4,468)

‐ (56,

‐

(4,468) (56,

(10,715) 24

Company’s

to and formi

56

ined Total

nings equity

000 $'000

,532 682,866

,313) (49,313)

‐ (5,473)

‐ 5,371

‐ 3,290

,313) (46,125)

‐ (2,377)

,625) (12,557)

‐ 936

,625) (13,998)

1,594 622,743

ined Total

nings equity

000 $'000

,594 622,743

,609 49,609

‐ (16,978)

‐ 420

‐ 3,259

,609 36,310

‐ (4,468)

,811) (56,591)

‐ 4,240

,811) (56,819)

4,392 602,234

Management

ng part of the

)

)

)

)

)

)

)

)

)

)

t

e

For

per

sona

l use

onl

y


Cash flows

Cash receip

Cash paid to

Cash genera

Interest rec

Interest pai

Income tax

Net cash pr

operating a

Cash flows

Proceeds on

Payment fo

Disposal of

Net cash us

Cash flows

Proceeds fro

Repayment

Purchase of

Payment fo

Payment of

Dividends p

Net cash pr

Net (decrea

Cash at the

Effects of ex

Cash at the

The consolidout on pages

ings Limited ad statement oended 30 Jun

from operati

ts from custo

o suppliers an

ated from op

eived

d

paid

ovided by/(u

ctivities

from investin

n disposal of

r property, p

discontinued

ed in investin

from financin

om borrowin

of borrowing

f own shares

r debt establ

f finance lease

paid

ovided by/(u

se)/increase

beginning of

xchange rate

end of the fi

dated statemes 58 to 132.

and its Controof Cash Flowsne 2011

ing activities

omers

nd employee

erations

sed in)

ng activities

non‐current

lant and equ

d operations n

ng activities

ng activities

ngs

gs

ishment cost

e liabilities

sed in) financ

in cash held

f the period

fluctuations

nancial perio

ent of cash flo

olled Entities

s

assets

ipment

net of cash d

ts

cing activities

on cash held

d

ows is to be r

isposed

s

read in conjun

Note

31(ii)

13

31(i)

nction with th

2011

$'000

517,811

(270,328)

247,483

566

(19,075)

(14,043)

214,931

39,439

(199,950)

14,423

(146,088)

134,151

(130,131)

(4,468)

(4,054)

(7,578)

(56,867)

(68,947)

(104)

5,239

367

5,502

he notes to th

2010

$'000

451,403

(263,023

188,380

162

(23,005

(18,075

147,462

47,523

(155,050

‐

(107,527

119,046

(141,448

(2,377

‐

(7,973

(12,625

(45,377

(5,442

10,422

259

5,239

he financial st

57

)

)

)

)

)

)

)

)

)

)

)

tatements sett

For

per

sona

l use

onl

y

Emeco HoldiNotes to theFor the year

1 Reporti Emeco Hregisterethe Comreferredearthmo

2 Basis of

(a) St Th

acStwSt

Th20

(b) B

Thfo Th

(c) Fu

Thfu Ththth

(d) U

Thmpoth Esar Tham

ImThvathanflofuamTh

ings Limited ae Financial Staended 30 Jun

ing entity

Holdings Limied office is Lempany as at ad to as the “Goving equipme

f preparatio

tatement of che consolidatccordance wtandards Boawith Internatitandards Boar

he consolidat011.

asis of measuhe consolidatollowing mate

derivative he methods u

unctional andhese consolidunctional curr

he Company ihat Class Ordehousand unles

Use of estimathe preparatimanagement tolicies and thehese estimate

stimates and re recognised

he estimates mount of asse

mpairment ofhe recoverablalue less costshe recoverablnd assumptioow, market ruture operatimount of thehe carrying am

and its Controatements ne 2011

ted (the “Comevel 3, 71 Waand for the yeGroup”). The ent to custom

n

compliance ted statemen

with Australiard (“AASB”) aonal Financiard (“IASB”).

ed financial s

urement ted financial erial item in thfinancial instrused to measu

d presentationdated financirency and the

is of a kind reer, all financiass otherwise s

tes and judgemon of the cto make judge reported ames.

underlying as in the period

and judgemeets and liabilit

f assets le amount of s to sell, in ace amount of ns, including; isk premium, ng performae asset, and amount of such

olled Entities

mpany”) is a alters Drive, Oear ended 30 Group is pri

mers in the min

nts are genern Accountingand the Corpoal Reporting

tatements we

statements hhe statement oruments are mure fair values

n currency al statementfunctional cu

ferred to in Aal informationstated.

ments consolidated ements, estimmounts of asse

sumptions ared in which the

nts that haveties within the

each non finaccordance witan asset basethe appropriainterest ratence. Changesccordingly coh assets is set

company doOsborne Park June 2011 cmarily involvning industry

ral purpose fg Standards orations Act 2Standards (“

ere authorised

have been prof financial pomeasured at fs are discussed

s are presenrrency of the

ASIC Class Ordn presented in

financial stamates and asets, liabilities,

e reviewed onestimates are

e a significant e next financia

ancial asset is th the Compaed on a discouate rate at whes, exchange rs in these euld result in aout in note 2

omiciled in AuWA 6017. Thomprise the Ced in the ren(refer note 15

financial state(“AASBs”) ad2001. The co“IFRSs”) adop

d for issue by

repared on tosition: air value d further in no

nted in Austrmajority of th

er 98/100 datn Australian d

atements in sumptions th income and e

n an ongoing e revised and

risk of causinal year are dis

determined any’s accountiunted cash flohich to discourates, growthstimates andan adjustmen0.

ustralia. The ahe consolidatCompany andnting, maintai5).

ements whichdopted by thnsolidated finpted by the

y the Board of

he historical

ote 4.

alian dollars, he Group.

ted 10 July 19dollars has bee

conformity at affect the expenses. Act

basis. Revisionin any future

ng a material acussed below

as the higher ong policy noteow model, reqnt the cash florates, future assumptionsnt to the carry

address of thted financial sd its subsidiarining and sel

h have beenhe Australiannancial statemInternationa

f Directors on

cost basis ex

which is th

998 and in accen rounded t

with the IF application otual results ma

ns to accountperiods affec

adjustment tow:

of the value‐ine 3(i)(ii). Detequires the useows, the timine capital requs impact theying amount

58

he Company’sstatements ofries (togetherling of heavy

prepared inn Accountingments complyal Accounting

22nd August

xcept for the

e Company’s

cordance witho the nearest

FRSs requiresof accountingay differ from

ting estimatescted.

o the carrying

n‐use and fairermination ofe of estimatesng of the cashirements ande recoverableof that asset.

s f r y

n g y g

t

e

s

h t

s g m

s

g

r f s h d e .

For

per

sona

l use

onl

y

Emeco HoldiNotes to theFor the year 2 Basis of

(d) U

RInasutCloar ShThnoThshim

(e) C

Fr

3 Significa The accconsolid (a) B(i) Su

Suthce

(ii) A B

shoffoamThA

(iii) Tr In

trelim


f preparatio

Use of estimatecognition ofn accordance sset is recogntilise these lohanges in theosses and accore set out in n

hare based pahe share baseote 3(k)(v)) whis valuation hareholder rempact on the m

hanges in accrom 1 July 201

ant accounting

counting policdated financia

asis of consolubsidiaries ubsidiaries arhe consolidateeases.

Acquisitions frusiness combhareholder thf the earliest or this purposmounts recoghe componenny cash paid f

ransactions entra‐group baransactions, aliminated in mpairment.


n (continued

tes and judgemf tax losses with the Comised for unusosses. This inese estimatesordingly the renote 11.

ayments ed payments

where the valuincludes estiturn (“TSR”) ameasurement

counting polic10 the Group

g policies

cies set out l statements,

lidation

re entities coned financial s

om entities ubinations arishat controls thcomparative se comparativgnised previounts of equity ofor the acquis

eliminated on lances and trare eliminatedthe same wa

olled Entities

d)

ments (contin

mpany’s accoued tax losses ncludes estim and assumptecoverability o

are recognisue of the sharemates and juand underlyint of the share

cies has not chang

below haveand have bee

ntrolled by thstatements fro

under commoing from tranhe Group are period presenes are revisedusly in the Grof the acquiredition is recogn

consolidationransactions, ad in preparinay as unrealis

nued)

unting policieonly if it is pr

mates and judtions could imof deferred ta

sed in accorde based paymudgements abng share pricebased payme

ged its accoun

e been applieen applied con

he Group. Theom the date

n control nsfers of inteaccounted fonted or, if lated. The assets oup’s controld entities are nised directly

n nd any unreang the consolsed gains, bu

s for deferredrobable that fdgements abmpact on theax assets. The

ance with thement is expensbout volatility. Changes in ent as set out

nting policies.

ed consistentnsistently by G

e financial stathat control

erests in entitor as if the acer, at the dateand liabilities ling shareholdadded to the in equity.

alised incomelidated financut only to th

d taxes (refer uture taxable out future pamount and

e carrying amo

e Company’s sed from the gy, risk free rathese estimatin note 26.

tly to all peGroup entities

tements of sucommences u

ties that are quisition had e that commoacquired are der’s consolidsame compo

and expensecial statemene extent that

r note 3(p)), ae profits will bprofitability ad probability oount of defer

accounting pgrant date toates, dividendtes and assum

eriods presens.

ubsidiaries aruntil the date

under the coccurred at t

on control wa recognised adated financianents within G

es arising fromnts. Unrealiset there is no

59

a deferred taxe available tond tax rates.of unused taxred tax assets

policies (refer vesting date.d yields, totalmptions could

ted in these

re included ine that control

ontrol of thethe beginnings established;t the carryingal statements.Group equity.

m intra‐grouped losses areo evidence of

x o . x s

r . l d

e

n l

e g ; g . .

p e f

For

per

sona

l use

onl

y


3 Signific

(b) Fo(i) Fo

Trexcudafupe NreNth

(ii) Fo

Thacanth Focusio

(c) Fi(i) N

Toc Texininas Fipose Th LoLoaccoef

Lo

CCm


ant account

oreign currenoreign currenransactions inxchange ratesurrencies at tate. The foreiunctional curreriod, and the

on‐monetaryetranslated toon‐monetaryhe exchange r

oreign operathe assets andcquisition, arend expenses he transaction

oreign currenurrency transgnificant influperation is re

inancial instruNon‐derivativeThe Group initother financialontractual pro

The Group dexpire, or it tran which substnterest in transset or liabilit

inancial assetosition when,ettle on a net

he Group has

oans and receoans and recective market.osts. Subseqffective intere

oans and rece

Cash and cash Cash and cashmonths or less


ing policies (

ncy ncy transaction foreign curres at the datethe reporting ign currency grency at the be amortised co

y assets and lio the functiony items in a forrate at the dat

tions d liabilities ofe translated tof foreign opns.

cy differencelation reserveuence or joinclassified to p

uments e financial asstially recognisl assets are reovisions of the

recognises a ansfers the rigtantially all thnsferred finany.

ts and liabilit, and only whbasis or to re

non‐derivativ

eivables eivables are f Such assetsuent to initiaest method, le

eivables comp

equivalents h equivalentss.

olled Entities

(continued)

ns encies are traes of the trandate are retrgain or loss oneginning of thost in foreign

abilities denoal currency atreign currencyte of the trans

f foreign opero the functioerations are t

s are recognise (“FCTR”) in ent control is lprofit or loss a

sets ses loans and ecognised initie instrument.

financial asseghts to receivehe risks and rncial assets th

ties are offsehen, the Groualise the asse

ve financial as

inancial asset are recognisl recognition ess any impair

prise trade and

s comprise ca

nslated to thensactions. Moranslated to tn monetary ithe period, adjcurrency tran

ominated in fot the exchangy that are mesaction.

rations, inclunal currency translated to

sed in other cequity. Whenost, the cumas part of the g

receivables aially on the tr.

et when the e the contracrewards of owat is created

et and the neup has a legaet and settle th

ssets being: lo

ts with fixed osed initially atloans and rerment losses.

d other receiv

ash balances

e respective funetary assetsthe functionatems is the difjusted for effenslated at the

oreign currence rate at the dasured in term

ding goodwilat exchange rAustralian do

comprehensivn a foreign opulative amougain or loss on

and deposits orade date at w

contractual rtual cash flowwnership of tor retained b

et amount pral right to offhe liability sim

oans and recei

or determinabt fair value pleceivables are

vables.

and call dep

unctional currs and liabilitiel currency at fference betwective interestexchange rat

cies that are date that the fms of historica

l and fair valurates at the reollars at exch

ve income, aneration is dispunt in the FCTn disposal.

on the date thwhich the Gro

ights to the cws on the finathe financial ay the Group i

resented in tfset the amoumultaneously.

vables.

ble payments us any direct measured at

posits with or

rencies of Groes denominatthe exchange

ween amortiset and paymente at the end o

measured at fair value wasal cost are tra

ue adjustmeneporting dateange rates at

nd presented posed of suchTR related to

hat they are ooup becomes a

cash flows frncial asset in asset are tranis recognised

the statemenunts and inte

s that are not tly attributablt amortised c

riginal maturi

60

oup entities atted in foreigne rate at thated cost in thents during theof the year.

fair value ares determined.anslated using

nts arising one. The incomet the dates of

in the foreignh that control,o that foreign

originated. Alla party to the

om the asseta transactionnsferred. Anyas a separate

t of financialnds either to

quoted in ane transactioncost using the

ities of three

t n t e e

e . g

n e f

n , n

l e

t n y e

l o

n n e

e

For

per

sona

l use

onl

y


3 Signific (c) Fi(ii) N

Toao Te Fpse TfiSe O Ba

(iii) DThexpch

Oreanbetharrewbeu

CaWattrdeAlo Wamreinotr


ant account

inancial instruNon‐derivativeThe Group initoriginated. Alre recognisedof the instrum

The Group derxpire.

inancial assetposition whenettle on a net

The Group clainancial liabilubsequent toffective intere

Other financia

Bank overdraftre included as

Derivative finahe Group hoxposures. Derofit or loss whanges therei

On initial desigelationship bend strategy ine used to asshe inception ore expected tespective hedwithin a range e highly probltimately affe

ash flow hedgWhen a derivattributable to ransaction therivative is reny ineffectiveoss.

When the hedgmount of theeclassified to nstrument no r the designaransaction is n


ing policies (

uments (conte financial liabtially recognisl other financd initially on thent.

recognises a f

ts and liabilitn, and only w basis or to re

assified non‐dities are recoo initial recogest rate meth

l liabilities com

ts that are reps a componen

ancial instrumolds derivativeerivatives are rwhen incurredn are account

gnation of thetween the hen undertaking ess the effectof the hedge to be “highlydged items atof 80‐125 pebable to occct reported p

ges ative is desiga particular rat could affeecognised in oe portion of ch

ged item is a e asset when profit or loss longer meetsation is revono longer expe

olled Entities

(continued)

inued) bilities ses debt securcial liabilities (he trade date

financial liabili

ties are offsehen, the Groealise the asse

derivative finaognised initialgnition, theseod.

mprise loans a

payable on dent of cash and

ments, includine financial inrecognised inid. Subsequentted for as desc

he derivative edging instrumthe hedge trativeness of threlationship ay effective” inttributable toercent. For a ur and shourofit or loss.

nated as therisk associatedect profit or other comprehanges in the

non‐financial the asset is rin the same s the criteria ked, then heected to occu

rities issued a(including liabat which the

ity when its c

et and the neup has a legaet and settle t

ancial liabilitielly at fair vale financial lia

and borrowin

emand and fo cash equivale

ng hedge acconstruments toitially at fair vt to initial reccribed below.

as the hedgment and hedansaction andhe hedging reas well as on n offsetting to hedged riskcash flow held present a

e hedging instd with the recloss, the effeehensive incoe fair value of

asset, the amrecognised. period that tfor hedge accedge accountr, then the ba

and subordinabilities designaGroup becom

contractual ob

et amount pral right to offhe liability sim

es into the otlue plus any bilities are m

gs, bank over

orm an integraents for the p

ounting o hedge its fvalue; attributcognition, deri.

ing instrumendged item, incd the hedged rlationship. Than ongoing bthe changes and whethedge of a forecn exposure t

trument in a ognised assetective portiome and presethe derivativ

mount recognIn other casehe hedged itecounting, expting is disconalance in equit

ated liabilitiesated at fair vames a party to

bligations are

resented in tfset the amoumultaneously.

ther financial directly attri

measured at a

drafts, and tra

al part of the Gurpose of the

oreign currentable transactivatives are m

nt, the Groupcluding the risrisk, together e Group makbasis, whethein the fair var the actual rcast transactito variations

hedge of thet or liability orn of changesented in the e is recognise

ised in equitys the amountem affects proires or is soldntinued prospty is reclassifie

s on the date alue through o the contractu

discharged o

the statemenunts and inte

liabilities catbutable transamortised co

ade and other

Group’s cash e statement of

ncy and intetion costs are measured at fa

p formally dosk managemewith the metkes an assessmer the hedgingalue or cash results of eacon, the transin cash flow

e variability r a highly probs in the fair hedging reseed immediate

y is included int accumulateofit or loss. Id, terminated pectively. If ed in profit or

61

that they areprofit or loss)ual provisions

r cancelled or

t of financialends either to

tegory. Suchsaction costs.sts using the

r payables.

managementf cash flows.

rest rate riskrecognised inair value, and

ocuments theent objectiveshods that willment, both atg instrumentsflows of thech hedge areaction shouldws that could

in cash flowsbable forecastvalue of therve in equity.ely in profit or

n the carryingd in equity isf the hedgingor exercised,the forecast

r loss.

e ) s

r

l o

h . e

t

k n d

e s l t s e e d d

s t e . r

g s g , t

For

per

sona

l use

onl

y


3 Signific (c) Fi(iv) Sh

OWac

OOsh PuWcodeforetr DD

(d) P(i) R It

ac Co

cobitfu

W

as

Thprw

(ii) Su Th

cacoanthp


ant account

inancial instruhare capital

Other non‐tradWhen a derivaccounting, all

Ordinary shareOrdinary sharehares and sha

urchase of shaWhen share caonsideration eduction fromor own shareseceived is recransferred to/

Dividends ividends are r

roperty, plantecognition anems of propccumulated im

ost includes onstructed asringing the asems and resunctionality of

When parts of s separate ite

he gain or losroceeds from

within other in

ubsequent cohe cost of rearrying amouomponent wind refurbishmhat expendituroperty, plant


ing policies (

uments (cont

ding derivativeative financialchanges in its

es es are classifire options are

are capital (trapital recognispaid, which im equity. Purcs net of any tacognised as a/from retained

recognised as

t and equipmnd measuremperty, plant mpairment los

expenditure tssets includes ssets to a workstoring the sif the related e

an item of prms (major com

ss on disposal disposal withcome/other e

osts eplacing a count of the itell flow to the ments of equiure is expectedt and equipme

olled Entities

(continued)

inued)

es instrument is fair value are

ed as equity. e recognised a

reasury sharessed as equity ncludes direcchased sharesax effects. Whn increase in d earnings.

a liability in t

ment ent and equipmesses.

that is directthe cost of mking conditionite on whichequipment is c

roperty, plant mponents) of

l of an item oh the carryingexpenses in pr

mponent of em if it is proGroup, and itpment is capd to provide fent are recogn

is not designae recognised

Incrementaas a deduction

s) is purchased ctly attributabs are classifiedhen treasury sequity, and t

he period in w

ent are mea

tly attributablmaterials and n for their inteh they are locapitalised as

and equipmef property, pla

of property, pg amount of profit or loss.

an item of pobable that tts cost can beitalised in profuture economnised in profit

ated in a hedimmediately i

l costs directn from equity

by the emploble costs, netd as treasury shares are solthe resulting

which they are

sured at cos

le to the acqdirect labour,ended use, thocated. Purch part of that e

ent have diffeant and equipm

lant and equiproperty, plan

property, planthe future ece measured reoperty, plant mic benefits. t or loss as inc

ge relationshn profit or los

ly attributabl, net of any ta

oyee share plat of any tax eshares and ard or reissued surplus or de

e declared.

st less accum

uisition of th any other coe costs of dismased softwarequipment.

rent useful livment.

pment is detent and equipm

nt and equipmconomic beneeliably. Expenand equipmeThe costs of tcurred.

ip that qualifss.

le to the issuax effects.

an trust, the aeffects, is recre presented isubsequentlyeficit on the t

mulated depr

he asset. Theosts directly amantling and re that is int

ves, they are a

ermined by cment and is re

ment is recogefits embodienditure on maent as it is incthe day‐to‐da

62

fies for hedge

e of ordinary

amount of thecognised as ain the reservey, the amounttransaction is

reciation and

cost of self‐ttributable toremoving thetegral to the

accounted for

omparing theecognised net

gnised in theed within theajor overhaulscurred, whereay servicing of

e

y

e a e t s

d

‐o e e

r

e t

e e s e f F

or p

erso

nal u

se o

nly


3 Signific (d) P(iii) D

Ituslivfo Atias Dmis Th LPFOMS

(e) In(i) G

G

Gof(n SuG

(ii) O O

ac (iii) A A

Ainliv

Aap


ant account

roperty, plantDepreciation ems of propeseful lives anves, residual vor major items

ssets are depme an asset isset, the estim

epreciation omotor vehicless calculated an

he estimated

easehold ImpPlant and Equiurniture, FixtuOffice EquipmeMotor Vehicleundry Plant

ntangible asseGoodwill oodwill (nega

oodwill repref the identifianegative good

ubsequent meoodwill is me

Other intangibOther intangibccumulated a

Amortisation mortisation is

mortisation intangible asseves for the cu

Software

mortisation mppropriate.


ing policies (

t and equipm

erty, plant and are chargedvalues and thes.

reciated fromis completed mated useful l

on buildings, s and sundry pnd charged on

useful lives a

provements pment ures and Fittinent s

ets

ative goodwill)

esents the excable assets, liadwill), it is reco

easurement asured at cos

ble assets le assets that mortisation a

s based on the

s recognised ets, other thanrrent and com

methods, usef

olled Entities

(continued)

ment (continue

nd equipmentd to the statee depreciation

m the date of aand held readife of the tota

leasehold implant is calculan machine hou

re as follows:

ngs

) arises on the

cess of the cosabilities and cognised imme

t less accumu

are acquired nd accumulat

e cost of an as

in profit or n goodwill, frmparative per

0 – 3 yea

ful lives and re

ed)

t, excluding fement of comn method are

acquisition ordy for use. Wal new asset is

mprovements,ated on a straurs worked ov

15 yea3 – 1510 yea3 – 105 year7 – 10

e acquisition o

st of the acqucontingent liaediately in pro

ulated impairm

by the Groupted impairme

sset less its re

loss on a stom the date iods are as fo

ars

esidual values

freehold landmprehensive imade on a re

, in respect ofWhere subseqs reassessed a

, furniture, fight‐line basisver their estim

ars5 years ars 0 years rs 0 years

of subsidiaries

uisition over tbilities of theofit or loss.

ment losses.

p and have finnt losses.

esidual value.

raight‐line bathat they arellows:

s are reviewed

, are depreciincome. Estimegular basis, w

f internally couent expendiand depreciat

ixtures and fs. Depreciatiomated useful li

s.

he Group’s ine acquiree. W

ite useful lives

asis over the available for

d at each repo

ated over thmates of remwith annual re

onstructed assiture is capitaion charged a

fittings, officeon on plant anife.

nterest in the When the exce

s are measure

estimated u use. The esti

orting date an

63

eir estimatedmaining usefule‐assessments

sets, from thelised into theaccordingly.

e equipment,nd equipment

net fair valuess is negative

ed at cost less

seful lives ofimated useful

nd adjusted if

d l s

e e

, t

e e

s

f l

f For

per

sona

l use

onl

y


3 Signific

(f) Le Le

cllore

O (g) In In

thcomovo

Inein

(h) W P

rein

(i) Im(i) N A

deevev

Odcc Tinreba


ant account

eased assets eases in termlassified as finower of its faecognition, th

Other leases ar

nventories nventories arehe first‐in firsosts and othemanufactured verheads basrdinary course

nventory is ocntitled to a rnventory on R

Work in progrerogressive capespective statn progress”. U

mpairment Non‐derivative financial assetermine whevidence indicavent had a ne

Objective evidelinquency byonsider otherorrelate the d

The Group conndividually sieceivables foubeen incurredssessed for im


ing policies (

ms of which tnance leases. air value ande asset is acco

re operating le

e measured atst‐out principler costs incurinventories ed on normae of business,

ccasionally sorebate upon RPOs to reflect

ess pital work to ement of finaUpon work co

e financial assset not carrieether there is ates that a losegative effect

ence that finy a debtor, rerwise, indicatidefaults.

nsiders evidengnificant recund not to be d but not yetmpairment by

olled Entities

(continued)

the Group asUpon initial red the presentounted for in

eases and are

t the lower ofe, and includrred in bringiand work in

al operating c less the estim

old under a Reexercising tht the consump

inventory andancial positionmpletion the

sets ed at fair valuobjective eviss event has oon the estima

ancial assets estructuring ofons that a de

nce of impairmceivables are specifically imt identified. Rgrouping tog

ssumes substaecognition thet value of thaccordance w

e not recognis

f cost and netdes expenditung them to tn progress, ccapacity. Net mated costs o

ental Purchase option. A ption of econo

d fixed assets n classificationbalance is cap

ue through pdence that it occurred afterated future ca

(including eqf an amount debtor or issuer

ment for receiassessed fo

mpaired are thReceivables tether receiva

antially all the leased assethe minimum with the accou

ed in the Gro

t realisable vaure incurred intheir existing cost includes realisable valf completion

se Option (“Rcharge is reomic benefits

are carried inns with fixed apitalised.

profit or loss is impaired. r the initial resh flows of th

quity securitiedue to the Grr will enter ba

vables at bothor specific imhen collectivethat are not bles with simi

e risks and rt is measured lease paymeunting policy a

up’s statemen

alue. The cost n acquiring thlocation andan appropr

ue is the estiand selling ex

PO”). Undercognised agarelated to tha

n work in progassets being d

is assessed aA financial ascognition of that asset that

es) are impairoup on termsankruptcy and

h a specific asmpairment. Aely assessed foindividually silar risk charac

rewards of oat an amoun

ents. Subsequapplicable to t

nt of financial

t of inventoriehe inventoried condition. Inriate share oimated sellingxpenses.

r the RPO theainst the carrat inventory.

gress accountdisclosed as a

at each reposset is impairethe asset, andcan be estima

red can inclus that the Grod economic co

sset and collecAll individualor any impairmsignificant arcteristics.

64

wnership aret equal to theuent to initialthat asset.

position.

es is based ons, productionn the case ofof productiong price in the

e purchaser isying value of

ts within their“capital work

rting date toed if objectived that the lossated reliably.

de default orup would notonditions that

ctive level. Allly significantment that hase collectively

e e l

n n f n e

s f

r k

o e s

r t t

l t s y

For

per

sona

l use

onl

y


3 Signific (i) Im(i) N

Inreesu

Addrereto

(ii) NTharsutheare

Thsecofograrimimpar

ThCGim

Imalth

Aredeusasde Gte


ant account

mpairment (coNon‐derivativen assessing coecoveries andconomic anduggested by h

An impairmenifference betiscounted at eflected in anecognised. Wo decrease, th

Non‐financial ahe carrying are reviewed auch indicationhat have indeach year at telated cash ge

he recoverabell. In assessiosts. Fair valuor similar busirouped togetre largely indmpairment tesmpairment is urposes. Goore expected to

he Group’s coGU. Corporampairment as

mpairment losllocated first hen to reduce

n impairmentecognised in ecreased or nsed to determsset’s carryingepreciation o

oodwill assetesting goodwi


ing policies (

ontinued) e financial assollective impad the amount d credit condhistorical tren

nt loss in restween its cathe asset’s

n allowance hen a subseqhe decrease in

assets mounts of that each reporn exists, then tfinite useful lhe same timeenerating unit

le amount of ng fair value, ue is calculatedinesses. For ther into the sdependent ofsting, CGUs totested refledwill acquiredo benefit from

orporate asseate assets arpart of the te

sses are recoto reduce thee the carrying

t loss in respprior periodsno longer exismine the recog amount doer amortisation

ts were testedll for impairm

olled Entities

(continued)

sets (continueirment, the Gof loss incurritions are suds.

spect of a finrrying amounoriginal effecaccount againuent event (en impairment

he Group’s norting date to the asset’s reives or that ae. An impairmt (“CGU”) exce

an asset or Cthe Group had with regardthe purpose osmallest grouf the cash ino which goodcts the lowed in a businesm the synergie

ets do not gere allocated tsting of the C

gnised in proe carrying amamount of the

ect of goodws are assessests. An impairoverable amoes not exceedn, if no impair

d for impairmment.

ed) Group uses hisred, adjusted ch that the

nancial assetnt and the pctive interestnst receivablee.g. repaymenloss is reverse

on‐financial asdetermine wcoverable amare not yet avment loss is reeds its estim

CGU is the greas assessed thd to the discouof impairmentup of assets thnflows of othdwill has beenest level at wss combinatioes of the comb

nerate separato CGUs on CGU to which t

ofit or loss. Immount of any e other assets

will is not reveed at each rement loss is rount. An impad the carryingrment loss had

ment at 30 Ju

storical trendsfor managemactual losses

measured apresent valuet rate. Losseses. Interest ont by a debtored through pr

ssets, excludihether there

mount is estimvailable for usrecognised if ated recovera

eater of its valhe amount it cunted post taxt testing, assethat generateser assets or n allocated arwhich goodwn is allocatedbination.

ate cash infloa reasonablethe corporate

mpairment losgoodwill allocs in the CGU (

ersed. In respeporting datereversed if thairment loss ig amount thad been recogn

une 2011 as p

s of the probament’s judgem

are likely to

at amortised e of the estis are recognion the impair) causes the arofit or loss.

ng inventorieis any indicatated. For gooe, the recovethe carrying able amount.

ue in use andcould obtain ox cash flows ots that cannots cash inflowsCGUs. For e aggregated ill is monitorto groups of

ows and are ue and consiste asset is alloc

sses recognisecated to the Cgroup of CGU

pect of other for any indiere has been is reversed oat would havenised.

part of the Gr

ability of defament as to who be greater

cost is calcuimated futurised in profitred asset conamount of im

es and deferretion of impaiodwill and intaerable amountamount of a

d its fair valueon disposal, leor comparablet be tested ins from continthe purposes so that the lred for intercash‐generat

utilised by mtent basis ancated.

ed in respectCGU (group oUs) on a pro ra

assets, impaications that a change in tnly to the exe been determ

roup’s proces

65

ault, timing ofether currentor less than

ulated as thee cash flowst or loss andntinues to bepairment loss

ed tax assets,rment. If anyangible assetst is estimatedn asset or its

e less costs toess realisatione transactionsdividually areuing use thats of goodwillevel at whichnal reportingting units that

ore than onend tested for

t of CGUs areof CGUs), andata basis.

irment lossesthe loss hasthe estimatesxtent that themined, net of

ss of annually

f t n

e s d e s

, y s d s

o n s e t l h g t

e r

e d

s s s e f

y For

per

sona

l use

onl

y


3 Signific

(j) NNprdia thseantamhelo Inam

(k) Em(i) D

A coambecois

(ii) O

Themdddain

(iii) Te

TerereGn

(iv) Sh

Shrecaam


ant account

on‐current ason‐current asrimarily throuistribution. Imdisposal grouhe assets, or dell. Any impand liabilities oax assets, emmeasured in aceld for sale ooss. Gains are

ntangible assemortised or d

mployee beneDefined contri defined conontributions mounts. Obenefit expensontributions as available.

Other long‐terhe Group’s nemployees haiscounted to iscount rate iates approximn which the be

ermination beermination beealistic possibetirement datroup has madumber of acce

hort‐term benhort term emelated serviceash bonus or mount as a re


ing policies (

ssets held forssets, or dispough sale or dismmediately bup, are remeadisposal groupairment loss oon a pro rata mployee beneccordance witr distribution e not recognis

ets and propeepreciated.

efits bution plans ntribution plainto a separaligations for se in profit or are recognised

m employee et obligation ive earned indetermine its the yield atmating the terenefits are exp

enefits enefits are rebility of withdte. Terminatiode an offer oeptances can

nefits mployee benefe is provided. profit‐sharing

esult of past se

olled Entities

(continued)

sale osal groups costribution ratefore classificsured in accop, are measuron a disposal basis, except

efit assets, invth the Group’sand subsequed in excess o

rty, plant and

an is a postate entity ancontributionsloss in the ped as an asset t

benefits in respect of n return for ts present va the reportingrms of the Grpected to be p

ecognised as arawal, to a foon benefits ff voluntary rebe estimated

fit obligations A liability is rg plans if theervice provide

omprising assher than throcation as held ordance with tred at the lowgroup first is t that no loss vestment pros accounting uent gains or lof any cumula

d equipment o

t‐employmentnd will have s to defined eriods during to the extent

long‐term emtheir servicealue, and theg date on Cooup’s obligatipaid.

an expense wormal detailefor voluntary edundancy, it reliably.

are measurerecognised foe Group has aed by the emp

ets and liabiliough continuifor sale or disthe Group’s acer of their carallocated to is allocated toperty and bpolicies. Implosses on remtive impairme

once classified

t benefit plano legal or contribution which servicethat a cash re

mployee benefe in the curre fair value ommonwealth ions and that

when the Groud plan to termredundancieis probable t

d on an undisor the amounta present legaployee and the

ities, that are ng use, are clstribution, theccounting polrrying amountgoodwill, ando inventoriesiological asseairment losse

measurement ent loss.

d as held for s

an under whconstructive plans are rees are rendereefund or a red

fits is the amoent and prioof any relatedGovernment are denomin

up is committminate emplos are recognthat the offer

scounted basit expected to al or construce obligation ca

expected to lassified as hee assets, or colicies. Thereat and fair valud then to rems, financial assets, which coes on initial claare recognise

sale or distrib

hich an entitobligation to

ecognised as ed by employduction in futu

ount of futureor periods thd assets is dt bonds that hnated in the sa

ted demonstroyment beforised as an exr will be accep

is and are expo be paid undctive obligatioan be estimat

66

be recoveredeld for sale oromponents offter generallyue less cost tomaining assetssets, deferredontinue to beassification ased in profit or

bution are not

ty pays fixedo pay furtheran employeeyees. Prepaidure payments

e benefit thathat benefit iseducted. Thehave maturityame currency

rably, withoutre the normalxpense if thepted, and the

pensed as theer short‐termon to pay thisted reliably.

d r f y o s d e s r

t

d r e d s

t s e y y

t l e e

e m s

For

per

sona

l use

onl

y


3 Signific

(k) Em(v) Sh

(a

(b

(c

(d

(e


ant account

mployee benehare based paa) A mana

acquire free loanrecourseover ordan empemployemeasurewhich threflect tachievin

b) The shardate faicorrespouncondioption‐pgrantedoptions prices no

c) A long teof the Ceach LTImet. Th(“TSR”). and inclSmall Inpropertyshares gexpense

If the tebeen movalue ofmeasure

d) During temployethe empas a shayear aftshares aESOP em

e) Dividendallocatedrecipien


ing policies (

efits (continuayment transagement inceshares of then in which to e to the valuedinary shares.loyee expensees become ued using a Blahe in‐substanche actual numng the thresho

re option progr value of oponding incretionally entitlpricing model. The amountthat vest excot achieving t

erm incentiveompany uponIP participanthe performanc The peer grudes 12 Comdustrials (excy trust/compagranted undered evenly over

rms of the LTodified. An adf the share bed at the date

the year, an ees to acquireployee, recognre based paymer the end oare fair valuemployees are e

ds received wd against the ts are entitled

olled Entities

(continued)

ed) actions ntive share pe Company. Eacquire the se of the shar The grant dae with a corrunconditionalack Scholes pce options wember of sharesold for vesting

gramme allowptions grantease in equiled to the opt, taking into t recognised ept where forhe threshold

e plan (“LTIP”)n satisfying pevest to the ece condition ioup that the panies that acluding banks,anies and othr the LTIP havr the period fr

IP are modifiedditional expebased paymene of modificati

employee she shares in thenised as treasument. Under f calendar yed and are exentitled to div

while satisfyingemployee oud to any divide

plan (“MISP”Employees hahares. The loares. The arranate fair value responding inly entitled toricing model,ere granted. s that vest exg.

ws certain emed to employty, over thetions. The faaccount the as an expensrfeiture is onlfor vesting.

) allows certaerformance coemployee aftes a performanCompany’s TSare considered, insurance coer stapled secve been measrom grant dat

ed, as a minimense is recognnt arrangemeion.

hare ownershe Company viury shares, ththe ESOP, th

ear in which txpensed evenvidends on the

g the performutstanding loaends that are

) allows certve been granan has not bengement is acof the sharesncrease in eqo the shares. taking into aThe amount rcept where fo

ployees to acyees is recogne period duir value of theterms and cose is adjustedly due to mar

in managemeonditions. Uner 3 years if tnce hurdle baSR is measured direct peersompanies, procurities). Thesured using Mte to vesting d

mum an expennised for any ment, or is oth

hip plan (“ESa salary sacrifhe Company pe matching shthe matchingly over the pe matching sh

mance conditian. Commendeclared duri

tain consolidated a limited en recognisedccounted for s granted to euity, over the The fair valuaccount the terecognised asorfeiture is on

quire shares onised as an euring which e options graonditions upo to reflect thket condition

ent personnel nder the LTIP he prescribedsed on relatived against cons to Emeco, inoperty trust ce fair value of Monte Carlo sdate.

nse is recognismodification therwise benef

OP”) was estfice. For everrovides one mhare will vest shares are aeriod from ghare when the

ons of share cing 13 Auguing the vestin

ated entity e recourse 10 d as the Compas an in‐subsemployees is e period duriue of the MIerms and cons an expense nly due to sha

of the Compaemployee expthe employnted is measuon which the he actual numns not being m

to receive shrights or shard performancve total sharensists of 97 ‐ 9n addition to companies anthe performa

simulation ana

sed as if the tthat increasesficial to the e

tablished to ry five shares matching sharto the emploacquired. Thgrant date to e dividends ar

issues under st 2010, all LTg period.

67

employees toyear interestpany only hasstance optionrecognised asng which theSP granted isnditions uponis adjusted tores prices not

any. The grantpense with ayees becomeured using anoptions werember of sharemet, i.e. share

hares or rightsres granted toe condition isholder return98 Companiesthe S&P/ASXd investmentance rights oralysis and are

terms had nots the total fairemployee, as

allow certainpurchased byre, recognisedyee after oneese matchingvesting date.re declared.

the MISP areTIP and ESOP

o t s n s e s n o t

t a e n e e e

s o s n s X t r e

t r s

n y d e g .

e P F

or p

erso

nal u

se o

nly


3 Signific

(l) PA oreatto

(i) RA reop

(m) R(i) R

Rmthm

(ii) GRcoRagreesre

(iii) M

Rth

(n) Le

Pa

te

ov

M

th

te

(o) FiFivainreq

Fithlop Fode


ant account

rovisions provision is bligation thatequired to sett a pre‐tax rato the liability. Restructuring

provision foestructuring pperating costs

evenue ental revenueevenue from

machines operhe machine omeasured at th

Goods sold evenue from onsideration revenue is regreement, thecovery of thstimated reliaevenue can be

Maintenance sevenue from he transaction

ease payment

ayments mad

erm of the lea

ver the term o

Minimum lease

he reduction o

erm so as to p

inance incominance incomalue through ncome is recoecognised on uoted securit

inance costs chrough profit osses recognisrofit or loss.

oreign currenepending on w


ing policies (

recognised ift can be estimttle the obligate that reflect

or restructurplan, and the s are not prov

e the rental ofrate each monoperate undehe fair value o

the sale of greceived or reecognised what the significhe consideratably, there is e measured re

services services rendn at the report

ts

de under ope

ase. Lease inc

of the lease.

e payments m

of the outstan

produce a con

e and financeme comprises profit or loss, gnised as it athe date thaies is the ex‐d

comprise inteor loss, lossesed on financ

cy gains and whether forei

olled Entities

(continued)

f, as a result mated reliablyation. Provisiots current mar

ring is recogrestructuringvided for.

f machines is nth. Contractr these hoursof consideratio

goods in the ceceivable, nethen persuasivcant risks andtion is probano continuineliably.

dered is recogting date.

rating leases

centives receiv

made under f

nding liability

stant periodic

e costs interest incoand gains on ccrues in proat the Group’dividend date.

erest expensees on hedging ial assets (oth

losses are repgn currency m

of a past evy, and it is proons are determrket assessme

nised when g either has co

recognised ints generally has during eachon received o

course of ordt of returns ave evidence d rewards of ble, the assong manageme

gnised in prof

are recognis

ved are recog

finance leases

. The finance

c rate of inter

me, dividend hedging instrfit or loss usin’s right to re

e on borrowin instruments her than trad

ported on a nmovements ar

vent, the Groobable that amined by discents of the tim

the Group ommenced o

n profit and lave a minimuh month. Cusr receivable.

dinary activitind allowanceexists, usualownership h

ociated costs ent involveme

it or loss in p

ed in profit o

gnised as an i

s are apportio

expense is al

est on the rem

d income, fairruments that ng the effectieceive payme

ngs, fair valuethat are recoe receivables

net basis in eitre in a net gai

up has a prean outflow of counting the eme value of m

has approvedr has been an

oss based onm hour clausetomers are b

es is measurees, trade discoly in the forave been traand possible

ent with the g

roportion to t

or loss on a s

ntegral part o

oned between

located to ea

maining balan

r value gains are recogniseve interest mnt is establish

e losses on finognised in pro). All borrowi

ther finance in or net loss p

esent legal oreconomic beexpected futumoney and the

d a detailednnounced pub

n the numbere which is trigbilled monthly

ed at the fairounts and volrm of an exnsferred to te return of ggoods, and th

the stage of c

straight‐line b

of the total le

n the finance

ach period du

nce of the liab

on financial ed in profit or method. Dividehed, which in

nancial assetsofit or loss anding costs are

ncome or finaposition.

68

r constructiveenefits will beure cash flowse risks specific

d and formalblicly. Future

of hours theggered shouldy. Revenue is

r value of theume rebates.xecuted saleshe customer,goods can behe amount of

completion of

basis over the

ease expense,

expense and

ring the lease

ility.

assets at fairloss. Interestend income isn the case of

s at fair valued impairmentrecognised in

ance expense

e e s c

l e

e d s

e . s , e f

f

e

,

d

e

r t s f

e t n

e

For

per

sona

l use

onl

y


3 Signific

(p) InInloin

Craof

D

lia

re

D

w

da

D

lia

en

o A toutlo

Thefw

(q) D

Abdfococo

(r) Ea

T

is

w

D

a

ef

o


ant account

ncome tax ncome tax exposs except to ncome.

urrent tax is tates enacted of previous yea

eferred tax is

abilities for fin

ecognised for:

temporary

business c

temporary

will not rev

taxable tem

eferred tax is

when they rev

ate.

eferred tax a

abilities and a

ntity, or on d

r their tax ass

deferred taxo the extent tilised. Deferronger probabl

he Company affect from 16 within the tax‐

Discontinued oA discontinuedusiness or geiscontinued oor sale, if earliomprehensiveomparative ye

arnings per sh

he Group pres

s calculated b

weighted avera

Diluted earning

nd the weigh

ffects of all di

ptions granted


ing policies (

pense compristhe extent th

the expected or substantivears.

recognised in

nancial report

:

y differences

ombination a

y differences r

verse in the fo

mporary diffe

s measured a

verse, based o

assets and lia

assets, and th

ifferent tax e

sets and liabili

asset is recothat it is prored tax assets e that the rela

and its wholly December 20consolidated

operations d operation is ographical areperation occuer. When an e income is rear.

hare

sents basic an

by dividing th

age number o

gs per share is

hted average

lutive potenti

d to employee

olled Entities

(continued)

ses current anhat it relates

tax payable oely enacted at

n respect of te

ting purposes

on the initial

nd that affect

related to inv

oreseeable fu

erences arising

at the tax rate

on the laws th

abilities are o

ey relate to in

ntities, but th

ties will be re

gnised for unobable that fuare reviewedated tax bene

y‐owned Aust004 and are tgroup is Emec

a componentea of operatiours upon dispooperation is ce‐presented a

d diluted earn

e profit or lo

of ordinary sh

s determined

number of or

al ordinary sh

es.

nd deferred tato items reco

or receivable t the reportin

emporary diff

s and the amo

l recognition

ts neither acco

estments in s

ture

g on the initia

es that are ex

hat have bee

offset if there

ncome taxes l

hey intend to

ealised simulta

nused tax lossuture taxable d at each repoefit will be rea

ralian residentherefore taxeco Holdings Li

t of the Grouons that has osal or when tclassified as a das if the ope

nings per shar

oss attributab

hares outstan

by adjusting t

rdinary shares

hares, which c

ax. Current anognised direct

on the taxablng date, and a

ferences betw

ounts used fo

of assets or

ounting nor ta

subsidiaries to

l recognition

xpected to be

n enacted or

e is a legally

evied by the

settle current

aneously.

es, tax creditprofits will b

orting date analised.

nt entities haved as a singleimited.

p’s business tbeen disposehe operation discontinued oration had be

re data for its o

le to ordinary

nding during t

the profit or lo

s outstanding

comprise mana

nd deferred tatly in equity o

le income or lny adjustmen

ween the carry

r taxation pur

liabilities in a

axable profit o

o the extent th

of goodwill.

e applied to t

substantively

enforceable r

same tax auth

t tax liabilities

s and deductibe available ad are reduced

ve formed a tae entity from t

that representd of or held fmeets the critoperation, theeen discontin

ordinary share

y shareholder

the year adju

oss attributab

, adjusted for

agement perf

ax is recogniseor in other co

loss for the ynt to tax paya

ying amounts

rposes. Defer

a transaction

or loss

hat it is proba

the temporar

y enacted by

right to offse

hority on the

s and assets o

ible temporaragainst whichd to the exten

ax‐consolidatethat date. Th

ts a separate for sale. Classteria to be clase comparativeued from the

es. Basic earni

rs of the Com

usted for own

le to ordinary

r own shares

formance shar

69

ed in profit oromprehensive

ear, using taxble in respect

of assets and

rred tax is not

that is not a

able that they

ry differences

the reporting

et current tax

same taxable

on a net basis

ry differencesh they can bent that it is no

ed group withe head entity

major line ofsification as assified as helde statement ofe start of the

ings per share

mpany by the

n shares held.

y shareholders

held, for the

res, and share

r e

x t

d

t

a

y

s

g

x

e

s

s e o

h y

f a d f e

e

e

.

s

e

e

For

per

sona

l use

onl

y


3 Signific (s) Se

AetGa Ssc Se

(t) NAbstocTd

4 Determi

A numbfinancialdisclosuassumpt

(i) P Th

esbeamrep

(ii) In Th

esw

(iii) In

Thpp

(iv) TrThpva


ant account

egment reporAn operating searn revenueshe Group’s oGroup’s Boardassess its perfo

Segment resusegment as wecash, interest

Segment capitequipment, an

New standardsA number of nbeginning aftetatements. Nof the Group, onsolidated fiThe Group doetermined.

ination of fair

er of the Grol and non‐finre purposes tions made in

roperty, planthe fair value stimated amouyer and a wach acted knomarket approaeplacement chysical deteri

ntangible assehe fair value stimated net when the busin

nventory he fair value orice in the ordrofit margin b

rade and othehe fair value resent value oalue is determ


ing policies (

rting segment is a s and incur exther compond of Directorsormance, and

ults that are ell as those thbearing liabili

tal expenditund intangible a

s and interpreew standardser 1 July 20None of these except for AAinancial stateoes not plan

r values

oup’s accountnancial assetsbased on tdetermining

t and equipmof property, ount for whicwilling seller inowledgeably. ach and cost cost when aporation as we

ets of contract future cash fness combinat

of inventory adinary coursebased on the e

er receivablesof trade and of future cashmined for discl

olled Entities

(continued)

component openses, includents. All opes to make ded for which dis

reported to hat can be alloties and finan

ure is the totassets other t

etations not ys, amendment10, and havis expected toASB 9 Financiments and coto adopt th

ting policies a and liabilitiethe followingfair values is d

ment plant and eqh a property n an arm’s lenThe fair valueapproaches uppropriate. Dell as functiona

intangibles aflows that aretion was final

acquired in a be of business leffort required

s other receivah flows, discoulosure purpos

of the Group tding revenueserating segmeecisions abouscrete financia

the Board ofocated on a rnce expense.

al cost incurrthan goodwill.

yet adopted ts to standardve not been o have a signifial Instrumenould change thhis standard e

and disclosurees. Fair valueg methods. Wdisclosed in th

quipment recocould be excngth transacte of items of pusing quoted Depreciated real and econom

acquired in a e expected toised.

business comless the estimd to complete

ables, excludinunted at the mses or when ac

that engages s and expenseents’ operatint resources tal information

f Directors inreasonable ba

red during th.

ds and interpreapplied in pficant effect ots, which beche classificatioearly and the

es require thes have beenWhere appliche notes spec

ognised as a hanged on thtion after proplant, equipmmarket priceeplacement cmic obsolesce

business como arise as a re

bination is demated costs ofe and sell the

ng constructiomarket rate ofcquired in a b

in business aces that relate tg results are o be allocaten is available.

nclude items sis. Unallocat

he year to ac

etations are epreparing theon the consolicomes mandaon and measue extent of t

e determinatdetermined

cable, furtheific to that ass

result of a bue date of acqper marketingent, fixtures aes for similar cost estimatence.

mbination is esult of the c

etermined basf completion ainventories.

on work in prof interest at thusiness comb

ctivities from to transactionreviewed reged to the seg

directly attrited items com

cquire proper

effective for aese consolidadated financiatory for the urement of finthe impact h

tion of fair vafor measure

er informatioset or liability

usiness combquisition betwg wherein thand fittings is items when es reflect adj

based on thcontracts that

sed on its estiand sale, and

ogress, is estihe reporting dbination.

70

which it mayns with any ofgularly by thegment and to

ibutable to amprise mainly

rty, plant and

nnual periodsated financialal statementsGroup’s 2014nancial assets.has not been

alue, for bothement and/orn about they.

ination is theween a willinge parties hadbased on theavailable andustments for

e discountedt are in place

mated sellinga reasonable

imated as thedate. This fair

y f e o

a y

d

s l s 4 . n

h r e

e g d e d r

d e

g e

e r

For

per

sona

l use

onl

y


4 Determ

(v) DThthco

Thvaanda

(vi) N

Fa

p

fi

(vii) Sh

Th

sh

ex

m

m

va


mination of fa

Derivatives he fair value he rate the contract using

he fair value aluations are nd maturity oate.

Non‐derivative

air value, whi

rincipal and i

nance leases t

hare‐based pa

he fair value o

hares are me

xercise price

market perfor

market perform

alue. The emp


air values (co

of forward excontractual foa risk free rat

of interest rtested for re

of each contra

e financial liab

ch is determi

interest cash

the market ra

ayment trans

of employee s

easured using

of the instru

mance condi

mance conditi

ployee share o

olled Entities

ontinued)

xchange controrward price te.

rate swaps iseasonablenessct and using m

bilities

ned for disclo

flows, discou

ate of interest

sactions

share options

an option p

ment, expect

tions, expect

ions attached

ownership pla

racts is basedand the curr

s based on ths by discountmarket intere

osure purpose

unted at the

t is determine

, managemen

ricing model.

ted volatility,

ted dividends

d to the transa

an shares are

d on the discorent forward

hird party vaing estimatedest rates for a

es, is calculate

market rate

d by referenc

nt incentive pl

Measureme

weighted ave

s, and the ris

actions are no

measured at c

ounted value price for the

luations provd future cash similar instru

ed based on t

of interest a

e to similar le

lan shares, an

nt inputs incl

erage expecte

sk‐free intere

ot taken into a

cost.

of the differee residual ma

vided by finaflows based

ument at the m

the present va

at the report

ease agreeme

nd long term i

lude share pr

ed life of the

est rate. Serv

account in det

71

ence betweenaturity of the

nciers. Thoseon the termsmeasurement

alue of future

ing date. For

nts.

ncentive plan

rice on issue,

instruments,

vice and non‐

termining fair

n e

e s t

e

r

n

,

,

‐

r

For

per

sona

l use

onl

y


5 Financia

OverviewThe Gro cred liqu mar This notpolicies quantita Risk manThe Boamanageresponsiregularly The Groapproprsystems through control e The ComproceduThe Commanagemthe Com Credit riCredit rimeet its ExposurThe carrmaximu

Trade re

Other re

Cash an


al risk mana

w up has exposudit risk idity risk rket risk

te presents inand process

ative disclosur

nagement fraard of Directment framewible for devey to the Board

up’s risk maniate risk limitare reviewedits training,

environment

mmittee oversres and reviewmmittee is asment controls

mmittee.

isk sk is the risk contractual o

re to credit risrying amountm exposure to

eceivables

eceivables

nd cash equiv


agement

ure to the foll

nformation abes for measures are include

amework tors has ovework. The Boeloping and md of Directors

agement polis and controld regularly tomanagemenin which all em

sees how manws the adequassisted in its s and procedu

of financial loobligations, an

sk t of the Grouo credit risk a

alents

olled Entities

owing risks fr

bout the Grouuring and maed throughou

rall responsibard has estamonitoring thon its activitie

cies are estabs, and to mono reflect chant standards amployees und

nagement moacy of the risk oversight rores at the dire

oss to the Grond arises princ

up’s financial t the reportin

rom their use

up’s exposureanaging risk, t these conso

bility for theblished the Ahe Group’s ries.

blished to idenitor risks andnges in markeand proceduderstand their

onitors complimanagement

ole by internaection of the C

oup if a customcipally from th

assets repreng date was:

of financial in

e to each of tand the Gro

olidated financ

e establishmeAudit and Risisk managem

ntify and anad adherence tet conditions res, aim to dr roles and ob

ance with the framework inal audit. InteCommittee. Th

mer or countehe Group’s re

esents the ma

Note

17

17

16

nstruments:

he above riskoup’s managecial statement

ent and overssk Committeement policies.

lyse the risks to limits. Risk and the Groudevelop a disligations.

e Group’s riskn relation to thernal audit uhe results of t

erparty to a ficeivables from

aximum credi

2011

$'000

87,963

7,453

5,502

100,918

Conso

Carrying

ks, the Groupement of cats.

rsight of the e (“Committe The Comm

faced by the k managemenup’s activitiessciplined and

k managemenhe risks faced undertakes rethe reviews ar

inancial instrum customers.

it exposure.

2010

$'000

91,72

5,25

5,23

102,21

olidated

g amount

72

p’s objectives,pital. Further

Group’s riskee”), which ismittee reports

Group, to sett policies ands. The Group, constructive

t policies andby the Group.eviews of riskre reported to

ument fails to

The Group’s

23

56

39

18

, r

k s s

t d , e

d . k o

o

s

For

per

sona

l use

onl

y


5 Financia Trade anThe GroHoweveof the inThe GroIndones Both insnew custerms anbank refby the ameet thecustome Where ceither bdetermimillion). The Grotrade anindividudebts th2011 the$9.8 milrental, r As at 30million) recognisdebts reto pay tamountsextensiv The Groits maxiinstitutio


al risk mana

nd other receoup’s exposurr, managemendustry and coup sets indivia and Canada

ured and uninstomer to be and conditions ferences. Purcappropriate me Group’s creder will only be

commercially blue chip cusned as those

oup establishend other receially significanhat have beene Group had illion (pre‐tax)epairs and ma

0 June 2011 in Australia sed in discontecognised durtheir outstans that are pasve analyses of

up held cash mum credit eon counterpa


agement (con

eivables re to credit rent also considcountry in whvidual countea, and genera

nsured debtoranalysed indivare offered. T

chase limits aranagement ledit worthinesson a prepaym

available the stomers, subse customers w

es an allowanvables. The mnt exposures. classified as dimpairment fo) relating to oaintenance an

the Group reand Canada inued operatiing the year rding balancesst due by mothe underlyin

and cash equexposure on trties which ar

olled Entities

ntinued)

risk is influenders the demohich customerer party limitslly operates o

rs are subject tvidually for crThe Group’s re established evel dependens, and the Groment basis, or a

Group aims tsidiaries of bwho have a

ce for impairmmain componeThe specific doubtful and or doubtful deone customend demobilisa

ecognised badof $1.1 millioions in USA anelate to a smas due to ecoore than 30 dang customers’

uivalents of $5these assets. re rated greate

nced mainly ographics of trs operate, ass and where on a “cash for

to the Group’reditworthinesreview includefor each custont on the sizeup is unable tappropriate se

to insure the lue chip commarket capit

ment that repents of this allloss componuninsured cuebts of $12.2r in the Indotion charges n

d debt write‐on and $0.4 nd Australia oall number ofonomic circumays are still c credit ratings

5.5 million at The cash ander than AA‐.

by the indivithe Group’s cs these factorpossible insukeys” policy w

s credit policyss before the es external ratomer accordine of the limit.o secure credecurity such as

majority of rempanies or Galisation of g

presents its elowance are aent is made stomers that million. Inclunesian businenot recovered

‐offs for a totmillion respeof $0.1 millionf customers inmstances. Thollectible, bass.

30 June 2011d cash equiva

dual characteustomer bases may have aures its rentawithin its Sales

y. The Group’sGroup’s standtings, when avng to the exte In the instanit insurance, fs a bank guara

ental customeovernment. greater than

stimate of inca specific loss up of the insare classified uded in this imess. This impd.

tal amount octively. Bad n and $0.1 miln Australia ande Group belised on histor

1 (2010: $5.2 alents are hel

eristics of eae, including than influence ol income wits business.

s credit policy dard paymentvailable, and iernal rating annce that a cusfuture transacantee or letter

ers that are noBlue chip cu$750 million

curred losses component tsurance excesas doubtful.

mpairment is apairment incl

of $1.7 milliondebts of $0.llion respectivd Canada thatieves that theric payment b

million), whicld with bank

73

ch customer.he default riskon credit risk.hin Australia,

requires eacht and deliveryin some casesnd is approvedtomer fails totions with ther of credit.

ot consideredustomers are(2010: $750

in respect ofhat relates toss for insuredAs at 30 Junean amount ofudes dry‐hire

n (2010: $5.8.2 million arevely. The badt were unablee unimpairedbehaviour and

ch representsand financial

. k . ,

h y s d o e

d e 0

f o d e f e

8 e d e d d

s l

For

per

sona

l use

onl

y


5 Financia

The Growas:

Austral

Asia

North A

Europe

Africa

The Gro

Insured

Blue Ch

Other s

Uninsu

The agin

Not pas

Past du

Past du

Past du


al risk mana

oup’s maximu

ia

America

up’s maximum

d

hip (including

ecurity

red

ng of the Grou

st due

ue 0‐30 days

ue 31‐60 days

ue 61 days


agement (con

m exposure t

m exposure to

subsidiaries)

up’s trade rece

s

olled Entities

ntinued)

to credit risk

o credit risk fo

)

eivables at the

Gros

2011

$'000

42

21

6

17

87

C

for trade rec

or trade receiv

e reporting da

ss Impa

1 20

0 $'0

,385

,196

6,707

,675 (

,963 (

Consolidated

ceivables at th

vables at the r

ate was:

irment

011

000

(444)

(46)

(565)

11,110)

12,165)

he reporting d

2011

$'000

57,609

22,049

8,305

‐

‐

87,963

Conso

Carrying

reporting date

2011

$'000

41,137

17,176

2,810

26,840

87,963

Carrying

Conso

Gross

2010

$'000

44,879

24,405

3,853

18,586

91,723

Conso

date by geog

2010

$'000

55,40

19,25

13,41

3,25

40

91,72

olidated

g amount

e by type of c

2010

$'000

40,70

13,82

9,19

27,99

91,72

g amount

olidated

Impairmen

2010

$'000

(1,83

(4

(4,77

(6,65

olidated

74

raphic region

04

51

14

52

02

23

ustomer was:

00

27

97

99

23

nt

30)

(1)

47)

74)

52)

n

For

per

sona

l use

onl

y


5 Financia The mov

Balance

Bad deb

Doubtfu

Reversa

Balance

CollaterCollateraof bank GuarantFinanciarental aguarante


al risk mana

vement in the

e at 1 July

bt written off

ul debt recog

al of doubtful

e at 30 June

al al is held for cguarantees an

tees al guarantees agreement. Dees were outs


agement (con

e allowance fo

f

gnised

l debt

customers thand $0.1 millio

are generallyDetails of outstanding (2010

olled Entities

ntinued)

or impairment

at are assessen of prepaym

y only providetstanding gua0: $342,500).

t in respect of

ed to be a highments.

ed to wholly‐oarantees are

trade receiva

her risk. At 30

owned subsidprovided in

ables during th

2011

$'000

6,652

(1,664)

10,677

(3,500)

12,165

Conso

0 June 2011 t

diaries or whenote 29. At

he year was a

2010

$'000

8,81

) (5,78

4,34

) (72

6,65

olidated

he Group hel

en entering int 30 June 20

75

s follows:

16

87)

48

25)

52

d $2.7 million

nto a premise011 $342,500

n

e 0

For

per

sona

l use

onl

y


5 Financia LiquidityLiquidityfinancialmanaginwhen duto the G The Groprice itsreturn inoperatiopotentia The Grothree yewhich m$26.9 mmillion. The folloexcludin

Consoli

30 June

Non‐de

liabilitie

Secured

Finance

Trade a

Derivat

liabilitie

Interest

for hed

Forwar

contrac

Outflo

Inflow

(1) Excl

It is notsignifica


al risk mana

y risk y risk is the rl liabilities thng liquidity is ue, under botroup’s reputa

oup monitors s rental contrn its operatioonal expensesal impact of ex

up’s syndicateear $300.0 mmatures on 5 Nmillion (2010: $

owing are thng the impact

idated

e 2011

erivative finan

es

d bank loans

e lease liabilit

nd other pay

tive financial

es

t rate swaps

ging asset/(li

d exchange

cts used for h

ow

w

udes derivativ

t expected thntly different


agement (con

risk that the Ghat are settleto ensure, asth normal andation.

working capiacts. These ons. Typically s for a periodxtreme circum

ed senior debillion trancheNovember 20$33.4 million)

e contractualof netting agr

ncial

ties

yables (1)

used

iability)

edging:

ves (shown se

hat the cash famounts.

olled Entities

ntinued)

Group will ened by deliverfar as possibd stressed con

tal limits andprocesses assthe Group e

d of 60 days, mstances that

t facility (“debe which matu15. The senio) working cap

l maturities oreements.

Carrying

amount

$'000

(278,000)

(19,005)

(42,694)

(339,699)

(5,981)

285

(7)

(5,703)

eparately)

flows included

ncounter diffiring cash or ble, that it willnditions, with

d employs masist it in monensures that iincluding thecannot reaso

bt facility”) mres on 5 Novor debt facilitypital facility. A

of financial lia

Contract‐

ual cash

flows

$'000

(292,089)

(22,621)

(42,694)

(357,404)

(6,132)

(12,057)

11,780

(6,409)

d in the mat

culty in meetanother final always have hout incurring

aintenance plaitoring cash fit has sufficiee servicing of onably be pred

atures on 5 Nvember 2013y is a revolveAt year end th

abilities, inclu

6 mths or

less 6

$'000

(7,045)

(2,383)

(42,694)

(52,122)

(2,353)

(12,057)

11,780

(2,630)

urity analysis

ting the obligancial asset. Tsufficient liqu unacceptable

anning and lifflow requirement cash on dfinancial obli

dicted, such as

November 201and a five yer and also come debt faciliti

uding estimate

‐12 mths 1‐

$'000

(7,045) (

(2,181)

‐

(9,226) (

(1,191)

‐

‐

(1,191)

could occur

gations assocThe Group’s uidity to meee losses or ris

fe cycle costiments and opdemand to migations; this s natural disa

13. The facilitear $150.0 mmprises one yies had not u

ed interest p

‐2 years 2‐5

$'000 $

(14,090) (26

(4,362) (1

‐

(18,452) (27

(2,135)

‐

‐

(2,135)

significantly

76

iated with itsapproach to

et its liabilitiessking damage

ng models toptimising casheet expectedexcludes thesters.

y comprises aillion trancheyear revolvingtilised $198.9

payments and

Mor

5 years 5 y

$'000 $'

63,909)

13,695)

‐

77,604)

(453)

‐

‐

(453)

earlier, or at

s o s e

o h d e

a e g 9

d

re than

years

'000

‐

‐

‐

‐

‐

‐

‐

‐

t

For

per

sona

l use

onl

y


5 Financia

Consoli

30 June

Non‐de

liabilitie

Secured

Finance

Trade a

Derivat

liabilitie

Interest

for hed

Forwar

contrac

Outflo

Inflow

(1) Excl


al risk mana

idated

e 2010

erivative finan

es

d bank loans

e lease liabilit

nd other pay

tive financial

es

t rate swaps

ging asset/(li

d exchange

cts used for h

ow

w

ludes derivativ


agement (con

ncial

ties

yables (1)

used

iability)

edging:

ves (shown se

olled Entities

ntinued)

Carrying

amount

$'000

(300,009)

(5,463)

(36,684)

(342,156)

(13,187)

(1,033)

(18)

(14,238)

eparately)

Contract‐

ual cash

flows

$'000

(311,198)

(5,548)

(36,684)

(353,430)

(13,497)

(41,728)

42,780

(12,445)

6 mths or

less 6

$'000

(34,556)

(2,659)

(36,577)

(73,792)

(5,395)

(41,728)

42,780

(4,343)

‐12 mths 1‐

$'000

(5,536) (2

(2,628)

(107)

(8,271) (2

(2,441)

‐

‐

(2,441)

‐2 years 2‐5

$'000 $

271,106)

(261)

‐

271,367)

(3,521)

‐

‐

(3,521)

77

Mor

5 years 5 y

$'000 $'

‐

‐

‐

‐

(2,140)

‐

‐

(2,140)

re than

years

'000

‐

‐

‐

‐

‐

‐

‐

‐

For

per

sona

l use

onl

y


5 Financia Market Market prices wrisk manthe retu The Grotransactapply he CurrencyThe Grocurrencybut also which th The Groits functcurrency In respethe net financial Interest operatioderivativ The Groposition The Gromillion a(refer no ExposurThe Gro

Trade r

Trade p

Gross b

Forwar

Net exp

(1) Trad

Groasse


al risk mana

risk risk is the ris

will affect the Gnagement is torn.

oup enters inttions are carriedge accounti

y risk up is exposedy other than tthe United Sthese transacti

up hedges alltional currency risk. Most o

ct of other mexposure is kl liabilities and

on borrowinons of the Groves being ente

oup’s investms are conside

oup’s foreign das the Group ote 24).

re to currencyup’s exposure

eceivables

payables (1)

balance sheet

d exchange c

posure

de payables dup hedges thet is received.


agement (con

sk that changeGroup’s incomo manage and

to derivativesed out withinng in order to

d to currency he respectivetates Dollars (ons primarily

l trade receivacy, and greatof the forward

monetary assetkept to an accd vice versa.

ngs is denomioup, primarilyered into and

ents in its sured long term

denominated considers the

y risk e to foreign cu

t exposure

ontracts

does not inclese purchase The fair valu

olled Entities

ntinued)

es in market me or the valud control mar

, and also inc the guidelineo manage vola

risk on revenue functional cu(“USD”), Canaare denomina

ables and trader than $50,0 exchange co

ts and liabiliticeptable level

inated in cury AUD, but alstherefore no

ubsidiaries anm in nature.

debt is not here to be app

urrency risk at

AU

$'00

ude future ps in accordanue of outstand

prices, such ue of its holdiket risk expos

curs financial es set by the Gatility in profit

ue, expendituurrencies of Gadian Dollars (ated are AUD

de payables t000. The Grontracts have m

ies held in cur by matching

rrencies that so USD, CAD aapplication o

nd their earni

hedged to mapropriate head

t balance date

D USD

00 $'000

‐

‐

‐

‐

‐

30 Ju

purchase comnce with its heding derivative

as foreign exngs of financisures within a

liabilities, in Group’s hedgt or loss.

ure, assets androup entities,(“CAD”), and ED, USD, CAD, E

that are denooup uses forwmaturities of l

rrencies other foreign deno

match the caand EURO. Thof hedge accou

ngs for the y

anage the riskdroom for any

e was as follow

YEN

0 $'000

‐ ‐

‐ ‐

‐ ‐

‐ ‐

‐ ‐

une 2011

mmitments deedging policy. es are recogni

change rates,al instrumentacceptable par

order to maning policy. Ge

d borrowings primarily theEuro Dollars (“URO and Japa

minated in a ward exchangless than 6 mo

r than the AUominated fina

ash flows genis provides anunting.

year are not

k of breachingy adverse mo

ws, based on n

EUR

$'000

‐

‐

‐

‐

‐

enominated inThe payable ised in the bal

, interest ratets. The objectrameters, wh

nage market renerally the G

that are denoe Australian do“EURO”). Theanese Yen (“Y

currency thatge contracts tonths.

UD, the Groupncial assets w

nerated by thn economic h

hedged as th

g its facility limovement in ex

notional amo

AUD

$'000

‐

‐

‐

‐

‐

30

n foreign curis not recognlance sheet at

78

es and equitytive of marketile optimising

risks. All suchroup seeks to

ominated in aollar (“AUD”),e currencies inEN”).

t is foreign toto hedge this

p ensures thatwith matching

he underlyingedge without

hese currency

mit of $450.0xchange rates

unts:

USD

$'000

517

‐

517

(517)

‐

0 June 2010

rencies. Thenised until thet period end.

y t g

h o

a , n

o s

t g

g t

y

0 s

YEN

$'000

‐

(2,074)

(2,074)

2,074

‐

e e

For

per

sona

l use

onl

y


5 Financia

The follo

CAD

USD

EURO

IDR

SensitiviA strengwould hon foreithe repoThe ana

30 June

USD (10

EURO (1

YEN (10

CAD (10

30 June

USD (10

EURO (1

YEN (10

CAD (10


al risk mana

owing significa

ity analysis – gthening of thhave increasedgn currency eorting period.lysis is perform

e 2011

0 percent stre

10 percent st

0 percent stre

0 percent stre

e 2010

0 percent stre

10 percent st

0 percent stre

0 percent stre


agement (con

ant exchange

financial insthe Australiand/(decreased)exchange rate The analysis med on the sa

engthening)

trengthening

engthening)

engthening)

engthening)

trengthening

engthening)

engthening)

olled Entities

ntinued)

rates applied

ruments dollar, as ind

) equity and pe variances thassumes thaame basis for

)

)

during the ye

2011

0.9879

0.9872

0.7239

8,731

Average

dicated belowprofit or loss hat the Groupt all other va2010, as indic

Equity P

$'000

(557)

(45)

(136)

(294)

(2,410)

(149)

(132)

(439)

Consolid

ear:

2010

0.9303

0.8816

0.6350

8,325

rate

w, against theby the amounp considered triables, in pacated below:

Profit or loss

$'000

‐

‐

‐

‐

(104)

‐

‐

‐

dated

2011

1.0

1.0

0.7

9,

Reportin

e following cunts shown beto be reasonarticular intere

201

0367 0

0724 0

7401 0

,198

ng date spot

urrencies at 3elow. This anaably possible est rates, rem

79

10

0.8962

0.8538

0.6982

7,727

rate

30 June 2011alysis is basedat the end of

main constant.

1 d f .

For

per

sona

l use

onl

y


5 Financia Sensitivi A weakeoppositeconstant Interest In accorda minimaccount future. T Profile At the re

Cash at

Variabl

Variabl

Total in

Effectiv

Austral

Canadia

United

The inte

next 5 y

No late

Later th

Later th

Later th

Later th

(1) At 3

dueinclu


al risk mana

ity analysis –

ening of the e effect on thet.

rate risk dance with th

mum of 30% oassets with e

This is typically

eporting date

t bank

e interest bea

e interest bea

nterest bearin

ve interest ra

ian dollars

an dollars C$

States dollar

erest rate sw

years:

r than one ye

han one year

han two years

han three yea

han four year

30 June 2010 e to the forecuded above.


agement (con

financial inst

Australian doe above curre

he Board’s poof its exposureexposure to cy achieved by

the interest r

aring liabilitie

aring finance

ng liabilities

ate swaps to

80M (2010: C

rs USD$15M

aps principle

ear

but not later

s but not late

ars but not la

rs but not late

the Group hacast repayme

olled Entities

ntinued)

ruments (con

ollar against tencies to the a

licy the Groupe to changes hanges in intey entering into

rate profile of

es

leases

hedge intere

C$80M)

(2010: USD$

amount exp

r than two

er than three

ter than four

er than five

d a USD$10 mnts of USD d

ntinued)

the above cuamounts show

p is required tin interest raerest rates foo interest rate

f the Group’s i

est rate risk

15M) (1)

iring over the

r

million and USdenominated

urrencies at 3wn above, on

to maintain a ates on borroor an average e swaps.

interest‐beari

Note

16

24

e

SD$15 milliondebt to belo

0 June wouldthe basis that

range betweewings on a fitenure of no

ng financial in

2011

$'000

5,502

278,000

19,005

297,005

70,000

77,168

13,987

161,155

83,987

38,584

38,584

‐

‐

161,155

Conso

swap which wow the level o

d have had tt all other var

en a maximumixed rate basio less than 2 y

nstruments w

2010

$'000

2 5,2

0 300,0

5 5,4

5 305,4

0 70,0

8 89,

7 17,5

5 176,8

7

4 87,5

4 44,6

‐ 44,6

‐

5 176,8

olidated

was considereof the swaps

80

the equal butriables remain

m of 70% andis, taking intoyears into the

as:

239

009

463

472

000

266

568

834

‐

568

633

633

‐

834

ed ineffectives and are not

t n

d o e

e t

For

per

sona

l use

onl

y


5 Financia The Groand the hedge aloss. Cash floA changprofit orcurrency

30 June

Cash flo

30 June

Cash flo

Fair valuInterest The rangyield cur

Derivat

Loans a

Leases

The Groidentifie


al risk mana

oup does not Group does ccounting mo

w sensitivity e of 100 basisr loss by the y rates, remai

e 2011

ow sensitivity

e 2010

ow sensitivity

ues rates used foge of interest rve at the rep

ives

and borrowin

up has not ideed.


agement (con

account for anot designatodel. Therefo

analysis for vs points in intamounts shon constant. Th

y (net)

y (net)

or determininrates used toorting date pl

gs

entified other

olled Entities

ntinued)

any fixed rate e derivatives ore a change

variable rate iterest rates atown below. Thhe analysis is

g fair value discount estius an adequa

r market price

financial asse(interest ratein interest ra

nstruments t the reportinhe analysis asperformed on

100b

increa

$'000

P

imated cash fate credit spre

0.2%

1.6%

0.3%

e risks that it c

ets and liabilie swaps) as hates at the re

g date wouldssumes that an the same ba

p 10

se dec

0 $'0

‐

431

Profit or loss

lows, when apead, and were

‐ 5

‐ 7

‐ 7

2011

considers it is

ties at fair vahedging instruporting date

have increasall other variasis for 2010.

0bp

rease

000

‐

(431)

pplicable, are as follows:

5.2%

7.2%

7.2%

materially ex

alue through uments undewould not af

sed/(decreaseables, in part

100pb

increase

$'000

2,746

2,766

Eq

based on the

1.0%

2.0%

0.0%

2

posed to, oth

81

profit or loss,r a fair valueffect profit or

d) equity andicular foreign

100pb

decrease

$'000

(2,74

(2,76

quity

e Government

‐ 6.0%

‐ 7.0%

‐ 1.0%

010

er than those

, e r

d n

e

46)

66)

t

e

For

per

sona

l use

onl

y


5 Financia Fair valuThe fair are as fo

Assets c

Forward

Assets c

Receiva

Cash an

Liabilitie

Interest

Forward

Liabilitie

Secured

Finance

Trade a

(1) Excl

The basi

Fair valuAll the hierarchassets/(l The Groforward


al risk mana

ues versus carvalues of finaollows:

carried at fair

d exchange co

carried at am

ables

nd cash equiv

es carried at

t rate swaps u

d exchange co

es carried at

d bank loans

e lease liabiliti

nd other pay

udes derivativ

is for determi

ue hierarchy Group’s finanhy as their vliabilities), eit

up’s only finaforeign excha


agement (con

rrying amounancial assets a

r value

ontracts used

mortised cost

alents

fair value

used for hedg

ontracts used

amortised co

ies

ables (1)

ves (shown se

ning fair value

ncial instrumevalue is baseher directly o

ancial instrumange contract

olled Entities

ntinued)

ts and liabilities,

d for hedging

ging

d for hedging

ost

eparately)

es is disclosed

ents carried d on inputs r indirectly.

ents carried ats used for hed

, together wit

Ca

Am

Note $

17

16

23 (2

23 (

22 (

(3

d in note 4.

at fair value other than

at fair value, dging, as set o

th the carryin

arrying F

mount Va

$'000 $'

285

285

83,251 8

5,502

88,753 8

(5,981) (

(7)

(5,988) (

78,000) (27

19,005) (2

42,694) (4

39,699) (34

30 June 201

would be cathe quoted

by valuation mout in the tab

g amounts sh

Fair Ca

alue Am

000 $

285

285

3,251

5,502

8,753

5,981) (

(7)

5,988) (

4,798) (3

2,627)

2,694) (

0,119) (3

11

ategorised atprices that

method are thle above.

hown in the b

arrying F

mount V

$'000 $

1,033

1,033

90,327 9

5,239

95,566 9

(13,187) (1

(18)

(13,205) (1

300,009) (29

(5,463) (

(36,499) (3

341,971) (34

30 June 20

t level 2 in tare observab

he interest ra

82

balance sheet,

Fair

Value

'000

1,033

1,033

90,327

5,239

95,566

13,187)

(18)

13,205)

98,632)

(5,548)

36,499)

40,679)

10

he fair valueble for these

ate swaps and

,

e e

d

For

per

sona

l use

onl

y


5 Financia Capital mUnderpicontinuaThe Boamarket optimisiprofile oinstitutioshareho The Boasecurity determilevel of remaine The Cominterest bearing includesdiscontinincluded The Gro

EBIT (fo

Average

EBIT ret

In orderemployesecuritietrust is demploye There hmanage


al risk mana

management nning Emecoal evaluation oard’s policy isconfidence ang the mix oof employing ons. The Boalders in the fo

rd seeks to mafforded byned as total dless than 3.0

ed within the r

mpany’s primaand tax (“EBITliabilities, less significant itnued operatiod the Group E

up’s return on

or continuing

e invested ca

turn on capit

r to satisfy pee share trustes that have bdone on a peee share trust

have been noment during t


agement (con

’s strategic frof the Compas to maintainand to suppof debt and eqa mixture ofard of Directorm of dividen

maintain a balay a sound cadebt over the 0 times as defrange of 1.2 ti

ary return meT”) divided bys cash and catems of $4.6 ons and $6.0BIT return on

n invested cap

and disconti

pital

al at 30 June

potential futut, its own shabeen issued uriodic basis by. The Group d

o changes to the year othe

olled Entities

ntinued)

ramework is cany’s capital st diversified, lrt the futurequity to matcf 3 year and tors also evands or other c

ance betweenapital positionlast twelve mfined by the imes to 1.6 tim

etric is returny Invested Capash equivalenmillion (after

0 million debtcapital for the

pital at the en

nued operati

re obligationares on markender its emply Emeco’s shadoes not have

externally imr than referre

consistent vatructure to enlong‐term soue growth of tch the Compa5 year trancaluates and capital initiativ

n higher return. Throughoonths dividedCompany’s bmes.

n on capital (“pital defined ats. The Groupr tax) (2010: tor impairmee year would

nd of the repo

ions)

s under its eet. The quanoyee share pare registry sea defined sha

mposed capited to above.

lue creation fnsure it is opturces of fundthe business.any’s requiremches with a smonitors theves.

rns possible wut the year d by normalisebanking coven

“ROC”), whichas the averagep’s ROC for th$95.0 millionnt in Indoneshave been 11

rting period w

2011

$'000

92,3

896,8

10

Co

employee shantum of theselans. The purervice provideare buy‐back p

tal restriction

for shareholdimised to delding to maintThis policy iments and thyndicate of ine level of ca

with higher levthe Group med EBITDA. Thnant. During t

h the Group de over the perhe year was 1n) as a result sia. Had the s1.3% (2010: 8.

was as follows

201

$'00

348 (1

856 1,00

0.3%

onsolidated

are plans the e purchases drchase of sharer acting as agplan.

ns or the Bo

ders. Central iver value to tain investor, is being achiehrough a blennvestment grapital returns

vels of borrowmonitors its he gearing ratthe year the

defines as eariod of equity10.3% (2010: t of $0.4 millsignificant ite.3%).

s:

10

00

1,432)

05,399

(1.1%)

e Group purcdepends on thres by the emgent for the t

ard’s approa

83

to this is theshareholders.creditor andeved throughnded maturityrade financials to ordinary

wings and thegearing ratiotio is kept at agearing ratio

rnings before, plus interest(1.1%)). Thision loss fromems not been

hases, via anhe number ofmployee sharetrustee of the

ch to capital

e . d h y l y

e o a o

e t s m n

n f e e

l

For

per

sona

l use

onl

y


6 Othe

Net p

Sund

(1) Inc

or

(2) Inconim(redapr


r income

profit on sale

dry income (2)

cluded in net rdinary course

cluded in sunn machines smpaired $3.3 mefer note 21).amaged equiproceeds recov


e of non curre

profit on thee of business.

ndry income aourced for 3million of equ The Companpment (refer nerable in relat

olled Entities

ent assets (1)

e sale of non c

are fees charg3rd parties anuipment whicy also recognnote 25). Incltion to this in

current assets

ged on overdud insurance ch was damagised a provisioluded in sundcident.

201

$'00

s is the sale o

ue accounts, breceivables. ged while beion of $1.4 midry income is

11 2

00 $

2,756

4,455

7,211

Consolidated

of rental equip

bad debts recDuring FY11

ing demobilisllion relating t$4.2 million r

2010

$'000

2,913

2,112

5,025

d

pment which

covered, proc1 the Indonessed from a cuto the cost of representing t

84

occurs in the

urement feessian businessustomer’s sitesalvaging thethe insurance

e

s s e e e

For

per

sona

l use

onl

y

Emeco HoldiNotes to theFor the year 7 Profit

Profi

has b

(cred

Cost

Cost

Impa

‐ inve

‐ pro

Empl

‐ sup

Othe

‐ bad

‐ dou

‐ insu

‐ mot

‐ rent

‐ safe

‐ trav

‐ tele

‐ wor

‐ oth

Depr

‐ buil

‐ plan

‐ plan

‐ furn

‐ offic

‐ mot

‐ leas

‐ sun

Amo

‐ con

‐ oth

Impa

Total

impa


t before incom

t before inco

been arrived a

diting) the fol

of sale of ma

of sales inve

airment of tan

entory

perty, plant a

loyee expens

erannuation

er expenses:

d debts

ubtful debts/(

urance

tor vehicles

tal expense

ety

vel and subsis

ecommunicat

rkshop consu

er expenses

eciation of:

ldings

nt and equipm

nt and equipm

niture fittings

ce equipmen

tor vehicles

sehold impro

dry plant

rtisation of:

tract intangib

er intangible

airment of go

l depreciation

airment of go


me tax expens

me tax expen

at after charg

lowing items

achines and p

ntory on rent

ngible assets

and equipme

es:

(reversal)

stence expen

tions

umables, tool

ment ‐ owned

ment ‐ leased

s and fixtures

t

vements

ble

s

odwill

n, amortisatio

odwill

olled Entities

se for continu

nse

ging/

:

parts

t

:

nt

se

ing and labou

d

d

on and

uing operation

ur

ns

Note

20

2011

$'000

69,

1,

2,

3,

3,

1,

9,

3,

4,

3,

1,

2,

1,

3,

11,

42,

1,

112,

4,

1,

1,

121,

122,

Co

1 20

0 $'0

,432 7

,579

841

,931

,772 1

,036

,506

,762

,074

,616

,209

,199

,367

,726

,639

,100

,198 2

,172

,676 9

,311

119

379

,087

449

,722

,915 9

‐

258

258

‐ 2

,173 11

onsolidated

85

10

000

72,010

4,560

4,525

9,268

13,793

2,766

2,607

(1,423)

3,137

4,289

3,685

1,235

2,420

1,668

3,342

2,844

23,804

839

93,050

1,014

141

463

845

446

1,977

98,775

24

271

295

20,105

19,175

For

per

sona

l use

onl

y


7 Profit

Finan

‐ inte

‐ inef

‐ amo

‐ oth

Finan

‐ inte

Net f

Net f

(1) In

8 Audit

Audit

Aud K ‐ O ‐

Othe

Aud

K

‐

‐

O

‐

‐


t before inco

ncial expenses

erest expense

ffective hedge

ortisation of d

er facility cos

ncial income:

erest revenue

financial expe

foreign exchan

ncludes $0.8 m

tor’s remune

t services

ditors of the KPMG Australaudit and rev

Overseas KPMaudit and rev

er services

ditors of the

KPMG Austral

other assura

taxation serv

Overseas KPM

taxation serv

accounting a


ome tax exp

s:

e expense/(re

debt establish

ts

nses

nge (gain)/los

million expens

eration

Companylia:view of financMG Firms:view of financ

Company

lia:

nce services

vices

MG Firms:

vices

ssistance

olled Entities

ense for con

versal)

hment costs (

ss

sed relating to

cial reports

cial reports

ntinuing ope

(1)

o the previous

erations (con

s debt facility

ntinued)

2011

$'000

19,10

(39

2,06

2,46

23,24

(28

22,95

18

Con

in FY11.

2011

$

426,

185,

611,

86,

78,

39,

203,

815,

Co

2010

$'000

05 18

92) 1

66 1

61 1

40 22

81)

59 22

86

nsolidated

1 20

$

,000 40

,682 26

,682 66

‐ 1

,060 6

,162 6

,587 2

,809 16

,491 82

onsolidated

86

0

0

,099

,604

,233

,946

,882

(157)

,725

(818)

010

$

04,308

60,930

65,238

13,934

65,410

60,957

20,813

61,114

26,352

For

per

sona

l use

onl

y


9 Income

(a) Rec

Cur

Cur

Adj

Def

Ori

Red

Adj

Inc

Inc

Inc

Inc

dis

Tot

(b) Curr

Sha

Cap

Inco

For

for

FCT

Cas

(1)


e tax expense

ognition in th

rrent tax expe

rrent year

justments fo

ferred tax exp

gination and

duction in tax

justment for

ome tax expe

ome tax expe

ome tax expe

ome tax expe

continued op

tal income ta

rent and defe

are purchase

pital raising c

ome tax recog

reign currenc

eign operatio

TR of discont

sh flow hedge

FCTR – transf

operations o


e

he income sta

ense:

r prior years

penses:

reversal of te

x rate

prior years

ense

ense from con

ense/(benefit

ense/(benefit

perations

x expense

erred tax expe

costs

costs

gnised in othe

y translation

ons

inued operat

es

fer of Foreign

f the Group b

olled Entities

atement

emporary dif

ntinuing oper

) from discon

) from loss o

ense recognis

er comprehen

differences f

ions disposed

Currency Tra

being disposed

fferences

rations

ntinuing oper

n sale of

sed directly in

nsive income

Be

T

$

for

(16

d (1)

5

(10

anslation Rese

d.

Not

11

rations 13

13

n equity

201

Ta

efore (expe

Tax bene

'000 $'0

6,978)

420

5,648 (2,

0,910) (2,

Consol

erve (FCTR) fro

e 2011

$'000

23,087

(514

22,573

(2,391

(455

(2,846

19,727

20,273

(473

(73

19,727

Cons

2011

$'000

2,05

1,38

3,43

Cons

11

ax

ense) Net o

efit tax

00 $'000

‐ (16,97

‐ 42

,389) 3,25

,389) (13,29

idated

om equity res

2010

$'000

7 13,691

4) (328

3 13,363

1) 270

5) (430

‐ ‐

6) (160

7 13,203

3 13,485

3) (282

3) ‐

7 13,203

solidated

2010

$'000

54

80 1,40

34 1,40

solidated

of Befor

Tax

0 $'000

78) (5,473

20 5,371

59 3,290

99) 3,188

serve to profit

87

1

8)

3

0

0)

‐

0)

3

5

2)

‐

3

‐

4

4

Tax

e (expense)

benefit

0 $'000

3) ‐

1 ‐

0 (1,150

8 (1,150

2010

Consolidate

upon foreign

) Net of

tax

$'000

(5,473)

5,371

) 2,140

) 2,038

ed

n

For

per

sona

l use

onl

y


9 Income

(c) Nu

P

at

In

Ef

Sh

C

w

Im

Re

Ta

Su

U

In

10 Current The currrecoverarelevantamount


e tax expense

umerical reco

rima facie inc

t 30% on net

ncrease/(decr

ffect on tax ra

hare based pa

urrent year lo

was recognised

mpairment of

eduction in ta

ax ‐ investme

undry

nder/(over) p

ncome tax exp

t tax assets a

rent tax assetable in respect tax authorityof income tax


e (continued

onciliation bet

come tax expe

profit

ease) in incom

ate in foreign

ayments

osses for whic

d

f goodwill

ax rate in fore

ent allowance

provided in pr

pense/(benefi

and liabilitie

t for the Grouct of prior pery. The currexes payable in

olled Entities

d)

tween tax exp

ense calculate

me tax expens

jurisdictions

ch no deferred

eign jurisdictio

rior years

it)

es

up of $427,00riods and thatnt tax liabilityn respect of cu

pense and pre

ed

se due to:

d tax asset

ons

00 (2010: $65t arise from py for the Grourrent and pri

e tax net prof

6,000) represpayment of taup of $6,790,ior financial p

fit/(loss):

201

$'00

2

1

sents income xes in excess ,000 (2010: $eriods.

11 2

00 $

21,129

(658)

‐

(380)

‐

(455)

‐

605

(514)

19,727

Consolidated

taxes and wi of the amou$5,858,000) re

88

2010

$'000

(10,833)

(255)

270

13,260

11,085

(430)

(191)

625

(328)

13,203

d

thholding taxnt due to theepresents the

x e e

For

per

sona

l use

onl

y


11 Deferre

RecogniDeferred

Consoli

Propert

Intangib

Receiva

Invento

Payable

Derivat

Interest

Employ

Equity ‐

Provisio

Tax loss

Tax (ass

Set off

Net tax

Moveme

Propert

Intangib

Receiva

Invento

Payable

Derivat

Interest

Employ

Equity ‐

Provisio

Tax loss


ed tax assets

sed deferred d tax assets an

idated

ty, plant and

ble assets

ables

ories

es

ives

t‐bearing loan

yee benefits

‐ capital raisin

ons

ses carried fo

sets)/liabilitie

of tax

(assets)/liab

ent in tempor

ty, plant and

ble assets

ables

ories

es

ives

t‐bearing loan

yee benefits

‐ capital raisin

ons

ses carried fo


s and liabiliti

tax assets annd liabilities a

equipment

ns and borro

ng costs

orward

es

bilities

rary differenc

equipment

ns and borro

ng costs

orward

olled Entities

ies

d liabilities re attributabl

wings

ces during the

B

1

wings

le to the follo

2011

$'000

(6,892)

(17)

(4,386)

(103)

(3,871)

(1,794)

(19)

(1,525)

(30)

(2,871)

(2,017)

(23,525)

23,525

‐

Asset

e year

R

Balance

July 09

$'000

33,073

7

(2,789)

1,747

(1,405)

(4,885)

177

(1,759)

(2,820)

(23)

(697)

20,626

wing:

2010

$'000

(276)

‐

(3,558)

(93)

(3,742)

(4,216)

‐

(1,490)

(1,416)

(43)

(4,213)

(19,047)

19,047

‐

ts

Recognised

in profit

or loss

$'000

4,855

6

(746)

(179)

(2,337)

(481)

1,989

269

‐

(20)

(3,516)

(160)

2011

$'000

40,534

‐

1,424

1,244

11

85

4,170

‐

‐

‐

‐

47,468

(23,525)

23,943

Liabiliti

Recognised

directly

in equity

$'000

1,40

1,40

Consolidat

2010

$'000

38,204

13

23

1,661

‐

‐

2,166

‐

‐

‐

‐

42,067

(19,047)

23,020

ies

Recogn

d in oth

comprehe

incom

$'00

‐

‐

‐

‐

‐

‐

‐

‐

04

‐

‐

04

ted

89

2011 2

$'000 $

33,642 37

(17)

(2,962) (3

1,141 1

(3,860) (3

(1,709) (4

4,151 2

(1,525) (1

(30) (1

(2,871)

(2,017) (4

23,943 23

‐

23,943 23

Net

nised

her

ensive Ba

me 30 J

00 $

‐

‐

‐

‐

‐

1,150

‐

‐

‐

‐

‐

1,150

2010

'000

7,928

13

3,535)

1,568

3,742)

4,216)

2,166

1,490)

1,416)

(43)

4,213)

3,020

‐

3,020

alance

une 10

'000

37,928

13

(3,535)

1,568

(3,742)

(4,216)

2,166

(1,490)

(1,416)

(43)

(4,213)

23,020 For

per

sona

l use

onl

y


11 Deferre

Moveme

Propert

Intangib

Receiva

Invento

Payable

Derivat

Interest

Employ

Equity ‐

Provisio

Tax loss

The foll

brough

Tax loss


ed tax assets

ent in tempor

ty, plant and

ble assets

ables

ories

es

ives

t‐bearing loan

yee benefits

‐ capital raisin

ons

ses carried fo

owing deferr

t to account

ses


s and liabiliti

rary differenc

equipment

ns and borro

ng costs

orward

red tax assets

as assets:

olled Entities

ies (continue

ces during the

B

1

wings

s have not be

ed)

e year

R

Balance

July 10

$'000

37,928

13

(3,535)

1,568

(3,742)

(4,216)

2,166

(1,490)

(1,416)

(43)

(4,213)

23,020

een

Recognised

in profit

or loss

$'000

(4,286)

(30)

573

(427)

(118)

118

1,985

(35)

6

(2,828)

2,196

(2,846)

Recognised

directly

in equity

$'000

1,38

1,38

Consolidat

2011

$'000

16,48

Con

Recogn

d in oth

comprehe

incom

$'00

‐

‐

‐

‐

‐

‐

‐

‐

80

‐

‐

80

ted

2010

$'000

86 19,

nsolidated

90

nised

her

ensive Ba

me 30 J

00 $

‐

‐

‐

‐

‐

2,389

‐

‐

‐

‐

‐

2,389

0

0

,810

alance

une 11

'000

33,642

(17)

(2,962)

1,141

(3,860)

(1,709)

4,151

(1,525)

(30)

(2,871)

(2,017)

23,943

For

per

sona

l use

onl

y


12 Dividen

(i) The

201

Fin

Inte

Inte

Fran SubAfteprov

201

Fin

Tot

Thefina

The

201

Fin

Inte

Tot


nds

e following div

11

al 2010 ordin

erim 2011 or

erim 2011 sp

nked dividend

bsequent to 30er 30 June 20vided for. The

11

al 2011 ordin

tal amount

financial effencial year end

e following div

10

al 2009 ordin

erim 2010 or

tal amount


vidends were

nary

rdinary

pecial

ds declared or

0 June 2011 011 the followe declaration

nary

ect of these dded 30 June 2

vidends were

nary

dinary

olled Entities

declared and

r paid during t

wing dividendand subseque

dividends has 011 and will b

declared and

d paid by the

Cents

per sha

2.0

2.0

5.0

the year were

ds were propoent payment o

Cents

per sha

3.0

not been brobe recognised

d paid by the

Cents

per shar

2.0

‐

Group:

s To

are amo

$'0

franked at th

osed by the Dof dividends h

s To

are amo

$'0

ought to accod in subsequen

Group in the

Tota

e amou

$'00

1

1

otal Fr

ount un

000

12,625 F

12,625 F

31,561 F

56,811

he tax rate of 3

Directors. Thehave no incom

otal Fr

ount un

000

18,937 F

18,937

ount in the finnt financial re

prior year:

al Fran

unt unfr

00

2,625 Fra

‐

2,625

ranked/

nfranked

ranked 3

ranked

ranked

30%.

e dividends hme tax conseq

ranked/

nfranked

ranked 3

nancial statemeports.

nked/

ranked

anked 30

91

Date of

paymen

30 Septembe

31 March 2

31 March 2

ave not beenuences.

Date of

paymen

30 Septembe

ments for the

Date of

payment

September 2

f

nt

er 2010

2011

2011

n

f

nt

er 2011

e

2009

For

per

sona

l use

onl

y


12 Dividen

(ii) Fr

D

30

fo

Tad (a

(b(c

(d Tdshwg


nds (continue

ranking acco

ividend frank

0% franking c

or subsequen

he above avadjusted for:

a) franking receivabl

b) franking dc) franking

consolidad) franking c

he ability to eclare dividenheet date butwith the tax coroup has also


ed)

ount

king account

credits availa

t financial ye

ailable amou

credits that wes; debits that wicredits that wated group at credits that th

utilise the frnds. The impt not recognisonsolidation lassumed the

olled Entities

ble to shareh

ears

nts are based

will arise from

ill arise from twill arise fromthe year‐end;he entity may

ranking creditpact on the died as a liabilitlegislation, thbenefit of $4

holders of Em

d on the bal

m the payment

the payment om the receipt; and be prevented

ts is dependeividend frankty is to reducehe Company a45,625,000 (20

meco Holdings

ance of the

t of current ta

of dividends rt of dividend

d from distribu

ent upon theing account oe it by $8,116as the head e010: $56,539,0

s Limited

dividend fran

ax liabilities a

ecognised as s recognised

uting in subse

ere being suffof dividends p,000 (2010: $ntity in the A000) franking

2011

$'000

45,625

The Co

nking account

and recovery o

a liability at tas receivable

equent years.

ficient availabproposed afte$5,411,000). IAustralian tax credits.

92

2010

$'000

56,539

ompany

t at year‐end

of current tax

he year end;es by the tax

ble profits tor the balancen accordance‐consolidated

d

x

x

o e e d

For

per

sona

l use

onl

y


13 Discont

In FebruUSA. In rental aresolved(and relathe Victrespectiv

Losses

Revenu

Other in

Direct c

Cost of

Profit/(

Writeba

Impairm

Bad deb

Other e

Employ

Restruc

Impairm

FCTR on

Loss on

EBITDA

Depreci

EBIT

Net fina

Income

Income

Profit/(

Earning

The lossowners o

Cash flo

Net cas

Net cas

Net cas

Net cas

The Boain these


tinued opera

uary 2010 the June 2010 it nd sales assetd to exit the Vated contractorian Rental vely.

of discontinu

e

ncome

costs

sales equipm

(loss) on sale

ack/(writedo

ment of fixed

bts expense

expenses

yee expenses

cture costs

ment of good

n discontinue

n sale of disco

A

iation

ance expense

e tax

e tax on sale o

(loss) for the

gs per share

s from disconof the Compa

ows from (us

h used in ope

h from inves

h from finan

h from (used

rd’s decision businesses an


ations

Board resolvewas decided ts and commVictorian Rentts) within its Abusiness and

ued operation

ment on rent

of assets

wn) of stock

assets

will

ed operations

ontinued ope

es

of discontinue

period

ntinued operaany.

ed in) discon

erating activi

ting activities

cing activities

d in) discontin

to close thesend to refocus

olled Entities

ed to close theby the Board enced a stratal business wAustralian bus the Emeco U

ns

s disposed

rations

ed operation

ation of $365

ntinued opera

ties

s

s

nued operatio

e businesses wthe Group’s r

e Emeco Euro to completeltegy to disposwhich comprisesiness. TheseUSA parts bus

s

5,000 (2010:

ation

on

was to addreresources to a

ope operationy exit the USAse of the Emeed predominae operations wsiness were s

loss of $61,6

ss the underpalign with its c

s and decreasA having mateeco USA partsantly of civil rewere discontisold in Octobe

20

$'0

1

613,000) is at

20

$'0

2

(2

performance iore rental cus

se Emeco’s prerially disposes business. Thental plant annued at 30 Juer 2010 and

011

000 $

12,984

529

(7,651)

‐

(157)

871

(2,024)

(158)

(1,608)

(1,101)

210

‐

420

(424)

1,891

(2,749)

(858)

(53)

473

73

(365)

(0.001)

ttributable en

011

000 $

3,633

23,840

27,684)

(211)

in returns beistomer base.

93

resence in theed of all of itshe Board alsond equipmentune 2010 andJanuary 2011

2010

$'000

56,741

227

(41,173)

(484)

(3,418)

(5,942)

(9,316)

‐

(8,334)

(9,394)

(7,630)

(16,846)

(5,371)

‐

(50,940)

(9,002)

(59,942)

(1,953)

282

‐

(61,613)

(0.100)

ntirely to the

2010

$'000

31,725

13,133

(46,500)

(1,642)

ng generated

e s o t d 1

e

d

For

per

sona

l use

onl

y


13 Discont

Effect o

Propert

Invento

Trade a

Cash an

Deferre

Trade a

Net ass

Cash re

Gain/(lo

14 Non‐cu

At 30 Jusegmentdispose Victorianwas comliabilities

Assets

Propert

Invento

Trade a

Liabiliti

Trade a

Provisio


tinued opera

of disposal on

ty, plant and

ories

nd other rece

nd cash equiv

ed tax liabilitie

nd other pay

ets and liabil

eceived for sa

oss) on dispo

rrent assets

une 2010 the t were presenof these segmn rental businmpleted in Jas $Nil being th

classified as

ty, plant and

ories

nd other rece

es classified

nd other pay

ons


ations (conti

n the financia

equipment

eivables

valents

es

yables

lities

le of disconti

osal

held for sale

parts divisionnted as disposments. Effortness includinganuary 2011. he remaining

held for sale

equipment

eivables

as held for sa

yables

olled Entities

nued)

al position of

inued operat

e

of the USA ssal groups hets to sell asseg a majority of At 30 June Victorian rent

ale

the Group

ions

segment and teld for sale foets of these dif its assets in 2011 the dital assets yet

the Victorian llowing commisposal groupOctober 2010sposal groupto be dispose

20

$'0

(1

(1

1

rental businemitment from s were under0 and the sales comprised d.

20

$'0

20

$'0

011

000

12,295)

(2,953)

(54)

‐

‐

455

14,847)

14,423

(424)

ess of the Aus the Group inrtaken with the of the USA asset of $8.7

011

000 $

8,169

‐

559

8,728

011

000 $

‐

‐

‐

94

stralian rentaln late 2010 tohe sale of theparts division7 million and

2010

$'000

35,989

1,905

519

38,413

2010

$'000

56

2,140

2,196

l o e n d

For

per

sona

l use

onl

y


15 Segme The GroThe strarequire Board ofoperatio

Australi

Australi

Australi

Indones

Canada

United SAmerica(Discont Europe (Discont Informaon segmreviewetax is uevaluatsegmen


ent reporting

oup has sevenategic businesdifferent opef Directors revons in each of

an Rental

an Sales

an Parts

sia

States of a (“USA”) tinued)

tinued)

ation regardinment profit bed by the Groused to measting the resultnt pricing is de


g

n reportable sss units offererational stratview internal the Group’s r

Providescustomeoperatio

Sells a wand min

Procurescustome

Providescustome

Providescustome

Providedservices both int

Providedservice t

ng the results before interesoup’s Managinsure performats of certain setermined on

olled Entities

segments, as r different prtegies. For emanagementreportable seg

s a wide raners in Australion and a dispo

wide range ofing industries

s and supplieers and intern

s a wide raners in Indones

s a wide raners who are pr

d a wide ranand procureernal and exte

d a wide rangto customers

of each reporst and incomng Director anance as manasegments relaan arm’s leng

described beoducts and seach of the st reports on a gments:

nge of earthia. The Victoriosal group hel

f earthmovings in Australia.

es globally sonally to the ren

nge of earthsia.

nge of earthredominately

ge of earthmment and supernal in the U

ge of earthmoin Europe. Th

rtable segmenme tax as inclnd Board of Dagement beliative to other gth basis.

low, which aservices, and strategic busimonthly basi

moving equiian Rental buld for sale in 2

g equipment

ourced used ntal and sales

hmoving equi

moving equi within Canad

moving equipmpply of used USA. This segm

oving equipmehis segment w

nt is included uded in the

Directors. Segeves that sucentities that

re the Group’are managedness units, ths. The followi

pment and msiness was cla2010.

to customers

and reconditdivisions with

ipment and

pment and mda.

ment for rentand reconditiment was disc

ent for rental was discontinu

below. Perforinternal manment profit bch informatiooperate with

’s strategic bd separately he Managing ing summary

maintenance assified as a d

s in the civil c

tioned parts hin Australia.

maintenance

maintenance

tal or sale, mioned parts tocontinued in 2

or sale and mued in 2010.

rmance is menagement repbefore intereson is the moshin these indu

95

usiness units.because theyDirector anddescribes the

services to discontinued

construction

to external

e service to

services to

maintenance o customers 2010.

maintenance

easured basedports that arest and incomest relevant inustries. Inter‐

. y d e

d e e n ‐

For

per

sona

l use

onl

y

Externa l

Inter‐seg

Depreci

Reporta

before i

Other m

Impa irm

Impa irm

equipme

Reversa

plant an

assets

Reporta

Capi ta l

Reporta

Externa l

Inter‐seg

Deprecia

Reporta

before i

Other m

Impairm

Impa irm

equipme

Reporta

Capi ta l

Reporta


15 Segme Informa

l revenues

gment revenue

ation

ble segment profi t

nteres t and i ncom

materia l non‐cash i

ment of receivables

ment on property, p

ent and intangible

l of impa irment o

nd equipment and

ble segment asset

expendi ture

ble segment l i abi l

Informa

l revenues

gment revenue

ation

ble segment profi t

nteres t and incom

ateria l non‐cash i

ment of receivables

ment on property, p

ent and intangible

ble segment asset

expendi ture

ble segment l i abi l

(1) Vicat 3


ent reporting

ation about re

Au

t/(loss )

me tax

i tems :

s

plant and

e assets

n property,

intangible

ts

l i ties

ation about re

Au

t/(los s )

me tax

i tems :

s

plant and

e assets

ts

i ties

ctorian Rental30 June 2010.


g (continued

eportable seg

ustralian Vic

Rental Re

(dis

$'000 $

327,150

2,965

(87,015)

98,315

‐

‐

‐

692,443

(126,994)

(54,572)

eportable seg

ustralian Vic

Rental Re

(dis

$'000 $

250,948

5,166

(68,320)

72,864

‐

(274)

619,911

(96,835)

(42,361)

forms part o.

olled Entities

)

gments 2011

ctorian Aust

ntal (1 ) Sa

scont'd)

$'000 $'

9,507

125

(2,749)

(1,829)

‐

(2,025)

‐

9,385

(149)

(332)

gments 2010

ctorian Aust

ntal (1) Sa

scont'd)

$'000 $'0

19,758

‐

(5,421)

(17,784)

(58)

(19,802)

36,094

(2,881)

(816)

f Australian R

tralian Austr

ales Par

'000 $'0

48,853

3,830

(456)

(260)

‐

‐

400

26,902

(173)

(4,664)

tralian Austr

ales Par

000 $'00

52,807 1

18,403

(675)

(20,532)

‐

(17,268)

54,562 2

(930)

(3,729)

Rental segmen

ralian Indone

rts

00 $'000

17,010 44

1,367 4

(125) (15

573 (2

‐ (10

‐ (3

‐

24,730 77

(219) (19

(3,641) (8

alian Indone

rts

00 $'000

14,070 49

3,057 8

(159) (17

(2,182) 15

‐ (1

(3,729) (

25,295 115

‐ (16

(1,729) (17

nt but has bee

sia Canada

0 $'000

,596 64,886

,110 ‐

,730) (18,589)

,665) 14,031

,677) ‐

,331) ‐

‐ ‐

,972 140,076

,296) (56,637)

,399) (13,319)

sia Canada

0 $'000

,311 37,823

,693 6,235

,694) (12,222)

,793 (4,668)

,528) (435)

(309) (7,793)

,363 150,689

,423) (28,678)

,884) (13,639)

en separated

USA

(discont'd)

$'000

3,068

867

) ‐

797

‐

‐

‐

303

) ‐

) (178)

USA

(discont'd)

$'000

23,702

25,439

(2,900)

(33,004)

(2,327)

(5,643)

4,871

(602)

(6,269)

out as it was

96

Europe

(discont'd)

$'000

409

‐

‐

174

‐

‐

‐

3,839

‐

) (10)

Europe

(discont'd)

$'000

13,281

2,348

(681)

(9,154)

‐

(717)

2,730

‐

(1,489)

discontinued

Total

$'000

515,479

13,264

(124,664)

109,136

(10,677)

(5,356)

400

975,650

(203,468)

(85,115)

Total

$'000

461,700

69,341

(108,072)

1,333

(4,348)

(55,535)

1,009,515

(146,349)

(87,916)

d

For

per

sona

l use

onl

y


15 Segmen

Reconci

Revenu

Total re

Elimina

Elimina

Consoli

Profit o

Total EB

Elimina

Unalloc

Other

Net in

Consoli

operati

Assets

Total as

Unalloc

Consoli

Liabiliti

Total lia

Unalloc

Consoli

Other m

Capital

Depreci

Reversa

equipm

Other m

Capital

Depreci

Reversa

equipm


nt reporting

liation of repo

ues

evenue for re

tion of inter‐

tion of disco

idated revenu

or loss

BIT for report

tion of disco

cated amoun

r corporate ex

nterest expen

idated profit

ons

ssets for repo

cated assets

idated total a

es

abilities for re

cated liabilitie

idated total li

material item

expenditure

iation

al of impairm

ment and inta

material item

expenditure

iation

al of impairm

ment and inta


(continued)

ortable segm

portable segm

‐segment rev

ntinued oper

ue from cont

table segmen

ntinued oper

ts:

xpenses

nse

before incom

ortable segme

assets

eportable seg

es

iabilities

ms 2011

ent on prope

ngible assets

ms 2010

ent on prope

ngible assets

olled Entities

ent revenues

ments

enue

rations

inuing operat

ts

rations

me tax from co

ents

gments

erty, plant an

erty, plant an

s, profit or los

tions

ontinuing

nd

nd

s, assets and

Reportab

segmen

totals

$'000

(203,4

(124,6

4

(146,3

(107,7

(55,5

liabilities and

2011

$'000

528,7

(13,2

(12,9

502,4

109,1

8

(16,7

(22,9

70,2

975,6

5,5

981,1

85,1

293,8

378,9

ble

nt Disconti

operat

$'00

68)

64) 2

00

49) 3

77) 9

35) 26

d other mater

20

$'0

743

264)

984)

495

136

858

788)

959)

247

650 1,

502

152 1,

115

803

918

inued Conso

ions To

00 $'0

149 (20

2,749 (12

‐

3,483 (14

9,002 (9

6,162 (2

97

rial items

010

000

531,041

(69,341)

(56,741)

404,959

1,333

59,942

(12,765)

(22,725)

25,785

009,515

5,239

014,754

87,916

304,095

392,011

olidated

otal

000

03,319)

21,915)

400

42,866)

98,775)

29,373)

For

per

sona

l use

onl

y


15 Segmen GeograThe segAmericageograp The Gro

Geogra

Revenu

Non‐cu

Assets

(1) The

This

(2) Northe $23

(3) Assenon

Major cThe Gro


nt reporting

phical informgments are ma. In presentiphical location

oup’s business

Australia (1

Asia North Ame Europe

phical segme

ue

rrent (3)

Victorian Res represented

rth American sUSA busines,869,000) and

ets that are cn current asset

customer oup has no sin


(continued)

mation anaged on a ing information of customer

s segments op

1)

erica (2)

ents

2011 2

$'000 $'

402,520 3

649,668 5

Australia

ntal business,revenue of $9

segment consss was discond $Nil (2010: $

considered as ts geographic

ngle major cus

olled Entities

global basis, bon on the bars. Segment a

perate geogra

Rental, sales Rental divisi Rental, sales Rental and s

010 2011

'000 $'000

337,356 44,

596,250 58,

, in the Austra9,507,000 (20

sists of the Cantinued, repr$Nil) respectiv

held for saleal segment to

stomer that w

but operate fasis of geograassets are bas

aphically as fo

s and parts di

ion in Indones

s and parts di

sales division

1 2010

0 $'000

,596 49,311

,809 56,514

Asia

alian geograp010: $19,758,0

anadian and Uresenting revevely for 2011.

e due to their otals.

would amount

facilities and saphical segmeed on the geo

llows:

visions throug

sia

visions throug

in Netherland

2011

$'000

67,954

123,885

North Ame

phic segment,000) for the y

USA businesseenue and no

designation a

t to 10% or mo

sales offices inents, segmentographical loca

ghout Australi

ghout North A

ds (Discontinu

2010 20

$'000 $'0

61,692

130,113

(

erica

was classifiedear ended 30

s. During then‐current ass

as discontinue

ore of the Gro

n Australia, At revenue is ation of the a

ia

America

ued in 2010)

011 2010

000 $'000

409 13,341

‐ 5,675

(discont'd)

Europe

d as discontinJune 2011.

e year ended 3sets of $3,06

ed are not in

oup’s total rev

98

sia and Northbased on thessets.

2011

$'000

1 515,479

5 832,362

Consolid

nued in 2010.

30 June 2010,68,000 (2010:

cluded in the

venues.

h e

2010

$'000

461,700

788,552

dated

.

, :

e

For

per

sona

l use

onl

y


16 Cash

Cash

17 Trade

Curre

Trade

Less:

Othe

Non‐

Othe

The Greceiv

18 Prepa

Tyre

Othe


assets

at bank

e and other

ent

e receivables

Impairment

er receivables

‐Current

er receivables

Group’s exposvables are disc

ayments

prepayments

er prepaymen


receivables

of receivable

sure to creditclosed in note

s

nts

olled Entities

es

t risks, currene 5.

ncy risks and

201

$'00

C

201

$'00

87

(1275

7

83

C

impairment

201

$'00

2

2

C

11 20

00 $'0

5,502

Consolidated

11 20

00 $'0

7,963 9

2,165) (5,798 8

7,453

3,251 9

581

581

Consolidated

losses associa

11 20

00 $'0

‐

2,313

2,313

Consolidated

010

000

5,239

010

000

91,723

(6,652)85,071

5,256

90,327

14

14

ated with tra

010

000

2,244

2,306

4,550

99

de and otherr

For

per

sona

l use

onl

y


19 Inven

Equip

Work

Cons

Total

Equip

Total

Balan

Addit

Impa

Cost

Dispo

Balan

(1)


ntories

pment and Pa

k in progress

sumables, spa

l at cost

pment and Pa

l inventory

nce at 1 July

tions

airment loss o

of sales inve

osals

nce at 30 Jun

During the yrecognised a$10,467,000


arts ‐ at cost

‐ at cost

are parts ‐ at

arts ‐ at NRV

on inventory

ntory on rent

e

year ended 3as an expense).

olled Entities

cost

(1)

(1)

t (1)

30 June 2011e in the State

1 the write‐doement of Com

201

$'00

33

4

38

9

48

87

23

(

(59

48

C

own of invenmprehensive In

11 20

00 $'0

3,007 6

4,557

1,288

8,852 7

9,717 1

8,569 8

7,017 14

3,679 3

(841) (

1,579) (

9,707) (8

8,569 8

Consolidated

ntories to netncome amou

010

000

67,138

3,472

5,854

76,464

10,553

87,017

42,650

36,751

(5,423)

(5,044)

81,917)

87,017

t realisable vnted to $2,42

100

value (“NRV”)20,000 (2010:

) :

For

per

sona

l use

onl

y


20 Intan

Goodw

Carryi

Impair

Effects

Contra

Less: A

Other

Less: A

Total i

AmortiThe amstatem

Amort

Impair

Total e

for con

Impair

Total e

for dis


ngible assets

will

ng amount a

rment of goo

s of moveme

act intangible

Accumulated

intangibles ‐

Accumulated

intangible ass

isation and immortisation chent:

tisation expen

rment of goo

expense for t

ntinuing oper

rment of goo

expense for t

scontinued op


t the beginni

dwill

nt in foreign

es ‐ at cost

amortisation

at cost

depreciation

sets

mpairment losharge and imp

nse

dwill

he year

rations

dwill

he year

perations

olled Entities

ng of the yea

exchange

n

n

sses pairment of g

ar

goodwill are

2011

$'000

177,

(4,

172,

(

1,

(1,

173,

C

recognised in

2011

$'000

C

1 20

0 $'0

,665 21

‐ (3

835)

,830 17

712

712)

‐

,946

528)

418

,248 17

onsolidated

n the followin

20

0 $'0

258

‐ 2

258 2

‐ 1

‐ 1

onsolidated

010

000

15,333

36,951)

(717)

77,665

712

(712)

‐

1,820

(1,293)

527

78,192

ng line item in

010

000

295

20,105

20,400

16,846

16,846

101

n the incomee

For

per

sona

l use

onl

y


20 Intang

ImpairFor the

The agg

Austra

Canad

Asian

Total r

The GrmethoReal pousing determof equreflect determrevenuinvestmAustrathe FYto be bcapitalbetwee The CGthat wadditiothis sce


gible assets (

ment tests foe purpose of im

gregate carry

alian rental

da rental

rental

rental

roup has deteodology (2010ost tax discoucountry specmined using thivalently cred the relative mining the renue growth in tment which wlia and Canad12 capital invbetween a ral turnover anen 4.4% (2010

GU valuationsere not impaional 2.0% (20enario.


(continued)

or cash generampairment te

ing amounts o

ermined the 0: value in usent rates havecific ten year he CGU’s funcit rated businilliquidity for ntal CGU’s vathe first year will be delivereda. The seconvestment will nge of 2.0% ‐d margins. C0: 4.8%) and 8

s are sensitiveired during th10: 2.0%). Th

olled Entities

ating units conesting, goodwi

of goodwill all

recoverable ae) which is babeen derivedbond rates

ctional currenesses at 30 Julonger tenureluations rangeof the busineed across FY1nd year of thecontribute to ‐ 3.0% per yeCompound an8.7% (2010: 9.

e to changes ie year (refer e sensitised t

ntained goodill is allocated

located to eac

amount of itssed on discoud as a weighteplus an apprncies three yeune 2011. Thee debt in the e between 6.ess plan inclu12 and translae business pla revenue in Fear (2010: 1.0nnual growth .5%).

n the discounbelow) by inctesting confirm

dwill to the Group

ch unit are as

2011

$'000

151

5

15,

172

C

s cash generaunted cash floed cost of equropriate markar swap rate e three year scurrent mark6% and 7.3%.udes the beneate in part to an will also beY13. Subsequ% ‐ 5.0%) reprates over th

nt rate. The Ccreasing the dmed that no i

p’s geographic

follows:

1 20

0 $'0

,745 1

,667

,418 1

,830 1

onsolidated

ting units (“Cows for five yeity and debt. ket risk premplus a marginwap rates weket. The real p. For future caefit from the Gyear on year e influenced tuent revenue presenting anthe first six ye

ompany has fiscount rate fmpairment w

cal operating d

010

000

51,745

6,555

19,365

77,665

CGU”) using aears plus a teCost of equity

mium. The con for three yeere used as thepost tax discoashflows of eGroup’s commrevenue growto the extent growth ratesticipated impears of the fo

further testedfor each of thewould be reco

102

divisions.

a value in useerminal value.y is calculatedost of debt isar tenor debte base rate toount rates foreach CGU, themitted capitalwth, mostly inthat 100% of are assumedprovements inorecast range

d those CGU’se CGU’s by anognised under

e . d s t o r e l n f d n e

s n r

For

per

sona

l use

onl

y


21 Prope

Freeh

Less:

Lease

Less:

Plant

Less

Lease

Less

Furn

Less

Offic

Less

Moto

Less

Sund

Less

Total


erty, plant a

hold land and

Accumulate

ehold improv

Accumulate

t and equipm

: Accumulate

ed plant and

: Accumulate

iture, fixtures

: Accumulate

e equipment

: Accumulate

or vehicles ‐ a

: Accumulate

dry plant ‐ at

: Accumulate

l property, pl


and equipme

d buildings ‐ a

d depreciatio

vements at co

d depreciatio

ment ‐ at cost

ed depreciatio

equipment ‐

ed depreciatio

s and fittings

ed depreciatio

‐ at cost

ed depreciatio

at cost

ed depreciatio

cost

ed depreciatio

ant and equi

olled Entities

ent

at cost

on

ost

on

on

at capitalised

on

‐ at cost

on

on

on

on

pment ‐ at ne

d cost

et book valuee

2011

$'000

29,722

(3,580

26,142

4,880

(2,021

2,859

988,624

(396,903

591,721

36,125

(7,165

28,960

1,178

(498

680

3,929

(2,870

1,059

7,930

(3,518

4,412

10,157

(7,457

2,700

658,533

Cons

2010

$'000

2 30,

0) (2,5

2 27,6

0 3,9

1) (1,8

9 2,0

4 894,

3) (334,8

1 559,3

5 16,7

5) (3,9

0 12,7

8 1,2

8) (4

0 7

9 3,6

0) (2,6

9 1,0

0 5,9

8) (2,9

2 3,0

7 9,9

7) (6,1

0 3,8

3 610,3

solidated

103

173

532)

641

931

875)

056

197

870)

327

700

959)

741

214

491)

723

641

636)

005

939

909)

030

997

174)

823

346

For

per

sona

l use

onl

y


21 Prope

RecoReco

prop

Free

Carry

Addit

Depr

Dispo

Forei

Impa

Recla

Carry

Lease

Carry

Addit

Dispo

Depr

Effec

Impa

Recla

Carry

Plant

Carry

Addit

Capit

Trans

Net m

Dispo

Depr

Impa

Recla

Effec

Carry

Furn

Carry

Addit

Dispo

Depr

Impa

Recla

Effec

Carry

(1) D

cuinth

(2) Tp

(3) T


erty, plant a

onciliationsnciliations of

erty, plant an

hold land and

ying amount

tions

eciation

osals

ign Exchange

airment

assified to ass

ying amount

ehold improv

ying amount

tions

osals

eciation

ts of movem

airment

assified to ass

ying amount

t and equipm

ying amount

tions

tal work in pr

sferred from

movement in

osals

eciation

airment loss

assified to ass

ts of movem

ying amount

iture, fixture

ying amount

tions

osals

eciation

airment

assified to ass

ts of movem

ying amount

During FY11 theustomer site. Tnsurance procehe cost of salvahe prior year ilus some impai

his includes $3


and equipme

f the carrying

nd equipmen

d buildings

at the beginn

movement

sets held for

at the end of

vements

at the beginn

ent in foreign

sets held for

at the end of

ment

at the beginn

rogress

leased Plant

rental inven

sets held for

ents in foreig

at the end of

s and fittings

at the beginn

sets held for

ent in foreign

at the end of

e Indonesian buThis equipmenteds recoverablaging the damagmpairment losirment of the C

.5 million trans

olled Entities

ent (continue

amounts for

t are set out

ning of the ye

sale

f the year

ning of the ye

n exchange

sale

f the year

ning of the ye

and Equipme

tory

sale

gn exchange

f the year

s

ning of the ye

sale

n exchange

f the year

usiness impairedt was insured ae in relation toged equipments was associateCanadian civil fle

sfer from sales i

ed)

r each class o

below:

ear

ear

ear

ent

ear

d $3.3 million ond $4.2 million

o this incident. Tt (refer note 25ed with plant aeet within cont

inventory to pla

201$'00

of

27

(1

26

2

2

559

18

14

(34

(115

(5

(9

59

of equipment wn has been recoThe Company a). and equipmenttinuing operatio

ant and equipm

1100

7,641

686

1,172)

(949)

(464)

400

‐

6,142

2,056

1,576

(289)

(449)

(35)

‐

‐

2,859

9,327

1,846 (3)

‐

679

4,615

4,579)

5,425)

5,355) (1)

‐

9,387)

1,721

723

183

(96)

(119)

‐

‐

(11)

680

Consolidate

which was damaognised in sundalso recognised

within the disons.

ment.

2010$'000

28,902

645

(1,349)

‐

387

(927)

(17)

27,641

3,027

897

(178)

(487)

53

(1,111)

(145)

2,056

605,414

140,972

‐

1,772

3,279

(43,327)

(99,473)

(15,033) (2)

(35,475)

1,198

559,327

1,278

23

(245)

(101)

(227)

(31)

26

723

ed

aged whilst beiry income (refe a provision of

scontinued ope

104

ing demobiliseder note 6) repre$1.4 million rel

rations (refer n

d from a esenting lating to

note 13)

For

per

sona

l use

onl

y


21 Prope

Reco

Recon

prope

Office

Carry

Addit

Dispo

Depre

Impa

Recla

Effect

Carry

Moto

Carry

Addit

Dispo

Depre

Impa

Recla

Effect

Carry

Sund

Carry

Addit

Dispo

Depre

Impa

Recla

Effect

Carry

Lease

Carry

Addit

Trans

Dispo

Depre

Effect

Carry

SecuriThe GRefer


erty, plant a

nciliations (c

nciliations of

erty, plant an

e equipment

ying amount a

tions

osals

eciation

irment

ssified to ass

ts of moveme

ying amount a

or vehicles

ying amount a

tions

osals

eciation

irment

ssified to ass

ts of moveme

ying amount a

ry plant

ying amount a

tions

osals

eciation

irment

ssified to ass

ts of moveme

ying amount a

ed plant and

ying amount a

tions

sferred to ow

osal

eciation

ts of moveme

ying amount a

ity Group’s assetsnote 23 for fu


and equipme

ontinued)

the carrying

nd equipment

t

at the beginn

sets held for s

ent in foreign

at the end of

at the beginn

sets held for s

ent in foreign

at the end of

at the beginn

sets held for s

ent in foreign

at the end of

equipment

at the beginn

wned plant an

ents in foreig

at the end of

s are subject turther details

olled Entities

ent (continue

amounts for

t are set out

ning of the ye

sale

n exchange

the year

ning of the ye

sale

n exchange

the year

ning of the ye

sale

n exchange

the year

ning of the ye

d equipment

gn exchange

the year

to a fixed and.

ed)

r each class o

below:

ear

ear

ear

ear

t

d floating cha

201

$'00

f

1

1

3

2

(1

4

3

1

(1

2

12

21

(4

28

arge under th

1 2

00 $

1,005

510

(59)

(379)

‐

‐

(18)

1,059

3,030

2,659

(139)

1,087)

‐

‐

(51)

4,412

3,823

1,393

(729)

1,722)

‐

‐

(65)

2,700

2,741

1,229

(679)

‐

4,311)

(20)

8,960

Consolidated

e terms of th

2010

'000

1,058

676

(134)

(573)

(64)

(3)

45

1,005

4,030

1,496

(1,132)

(1,183)

(101)

(134)

54

3,030

6,335

1,640

(868)

(2,109)

(1,121)

(184)

130

3,823

17,925

‐

(1,772)

(1,134)

(2,503)

225

12,741

d

he syndicated

105

debt facility..

For

per

sona

l use

onl

y


22 Trade

Trade

Othe

Deriv

The Gnote 5

The C38. Ucreditpositi


e and other

e creditors

er creditors an

vatives used f

Group’s expos5.

Company has Under the tetors in the eveon of the Com


payables inc

nd accruals

for hedging

sure to curren

also entered rms of the Dent any of thempany and sub

olled Entities

cluding deriv

ncy and liquid

into a Deed oDeed, the Come entities partbsidiaries part

vatives

dity risk assoc

of Cross Guarmpany has guty to the Deedty to the Deed

201$'00

1

2

4

ciated with tr

rantee with cuaranteed thd are wound ud are set out i

11 200 $

6,664

6,030

5,703

8,397

Consolidated

rade and othe

ertain subsidie repayment up. Details ofn note 38.

2010$'000

8,494

28,005

14,238

50,737

d

er payables is

iaries as desc of all currenf the consolid

106

s disclosed in

cribed in notent and futureated financial

n

e e l

For

per

sona

l use

onl

y


23 Intere

Curre

Work

Lease

Non‐c

Bank

Lease

Debt

Bank lUnderassetscomprmillionfacilityhad th

AUDCADUSDEUR

WorkiThe wmillionC$2.0 expireC$2.0 OtherUnder$200.0$19.0 under


est bearing l

ent

king capital fa

e liabilities ‐ s

current

loans ‐ secur

e liabilities ‐ s

raising costs

loans r the terms os and undertarises a three n tranche why allows for fuhe following d

D O

ing capital facworking capitan (2010: $30.million (2010

es on 16 Novemillion facilit

r financial liabr the terms o0 million (201million (2010

r the facility ar


liabilities

acility

secured

red

secured

of the Group’sakings of the year $300.0 ich matures ounds to be drdrawn:

Funds drfunctional

$’00

CU

cility al facility is se0 million). Th0: C$2.0 milliember 2011 ay expires 11 D

bilities of the syndica10: $100.0 mi0: $5.5 milliore secured by

olled Entities

s syndicated Group. The million trancon 5 Novemberawn in Austra

FY11

rawn in currency 00

$139,000C$118,000US$27,000

‐

ecured under he Group alsoon) and US$Nand it is the inDecember 201

ated loan faciillion). At yeaon) which arethe assets lea

loan facility t$450.0 millioche which maer 2015. Eachalian, United

Funds dratranslated to

$’000

$13$11$2

the syndicato obtained woNil (2010: US$ntention that11. The worki

ility the Grouar end the Gre included witased.

201

$'00

3

3

278

15

(3

290

C

the banks hoon facility wasatures on 5 Nh entity of theStates and Ca

wn o AUD

Fufunc

39,00013,82325,177

‐

ed facility meorking capital$1.0 million) it will be rening capital fac

up can enter roup had estathin this perm

1 2

00 $'

‐

3,308

3,308

8,000 3

5,697

3,202)

0,495 2

Consolidated

ld a fixed ands established November 201e Group is a ganadian dolla

unds drawn inctional curren

$’000

$112,0C$113,2US$48,0

€3,8

entioned abov facilities for respectively. negotiated forcility is undraw

other permittablished finanmitted indebt

010

'000

‐

5,203

5,203

300,009

260

(1,377)

298,892

d

d floating chaon 5 Novemb13 and a fiveguarantor. Thrs. At year e

FY10

n ncy

Fundtransla

$

000 200 000 825

ove, and has aEmeco Cana The $25.0 mr another 12 wn at 30 June

ted indebtednce lease faciltness limit. A

107

arge over theber 2010 ande year $150.0he syndicatednd the Group

ds drawn ted to AUD $’000

$112,000$126,311$56,219$5,478

a limit of $25da Limited ofmillion facilitymonths. The2011.

ness totallinglities totallingAssets leased

e d 0 d p

5 f y e

g g d F

or p

erso

nal u

se o

nly


23 Intere

FinancFinanc

Conso

Less t

Betw

More

The Gleasedlessor

24 Finan The G

Total

Bank

Finan

Work

Facili

Bank

Finan

Work

Facili

Bank

Finan

Work


est bearing l

ce lease liabilce lease liabili

olidated

than one yea

een one and

e than five ye

Group leases pd assets of $2.

ncing arrange

Group has the

l facilities ava

k loans

nce leases

king capital

ities utilised a

k loans

nce leases

king capital

ities not utilis

k loans

nce leases

king capital


liabilities (co

ities ities of the Gr

p

r

five years

ars

plant and equ28,960,000 (2

ements

ability to acce

ailable:

at reporting d

sed or establ

olled Entities

ontinued)

oup are payab

Future

minimum

lease

payments I

2011

$'000

4,570

18,057

‐

22,627

uipment unde2010: $12,741

ess the follow

date:

ished at repo

ble as follows

Pr

va

mi

l

nterest pay

2011 2

$'000 $

(1,262)

(2,360)

‐

(3,622)

er finance lea1,000). In th

wing lines of cr

orting date:

s:

resent

alue of

nimum

ease

yments

2011

$'000

3,308

15,697

‐

19,005

ases. The Grohe event of d

redit:

Future

minimum

lease

payments

2010

$'000

5,287

261

‐

5,548

up’s lease liabefault, the le

2011

$'000

450,000

19,005

26,929

495,934

278,000

19,005

‐

297,005

172,000

‐

26,929

198,929

Consol

Interest

2010

$'000

(84)

(1)

‐

(85)

bilities are seeased assets

2010

$'000

595,00

5,46

33,40

633,86

300,00

5,46

305,47

294,99

33,40

328,39

lidated

108

Present

value of

minimum

lease

payments

2010

$'000

5,203

260

‐

5,463

ecured by therevert to the

0

3

3

6

9

3

‐

2

1

‐

3

4

e e

For

per

sona

l use

onl

y


25 Provis

Curren

Emplo

‐ annu

‐ long s

‐ other

Restru

Salvag

Non‐cu

Emplo

RestrucThe Groand theRestruc SalvageThe prosite in I DefinedThe Groyear wa

26 Share‐ During and senshares a Prior toCompan Only thoptionsbeen di During note 3k Perform


ions

nt

yee benefits:

al leave

service leave

r

cturing

e

urrent

yee benefits

cturing provisoup recognisee Australian Scturing costs u

e provision ovision relatendonesia dur

d contributionoup makes coas $3,130,000

based paym

the year the Cnior employeeand rights we

o establishing ny under the

he former Cos were issued isclosed in not

the year the k(v)).

mance shares,


‐ long service

sion ed provisions Sales businessused and reve

es to the cost ring the year (

n superannuaontributions t0 (2010: $3,16

ments

Company issues of the Grore also issued

the LTIP certaCompany’s M

mpany’s Execon 4 August 2te 33.

Company iss

performance

olled Entities

e leave

for the restrus in the prior ersed during th

of salvaging refer note 6 a

ation funds to defined con65,000).

ued performaoup under its d under simila

ain key managMISP (refer not

cutive Directo2006 and hav

ued matching

e rights, optio

ucture of Emeyear. Duringhe year amou

equipment daand 21).

ntribution sup

nce shares anLTIP (refer nor terms and c

gement persote 3k(v)).

ors have outsve expired on

g shares to ce

ns and shares

co Europe, Emg the year no unted to $775

amaged whils

perannuation

nd performanote 3k(v)). Donditions and

onnel and seni

standing optio4 August 201

ertain employ

s issued under

2011

$'000

3,272

369

113

‐

1,363

5,117

868

Consolid

meco USA, theadditional pr,000 and $671

st being demo

funds. The e

ce rights to keuring the priod priced relativ

ior employees

ons in the Co1 subsequent

yees of the Gr

r the MISP are

2010

$'000

3,542

314

‐

1,446

‐

5,302

803

dated

e Victorian Rerovisions wer1,000 respect

obilised from

expense recog

ey managemeor years LTIP ve to the time

s were issued

ompany at yet to balance d

roup under it

e all equity set

109

ental businesse recognised.tfully.

a customer‘s

gnised for the

ent personnelperformancee of issue.

shares in the

ear end. Thedate and have

ts ESOP (refer

ttled.

s .

s

e

l e

e

e e

r For

per

sona

l use

onl

y


26 Share‐ Long te Grant Perfor

Perfor

Perfor

Perfor

Total p

(1) On

perDirper


based paym

erm incentive

date / emplo

rmance shares

rmance shares

rmance shares

rmance shares

performance

16 Novembrformance sharector. The 92rformance sha


ments (contin

plan

oyees entitled

s/rights 2008

s/rights 2009

s/rights 2010

s/rights 2011

shares/rights

er 2010 sharares for nil co25,926 and 1,ares/rights 20

olled Entities

nued)

d Num

Instru

1,2

9,8

(1) 4,6

(1) 5,8

21,6

reholders apponsideration f,183,929 instr010 and 2011

mber of uments

Ves

290,000 3 ybas98 50%witentran

819,790 3 ybas98 50%witentran

608,076 3 ybas9850%witentran

889,200 3 ybas9750%witentran

607,066

proved the gfor the 2010 aruments haverespectively a

sting conditio

ears service Tsket of direct alisted compan% entitlementthin TSR grouptitlement up tnking of 75% b




rant of 925,9and 2011 finae been includeabove.

ons

TSR ranking to and indirect pnies. t for a 50.1% rp. Pro rata o 100% vestinbetter to TSR g




926 performancial year resed in the num

o

o a peers of

ranking

ng for a group.

o a peers of

ranking

ng for a group

o a peers of

ranking

ng for a group

o a peers of

ranking

ng for a group

ance rights aspectively to tmber of instrum

110

Contractual liof performanshares/righ

5 yea

5 yea

5 yea

5 yea

nd 1,183,929the Managingments for the

ifencehts

ars

ars

ars

ars

9 g e

For

per

sona

l use

onl

y


26 Share‐ The mo

OutstaForfeitExerciGrante

Outsta

Exerci

(1) Thto

Executi Grant

OptionDirect

The num


Outsta

Exerci


based paym

ovement of pe

anding at 1 Juted during thesed during thed during the

anding at 30 J

sable at 30 Ju

his includes th the performa

ive option pla

date / emplo

n grant to Exetors on 4 Augu

mber and wei


anding at 30 J

sable at 30 Ju


ments (contin

erformance sh

ly e period e period period (1)

une

une

he 925,926 peance rights fo

an

oyees entitled

ecutive ust 2006

ighted averag

ly e period e period period

une

une

olled Entities

nued)

hares and perf

Weighaver

exercise p2

$0$0$0$0

$0

$0

erformance rigr 2010.

d NumbInstrum

6,400

6,400

e exercised pr

Weigave

exercise

$

$

$

formance righ

htedrageprice2011

psh

0.310.360.870.54

0.39

0.74

ghts granted t

ber of ments Vesti

0,000 AchieNPATgrowtafter.years

0,000

rices of share

ghtederageprice2011

N

$1.92 2‐‐‐

$1.92 2

$1.92 2

hts on issue du

Number ofperformance hares/rights

2011

13,489,267(4,483,459)

(26,000)6,815,126

15,794,934

493,795

to Keith Gord

ng conditions

evement of foT 2006. 10% coth in NPAT fo. Options vests upon satisfyi

options are a

Number ofoptions

2011

2,133,333‐‐‐

2,133,333

2,133,333

uring the year

Weighave

exercise p2

$$

$

$

on in the 201

s

recast prospeompounding r 2 years there equally over ng each hurd

as follows:

Weighteaverag

exercise pri201

$1.9$1.9

$1.9

$1.9

r were as follo

hted rage price 2010

ps

$0.28 $0.29

‐ $0.40

$0.31

‐

11 financial ye

Con

ectus

e 3 le.

ed ge ice 10

92 92 ‐ ‐

92

92

111

ows:

Number ofperformance hares/rights

2010

10,809,790(1,002,672)

‐3,682,149

13,489,267

‐

ear in relation

tractual lifeof options

5 years

Number ofoptions

2010

4,266,666(2,133,333)

‐‐

2,133,333

2,133,333

)

n

For

per

sona

l use

onl

y


26 Share‐ Manage Grant

MISP 2

MISP 2

MISP 2

The num


Outsta

Exerci

(1) Wh

full (2) The


based paym

ement incent

date / emplo

2006

2007

2008

mber and wei


anding at 30 J

sable at 30 Ju

hile satisfying tvesting perioe weighted av


ments (contin

tive share plan

oyees entitled

ighted averag

ly e period e period (2) period

une

une (1)

the service reod has been saverage share p

olled Entities

nued)

n

d NumbInstrum

4,010

1,240

560

5,810

e exercised pr

Weigave

exercise

$$$

$

$

equirements uatisfied. price at date o

ber of ments Vesti

0,000 Servicentitlvestin



0,000

rices of MISPs

ghtederageprice2011

N

$0.73 3$0.61$0.64 (1

‐

$0.77 2

$0.77 1

under the MIS

of exercise wa

ng conditions

ce requiremenement after 2ng after 5 yea



s are as follow

Number ofMISP2011

3,190,000(26,250)

1,003,750)‐

2,160,000

1,600,000

SP, the shares

s $0.87.

s

nt. Partial ves2 years with furs.



ws:

Weighteaverag

exercise pri201

$0.7$0.6$0.6

$0.7

$0.6

are not consi

Co

sting ull

sting ull

sting ull

ed ge ice 10

Nu

72 3,61 (61 ‐

73 3,

61

dered exercis

112

ontractual lifeof MISP

10 years

10 years

10 years

umber ofMISP2010

,370,000(101,250)(78,750)

‐

,190,000

500,000

sable until the

eP

s

s

s

e

For

per

sona

l use

onl

y


26 Share‐ Employ Grant

ESOP 2

The num


Outsta

Exerci

(1) Th


based paym

yee share own

date / emplo

2011

mber and wei


anding at 30 J

sable at 30 Ju

e shares are n


ments (contin

nership plan

oyees entitled

ighted averag

ly e period e period period

une

une (1)

not considere

olled Entities

nued)

d NumbInstrum

26

26

e exercised pr

Weigave

exercise

$

$

$

d exercisable

ber of ments Vesti

6,976 Servicentitlend othey a

6,976

rices of ESOPs

ghtederageprice2011

N

‐$1.10

‐$1.09

$1.09

‐

until the full v

ng conditions

ce requiremenement after 1of the calendaare acquired.

s are as follow

Number ofESOP2011

‐(3,224)

‐26,976

23,752

‐

vesting period

s

nt. Full vesting1 year after thr year in whic

ws:

d has been sat

Co

g he ch

tisfied.

113

ontractual lifeof MISP

1 year

eP

r

For

per

sona

l use

onl

y


26 Share‐

The fairbased ois estimcomparthe fair Fair vashares

Fair va

Share ExerciExpectaveragOptionaveragExpectRisk‐frgovern

(1) The(2) The

The fairvalue w Modific On 13 Afollows

com

res

hol

if t

in c

wo

The inc Share

LTIP FYLTIP FYLTIP FY


based paym

r value of seron the fair valmated by consrable compan values at gra

alue of performs/rights

alue at grant d

price se price ted volatility (ge volatility) n life (expectege life) ted dividendsree interest ranment bonds)

e ESOP was es

e fair value of

r value assumwas determine

cation of long

August 2010 t:

mmencing wit

spect of perfo

lders of those

here is an abs

control will a

ould vest upon

remental fair

plan

Y2008 Y2009 Y2010


ments (contin

rvices receiveue of the LTIPidering the Conies. Market cnt date are as

mance

date

(weighted

ed weighted

s ate (based on )

stablished in N

f the FY10 LTI

mptions for uned at grant dat

g term incenti

the Board res

th the dividen

ormance share

e securities. P

solute change

utomatically

n a change of

value granted

Increaincrement

$0.0$0.0$0.0

olled Entities

nued)

ed in return foPs granted, meompany’s histconditions ares follows:

managemperson

2

$0

$0

40% ‐ 6

3 y4

4

November 20

securities pos

nvested MISPte in previous

ve plan

solved to ame

nd declared by

es and shadow

reviously, div

e in control of

vest. Previou

control.

d for the LTIPs

ase in tal value

02 05 09

or the perforeasured usingtorical daily ae detailed in n

Keymentnnel2011

managper

0.56 $

0.78$Nil

60%

ears 4.8%

4.5%

10.

st modificatio

s that continus years.

end the terms

y the Directo

w dividends in

idends were p

f the Company

usly, the Boar

s were as follo

rmance sharesg Monte Carlond monthly shnote 3(k)(v). T

Keygementrsonnel

2010

em

$0.40 (2)

$0.65$Nil

60% 40

4 years 5.0%

5.1%

n date is $0.4

ued to be exp

s of all existin

rs for the half

n respect of p

paid into the E

y, all LTI secu

rd retained a

ows:

s and rights io simulation ahare price moThe inputs use

Seniormployees

2011

$0.56

$0.78$Nil

0% ‐ 60%

3 years 4.8%

4.5%

9.

pensed have

ng and future

f year ended 3

performance r

Emeco Employ

rities on issue

discretion as

issued duringnalysis. Expeovement and ed in the me

Senior employees

2010

$0.40 (2)

$0.65 $Nil

60%

4 years 5.0%

5.1%

not changed

e grants of LT

30 June 2010

rights would b

yee share pla

e at the time o

s to whether

114

the year arected volatilityan analysis ofasurement of

ESOP

20

$0.96 ‐ $1.

$0.96 ‐ $1.$N

n

1 yen

n

since the fair

I securities as

0, dividends in

be paid to the

n trust; and

of the change

LTI securities

e y f f

P (1)

11

20

20Nil

n/a

ear n/a

n/a

r

s

n

e

e

s

For

per

sona

l use

onl

y


26 Share‐ Employ In AUD Perfor Option MISP ESOP

Total eemplo

(1) Incl

expdoe


based paym

yee expenses

D

rmance shares

ns

expense recogoyee costs (1)

uded in shareenses as a rees not meet th


ments (contin

s/rights

gnised as

e based emploesult of the shhe required pe

olled Entities

nued)

2

1,

1,

oyee expenseshares, rights oerformance hu

Consolida2011

,954,633

‐

8,400

25,942

,988,975

s for the year or options beurdles or serv

ted2010

830,485

‐

65,644

‐

896,129

is the write being forfeited vice requireme

back of prior yduring the yeents.

year share basear because t

115

sed employeethe employee

e e

For

per

sona

l use

onl

y


27 Share c

Share c

631,23

Acquis

Share oOn 4 APlan. Tperiod options

Terms a OrdinaThe hoto one In the entitled ReserveThe resunder tvestingshares ForeignThe trastatem HedginThe hehedging Share bThe shaunder i


capital and r

capital

37,586 (2010

ition reserve

options August 2006 these options of the options have an exer

and condition

ary shares lders of ordinvote per shar

event of windd to any proce

e of own sharserve of own the LTIP. Shag requirement(2010: 13,409

n Currency Traanslation reseents of foreig

ng reserve edging reserveg instruments

based paymenare based payts employee s


reserves

0: 631,237,58

the Company had a fair vans. At 30 Jurcise price of

ns

nary shares arre at sharehold

ding up of theeds of liquida

res shares compres that are ft are transferr9,000) in satis

anslation Reserve comprisegn operations.

e comprises ts related to he

nt reserve yment reserveshare/option

olled Entities

86 ) ordinary

issued 6,400alue at grant ne 2011 4,26$1.925 and ex

re entitled to ders' meeting

he Company, ation.

rises of shareorfeited undered to the resfaction of the

serve es all foreign

the effective edged transac

e comprises tplans (refer n

shares, fully

0,000 optionsdate of $1.266,667 of thexpired on 4 Au

receive dividegs. Shares hav

the ordinary

es purchased er the Compaserve. As at 3e employee sh

currency diff

portion of thctions that hav

the expenses note 3(k)(v)).

2

$'

paid 6

6

over ordinarmillion and wissued optiougust 2011.

ends as declave no par valu

shareholder

on market tony’s MISP due30 June 2011 hare plans.

erences arisin

he cumulativeve not yet occ

incurred from

011

'000

686,191

(75,887)

610,304

Consolidat

ry shares undwere to be rens had been

red from timeue.

ranks after a

satisfy the vee to employeethe Company

ng from the t

e net change curred.

m the issue of

2010

$'000

685,465

(75,887)

609,578

ted

der an Employecognised oveforfeited. T

e to time, and

all other credi

esting of shares not meetiny held 18,300

translation of

in fair value

f the Compan

116

yee Incentiveer the vestinghe remaining

d are entitled

itors are fully

res and rightsng the service0,000 treasury

f the financial

of cash flow

ny’s securities

e g g

d

y

s e y

l

w

s

For

per

sona

l use

onl

y


28 Commit

(a) Op

Fu

n

an

Le

B

M

Thco Dcole

(b) Ca

Thre

29 Contin

GuaranThe Grovarying

30 Contin

The Comregardivalue oentitled

31 Notes t

(i) ReFodestafo

Ca


tments

perating lease

uture non‐ca

ot provided f

nd payable:

ess than one

etween one a

More than five

he Group leaonjunction wi

uring the yeaontract recogeases (2010: $

apital commit

he Group hasental fleet ass

gent liabiliti

ntees oup has guar expiry dates

gent assets

mpany has lodng the deductf the deductiod to the refun

to the statem

econciliation oor the purposeeposits at call,atements of llows:‐

ash assets


e commitmen

ncellable ope

for in the fina

year

and five years

e years

ases the majoth the Group’

ar ended 30 Jnised during t$8,115,000).

tments

s entered intosets, in the am

ies

ranteed the rout to 30 Jun

dged prior yeatibility of conton is $17,063,d and recogni

ment of cash

of cash es of the stat, net of outstacash flows is

olled Entities

nts

erating leases

ancial statem

s

ority of their ’s internal and

June 2011 anthe year) was

o commitmenmount of $147

repayments oe 2013.

ar income taxtract intangib,000 resultingition is pendin

h flows

tements of caanding bank os reconciled t

s

ents

operating prd external adv

n amount of $s recognised a

nts with certa7,637,000 (201

of $342,500 (

x return amenbles. This affecg in a refund ong a legislative

ash flow, cashoverdrafts. Cato the relate

2011

$'000

2,91

5,93

4,52

13,37

Con

remises. Thevisors and are

$5,265,000 (ias an expense

ain suppliers 10: $32,130,00

2010: $342,5

dments with tcts income taxof $5,119,000.e review by th

h includes casash as at the eed items in t

N

2010

$'000

4 4,148

6 7,040

5 4,052

5 15,240

solidated

e terms of thdependent u

nclusive of ane in profit or lo

for purchases00) payable w

00) in relatio

the ATO due tx years 1 July The Companhe Australian B

sh on hand anend of the finahe statement

Note 2

$

16

8

0

2

0

he lease are nupon market fo

n onerous oposs in respect

s of fixed asswithin one yea

on to office p

to the change2004 to 30 Juy is of the opiBoard of Taxa

nd at bank anancial year asts of financia

2011

$'000

5,502

Consolida

117

negotiated inorces.

perating leaset of operating

ets, primarilyar.

premises with

e in legislationune 2007. Theinion that it isation.

nd short termshown in theal position as

2010

$'000

5,239

ated

n

e g

y

h

n e s

m e s F

or p

erso

nal u

se o

nly


31 Notes t

(ii) Re

N

A

A

N

as

ac

N

(iii) No

Du(20


to the statem

econciliation o

et profit

dd/(less) item

Net profit o

Loss on sale

dd/(less) non

Amortisatio

Depreciation

Amortisatio

(Gain)/loss o

Unrealised f

Impairment

Write down

Impairment

Cost of sales

Doubtful de

Provision fo

FCTR of disc

Restructure

Other non‐c

Equity settle

(Decrease)/i

(Decrease)/i

et cash provi

ssets/(liabilit

cquired

(Increase)/d

(Increase)/d

Increase/(de

Increase/(de

et cash provi

on‐cash investuring the year010: $Nil). Fin


ment of cash

of net profit to

ms classified

on sale of non

e of discontin

n‐cash items:

on

n

on of borrowi

on ineffective

foreign excha

losses on pr

on inventory

of goodwill

s equipment

bt write back

or doubtful de

continued op

provisions re

cash items

ed share base

increase in in

increase in de

ided by opera

ies) adjusted

ecrease in tr

ecrease in in

ecrease) in pa

ecrease) in pr

ided by opera

ting and finanr there were $nance lease ac

olled Entities

h flows (cont

o net cash pro

as investing/

n‐current asse

nued operatio

ng costs

hedge

nge (gain)/lo

operty, plant

y

on rent

k

ebts

erations disp

ecognised/(re

ed payments

come taxes p

eferred taxes

ating activitie

for assets an

ade and othe

ventories

ayables

rovisions

ating activitie

cing activities$21.2 millioncquisitions are

tinued)

ovided by ope

/financing act

ets

ons

oss

t & equipmen

posed

eversed)

payable

es before cha

nd (liabilities)

er receivables

es

s in acquisitione not reflecte

erating activiti

tivities:

nt

nge in

)

s

ns of plant andd in the cash f

es

Note

13

7

7

d equipment flow statemen

2011

$'000

49,609

(2,598)

424

258

124,663

2,066

(392)

80

4,955

841

‐

1,579

(3,500)

9,333

(420)

(671)

(428)

(1,989)

1,370

2,867

188,047

2,483

34,990

(9,898)

(691)

214,931

Consolid

by means of nts.

118

2010

$'000

(49,313)

(505)

‐

295

107,777

2,099

1,604

(716)

18,584

10,467

36,951

5,044

1,834

‐

5,371

3,053

‐

901

(7,312)

3,247

139,381

(4,993)

5,911

7,629

(466)

147,462

ated

finance leasee

For

per

sona

l use

onl

y


32 Contro (a) Particul

Pa Co Notes(i)

(ii)

(iii) (iv)

(v) (vi)

(*)

(b) Acquisi

There w (c) Acquisi

There w


olled entities

lars in relatio

arent entity Emeco Ho

ontrolled entiPacific CusEmployee Emeco Pty Em

Emeco (UK Em

PTE

E

s Emeco (ULimited is InternatioEmeco EqTractor Codissolved PT Prima TEmeco Intthe NetheMachineryEuro MachEmeco CaCanada LtDiscontinu

tion of entitie

was no acquisi

tion of entitie

was no acquisi


s

n to controlle

ldings Limiteditiesstodians Pty LtShare Ownery Limited meco InternatEmeco SaleEmeco Part

K) Limited meco EquipmT Prima Traktmeco InternaEmeco EuroEuro Machi

meco Canada

K) Limited wathe parent en

onal Europe BVuipment (USAompany LLC on 3 NovembTraktor IndoNternational Euerlands. Emecy BV. hinery BV wasanada Ltd wasd acquired Rivued operation

es in the curre

ition of entitie

es in the prior

ition of entitie

olled Entities

ed entities

d

td as trustee fship Plan Trus

tional Pty Lims Pty Ltds Pty Ltd

ment (USA) LLCor IndoNusa (tional Europeope BV (*)inery BV (*) Ltd

as incorporatentity of EmecoV and Emeco CA) LLC was incwas acquireder 2009.

Nusa was incorurope BV and co Internation

s acquired on s incorporatever Valley Equns at 30 June 2

ent year

es this financi

r year

es in the prior

for Emecost

mited

C (*)(PTI)e BV (*)

ed in and carro Equipment Canada Limitecorporated in d by Emeco

rporated in anEmeco Europnal Europe BV

4 January 200ed and carriesuipment Com2011 and 30 J

al year.

r year.

Note In

(i) Un(ii) U(iii)(iv) N(iv) N(v) N(vi)

ries on busine(USA) LLC, PTed. and carries onEquipment (U

nd carries on bpe BV were incV is the paren

07 and carriess on businesspany Ltd, whiune 2010.

Countryof

ncorporation

AustraliaAustraliaAustraliaAustraliaAustralia

nited KingdomUnited States Indonesia

Netherlands Netherlands Netherlands Canada

ess in the UnitT Prima Trakto

n business in tUSA) LLC on

business in Indcorporated innt entity of Em

s on business in Canada. ch operates w

Owners2011 %

100 100 100 100 100

m 100 100 100 100 100 100 100

ted Kingdom.or IndoNusa (“

the United St4 January 2

donesia. n and carries omeco Europe

in the NetherOn 2 August

within Emeco

119

ship Interest2010%

100100100100100100100100100100100100

. Emeco (UK)“PTI”), Emeco

ates. Wildcat008 and was

on business inBV, and Euro

rlands. 2005 EmecoCanada Ltd.

) o

t s

n o

o

For

per

sona

l use

onl

y


33 Key ma

The follotherw Non‐Ex

A N BreP B JohJ R CahR P BisP I Rich ExecutK D Go

Key ma The key

In AUD

Short‐t

Other

Post‐e

Termin

Equity


anagement p

lowing were kise indicated w

xecutive Direc

ennan (Chairphnston hill hop hards

tive Director ordon (Manag

anagement pe

y managemen

D

term employ

long term be

mployment b

nation benefi

compensatio


personnel d

key managemwere key man

ctors

person)

ing Director)

ersonnel com

nt personnel c

ee benefits

enefits

benefits

ts

on benefits

olled Entities

isclosure

ment personnenagement per

pensation

ompensation

el of the Groursonnel for th

Execut

S G GoD O TilH A ChParts)M A TuM R KiA G HaI M TesG GadDeveloC MosMarch

is as follows:

201

6,33

24

21

1,38

8,18

up at any timee entire perio

tives

obby (Chief Finbrook (Generhristie‐Johnst

urner (Generarkpatrick (Genalls (General Mstrow (Presidedomsky (Genopment) ceasessman (Presi2011

11 2

7,256 4,

‐

4,774

2,500

86,534

1,064 5,

Consolidated

e during the red.

nancial Officerral Manager Soon (General M

l Manager Gloneral ManageManager Austrent North Amneral Managed employmedent Directo

2010

,597,896

‐

308,860

‐

462,767

,369,523

d

eporting perio

r) outh East AsiaManager Aus

obal Asset Grer Corporate Sralian Rental)

merica) ger Strategy nt 25 March 2or Indonesia)

120

od and unless

a) stralian Sales

oup) Services)

and Busine2011 appointed 1

s

&

ess

11

For

per

sona

l use

onl

y


33 Key ma RemunThe comfrom th IndividuInformadisclosuReport Apart fror the Directo

Equity IShares The CoDirectooption loan to Shares The Comof the Cagainst AASB 2


anagement p

eration of keympensation dhe Group in re

ual Directors ation regardiures as requirsection of the

rom the detaiGroup since rs’ interests e

Instruments and rights ovmpany has anrs and emploin accordancefacilitate the

and rights ovmpany has anCompany. Thea peer groupShare Based


personnel d

y managemendisclosed abovelation to thei

and Executiveing individuared by Corpoe Directors’ re

ils disclosed inthe end of

existing at yea

ver equity instn ongoing maoyees of the Ce with AASB 2purchase of t

ver equity instn ongoing lone shares vest p of 97 CompPayments.

olled Entities

isclosure (co

nt personnel ve representsr services rend

es compensatal Directors orations Regueport on pages

n this note, nothe previous r‐end.

truments grananagement inCompany. The2 Share Basedthe Shares und

truments grang term incentafter 3 years panies. The s

ontinued)

by the Groups an allocationdered to the C

tion disclosurand Executivlations 2M.3.s 33 to 50.

o Director ha financial yea

nted as compncentive sharee shares vest d Payments. der the mana

nted as comptive plan in w depending ushares have b

p n of the key mCompany.

res ves compens.03 and 2M.6

s entered intoar and there

ensation unde plan in whicover a five yThe Compangement incen

ensation undwhich shares hpon the Combeen accounte

management

sation and s6.04 are prov

o a material cwere no ma

er managemech shares havear period any has providentive share pla

er long term ave been grapany’s total sed for as an o

personnel’s c

some equity vided in the R

contract with aterial contra

ent incentive ve been grantnd are accouned a ten yearan.

incentive planted to certashareholder roption in acc

121

compensation

instrumentsRemuneration

the Companyacts involving

share plan ted to certainnted for as anr interest free

n in employeeseturn rankingordance with

n

s n

y g

n n e

s g h

For

per

sona

l use

onl

y


33 Key ma

The moplan, pethe Comparties,interest

2011 S

Directo

HamishStephe

David T

Michae

Ian Tes

Michae

Anthon

Christo

Guido G

Alexand

Keith G

2010 S

Directo

HamishStephe

David T

Michae

Ian Tes

Michae

Anthon

Christo

Guido G

Alexand

Dividenand is r

(1)

(2)

(3)

(4)

(5)

n/


anagement p

ovement durinerformance smpany held, d, is as followsts over the sh

hares

ors & Executiv

h Christie‐Johnn Gobby

Tilbrook

el Turner

trow

el Kirkpatrick

ny Halls

opher Mossma

Gadomsky (5)

der Brennan

Gordon

hares

ors & Executiv

h Christie‐Johnn Gobby

Tilbrook

el Turner

trow

el Kirkpatrick

ny Halls

opher Mossma

Gadomsky (5)

der Brennan

nds paid undeeflected in iss

Included iat 30 JuneIncluded inJune 2011Included iJune 2011Mr Mossm2011 wereMr GadomMarch 201

/a Not applic


personnel d

ng the reportihares under tdirectly, indirs. These plansares. Director

Hel

1 July

ves

nston 99 88

78

68

94

65

16

an (4)

50

Hel

1 July

ves

nston 99 88

78

68

94

65

16

an (4)

50

er the Managsued capital.

n this balancee 2010 and 30 n this balance1 of 150,000 an this balance1 of 500,000. man became e granted as cmsky become 11. cable as not in

olled Entities

isclosure (co

ng year in thethe long termectly or benes have been rs or Executive

d at Gran

y 2010 compe

95,495 81,982

84,685

85,586

40,541

50,450

62,162

n/a

‐

00,000

‐ 1,

d at Gran

y 2009 compe

95,495 81,982

84,685

85,586

40,541

50,450

62,162

n/a

n/a

00,000

ement Incent

e of equity insJune 2011 of e of equity insnd nil respecte of equity in

a key manageompensation a key manag

n a position of

ontinued)

e number of sm incentive pleficially, by eacombined fores with no ho

nted as

ensation Exe

265,913 420,556

355,029

315,199

‐

250,000 (17

268,056

n/a

232,710

‐

,183,929

nted as

ensation Exe

‐ ‐

‐

‐

‐

‐

‐

n/a

n/a

‐

tive Share Pla

struments Mef 500,000 and struments Mrtively. nstruments M

ement person prior to Mr Mgement perso

f key managem

shares issued an and matchach key manar the purposeldings are not

Forfei

rcised laps

‐ ‐ (72

‐ (48

‐ (48

‐ (48

6,000) (24

‐

n/a

‐ (232

‐

‐

Forfei

rcised laps

‐ ‐

‐

‐

‐

‐

‐

n/a

n/a

‐

an are paid a

essrs Christie‐J300,000 respKirkpatrick h

r Brennan he

nnel on 11 MMossman becoonnel on 24 M

ment personn

under the mahing employeagement perses of this notet included in t

Held

ited/ 30 Jun

ed 2011

‐ 1,261,4

,000) 1,230,5

,000) 1,091,7

,000) 952,7

,000) 892,5

,000) 700,4

‐ 430,2

n/a 171,6

,710)

‐ 500,0

‐ 1,183,9

Held

ited/ 30 Jun

ed 2010

‐ 995,4

‐ 881,9

‐ 784,6

‐ 685,5

‐ 940,5

‐ 650,4

‐ 162,1

n/a

n/a

‐ 500,0

gainst the em

Johnston andectively. eld MISP shar

ld MISP share

March 2011. Toming a key mMay 2010 and

el at time of c

anagement inee share owneson, includinge as they repthe following t

at Ve

ne du

1 the

408 (1) 538 7

714 5

785 5

541 (1) 35

450 (2) 17

218

667

n/a

000 (3)

929

at Ve

ne du

0 the

495 (1) 982

685

586

541 (1)

450 (2)

162

n/a

‐

000 (3)

mployees outs

d Testrow held

res at 30 June

es at 30 June

The shares hemanagement pd ceased to b

compilation.

122

centive shareership plan intheir related

present directtables.

ested Ves

uring at 30

e year 20

‐ 78,000 7

52,000 5

52,000 5

52,000 35

76,000

‐

‐

‐

‐ 50

‐

ested Ves

uring at 30

e year 20

‐ ‐

‐

‐

‐

‐

‐

‐

‐

‐ 50

standing loan

d MISP shares

e 2010 and 30

2010 and 30

ld at 30 Junepersonnel. be one on 25

e n d t

sted

0 June

11

‐ 78,000

52,000

52,000

52,000

‐

‐

‐

‐

00,000

‐

sted

0 June

10

‐ ‐

‐

‐

‐

‐

‐

‐

‐

00,000

n

s

0

0

e

5

For

per

sona

l use

onl

y


33 Key ma

The moincentivincludinfollowin

2011 Rights

Directors &

Hamish Chr

Stephen Go

David Tilbro

Michael Tur

Ian Testrow

Michael Kir

Anthony Ha

Christopher

Keith Gordo

2010 Rights

Directors &

Hamish Chr

Stephen Go

David Tilbro

Michael Tur

Ian Testrow

Michael Kir

Anthony Ha

Christopher

(1) M(2) M

Gegr

n/a No


anagement p

ovement durive plan in thng their relateng tables.

s

& Executives

ristie‐Johnsto

obby

ook

rner

w

kpatrick

alls

r Mossman (1

on (2)

s

& Executives

ristie‐Johnsto

obby

ook

rner

w

kpatrick

alls

r Mossman (1

r Mossman ber Gordon waseneral Meetinant made undot applicable a


personnel d

ing the reporhe Company ed parties, is

Held a

1 July 20

on 203,

300,

281,

240,

239,

185,

166,1)

Held a

1 July 20

on

1)

ecame a key ms approved 92ng on 16 Noveder the FY10 Las not in a po

olled Entities

isclosure (co

rting year in held, directlyas follows.

at Grant

010 compen

,704

,926

,481

,741

,077 2

,185

,667

n/a

‐ 9

at Grant

009 compen

‐ 2

‐ 3

‐ 2

‐ 2

‐ 2

‐ 1

‐ 1

‐

management 25,926 perforember 2010. LTI plan. sition of key m

ontinued)

the number y, indirectly Directors or

ted as

nsation Exer

‐

‐

‐

‐

269,393

‐

‐

n/a

925,926

ted as

nsation Exer

203,704

300,926

281,481

240,741

239,077

185,185

166,667

n/a

personnel onmance rights,Although thi

management

of performanor beneficialExecutives wi

Forfe

rcised laps

‐

‐

‐

‐

‐

‐

‐

‐

‐

Forfe

rcised laps

‐

‐

‐

‐

‐

‐

‐

‐

11 March 20, approved bys grant was a

personnel at t

nce rights issly, by each ith no holding

Held

eited/ 30 J

sed 20

‐ 203

‐ 300

‐ 281

‐ 240

‐ 508

‐ 185

‐ 166

‐ 177

‐ 925

Held

eited/ 30 J

sed 20

‐ 203

‐ 300

‐ 281

‐ 240

‐ 239

‐ 185

‐ 166

‐

11. y shareholderspproved and

time of comp

sued under thkey managemgs are not in

d at

June

11 t

3,704

0,926

1,481

0,741

8,470

5,185

6,667

7,586

5,926

d at

June

10 t

3,704

0,926

1,481

0,741

9,077

5,185

6,667

n/a

s at the Compdisclosed in F

ilation.

123

he long termment person,cluded in the

Vested

during at

the year

‐

‐

‐

‐

‐

‐

‐

‐

‐

Vested

during at

the year

‐

‐

‐

‐

‐

‐

‐

‐

pany’s AnnualFY11, it was a

m , e

Vested

t 30 June

2011

‐

‐

‐

‐

‐

‐

‐

‐

‐

Vested

t 30 June

2010

‐

‐

‐

‐

‐

‐

‐

‐

l a

For

per

sona

l use

onl

y


33 Key ma OptionsThe moeach fo

2011

Directo

L C Free

R L C Ad

2010

Directo

L C Free

R L C Ad

(1) Th


anagement p

s over equity ovement durirmer key man

rs & Executive

edman

dair

rs & Executive

edman

dair

he options issu


personnel d

instruments ng the reportnagement per

Held at

1 July 20

s

1,600,00

533,33

Held at

1 July 200

s

3,200,00

1,066,66

ued to Mr Fre

olled Entities

isclosure (co

granted as coting year in thrson, including

t Granted a

10 compensat

00

34

t Granted a

09 compensat

00

67

edman and M

ontinued)

ompensation he number og their related

as

tion Exercised

‐ ‐

‐ ‐

as

tion Exercised

‐ ‐

‐ ‐

Mr Adair expir

under a sharef options heldd parties is as

Options

Forfeited C

‐

‐

Options

Forfeited C

(1,600,000)

(533,333)

ed 5 years aft

e option progd, directly, infollows:

He

Other 30

Changes 20

‐ 1,6

‐ 5

He

Other 30

Changes 20

‐ 1,6

‐ 5

ter their date

gramme ndirectly or be

eld at Vest

June duri

11 (1) the y

600,000

533,334

eld at Vest

June duri

010 the y

600,000

533,334

of issue on 4

124

eneficially, by

Vested an

ted exercisab

ng at 30 Jun

year 2011

‐ 1,600,00

‐ 533,33

Vested an

ted exercisab

ng at 30 Jun

year 2010

‐ 1,600,00

‐ 533,33

August 2011.

y

nd

le

e

0

3

nd

le

e

0

3

For

per

sona

l use

onl

y


33 Key ma Equity hThe shatheir peinclude

2011

Directo

K D Go

A N Br

P B Joh

J R Cah

R P Bis

P I Rich

Execut

D O TilM A Tu

S G Go

I M Tes

H A Ch

M R Ki

A G Ha

C Mos

(1) Ton/a No


anagement p

holdings and ares in the Coersonally‐relad in these tab

ors

ordon

ennan

hnston

hill

shop

hards

tives

brookurner

obby

strow

hristie‐Johnst

rkpatrick

alls

sman

otal does not iot applicable a


personnel d

transactions ompany held, ated entities ables.

on

include sharesas not in a po

olled Entities

isclosure (co

directly, indiat year end,

Held at

1 July 201

Ordinary Shares

650,0

1,081,7

100,0

120,0

300,0

40,0

3,300,0

5,500,0

470,0

337,3

63,0

35,7

n

s held under tsition of key m

ontinued)

rectly or benis as follows

10

y (1) Pu

000

700

000

000

000

000

000 000

000

‐

399

000

773

n/a

the Company’management

eficially, by e. Directors o

urchases

‐

‐

‐

‐

‐

‐

‐ ‐

‐

‐

‐

‐

‐

‐

’s share planspersonnel at t

ach key manaor Executives

Sales

(2,500,0

(87,0

(250,0

(63,0

(15,7

as these are dtime of comp

agement perswith no hold

He

30 Jun

Ord Sh

‐

‐ 1

‐

‐

‐

‐

‐ 3000) 3

000)

‐

000)

000)

773)

‐

disclosed elseilation.

125

son, includingdings are not

ld at

ne 2011

inary ares (1)

650,000

,081,700

100,000

120,000

300,000

40,000

,300,000 ,000,000

383,000

‐

87,399

‐

20,000

12,500

ewhere.

g t

For

per

sona

l use

onl

y


33 Key ma

2010

Directo

K D Go

A N Br

P B Joh

J R Cah

R P Bis

L C Fre

R L C A

P I Rich

Execut

D O TilM A Tu

S G Go

I M Tes

H A Ch

M R Ki

A G Ha

Loans Other tentered


anagement p

ors

ordon

ennan

hnston

hill

shop

eedman

Adair

hards

tives

brookurner

obby

strow

hristie‐Johnst

rkpatrick

alls

than the loan d into any loan


personnel d

on

issued undern arrangemen

olled Entities

isclosure (co

Held at

1 July 2009

Ordinary Shares

n/

1,081,70

100,00

120,00

n/

20,000,00

6,300,00

n/

3,300,00

5,500,00

343,00

300,00

93,00

15,77

r the managents with the G

ontinued)

9

(1) Pur

/a

00

00

00

/a

00

00

/a

00 00

00

‐

00

00

73

ement incentivGroup.

rchases

650,000

‐

‐

‐

300,000

‐

‐

40,000

‐ ‐

127,000

‐

37,399

‐

20,000

ve share plan

Sales

(30,00

n no specified

Held

30 June

Ordi Sha

‐

‐ 1,

‐

‐

‐

‐

‐

‐

‐ 3, ‐ 5,

‐

‐

‐

00)

‐

d Director or E

126

d at

e 2010

nary res (1)

650,000

081,700

100,000

120,000

300,000

n/a

n/a

40,000

300,000 500,000

470,000

‐

337,399

63,000

35,773

Executive has

s

For

per

sona

l use

onl

y


33 Key ma Other kA numbthem h A numband conthan thdirecto The aggrelated

Key m

person

related

Mr P R

‐ Kanga

Limite

Mr M A

Mr D O

‐ Ivy St

(1) PT P

a sutran201guaagaGroLim

(2) TheDem$37manhas to t


anagement p

key managember of key maving control

ber of these enditions of thehose availabler related entit

gregate value parties were

anagement

n and their

d parties

Richards

aroo Resourc

ed

A Turner

O Tilbrook

treet Unit Tru

Prima Traktorubsidiary of Knslated at an A1 was A$1,13rantee and deinst outstandup’s Non‐Exeited. Group rentemol Investmen,810 (2010: $nagement pera significant he relocation


personnel d

ment personneanagement por significant

entities transae transactionse, or which mties on an arm

of transactioas follows:

Tran

Rent

ces eart

equi

Rent

East

ust

r IndoNusa (reKangaroo ResoAUD/USD ave32,832 translaeposit of A$72ding amountsecutive Direct

ed its former nts Pty Ltd as$248,602). Trsonnel, Mr Dinfluence oveof the office t

olled Entities

isclosure (co

el transactionpersons, or thinfluence ove

acted with ths with managmight reasonam’s length bas

ns recognised

nsaction

tal of heavy

hmoving

pment

tal of 510 Gre

ern Highway

efer note 32) ources Limiteerage exchangted at the 30 24,422 and A$. The rental tors, Mr Pete

premises at s trustee of tThe price wasDavid Tilbrooker the Trust. Oto 71 Walters

ontinued)

ns heir related per the financia

e Company oement personably be expecis.

d during the y

Note

(1)

eat(2)

rents heavy eed for an annge rate of 0.98 June 2011 AU$85,144 respecontract wa

er Richards, i

510 Great Eathe Ivy Streets negotiated k and Mr MichOn the 18 Aus Drive, Osbor

arties, hold pal or operating

or its subsidians and their rected to be av

year related t

2011

$'000

3,971

37

Transacti

year e

30 J

earthmoving enual considera872 for FY11.UD/USD rate ectively from s negotiated s a Non‐Exec

astern Highwat Unit Trust (“on an arms

hael Turner, hgust 2010 thene Park in We

positions in otg policies of th

ries in the repelated partiesailable, on sim

o key manage

2010

$'000

‐

249

on value

nded

une

equipment to ation of A$3,9 The balanceof 1.0724. ThKangaroo Reson an arms cutive Directo

ay, Redcliffe i“Trust”) for alength basis.

hold units in the Group termiestern Austral

ther entities hose entities.

porting periods were no momilar transac

ement person

2011

$'000

1,133

‐

Ba

outsta

at 3

PT Mamahak970,718 (incle outstanding he Group alsosources Limitelength basis.or of Kangaro

in Western Aan annual con. Two of thehe Trust and inated this aglia.

127

that result in

d. The termsre favourabletions to non‐

nnel and their

2010

$'000

‐

‐

lance

anding as

0 June

k Coal Mining,usive of VAT)as at 30 June

o holds a banked as security One of the

oo Resources

Australia fromnsideration of Group’s keyeach of themgreement due

n

s e ‐

r

‐

‐

, ) e k y e s

m f y m e

For

per

sona

l use

onl

y


34 Other SubsidiLoans abetweebetweecharged UltimatEmeco

35 Subseq

Subsequ

36 Earning Basic ea

The calcsharehooutstand The calcshares. Profit at `

Profit/(l


related part

aries are made beten the differeen subsidiariesd at LIBOR plu

te parent entiHoldings Limi

uent events

uent to 30 Jun

gs per share

arnings per shculation of baslders of $49ding less any t

culation of “ba

ttributed to o

oss) for the pe


y transactio

tween whollynt wholly ows within a comus a relevant a

ity ted is the ulti

ne 2011 the Co

are sic earnings p9,699,000 (20treasury share

asic” earnings

rdinary share

riod

olled Entities

ns

y owned subswned entities mmon taxablearms length m

mate parent e

ompany decla

er share at 30010: ($49,313es for the yea

s per share at

eholders

Continu

operat

$'00

49

sidiaries of thof the Compe jurisdiction

mark up.

entity of the G

ared a 3.0 cen

0 June 2011 w3,000)) and r ended 30 Ju

30 June 2010

2011

uing Disconti

ions operati

00 $'000

9,974 (365

he Group for any have no are interest f

Group.

t fully franked

was based on ta weighted

une 2011 of 61

0 has been re

1

nued

ons Total

0 $'000

) 49,609

Conso

capital purchfixed date offree. Cross b

d dividend pay

the profit/(losaverage num

12,938,470 (20

stated to inclu

Continuing D

operations

$'000

12,300

lidated

hases. Loansf repayment. border subsidi

yable 30 Sept

ss) attributabmber of ord010: 617,829,

ude the effec

2010

Discontinued

operations

$'000

(61,613)

128

s outstanding Loans madeiary loans are

ember 2011.

le to ordinarydinary shares,139).

cts of treasury

Total

$'000

(49,313)

g e e

y s

y

For

per

sona

l use

onl

y


36 Earning Weighte

Issued o

Effect o

Weight

Diluted The calcsharehooutstand630,152 The calcof treasuat 30 Jun Profit at

Profit/(l

shareho

Weighte

Weight

Effect o

Effect o

Weight

ComparThe aveoptions


gs per share

ed average nu

ordinary shar

of treasury sh

ed average n

earnings per culation of dillders of $49ding less any,701).

culation of “diury shares anne 2010.

ttributed to o

oss) attributed

lders (basic)

ed average nu

ed average n

of the vesting

of treasury sh

ed average n

ative informarage market was based on


(continued)

umber of ordi

res at 1 July

hares purchas

umber of ord

share uted earnings9,974,000 (20y treasury sh

iluted” earnind performanc

rdinary share

d to ordinary

umber of ordi

umber of ord

of contingen

hares purchas

umber of ord

ation value of the n quoted mark

olled Entities

nary shares

sed during th

dinary shares

s per share at010: ($49,313ares during

ngs per share ce shares/righ

eholders (dilut

Contin

operat

$'00

49

nary shares (d

dinary shares

ntly issuable s

sed during th

dinary shares

Company’s sket prices for t

e year

s at 30 June

t 30 June 2013,000)) and the financial

(“EPS”) at 30 hts. The resta

ted)

201

nuing Discont

tions operat

00 $'00

9,974 (36

diluted)

s at 30 June

shares

e year

s (diluted) at

shares for thethe period du

11 was based a weighted year ended

June 2010 haatement has a

11

tinued

tions Total

00 $'000

5) 49,609

Conso

30 June

e purpose of uring which th

201

'000

631

(18

612

C

on profit/(losaverage num30 June 201

ave been restan anti‐dilutiv

Continuing

operations

$'000

9 12,300

olidated

201

'000

631

17

(18

630

C

calculating the options wer

11 20

0 '0

1,238 63

8,300) (1

2,938 61

Consolidated

ss) attributablmber of ord11 of 630,58

tated to includve effect on th

2010

Discontinued

operations

$'000

(61,613)

11 20

0 '0

1,238 63

7,642 1

8,300) (1

0,580 63

Consolidated

he dilutive efre outstandin

129

010

00

31,238

13,409)

17,829

le to ordinarydinary shares80,189 (2010:

de the effectshe Group EPS

Total

$'000

(49,313)

010

00

31,238

12,324

13,409)

30,153

ffect of shareg.

y s :

s S

e For

per

sona

l use

onl

y


37 Parent

As at anwas Eme

Result o

Profit/(

Other c

Total co

Financia

Current

Non‐cu

Total as

Current

Total lia

Total eq

Share c

Share b

Reserve

Retaine

Total eq

Parent The padebts in Further


entity disclo

d throughouteco Holdings L

of the parent

(Loss) for the

comprehensiv

omprehensiv

al position of

t assets

rrent assets

ssets

t liabilities

abilities

quity of the p

apital

based paymen

e for own sha

ed earnings

quity

entity guaranrent entity han respect of it

r details of the


osure

t the financialLimited.

t entity

period

ve income

e income for

f parent entit

parent entity

nt reserve

ares

ntees in respeas entered ins subsidiaries

e Deed of Cros

olled Entities

l year ending

the period

ty at year end

y comprising o

ect of debts ofnto a Deed of.

ss Guarantee

30 June 2011

d

of:

f its subsidiarf Cross Guara

and the subsi

1 the parent c

2011

$'000

118,

1

690,7

690,8

5,9

5,9

686,1

6,4

(10,7

3,0

684,9

C

ries antee with th

idiaries subjec

company (the

201

$'00

509 (19

‐

‐

53

708 653

861 653

22 1

22 1

191 685

462 2

715) (6

001 (29

939 65

Company

e effect that

ct to the deed

e “Company”)

10

00

9,009)

‐

‐

232

3,314

3,546

1,537

1,537

5,465

2,728

6,247)

9,937)

2,009

the Compan

d, are disclose

130

of the Group

ny guarantees

ed in Note 38.

p

s

For

per

sona

l use

onl

y


38 Deed of

Pursuanbelow aFinancia It is a coGuarantthe evenwinding months that the The subs Eme Eme A consothe Comparties t

Stateme

Revenu

Cost of

Gross p

Operati

Finance

Finance

Profit b

Income

Net los

Other c

Total co

Retaine

Dividen

Retaine

Attribu

Equity h

Profit/(


f cross guara

t to ASIC Clasare relieved fal reports, and

ondition of thtee. The effecnt of windingup occurs unany creditor Company is w

sidiaries subjeeco Pty Ltd eco Internatio

lidated statemmpany and coto the Deed of

ent of compre

e

sales

profit

ing expense

e income

e costs

before tax

e tax expense

s after tax

comprehensiv

omprehensiv

ed earnings at

nds recognise

ed earnings a

table to:

holders of th

(Loss) for the


antee

ss Order 98/1from the Cord Directors’ re

he Class Ordect of the Deedg up of any ofnder other prhas not beenwound up.

ect to the Dee

onal Pty Limite

ment of compontrolled entitf Cross Guara

ehensive inco

ve income

e income for

t beginning o

ed during the

at end of yea

e Company

period

olled Entities

418 (as amenrporations Acports.

er that the Cod is that the Cof the subsidiaovisions of thn paid in full.

ed are:

ed

prehensive incties which arentee, for the y

me and retain

the period

of year

year

r

nded) dated 1ct 2001 requ

ompany and ompany guaraaries under cehe Act, the Co The subsidia

come and cone a party to tyear ended 30

ned earnings

13 August 199irements for

each of the santees to eacertain provisiompany will oaries have als

nsolidated statthe Deed, aft0 June 2011 is

2011

$'000

402,3

(270,8

131,4

(19,1

9

(18,7

94,5

(19,0

75,4

3

3

64,1

(56,8

83,1

83,1

75,4

Co

98, the whollypreparation,

subsidiaries eh creditor payons of the Coonly be liable o given simila

tement of finaer eliminatings set out as fo

201

$'00

11 368

865) (261

46 107

109) (114

07 1

713) (19

531 (25

043) (12

488 (38

63 10

63 10

125 104

811) (12

165 64

165 64

488 (38

onsolidated

y‐owned subs, audit and l

enter into a Dyment in full oorporations Ain the event ar guarantees

ancial positiog all transactiollows:

10

00

8,967

1,463)

7,504

4,852)

1,099

9,667)

5,916)

2,368)

8,284)

0,534

0,534

4,500

2,625)

4,125

4,125

8,284)

131

sidiaries listedodgement of

Deed of Crossof any debt inct 2001. If athat after sixs in the event

n, comprisingions between

d f

s n a x t

g n

For

per

sona

l use

onl

y


38 Deed of

Stateme

Current

Cash as

Trade a

Invento

Assets

Total cu

Non‐cu

Trade a

Intangib

Investm

Propert

Total no

Total as

Current

Trade a

Interest

Current

Provisio

Liabiliti

Total cu

Non‐cu

Interest

Deferre

Provisio

Total no

Total lia

Net ass

Equity

Issued c

Share b

Reserve

Retaine

Total eq

holders


f cross guara

ent of financia

t assets

ssets

nd other rece

ories

held for sale

urrent assets

rrent assets

nd other rece

ble assets

ments

ty, plant and

on‐current as

ssets

t liabilities

nd other pay

t bearing liab

t tax liabilitie

ons

es held for sa

urrent liabilit

rrent liabiliti

t bearing liab

ed tax liabilitie

ons

on‐current lia

abilities

ets

capital

based paymen

es

ed earnings

quity attribut

s of the paren


antee (contin

al position

eivables

eivables

equipment

ssets

yables

bilities

s

ale

ies

es

bilities

es

abilities

nt reserve

table to equit

nt

olled Entities

nued)

ty

2011

$'000

2

62

45

8

119

22

151

232

482

889

1,009

43

3

6

3

55

178

13

192

248

761

686

6

(14

83

761

C

1 2

0 $

2,703

2,950

5,242

8,728

9,623

2,686

1,728

2,748

2,647

9,809

9,432

3,088

3,107

6,013

3,514

‐

5,722

8,012

3,786

861

2,659

8,381

1,051

6,191

6,462

4,767)

3,165

1,051

Consolidated

132

2010

$'000

3,169

60,588

74,723

36,436

174,916

30,057

151,836

174,092

401,452

757,437

932,353

32,832

‐

3,556

4,397

815

41,600

141,617

10,682

237

152,536

194,136

738,217

685,465

2,728

(14,101)

64,125

738,217

d

For

per

sona

l use

onl

y

Directors 1. In th

(a)

(b)

2. The

be aof C

3. The

the 4. The

stat Dated at Per Signed in acc

Keith Gordon Managing Dire

s’ Declarat

he opinion of the consreport in2001, in

(i)

(ii)

there arthey bec

re are reasonable to meet aCross Guarante

Directors havChief Executiv

Directors dtement of com

th, 22nd day o

cordance with

ector

tion

the Directors

solidated finan the Directorcluding:

giving a trueperformance

complying w

re reasonable come due and

nable groundsany obligationee between t

ve been givenve Officer and

raw attentionmpliance with

of August 201

h a resolution

of Emeco Ho

ancial statemers’ report, set

e and fair viewe for the finan

with Australian

grounds to bd payable.

s to believe thn or liabilities he Company a

n the declaratd Chief Financ

n to note 2(International

11

of the Directo

oldings Limited

ents and noteout on pages

w of the Groncial year ende

n Accounting S

elieve that th

hat the Compto which theyand those gro

tions requiredcial Officer for

(a) to the col Financial Rep

ors:

d (the “Compa

es as set out o33 to 50 are

up’s financialed on that da

Standards and

he Company w

pany and the gy are or may boup entities pu

d by Section 2r the financial

onsolidated fporting Standa

any”):

on pages 53 tin accordance

position as ate; and

d the Corporat

will be able to

group entitiesbecome subjeursuant to ASI

295A of the Coyear ended 3

inancial stateards.

to 132, and Re with the Cor

at 30 June 20

tions Regulat

pay its debts

s identified inect to by virtuIC Class Order

Corporations A30 June 2011.

ements, whic

133

Remunerationrporations Act

011 and of its

ions 2001;

s as and when

n Note 38 wille of the Deedr 98/1418.

Act 2001 from

ch includes a

n t

s

n

l d

m

a

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y

Documents

For personal use only - ASX · Preliminary Final report Period Ended 30 June 2011 Ratios and Other Measures NTA backing Current Period Previous corresponding Period Net tangible asset