Building a better Australia 2023 Annual Report Adbri is a team of 1,600+ people around Australia with a single purpose and promise. Individually and collectively, they demonstrated in 2023 that we always deliver. 2023 highlights Deputy Chair and CEO report Operating and financial review Directors’ report Remuneration report Financial statements Consolidated income statement Consolidated statement of comprehensive income Consolidated balance sheet Consolidated statement of cash flow Notes to financial statement Directors’ declaration Auditor’s independence declaration Independent auditor’s report to the members of Adbri Limited Information for shareholders 1 2 4 8 25 46 46 47 48 50 51 106 107 108 113 Acknowledgement of Country We acknowledge the Aboriginal and Torres Strait Islander peoples as the Traditional Custodians of the lands and waters of Australia. We recognise their continuing custodianship of Country and culture and pay respect to their Elders past, present and emerging. About this Report Information on likely developments in the Group’s business strategies, prospects and operations for future financial years and the expected results that could result in unreasonable prejudice to the Group (for example, information that is commercially sensitive, confidential or could give a third party a commercial advantage) has not been included in this report. The categories of information omitted include forward-looking estimates and projections prepared for internal management purposes, information regarding Adbri’s operations and projects, which are developing and susceptible to change, and information relating to commercial contracts. Adbri Limited ABN 15 007 596 018 Adbri is a registered trademark of Adbri Limited 2023 highlights 1 We continued to experience strong demand for Adbri products in 2023, with cost and pricing discipline supporting our improved earnings. Highlights 53% reduction in LTIFR, supported by a 10% reduction in TRIFR Kwinana 70+% complete as at 31 January 2024 as we invest in our future strategic cement assets Decentralised business model delivered operational efficiencies Enhanced customer experience supported pricing traction Financial Launched two branded lower carbon product ranges, Futurecrete® and EvoCem™ Signed a long-term agreement for one of the world’s first 100% hybrid electric battery capable limestone cargo vessels $297.4m statutory EBITDA 5.2% 30.9% increase in underlying1 EBITDA $1,922.9m Total revenue $92.9m Statutory NPAT2 $111.7m Underlying1 NPAT $m 2,000 1,922.9 1,700.3 1,500 1,517.0 1,569.2 1,454.2 1,000 500 0 FY19 FY20 FY21 FY22 FY23 $m 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0 47.3 $m 140.0 120.0 123.0 116.7 114.9 113.0 111.7 102.6 100.0 93.7 92.9 77.7 80.0 60.0 40.0 20.0 0 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 1. Underlying measures exclude property (profit)/expense and significant items. 2. Attributable to members of Adbri Ltd. Adbri 2023 Annual Report 2 Deputy Chair and CEO report Samantha Hogg Deputy Chair Mark Irwin Chief Executive Officer In 2023 we took significant steps to refocus and reshape our organisation to support a more resilient Adbri and to invest in our future. Our focus on best‑in‑class customer solutions and margin recovery has supported a strong full year financial result for the year ended 31 December 2023. We delivered strong financial outcomes Adbri’s 2023 full year underlying EBITDA was $311.0 million, up 30.9% on 2022. Our performance was the result of strong demand for our cement, concrete and aggregates products across key markets, with pricing and cost discipline supporting improved earnings. Our people have a lot to be proud of and have embraced our new decentralised business model, now firmly embedded across Adbri. Our leadership team’s focus on simplification and enhanced systems and controls, are delivering strong outcomes. Together, we have achieved a 10% reduction in our total recordable injury frequency rates, supported by a 53% reduction in our lost time injury frequency rates, and progressed several key strategic priorities such as the launch of EvoCem™ and Futurecrete® product lines. Financial summary Year ended 31 December ($m) 2023 2022 Change Revenue 1,922.9 1,700.3 13.1% Statutory EBITDA 297.4 282.6 5.2% Underlying1 EBITDA 311.0 237.6 30.9% Underlying EBIT 175.1 121.6 44.0% Statutory NPAT 92.9 102.6 (9.5%) Underlying NPAT 111.7 77.7 43.8% Free cash flow2 (104.7) (59.8) (75.1%) Underlying ROFE3 8.5% 6.5% 200bps Underlying net profit after tax attributable to members of Adbri Ltd for 2023 was $111.7 million, up 43.8% on 2022. 2023 revenue increased 13.1%, to $1.92 billion (2022: $1.70 billion) and although there are signs of inflationary pressures moderating, they remain elevated above historic levels. Key 2023 achievements that supported our strong results and our future, included: – Invested in our future business through strategic cement asset upgrades, including the Kwinana Upgrade Project which is over 70% complete as at 31 January 2024 – Delivered operational efficiencies through our new decentralised business model, supported by strong leadership – – – Launched branded lower carbon products to the market, improving customer choice Improved customer experience through the use of enhanced sales and analysis systems and tools that are supporting pricing traction Committed to a world class hybrid electric battery limestone vessel to deliver efficiencies and support our net zero emissions goal. Capital management remains a priority, with net debt of $682.1 million (2022: $576.4 million); up on the prior year as we fund the completion of the Kwinana Upgrade Project (KWUP). The Board decided not to declare dividends in 2023 and will continue to review the Company’s capacity to return funds to shareholders. 1. 2. Underlying measures exclude property (profit)/expenses and significant items. Operating cash flow plus investing activities and AASB 16 Leases related cash outflows. 3. Return on funds employed (ROFE) is underlying EBIT/(net debt + equity). 3 We invested in Adbri’s future During 2023 we continued to invest in our business to support long-term business performance. The KWUP has achieved key milestones during the year and is over 70% complete as at 31 January 2024, with $265 million invested (excluding capitalised interest and accounting adjustments). The upgrade strengthens the Company’s ability to be a low-cost cement supplier in Western Australia through a new modern state-of-the- art facility that consolidates Adbri’s two existing cement production sites onto the one site. We also committed to the growth of our Birkenhead integrated clinker and cement facility, which operated at close to full utilisation during the year with a 20-year agreement for CSL Group to supply and operate a new hybrid electric battery powered limestone transport vessel in 2026. This new vessel will have 35% more carrying capacity than the existing MV Accolade II; supporting increased volumes of cement at Birkenhead and the production of lower carbon products that use limestone as a clinker substitute. Our targeted investment in our concrete footprint in key growth areas resulted in the opening of two new concrete plants during the year. We also focused the roll-out of our Type General Limestone (GL) cement range to support our customers decarbonisation, and future growth opportunities. The decentralised business model was embedded during the year to improve efficiencies and stakeholder experience. This was supported through the appointment of key leadership roles during the year including Jared Gashel in the role of Chief Financial Officer, the appointment of a Chief Sustainability and Innovation Officer and a Chief Commercial Officer, as well as the extension of the Chief Executive Officer’s tenure. A key focus on systems and controls, such as our new standardised quotation system across the Group, is improving productivity and margin optimisation. In 2024, we will continue to invest in our systems including new payroll and forecasting solutions. During the year we commenced a review of our Western Australia lime operations to reflect the current operating environment and the changing demand profile from customers in the alumina and mining sectors. In particular, the review includes assessing optimal production levels at the Munster site having regard to future lime market demand, evaluating a business case for a potential Munster lime import facility and analysis of opportunities for Adbri’s surplus land holdings at Munster. We progressed our sustainability priorities Safety remains our highest priority at Adbri. We have seen continual improvement across our lead and lag indicators as we embed our culture of ‘Work Safe, Home Safe’. Our total recordable injury frequency rate (TRIFR) decreased to 7.1 in 2023, compared to 7.9 in 2022. The Company took further strides in decarbonising our operations as we move towards our goal of net zero emissions by 2050. Pleasingly, at 30 June 2023 our greenhouse gas emissions (GHG) reduced by a further 8% compared to the prior corresponding period, exceeding our short-term target. For over a decade we have invested in the decarbonisation of our business and products through projects and initiatives that delivered abatement outcomes. This effort was critical in our dialogue with Government around proving the industry’s commitment to decarbonisation more broadly. This, coupled with our own decarbonisation initiatives, means that Safeguard Mechanism legislation enacted as at 1 July 2023 will not have a material impact on our earnings. Other key sustainability highlights during the year included: – Obtaining approval from the South Australia EPA to increase the use of alternative fuel at Birkenhead to further reduce GHG emissions. – The release of two new lower carbon products, Futurecrete® and EvoCem™. Both of these products use supplementary cementitious materials to reduce embodied carbon. – Collaborated with the Federal Government on the Safeguard Mechanism Reform legislation and the Carbon Leakage Review. Details on the actions taken to reduce our emissions, as well as further information regarding our ESG performance, is available in our 2023 Sustainability Report on Adbri’s website. We entered a proposed transaction with CRH In December, Adbri entered into a process and exclusivity deed with CRH ANZ Pty Ltd (CRH) and Barro Group Pty Ltd (Barro Group) to progress a non-binding indicative proposal under which CRH would acquire 100% of the Adbri shares not held by the Barro Group for $3.20 per share in cash. While the proposal is under consideration, the Barro Group nominee directors have recused themselves from the Adbri Board and all Board sub-committees, and an Independent Board Committee (IBC) comprising Adbri’s independent Non-executive Directors has been formed. On 27 February 2024, the Company and CRH entered into a binding scheme implementation deed to proceed with the proposed scheme of arrangement with the IBC unanimously recommending the scheme to shareholders, in the absence of a superior proposal and subject to an independent expert concluding (and continuing to conclude) that the transaction is in the best interests of shareholders. At this time Adbri shareholders do not need to take any action. Thank you Our people are the driving force behind building a better Adbri and the Company’s ongoing success. We believe this will continue to be the case, irrespective of Adbri’s future ownership structure. On behalf of the Board and management, we extend our appreciation to all of our employees and our contractors for your commitment and dedication to Adbri. We have a rich and longstanding history of supporting Australia’s prosperity, and we should be proud of what we’ve achieved. Thank you also to our customers, partners, joint ventures, and the communities in which we operate. As one of Australia’s pioneering construction materials companies you have all supported us in our growth. And most importantly, thank you to our shareholders who have helped us build a better Australia since 1882. Samantha Hogg Deputy Chair Mark Irwin Chief Executive Officer Adbri 2023 Annual Report 4 Operating and financial review Adbri delivered significant revenue and earnings growth in 2023 driven by price and cost discipline across our key segments as we reshape and refocus our organisation. Earnings overview Strong result reflective of cost and pricing discipline For the full year ended 31 December 2023 (FY23), the Company reported revenue of $1.92 billion, up 13.1% on the prior year (2022: $1.70 billion). This significant growth can be attributed to improved average selling price and continued strong demand for products across key markets. Statutory EBITDA was up 5.2% to $297.4 million, while underlying EBITDA was $311.0 million, increasing 30.8% on FY22. The Company’s focus on pricing and cost management contributed significantly to this positive outcome. Underlying EBIT also increased significantly, up 44.0% on the prior year, to $175.1 million. Statutory NPAT attributable to members decreased by 9.5% to $92.9 million primarily attributable to $46.2 million of property and Rosehill plant, property and equipment earnings recognised in the prior year. Further, in 2023 a reversal of the gain on sale of the Hilltop land totalling $7.6 million pre-tax ($6.1 million post-tax) was required following default by the purchaser. Underlying NPAT was up 43.8% at $111.7 million. The earnings from joint ventures and joint operations (JVOs) were up 17.6% at $32.8 million, reflecting the benefit from price increases and more favourable weather conditions. Our JVOs play an important role in the Group’s strategy via de-risking our earnings, expanding our customer base, and providing touchpoints to deliver critical infrastructure into regional areas. The Group’s operating cash flow of $215.0 million improved on the back of improved buisness performance. Free cash flow of ($104.7) million was in line with expectations, with over $165.8 million invested in the KWUP during the year. As a business, we remained focused on improving our free cash flow through strong capital management and an ongoing attention to cash conversion. As at 31 December 2023, net debt was $682.1 million (2022: $576.4 million), driven by increased investment in the business. A detailed analysis of the risks posed by climate change is provided in Note 1 of the Financial Statements. $215.0m Cash flow from operations 49.0% Net debt to equity $2,620.9m Total assets % 300 250 200 150 100 50 0 256.2 193.2 195.2 215.0 166.4 FY19 FY20 FY21 FY22 FY23 % 50 40 30 20 10 0 49.0 44.3 $m 3,000 2,500 2,620.9 2,525.4 35.4 34.5 30.5 2,000 2,153.7 2,122.9 2,282.9 1,500 1,000 500 FY19 FY20 FY21 FY22 FY23 0 FY19 FY20 FY21 FY22 FY23 1. Underlying measures exclude property (profit)/expense and significant items. 5 Cement Lime Three consecutive years of cement revenue growth Cementitious materials revenue increased 7.8% in 2023, the third consecutive year of growth, while volumes increased by 2.8% on 2022. This performance was driven by strong demand across most sectors, particularly mining and engineering/infrastructure. In New South Wales and Victoria demand was strong across all key sectors. South Australia benefited from demand from the local mining sector, while the Northern Territory experienced wet weather which impacted access to some customers operations. In Western Australia mine closures also impacted demand. The national average selling price of cement increased by 8.2% compared with the prior year. During 2023, we launched and placed over 300,000m3 of Adbri EvoCem™, a lower carbon cement that provides equivalent performance to Type GP cement. EvoCem is a General Limestone cement (Type GL) which has been pioneered in Australia by Adbri. We also extended supply contracts to BHP’s Prominent Hill and Carrapateena operations to 2026 and entered into a two-month extension of the Independent Cement and Lime (ICL) cementitious supply contract. Post year end, the ICL contract has been extended for a further four months. Pleasingly, we entered into a long-term agreement with CSL to have one of the world’s first hybrid electric battery capable cargo vessels as our limestone carrier. The new vessel will support the increase of cement volumes at Birkenhead, while supporting the production of lower carbon products. Inflationary pressures, although moderating, continue to impact energy and raw materials. To assist with cost management, a new efficient kiln burner was installed at Birkenhead that is providing a 5% clinker gas consumption benefit, with the ability to support up to 100% substitution of natural gas with refuse derived fuel in the calciner. During the year, Adelaide Brighton Cement Ltd (ABCL) entered into an enforceable undertaking with SafeWork SA in relation to an incident that occurred at its Klein Point quarry that resulted in serious injuries to a worker in May 2021. ABCL sincerely regrets this incident and has provided ongoing support to the worker, who has now returned to work. The enforceable undertaking commits ABCL to perform activities, to the value of over $875,000, that deliver safety benefits to the workplace, our industry and the community. Improved pricing supported revenue growth Revenue for lime increased by 9.6% on the back of improved pricing with existing customers. The average selling price of lime increased by 14.6% compared to 2022. Demand for lime was primarily impacted by wet weather in Western Australia, as well as mine closures and ongoing process issues at a customer’s refinery. This resulted in a 3.4% decline in volumes compared with the prior year. The current inflationary environment, and our transition of our Munster facility away from coal to other energy sources as part of our goal of net zero emissions by 2050, has resulted in a significant increase in our operating costs. Management of costs remains a priority for the business. We anticipate the alumina sector will continue to evolve in 2024, with Alcoa announcing in January 2024 the curtailment of its Kwinana refinery in Western Australia. Adbri is in discussions with Alcoa regarding its supply agreement which expires in October 2024. Concrete Strong demand with improved pricing Revenue for concrete increased by 20.3% on the prior year driven primarily by price increases implemented in the second half of 2022 and early 2023, as well as a 2.5% increase in volumes. All regions, except for Queensland, experienced increased demand for concrete driven by the commercial and engineering/infrastructure sectors. New South Wales volumes increased by 15.0% on the prior year on the back on strong customer demand. Victoria recorded a 5.4% increase in volume supported by all market segments. South Australia remained relatively steady with a 0.3% increase, with robust residential demand. In Queensland demand remained steady, however growth was constrained by the availability of transport and labour. Whilst the Northern Territory market is comparatively smaller, it experienced our strongest volume growth, with the infrastructure sector driving demand. To support customer demand and ongoing growth, we opened two new concrete plants in 2023 – one in Rosehill to service the western Sydney market and replace the plant compulsorily acquired by the Government, and one in Pakenham to supply the outer south east Melbourne growth corridor. Inflationary costs continued to impact our operations, particularly fuel, raw material, transport and energy. In early 2023 we implemented price increases to recover margin, with the national average selling price of concrete increasing by 16.5%. Adbri 2023 Annual Report 6 Operating and financial review continued Aggregates Masonry Continued heightened demand for aggregates Aggregates demand has continued to grow year-on-year, with a 2.0% increase in volume in 2023. Revenue also increased 19.6% on the prior year with Queensland experiencing the largest growth attributable to a full year of sales from Zanows’ Fernvale and Kalbar quarries, servicing demand from infrastructure projects in the Sunshine Coast, and favourable weather conditions compared to the prior year. Sydney also experienced strong growth in volumes with over 250,000 tonnes of aggregates supplied to the Western Sydney Airport project. However, the overall demand in New South Wales was lower with the completion of 2022 flood recovery projects in New South Wales. Nationally, the average selling price of aggregates increased by 14.4% helping offset heightened production costs due to the inflationary environment. Continued strong demand for contracting service Nationally, masonry revenue increased by 9.1% from 2022, driven by a significant increase in contracting revenue, as well as solid price growth. Demand remained subdued in 2023, in line with consumer confidence trends. Nationally, volumes were down 3.8% on 2022 due to lower independent retail volumes on the eastern seaboard of Australia and Tasmania. South Australia recorded a modest increase across all key markets. Price increases supported an 8.0% increase in the national average selling price, helping offset increased manufacturing costs associated with labour, fuel, pallets, raw materials and lease costs in Sydney following the sale of the Moorebank property in 2022. The South East Queensland subdivisional market continued to generate strong demand for contracting, growing 38% compared to 2022. Joint ventures and operations Joint ventures and joint operations continue to strengthen earnings Contributions to earnings from JVOs was $32.8 million, up 17.6% on the prior year (2022: $27.9 million). This was driven by the benefit of price increases implemented in 2022 to offset rising operational costs, as well as ongoing demand in key markets. JVOs ICL Mawsons Sunstate Other JVs7 Joint operations8 Earnings (Adbri share) ($m) % change Performance FY23 FY22 16.4 15.2 7.9% FY23 5.4 FY22 2.7 100.0% – Demand remains robust, with volume growth and price recovery driving performance. – Commissioning of ICL’s state-of-the-art cement storage facility in Melbourne. – Demand was strong in 2023 driven by flood recovery works, as well as increased infrastructure projects. FY23 FY22 FY23 FY22 0.5 FY23 FY22 4.7 5.6 2.5 (16.1)% 400.0% – Demand for product in the South East Queensland market declined with lower offtake by shareholders and non-recurring one-off sales in 2022 to another market participant. – Price increases achieved in the market assisted to offset inflationary costs. – Aalborg performance improved driven by strong demand and favourable shipping and FX pricing. 3.8 3.9 (2.6)% – Demand for agricultural lime from Batesford Quarry remained stable in 2023. 7. 8. Includes Aalborg Portland Malaysia Std. Bhd, B&A Sands Pty Ltd and Peninsula Concrete Pty Ltd. Includes Batesford Quarry and Burrell Mining Services. 7 Cash flow and working capital Operating cash flow of $215.0 million improved $48.6 million compared to 2022, largely due to improved trading performance. Capital expenditure increased relative to 2022, from $255.1 million to $316.2 million. Capital spend for the period was split between stay-in-business capital of $128.6 million (up $4.7 million on 2022) and development capital of $187.6 million (up $56.4 million on 2022), with 88.4% related to the KWUP. There were no business acquisition payments during the year, whilst $56.8 million in FY22 related to the acquisition of Zanows’ concrete and quarries business that completed on 1 April 2022. Property, plant and equipment disposal proceeds of $7.2 million mainly comprise of the sale of land at Karratha, Western Australia and mobile plant and equipment sales in the ordinary course of business. The prior year benefitted from $96.8 million received from the sale of land at Moorebank, New South Wales and compensation from Sydney Metro for the compulsory acquisition of the Rosehill land and associated cost reimbursement. In 2023, the Group drew down a net $34.2 million from its borrowing facilities mainly to fund the KWUP. Net debt and dividends Net debt increased by $105.7 million over the reporting period to $682.1 million at 31 December 2023, representing a leverage ratio of 2.2 times underlying EBITDA and interest cover of 14.5 times underlying EBITDA. As expected, the leverage ratio continues to remain outside the Board’s target range of 1.0–2.0 times due to the investment in the KWUP, but within our banking covenants. The Group’s total debt facilities of $1.0 billion has a weighted average term of 3.6 years as at 31 December 2023. We maintain sufficient liquidity and have $286 million of undrawn bank and asset financing facilities. The Board did not declare dividends in 2023 given the business’ continued investment in KWUP and elevated leverage position. The Board continues to review the Company’s capacity to return funds to shareholders. Finance cost and tax Net finance costs increased by $0.9 million to $21.5 million over the reporting period. Higher level of borrowings, together with multiple interest rate rises, translated to a $12.6 million gross increase in interest and finance charges. This was partially offset by increased interest capitalisation related to the KWUP, in line with the prevailing accounting standard. Income tax expense at $34.8 million is largely in line with the prior year. The effective tax rate increased from 25.0% to 27.2%, as capital losses recognised in FY22, related to property sales were not repeated in FY23. For further details, refer to our Tax Transparency Report available on the Adbri website. Kwinana Upgrade Project silo tank installation Adbri 2023 Annual Report 8 Financial statements 2023 Table of contents Directors’ report Remuneration report People and Culture Chair’s letter 1. Key management personnel 2. Remuneration governance 3. Executive KMP renumeration policy and framework 4. 2022 Executive KMP remuneration approach 5. Linking Executive KMP remuneration to Company performance 6. Non-executive Directors’ fees 7. Executive KMP service agreements and statutory remuneration tables 8. Additional statutory disclosures Consolidated income statement Consolidated statement of comprehensive income Consolidated balance sheet Consolidated statement of changes in equity Consolidated statement of cash flows Notes to the financial statements 1. Summary of material accounting policies 2. Segment reporting 3. Critical accounting estimates and assumptions 4. Earnings per share 5. Revenue from contracts with customers and other income 6. Expenses 7. Income tax 8. Note to statement of cash flows Balance sheet items 9. Trade and other receivables 10. Inventories 11. Assets held for sale 12. Property, plant and equipment 13. Leases 14. Intangible assets 15. Impairment tests 16. Provisions 9 25 25 27 28 28 30 36 41 43 45 46 47 48 49 50 51 51 55 58 58 59 60 61 64 66 66 67 68 68 70 72 73 75 Capital structure and risk management 17. Borrowings 18. Share capital 19. Dividends 20. Reserves and retained earnings 21. Financial risk management Group structure 22. Joint arrangements and associate 23. Subsidiaries 24. Deed of cross guarantee 25. Parent entity financial information 26. Retirement benefit obligations 27. Share-based payments plans 28. Related party transactions 29. Events occurring after the reporting period 30. Commitments for capital and leasing expenditure 31. Remuneration of auditors 32. Contingency Directors’ declaration Auditor’s independence declaration Independent auditor’s report to the members of Adbri Limited Information for shareholders 77 77 77 79 79 81 91 91 94 94 96 98 101 102 104 104 105 105 106 107 108 113 Directors’ report 9 The Directors present their report on the consolidated entity (the Group) consisting of Adbri Limited (the Company) and the entities it controlled at the end of, or during, the year ended 31 December 2023. Directors The Directors of the Company, at any time during or since the end of the financial year and up to the date of this report, are:1 RD Barro (Chair) SL Hogg (Deputy Chair and Lead Independent Director) RR Barro Dr VA Guthrie AO (resigned as a Director effective as at 28 February 2023) DS Jenkins ER Stein GR Tarrant MJM Wright Unless stated otherwise above, Directors were appointed for the full duration of the financial year. Principal activities During the year the principal activities of the Group consisted of the manufacture and distribution of cement, and cementitious products, lime, premixed concrete, aggregates, and concrete masonry products. There have been no significant changes in the nature of the principal activities of the Group during the financial year. Review of operations Information on the principal activities, operations and financial position of the Group and its business strategies and prospects is set out in the Deputy Chair and Chief Executive Officer’s report, and operating and financial reviews on pages 2 to 7 of this Annual Report. A summary of the financial results for the year ended 31 December 2023 is set out below: $M Revenue Statutory 1,922.9 2023 Significant Items Property (Profit)/ Expense 2022 Under- lying2 Statutory Significant Items Property (Profit)/ Expense Under- lying2 – – 1,922.9 1,700.3 – – 1,700.3 Earnings before interest, tax, depreciation and amortisation (“EBITDA”) Depreciation, amortisation and impairment Earnings before interest and tax (“EBIT”) Net finance cost3 Profit before tax Income tax expense Net profit after tax Attributed to: Members of Adbri Ltd (“NPAT”) Non-controlling interests Net profit attributable to members (“NPAT”) 297.4 7.3 6.3 311.0 282.6 12.6 (57.6) 237.6 (148.3) (12.4) – (135.9) (125.4) (9.4) – (116.0) 149.1 (21.5) 127.6 (34.8) 92.8 92.9 (0.1) 92.8 19.7 – 19.7 (6.0) 13.7 13.7 – 13.7 6.3 – 6.3 (1.2) 5.1 5.1 – 5.1 175.1 (21.5) 157.2 (20.6) 153.6 136.6 (42.0) 111.6 (34.1) 102.5 – 22.0 (6.6) 15.4 22.0 (57.6) 121.6 (20.6) – (57.6) 101.0 17.3 (40.3) (23.4) 77.6 111.7 (0.1) 102.6 (0.1) 15.4 – (40.3) – 77.7 (0.1) 111.6 102.5 15.4 (40.3) 77.6 1. As announced to ASX on 18 December 2023, Mr Barro, Ms Barro and Mr Tarrant have recused themselves from the Board and all Board sub-committees while the proposal to acquire 100% of the shares in the Company that the Barro Group does not own by way of scheme of arrangement is under consideration. 2. Underlying measures exclude property (profit)/expense and significant items. 3. Net finance cost is the finance costs shown gross in the income statement offset by interest income included in other income. Adbri 2023 Annual Report 10 Directors’ report continued Significant items Underlying measures of profit exclude significant items of revenue and expenses, such as impairment charges and the costs related to restructuring, rationalisation and acquisitions, to highlight the underlying financial performance across reporting periods. The following table outlines those significant items. $M Gross Tax Net Gross Tax Net 2023 2022 Corporate restructuring and strategic initiatives Impairment charge/write offs Change in loss provision Acquisition expenses Total significant items 5.0 12.4 2.3 – 19.7 (1.5) (3.8) (0.7) – (6.0) 3.5 8.6 1.6 – 4.8 9.4 1.3 6.5 13.7 22.0 (1.5) (2.8) (0.4) (1.9) (6.6) 3.3 6.6 0.9 4.6 15.4 Corporate restructuring and strategic initiatives Corporate restructuring and strategy costs of $5.0 million were recognised in the period ($4.8 million in 2022). Strategic initiative expenses primarily relate to one-off advisory costs in relation to initiatives currently being analysed by the Group. Impairment charge/write offs Impairment charges relates to specific business assets and a joint venture investment, where expected future cash flow generation is less than the assets’ carrying value. These assets are not part of the Group’s long term strategic plan. Change in loss provision A payment was received in the prior period towards a judgment of the Supreme Court of South Australia in favour of Adelaide Brighton Cement Limited, in connection with the matter from late 2017, when Adbri became aware of certain financial discrepancies which related to transactions whereby it had been underpaid for products supplied. That payment concluded the costs and recoveries associated with that matter. Costs of $2.3 million were accounted for in 2023 (2022: $1.3 million) concerning other proceedings in the Supreme Court of South Australia, which are ongoing. Acquisition expenses These costs relate to one-off stamp duty and incidental costs on acquisitions during the prior period. Property (profit)/expense The (profit)/expense from the Group’s long-term land sales program are excluded from underlying profit measures given the non-recurring nature of land sales. The following table summarises the property (profit)/expense recognised in the period. $M Property (profit)/expense Gross 6.3 2023 Tax (1.2) Net 5.1 Gross (57.6) 2022 Tax 17.3 Net (40.3) Property expense during the year predominantly relates to reversal of a gain, recognised in 2021, related to sale of land at Hilltop, New South Wales following default by the purchaser. Prior year property profit relates to: – the gain recognised on the compulsorily acquired Rosehill land and excludes a post-tax gain on disposal of plant and equipment of $5.9 million, which is included in underlying statutory profit; and – the gain recognised on sale of land parcels at Moorebank and Kewdale. Net profit after tax Full year reported NPAT attributable to members decreased 9.5% to $92.9 million on 2022, as the prior year benefitted from property sales recognised in 2022. Underlying NPAT attributable to members increased 43.8% to $111.7 million. 11 Dividends paid or declared by the Company During 2023 financial year, there were no dividends paid or determined. Since the end of the financial year, considering the capital required for the completion of the Kwinana Upgrade project and current leverage position, the Board has decided not to declare a final dividend for the year. Business risks and mitigation Adbri’s risk management policy and framework incorporates effective risk management into all facets of the business. Planning processes, including budgets and strategic plans, include a risk management component. There is regular reporting on the status of key risks to the Board and respective Committees throughout the year. The key risks to the Adbri Group and mitigation actions are outlined below. This is not intended as an exhaustive list of all the risks that may affect the Adbri Group. Additional risks that are not presently known or considered to be material may arise which could adversely affect the Adbri Group. Risk mitigation Risk description Risk scenario Mitigation Climate change/transition to a lower-carbon economy Adbri’s manufacturing includes the process of calcination of limestone to produce clinker and lime. This chemical reaction produces carbon dioxide. No current technology is commercially available at scale to eliminate these process emissions which account for over half of Adbri’s total operational greenhouse gas (GHG) emissions. For this reason, clinker and lime manufacturing are considered hard-to-abate industrial processes. The transition to a lower carbon economy could also potentially impact useful lives of assets, stay in business and research and development capital expenditure aligned to the Company’s Net Zero Emissions Roadmap, contingent liabilities and lead to a reduction in demand from customers if Adbri’s products do not meet the market’s expectations in terms of innovation and reduced emissions intensity. Government policy is expanding and becoming more targeted in the area of GHG emissions, be that through the Safeguard Mechanism or a possible re-introduction of a carbon tax. This may result in a tax on carbon emissions, increasing production costs. Adbri has been taking action to reduce its energy consumption and GHG emissions for over a decade and we regularly review our approach in response to emerging scientific knowledge, changes in climate policy, developments in lower emissions technologies and evolving stakeholder expectations. We have invested in the innovative use of alternative fuels in our kilns to reduce the consumption of fossil fuels such as natural gas. We also use low carbon materials such as slag and fly ash (supplementary cementitious materials (SCM’s)) to substitute for emissions-intensive clinker in our cement and as additions in concrete manufacturing. Recently, we branded our range of lower carbon products, Futurecrete® and EvoCemTM. These products use SCMs to reduce the embodied carbon and we are actively encouraging customers and governments to adopt new lower carbon products. We also engaged with the Government on proposed changes to legislation such as the Safeguard Mechanism and the Carbon Leakage Review. Adbri set its current emissions reduction target in 2019, to deliver a 7% reduction in our operational GHG emissions by 2024 and we are on track to deliver on this target. In May 2022, Adbri launched its net zero emissions by 2050 roadmap as part of our commitment to a lower carbon future. Key short-term targets are for 50% kiln fuel to be sourced from alternative fuel in South Australia and to increase use of SCMs nationally. Adbri 2023 Annual Report 12 Directors’ report continued Risk mitigation continued Risk description Risk scenario Mitigation Environmental, Social and Governance (ESG) considerations There are growing regulatory pressures and stakeholder demands for businesses to be accountable for their ESG performance. ESG factors include conservation of the natural world, air and water pollution, climate change and carbon emissions, social aspects such as gender and pay equality, indigenous rights and reconciliation, data protection and privacy and boardroom governance. Adbri’s operational footprint and activities are often near residential areas and the general community. There is a risk that Adbri may not meet community and/or other stakeholder expectations regarding its business activities or other ESG performance, potentially leading to stricter licensing conditions, higher compliance costs and/or a loss of investor confidence. Non-compliance with licence conditions and negative community sentiment may impact the Company’s ability to continue to operate near the community it services. It may also expose the Company to the risk of fines. Adbri aims to meet societal expectations with respect to modern slavery law, environmental and community matters and actively seeks to reduce any negative impacts upon the community in which it operates. Adbri works closely with its communities and seeks to limit any adverse impacts of its operations through process improvements, environmental improvement plans and operating within the limits of our licences with respect to matters such as dust emissions, odour, and other potential environmental impacts. Priorities and key focus areas have been established by Adbri within its sustainability framework to drive action and mitigation of ESG risks including: – Reducing any adverse environmental impacts. In 2023 we identified our Significant Environmental Aspects and introduced guidelines and training around these as focus areas, commencing with air and water quality. These aspects are also reflected in our 10 E-ssential Rules. – Engaging our people and being an inclusive employer. Our 2022–25 Diversity, Equity and Inclusion (DEI) Strategy, supported by Adbri’s Diversity and Inclusion Policy, outlines our four main focus areas: diverse workforces; inclusive experiences; purpose-led organisation; authentic reconciliation. – Building strong relationships with local communities. We actively engage and invest in the communities in which we operate, and for our large manufacturing sites we have site-specific Community Engagement Plans in place. – Developing lower carbon products (refer to Climate change/transition to a low-carbon economy risk for further details). – Adopting a circular economy approach such as the use of refuse derived fuel to replace fossil fuels. – Delivering our Innovate RAP that was endorsed by Reconciliation Australia in late 2023. – Engaging with the finance and investment community. Maintaining sound practices to avoid financial related risks and delivering a return on invested capital for shareholders. 13 Risk description Risk scenario Mitigation Macro-economic conditions Competitive landscape/loss of customer Adbri operates mainly in residential, non-residential and infrastructure construction markets, as well as supplying product to the resources sector. Its financial performance is closely tied to the performance of those markets that are cyclical and affected by various factors beyond the Group’s control including: commodity price performance and investment into mining projects, the performance of the Australian federal and state economies, the application of fiscal and monetary policies and regulatory compliance, the allocation and timing of government funding for public infrastructure and other building programs, the level of demand for building products and construction materials and services generally, the availability and cost of labour, raw materials and transport services, as well as the price and availability of fuel and energy. Adbri supplements its local Australian production with imported materials. The supply of imported materials is therefore dependent upon economic conditions in countries outside of Australia, particularly in Japan, Indonesia, and other south-east Asian countries. Australia, with its relatively open access to global participants, and reputable local manufacturers, is a competitive market. Heightened competition combined with fluctuations in the macro-economic environment can lead to product price volatility and impact upon the financial performance of the Group. There is a risk of overseas suppliers directly entering local markets, but more likely that customers move to a self-supply model and importing themselves, which we have seen increase in most markets we operate over the last five years. There is also a risk that the Group is not able to achieve/maintain sufficient pricing to offset inflationary costs. Adbri has diversified its business both geographically and by sector within Australia and through vertical integration. This diversity has balanced the exposure of the business to fluctuations across the regions and its customer base of construction, infrastructure, and mining sectors. Adbri maintains long-term contracts with raw material suppliers to minimise loss of business and earnings through market cycles. In 2023 a Chief Commercial Officer was also appointed to oversee key commercial supply relationships, pricing, marketing and joint venture advisory. Through a focus on cost control and productivity improvement, the Group’s production facilities are effectively utilised. These facilities are supported by a distribution network throughout Australia, ensuring that Adbri can provide a competitive value offering to customers. The Group engages proactively with its customer base to ensure their operational needs are fully met. We continue to develop our product range to address the changing needs of our customers and the increased focus on delivering products which meet their lower embodied carbon and sustainability needs. Through our Commercial Steerco we regularly review material key cost inputs (energy, raw materials etc) and make strategic pricing decisions in this forum to ensure we recover any inflationary costs. In the past two years Adbri has invested heavily in sales margin management and analysis systems and tools. This has led to more informed and strategic customer and pricing decisions to preserve and improve margins. Adbri joint ventures and operations also assist in expanding our customer base and de-risking our earnings. Adbri 2023 Annual Report 14 Directors’ report continued Risk mitigation continued Risk description Risk scenario Mitigation Regulatory compliance Key equipment failure With production and distribution sites across all states and territories of Australia, Adbri is subject to significant regulatory requirements in areas such as environmental, licences to operate, employment, occupational health and safety, and taxation laws. Non-compliance or changes to regulatory requirements could lead to substantial penalties, cost impositions on operations and loss of licence to operate. The Group employs a range of initiatives to assist in meeting or exceeding regulatory compliance including: – Employing specialists to support operational staff in areas such as human resources, and health, safety, environment and sustainability; – Using engineering solutions to improve operations; – Regularly training and competency testing of employees. Inclusion of regulatory compliance within the internal audit scope; and systems, policies and procedures are designed to instil and foster a proactive and preventative compliance culture. The production of cement and lime involves large scale manufacturing sites. The business also relies on portside infrastructure and dedicated vessels for the storage and transportation of raw materials. The failure of key equipment in the manufacturing and logistics process can interrupt production and adversely impact financial performance. Predictive and preventative asset management activities and business continuity planning identify risks with key equipment and ensure strategies are in place to prevent or mitigate risks including holding “critical spares” of key equipment and contractual arrangements to supplement domestic production with imported product where required. For insurable events, to the extent that production is disrupted for periods exceeding 20 days, the Group maintains business interruption insurance. Substantial shareholder Adbri’s major shareholder, the Barro Group, currently holds a beneficial interest in 43% of the Company’s stock. The Board maintain strong governance protocols to ensure any conflicts of interest are managed appropriately. The Board seeks to maintain a majority of independent directors and seeks to ensure that board sub-committee chair positions are held by independent directors. 15 Risk description Risk scenario Mitigation Serious injury or fatality Adbri directly employs approximately 1,600 people and operates across approximately 150 locations, undertaking cement, lime, concrete and concrete product manufacturing, and distribution activities. There are a range of potential safety hazards to which Adbri’s employee and contractor workforces, and visitors are exposed. Where a serious risk results in the worst-case scenario, it can lead to serious injury or fatality to persons while undertaking activities or attending locations in connection with the Adbri business. Apart from the direct workers compensation expense, this may adversely impact production performance or the Company’s ability to continue production. Further, an employer who is found to be engaged in negligent conduct that results in a workplace death, may face penalties, imprisonment, legal costs, and reputational impacts. Should a death or very serious injury occur at an Adbri workplace there is also the risk of adverse media attention and loss of reputation leading to a drop in share price. Adbri has a strong focus on safety, with a safety vision of Work Safe, Home Safe. Central to Work Safe, Home Safe is our critical risk program, which focuses on six critical risk activities that have the highest potential for serious injury or death. These are called our critical risks, and include: – Struck by mobile plant – Falls from a height – Driving – Contact with electricity – Working with fixed plant – Confined spaces For each of our critical risks we have identified Critical Risk Controls that must be in place before work commences. Our critical control verification program ensures critical risk controls are in place, with 2,069 critical control verifications undertaken across Adbri sites in 2023. We also focus on quality visible leadership discussions, by listening to the views of our workers on the activities that can kill or seriously injure them while doing their daily work; and opportunities for improvement or actions to eliminate or minimise those risks. We recognise that a learning environment, with genuine two-way communication with workers, can have a significant influence on building a safety culture, trust and psychological safety. Our learning focus is embedded into our incident investigation (including high potential incidents) and incident debrief processes, which aim to understand the causes and share learnings to prevent recurrence. Foreign currency Production quality The Group imports a range of raw materials to support the production of cement and concrete. In addition, the Company may import plant and equipment for both development and maintenance capital projects. These purchases are primarily denominated in United States Dollars, Japanese Yen and Euro. The Company is exposed to any fluctuations in these currencies against the Australian Dollar. The Group manages exposure to foreign exchange risk through a formalised hedging policy. Committed raw material purchases that expose the Group to foreign currency risk are hedged through agreed hedging products up to a full calendar year ahead reflecting contractual commitments. Foreign exchange exposure as a result of all other Company activities where the value at risk is considered sufficient are hedged accordingly. In addition, where practical, contractual arrangements with suppliers include provisions to limit foreign currency risk to Adbri. The Group’s key products of cement, lime, concrete, aggregates, and masonry products are sold in accordance with relevant quality standards and customer specifications. Raw materials used in production are natural products and therefore normal variability of the characteristics could result in fluctuations in composition of the end product. Products that do not meet the relevant quality standard could result in end use customers being financially disadvantaged. The Group has quality assurance processes across all products, including the monitoring of inputs into the production process and testing of final products to ensure compliance with relevant standards and specifications. The skills of internal quality control personnel are continually updated and supplemented using external experts where required. The Group has product liability insurance which covers the Group’s legal liability to pay compensation and costs for personal injury or property damage arising from the supply of non-compliant products. Adbri 2023 Annual Report 16 Directors’ report continued Risk mitigation continued Risk description Risk scenario Mitigation Cyber and data security Energy pricing Risk of cyber-attack or breach of information security leading to unauthorised access and loss of or disruption to Adbri data or computer-controlled systems. Cyber security continues to be a significant risk to all organisations, whether they be private, public, government or non-government. Adbri’s cyber security risks include the loss of corporate, staff and/or customer data as well as the potential for cyber events that impact on the core operations of the organisation. The outcome of a cyber event could also have an impact on our reputation with the community and our customers. Production of cement and lime are energy intensive and consequently access to reliable, cost-effective energy is required to sustain domestic production. Price and reliability are factors in the selection of suitable energy sources for production. Access to capital The Group is capital intensive and relies on banks and other institutions to source its funding needs. A failure to access sufficient liquidity may limit the Company’s ability to grow its earnings and may prevent the Company from paying its debts as and when they fall due. Further, where the Company does not maintain access to multiple funding sources across a range of tenures, it may be subjected to increased establishment and interest expenses. The Group has an established cyber security resources, supported by security partners, to provide around the clock monitoring and support. The cyber security capability has been strengthened through a multi-layered approach that has included upskilling staff members on cyber security, Company-wide cyber security communications on cyber threats, conducting simulated phishing exercises, as well as establishing an Information Security Management System. The Group employs a portfolio approach to energy procurement, utilising progressive purchasing with tiered/tranches at differing tenures. We continue to diversify sourcing at competitive prices and explore behind the metre (BTM) solutions. This portfolio approach has resulted in a mix of contracted arrangements for the supply of energy and spot purchases on gas trading markets. In addition, where possible, alternative fuel is used to displace gas. A refuse derived fuel (processed combustible demolition waste) has been developed for use in the kiln at Birkenhead and substitutes for approximately 40% of gas, saving significant costs, reducing emissions and avoiding waste being sent to landfill. Adbri adopts a conservative approach to capital management ensuring the balance sheet can withstand market shocks and retain the flexibility to fund capital projects and make investments which deliver earnings growth. Adbri’s strong credit profile, its ongoing and pro-active engagement with financiers, shareholders and other capital providers provides the business with multiple avenues to meet the ongoing funding needs of the business. As part of its pro-active capital management strategies, Adbri has an average debt maturity profile of 3.6 years at 31 December 2023. Insufficient or ineffective capital investment There is insufficient or ineffective capital investment in the organisation resulting in not keeping up with industry standards, and staff/customer expectations. Material investment is occurring with the Kwinana Upgrade project and there are numerous internal projects that are expected to deliver efficiency across the staff and customer experiences. Interest rates The Group’s debt portfolio is exposed to changes in interest rates, which may result in increased interest costs. In addition, should interest rates rise there is likely to be a flow on effect to demand for residential housing, in turn potentially reducing demand for construction materials. The Group manages exposure to interest rate risk through a formalised hedging program. A portion of the Group’s drawn debt is subject to fixed interest and hedged at fixed rates to limit the risk of increases in interest rates to Adbri. Detailed information regarding the Group’s interest rate hedging is contained in the Financial Statement note disclosures. Adbri’s vertical integration strategy and balanced geographical and sector exposure mitigate any potential reduction in demand from the residential construction sector. 17 Risk description Risk scenario Mitigation Supply chain Trade credit Fraud, bribery, and corruption Disruption in the supply of raw materials or other goods could impact Adbri’s ability to manufacture and/or deliver its products and meet market demand. Adbri relies on imported product for both domestic processing and to supply direct to its joint venture companies and other customers. Adbri is also reliant on its overseas suppliers’ export capacity, availability of suitable vessels and the timely delivery of product to meet its own and its customers’ requirements. There are risks of loss of cargo in transit, shipping delays, supplier production issues or local natural disasters that may lead to an inability to supply on time. Adbri may need to quickly source alternative product or put other supply arrangements in place to meet its commitments. There is also a risk of payment for minimum volumes where a demand shortfall occurs. These supply chain risks can also apply to procurement more generally such as pallets, spare parts, plant and equipment for upgrades, maintenance, and everyday production needs. Contractual arrangements with customers include the provision of short-term trade credit for products supplied. The Group is therefore exposed to the credit risk for a portion of its sales. Changes in macroeconomic conditions and customer specific issues impacting cash flows available to settle purchases factor into the level of risk associated with outstanding trade credit. The Group operates in an environment that exposes it to the risk of loss from fraud, bribery, and corruption. Operating in a commercial environment with the movement of funds into and out of the Company gives rise to the risk that economic benefits can be obtained through inappropriate acts by employees, suppliers, customers or third parties. Adbri has formal procurement and international shipping functions with resources specialised in sourcing and supply chain risk management. If necessary, Adbri is able to purchase clinker, cement, and slag from their respective spot markets in lieu of contracted suppliers. Adbri aims to ensure the optimal operation of its manufacturing and distribution supply chain including optimal inventory holdings and minimising manufacturing and distribution costs. This includes identifying and onboarding as many suitable vendors (e.g., freight companies) as possible to be able to maintain competitive tension and to meet our goods and services requirements. To support continuity of supply, long term supply contracts are in place with overseas suppliers for clinker, cement and slag, matched with dedicated shipping arrangements. Adbri’s extended operational network and scale of imports enables the diversion of shipments to operations with critical stock positions further mitigating supply chain disruption. Trade credit risk is managed through the assessment of individual customer credit limits in accordance with delegated authority levels approved by the Board, which is monitored along with the ageing of outstanding balances. The Group’s Code of Conduct outlines the key principles that governs the Company’s behaviour and actions, making it clear there is zero tolerance for practices considered as bribery, fraud, or corruption. Employees and contractors are required to adhere to this code as part of their ongoing employment. Process controls are periodically reviewed to incorporate enhanced fraud, bribery, and corruption prevention measures, which are tested through the internal audit program. State of affairs Other than set out in the Deputy Chair and Chief Executive Officer’s report, and the operating and financial review on pages 2 to 7 of this Annual Report, no significant changes occurred in the state of affairs of the Group during the financial year. Adbri 2023 Annual Report 18 Directors’ report continued Risk mitigation continued Events subsequent to the end of the financial year Other than as set out below, no matter or circumstance has arisen since 31 December 2023 that has significantly affected, or may significantly affect the Group’s operations, the results of those operations, or the Group’s state of affairs in future financial years. In December, following receipt of a non-binding indicative proposal from CRH ANZ Pty Ltd (CRH) and Barro Properties Pty Ltd (Barro Properties) Adbri entered into a process and exclusivity deed to progress a potential transaction under which CRH would acquire 100% of the Adbri shares not held by the Barro Group for $3.20 per share in cash. An Independent Board Committee (IBC) comprising Adbri’s independent Non-executive Directors was formed to evaluate the proposal and, if applicable, progress the transaction via a scheme implementation agreement. The Barro Group nominee directors have recused themselves from the Adbri Board and all Board sub-committees while the proposal is under consideration. On 27 February 2024, the Company and CRH entered into a binding scheme implementation agreement to proceed with the proposed scheme of arrangement with the IBC unanimously recommending the scheme to shareholders, in the absence of a superior proposal and subject to an independent expert concluding (and continuing to conclude) that the transaction is in the best interests of shareholders. On 8 January 2024, Alcoa announced the curtailment of its Kwinana refinery in Western Australia. Adbri is in negotiations with Alcoa regarding its supply agreement which expires in October 2024. On 26 February 2024, Adbri announced that its wholly owned subsidiary, Adelaide Brighton Cement Ltd, trading as Adbri Cement, has agreed with ICL to the supply and distribution of cementitious materials for a four month period. ICL is a 50:50 joint venture between Adbri and the Barro Group. The interim arrangements will take effect from 1 March 2024 and expire on 30 June 2024, with pricing terms that are reflective of the current market conditions. 19 On 22 March 2021, DWER notified CCL about a further investigation and on 24 January 2022, CCL received a prosecution notice charging it with six charges of the same offence, alleged to have occurred in the period from 21 January 2020 to 3 April 2020. CCL has entered a plea of not guilty to each charge. This prosecution has not yet been listed for trial. CCL has developed, and is continuing to refine, a strategy to reduce the occurrence and level of odour from its operations. This strategy draws on investigations that date back prior to 2019, and more recently a feed diversion trial in Kiln 6. CCL submitted its proposed strategy to DWER in mid 2023, and again in early 2024, and has applied for approval from DWER in the form of a licence amendment to enable it to implement the key parts of this strategy. CCL acknowledges the views of DWER and the community directly adjacent to its operations and has committed significant attention, time, and resources to: – Understand the feedback about odour in the community adjacent to its operations; – Review its operations; and – Engage with DWER about the feedback and its operations. Further information about the Group’s environmental performance is set out in the 2023 Sustainability Report available on the Adbri website. Likely developments and expected results of operations The Deputy Chair and Chief Executive Officer’s report, and the operating and financial review on pages 2 to 7 of this Annual Report refer to likely developments in Adbri’s operations in future financial years and the expected results of those operations. Please note that any information regarding likely developments and expected results of operations that would be likely to result in unreasonable prejudice to the Group has been omitted Environmental performance The Group’s operations are subject to various Commonwealth, State and Territory environmental regulation. Performance in relation to environmental regulation is monitored by site and business division. Information about the Group’s performance is reported to and reviewed by the Group’s senior management, the Board’s Safety, Health, Environment and Sustainability Committee, and the Board. The Group’s major operations have ongoing dialogue with the relevant authorities responsible for monitoring or regulating the environmental impact of Group operations. Group entities respond as required to requests made by regulatory authorities, including requests for action to be taken, for information to be provided, and for site inspections. During 2023, Group entities received regulatory notices issued by government authorities responsible for environmental matters. Group companies responded to regulatory notices as required and addressed issues raised by regulatory authorities. An update of previous reports on environmental matters concerning wholly owned, Cockburn Cement Limited (CCL) is set out below. CCL confirms that it has not received any notice alleging that it is currently in breach of its operating licence conditions. Cockburn Cement Limited On 29 July 2020, the Western Australian Department of Water and Environmental Regulation (DWER) charged CCL with 15 charges of causing an unreasonable emission (odour) from its operations at Munster, in the period from January to April 2019 under s49(5) of the Western Australian Environmental Protection Act 1986. CCL entered a plea of not guilty to each charge. Prior to the trial commencing in July 2022 – August 2022, DWER withdrew two of the fifteen charges. On 1 December 2022, CCL was found not guilty of seven charges, and guilty of six charges. In March 2023 a fine was imposed across all guilty charges, which on appeal was reduced to $245,000. Adbri 2023 Annual Report 20 Directors’ report continued Director profiles Raymond Barro BBus, CPA, FGIA, FCIS Chair Raymond was appointed Chair in May 2019. He has over 30 years’ experience in the premixed concrete and construction materials industry. As well as his significant industry insights, Raymond brings extensive leadership experience and financial expertise to the role. Raymond is Managing Director of Barro Group Pty Ltd. Raymond is a Fellow of the Governance Institute of Australia. Board member since August 2008 Member Safety, Health, Environment and Sustainability Committee Samantha Hogg BComm, MAICD Deputy Chair and Lead Independent Director Samantha has over 25 years’ experience across the transport, infrastructure, energy and resources sectors, domestically and offshore. In her previous role as Chief Financial Officer at Transurban Group, she was responsible for the financing and transaction governance of a number of large acquisitions and divestments, and provided key financial guidance and controls. She has held senior executive positions at Western Mining Company across a broad range of portfolios including finance, strategic projects, marketing and corporate services. She has also served as Chair or Committee Chair in both the public and private sectors, with a focus on the infrastructure and renewable energy sectors. More recently, she has been a member of the National COVID-19 Commission Advisory Panel and the Tasmanian equivalent, focusing on the social and economic recovery from the pandemic. Board member since March 2022 Chair Nomination and Governance Committee Member Audit, Risk and Compliance Committee Current Directorships Cleanaway Waste Management Limited (Appointed November 2019) IGO Limited (Appointed January 2023) Former Directorships DeGrey Mining Limited (Appointed January 2022, ceased October 2022) MaxiParts Limited (appointed April 2016, ceased March 2021) Rhonda Barro Non-executive Director Rhonda has over 45 years of extensive experience in the construction materials industry. She is a Director of Barro Group Pty Ltd and offers significant insights and a deep understanding of the industry through executive management and functional roles. She has detailed knowledge of stakeholder engagement, customer relations and sales in the construction materials sector. She has held numerous leadership roles in community organisations and is a Fellow of the Williamson Community Leadership Program. Board member since May 2019 Member People and Culture Committee Dean Jenkins BE (Aero) Hons, GAICD Independent Non-executive Director Dean has over 25 years’ experience in the transport, manufacturing, engineering, energy and resources sectors both domestically and overseas. Dean has held senior executive and leadership positions including Managing Director and Chief Executive Officer of MaxiPARTS Limited (previously called MaxiTrans), Chief Operating Officer and Executive Director of Weir Group PLC and CEO UGL Rail. His commercial management capability and experience in strategy, manufacturing and mineral processing markets brings valuable experience to his directorship. Board member since August 2022 Chair People and Culture Committee Member Safety, Health, Environment and Sustainability Committee, Nomination and Governance Committee Former Directorships MaxiParts Limited (Appointed February 2017, ceased September 2021) 21 Emma Stein BSc (Physics Hons), MBA, FUWS, FAICD Michael Wright B Eng (Civil), Master Eng Science, Harvard AMP Independent Independent Non-executive Director Non-executive Director Michael is an experienced director and executive with over 30 years’ experience across the global resources and industrial sectors in Australia, Asia, Africa and the Americas. He has held senior leadership and Chief Executive Officer positions in multinational mining services and contracting businesses covering multiple disciplines, including mining, construction, general engineering, environmental services and utility operations. He is currently Executive Chair and Chief Executive Officer of Thiess and was formerly Chief Executive Officer of ASX-listed CIMIC Group. Michael sits on the boards of University of Queensland’s Sustainable Minerals Institute, the Minerals Council of Australia, where he chairs the Safety & Health Committee, and is Chair of the International River Foundation. His extensive industry expertise, skillset and focus on safety and sustainability complement the mix of experience, skills, and knowledge of other Adbri Board members. Board member since June 2021 Chair Safety, Health, Environment and Sustainability Committee Member Nomination and Governance Committee Emma has held board and executive positions in Australia, NZ, the United Kingdom and Europe. Over her career, she has worked across the renewable and traditional energy, water catchment and assets, waste and the circular economy, mining services and resources, engineering, industrial and building materials sectors. Emma was awarded an Honorary Fellow by Western Sydney University for her service to the University. Having held senior roles, including as Chief Executive Officer, Emma is well-versed in capital investment decisions, mergers and acquisitions and risk management frameworks. She is particularly experienced balancing ESG perspectives with profitable outcomes, including finding optimum decarbonisation pathways for hard-to-abate industries and companies moving away from their traditional energy domains. Board member since October 2019 Chair Audit, Risk and Compliance Committee Member People and Culture Committee, Nomination and Governance Committee Current Directorships Worley Limited (Appointed December 2020) Former Directorships Alumina Limited (Appointed February 2011, ceased May 2021) Cleanaway Waste Management Limited (Appointed August 2011, retired December 2020) Infigen Energy Limited (Appointed September 2017. Delisted from ASX on 5 November 2020) Geoff Tarrant BBus Non-executive Director Geoff has extensive experience in the finance industry across Australia, the United Kingdom and Asia. He has particular expertise in mergers and acquisitions and capital markets. During his career, Geoff has held senior finance roles with Citigroup, National Australia Bank, Price Waterhouse and Deutsche Bank, where he was Vice Chairman Australia New Zealand for 17 years. As Executive Chairman and co-founder of a global construction and building operations software company, Zuuse Limited, he also brings valuable technology knowledge and experience to his directorship. Board member since February 2018 Member Audit, Risk and Compliance Committee Adbri 2023 Annual Report 22 Directors’ report continued Directors’ meetings The number of Directors’ meetings and meetings of committees of Directors held during the financial year and the number of meetings attended by each Director is as follows: Board meetings Audit, Risk & Compliance Committee People & Culture Committee Safety, Health, Environment & Sustainability Committee Nomination & Governance Committee Independent Board Committee6 Director RD Barro1 SL Hogg2 RR Barro1 VA Guthrie AO3 DS Jenkins4 ER Stein GR Tarrant1 MJM Wright5 A 11 13 11 2 13 13 11 11 H 13 13 13 2 13 13 13 13 A – 7 – – – 7 6 – A Number of meetings attended. H Number of meetings held during period of office. H – 7 – – – 7 7 – A – – 4 1 3 4 – 0 H – – 4 1 3 4 – 1 A 4 – – 1 3 – – 4 H 4 – – 1 3 – – 4 A – 1 – 1 1 2 – 2 H – 1 – 1 1 2 – 2 A – 1 – – 1 1 – 1 H – 1 – – 1 1 – 1 1. As announced to the ASX on 18 December 2023, Mr Barro, Ms Barro and Mr Tarrant did not attend these meetings as they recused themselves from the Board and all Board sub-committees while the proposal to acquire 100% of the shares in the Company that the Barro Group does not own by way of scheme of arrangement is under consideration. Mr Tarrant was unable to attend one Board Committee meeting due to personal reasons. 2. Ms Hogg was appointed to Deputy Chair and Lead Independent Director and Chair of the Nomination and Governance Committee both on 1 March 2023. 3. Dr Guthrie AO ceased as a Non-executive Director on 28 February 2023. 4. Mr Jenkins was appointed as People and Culture Committee Chair and as a member of the Safety, Health, Environment and Sustainability Committee both on 1 March 2023. 5. Mr Wright was unable to attend two Board meetings and one Board Committee meeting due to personal reasons. 6. As announced to ASX on 18 December 2023, the Company established an Independent Board Committee comprising its independent Non-executive Directors to evaluate the non binding indicative proposal to acquire 100% of the shares in the Company that the Barro Group does not own by way of scheme of arrangement and, if applicable, progress the transaction. Directors’ interests RD Barro SL Hogg RR Barro VA Guthrie AO DS Jenkins ER Stein GR Tarrant MJM Wright Ordinary shares 279,178,587 – 278,787,781 105,000 82,047 53,403 30,000 50,000 Full details of the interests in share capital of Directors of the Company are set out in the Remuneration report on pages 25 to 45. Director and Executive remuneration Details of the Company’s remuneration policies and the nature and amount of the remuneration of the Directors and certain senior executives are set out in the Remuneration report on pages 25 to 45. 23 Company Secretary Proceedings on behalf of the Company The Company’s principal Company Secretary is Marcus Clayton, who has been employed by the Company in the two separate offices of General Counsel and Company Secretary since 24 February 2003. He is a Fellow of the Governance Institute of Australia Ltd and a legal practitioner admitted in South Australia in 1987. The Company appointed Cathy Oster as Joint Company Secretary on 1 March 2023. She is a Fellow of the Governance Institute of Australia Ltd and a legal practitioner admitted in South Australia in 1989. Indemnification and insurance of officers Rule 9 of the Company’s constitution provides that the Company indemnifies each person who is or who has been an ‘officer’ of the Company on a full indemnity basis and to the full extent permitted by law, against liabilities incurred by that person in their capacity as an officer of the Company or of a related body corporate. Rule 9.1 of the constitution defines ‘officers’ to mean: – Each person who is or has been a Director, alternate Director or Executive officer of the Company or of a related body corporate of the Company who in that capacity is or was a nominee of the Company; and – Such other officers or former officers of the Company or of its related bodies corporate as the Directors in each case determine. Additionally, the Company has entered into Deeds of Access, Indemnity and Insurance with all Directors of the Company and its wholly-owned subsidiaries. These deeds provide for indemnification on a full indemnity basis and to the full extent permitted by law against all losses or liabilities incurred by the person as an officer of the relevant Company. The indemnity is a continuing obligation and is enforceable by an officer even if he or she has ceased to be an officer of the relevant Company or its related bodies corporate. The Company was not liable during 2023 under such indemnities. Rule 9.5 of the constitution provides that the Company may purchase and maintain insurance or pay or agree to pay a premium for insurance for ‘officers’ (as defined in the constitution) against liabilities incurred by the officer in his or her capacity as an officer of the Company or of a related body corporate, including liability for negligence or for reasonable costs and expenses incurred in defending proceedings, whether civil or criminal. During the year the Company paid premiums in respect of Directors’ and Officers’ Liability Insurance to cover the Directors and Secretaries of the Company and its subsidiaries, the Executives and any other Officers of each of the divisions of the Group, for the period 1 May 2023 to 30 April 2024. Due to confidentiality obligations under that policy, the premium payable and further details in respect of the nature of the liabilities insured against cannot be disclosed. No person has applied for leave of the Court, under section 247 of the Corporations Act 2001, to bring proceedings on behalf of the Company or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. The Company was not a party to any such proceedings during the year. Non-audit services The Company may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s experience and expertise with the Company and the Group are important. Details of the amounts paid or payable to the Company’s current auditors Deloitte Touche Tohmatsu for audit and non-audit services provided during the year are set out in Note 31 to the Financial Statements on page 105 of this report. The Board of Directors has considered the position and, in accordance with the advice received from the Audit, Risk and Compliance Committee, is satisfied that the provision of the non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The Directors are satisfied that the provision of non-audit services by the auditor, as set out in Note 31, did not compromise the auditor’s independence requirements of the Corporations Act 2001 for the following reasons: – All non-audit services have been reviewed by the Audit, Risk and Compliance Committee to ensure they do not impact the impartiality and objectivity of the auditor; and – None of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants. Auditor’s independence declaration A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 107. No Officer of the Company at any time during the year has held the role of director or partner of the Group’s current external auditor Rounding off The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ reports) Instrument 2016/191 relating to the ‘rounding off’ of amounts in the Directors’ report. In accordance with that instrument, amounts in the financial report and Directors’ report have been rounded off to the nearest one hundred thousand dollars, unless otherwise stated. Adbri 2023 Annual Report 24 Directors’ report continued Shares under option Expiry data Award Unissued ordinary shares under option relate to Awards associated with the Company’s Executive Performance Share Plan (including LTI grants and Deferred Rights under the Short Term Incentive Plan FY2022). Outstanding Awards at the date of this report are as follows: Date awards granted Expiry date 1 January 2020 1 January 2021 1 January 2022 1 January 2022 1 January 2023 1 June 2023 Total 30 September 2024 1 January 2036 1 January 2037 31 July 2025 1 January 2038 1 June 2030 2020 Award 2021 Award 2022 Award MD Performance Award 2023 Award STI FY2022 Number of ordinary shares under option relating to Awards 642,974 619,752 496,074 249,940 840,500 67,609 2,916,849 The exercise price for these Awards is nil. Further details of Awards are set out in Note 27 and the Remuneration report. Registered office The registered office of the Company is Level 4, 151 Pirie Street, Adelaide, South Australia 5000. Corporate governance statement The corporate governance statement is available on the Adbri Limited website and may be accessed via the following: https://www.adbri.com.au/who-we-are/corporate-governance/ Signed in accordance with a resolution of the Directors. Samantha Hogg Deputy Chair Dated: 27 February 2024 Remuneration report 25 People and Culture Chair’s letter Dear Shareholders On behalf of the Board and as Chair of the People and Culture Committee, I am pleased to present the Adbri Limited 2023 Remuneration Report. During the year in review, Adbri exceeded its financial targets and importantly demonstrated significant improvement in the underlying business’ profitability. Company performance The Board is pleased to announce that for the financial year ended 31 December 2023, Adbri delivered a 43.8% improvement in underlying net profit after tax excluding property profits and significant items (NPAT) of $111.7m. In addition, operating cash flow improved 29.2% and year-on-year revenue growth of 13.1% was also achieved. Improved earnings performance was driven by strong demand and pricing and cost discipline. After a challenging 2022 the renewed management team has implemented stronger pricing and operational disciplines, which are helping drive improved Group performance. While there are still opportunities for further improvement, the turnaround in a relatively short period is a credit to the team’s focus and commitment. The Group reported a 10% improvement in safety performance as we embed our culture of Work Safe, Home Safe. Sustainability continues to be a key priority for the Company to decarbonise operations and products, with the successful launch of lower carbon concrete and cement ranges, as well as a planned hybrid electric battery-capable limestone carrier from 2026 to support increased lower carbon production at Birkenhead. The Board thanks our management team and all our employees for their efforts on behalf of shareholders this year. Remuneration in 2023 Executive KMP fixed remuneration Executive KMP remuneration is reviewed on an annual basis with reference to the Group’s remuneration policy, market competitiveness and Company performance outcomes. No increase was made to Executive KMP Fixed Annual Renumeration (FAR) in 2023. Short-Term Incentive (STI) outcomes The Group’s financial targets for 2023 were set in November 2022, with STI targets set to significantly improve performance across the business and full achievement is only available when stretch targets are met. We continue to set strategic growth performance conditions for Executive KMPs to drive business priorities of safety, inclusivity and sustainability. The Board is delighted to report that management exceeded our financial targets, relating to Group NPAT, Group cash flow and divisional EBIT, and our emissions reduction targets. While our safety performance and workplace inclusivity both improved, we did not meet threshold on these measures this year. Overall, the Board is very pleased to be paying short term incentives in the range of 74% to 77% of maximum this year, reflective of our dramatically improved performance. No Board discretion was applied to actual performance results. Long-Term Incentive (LTI) outcomes Executive KMP alignment with shareholder interests is an important component of the Company’s remuneration policy, with long-term improvement in shareholder value embedded in the design of the LTI Plan. During 2023, the 2019 Award LTI was tested for both the Total Shareholder Return (TSR) and the Earnings Per Share (EPS) performance conditions. Notwithstanding our strong financial result in 2023, results against each of the performance conditions failed to meet the threshold for vesting over the four year performance period, and as a result, all awards under the 2019 Award LTI lapsed, without any vesting to Executive KMP. Non-executive Director fees Fees for the Chair and Non-executive Directors are reviewed annually to maintain market relativity and to ensure the continued attraction and retention of high calibre Directors. Following the 2022 review, the Board also took into consideration the financial and share price performance of the Company and awarded no increase in director fees for 2023 compared with 2022. Additional director fees were paid to Samantha Hogg who took on the role of Deputy Chair and Lead Independent Director, replacing Dr. Vanessa Guthrie AO, and for Dean Jenkins, who took on additional roles as Chair of the Board’s People and Culture Committee and member of its Safety, Health, Environment and Sustainability Committee. Adbri 2023 Annual Report 26 Remuneration report continued Executive Key Management Personnel (KMP) movements in 2023 In February 2023, the Board appointed Mark Irwin as Chief Executive Officer (CEO) under a fixed term contract to 1 October 2024, having led the Company as Interim CEO since 18 October 2022. During his tenure, Mark has focused on driving commercial performance to improve margins, offsetting cost pressures, and delivery on cost reduction and operational efficiency. As announced to the ASX on 8 February 2024, the Company and Mark have further agreed to extend his contract to 18 December 2024. The Board appointed Jared Gashel as Chief Financial Officer in July 2023. Jared is a valuable addition to the Adbri executive team, bringing a wealth of experience in our industry. We thank Dianne Mong, GM Finance, for stepping in as our Acting Chief Financial Officer for a period of transition. Former MD & CEO The former MD & CEO, Nick Miller, stepped down from his role in October 2022 at the Board’s request, to effect the change of leadership announced at that time, and completed his 12 months’ notice period in October 2023. He was not a KMP during the 2023 financial year. The following remuneration arrangements applied to the former MD & CEO upon cessation: – – – The former MD & CEO retained a pro-rata portion (based on performance period elapsed) of his unvested LTI Awards granted over the course of his tenure in accordance with the terms of the LTI. The LTI Awards remain on foot and may vest in the future to the extent relevant performance conditions have been met when tested at the end of the original performance periods, or otherwise in accordance with the terms of the LTI. The former MD & CEO also retained a pro-rata portion (based on performance period elapsed) of his unvested MD Performance Award. The Board determined to test the MD Performance Award at the cessation date, and based on performance achieved to date of cessation, 85% of the pro-rated Award vested. The Board determined to settle the vested Award in Shares, and therefore, based on the Share price at the time of cessation of $2 per share, the value of the Award at cessation was $499,880, representing approximately 33% of FAR. The former MD & CEO did not receive any STI in respect of the 2023 financial year and no other payment was made to him in respect of his cessation, other than statutory leave entitlements accrued and a contribution to his legal fees relating to separation arrangements. Changes to remuneration for 2024 Following a review in 2023, the Board has approved the following changes to Executive KMP remuneration from 2024: – – – In recognition of Company performance, inflation and market movement, a FAR increase of 3.5% will be made for the CEO, Chief Operating Officer – Cement & Lime, and the Chief Operating Officer – Concrete, Aggregates and Masonry; The deferred component of the STI will be delivered as a single tranche of deferred rights, with a two-year disposal restriction (in place of 50% of the deferred component being subject to a two-year disposal restriction and the remainder subject to a three-year disposal restriction). The disposal restriction will apply post-cessation of employment; and LTI will be measured against two equally weighted performance conditions, being relative TSR and Return on Capital Employed (ROCE), and performance will be measured over a three-year period (reduced from four). Subsequent to year end, and in light of the proposed transaction involving CRH and Barro Group announced to the ASX on 18 December 2023, the Board considers it prudent to put in place a cash retention payment for Executive KMP to aid with retention through the period of the transaction and to ensure continuity of management for Adbri. In particular, the Board has been mindful that, because of his fixed term appointment, the CEO does not participate in our LTI program, and also the CFO is a recent appointment and does not have significant amounts of unvested incentives on foot to encourage retention through this period of uncertainty. Conclusion Adbri’s remuneration structures have been designed to align executive outcomes with the shareholder experience over the long-term. The Board is pleased that remuneration outcomes in 2023, which have seen short term incentives earned at a good level and our 2019 long term incentives lapse not having reached the threshold level of performance, are aligned to the shareholder experience and reflect the Company’s performance over the relevant performance periods. Thank you for your interest in our Remuneration Report. Dean Jenkins Chair of People and Culture Committee 27 The Directors of Adbri Limited (the Company) present the Remuneration Report (Report) for the Company and the Group for the financial year ended 31 December 2023. The Report outlines the remuneration arrangements in place for the Key Management Personnel (KMP) of the Company and is prepared in accordance with section 300A of the Corporations Act 2001 (Cth). This Report, which forms part of the Directors’ Report, has been audited by Deloitte Touche Tohmatsu. 1 Key management personnel The KMP of Adbri comprise all Directors and those members of the Group Executive team who have authority and responsibility for the planning, directing and controlling the activities of the Group. In this Report, ‘Executive KMP’ refers to members of the Group Executive team identified as KMP. Name Executive KMP Mark Irwin Jared Gashel Brett Brown Andrew Dell Dianne Mong Peter Barker Position Status Date as KMP (if not full year) Chief Executive Officer (CEO)1 Chief Financial Officer (CFO) Full Year Part year Appointed 5 July 2023 Chief Operating Officer – Cement and Lime Chief Operating Officer – Concrete, Aggregates and Masonry Full year Full year Acting Chief Financial Officer2 Interim Chief Financial Officer Part year Ceased 4 July 2023 Part year Ceased 19 March 2023 Non-executive Directors Raymond Barro Samantha Hogg Rhonda Barro Dean Jenkins Emma Stein Geoff Tarrant Chair Deputy Chair and Lead Independent Director3 Non-executive Director Independent Non-executive Director Independent Non-executive Director Non-executive Director Michael Wright Independent Non-executive Director Full year Full year Full year Full year Full year Full year Full year Dr Vanessa Guthrie AO Deputy Chair and Lead Independent Director Part year Ceased 28 February 2023 1. Appointment as Chief Executive Officer effective 15 April 2023. Interim Chief Executive Officer from 17 October 2022 to 14 April 2023. 2. Appointed 20 March 2023. 3. Appointment as Deputy Chair and Lead Independent Director effective 1 March 2023. Independent Non-executive Director to 28 February 2023. Adbri 2023 Annual Report 28 Remuneration report continued 2 Remuneration governance The governance of remuneration outcomes is a key focus of the Board and the Board’s People and Culture (P&C) Committee. Remuneration policies are regularly reviewed to ensure that remuneration for Executive KMP continue to remain aligned to shareholder value. Our governance framework for determining Executive KMP and Non-executive Director remuneration is outlined below: Our governance framework Board P&C Committee Management The Board reviews and approves: – The overall remuneration policy; – Non-executive Director remuneration; – The remuneration of the CEO, including the CEO’s participation in the short-term and long-term incentive schemes; – Recommendations from the CEO on remuneration for Executive KMP (other than the CEO), including their participation in incentive schemes; and – Awards under incentive schemes, performance targets, assessment of the extent to which performance conditions have been satisfied. Consultation with shareholders and other stakeholders The P&C Committee review and make recommendations to the Board on: – The remuneration policies and framework for the Group; – Non-executive Director remuneration; and – Executive KMP incentive arrangements including setting targets and assessing performance. Provides information relevant to remuneration decisions and makes recommendations to the P&C Committee. Obtains remuneration information from external advisors to assist the P&C Committee (i.e., factual information, legal, accounting and tax advice). Remuneration consultants and other external advisors – Provide independent advice, information and recommendations relevant to remuneration decisions. – In performing their duties and making recommendations to the Board, the Chair of the P&C Committee seeks independent advice from external advisors on various remuneration related matters. – Any advice or recommendations provided by external advisors is used to assist the Board – it is not a substitute for the Board and P&C Committee process. 3 Executive KMP remuneration policy and framework 3.1 Remuneration policy The Board ensures the remuneration policy is clearly aligned with the Group strategy, which is focused on maintaining and growing long-term shareholder value. In determining Executive KMP remuneration, the Board has adopted a policy that is guided by the following principles. Remuneration principles Attract and retain Pay-for-performance Behaviours and culture Provide competitive rewards to attract and retain highly capable Executive KMP. Reflect the level of responsibility, potential and achievement for delivering to business strategy and results. Differentiate reward for behaviour and performance to reinforce our vision, strategy and operational objectives. Have regard to market practice and market conditions to attract the necessary skill sets, knowledge and diversity enabling the organisation to strategically foster the ‘One Adbri’ culture of transformation, growth and delivery. 29 Remuneration principles Shareholder alignment Market competitive Transparent Encourage sustainable long-term growth and value aligned to the interests of shareholders. Salary with benefits appropriately assessed and positioned against key national markets and peer comparator companies. Provide transparency and clarity on what, to whom and on what basis remuneration has been paid. Ensure rewards are appropriate for actual performance delivery and outcomes. 3.2 Total remuneration framework Adbri’s remuneration strategy is designed to attract, motivate and retain high-calibre individuals for achieving high performance and delivering solid, sustainable long-term results for shareholders, while conforming to rigorous governance and risk management principles. Executive KMP are rewarded based upon a total remuneration framework. The design of the framework is based upon our reward principles and is comprised of three components: fixed annual remuneration (FAR), short-term incentive (STI) and long-term incentive (LTI) as set out below. Executive KMP are also eligible for the receipt of shares issued in accordance with Adbri’s Tax Exempt Employee Share Plan (TEES Plan). See Note 27 of the Financial Statements for further details. FAR STI LTI Purpose Provide competitive base pay to attract and retain the skills needed to manage the business. To reward achievement of financial and non-financial performance targets linked to the Group’s annual business objectives. To focus Executive KMP on the Group’s long-term business strategy to create and protect shareholder value over a four-year performance period. Link to Adbri’s strategy and performance – Determined by the role’s scope and complexity, and the incumbent’s skills, experience, knowledge and capability. – Performance is assessed against a balanced scorecard, comprising financial and sustainability performance measures. – Set with reference to market benchmarks in the relevant and comparable industry sectors in Australia. – Financial performance measures are set with reference to market conditions, relevant industry performance, exchange rates and associated costs. – Sustainability performance measures include safety, diversity, emissions and operational excellence as a minimum. – Seeks to align Executive KMP remuneration with the Company’s strategic direction, thereby creating long-term shareholder value. Adbri 2023 Annual Report 30 Remuneration report continued 3 Executive KMP remuneration policy and framework continued 3.2 Total remuneration framework continued 3.2.1 Remuneration structure The following diagram sets out the remuneration structure and timing for delivery for Executive KMP (noting the CEO was not eligible to receive LTI grants in 2023). Year 1 Year 2 Year 3 Year 4 FAR 100% cash STI Subject to financial (70%) and non-financial performance (30%) 50% in cash 50% in deferred rights Base salary, statutory superannuation and other benefits/ allowances 50% cash 25% deferred rights Shares allocated on exercise subject to a disposal restriction 25% deferred rights Shares allocated on exercise subject to a disposal restriction LTI Subject to financial performance 100% performance rights (Awards) 50% subject to Total Shareholder Return (TSR) 25% subject to Earnings Per Share (EPS) 25% subject to Return on Capital Employed (ROCE) 3.2.2 Remuneration mix The following charts outline the target remuneration mix for Executive KMP in 2023. CEO1 Other Executive KMP (Avg) STI 55% FAR 45% STI 35% LTI 22% FAR 43% 1. CEO fixed term contract does not include an LTI component, hence the STI weighting to FAR. 4 2023 Executive KMP remuneration approach 4.1 Fixed annual remuneration FAR is reviewed annually having regard to relevant factors including performance, market conditions (both generally and in the markets in which the Group operates), growth and comparable roles within peer companies and similar roles across a comparator group comprising those companies in the ASX 51–150. No FAR increase was made for Executive KMP in 2023. Following the 2023 annual remuneration review, an increase of 3.5% to FAR will be made for the CEO, Chief Operating Officer – Cement & Lime, and the Chief Operating Officer – Concrete, Aggregates and Masonry in 2024. 31 4.2 Short-Term Incentive Adbri’s STI is the Company’s ‘at risk’ component of the total remuneration framework for Executive KMP. A summary of the key features of the 2023 STI is as follows: Feature General Eligibility Description The CEO and other Executive KMP who are able to have a direct impact on the Group’s performance against the relevant performance hurdles. Opportunity CEO: 120% of FAR. Other Executive KMP: 80% of FAR. The Interim and Acting CFO did not participate in the Executive STI Plan. The Acting CFO remained eligible for an STI Award under the Senior Leader STI Plan in relation to her ongoing role in GM Finance. Vehicle 50% of STI awards will be delivered in cash and 50% of STI awards will be deferred into rights (Deferred Rights) (unless otherwise determined by the Board). Performance conditions Overview The STI is assessed against a mix of financial (50–70%), and sustainability measures (30–50%) and is subject to a safety gateway. Financial measures are intended to align the interests of Executive KMP with shareholders, ensure they are rewarded on the Group’s annual business objectives and create sustainable value for shareholders from both earnings and cash flow. In approving financial targets under the STI, the Board considers a number of factors, including the industry in which we operate and the extraneous factors such as market conditions that impact our financial performance and those of our competitors. These include the dynamics of the construction and resources industries, exchange rates and cost considerations. Sustainability measures are based on stretch targets across a range of areas agreed with the Executive KMP in order to drive performance outside of pure financial results that contribute to long-term value creation for shareholders. Stretch targets provide incentives beyond budget to enhance shareholder returns. All performance conditions are set by the Board. Performance conditions and weightings The weightings of financial and strategy and sustainability performance conditions vary by role, as outlined below. Financial (50–70%) Performance condition Group underlying net profit after tax (NPAT) Divisional earnings before interest and tax (EBIT) Group free cash flow Kwinana Upgrade Project Safety Sustainability Inclusivity & Diversity (30–50%) Emissions Operational Excellence Group Executive KMP – CEO Group Executive KMP – CFO Divisional Executive KMP 50% 60% N/A 10% 10% 10% 10% 10% N/A N/A 10% N/A 10% 10% 10% N/A 25% 15% 10% N/A 10% 10% 10% 20% In addition, a modifier applies to the STI, which provides the Board a discretion to manage the performance on a range of factors, including fatalities. See Section 5.2.1 for further information on the 2023 STI performance conditions. Adbri 2023 Annual Report 32 Remuneration report continued 4 2023 Executive KMP remuneration approach continued 4.2 Short-Term Incentive continued Feature Description Calculation of awards Vesting schedule Timing of the award Deferred rights – disposal restrictions and dividends The portion of the STI subject to financial measures will vest progressively in accordance with the following scale: Financial target achieved STI % for financial target Below 95% 95% Between 95% and 110% 110% or above Nil 50% Pro rata 100% The portion of the STI subject to strategy and sustainability measures is set at a stretch level of performance. Sustainability target achieved STI % for strategy and sustainability target At threshold Between threshold and target At target Between target and stretch Stretch 80% Pro rata 100% Pro rata 120% Assessment of performance against the performance conditions will occur following finalisation of the Group’s full year results. If performance is below the threshold/ranking level for any performance condition, no portion of the STI subject to that condition will vest. The cash component is paid following the release of the Company’s full year results in February. The remainder of the award (the Deferred Rights) is made available as reasonably practicable after the announcement of the Company’s full year result based on the 10-day VWAP around the release of the Company’s annual results. Deferred Rights awarded as part of the 2023 STI are divided into two equal tranches: – The Deferred Rights in Tranche 1 and the shares acquired on their exercise may not be sold or otherwise disposed of until after 31 December 2025 (two-year disposal restriction); and – The Deferred Rights in Tranche 2 and the shares acquired on their exercise may not be sold or otherwise disposed of until after 31 December 2026 (three-year disposal restriction). No dividends (or voting rights) are received on the Deferred Rights during the disposal restriction period. On exercise, the Deferred Rights are converted to fully paid ordinary shares. The shares issued may not be sold or otherwise disposed of until the restriction period ends. During the restriction period, shares are eligible to receive dividends and attract voting rights. Governance Board discretion The Board has absolute discretion in relation to assessing performance and determining the amount, if any, of STI awards. Clawback The STI Plan Rules provide the Board with a broad ability to clawback awards if considered appropriate. In addition to the STI Plan Rules, the Board also has a formal Clawback Policy which provides the Board with the ability to reduce, forfeit or require repayment of incentives which vest (or may vest) in the case of a material misstatement in Company financial results, serious misconduct by a participant or in circumstances where incentive awards or vesting is based on incorrect information not of a financial nature. 33 Feature Description Cessation of employment or a change of control Cessation of employment Where an Executive KMP resigns or is terminated for cause, all STI entitlements will be forfeited. In all other circumstances, a pro-rata portion of the STI (based on the proportion of the performance period elapsed) will remain on foot and may be paid at the end of the performance period, to the extent that the applicable performance conditions are satisfied at that time. Any amount achieved by the Participant is paid in cash and no portion will be delivered as Deferred Rights. Deferred Rights that have not yet been exercised, must be exercised within the earlier of 60 days of cessation or the date that they lapse. Awards which are not exercised within that period will lapse. Shares allocated upon exercise will not be subject to any disposal restrictions. Disposal restrictions will cease for all relevant shares at the date of cessation. The Board retains discretion to determine a different treatment. Change of control On a change of control, a pro-rata portion of the STI (based on the proportion of the performance period elapsed) may be paid, to the extent the applicable performance conditions are satisfied at that time. Where a Participant holds Deferred Rights, the Deferred Rights must be exercised within 30 days of the relevant event occurring, or such other period determined by the Board, otherwise they will lapse. All Shares allocated in respect of Deferred Rights that are subject to disposal restrictions under the Plan, will be released from all such restrictions. The Board retains discretion to determine a different treatment. 4.3 Long-Term Incentive Adbri’s Executive Performance Share Plan (LTI) seeks to reward Executive KMP for creating strong shareholder value over the medium and longer term relative to the market. A summary of the key features of the 2023 Award LTI are as follows: Feature General Eligibility Description The LTI is offered to Executive KMP whose behaviour and performance have a direct impact on the Group’s long-term performance. Opportunity CEO: Not eligible to participate in 2023. Other Executive KMP: 50% of FAR. Adbri 2023 Annual Report 34 Remuneration report continued 4 2023 Executive KMP remuneration approach continued 4.3 Long-Term Incentive continued Feature Vehicle Description Rights to receive fully paid ordinary shares in Adbri (Awards) is calculated based on the LTI opportunity divided by the VWAP of shares 5 days prior to and following the full year result. Performance conditions, vesting and exercise Performance conditions and weightings Awards will only vest to the extent the following performance conditions are met over the four-year period from 1 January 2023 to 31 December 2026: – Total Shareholder Return (TSR) – 50% weighting; – Earnings Per Share (EPS) – 25% weighting; and – Return on Capital Employed (ROCE) – 25% weighting. The 2023 Award LTI performance conditions are outlined below. Following the annual Company results announcement concerning the final year of the performance period, the Board will evaluate and test performance against each performance condition to determine the extent to which the 2023 Award LTI vests. Condition Detail and vesting schedule TSR (50% weighting) The Company’s TSR growth over the performance period to equal or exceed the growth in the median company in a bespoke comparator group, being a select group of 21 companies on the S&P/ASX that Adbri competes with for capital and talent. TSR has been chosen because it provides a link between Executive KMP remuneration and changes in value experienced. The peer group for the TSR performance condition is composed of the following companies: Boral Limited Iluka Resources Limited Orica Limited Brickworks Limited Incitec Pivot Limited Orora Limited CSR Limited James Hardie Industries plc Oz Minerals Limited Downer EDI Limited Lendlease Group Regis Resources Limited Evolution Mining Limited Mineral Resources Limited Fletcher Building Limited Northern Star Resources Limited Reliance Worldwide Corporation Ltd Sims Limited IGO Limited Nufarm Limited St Barbara Limited TSR growth will be measured using average share price over the three months ending 31 December 2023 and 31 December 2026 respectively. TSR rank in bespoke peer group Less than 50th percentile Equal to 50th percentile Awards subject to TSR condition that vest (%) 0% 50% Between 50th and 75th percentile Pro-rata between 50% and 100% At or above 75th percentile 100% 35 Feature Description Performance conditions and weightings continued Condition Detail and vesting schedule EPS (25% weighting) The compound annual growth in the Company’s EPS over the performance period to equal or exceed 5% p.a., based on the actual EPS disclosed in the audited annual accounts of the Company for financial year ended 31 December 2023 (as the EPS ‘base point’) and the financial year ended 31 December 2026. The Board retains discretion to adjust earnings across the performance period for individually material items. EPS has been chosen because dividends form a fundamental value proposition to shareholders in the sector in which Adbri operates. EPS Less than 5% At 5% Between 5% to 10% At 10% or greater Awards subject to EPS condition that vest (%) 0% 50% Pro-rata between 50% and 100% 100% ROCE (25% weighting) The average of the Company’s ROCE in each year over the performance period to equal or exceed 0.5% p.a. below the average of each annual budget ROCE over the relevant period. The Board will retain absolute discretion to adjust earnings (e.g., due to acquisitions, restructuring, capital expenditure) and funds employed across the performance period when testing ROCE. ROCE has been chosen to ensure that near term decision making delivers benefits to shareholders over the longer term. ROCE More than 0.5% p.a. below average of annual budget ROCE 0.5% p.a. below the average annual budget ROCE Between 0.5% p.a. and 0.5% p.a. above the average annual budget ROCE Awards subject to ROCE condition that vest (%) 0% 50% Pro-rata between 50% and 100% Above 0.5% p.a. or higher than the average of annual budget ROCE 100% The Board retains discretion to adjust the performance conditions or vesting schedules in exceptional circumstances to ensure a participant is neither advantaged nor disadvantaged by matters that may materially affect achievement of the performance conditions. Exercise of Awards Following testing of the performance conditions, vested awards will be automatically exercised. One fully paid ordinary share in Adbri (Share) will be allocated for each vested award. Awards are granted at no cost to Executive KMP and no amount is payable by Executive KMP on the exercise of the awards. Holding period To strengthen the alignment between the interests of the shareholders and Executive KMP, as well as encourage a focus on longer term shareholder value, a one-year holding period will apply to Shares allocated upon vesting of awards, commencing from the date of allocation. Adbri 2023 Annual Report 36 Remuneration report continued 4 2023 Executive KMP remuneration approach continued 4.3 Long-Term Incentive continued Feature Description Governance Clawback The rules of the Plan provide the Board with the ability to clawback awards or Shares if considered appropriate. In addition to the rules of the Plan, the Board also has a formal Clawback Policy which provides the Board with the ability to reduce, forfeit or require repayment of incentives which vest (or may vest) in the case of a material misstatement in Company financial results, serious misconduct by a participant or in circumstances where incentive awards or vesting is based on incorrect information not of a financial nature. Other conditions An Executive KMP’s entitlement to shares under an Award may also be adjusted to take account of capital reconstructions and bonus issues. The rules of the Plan contain a restriction on removing the ‘at risk’ aspect of the instruments granted to Executive KMP. Plan participants may not enter into any transaction designed to remove the ‘at risk’ aspect of an instrument before it becomes exercisable (e.g., hedging the awards). Under the Company’s Share Trading Policy, Company securities acquired under an incentive plan must never be hedged prior to vesting or while subject to a holding lock of similar dealing restriction. Until the awards vest, Executive KMP have no legal or beneficial interest in Shares, no entitlement to receive dividends and no voting rights in relation to any securities granted under the 2023 Award LTI, or any of the other Awards. Any Shares allocated to Executive KMP following exercise of an award may only be dealt with in accordance with the Company’s Share Trading Policy and are subject to the generally applicable insider trading prohibitions. Cessation of employment or a change of control Cessation Where an Executive KMP resigns or is terminated for cause, all LTI entitlements will be forfeited. In all other circumstances, a pro-rata portion of the LTI (based on the proportion of the performance period elapsed) will remain on foot and may be paid at the end of the performance period, to the extent the applicable performance conditions are satisfied at that time. The Board retains discretion to determine a different treatment. Change of control On a change of control, a pro-rata portion of the LTI (based on the proportion of the performance period elapsed) may vest, to the extent the applicable performance conditions are satisfied at that time. The Board retains discretion to determine a different treatment. 5 Linking Executive KMP remuneration to Company performance 5.1 Company performance The Group delivered underlying NPAT attributable to members excluding property profits and significant items of $111.7 million for the year ended 31 December 2023, 43.8% higher than the prior year, and a statutory NPAT attributable to members of $92.9 million, 9.5% lower than the prior period which benefited from $46.2 million of property and Rosehill plant, property and equipment earnings. Revenue grew by 13.1% year-on-year to $1.92 billion, mainly attributed to improved pricing and strong demand during the year. Our improved earnings performance highlights the effectiveness of the efficiency initiatives we implemented during the year, including: – – – Implemented a decentralised business model with a focus on pricing and cost management discipline Improved safety performance, with TRIFR1 improving 10% to 7.1 from 31 December 2022 Progressed the Kwinana Upgrade project, which is over 70% complete as at 31 January 2024 – Solid price traction across all product lines resulting in margin expansion 1. Total Reportable Injury Frequency Rate (TRIFR) is the number of recordable injuries per million of man hours worked, including employees and contractors. 37 The Group’s cash flow generation also improved on the back of the improved business performance. Due to the continued investment in the KWUP, net debt increased to $682.1m on 31 December, representing a leverage ratio1 of 2.2 times underlying EBITDA2. The Board has decided not to declare a final dividend considering the capital requirements for the Kwinana Upgrade and elevated leverage. Five-year summary of key financial performance metrics of the Company is set out below. 2019 1,517.0 2020 2021 2022 2023 CAGR% 1,454.2 1,569.2 1,700.3 1,922.9 $m $m $m $m $/share cents/share % $m cents Sales NPAT reported attributable to members NPAT underlying attributable to members including property NPAT underlying excl. property attributable to members Share price Dividends declared Franking Operating cash flow Basic earnings per share Basic earnings per share (underlying) 5.2 STI 47.3 93.7 116.7 102.6 92.9 123.0 115.6 119.1 118.0 106.6 123.0 3.46 5.0 100.0 193.2 7.3 114.9 3.35 12.0 100.0 256.2 14.4 113.0 2.82 12.5 100.0 195.2 17.9 77.7 1.66 5.0 100.0 166.4 15.7 111.7 3.00 – 100.0 215.0 14.2 cents 18.9 17.6 17.3 11.9 17.1 5.2.1 Performance assessment STI outcomes reflect Executive KMP accountability for performance outcomes delivered throughout the year. In respect of financial targets, the Board compares the actual results against the budget for the reporting year and assesses the degree to which the Group meets targets. For the CEO and other Executive KMP, the Board considers performance against the agreed strategy and sustainability targets. Performance condition Reason chosen Performance assessment Financial performance – 50–70% weighting NPAT is used as the primary condition for measuring Group financial performance as it closely reflects shareholder experience. Group underlying NPAT achieved was significantly above the STI target due to improved business performance across all business divisions. Group NPAT Underlying excluding property profits and significant items Divisional EBIT The Chief Operating Officers of the operational divisions have a component of the STI attributed to the contribution of their division (including significant Joint Ventures), which is assessed using EBIT. The Cement and Lime division achieved significantly above the STI performance target. 100% The Concrete, Aggregates and Masonry division achieved significantly above the STI performance target. Business performance achieved through strong market demand, pricing discipline and operational efficiency initiatives. 1. Leverage ratio – net debt/underlying EBITDA (excludes property profits and significant items). Net debt is inclusive of capitalised borrowing costs. 2. Underlying measures exclude property profits and significant items. 6.1 18.4 (3.5) (2.4) (3.5) (100.0) 0.0 2.7 18.1 (2.5) Vesting outcome 100% Adbri 2023 Annual Report 38 Remuneration report continued 5 Linking Executive KMP remuneration to Company performance continued 5.2 STI continued 5.2.1 Performance assessment continued Performance condition Group free cash flow excluding KWUP capex and property Reason chosen Performance assessment Free cash flow recognises the importance of cash management to drive shareholder value through an ability to return capital to shareholders. The Group free cash flow significantly achieved above the STI target. This is due to improved business performance and focus on cash management. Kwinana Upgrade Project (CEO) Significant investment has been made in the Kwinana Upgrade Project, and delivery of the Kwinana Upgrade Project is crucial to Adbri’s future cement production. Status of the Kwinana Upgrade Project is on schedule to meet the revised project target budget and timelines after detailed assessment by management and the Board. Sustainability performance – 30–50% weighting Safety Drive improvements in safety from December 2022 The health and safety of our people is our number one priority. In addition, a Visual Leadership metric applies to the 2023 STI. Executive KMP are required to complete and document Visual Leadership walks throughout the year. Improvements have been made in our lead indicator areas and a 10% improvement in Total Recordable Injury Frequency Rate (TRIFR) compared to last year. However, the TRIFR target was not met. Inclusivity Reduce female attrition To support the achievement of the Company’s long-term targets with respect to female participation in the workforce our focus was retaining female talent in our operations. Female participation increased from 16% in 2022 to 18.5%. However, target to reduce female attrition was not met. Emissions Reduced Scope 1 and 2 emissions To support our long-term goal of becoming Net-Zero by 2050, year-on-year reduction of our Scope 1 and 2 emissions is a focus across our operations. CY2023 absolute scope 1 and 2 emissions of 1,886,498 tCO2e represents a 10% reduction against FY22 scope 1 and 2 emissions of 2,105,996 tCO2e, exceeding our stretch target. Vesting outcome 100% 60% 0% 0% 120% Operational excellence To support key priority deliverables to drive revenue, cost and key project outcomes. COO key performance outcomes were mostly met with stretch improvement on sales margins, market growth, and customer contractual terms. 83%–85% 39 5.2.2 2023 STI outcomes In 2023, for all financial targets (other than Kwinana), actual performance achieved was above the stretch target. Accordingly, a 100% payout for financial performance is reflective of the Executive KMP’s contributions in 2023. Kwinana Upgrade Project achieved target scheduled delivery and budget and therefore a 60% payout was achieved. For sustainability, the emissions target achieved above the stretch target and safety and diversity did not meet the threshold targets. The table below summarises the STI outcomes for Executive KMP for 2023. The Interim CFO and Acting CFO were not eligible to participate in the 2023 Executive STI. Maximum STI opportunity1 $ Actual STI as % of STI maximum % ACTUAL STI PAID IN THE FORM OF Lapsed STI % Actual STI total $ Equity deferred (2-years) $ Equity deferred (3-years) $ Cash STI $ 1,717,200 240,460 471,658 469,368 – 42,593 74 77 74 75 – 94 26 233 26 26 – 6 1,263,600 631,800 315,900 315,900 186,016 93,008 46,504 46,504 349,739 174,869 349,812 174,906 87,435 87,453 87,434 87,453 – – 39,930 39,930 – – – – Executive KMP Current Mark Irwin2 Jared Gashel3 Brett Brown Andrew Dell Former Peter Barker Dianne Mong4 1. The maximum STI opportunity is calculated on the basis of full year FAR, unless the Executive KMP joined partway through the year, in which case the calculation is pro rata. 2. The CEO’s participation in the 2023 STI is for the full 2023 year in recognition of his ongoing contributions as Interim CEO. 3. The CFO’s participation in the 2023 STI is prorata. Lapsed STI for the CFO is calculated based on a pro rata basis. 4. The Acting CFO STI is calculated on 30% of FAR on a pro rata basis. The STI is assessed on a mix of Company financial (70%) and individual performance (30%) KPIs. Adbri 2023 Annual Report 40 Remuneration report continued 5 Linking Executive KMP remuneration to Company performance continued 5.3 LTI In 2023, Adbri tested the 2019 LTI Award for vesting against the TSR and EPS performance conditions and it was determined that performance over the four-year performance period failed to meet the threshold for vesting performance conditions, without any vesting to Executive KMP. Performance condition Weighting Performance assessment TSR EPS 50 50 Adbri’s TSR growth was negative 62.7 percent placing the Company’s percentile at 4.97, which is below the vesting threshold for TSR of 50. The compound annual growth in EPS over the performance period of negative 49.6% on an underlying basis and negative 56.3% on a statutory basis was below the vesting threshold for EPS of 5.0 Result 0 0 There was no Board discretion applied to the performance result. Executive KMP Current Mark Irwin1 Jared Gashel Brett Brown Andrew Dell Former Peter Barker Dianne Mong Held at 1 Jan 2023 Number Granted during the year2 Number – – 289,202 262,377 – 81,888 160,622 159,842 – – – – Awards Exercised/ vested during the year3 Number Lapsed/ forfeited during the year4 Number Held at 31 Dec 20235 Number Value of 2023 awards at grant date6 $ Fair value of 2023 award at grant date $/Award Value per share at the date of exercise7 $ – – – – – – – – – – 81,888 113,825 (44,146) 405,678 195,958 (34,301) 387,918 195,008 – – – – – – – 1.39 1.22 1.22 – – – – – – – – 1. For completeness, the CEO was not eligible to participate in the LTI. 2. This represents the maximum number of Awards granted in 2023 that may vest to each Executive KMP. The Awards were granted between 13 June 2023 to 20 July 2023. As the Awards granted in 2023 only vest on satisfaction of performance conditions which are to be tested in future financial periods, none of these Awards vested or were forfeited during the year. At the end of the applicable performance period, any Awards that have not vested will expire. 3. During the 2023 year, only the 2019 LTI Awards were eligible for vesting. The threshold conditions for vesting of these Awards were not met and all 2019 LTI Awards lapsed. The number of Awards that vested during the period and were exercisable at 31 December 2023 is nil. The number of Awards that vested but were not yet exercisable at 31 December 2023 is nil. 4. This includes the portion of 2019 LTI Awards that reached the end of their performance period on 31 December 2022 that did not meet the performance conditions and were forfeited. 5. Awards subject to performance conditions which remain unvested (2020, 2021, 2022 and 2023 LTI Awards), and which will be tested for vesting during the period 2024 to 2027. 6. Fair value of Awards granted during 2023 as at grant date. 7. The value per share at the date of exercise is the Volume Weighted Closing Price which is the average of the closing price and number of Adbri Limited shares traded on the Australian Securities Exchange for the five trading days before the exercise date, but not including the day of exercise. The aggregate value of Awards that vested during the year is nil. 41 6 Non-executive Directors’ fees 6.1 Policy and approach to setting Director fees Feature Description Overview of policy Non-executive Directors receive a base fee in relation to their service as a Director of the Board, and an additional fee for membership of, or for chairing a committee. Aggregate fees approved by shareholders Base fees for 2023 No fees are payable to Non-executive Directors for service on the Nomination and Governance Committee. The total amount of fees paid to Non-executive Directors is determined by the Board on the recommendation of its P&C Committee within the maximum aggregate amount approved by shareholders. The remuneration of Non-executive Directors consists of Directors’ fees, committee fees and superannuation contributions. These fees are not linked to the performance of the Group in order to maintain the independence and impartiality of Non-executive Directors. In setting fee levels, the P&C Committee takes into account: – Independent professional advice; – Fees paid by comparable companies; – The general time commitment and responsibilities involved; and – The level of remuneration necessary to attract and retain Directors of a suitable calibre. Total fees, including committee fees, were set within the maximum aggregate amount of $1,600,000 per annum, approved at the 2017 Annual General Meeting. Fees for the Chair and Non-executive Directors are reviewed annually and considered against peer companies. In 2023, no increase was applied given uncertain trading conditions at the start of 2023 and to maintain market relativity. Fees payable to Non-executive Directors are inclusive of contributions to superannuation. The table below provides the annual fees payable to Directors. Base fees including super (Board) Chair Deputy Chair and Lead Independent Director Non-executive Director Committee fees including super $ 135,517 271,034 135,517 Committee Chair $ Committee Member $ Fee for each committee except Nomination and Governance Committee 31,273 15,637 Nomination and Governance Committee 0 0 In accordance with the Company’s constitution, Directors are also permitted to be paid additional fees for special duties or exertions. Such fees may or may not be included in the aggregate amount approved by shareholders, as determined by the Directors. No such fees were paid during the year. Directors are also entitled to be reimbursed for all business-related expenses, including travel, as may be incurred in the discharge of their duties. Adbri 2023 Annual Report 42 Remuneration report continued 6 Non-executive Directors’ fees continued 6.2 Non-executive Directors’ minimum shareholding requirement Adbri’s Non-executive Director Minimum Shareholding Policy enhances Board alignment with shareholder interests and encourages Non-executive Directors to accumulate and maintain a meaningful level of ownership in Adbri. During their tenure on the Board, Non-executive Directors are expected to acquire (within five years of their appointment or within five years of the policy being adopted, whichever is later) a shareholding equivalent in value to one year’s base fees (Minimum Shareholding) and thereafter to maintain at least that level of shareholding throughout their tenure. Non-executive Directors who are in office when this policy was adopted will have five-years from July 2018 to achieve the minimum shareholding requirement. Details of the current shareholdings for Non-executive Directors as at 31 December 2023 are provided in Section 8.1 of this report. 6.3 Non-executive Directors’ statutory remuneration Fees and allowances Directors’ base fees (incl. superannuation) Committee fees (incl. superannuation) Non-executive Director Current Non-executive Directors Raymond Barro Rhonda Barro Geoff Tarrant Emma Stein Michael Wright2 Dean Jenkins3 Samantha Hogg4 Former Non-executive Directors Dr Vanessa Guthrie AO5 Ken Scott-Mackenzie Year 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2022 135,517 135,517 135,517 135,517 135,517 135,517 135,517 135,517 135,517 135,517 135,517 48,609 248,448 103,115 45,172 271,034 56,465 Post- employment benefits superannuation contributions1 14,671 14,052 14,671 14,052 14,671 14,052 17,707 16,959 16,436 16,416 16,964 4,619 24,686 10,568 – – 6,910 Total 151,154 151,154 151,154 151,154 151,154 151,154 15,637 15,637 15,637 15,637 15,637 15,637 46,910 182,427 46,910 182,427 33,879 169,396 40,928 176,445 39,092 174,609 – 48,609 15,637 264,085 9,710 112,825 7,818 52,991 46,910 19,546 317,944 76,011 1. Superannuation contributions are made on behalf of Non-executive Directors which satisfy the Group’s obligations under applicable Superannuation Guarantee Charge legislation. 2. Mr Wright ceased as a member of the People and Culture Committee effective 1 March 2023. 3. Mr Jenkins was appointed as People and Culture Committee Chair and as a member of the Safety, Health, Environment and Sustainability Committee both effective 1 March 2023. 4. Ms Hogg was appointed Deputy Chair and Lead Independent Director and Chair of Nomination and Governance Committee both effective 1 March 2023. 5. Dr Guthrie AO ceased as a Non-executive Director effective 28 February 2023. 43 7 Executive KMP service agreements and statutory remuneration tables 7.1 Executive KMP service agreements The remuneration and other terms of employment for KMP are set out in formal employment contracts referred to as ‘Service Agreements’. The key terms of the Executive Service Agreements are outlined below: Notice period CEO Other Executive KMP Ongoing term of service with six-months’ (during 2023) or three-months’ (during 2024) notice by either party (or payment in lieu). Where employment is terminated for cause during the Term, the Company may terminate without notice. Ongoing term of service with six-months’ notice by either party (or payment in lieu). Where employment is terminated for cause during the Term, the Company may terminate without notice. Adbri 2023 Annual Report 44 Remuneration report continued 7 Executive KMP service agreements and statutory remuneration tables continued 7.2 Executive KMP statutory remuneration The following statutory table sets out the statutory accounting expense in whole dollars of all remuneration-related items for Executive KMP and has been prepared in accordance with the accounting standards and has been audited. Short-term benefits Equity based benefits Year FAR1 Cash STI2 Other Benefits Post- employ- ment benefit Super- annua- tion3 Deferred STI2 TEE4 LTI5 Total Executive KMP Mark Irwin 2023 1,160,845 631,800 Jared Gashel Brett Brown Andrew Dell 2022 2023 2023 2022 2023 2022 Former Executive KMP Dianne Mong8 Peter Barker9 2023 2023 219,000 – 269,455 93,008 529,854 174,869 531,770 53,151 – – – – – 20,022 631,800 – – 13,699 93,008 26,346 174,869 24,430 53,150 527,154 174,906 5,6607 26,346 174,906 528,498 26,568 – 25,002 26,568 134,518 39,930 162,000 2022 104,000 – – – – – 7,457 – – – – – – – – 999 959 999 959 – – – – 2,444,467 – 219,000 11,159 480,329 40,168 947,106 30,796 694,7256 42,810 952,782 (786) 606,809 – 181,905 – – 162,000 104,000 Nick Miller10 2022 1,221,732 93,726 1,838,75811 21,229 93,726 959 444,040 3,714,171 Theresa Mlikota 2022 597,416 – 823,41511,12 20,988 – 959 (87,151) 1,355,628 1. FAR is prorated for the period the individuals are Executive KMP. FAR for Mr Gashel, Ms Mong and Mr Barker is therefore pro-rated according to the KMP service period. 2. STI includes amounts relating to performance accrued at the end of each year but not paid until the subsequent year. 3. Includes Company contributions to superannuation and allocations by employees made by way of salary sacrifice of fixed remuneration. 4. The TEES refer to the Adbri Limited Tax-Exempt Employee Share Plan. the Plan offers eligible employees up to $1,000 of Adbri shares. Eligible employees are permanent (full or part-time employees) who have two or more years’ service as at 31 December of the year prior to the offer and have not resigned on or before the date of award. 5. In accordance with the requirements of the Accounting Standards, remuneration includes a proportion of the notional value of equity compensation granted or outstanding during the year. The notional value of equity instruments is determined as at the grant date and is progressively allocated over the vesting period. The amount included as remuneration is not related to or indicative of the benefit (if any) that the individual Executive KMP may ultimately realise should the equity instruments vest. The notional value of Awards as at the date of their grant has been determined in accordance with the accounting policy Note 28. 6. Percentage of remuneration for the financial year which consists of the amortised annual value of Awards issued under the Adbri Limited Executive Performance Share Plan. 7. Other benefits include service award payment in recognition of years of service to the Company. 8. Ms Mong ceased as Executive KMP on 4 July 2023. Remuneration was paid in full and no additional entitlements arise during the period. 9. Mr Barker ceased as Executive KMP on 19 March 2023. Remuneration was paid in full and no additional entitlements arise during the period. 10. MD Performance Awards granted to Mr Miller in 2022, vested in 2023 at fair value of $612,103. 11. Amounts related to the 2022 accrual of notice periods and other accrued entitlements includes monthly salary paid to Mr Miller and Ms Mlikota during their notice periods (17 October 2022 – 15 October 2023 and 11 November 2022 – 2 May 2023 respectively) and accrued annual leave. Neither Mr Miller nor Ms Mlikota have vested long service leave. These amounts are not termination benefits. See footnote 12 for further detail on the former CFO’s arrangements. 12. This includes payments totalling $345,704 made to Ms Mlikota over the six month period following cessation of employment, in respect of contractual post- employment restrictions. These amounts are considered termination benefits. Percent- age of remun- eration consist- ing of awards6 – – 2.3 4.2 4.4 4.5 (0.1) – – – 12.0 (6.4) 45 8 Additional statutory disclosures 8.1 Equity holdings of Executive KMP A summary of Executive KMP current shareholdings in the Company as at 31 December 2023 is set out below. The balances reported include shares held directly, indirectly, or beneficially by each Executive KMP or close members of their family or an entity over which the person or the family member has either direct or indirect control, joint control, or significant influence as at 31 December 2023. While the Board has introduced minimum shareholding guidelines for Non-executive Directors, the Board considers Executive KMP’s interests are aligned to those of our shareholders through the LTI and STI Deferral (as the LTI and STI Deferral are subject to share price fluctuations). The Board continues to review alignment as part of the design of future Executive KMP incentives. Current Executive KMP Mark Irwin Jared Gashel Brett Brown Andrew Dell Current Non-executive Directors Raymond Barro1 Rhonda Barro2 Geoff Tarrant Emma Stein Michael Wright Dean Jenkins Samantha Hogg Former Executive KMP Dianne Mong Peter Barker Balance at beginning of year – – 107,837 67,537 279,178,329 278,787,781 30,000 53,403 50,000 57,500 – – – Former Non-executive Directors Dr Vanessa Guthrie AO 105,000 Granted as remuneration during the year LTI TEES Deferred STI Net movement due to other changes – – – – – – – – – – – – – – – – 578 578 – – – – – – – – – – – – 03 04 – – – – – – – – – – Balance at end of year – – 108,415 68,115 – – – – 258 279,178,587 – – – – 278,787,781 30,000 53,403 50,000 24,547 82,047 – – – – – – – 105,000 1. The balances relating to Mr Barro include shares owned by entities over which Mr Barro has a significant influence, or which he jointly controls, but he does not control these entities himself. 2. The balances relating to Ms Barro include shares owned by entities over which Ms Barro has a significant influence, or which she jointly controls, but she does not control these entities herself. 3. 30,698 2022 Deferred STI rights were granted to Mr Brown during the year but was not exercised (and therefore not converted to shares) at 31 December 2023. 4. 15,344 2022 Deferred STI rights were granted to Mr Dell during the year but was not exercised (and therefore not converted to shares) at 31 December 2023. 8.2 Loans and other transactions There are no loans to KMP outstanding in the current or prior year. All other transactions with KMP and their related entities and other related parties are conducted on an arm’s length basis and made on normal commercial terms and conditions. Adbri 2023 Annual Report 46 Consolidated income statement For the year ended 31 December 2023 Continuing operations Revenue from contracts with customers Cost of sales Freight and distribution costs Gross profit Other income Marketing costs Administration costs Finance costs Impairment Share of net profits of joint ventures and associate accounted for using the equity method Profit before income tax Income tax expense Profit for the year Profit is attributable to: Equity holders of the company Non-controlling interests Earnings per share for profit from continuing operations attributable to the ordinary equity holders of the Company: Basic earnings per share Diluted earnings per share Consolidated 2023 $M 2022 $M Notes 5 5 6 2(b), 15(c) 22(b) 7(a) 1,922.9 (1,282.5) 1,700.3 (1,155.1) (377.4) 263.0 9.1 (22.2) (110.6) (28.3) (12.4) 29.0 127.6 (34.8) 92.8 92.9 (0.1) 92.8 (351.8) 193.4 72.5 (21.6) (101.5) (23.9) (6.3) 24.0 136.6 (34.1) 102.5 102.6 (0.1) 102.5 Cents Cents 4 4 14.2 14.1 15.7 15.6 The above Consolidated Income Statement should be read in conjunction with the accompanying notes. Consolidated statement of comprehensive income 47 For the year ended 31 December 2023 Profit for the year Other comprehensive income Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations Changes in the fair value of cash flow hedges Income tax relating to these items Items that will not be reclassified to profit or loss Actuarial gain on retirement benefit obligation Other comprehensive (loss)/income for the year, net of tax Total comprehensive income for the year Total comprehensive income for the year is attributable to: Owners of the Company Non-controlling interests Total comprehensive income for the year Notes 20(a) 20(a) 7(c) 26(b) Consolidated 2023 $M 92.8 2022 $M 102.5 (2.6) (8.8) 2.7 (2.1) (10.8) 82.0 82.1 (0.1) 82.0 0.1 14.0 (4.2) (0.1) 9.8 112.3 112.4 (0.1) 112.3 The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes. Adbri 2023 Annual Report 48 Consolidated balance sheet As at 31 December 2023 Current assets Cash and cash equivalents Trade and other receivables Inventories Current tax assets Assets held for sale Total current assets Non-current assets Receivables Retirement benefit asset Investments accounted for using the equity method Property, plant and equipment Right-of-use assets Intangible assets Non-current financial assets Total non-current assets Total assets Current liabilities Trade and other payables Borrowings Lease liabilities Provisions Current tax liabilities Other current liabilities Total current liabilities Non-current liabilities Borrowings Lease liabilities Deferred tax liabilities Provisions Total non-current liabilities Total liabilities Net assets Equity Share capital Reserves Retained earnings Notes 8(a) 9 10 11 9 26(b) 22 12 13 14 21(a) 17 13 16 17 13 7(e)(f) 16 18 20(a) 20(b) Capital and reserves attributable to owners of the Company Non-controlling interests Total equity The above consolidated balance sheet should be read in conjunction with the accompanying notes. Consolidated 2023 $M 69.5 245.9 181.2 – 46.3 2022 $M 139.9 248.5 172.9 15.4 18.9 542.2 595.6 87.0 3.1 228.2 1,369.4 73.7 307.3 9.3 81.5 6.6 226.5 1,218.5 71.5 307.8 17.4 2,078.0 1,929.8 2,620.9 2,525.4 175.6 4.3 6.0 42.1 2.1 5.2 215.9 – 5.4 39.8 – 5.8 235.3 266.9 747.3 81.9 109.1 60.5 998.8 1,234.1 1,386.8 742.5 5.6 636.6 716.3 77.4 100.5 61.2 955.4 1,222.3 1,303.1 741.2 13.8 545.9 1,384.7 1,300.9 2.1 2.2 1,386.8 1,303.1 Consolidated statement of changes in equity 49 Notes For the year ended 31 December 2023 Consolidated Balance at 1 January 2023 Profit/(loss) for the year Other comprehensive income (loss) Total comprehensive income/ (loss) for the year Transactions with owners in their capacity as owners: Employee/Executive Equity Participation Share Plan 18(b) 20(a) Balance at 31 December 2023 Balance at 1 January 2022 Profit/(loss) for the year Other comprehensive income (loss) Total comprehensive income/ (loss) for the year Transactions with owners in their capacity as owners: Dividends provided for or paid 19 Executive Performance Share Plan 20(a), 26 Share capital $M 741.2 – – – 1.3 742.5 741.2 – – – – – – Balance at 31 December 2022 741.2 Attributable to owners of Adbri Limited Reserves $M Retained earnings $M Non- controlling interests $M Total $M 13.8 – (8.6) 545.9 1,300.9 92.9 (2.2) 92.9 (10.8) 2.2 (0.1) – Total equity $M 1,303.1 92.8 (10.8) (8.6) 90.7 82.1 (0.1) 82.0 0.4 5.6 3.7 – 9.9 9.9 – 636.6 521.8 102.6 (0.2) 1.7 1,384.7 1,266.7 102.6 9.7 – 2.1 2.3 (0.1) – 1.7 1,386.8 1,269.0 102.5 9.7 102.4 112.3 (0.1) 112.2 – (78.3) (78.3) 0.2 0.2 13.8 – (78.3) 0.2 (78.1) – – – (78.3) 0.2 (78.1) 545.9 1,300.9 2.2 1,303.1 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes. Adbri 2023 Annual Report 50 Consolidated statement of cash flows For the year ended 31 December 2023 Cash flows from operating activities Receipts from customers (inclusive of goods and services tax) Payments to suppliers and employees (inclusive of goods and services tax) Joint venture distributions received Interest received Interest paid Other income Income taxes paid Income tax refunds Net cash inflow from operating activities Cash flows from investing activities Payments for property, plant, equipment and intangibles Payment for acquisition of businesses, net of cash acquired Proceeds from sale of property, plant and equipment Proceeds from sale of business Loans to joint venture entities Net cash (outflow) from investing activities Cash flows from financing activities Drawdown of borrowings Repayment of borrowings Lease payments Dividends paid to Company’s shareholders Net cash inflow from financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at end of year Consolidated 2023 $M 2022 $M Notes 2,119.8 (1,905.5) 1,863.3 (1,683.1) 18.6 4.4 (23.3) 5.7 (25.0) 20.3 17.0 1.3 (15.0) 2.0 (34.1) 15.0 8(b) 215.0 166.4 (316.2) – 7.2 0.9 (2.5) (255.1) (56.8) 96.8 – (3.1) (310.6) (218.2) 81.4 (47.2) (9.1) – 25.1 (70.5) 139.9 0.1 69.5 233.2 (80.0) (8.0) (78.3) 66.9 15.1 124.7 0.1 139.9 8(d) 8(d) 8(d) 19 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes. Notes to the financial statements 51 1 Summary of material accounting policies Adbri Limited (Adbri, or the Company) is a company limited by shares, incorporated and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange (ASX). The financial report was authorised for issue by the Directors on 27 February 2024. The Directors have the power to amend and reissue the financial statements. The material accounting policies adopted in the preparation of these consolidated financial statements are either set out below or included in the accompanying notes. Unless otherwise stated, these policies have been consistently applied to all the years presented. Unless otherwise stated, the financial statements are for the consolidated entity consisting of Adbri Limited and its subsidiaries (the Group). (a) Basis of preparation These financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001. The Company is a for-profit entity for the purpose of preparing the financial statements. Comparative information has been restated where appropriate to enhance comparability. (i) Historical cost convention The financial statements have been prepared on a historical cost basis, except for the circumstances where the fair value method has been applied as detailed in the accounting policies. (ii) Compliance with IFRS The consolidated financial statements of the Group also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). (iii) New and amended standards adopted by the Group The Group has adopted all the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and in effect for an accounting period that begins on or after 1 January 2023. Set out below are the new and revised Standards and amendments in effect for the current year that are relevant to the Group: Pronouncement Impact AASB 2021–2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates AASB 17 – Insurance Contracts effective 01 January 2023 AASB 2021–5 Amendments to Australian Accounting Standards – Deferred Tax related to Assets and Liabilities arising from a Single Transaction Requires the disclosure of material accounting policy information and clarifies how entities should distinguish changes in accounting policies and changes in accounting estimates. The application of the amendments did not have a material impact on the Group’s consolidated financial statements but has changed the disclosure of accounting policy information in the financial statements, set out on pages 46 and 105, by removing accounting policies which the group does not consider material to primary users of this financial report. Requires a current measurement model where estimates are remeasured in each reporting period. Contracts are measured using the building blocks of: – discounted probability-weighted cash flows – an explicit risk adjustment, and – a contractual service margin (CSM) representing the unearned profit of the contract which is recognised as revenue over the coverage period. The application of this standard has no material impact on the Group’s consolidated financial statements. Clarified that deferred taxes must be recognised where, on initial recognition of an asset or liability, the transaction gives rise to equal taxable and deductible temporary differences. The application of this amendment has no material impact on the Group’s consolidated financial statements. Adbri 2023 Annual Report 52 Notes to the financial statements continued 1 (a) (iv) Summary of material accounting policies continued Basis of preparation continued New accounting standards and interpretations not yet adopted Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory for the 31 December reporting period and have not been early adopted by the Group. These standards, amendments or interpretations are not expected to have a material impact on the Group in the current or future reporting periods and on foreseeable future transactions. (b) Climate-change related impacts The Group makes estimates and assumptions concerning the future, including climate-related matters. There is considerable uncertainty over assumptions made under various climate change scenarios and how they may impact the Group’s business operations and the subsequent impact on cash flow projections. The Group regularly assesses its assumptions to reflect the market it operates within, the sustainability targets it sets and the commitments made to investors and other stakeholders. The estimates and assumptions, notably those relating to assets and goodwill impairments, useful lives of assets, capital expenditure and research and development, recovery of deferred tax assets, provisions and contingent liabilities, insurance costs and defined benefit pension plans have been based on the available information and regulations in place as at 31 December 2023, and are aligned with the Group’s sustainability targets. During the year, the Group has assessed the impact of the reformed Safeguard Mechanism legislation as at 1 July 2023. The Safeguard Mechanism legislation sets declining baselines for greenhouse gas emissions from our sites, with the requirement to purchase and surrender Australian Carbon Credit Units (ACCUs) or Safeguard Mechanism Credits (SMCs) for emissions in excess of these baselines. Adbri is confident the Safeguard Mechanism legislation as at 1 July 2023 will not have a material impact on earnings. (i) Risk management Adbri’s climate change risk assessments are aligned with the Taskforce for Climate-related Financial Disclosures (TCFD) approach and include an analysis of both transitional and physical risks. The physical risks due to the impact of climate change, such as flooding, changes in precipitation patterns or extreme variability in weather patterns, might lead to higher logistics and transportation costs and reduced production capacities. Physical climate change impacts and the need to adapt to a changing climate are included as material risks on the Adbri risk register. Climate change transition risks include the growing number of climate policy frameworks which may lead to an increased cost of emitting greenhouse gases and associated costs of fuels, coupled with more stringent obligations relating to the products brought to the market (carbon footprint of final products over their lifecycle). The market, policy, reputational and technology risks associated with the transition to a low carbon economy are also considered material risks to the business. Adbri is exposed to a variety of regulatory frameworks to report on and reduce emissions, which could affect Adbri’s business activities. Our assessment of the potential impacts to our operations against a variety of scenarios, and across multiple time horizons, is ongoing, and the scenario analyses undertaken in 2020 and 2022 continue to inform our strategy and business planning. In addition to setting a goal to reach net zero emissions by 2050, Adbri has set short-term targets for 2024. FY2030 targets have also been set as part of the Group’s Net Zero Emissions Roadmap which was published in 2023. There are many uncertainties which are likely to impact Adbri’s achievement of its net zero transition including: – Government policies; – Carbon pricing mechanisms locally and internationally; – Market demand for low-carbon products and solutions; – Availability and cost of alternative fuels and lower emissions energy; and – Commercialisation of technologies that lower process emissions. In 2023, in order to mitigate climate change risks, the Group has been taking action to reduce energy consumption and Green House Gases (GHG) emissions through the use of alternative fuels and supplementary cementitious materials. (ii) Impairment testing Cash flow projections used in the impairment testing process are based upon financial budgets approved by the Board, external forecasts of market growth rates, and expected operating margins and capital expenditure, including, where reliably available, projected expenditure required to meet the Group’s emission reduction targets (including the impact of the Safeguard mechanism legislation. (iii) Useful lives of assets Useful lives of assets may be affected by climate-related matters. Any changes in useful lives, as a result of climate-related matters, will have a direct impact on the amount of depreciation and/or amortisation, recognised each year. Management’s view of useful lives has taken into consideration all available information that impacts on the Group’s emission reduction targets. (iv) Taxes Climate-related matters have been considered in the assessment of the future taxable profits on which the recognition of deferred tax assets are based. Business plans used for the recognition of deferred tax assets have been aligned with the ones used in the impairment testing process, taking into account the Group’s emission reduction targets. 53 (v) Insurance (d) Foreign currency translation The change in climate may result in more regular and intense climate events which can have a significant impact on the Group’s production should there be damage to premises or business interruption. This may increase the Group’s insurance costs or give rise to more frequent uninsurable events. (vi) Defined benefit pension plans Climate-related risks, alongside other risks, are regularly reviewed and monitored with the Trustee of the defined benefits plan. Where changes are made to investment or governance approaches to better manage climate-related risk, the implications for expected returns, and employer costs or contributions are also considered. (vii) Provisions and contingent liabilities The Group’s provisions and contingent liabilities for the 2023 financial year have taken into consideration the Group’s current climate-related targets (c) (i) Principles of consolidation Subsidiaries The consolidated financial statements incorporate the assets and liabilities of all subsidiaries controlled by Adbri Limited as at 31 December 2023 and the results of all subsidiaries for the year then ended. The Company and its subsidiaries together are referred to in this financial report as ‘the Group’. Subsidiaries are entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The acquisition method of accounting is used to account for business combinations by the Group. Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. (ii) Employee Share Plan Trust The Group has formed a trust to administer the Group’s employee share schemes. The company that acts as the Trustee is consolidated as the company is controlled by the Group. The share scheme trusts are not consolidated as they are not controlled by the Group. (i) Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in Australian Dollars, which is the functional currency of the Company as well as the Group’s presentation currency. (ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Income Statement or deferred in equity if the gain or loss relates to a qualifying cash flow hedge. (iii) Foreign operations The results and financial position of foreign operations that have a functional currency different from the presentation currency are translated into the presentation currency as follows: – Assets and liabilities for each consolidated balance sheet presented are translated at the closing rate at the date of the consolidated balance sheet; – Income and expenses for each consolidated income statement and consolidated statement of comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and – All resulting exchange differences are recognised in other comprehensive income. On consolidation, exchange differences arising from the translation of any net investment in foreign entities, borrowings, and other financial instruments designated as hedges of such investments, are recognised in other comprehensive income. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale where applicable. Adbri 2023 Annual Report 54 Notes to the financial statements continued (f) Rounding of amounts The Company is of a kind referred to in the ASIC Legislative Instrument 2016/191, relating to the ‘rounding off’ of amounts in the financial report. Amounts in the financial report have been rounded off in accordance with that instrument to the nearest millions of dollars, unless otherwise stated. (g) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case, it is recognised as part of the cost of acquisition of the asset or as part of the expense incurring that GST. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included in other receivables or liabilities in the Consolidated Balance Sheet. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows. (h) Trade and other payables The amounts are unsecured and usually paid within the Group’s standard terms. 1 Summary of material accounting policies continued (e) Business combinations The acquisition method of accounting is used to account for all business combinations, including business combinations involving equities or businesses under common control, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred also includes the fair value of any contingent consideration arrangement and the fair value of any pre-existing equity interest in the subsidiary. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net identifiable assets. The excess of the consideration transferred and the amount of any non-controlling interest in the acquiree and the acquisition date fair value of any previous equity interest in the acquiree over the fair value of the Group’s share of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the subsidiary acquired and the measurement of all amounts has been reviewed, the difference is recognised directly in profit or loss as a bargain purchase. Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions. Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognised in the Consolidated Income Statement. 55 FINANCIAL PERFORMANCE OVERVIEW 2 Segment reporting (a) Description of segments Management has determined the operating segments based on the reports reviewed by the CEO. These reports include segmental information on the basis of product groups and are used to regularly evaluate how to allocate resources and in assessing performance. The two operating segments as reported to the chief operating decision maker (CEO) have been identified as follows: – Cement, Lime, Concrete and Aggregates; and – Masonry The major end-use of Adbri’s products include residential and non-residential construction, engineering construction, industrial manufacturing and mining sectors within Australia. (b) Segment information provided to the CEO The segment information provided to the CEO for the reportable segments is as follows: 31 December 2023 Total segment operating revenue Inter-segment revenue Revenue from external customers Depreciation and amortisation Impairment: Other Assets Property, plant and equipment Joint venture investment Total impairment EBIT Underlying EBIT1 Share of net profits of joint ventures and associate entities accounted for using the equity method 1. Underlying measures excludes property profits and significant items. Cement, Lime, Concrete and Aggregates $M 1,704.5 (121.1) 1,583.4 122.9 0.6 4.0 7.8 12.4 178.0 191.7 29.0 Masonry $M Unallocated $M Total $M 1,867.8 (121.1) 1,746.7 135.8 0.6 4.0 7.8 12.4 149.1 175.1 – – – 7.2 – – – – (33.7) (21.5) – 29.0 163.3 – 163.3 5.7 – – – – 4.8 4.9 – Adbri 2023 Annual Report 56 Notes to the financial statements continued 2 Segment reporting continued (b) Segment information provided to the CEO continued 31 December 2022 Total segment operating revenue Inter-segment revenue Revenue from external customers Depreciation and amortisation Impairment: Other assets Property, plant and equipment Goodwill Total impairment EBIT Underlying EBIT1 Share of net profits of joint ventures and associate entities accounted for using the equity method 1. Underlying measures exclude property profits/(losses) and significant items. Cement, Lime, Concrete and Aggregates $M 1,487.4 (90.4) 1,397.0 107.6 0.3 3.0 3.0 6.3 136.2 139.8 24.0 Masonry $M Unallocated $M Total $M 1,637.2 (90.4) 1,546.8 119.2 0.3 3.0 3.0 6.3 157.2 121.6 – – – 6.1 – – – – (27.6) (22.0) – 24.0 149.8 – 149.8 5.5 – – – – 48.6 3.8 – During the financial year Management carried out a detailed assessment of methodology used to allocate centralised support function costs to Cement, Lime, Concrete and Aggregates and Masonry segments. The revised allocation method better reflects the current operating structure adopted by the Group. Prior year segment EBIT and underlying EBIT reported results have been updated in line with the revised methodology for enhanced comparability. Overall reported EBIT and underlying EBIT for FY22 remains unchanged. Sales between segments are carried out at arm’s length and are eliminated on consolidation. The operating revenue includes revenue from external customers and a share of revenue from the joint ventures and associates in proportion to the Group’s ownership interest, excluding freight, other product revenue and royalty revenue. A reconciliation of segment operating revenue to revenue from continuing operations is provided as follows: Total segment operating revenue Inter-company revenue elimination Other Freight revenue Royalties Consolidated 2023 $M 1,867.8 (121.1) 9.1 164.3 2.8 2022 $M 1,637.2 (90.4) 6.4 144.4 2.7 Revenue from continuing operations 1,922.9 1,700.3 57 The performance of the operating segments is based on a measure of underlying earnings before interest and tax (EBIT). This measurement basis excludes the effect of significant items and net interest. A reconciliation of the underlying EBIT to operating profit before income tax is provided as follows: Underlying EBIT1 Corporate restructuring and strategic initiative Impairment/write offs Change in loss provision Acquisition expenses JV acquisition costs Property profit/(expense) Net finance cost2 Profit/(loss) before income tax Consolidated 2023 $M 175.1 (5.0) (12.4) (2.3) – – (6.3) (21.5) 127.6 2022 $M 121.6 (4.8) (9.4) (1.3) (3.8) (2.7) 57.6 (20.6) 136.6 1. Underlying measures exclude property profits/(losses) and significant items. 2. Net finance cost is the finance costs shown gross in the income statement offset by interest income included in other income. (c) Other segment information Revenues of $303.9 million (2022: $272.3 million) are derived from a single customer. These revenues are attributable to the Cement, Lime, Concrete and Aggregates segment. Segment assets information is as follows: 31 December 2023 Segment assets (excl Goodwill) Goodwill 31 December 2022 Segment assets (excl Goodwill) Goodwill Cement, Lime, Concrete and Aggregates $M Masonry $M Unallocated $M 764.9 301.4 215.0 – 1,339.6 – Cement, Lime, Concrete and Aggregates $M Masonry $M Unallocated $M 637.3 301.4 210.4 – 1,376.3 – Total $M 2,319.5 301.4 Total $M 2,224.0 301.4 Adbri 2023 Annual Report 58 Notes to the financial statements continued 3 Critical accounting estimates and assumptions The Group makes estimates and assumptions in preparing the financial statements. The resulting accounting estimates will, by definition, seldom equal the related actual results. This note provides an overview of the areas that involved a higher degree of judgement or complexity and of items which are more likely to be materially adjusted due to estimates and assumptions differing to Aactual outcomes. The areas involving significant estimates and assumptions are listed below. – – – Inventories – Note 10 Impairment tests – Note 15 Provisions for close-down and restoration costs – Note 16 – Retirement benefit obligations – Note 26 4 Earnings per share Accounting policy – earnings per share (i) Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the year. (ii) Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assuming conversion of all dilutive potential ordinary shares. Basic earnings per share Diluted earnings per share Weighted average number of shares used as the denominator Consolidated 2023 Cents 14.2 14.1 2022 Cents 15.7 15.6 Consolidated Note 2023 Shares 2022 Shares Weighted average number of ordinary shares used as the denominator in calculating earnings per share 18 653,329,543 652,627,555 Adjustments for calculation of diluted earnings per share: Awards Weighted average number of ordinary and potential ordinary shares used as the denominator in calculating diluted earnings per share 27 3,739,758 3,838,017 657,069,301 656,465,572 Reconciliation of earnings used in calculating earnings per share Profit after tax Loss attributable to non-controlling interests Profit attributable to the ordinary equity holders of the Company used in calculating diluted earnings per share Consolidated 2023 $M 92.8 0.1 2022 $M 102.5 0.1 92.9 102.6 59 5 Revenue from contracts with customers and other income Accounting policy – revenue recognition Revenue is recognised for the major business activities as follows: (i) Revenue from contracts with customers The Group supplies construction materials and industrial minerals to customers from a broad range of industry segments throughout Australia. Revenue from the sale of goods is recognised at a point in time when control of the product has transferred, risk of loss has been transferred to the customer, and there is objective evidence that all criteria for acceptance has been satisfied. Revenue is recognised based on the price specified in the sales order, net of any discounts. Any instances of product returns and warranty claims are accounted for on a case-by-case basis. (ii) Interest income Finance income comprises interest income recognised on financial assets at amortised cost. Interest income is recognised as it accrues, using the effective interest rate method. A disaggregation of revenue at a product level is provided in Note 2. Revenue Revenue from contracts with customers Royalties Other income Net (loss)/gain on disposal of property, plant and equipment Rental income Interest from joint ventures and other parties Other income Consolidated 2023 $M 1,920.1 2.8 2022 $M 1,697.6 2.7 1,922.9 1,700.3 (4.4) 1.5 6.8 5.2 9.1 65.6 1.6 3.3 2.0 72.5 Total revenue from contracts with customers and other income 1,932.0 1,772.8 Net loss of $4.4 million on disposal of property, plant and equipment during the year predominantly comprises of reversal of gain related to land at Hilltop, New South Wales, originally recognised in FY2021, following default by the purchaser which is recognised in other income (2022: gain of $65.6 million). Adbri 2023 Annual Report 60 Notes to the financial statements continued 6 Expenses Profit before income tax includes the following specific expenses: Depreciation Amortisation of intangibles Impairment of property, plant and equipment Impairment of joint venture Impairment of goodwill Impairment of other assets Employee benefits expenses Superannuation expense Accounting policy – borrowing costs Notes 12, 13 14 12 15 Consolidated 2023 $M 134.2 1.7 4.0 7.8 – 0.6 204.6 16.3 2022 $M 114.1 5.1 3.0 – 3.0 0.3 187.0 14.7 Borrowing costs that are directly attributable to the construction of any qualifying asset are capitalised into the cost base of the asset during the period of time that is required to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed as incurred. Finance costs Interest and finance charges paid/payable for lease liabilities and financial liabilities not at fair value through profit or loss Unwinding of the discount on restoration provisions Total finance costs Amount capitalised1 Total finance costs Consolidated 2023 $M 2022 $M 36.6 2.5 39.1 (10.8) 28.3 24.5 2.0 26.5 (2.6) 23.9 1. The rate used to determine the amount of borrowing costs to be capitalised is the average interest rate applicable to the Group’s outstanding borrowings during the year, being 4.8% p.a. (2022: 3.0% p.a.). 61 7 Income tax Accounting policy – income tax The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction, adjusted for changes in deferred tax assets and liabilities attributable to temporary differences and previously unused tax losses. The current income tax charge is calculated on the basis of tax laws enacted, or substantively enacted, at the end of the reporting period. Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Current and deferred tax is recognised in profit and loss, except to the extent it relates to items recognised in other comprehensive income or directly in equity. Tax consolidation Adbri Limited and its wholly-owned Australian subsidiaries implemented the Australian tax consolidation legislation as of 1 January 2004. Adbri Limited, as the head entity of the tax consolidated group, recognises current tax liabilities and tax losses (subject to meeting the ‘probable test’) relating to all transactions, events and balances of the tax consolidated group as if those transactions, events and balances were its own. The entities in the tax consolidated group are part of a tax sharing agreement which, in the opinion of the Directors, limits the joint and several liability of the wholly-owned entities in the case of default by the head entity, Adbri Limited. Expenses and revenues arising under the tax sharing agreement are recognised as a component of income tax expense. The wholly-owned entities fully compensate Adbri Limited for any current tax payable assumed and are compensated by Adbri Limited for any current tax receivable and deferred tax assets relating to unused tax losses or unused tax credits that are transferred to Adbri Limited under the tax consolidation legislation. The funding amounts are determined by reference to the amounts recognised in the wholly-owned entity’s financial statements. Individual tax consolidated entities recognise tax expenses and revenues and current and deferred tax balances in relation to their own taxable income, temporary differences and tax losses, using the separate taxpayer within the group method. Entities calculate their current and deferred tax balances on the basis that they are subject to tax as part of the tax consolidated group. Deferred tax balances relating to assets that had their tax values reset on joining the tax consolidated group have been remeasured based on the carrying amount of those assets in the tax consolidated group and their reset tax values. The adjustment to these deferred tax balances is recognised in the consolidated financial statements against income tax expense. Adbri 2023 Annual Report 62 Notes to the financial statements continued 7 Income tax continued (a) Numerical reconciliation of income tax expense to prima facie tax payable Profit before income tax expense Tax at the Australian tax rate of 30.0% (2022 – 30.0%) Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Non-deductible expenses Non-assessable income Rebateable dividends Other adjustments Goodwill impairment Previously unrecognised capital tax losses offset against capital gains (Over)/under provided in prior years Adjustments for current tax of prior periods Aggregate income tax expense Aggregate income tax expense comprises: Current tax on profits for the year Net deferred tax expense/(benefit) (Over)/under provided in the prior year Consolidated 2023 $M 127.6 38.3 0.1 (3.1) (1.5) (0.2) – (0.3) 1.5 – 2022 $M 136.6 41.0 0.2 (3.5) (0.5) 1.4 0.9 (5.3) (0.1) – 34.8 34.1 25.0 8.3 1.5 34.8 11.7 22.5 (0.1) 34.1 (b) Amounts recognised directly in equity Aggregate current and deferred tax arising in the reporting year not recognised in net profit or loss or other comprehensive income but directly debited or credited to equity: Net deferred tax expense/(benefit) (c) Tax expense relating to items of other comprehensive income Changes in the fair value of cash flow hedges (d) Tax losses Unused tax losses for which no deferred tax asset has been recognised: Revenue losses Capital losses Consolidated 2023 $M 0.4 Consolidated 2023 $M 2.7 Consolidated 2023 $M 0.8 5.4 2022 $M 0.2 2022 $M 4.2 2022 $M 0.8 4.9 63 This benefit for tax losses will only be obtained if: (i) the Group derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the losses to be realised; (ii) the Group continues to comply with the conditions for deductibility imposed by tax legislation; and (iii) no changes in tax legislation adversely affect the Group in realising the benefit from the deductions for the losses. (e) Non-current deferred tax assets The balance comprises temporary differences attributable to: Share-based payment reserve Provisions Lease liabilities Other assets Deferred tax assets – before offset Offset deferred tax liabilities (Note 7(f)) Net deferred tax assets – after offset Movements: Opening balance at 1 January – before offset Recognised in the income statement Acquired in business combinations Recognised in other comprehensive income Under/(over) provision in prior year Closing balance at 31 December – before offset (f) Non-current deferred tax liabilities The balance comprises temporary differences attributable to: Property, plant and equipment Right-of-use assets Inventories Other Deferred tax liabilities – before offset Offset deferred tax assets (Note 7(e)) Net deferred tax liabilities – after offset Movements: Opening balance at 1 January – before offset Recognised in the income statement (Over)/under provision in prior year Closing balance at 31 December – before offset Consolidated 2023 $M 2022 $M 0.9 29.3 26.3 4.5 61.0 (61.0) – 55.9 4.9 – 0.4 (0.2) 61.0 0.3 28.2 24.8 2.6 55.9 (55.9) – 64.2 (11.1) 1.4 (0.2) 1.6 55.9 Consolidated 2023 $M 124.4 22.1 16.6 7.0 170.1 (61.0) 109.1 156.4 13.1 0.6 170.1 2022 $M 109.2 21.5 15.3 10.4 156.4 (55.9) 100.5 145.5 15.6 (4.7) 156.4 Adbri 2023 Annual Report 64 Notes to the financial statements continued 8 Note to statement of cash flows (a) Cash and cash equivalents Accounting policy – cash and cash equivalents Cash and cash equivalents includes cash on hand, term deposits and deposits held at call with financial institutions and other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the balance sheet. Current Cash at bank and in hand Term deposits Cash and cash equivalents (i) Offsetting Consolidated 2023 $M 66.6 2.9 69.5 2022 $M 137.5 2.4 139.9 The Group has an offsetting agreement with its bank for cash facilities. This agreement allows the Group to manage cash balances on a total basis, offsetting any individual bank accounts that are overdrawn with the rest of the bank accounts with positive cash balances. The value of individual bank accounts that were overdrawn 31 December 2023 was $nil (2022: $nil). (ii) Risk exposure The Group’s exposure to interest rate risk is discussed in Note 21. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of cash and cash equivalents mentioned above. (b) Reconciliation of profit after income tax to net cash inflow from operating activities Profit for the year Depreciation, amortisation and other impairment Share-based payments Finance charges on remediation provision Interest on lease liabilities (Gain)/loss on sale of non-current assets Share of profits of joint ventures, net of dividends received Non-cash retirement benefits expense Non-cash remediation (asset increase)/obligation Capitalised interest Other Consolidated 2023 $M 92.8 148.3 1.3 2.4 3.1 4.4 (12.8) 0.4 (2.3) (10.7) (3.7) 2022 $M 102.5 125.5 (0.4) 2.0 2.8 (65.6) (7.0) 0.5 (2.3) (2.6) (1.3) Net cash provided by operating activities before changes in assets and liabilities 223.2 154.1 Change in operating assets and liabilities, net of effects from purchase of business combinations: (Increase)/decrease in inventories Decrease/(increase) in prepayments (Increase)/decrease in receivables Increase/(decrease) in trade creditors (Decrease)/increase in provisions (Increase)/decrease in income taxes receivable Increase/(decrease) in deferred taxes liabilities Increase/(decrease) in other operating assets Net cash inflow from operating activities (8.3) (4.2) 1.3 (40.5) 1.6 17.5 8.6 15.8 (17.9) (1.3) (23.5) 26.0 (1.9) (1.1) 20.6 11.4 215.0 166.4 (c) Net debt components Cash and cash equivalents Borrowings – repayable less than one year Borrowings – repayable after more than one year Net debt1 65 Consolidated 2023 $M 69.5 (4.3) (747.3) (682.1) 2022 $M 139.9 – (716.3) (576.4) 1. The net debt calculation does not include lease liabilities of $87.9 million at 31 December 2023 (2022: $82.8 million). (d) Reconciliation of movements of liabilities to cash flows arising from financing activities Other assets Liabilities from financing activities Cash and cash equivalents $M Borrowings due within 1 year $M Borrowings due after 1 year $M Leases due within 1 year $M Leases due after 1 year $M Net debt as at 1 January 2022 Cash flows Acquisition – new leases/remeasurement of existing leases Other non-cash movements Net debt as at 31 December 2022 Lease liabilities Net debt excluding lease liabilities at 31 December 2022 Net debt as at 1 January 2023 Cash flows Acquisition – new leases/remeasurement of existing leases Other non-cash movements Net debt as at 31 December 2023 Lease liabilities Net debt excluding lease liabilities at 31 December 2023 124.7 15.1 – 0.1 139.9 – 139.9 139.9 (70.5) – 0.1 69.5 – – – – – – – – – (4.3) – – (4.3) – (562.1) (153.2) – (1.0) (716.3) – (716.3) (716.3) (34.2) – 3.2 (747.3) – 69.5 (4.3) (747.3) (4.8) 8.0 – (8.6) (5.4) 5.4 – (5.4) 9.1 – (9.7) (6.0) 6.0 – Total $M (518.9) (130.1) (6.6) (3.6) (659.2) 82.8 (576.4) (659.2) (99.9) (13.5) 2.6 (770.0) 87.9 (76.7) – (6.6) 5.9 (77.4) 77.4 – (77.4) – (13.5) 9.0 (81.9) 81.9 – (682.1) Adbri 2023 Annual Report 66 Notes to the financial statements continued BALANCE SHEET ITEMS 9 Trade and other receivables Accounting policy – trade and other receivables Trade receivables are typically due for settlement no more than 30 to 45 days from the end of the month of invoice. The Group applies the simplified approach to providing for expected credit losses for all trade receivables as set out in Note 21(c). Current Trade receivables Loss allowance provision (see note 21(c)) Amounts receivable from joint ventures Prepayments Other receivables Total current Non-current Loans to joint ventures Movement in loss allowance provision Opening balance at 1 January Provision utilised during the year Provision movement during the year Closing balance at 31 December Consolidated 2023 $M 187.5 (5.6) 181.9 40.5 13.1 10.4 2022 $M 187.0 (9.7) 177.3 36.7 8.9 25.6 245.9 248.5 87.0 81.5 9.7 (7.8) 3.7 5.6 10.4 – (0.7) 9.7 Fair value and credit, interest and foreign exchange risk Due to the short-term nature of current receivables, their carrying value is assumed to approximate their fair value. All receivables are denominated in Australian Dollars. Information concerning the fair value and risk management of both current and non-current receivables is set out in 21(c). The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of receivables mentioned above. 67 10 Inventories Accounting policy – inventories Raw materials and stores, work-in-progress and finished goods are stated at the lower of cost and net realisable value. Cost comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Cost includes the reclassification from equity of any gains or losses on qualifying cashflow hedges relating to purchases of raw materials. Costs of engineering spare parts and stores are assigned to individual items of inventory on the basis of weighted average costs. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Significant estimates – bulk inventory quantities Inventory quantities are verified through stocktakes where inventory is either counted or, in the case of bulk materials, volumetric surveys are converted to weight using density factors. Volumetric surveys are performed by independent surveyors utilising aerial and laser surveys. Current Finished goods Raw materials and work-in-progress Engineering spare parts stores Inventory expense Consolidated 2023 $M 72.5 72.1 36.6 181.2 2022 $M 63.4 76.1 33.4 172.9 Inventories recognised as expense during the year ended 31 December 2023 and included in cost of sales amounted to $1,136.3 million (2022: $1,091.4 million). There was no material adjustment to inventories’ net realisable value during the year ended 31 December 2023 (2022: $nil). Adbri 2023 Annual Report 68 Notes to the financial statements continued 11 Assets held for sale Accounting policy – assets held for sale Assets are classified as held for sale if it is highly probable that the carrying amount will be recovered through a sale transaction rather than through continued use. Assets classified as held for sale are measured at the lower of the carrying amount and fair value less costs to sell. Items classified as held for sale constitute land parcels identified as not being part of the Group’s long-term strategy. For segment reporting purposes, these assets are reflected in the Cement, Lime, Concrete and Aggregates segment. Land Buildings Property plant and equipment Consolidated 2023 $M 44.5 0.2 1.6 46.3 2022 $M 17.1 0.2 1.6 18.9 12 Property, plant and equipment Accounting policy – property, plant and equipment Property, plant and equipment is shown at historical cost less accumulated depreciation and accumulated impairment losses. (i) Mineral reserves Mineral reserves are amortised based on annual extraction rates over the estimated life of the reserves from 2–50 years. The remaining useful life of each asset is reassessed at regular intervals. Where there is a change during the period to the useful life of the mineral reserve, amortisation rates are adjusted prospectively from the beginning of the reporting period. (ii) Major plant replacement assets The costs of replacing major components of complex assets are depreciated on a straight-line basis over the estimated useful life, generally being the period until the next scheduled replacement of 2–25 years, or in the case of recurring shutdown capital depreciated over the period until the next scheduled shutdown (generally 1 year). (iii) Leasehold property The cost of improvements to or on leasehold properties is amortised on a straight-line basis over the unexpired period of the lease or the estimated useful life, whichever is shorter. Amortisation is over 5–30 years. (iv) Other fixed assets Freehold land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost or deemed cost amounts, over their estimated useful lives, as follows: – Buildings 20–40 years – Plant and equipment 1–40 years The residual values and useful lives of assets are reviewed, and adjusted if appropriate, at each balance sheet date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the asset’s carrying amount. These are included in the income statement. Asset retirement cost is initially recognised in conjunction with provision for remediation for quarries. The initial recognition is on inception of the quarry or for business acquisitions on acquisition date. Following initial recognition, asset retirement cost is depreciated over the useful life of the quarry. Annual reviews are undertaken to assess changes to the useful life and cost calculated initially. 69 Freehold land $M Buildings $M Leasehold property $M Plant and equipment $M Mineral Reserves $M Asset retirement cost $M In course of con- struction $M Total $M 152.5 (89.4) 63.1 67.2 – 0.9 (0.1) – (0.2) (0.3) (4.4) 9.9 (6.8) 3.1 1,772.8 (1,195.4) 577.4 226.9 (70.7) 156.2 3.5 565.2 150.5 – – – – – – (0.4) – 134.6 (4.7) – – (3.7) (114.0) – 9.9 – – (0.1) – (4.1) 56.5 (21.5) 35.0 37.0 – 3.1 (2.8) – – – (2.3) 345.8 2,753.2 – (1,383.8) 345.8 1,369.4 185.7 313.0 (152.0) 0.3 (1.2) – – – 1,218.5 313.0 – (7.3) (1.2) (24.4) (4.0) (125.2) – 3.5 – – (24.1) – – 188.8 63.1 3.1 577.4 156.2 35.0 345.8 1,369.4 209.4 – 209.4 206.4 – 25.5 – – (25.4) – – 2.9 152.2 (85.0) 67.2 71.6 – 1.3 – – (1.9) – (4.5) 0.7 9.9 (6.4) 3.5 3.7 – 0.3 – – – – (0.5) – 1,701.0 (1,135.8) 565.2 215.9 (65.4) 150.5 505.0 152.6 – 147.4 (2.2) – (3.2) (0.4) (93.9) 12.5 – 0.8 – – (3.0) (1.1) (5.6) 6.8 56.2 (19.2) 37.0 36.7 – 0.3 (0.1) – – – (1.9) 2.0 187.2 (1.5) 2,531.8 (1,313.3) 185.7 1,218.5 112.2 252.9 (175.6) (0.4) (1.9) – (1.5) – – 1,088.2 252.9 – (2.7) (1.9) (33.5) (3.0) (106.4) 24.9 209.4 67.2 3.5 565.2 150.5 37.0 185.7 1,218.5 Consolidated at 31 December 2023 Cost or fair value Accumulated depreciation Net carrying amount Reconciliation 188.8 – 188.8 Opening net book amount 209.4 Additions Transfers to asset categories Disposals Reclassification to intangibles Reclassification to assets held for sale Impairment loss Depreciation/amortisation Carrying amount at 31 December 2023 Consolidated at 31 December 2022 Cost or fair value Accumulated depreciation Net carrying amount Reconciliation Opening net book amount Additions Transfers to asset categories Disposals Reclassification to intangibles Reclassification to assets held for sale Impairment loss Depreciation/amortisation Zanows acquisition Carrying amount at 31 December 2022 Adbri 2023 Annual Report 70 Notes to the financial statements continued 13 Leases Accounting policy – leases The Group leases various offices, warehouses and plant and equipment. Rental contracts are typically made for fixed periods with most having a tenure of up to 10 years. There are a small number of leases that extend beyond the 10-year lease period including one lease with a lease term of 50 years. Many leases also have extension options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be used as security for borrowing purposes. The lease payments are discounted using the lessee’s incremental borrowing rate, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. To determine the incremental borrowing rate, the Group: – Uses recent third party financing received by the individual lessee as a starting point, adjusted to reflect changes in financing conditions since third party financing was received; and – Makes adjustments specific to the lease term. Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognised as an expense of $1.8 million (2022: $2.9 million) in the income statement. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT equipment and small items of office furniture. AASB 16 Leases specifically excludes leases to explore for or use minerals and non-regenerative resources, therefore any leases of quarry assets con`tinue to be accounted for pursuant to the policy elaborated upon in Note 12 Property, Plant and Equipment. (i) Amounts recognised in the balance sheet The balance sheet shows the following amounts relating to leases: Right-of-use assets Property Plant and equipment Additions to the right-of-use assets during the 2023 financial year were $8.8 million (2022: $2.6 million). Lease liabilities Current Non-current Consolidated 2023 $M 50.7 23.0 73.7 Consolidated 2023 $M 6.0 81.9 87.9 2022 $M 49.4 22.1 71.5 2022 $M 5.4 77.4 82.8 (ii) Amounts recognised in the income statement The income statement shows the following amounts relating to leases: Amortisation charge of right-of-use assets Property Plant and equipment Interest expense (included in finance cost) Expense relating to variable lease payments not included in lease liabilities (included in administrative expenses) 71 Consolidated 2023 $M 2022 $M 5.5 3.5 9.0 3.1 68.9 81.0 4.7 3.0 7.7 2.8 68.9 79.4 The total cash outflow for leases in 2023 was $76.8 million (2022: $75.6 million). (iii) Lorry owner-drivers The Group has contracts with a number of lorry owner-drivers who are used for delivering concrete in an operationally flexible manner that supplement the Group’s owned fleet. The contracts include the supply of a vehicle and driver with terms of up to 10 years. These contracts are treated as embedded leases, as the arrangements convey the right to control the use of the lorry in exchange for consideration. In circumstances where these contracts contain minimum or fixed payments relating to the underlying asset, these amounts would be used to calculate the valuation of the lease liability and right-of-use asset. As the payments made under these agreements are wholly variable, they are not reflected in the measurement of lease liabilities or right-of-use assets and are expensed when incurred. The amounts are dependent on deliveries made and services performed with no minimum fixed payments. The following amounts are the estimated future cash outflows the Group will pay to contracted lorry owner-drivers based on the current fleet under existing terms. Within one year Later than one year but not later than five years Later than five years Consolidated 2023 $M 70.2 118.4 18.3 206.9 2022 $M 71.3 126.7 14.6 212.6 (iv) Extension and termination options Extension and termination options are included in a number of property and equipment leases across the Group. The options are included in the initial valuation when it is reasonably certain that the option will be exercised. These are used to maximise operational flexibility in terms of managing the assets used in the Group’s operations. In cases where these options exist, they are exercisable only by the Group and not by the respective lessor. Adbri 2023 Annual Report 72 Notes to the financial statements continued 14 Intangible assets Accounting policy – intangible assets (i) Goodwill Goodwill is measured as described in Note 1(e). Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisition of joint ventures and associates is included in the carrying amount of joint ventures of the equity accounted investment. Goodwill is not amortised. Instead, goodwill is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Refer Note 15 for further details. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Goodwill is allocated to CGUs which are expected to benefit from the business combination for the purpose of impairment testing. (ii) Software Costs incurred in acquiring software and licences that the Group can control and will contribute to future period financial benefits through revenue generation and/or cost reduction are capitalised to software and systems. Costs capitalised include external direct costs of materials and services and direct payroll and payroll-related costs of employees’ time spent on the project. Amortisation is calculated on a straight-line basis over periods generally ranging from 5 to 10 years. IT development costs include only those costs directly attributable to the development phase and are only recognised following completion of technical feasibility and where the Group has an intention and ability to use the asset. (iii) Software as a service (SaaS) arrangements SaaS arrangements are service contracts providing the Company with the right to access a provider’s software over the contract period. The ongoing fees incurred to access the provider’s software is recognised as an operating expense when the services are received. Software codes developed for the Company that modify or create additional capability to existing systems and software, and which meet the definition of an intangible asset, are recognised as software assets and are amortised over the useful life of the software on a straight-line basis. 31 December 2023 Cost Accumulated amortisation Carrying amount at 31 December 2023 Opening balance at 1 January 2023 Additions Amortisation charge Closing balance at 31 December 2023 31 December 2022 Cost Accumulated amortisation Carrying amount at 31 December 2022 Opening balance at 1 January 2022 Zanows acquisition Impairment charge Amortisation charge Reclassification from property plant and equipment Closing balance at 31 December 2022 Consolidated Goodwill $M Software $M Other intangibles $M 301.4 – 301.4 301.4 – – 301.4 28.8 (24.2) 4.6 4.8 1.2 (1.4) 4.6 7.1 (5.8) 1.3 1.6 – (0.3) 1.3 Consolidated Goodwill $M Software $M Other intangibles $M 304.4 (3.0) 301.4 272.5 31.9 (3.0) – – 301.4 27.5 (22.7) 4.8 4.7 – – (1.8) 1.9 4.8 10.2 (8.6) 1.6 4.9 – – (3.3) – 1.6 Total $M 337.3 (30.0) 307.3 307.8 1.2 (1.7) 307.3 Total $M 342.1 (34.3) 307.8 282.1 31.9 (3.0) (5.1) 1.9 307.8 15 Impairment tests Goodwill accounting policy is described in Note 14. (a) Goodwill is allocated to the Group’s CGUs A segment-level summary of the goodwill allocation presented below: Cement, Lime, Concrete and Aggregates Masonry 73 Consolidated 2023 $M 301.4 – 301.4 2022 $M 301.4 – 301.4 Pursuant to AASB 136 Impairment of Assets, the recoverable amount of a CGU is based on the higher of Fair value less cost to sell (FVLCS) and Value in use (VIU) assessment. In December, following receipt of a non-binding indicative proposal from CRH ANZ Pty Ltd (CRH) and Barro Properties Pty Ltd (Barro Properties) Adbri entered into a process and exclusivity deed to progress a potential transaction under which CRH would acquire 100% of the Adbri shares not held by the Barro Group for $3.20 per share in cash. On 27 February 2024, the Company and CRH entered into a binding scheme implementation agreement to proceed with the proposed scheme of arrangement. The table below summarises Management’s assessment of FVLCS based on the takeover offer: Shares on issue Price per share Market capitalisation Add Net Debt Implied enterprise value Carrying value Headroom/(Deficit) $ 653,329,543 3.20 2,090,654,537 682,100,000 2,772,754,537 2,241,000,000 531,754,537 Notwithstanding the headroom as demonstrated by the FVLCS calculation, Management has carried out a VIU assessment as at 31 December 2023, which also indicates no impairment. (b) Key assumptions used for value-in-use calculations Cement, Lime, Concrete and Aggregates Masonry Growth rate1 Discount rate2 2023 % 2.5 2.5 2022 % 2.5 2.5 2023 % 8.9 9.2 2022 % 8.8 9.1 1. Weighted average growth rate used to extrapolate cash flows beyond the specific market forecast period of five years. This growth rate is based on expected long-term performance in the market. 2. Discount rate applied to cash flow projections is based on the Group’s weighted average cost of capital adjusted to reflect an estimate of specific risks assumed in the cash flow projects. Adbri 2023 Annual Report 74 Notes to the financial statements continued 15 Impairment tests continued (b) Key assumptions used for value-in-use calculations continued Significant estimate – key assumptions used for value-in-use calculations The Group tests annually whether goodwill and indefinite life intangible assets have suffered any impairment. Other intangible assets and other non-current assets are tested for impairment when evidence of an impairment trigger is present. The recoverable amounts of CGUs have been determined based on VIU or FVLCS calculations, whichever is higher. The following key inputs used in the VIU calculation require significant judgement and estimates: – future cash flows – these are based on the Board approved 2024 financial budgets, external forecasts of market growth rates, and expected operating margins and capital expenditure. Projected cash flows are forecast for a period of five years and reflect the strategies to achieve the Group’s emission reduction targets (including the impact of the Safeguard mechanism legislation); – discount rates – these are pre-tax determined by current market inputs and adjusted for any CGU specific risks identified. Management engages independent experts in discount rates assessment; – long-term growth rates – cash flows beyond five years are estimated using expected growth rates based on long term performance expectation of each CGU in its respective market. Estimates and judgements are continually evaluated utilising historical experience coupled with expectations of future events. (c) Impairment charge During the year, an impairment charge totalling $12.4 million (2022: $6.3 million) has been taken. The impairment charge relates to business assets and joint venture investment, deemed as not part of the Group’s long term strategic plan, where expected future cash flow generation, pursuant to FVLCS and VIU assessment, is less than the carrying value. The following table summarises the total impairment recorded in the period by segment. 2023 Property, plant and equipment and other assets Joint venture investments Total 2022 Property, plant and equipment and other assets Goodwill Total Cement, Lime, Concrete and Aggregates $M 4.6 7.8 12.4 3.3 3.0 6.3 Masonry $M Unallocated $M Total $M – – – – – – – – – – – – 4.6 7.8 12.4 3.3 3.0 6.3 75 16 Provisions Accounting policy – provisions Provisions are recognised in line with the requirements of AASB 137 Provisions, Contingent Liabilities and Contingent Assets and other relevant technical pronouncements (i) Short-term employee benefit obligations Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months after the end of the period in which employees render the related service are recognised in respect of employees’ services up to the end of the reporting period. These are measured at the amounts expected to be paid when the liabilities are settled. The liability for annual leave and accumulating sick leave is recognised as a current provision for employee benefits as there is no unconditional right to defer settlement of these obligations. All other short-term employee benefit obligations are presented as payables. (ii) Long-term employee benefit obligations The liability for long service leave and annual leave, which is not expected to be settled within 12 months after the end of the period in which employees render the related service, is recognised as a provision for employee benefits. These obligations are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected-unit-credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the end of the reporting period on high quality corporate bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows. (iii) Workers’ compensation Certain entities within the Group are self-insured for workers’ compensation purposes. For self-insured entities, provision is made that covers incidents that have occurred and have been reported, as well as incurred but not reported claims. The provision is based on an actuarial assessment. Introduction of AASB 17 Insurance Contracts, effective 1 January 2023, has had no impact on how the Group’s accounts for and reports the self-insurance arrangements. (iv) Provisions for close-down and restoration costs Close-down and restoration costs include the dismantling and demolition of infrastructure and the removal of residual materials and remediation of disturbed areas. Provisions for close-down and restoration costs do not include any additional obligations which are expected to arise from future disturbance. The costs are based on the net present value of the estimated future costs of a closure plan. Estimated changes resulting from new disturbance, updated cost estimates including information from tenders, changes to the lives of operations and revisions to discount rates are capitalised within property, plant and equipment. These costs are then depreciated over the lives of the assets to which they relate. The amortisation or ‘unwinding’ of the discount applied in establishing the net present value of provisions is charged to the income statement in each period as part of finance costs. Material estimates– future cost to rehabilitate Restoration provisions are based on estimates of the future cost to rehabilitate currently disturbed areas using current costs, forecast cost inflation factors and rehabilitation requirements. The Group progressively rehabilitates land as part of the quarrying process. Cost estimates are evaluated at least annually, based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Following key inputs used in the rehabilitation cost assessment require updating judgement and estimates: – – – – estimated useful life and closure dates of the quarries; technological changes and advances; legislative changes and community expectations; supplier cost estimates. Management constantly reviews judgement and estimates by engaging external experts as appropriate. Given the considerably long life span and dispersed closure dates of the quarry assets, the financial impact of actual closure cost being different to Management’s estimate is not expected to be material in any given financial period. Provision for close-down and restoration costs at the end of the year was $61.2 million (2022: $61.2 million). Adbri 2023 Annual Report 76 Notes to the financial statements continued 16 Provisions continued Material estimates– future cost to rehabilitate continued Current Employee benefits Restoration provisions Other provisions Non-current Employee benefits Restoration provisions Consolidated 2023 $M 2022 $M 35.4 3.1 3.6 42.1 2.4 58.1 60.5 35.5 2.1 2.2 39.8 2.1 59.1 61.2 The current portion of employee benefits includes all of the accrued annual leave and the unconditional entitlements to long service leave where employees are entitled to pro-rata payments in certain circumstances. However, based on past experience, the Group does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months. The following amounts reflect leave that is not expected to be taken or paid within the next 12 months. Current leave obligations expected to be settled after 12 months Movements in each class of provision during the financial year, other than employee benefits, are set out below: Consolidated 2023 $M 4.9 2022 $M 5.2 Opening balance at 1 January Charged to income statement Charged to balance sheet Unwind of discount Payments Closing balance at 31 December Restoration provisions $M Other provisions $M 61.1 (0.2) 0.4 2.5 (2.6) 61.2 2.3 17.5 – – (16.2) 3.6 77 CAPITAL STRUCTURE AND RISK MANAGEMENT 17 Borrowings Accounting policy – borrowings Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the income statement over the period of the borrowings using the effective interest method. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Current Bank loans – secured Non-current Bank loans – secured Bank loans – unsecured1 Consolidated 2023 $M 4.3 25.0 722.3 747.3 2022 $M – – 716.3 716.3 1. Net of capitalised establishment cost. The Group complied with the terms of borrowing agreements during the year. Details of the Group’s exposure to interest rate changes is set out in Note 21(b). 18 Share capital Accounting policy – share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or options, for the purpose of acquisition of a business, are not included in the cost of the acquisition as part of the purchase consideration. (a) Share capital Issued and paid up capital Fully paid (b) Movements in ordinary shares capital Opening balance 1 January 2023 Shares issued under Employee Share Plan Closing balance 31 December 2023 2023 Shares 2022 Shares 2023 $M 2022 $M 653,329,543 652,627,555 742.5 741.2 Number of shares 652,627,555 701,988 653,329,543 Total $M 741.2 1.3 742.5 Adbri 2023 Annual Report 78 Notes to the financial statements continued 18 Share capital continued (c) Ordinary shares Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up the Company in proportion to the number of and amounts paid on the shares held. On a show of hands every holder of ordinary shares present at a meeting in person, or by proxy, is entitled to one vote and, on a poll, each share is entitled to one vote. Ordinary shares have no par value and the Company does not have a limited amount of authorised capital. (d) Dividend reinvestment plan Under the Dividend Reinvestment Plan (DRP), holders of ordinary shares may elect to have all or part of their dividend entitlements satisfied by the issue of new ordinary shares rather than by being paid in cash. Shares are issued under the DRP at a price determined by the Board. The operation of the DRP for any dividend is at the discretion of the Board, which suspended the DRP in February 2015, and has not been reactivated since that time. (e) Capital risk management The Group’s objectives when managing capital are to safeguard the ability to continue as a going concern, continuing to provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure to reduce the cost of capital while maintaining the flexibility to grow. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, issue shares as well as issue new debt or redeem existing debt. The Group monitors capital on the basis of the leverage ratio. Adbri’s target leverage ratio is 1.0 to 2.0 times underlying EBITDA1. The leverage ratio is calculated as follows: Total borrowings (excluding lease liabilities) Less: cash and cash equivalents Net debt Underlying EBITDA1 Leverage ratio2 Consolidated 2023 $M 751.6 (69.5) 682.1 311.0 2.2 2022 $M 716.3 (139.9) 576.4 237.6 2.4 1. Underlying measures exclude property profits and significant items. 2. Leverage ratio is calculated as net debt/underlying EBITDA. Net debt is calculated as total borrowings, inclusive of capitalised borrowing costs, less cash and cash equivalents and excludes lease liabilities. (f) Employee share scheme and options Information relating to the employee share scheme, including details of shares issued under the scheme, is set out in Note 27. 19 Dividends Dividends paid during the year No dividends were paid during the year in relation to the current or prior financial years (FY 2022: 2021 final dividend of 7.0 cents and 2022 interim dividend of 5.0 cents, franked at 100%) Since the end of the year, the board has recommended that no payment of a final dividend in respect of the year ended 31 December 2023 be made (2022: nil). The aggregate amount of the previous financial year’s proposed final dividend payout, not recognised as a liability at the end of the year. Franked dividend 79 Consolidated 2023 $M 2022 $M – – 78.3 – Franking credits available for subsequent reporting periods based on a tax rate of 30% 131.5 109.4 The above amounts represent the balance of the franking account as at the end of the financial year, adjusted for: (a) Franking credits/debits that will arise from the payment of any current tax liability/receipt of any current tax receivable; (b) Franking debits that will arise from the payment of dividends recognised as a liability at the reporting date; and (c) Franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date. 20 Reserves and retained earnings (a) Reserves Reserves Foreign currency translation reserve Share-based payment reserve Cash flow hedge reserve Foreign currency translation Opening balance at 1 January Currency translation differences arising during the year Closing balance at 31 December Share-based payment reserve Opening balance at 1 January Share based payment expense Deferred tax Closing balance 31 December Consolidated 2023 $M 2022 $M (0.5) – 6.1 5.6 2.1 (2.6) (0.5) (0.4) – 0.4 – 2.1 (0.4) 12.1 13.8 2.2 0.1 2.1 (0.6) 0.4 (0.2) (0.4) Adbri 2023 Annual Report 80 Notes to the financial statements continued 20 Reserves and retained earnings continued (a) Reserves continued Cash flow hedge reserve Opening balance at 1 January Revaluation – gross Deferred tax on movement in reserve Closing balance 31 December Nature and purpose of other reserves Consolidated 2023 $M 2022 $M 12.2 (8.8) 2.7 6.1 2.4 14.0 (4.2) 12.2 Foreign currency translation Exchange differences arising on translation of the foreign controlled entity are recognised in other comprehensive income as described in Note 1(d) and accumulated in a separate reserve within equity. Share-based payments The share-based payments reserve is used to recognise the fair value of awards issued but not exercised. Refer Note 27. Cash flow hedges reserve The cash flow hedge reserve is used to recognise the effective portion of gains or losses on derivatives that are designated and qualify as cash flow hedges described in Note 21. The accumulated amount of a hedging instrument is transferred to the carrying value of inventory on recognition or, for hedges of items that are not non-financial assets or non-financial liabilities, to the income statement at the time of recognising the item in the income statement. (b) Retained earnings Opening balance 1 January Net profit for the year Actuarial gain/(loss) on defined benefit obligation net of tax Dividends Closing balance 31 December Consolidated 2023 $M 545.9 92.8 (2.1) – 2022 $M 521.8 102.5 (0.1) (78.3) 636.6 545.9 81 21 Financial risk management – The Group’s activities expose it to a variety of financial risks that are managed in accordance with the Company’s risk management framework that focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance where deemed material. The table below summarises the key risks and management approach. Risk Exposure arising from Measurement Management Market risk Foreign exchange Movement arising on the financial assets and liabilities not denominated in Australian Dollars Cash flow forecasting Foreign currency forwards and foreign currency options Interest rate Borrowings at variable rates Sensitivity analysis Interest rate swaps Credit risk Financial assets such as cash, trade receivables and derivative financial assets Ageing analysis Investment guidelines for counterparties Credit ratings Diversification of counterparties Liquidity risk Borrowings and other liabilities Cash flow forecasting Tenure of facilities is maintained for a period that provides flexibility in meeting future liquidity needs The Board approves written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative and non-derivative financial instruments and investment of excess liquidity. The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. Where all relevant criteria are met, hedge accounting is applied to remove the accounting mismatch between the hedging instrument and the hedged item. This will effectively result in recognising interest expense at a fixed interest rate for the hedged floating rate loans and inventory at the fixed foreign currency rate for the hedged purchases. Adbri 2023 Annual Report 82 Notes to the financial statements continued 21 Financial risk management continued (a) Derivatives The Group has the following derivative financial instruments recognised in the balance sheet: Asset/(liabilities) Foreign currency forwards – cash flow hedges Interest rate swaps – cash flow hedges ((b)(ii)) Total derivative financial instrument assets/(liabilities) (i) Classification of derivatives Consolidated 2023 $M 2022 $M – 9.3 9.3 (0.2) 17.4 17.2 The Group classifies its financial assets in the following categories: financial assets at amortised cost, financial assets at fair value through profit or loss, and hedging instruments. The classification depends on the purpose for which the financial assets were acquired, which is determined at initial recognition based upon the business model of the Group. Financial assets at amortised cost The Group classifies its financial assets at amortised cost if the asset is held with the objective of collecting contractual cash flows and the contractual terms give rise on specified dates, to cash flows that are solely payments of principal and interest. These include trade and other receivables, loan receivables and bank term deposits. Bank term deposits are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are financial assets at amortised cost and are included in current assets, except those with maturities greater than 12 months after the balance sheet date. Refer to Note 9 for details relating to trade receivables. Financial assets through profit or loss Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The Group designates certain derivatives as either: – Hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedges); or – Hedges of a particular risk associated with the cash flows of recognised assets and liabilities and highly probable forecast transaction (cash flow hedges). At the inception of the hedge relationship, the Group documents the economic relationship between hedging instruments and hedged items including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items. The Group documents its risk management objective and strategy for undertaking hedge transactions. The fair values of derivative financial instruments designated in hedge relationships are disclosed below. Movements in the hedging reserves in shareholders’ equity are shown in Note 20. The fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months; it is classified as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Derivatives are only used for economic hedging purposes and not as speculative investments. However, where derivatives do not meet the hedge accounting criteria, they are classified as ‘held for trading’ for accounting purposes and are accounted for at fair value through profit or loss. They are presented as current assets or liabilities to the extent that they are expected to be settled after the end of the reporting period. 83 Cash flow hedges that qualify for hedge accounting The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in the cash flow hedge reserve within equity. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss, within other gains/(losses). When forward contracts are used to hedge forecast transactions, the Group generally designates only the change in fair value of the forward contract related to the spot component as the hedging instrument. Gains or losses relating to the effective portion of the change in the spot component of the forward contracts are recognised in the cash flow hedge reserve within equity. The change in the forward element of the contract that relates to the hedged item (‘aligned forward element’) is recognised within OCI in the cost of hedging reserve within equity. Amounts accumulated in equity are reclassified in the periods when the hedged item affects profit or loss as follows: – Where the hedged item subsequently results in recognition of a non-financial asset (such as inventory), both the deferred hedging gains and losses and the deferred time value of the option contracts or deferred forward points, if any, are included within the initial cost of the asset. The deferred amounts are ultimately recognised in profit or loss as the hedged item affects profit or loss (for example, through cost of sales). – The gain or loss relating to the effective portion of interest rate swaps hedging variable rate borrowings is recognised in profit or loss within finance cost at the same time as the interest expense on the hedged borrowings. When a hedging instrument expires, is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative deferred gain or loss and deferred costs of hedging in equity at that time remains in equity until the forecast transaction occurs, resulting in recognition of a non-financial asset such as inventory. When the forecast transaction is no longer expected to occur, the cumulative gain or loss and deferred costs of hedging that were reported in equity are immediately reclassified to profit or loss. Derivative instruments that do not qualify for hedge accounting Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instruments that do not qualify for hedge accounting are recognised immediately in profit or loss and are included in other gains/(losses). (ii) Fair value measurement For information about the methods and assumptions used in determining the fair value of derivatives see Note 21(e). Adbri 2023 Annual Report 84 Notes to the financial statements continued 21 Financial risk management continued (a) Derivatives continued (iii) Hedging reserves The Group’s hedging reserves disclosed in Note 20(a) relate to the following hedging instruments: Opening balance 1 January 2023 Add: change in fair value of hedging instrument recognised in OCI Less: deferred tax Closing balance 31 December 2023 Opening balance 1 January 2022 Add: change in fair value of hedging instrument recognised in OCI Less: deferred tax Closing balance 31 December 2022 Forward rate component of currency forwards $M Cost of hedging $M Interest rate swaps $M Total hedging reserves $M (0.1) – – (0.1) (0.1) – – (0.1) 0.1 – – 0.1 0.3 (0.3) 0.1 0.1 12.2 (8.8) 2.7 6.1 2.2 14.3 (4.3) 12.2 12.2 (8.8) 2.7 6.1 2.4 14.0 (4.2) 12.2 Hedge effectiveness Hedge effectiveness is determined at the inception of the hedge relationship and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. For hedges of foreign currency purchases, the Group enters into hedge relationships where the critical terms of the hedging instrument match exactly with the terms of the hedged item. The Group therefore performs a qualitative assessment of effectiveness. If changes in circumstances affect the terms of the hedged item such that the critical terms no longer match exactly with the critical terms of the hedging instrument, the Group uses the hypothetical derivative method to assess effectiveness. In hedges of foreign currency purchases, ineffectiveness may arise if the timing of the forecast transaction changes from what was originally estimated, or if there are changes in the credit risk of Australia or the derivative counterparty. The Group enters into interest rate swaps with similar critical terms as the hedged item, such as reference rate, reset dates, payment dates, maturities and notional amount. The Group does not hedge 100% of its loans, therefore the hedged item is identified as a proportion of the outstanding loans up to the notional amount of the swaps. As all critical terms matched during the year, there is an economic relationship. Hedge ineffectiveness for interest rate swaps is assessed using the same principles as for hedges of foreign currency purchases. It may occur due to: – the credit value/debit value adjustment on the interest rate swaps which is not matched by the loan, and – differences in critical terms between the interest rate swaps and loans. Hedge ineffectiveness in relation to the interest rate swaps was $nil million (2022: $0.2 million). 85 (b) Market risk (i) Foreign exchange risk The Group’s activities, through its importation of cement, clinker, slag and equipment, expose it to foreign exchange risk primarily arising from US dollar currency exposures. Foreign exchange risk arises from commitments, highly probable transactions, and recognised assets and liabilities denominated in a currency that is not the entity’s functional currency. The risk is measured using sensitivity analysis and cash flow forecasting. Exposure The Group had the following exposure to foreign exchange risk, expressed in Australian Dollars: Cash – US Dollars Trade receivables – US dollars Forward foreign exchange contracts: Buy foreign currency Sell Australian Dollars (cashflow hedge) Net exposure Consolidated 2023 $M 12.4 0.0 30.4 (31.2) (0.8) 2022 $M 2.2 0.9 129.6 (129.8) (0.2) The aggregate net foreign exchange gains/(losses) recognised in the profit or loss was $nil (2022: $(0.2) million). Instruments used by the group The Group enters into Forward Exchange Contracts (FEC) and maintains bank accounts in foreign currency to hedge its foreign exchange risk on these overseas trading activities against movements in foreign currency exposure to the Australian Dollar. FECs are entered into for a duration in line with forecast purchases and currency are matched to the underlying exposure. Ineffectiveness of the hedge can arise primarily from changes in the timing of foreign currency payments compared to the duration of the FEC. The Group Treasury Risk Management Policy is to hedge up to 100% of foreign currency exposure on import of raw material of highly probable purchases for up to a calendar year forward, reflecting the underly tenure of the related raw material procurement contracts. Longer-dated hedge positions are deemed too expensive versus the value-at-risk due to the respective currencies’ interest rate spread. Effects of hedge accounting on the financial position and performance The effects of applying hedge accounting on the Group’s financial position and performance are as follows: Hedging instrument – forward foreign exchange contracts Carrying amount (liability)/asset – $ million Notional amount US Dollars – $ million Notional amount Yen – $ million Notional amount EURO – $ million Maturity date Hedge ratio Weighted average hedge rate – US Dollars Weighted average hedge rate – Yen Weighted average hedge rate – Euro Consolidated 2023 $M (0.8) 18.8 – 1.9 2022 $M (0.2) 99.8 10.5 19.4 Jan – Apr 2024 Jan – Dec 2023 1.1 1.1 A$1 : US$0.6690 A$1 : US$0.6800 – A$1 : Yen 92.9 A$1 : EURO 0.6146 A$1 : EURO 0.6394 Summarised sensitivity analysis Foreign currency risk relating to assets and liabilities at year end is immaterial as most sales and assets are denominated in Australian Dollars. The Group’s purchases that are denominated in foreign currency are settled at the time of the transaction. Consequently, liabilities recognised at 31 December are generally in Australian Dollars. All borrowings are denominated in Australian Dollars. Adbri 2023 Annual Report 86 Notes to the financial statements continued 21 Financial risk management continued (b) Market risk continued (ii) Interest rate risk The Group’s main interest rate risk arises from bank borrowings with variable rates which expose the Group to changes in interest rates. To mitigate the interest rate risk on variable rate borrowings, the Company entered into interest rate swaps. Cash advances are drawn against the debt facilities, typically for 90 days, at a variable lending rate comprising the fixed bank margin applied to the Australian bank bill swap rate effective at the date of each cash advance. In addition, cash advances on long-term facilities, maturing in 2030, are drawn at fixed rates for the term of the facility. The Group analyses its interest rate continually. Various scenarios are simulated taking into consideration refinancing, renewal of existing positions, alternative financing and hedging. The Group calculates the impact on forecast profit and loss of a defined interest rate shift. The scenarios are run only for liabilities that represent the major interest-bearing positions. As at the end of the reporting period, the Group had the following exposure to variable and fixed rate financial instruments: Variable rate instruments: Cash at bank, on hand and at call Bank facilities – unsecured Fixed rate instruments: Bank facilities – secured Bank facilities – unsecured Consolidated 2023 2022 Weighted average interest rate Weighted average interest rate Balance $M 5.2% 5.6% 6.2% 3.7% 69.5 625.0 29.3 100.0 1.5% 3.6% – 1.2% Balance $M 139.9 620.0 – 100.0 Instruments used by the group The Group uses fixed interest rate swaps to hedge movements in interest rates for a portion of variable borrowings. The swaps require settlement of net interest receivable or payable every 3–6 months. Effects of hedge accounting on the financial position and performance The effects of the interest rate swaps on the Group’s financial position and performance are as follows: Hedging instrument – interest rate swap Carrying amount asset/(liability) – $ million Notional amount – $ million Maturity date Hedge ratio Weighted average variable rate – % p.a Weighted average fixed rate – % p.a Consolidated 2023 9.3 300.0 2022 17.4 300.0 21 Nov 2024 – 7 Jan 2025 21 Nov 2024 – 7 Jan 2025 1:1 3.7 0.98 1:1 2.94 0.98 87 Sensitivity analysis The following table summarises the sensitivity of the Group’s floating rate borrowings to interest rate risk at the end of the reporting period. A 100 basis-point sensitivity has been selected as this is considered reasonable given the current short-term and long-term Australian Dollar interest rates. Interest rates – increase by 1% Interest rates – decrease by 1% (c) Credit risk Consolidated 2023 2022 Impact on post-tax profit $M (2.0) 2.0 Impact on equity $M Impact on post-tax profit $M (1.7) 1.7 (3.9) 3.9 Impact on equity $M (3.9) 3.9 Credit risk is managed on a Group basis using delegated authority limits. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions, credit exposures to customers (including joint venture customers), including outstanding receivables and committed transactions, and financial guarantees. Financial guarantees are provided from time to time in the ordinary course of business activities. These guarantees are issued in accordance with the Board approved delegated authorities. For banks and financial institutions, only independently rated parties with investment grade ratings are accepted. Derivative counterparties and cash transactions are limited to high credit quality institutions. The Group assesses the credit quality of customers, taking into account its financial position, past experience, external credit agency reports and credit references. Individual customer risk limits are set based on internal approvals in accordance with delegated authority limits set by the Board. The compliance with credit limits by credit approved customers is regularly monitored. Sales to non-account customers are settled either in cash, major credit cards or electronic funds transfer, mitigating credit risk. Customers with uncertain credit history provide personal guarantees in order to cover credit exposures. The Company applies the simplified approach (for general trade receivables) and the general approach (for joint venture receviebls) in providing for expected credit losses, which permits the use of the lifetime expected loss provision for all trade receivables (including current joint venture receivables). The loss allowance provision as at 31 December 2023 is determined as set out below, which incorporates past experience and forward looking information, including the outlook for market demand and forward looking interest rates. Consolidated 2023 Gross carrying amount $M Expected loss rate % Loss allowance $M Expected loss rate % 2022 Gross carrying amount $M Loss allowance $M 0.1 0.1 1.1 55.3 – – – – – – – 109.4 63.4 4.6 10.1 187.5 25.5 15.0 0.0 0.0 40.5 0.1 0.1 0.1 5.3 5.6 – – – – – 228.0 5.6 – – – 63.8 – – – – – – – 141.8 62.0 4.7 15.2 223.7 23.9 12.8 0.0 0.0 36.7 – – – 9.7 9.7 – – – – – 223.7 9.7 Trade Receivables – External Current More than 30 days past due More than 60 days past due More than 90 days past due Trade Receivables – Joint Ventures Current More than 30 days past due More than 60 days past due More than 90 days past due Total Adbri 2023 Annual Report 88 Notes to the financial statements continued 21 Financial risk management continued (d) Liquidity risk The ultimate responsibility for liquidity risk management rests with the Board which has established an appropriate risk management framework to manage the Group’s short, medium and long-term funding and liquidity management requirements. The Group’s Corporate Treasury function manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. The Group has $1,100.0 million of bilateral financing facilities (including $1,040.0 million of financing facilities and $60.0 million of contingent instrument lines) at 31 December 2023. The maturities of the debt facilities were extended in 2022. Accounting for these extensions, the facilities have an average maturity of 3.6 years at 31 December 2023 (2022: 4.3 years). Financial arrangements Unrestricted access was available at balance date to the following lines of credit: Total facilities Bank overdrafts Bank facilities – cash advance Bank facilities – asset financing Bank facilities – contingent instruments Used at balance date Bank overdrafts Bank facilities – cash advance Bank facilities – asset financing Bank facilities – contingent instruments Undrawn at balance date Bank overdrafts Bank facilities – cash advance Bank facilities – asset financing Bank facilities – contingent instruments Bank facilities mature during: 2024 2025 2026 2028 2029 2030 Consolidated 2023 $M 2022 $M – 940.0 100.0 60.0 4.0 940.0 – 60.0 1,100.0 1,004.0 – 725.0 29.3 43.6 797.9 – 215.0 70.7 16.4 – 720.0 – 39.6 759.6 4.0 220.0 – 20.4 302.1 244.4 35.0 50.0 765.0 57.9 100.0 92.1 35.0 50.0 765.0 50.0 100.0 – 1,100.0 1,000.0 89 The table below analyses the Group’s financial liabilities that will be settled on a gross basis. The amounts disclosed are the contractual undiscounted cash flows. For bank facilities, the cash flows have been estimated using interest rates applicable at the end of the reporting period. Contractual maturities of financial liabilities 31 December 2023 Non-derivatives Trade payables Bank facilities – secured Bank facilities – unsecured Lease liabilities Bank guarantees Derivatives Gross-settled forward foreign exchange and interest rate swap contracts (cash flow hedges): (inflow) outflow 31 December 2022 Non-derivatives Trade payables Bank facilities Lease liabilities Bank guarantees Derivatives Gross-settled forward foreign exchange and interest rate swap contracts (cash flow hedges): (inflow) outflow < 6 Months $M 6–12 Months $M 1–2 Years $M > 2 Years $M Total $M Carrying amount (assets)/ liabilities $M 175.6 3.0 – 4.7 1.3 – 3.0 – 4.5 6.5 – 6.0 – 8.9 2.5 – 23.0 725.0 131.0 33.3 175.6 35.0 725.0 149.1 43.6 175.6 29.3 718.0 87.9 – 184.6 14.0 17.4 912.3 1,128.3 1,010.8 (36.6) 31.6 (5.0) 215.9 – 4.2 0.2 220.3 (7.7) 1.7 (6.0) – – 3.9 2.7 6.6 – – – – – 7.2 4.7 11.9 – – – – 720.0 127.6 32.0 879.6 (44.3) 33.3 (11.0) 215.9 720.0 142.9 39.6 9.3 – 9.3 215.9 716.3 82.8 – 1,118.4 1,015.0 (72.9) 70.0 (2.9) (66.8) 62.7 (4.1) (9.8) 2.9 (6.9) (0.2) 0.1 (0.1) (149.5) 135.6 (13.9) 18.3 – 18.3 Adbri 2023 Annual Report 90 Notes to the financial statements continued 21 Financial risk management continued (e) Fair value measurement Fair value hierarchy The fair value of financial assets and liabilities must be estimated for recognition and measurement or for disclosure purposes. The carrying amounts of financial instruments disclosed in the balance sheet approximate their fair values. AASB 13 Fair Value Measurement requires disclosure of fair value measurements by level of the following fair value measurement hierarchy: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices). Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). (i) Recognised fair value measurements The Group measures and recognises derivatives used for hedging foreign currency risk and interest rate risk at fair value on a recurring basis. The Group held assets in relation to forward exchange contracts of $nil million (2022: liabilities of $0.2 million) at the end of the reporting period. The Group held assets in relation to interest rate swaps of $9.3 million (2022: $17.4 million) at the end of the reporting period. The fair values of the forward exchange contracts and interest rate swaps are measured with reference to forward interest rates and exchange rates at balance date and the present value of the estimated future cash flows (level 2). (ii) Disclosed fair values The Group also has a number of assets and liabilities which are not measured at fair value, but for which fair values are disclosed in the notes to these financial statements. The carrying value less impairment provision of current trade receivables and payables are assumed to approximate their fair values due to their short-term nature. For non-current receivables, the fair values are also not significantly different to their carrying amounts as a commercial rate of interest is charged to the counterparty (level 3). The interest rate for current and non-current borrowings is reset on a short-term basis, generally 30 to 90 days, and therefore the carrying value of current and non-current borrowings equal their fair values (level 2). 91 GROUP STRUCTURE 22 Joint arrangements and associate Accounting policy – joint arrangements and associate (i) Associate entity The interest in an associate is accounted for using the equity method, after initially being recorded at cost. Under the equity method, the share of the profits or losses of the associate is recognised in the income statement, and the share of post-acquisition movements in reserves is recognised in other comprehensive income. Profits or losses on transactions establishing the associate and transactions with the associate are eliminated to the extent of the Group’s ownership interest, until such time as they are realised by the associate on consumption or sale, unless they relate to an unrealised loss that provides evidence of the impairment of an asset transferred. (ii) Joint arrangements Investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations of the Group to the joint arrangement. Joint operations Interests in joint operations are accounted for in line with requirements of AASB 128 Investments in Associates and Joint Ventures. As required by AASB 128, the Group has recognised its share of assets, liabilities, revenue and expenses in the joint operations. Joint ventures Interests in joint ventures are accounted for using the equity method. Under this method, the investments are initially recognised in the Consolidated Balance Sheet at cost and adjusted thereafter to recognise the Group’s share of the post-acquisition profits or losses and movements in other comprehensive income in the Consolidated Income Statement and Consolidated Statement of Other Comprehensive Income respectively. Dividends received are recognised as a reduction in the carrying amount of the investment. When the Group’s share of losses in a joint venture equals or exceeds its interests in the joint venture (which includes any long-term interests that, in substance, form part of the Group’s net investment in the joint venture), the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the joint venture. Unrealised gains on transactions between the Group and its joint ventures are eliminated to the extent of the Group’s interest in the joint ventures. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of the joint ventures have been changed where necessary, to ensure consistency with the policies adopted by the Group. Adbri 2023 Annual Report 92 Notes to the financial statements continued 22 Joint arrangements and associate continued (a) Interests in joint arrangements and associate Name Principal place of business Ownership interest 2023 % 2022 % Aalborg Portland Malaysia Sdn. Bhd.1 Malaysia Batesford Quarry2 Burrell Mining Services JV2 Victoria New South Wales and Queensland B&A Sands Pty Ltd JV3 Victoria E.B. Mawson & Sons Pty Ltd and Lake Boga Quarries Pty Ltd3 Independent Cement and Lime Pty Ltd3 Peninsula Concrete Pty Ltd3 Sunstate Cement Ltd3 1. Associate. 2. 3. Joint operation. Joint venture. New South Wales and Victoria New South Wales and Victoria South Australia Queensland 30 50 50 50 50 50 – 50 30 50 50 50 50 50 50 50 Activities White clinker and cement manufacture Limestone products Masonry for the coal mining industry Sand quarrying Premixed concrete and quarry products Cementitious product distribution Premixed concrete Cement milling and distribution Effective 14 September 2023, the Group via its subsidiary Direct Mix Holdings Pty Ltd sold its 50% joint venture share in Peninsula Concrete for a consideration of $0.9 million, resulting in a gain on disposal of $0.2 million. Each of the above entities, except Aalborg Portland Malaysia Sdn. Bhd., has a balance sheet date of 30 June which is different to the Group’s balance sheet date of 31 December. Financial reports as at 31 December for the joint arrangements are used in the preparation of the Group financial statements. The following table outlines the movement in the carrying value of equity accounted investments. Movements in carrying value of equity accounted investments Opening balance at 1 January Share of equity accounted income Dividends received net of loans to joint ventures $2.5m (FY22: $3.1m) Reallocations (FY2023: Peninsula concrete disposal/FY2022:B&A Sands to non-current receivables) Impairment charge Transfer to reserves Closing balance at 31 December (b) Summarised financial information for joint ventures and associate Income statement 100% Revenue Profit before tax Income tax expense Net profit from continuing operations The Group’s share based on % ownership 93 Consolidated 2023 $M 226.5 29.0 (16.2) (0.7) (7.8) (2.6) 2022 $M 215.0 24.0 (12.8) 0.3 – – 228.2 226.5 Consolidated 2023 $M 2022 $M 1,030.4 934.9 60.7 (15.6) 54.7 29.0 61.6 (12.9) 48.7 24.0 (c) Contingent liabilities in respect of joint ventures The Group can acquire the interest it does not own in the Mawsons joint venture. On exercise, the enterprise value is calculated with reference to 7 times average EBITDA (based on the preceding two financial years’ performance) less debt. No liability has been recognised for this amount. The minimum amount payable to acquire the remaining interest is $90.0 million adjusted for Consumer Price Index movement between inception of the agreement and date of option being exercised (2022: $90.0 million). Adbri 2023 Annual Report 94 Notes to the financial statements continued 23 Subsidiaries The Group’s material subsidiaries at 31 December 2023 are set out below. Unless otherwise stated, the subsidiaries have share capital consisting solely of ordinary shares, which are held directly by the Group, and the proportion of ownership interests held is equal to the voting rights held by the Group. The country of incorporation or registration is also their principal place of business. Name of entity Adbri Masonry Group Pty Ltd Adbri Masonry Pty Ltd Adelaide Brighton Cement Investments Pty Ltd Adelaide Brighton Cement Ltd Adelaide Brighton Management Ltd Aus-10 Rhyolite Pty Ltd Cockburn Cement Ltd Exmouth Limestone Pty Ltd Hurd Haulage Pty Ltd Hy-Tec Industries Pty Ltd Hy-Tec Industries (Queensland) Pty Ltd Hy-Tec Industries (Victoria) Pty Ltd Morgan Cement International Pty Ltd Northern Cement Ltd Premier Resources Ltd Screenings Pty Ltd Southern Quarries Pty Ltd 24 Deed of cross guarantee Place of incorporation Class of shares Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Ord Ord Ord Ord Ord Ord Ord Ord Ord Ord Ord Ord Ord Ord Ord Ord Ord Ownership interest held by the group 2023 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 51.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 2022 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 51.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 As at the date of this report, Adbri Limited, Adelaide Brighton Cement Ltd, Cockburn Cement Ltd, Adelaide Brighton Cement Investments Pty Ltd, Adelaide Brighton Management Ltd, Northern Cement Ltd, Premier Resources Ltd, Hy-Tec Industries Pty Ltd, Hy-Tec Industries (Victoria) Pty Ltd, Hy-Tec Industries (Queensland) Pty Ltd, Morgan Cement International Pty Ltd, Adbri Masonry Group Pty Ltd, C&M Masonry Products Pty Ltd, Adbri Masonry Pty Ltd, Hurd Haulage Pty Ltd, Aus-10 Rhyolite Pty Ltd, Screenings Pty Ltd, Southern Quarries Holdings Pty Ltd, Direct Mix Holdings Pty Ltd, Southern Quarries Pty Ltd, Central Pre-Mix Concrete Pty Ltd and Hy-Tec (Northern Territory) Pty Ltd are parties to a Deed of Cross Guarantee (the Deed) under which each company guarantees the debts of the others. By entering into the Deed, wholly-owned entities classified as a ‘Closed Group’ are relieved from the requirement to prepare a financial report and Directors’ report under ASIC Corporations (Wholly-owned companies) Instrument 2016/785. Direct Mix Holdings Pty Ltd is ineligible for relief under the Instrument and is classified as a member of the ‘Extended Closed Group’ for the purposes of the Instrument. Set out below is a consolidated balance sheet as at 31 December 2023 of the Closed Group. Current assets Cash and cash equivalents Trade and other receivables Inventories Current tax assets Asset held for sale Total current assets Non-current assets Receivables Investments accounted for using the equity method Retirement benefit asset Property, plant and equipment Right-of-use assets Intangible assets Other financial assets Total-non-current assets Total assets Current liabilities Trade and other payables Borrowing Lease liabilities Provisions Current tax liabilities Other current liabilities Total current liabilities Non-current liabilities Borrowings Deferred tax liabilities Lease liabilities Provisions Total non-current liabilities Total liabilities Net assets Equity Share capital Reserves Retained earnings Total equity 95 Closed Group 2023 $M 67.7 270.7 180.7 – 17.4 536.5 87.0 150.2 3.1 1,346.2 73.7 303.1 13.5 1,976.8 2,513.3 175.2 4.3 6.0 41.9 2.1 5.2 2022 $M 137.8 276.2 172.4 15.6 9.2 611.2 81.5 138.6 6.6 1,175.8 71.4 303.7 21.5 1,799.1 2,410.3 217.7 – 5.3 39.6 – 5.8 234.7 268.4 747.3 109.4 81.9 60.5 999.1 1,233.8 1,279.5 742.5 5.9 531.1 716.3 100.8 77.4 61.2 955.7 1,224.1 1,186.2 741.2 11.3 433.7 1,279.5 1,186.2 Adbri 2023 Annual Report 96 Notes to the financial statements continued 24 Deed of cross guarantee continued Set out below is a condensed consolidated statement of comprehensive income and a summary of movements in consolidated retained earnings for the year ended 31 December 2023 of the Closed Group. Profit before income tax Income tax expense Profit for the year Retained earnings 1 January Profit for the year Other comprehensive income Dividends paid Retained earnings 31 December Closed Group 2023 $M 132.2 (34.9) 97.3 433.7 97.3 0.1 – 2022 $M 136.4 (36.2) 100.2 411.7 100.2 0.1 (78.3) 531.1 433.7 25 Parent entity financial information The financial information for the parent entity, Adbri Limited, has been prepared on the same basis as the consolidated financial statements, except as set out below. (i) Investments in subsidiaries, associates and joint arrangements Investments in subsidiaries, associates and joint arrangements are accounted for at cost in the financial statements of the Company. Such investments include both investments in shares issued by the subsidiary and other parent entity interests that in substance form part of the parent entity’s investment in the subsidiary. These include investments in the form of interest-free loans which have no fixed repayment terms and which have been provided to subsidiaries as an additional source of long-term capital. Trade receivable from subsidiaries in the normal course of business and other amounts advanced on commercial terms and conditions are included in receivables. Dividends received from associates are recognised in the parent entity’s profit or loss, rather than being deducted from the carrying amount of these investments. (ii) Tax consolidation legislation The Company and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation. The Company and the controlled entities in the tax consolidated Group account for their own current and deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated Group continues to be a stand-alone taxpayer in its own right. In addition to its own current and deferred tax amounts, the Company also recognises the current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from controlled entities in the tax consolidated Group. The entities have also entered into a tax funding agreement under which the wholly-owned entities fully compensate Adbri Limited for any current tax payable assumed and are compensated by Adbri Limited for any current tax receivable and deferred tax assets relating to unused tax losses or unused tax credits that are transferred to Adbri Limited under the tax consolidation legislation. The funding amounts are determined by reference to the amounts recognised in the wholly-owned entities’ financial statements. The amounts receivable/payable under the tax funding agreement are due upon receipt of the funding advice from the head entity, which is issued as soon as practicable after the end of each financial year. The head entity may also require payment of interim funding amounts to assist with its obligations to pay tax instalments. Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as current amounts receivable from or payable to other entities in the Group. Any difference between the amounts assumed and amounts receivable or payable under the tax funding agreement are recognised as a contribution to (or distribution from) wholly-owned tax consolidated entities. 97 (iii) Financial guarantees Where the Company has provided financial guarantees in relation to loans and payables of subsidiaries for no compensation, the fair values of these guarantees are accounted for as contributions and recognised as part of the cost of the investment. (iv) Share-based payments The grant by the Company of options over its equity instruments to the employees of subsidiary undertakings in the Group is treated as a receivable from that subsidiary undertaking. (a) Summary financial information The individual financial statements for the Company show the following aggregate amounts: Balance Sheet Current assets Total assets Current liabilities Total liabilities Net assets Shareholders’ equity Share capital Reserves Share-based payments Foreign currency translation reserve Retained earnings Total shareholders’ equity Loss for the year Total comprehensive loss (b) Guarantees entered into by the parent entity Bank guarantees (c) Contingent liabilities of the parent entity 2023 $M 2022 $M 3,078.3 3,627.9 1,797.3 2,703.8 924.1 3,022.3 3,580.7 1,756.3 2,640.9 939.8 735.4 734.1 – (0.1) 188.8 924.1 (17.4) (17.4) 2023 $M 8.1 (0.4) (0.1) 206.2 939.8 (14.9) (14.9) 2022 $M 12.1 The parent entity did not have any contingent liabilities as at 31 December 2023 or 31 December 2022 other than the bank guarantees shown above. Adbri 2023 Annual Report 98 Notes to the financial statements continued 26 Retirement benefit obligations (a) Superannuation plan details Accounting policy – retirement benefit obligations Except those employees that opt out of the Group’s superannuation plan, all employees of the Group are entitled to benefits from the Group’s superannuation plan on retirement, disability or death. The Group has a defined benefit section and defined contribution section within its plan. The defined benefit section provides defined lump sum benefits on retirement, death, disablement and withdrawal, based on years of service and final average salary. The defined benefit plan section is closed to new members. The defined contribution section receives fixed contributions from Group companies and the Group’s legal or constructive obligation is limited to these contributions. A liability or asset in respect of the defined benefit superannuation plans is recognised in the balance sheet and is measured as the present value of the defined benefit obligation at the reporting date less the fair value of the superannuation fund’s assets at that date. The present value of the defined benefit obligation is based on expected future payments, which arise from membership of the fund to the reporting date, calculated by independent actuaries using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on high quality corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur in the Consolidated Statement of Comprehensive Income. They are included in retained earnings in the Consolidated Statement of Changes in Equity and in the Consolidated Balance Sheet. Past service costs are recognised immediately in the Consolidated Income Statement. Contributions to the defined contribution fund are recognised as an expense as they become payable. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is available. Significant estimate – key assumptions The present value of defined benefit superannuation plan obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. These include selection of discount rates, future salary increases and expected rates of return. The balances of these obligations are sensitive to changes in these assumptions. Other than those employees that have opted out, employees are members of the consolidated superannuation entity, being the Adelaide Brighton Group Superannuation Plan (the Plan), a sub-plan of the Mercer Super Trust (MST). The MST is a superannuation master trust arrangement governed by an independent Trustee, Mercer Superannuation (Australia) Ltd. The Plan commenced in the MST on 1 August 2001. The Superannuation Industry (Supervision) legislation (SIS) governs the superannuation industry and provides a framework within which superannuation plans operate. The SIS Regulations require an actuarial valuation to be performed for each defined benefit superannuation plan every three years, or every year if the Plan pays defined benefit pensions. Plan assets are held in trusts which are subject to supervision by the prudential regulator. Funding levels are reviewed regularly. Where assets are less than vested benefits, being those payable upon exit, a management plan must be formed to restore the coverage to at least 100%. The Plan’s Trustee is responsible for the governance of the Plan. The Trustee has a legal obligation to act solely in the best interests of Plan beneficiaries. The Trustee has the following roles: – Administration of the Plan and payment to the beneficiaries from Plan assets when required in accordance with the Plan rules; – Management and investment of the Plan assets; and – Compliance with superannuation law and other applicable regulations. The prudential regulator, the Australian Prudential Regulation Authority (APRA), licenses and supervises regulated superannuation plans. Membership is in either the defined benefit or accumulation sections of the Plan. The accumulation section receives fixed contributions from Group companies and the Group’s legal or constructive obligation is limited to these contributions. The following sets out details in respect of the defined benefit section only. Defined benefit members receive lump sum benefits on retirement, death, disablement and withdrawal, and are guaranteed benefits to the equivalent of the notional balance they would have received as accumulation members through additional contributions from the Group. The defined benefit section of the Plan is closed to new members. During the 12 months to 31 December 2023, new employees, who are members of this fund, have become members of the accumulation category of the Plan. 99 There are a number of risks to which the Plan exposes the Company. The more significant risks relating to the defined benefits are: – Investment risk – the risk that investment returns will be lower than assumed and the Company will need to increase contributions to offset this shortfall; – Salary growth risk – the risk that wages and salaries (on which future benefit amounts will be based) will rise more rapidly than assumed, increasing defined benefit amounts and thereby requiring additional employer contributions; – – Legislative risk – the risk that legislative changes could be made which increase the cost of providing the defined benefits; and Timing of members leaving service – a significant amount of benefits paid to members leaving may have an impact on the financial position of the Plan, depending on the financial position of the Plan at the time they leave. The impact may be positive or negative, depending upon the circumstances and timing of the withdrawal. The defined benefit assets are invested in the Mercer Select Growth investment option. The assets have a 52% weighting to equities and therefore, the Plan has a significant concentration of equity market risk. However, within the equity investments, the allocation both globally and across the sectors is diversified. (b) Balance sheet amounts The amounts recognised in the balance sheet and the movements in the net defined benefit obligation over the year are as follows: At 1 January 2023 Current service cost Interest expense/(income) Remeasurements: Return on plan assets, excluding amounts included in interest expense/(income) (Gain)/loss from change in financial assumptions Experience (gains)/losses Contributions: Employers Plan participants Payments from plan: Benefit payments At 31 December 2023 At 1 January 2022 Current service cost Interest expense/(income) Remeasurements: Return on plan assets, excluding amounts included in interest expense/(income) (Gain)/loss from change in financial assumptions Experience (gains)/losses Contributions: Employers Plan participants Payments from plan: Benefit payments At 31 December 2022 Present value of obligation $M Fair value of plan assets $M Net obligation/ (asset) $M 30.2 (36.8) 0.9 1.2 2.1 – (0.3) 1.8 1.5 – 0.4 (4.0) 30.2 39.0 1.0 0.7 1.7 – (1.3) (1.0) (2.3) – 0.4 (8.6) 30.2 – (1.5) (1.5) 1.6 – – 1.6 (0.1) (0.4) 3.9 (33.3) (46.0) – (0.8) (0.8) 2.3 – – 2.3 (0.5) (0.4) 8.6 (36.8) (6.6) 0.9 (0.3) 0.6 1.6 (0.3) 1.8 3.1 (0.2) – – (3.1) (7.0) 1.0 (0.1) 0.9 2.3 (1.3) (1.0) – (0.5) – – (6.6) Adbri 2023 Annual Report 100 Notes to the financial statements continued 26 Retirement benefit obligations continued (c) Categories of plan assets The major categories of plan assets are as follows: Australian equity International equity Fixed income Property Cash Other Total 31 December 2023 Unquoted 31 December 2022 Unquoted $M 8.0 9.3 6.0 3.3 1.0 5.7 % 24% 28% 18% 10% 3% 17% $M 9.2 8.5 6.6 3.7 3.3 5.5 % 25% 23% 18% 10% 9% 15% 33.3 100% 36.8 100% The assets set out in the above table are held in the Mercer Select Growth Investment Fund which does not have a quoted price in an active market. There are no amounts relating to the Company’s own financial instruments, and property occupied by, or other assets used by, the Company. (d) Actuarial assumptions and sensitivity The significant actuarial assumptions used were as follows: Discount rate – % p.a. Future salary increases – % p.a. – first year Future salary increases – % p.a. – second year Future salary increases – % p.a. – thereafter The sensitivity of the defined benefit obligation to changes in the significant assumptions is: 2023 2022 5.7 3.5 3.0 3.0 5.0 4.0 3.0 3.0 31 December 2023 Discount rate Future salary increases 31 December 2022 Discount rate Future salary increases Impact on defined benefit obligation Change in assumption Increase in assumption Decrease in assumption 0.50 ppts 0.50 ppts 0.50 ppts 0.50 ppts Decrease by 0.9% Increase by 0.9% Increase by 0.4% Decrease by 0.4% Decrease by 0.9% Increase by 0.9% Increase by 0.5% Decrease by 0.5% The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet. (e) Defined benefit liability and employer contributions The Group made contributions to the Plan at rates of between 6% and 9% of member salaries. Expected contributions to the defined benefit plan to be made in 2024 for the year ending 31 December 2023 are $nil (2022: Nil). The weighted average duration of the defined benefit obligation is 3 years (2022: 4 years). 101 27 Share-based payments plans Accounting policy – share-based payments Share-based compensation benefits are provided to executives via the Company’s Executive Performance Share Plan (the Plan or EPSP). The fair value of share-based payments granted under the Plan is recognised as an employee benefit expense with a corresponding increase in equity. The fair value is measured at grant date and recognised over the vesting period during which the employees become unconditionally entitled to the share-based payments. The fair value at grant date is independently determined using a pricing model that takes into account the exercise price, the term of the share-based payment, the vesting and performance criteria, the impact of dilution, the non-tradeable nature of the payment, the share price at grant date, the expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the share-based payments. However, the independent valuer has reached the conclusion that historic volatility is not a factor that reliably predicts future volatility or leads to higher or lower Award values because the probability of favourable or adverse price movements is substantially equal or unable to be reliably predicted. Hence, the existence of historic volatility has been disregarded in assessing the fair value of the share-based payments. The fair value of the share-based payments granted excludes the impact of any non-market vesting conditions (e.g. earnings per share). Non-market vesting conditions are included in assumptions about the number of Awards that are expected to become exercisable. At each balance sheet date, the entity revises its estimate of the number of Awards that are expected to become exercisable. The employee benefit expense recognised each period takes into account the most recent estimate. The impact of the revision to original estimates, if any, is recognised in the income statement with a corresponding entry to equity. The Plan is administered by the Group’s employee share plan trust; see Note 1(c)(ii). (a) Employee Share Plan The Group operate two general employee share plans: – – The Employee Share Plan (ES Plan) established in 1997; and The Tax Exempt Employee Share Plan (TEES Plan) established in 2018. Subject to the Board approval of grants, employees that meet the eligibility criteria can participate in the Plan. In 2023, 569,908 shares were issued under the TEES Plan (2022: Nil shares), and Nil shares were issued under the ES Plan (2022: Nil). In subsequent years, the Board will decide whether, considering the profitability of the Company, and demands of the business, further invitations to take up grants of shares should be made. (b) Executive Performance Share Plan (EPSP) The Plan provides for grants of Awards to eligible executives. This Plan was approved by shareholders at the Annual General Meeting held on 19 November 1997. Under the Plan, eligible executives are granted Awards (each being an entitlement to a fully-paid ordinary share of Adbri Limited, subject to the satisfaction of performance conditions) on terms and conditions determined by the Board. On exercise of the Award following vesting, participants are issued shares of the Company. Detailed discussion of performance conditions is set out in the Remuneration Report. In 2023, 132,080 awards were granted under the EPSP (2022: Nil shares). Movement in number of awards outstanding Outstanding at beginning of the year Granted 2023 LTI award Granted 2022 STI deferred rights Expired Outstanding at the end of the year Exercisable at the end of the year 2023 2022 3,838,017 2,424,343 840,500 1,493,803 132,080 (938,759) (80,129) 3,739,758 3,838,017 327,886 – Awards granted in 2022 include the MD Performance Awards. Refer to the Remuneration report for further details of the MD Performance Award. The average value per share at the earliest exercise date during the year was not applicable for 2023 or 2022 as no awards vested during the year. The value per share is calculated using the Volume Weighted Closing Price which is the average of the closing price and number of Adbri Limited shares traded on the Australian Securities Exchange for the five trading days before the exercise date, but not including the day of exercise. Adbri 2023 Annual Report 102 Notes to the financial statements continued Executive Performance Share Plan continued 27 Share-based payments plans continued (b) The tables below set out the key assumptions used by the independent valuer in their valuation model to assess the fair value of the Awards. It excludes the MD Performance Awards. Awards granted in 2023 and 2022 – weighted average pricing model inputs Share price at grant date – per share Expected future dividends – per share Risk-free interest rate – % p.a. Lack of marketability discount – % p.a. TSR condition discount Earliest exercise date Fair value at grant date 2023 Awards $2.43 – 3.83 5 50% 2022 Awards $2.39 $0.40 3.29 3 50% 1 May 27 1 May 26 $1.24 $1.12 The Plan does not entitle the Participants to participate in any other share issues of the Company and the unexercised Awards do not attract dividends or voting rights. The Group recognised share-based payments expense of $181,447 during the year (2022: $405,778) in relation to the Long Term incentitive plan. The weighted average remaining contractual life of Awards outstanding at the end of the period was 1.7 years (2022: 2.1 years). 28 Related party transactions (a) Compensation of key management personnel Short-term employee benefits Post-employment benefits Share-based payments Consolidated 2023 $M 5,081.2 213.7 1,170.7 2022 $M 7,308.1 189.3 563.2 6,465.6 8,060.6 (b) Other transactions with key management personnel Raymond Barro, a Director of Adbri Limited, is Managing Director of Barro Group Pty Ltd. Rhonda Barro, a Director of Adbri Limited, is a Director of the Barro Group Pty Ltd. Barro Group Pty Ltd and Adbri Limited, through its 100% owned subsidiary, Adelaide Brighton Management Ltd, each control 50% of Independent Cement and Lime Pty Ltd, a distributor of cement and lime in Victoria and New South Wales. During the year, the Barro Group of companies purchased goods and materials from and sold goods, materials and services to Independent Cement and Lime Pty Ltd and the Group. The Barro Group of companies also purchased goods and materials from Sunstate Cement Ltd, a company in which the Group has a 50% share. Chief Executive Officer, Mark Irwin, and former Interim Chief Financial Officer, Peter Barker, were Directors of Independent Cement and Lime Pty Ltd. Brett Brown, Chief Operating Officer of Adbri Limited was a Director of the Mawson Group and Sunstate Cement Ltd. Andrew Dell, Chief Operating Officer of Adbri Limited was a Director of the Mawson Group. During the year, the Group traded significantly with Independent Cement and Lime Pty Ltd, Sunstate Cement Ltd, and the Mawsons Group, which are all joint ventures of the Group. All transactions involving Barro Group Pty Ltd and Adbri Limited and its subsidiaries, Independent Cement and Lime Pty Ltd and its subsidiaries, Sunstate Cement Ltd and the Mawson Group were conducted on standard commercial terms. Transactions entered into during the year with Directors of the Company and the Group, or their related parties, are on standard commercial terms and conditions, and include the purchase of goods from the Group and the receipt of dividends from the Company. Aggregate amounts of the above transactions by subsidiaries and joint ventures with the Directors and their related parties: Sales to Director related parties Purchases from Director related parties Consolidated 2023 $M 2022 $M 128,653 52,750 110,127 34,568 103 (c) Controlled entities The ultimate parent company is Adbri Limited. Details of interests in controlled entities are set out in Note 23. (d) Joint arrangement and associate entities The nature of transactions with joint arrangement and associate entities is detailed below: Adelaide Brighton Cement Ltd and Morgan Cement International Ltd supplied finished products and raw materials to Sunstate Cement Ltd, Independent Cement and Lime Pty Ltd and Peninsula Concrete Pty Ltd. Hy-Tec Industries Pty Ltd, Hy-Tec Industries (Victoria) Pty Ltd, Hy-Tec Industries (Queensland) Pty Ltd, Adbri Masonry Group Pty Ltd, Adelaide Brighton Cement Ltd and Cockburn Cement Ltd purchased finished products, raw materials and transportation services from Sunstate Cement Ltd, Independent Cement and Lime Pty Ltd and Aalborg Portland Malaysia Sdn. Bhd. All transactions are on normal commercial terms and conditions and transactions for the supply are covered by shareholder agreements. (e) Transactions with other related parties The following transactions occurred with related parties: Sales of goods: Joint venture entities Purchases of materials and goods: Joint venture entities Associate entities Interest revenue: Joint venture entities Dividend and distribution income: Joint venture entities Defined benefit contributions: Consolidated 2023 $M 2022 $M 327,887 299,157 134,159 9,068 108,729 14,440 4,316 2,609 18,559 17,035 Contributions to defined benefit funds on behalf of employees 75 528 Loans advanced to: Joint venture entities 2,482 3,113 (f) Outstanding balances arising from sales/purchases of goods and services The following balances are outstanding at the end of the reporting year in relation to transactions with related parties: Current receivables: Joint venture entities (interest) Joint venture entities (trade) Non-current receivables: Joint venture entities (loans) Current payables: Joint venture entities (trade) Consolidated 2023 $M 1,588 40,435 2022 $M 1,005 36,651 87,015 81,488 7,756 17,326 Adbri 2023 Annual Report 104 Notes to the financial statements continued 28 Related party transactions continued (g) Loans to/from related parties Loans to joint venture entities, Independent Cement and Lime Pty Ltd and B&A Sands Pty Ltd, have interest charged at commercial rates on the outstanding balance. Interest revenue brought to account by the Group during the reporting year on this loan was $4,315,834 (2022: $2,609,375). 29 Events occurring after the reporting period On December, following receipt of a non-binding indicative proposal from CRH ANZ Pty Ltd (CRH) and Barro Properties Pty Ltd (Barro Properties) Adbri entered into a process and exclusivity deed to progress a potential transaction under which CRH would acquire 100% of the Adbri shares not held by the Barro Group for $3.20 per share in cash. An Independent Board Committee (IBC) comprising Adbri’s independent Non-executive Directors was formed to evaluate the proposal and, if applicable, progress the transaction via a scheme implementation agreement. The Barro Group nominee directors have recused themselves from the Adbri Board and all Board sub-committees while the proposal is under consideration. On 27 February 2024, the Company and CRH entered into a binding scheme implementation deed to proceed with the proposed scheme of arrangement with the IBC unanimously recommending the scheme to shareholders, in the absence of a superior proposal and subject to an independent expert concluding (and continuing to conclude) that the transaction is in the best interests of shareholders. On 8 January 2024, Alcoa announced the curtailment of its Kwinana refinery in Western Australia. Adbri is in negotiations with Alcoa regarding its supply agreement which expires in October 2024. On 26 February 2024, Adbri announced that its wholly owned subsidiary, Adelaide Brighton Cement Ltd, trading as Adbri Cement, has agreed with ICL to the supply and distribution of cementitious materials for a four month period. ICL is a 50:50 joint venture between Adbri and the Barro Group. The interim arrangements will take effect from 1 March 2024 and expire on 30 June 2024, with pricing terms that are reflective of the current market conditions. Since the end of the financial year, the Board has decided not to declare a final dividend for the year. Other than the above, no matter or circumstance has occurred subsequent to 31 December 2023 that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations or the state of affairs of the Group or economic entity in subsequent financial periods. 30 Commitments for capital and leasing expenditure Significant capital expenditure contracted for at the end of the reporting year but not recognised as liabilities is as follows: Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows: Within one year Consolidated 2023 $M 2022 $M 59.4 113.9 On 20 December 2023, the Group announced a long-term agreement for CSL Group Inc. (CSL) to supply and operate a new hybrid electric battery powered limestone transport vessel to support the Company’s South Australian cement operations from mid-2026. The agreement is for 20 years, plus two five-year options, with an estimated minimum fixed payment, on a net present value basis, of $35.3 million over the life of the contract. 105 31 Remuneration of auditors During the year the following fees were paid or payable for services provided by the auditor of the parent entity, its related network firms practices and non-related audit firms: Audit services Deloitte Touche Tohmatsu Australian firm Audit and review of financial reports Non-audit services Deloitte Touche Tohmatsu Australian firm Other assurance services 32 Contingency Details and estimates of maximum amounts of contingent liabilities are as follows: Guarantees Bank guarantees Litigation Consolidated 2023 $’000 2022 $’000 797.0 745.0 36.0 181.0 Consolidated 2023 $M 43.6 2022 $M 39.6 At the time of preparing this financial report some companies included in the Group are parties to pending legal proceedings, the outcome of which is not known. The entities are defending, or prosecuting, these proceedings. Management continuously monitors the progress of these proceedings and appropriate financial provisions are made in the Group’s consolidated financial statements where the recognition criteria in the accounting standards are met. The Directors have assessed the impact on the Group from the individual actions. No material losses are anticipated in respect of any of the above contingent liabilities. Adbri 2023 Annual Report 106 Directors’ declaration In the Directors’ opinion: (a) the financial statements and notes set out on pages 8 to 105 are in accordance with the Corporations Act 2001, including: (ii) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements, and (iii) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2023 and of its performance for the financial year ended on that date, and (b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable, and (c) at the date of this declaration, there are reasonable grounds to believe that the members of the Extended Closed Group identified in Note 24 will be able to meet any obligations or liabilities to which they are, or may become, subject by virtue of the Deed of Cross Guarantee described in Note 24. Note 1(a) confirms that the financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board. The Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by section 295A of the Corporations Act 2001. This declaration is made in accordance with a resolution of the Directors. Samantha Hogg Deputy Chair Dated: 27 February 2024 Auditor’s independence declaration 107 (cid:3) (cid:24)(cid:286)(cid:367)(cid:381)(cid:349)(cid:410)(cid:410)(cid:286)(cid:3)(cid:100)(cid:381)(cid:437)(cid:272)(cid:346)(cid:286)(cid:3)(cid:100)(cid:381)(cid:346)(cid:373)(cid:258)(cid:410)(cid:400)(cid:437)(cid:3) (cid:4)(cid:17)(cid:69)(cid:3)(cid:1011)(cid:1008)(cid:3)(cid:1008)(cid:1013)(cid:1004)(cid:3)(cid:1005)(cid:1006)(cid:1005)(cid:3)(cid:1004)(cid:1010)(cid:1004)(cid:3) (cid:89)(cid:437)(cid:258)(cid:455)(cid:3)(cid:89)(cid:437)(cid:258)(cid:396)(cid:410)(cid:286)(cid:396)(cid:3)(cid:100)(cid:381)(cid:449)(cid:286)(cid:396)(cid:3) (cid:1009)(cid:1004)(cid:3)(cid:17)(cid:396)(cid:349)(cid:282)(cid:336)(cid:286)(cid:3)(cid:94)(cid:410)(cid:396)(cid:286)(cid:286)(cid:410)(cid:3) (cid:94)(cid:455)(cid:282)(cid:374)(cid:286)(cid:455)(cid:853)(cid:3)(cid:69)(cid:94)(cid:116)(cid:853)(cid:3)(cid:1006)(cid:1004)(cid:1004)(cid:1004)(cid:3) (cid:4)(cid:437)(cid:400)(cid:410)(cid:396)(cid:258)(cid:367)(cid:349)(cid:258)(cid:3) (cid:3) (cid:87)(cid:346)(cid:381)(cid:374)(cid:286)(cid:855)(cid:3)(cid:1085)(cid:1010)(cid:1005)(cid:3)(cid:1006)(cid:3)(cid:1013)(cid:1007)(cid:1006)(cid:1006)(cid:3)(cid:1011)(cid:1004)(cid:1004)(cid:1004)(cid:3) (cid:449)(cid:449)(cid:449)(cid:856)(cid:282)(cid:286)(cid:367)(cid:381)(cid:349)(cid:410)(cid:410)(cid:286)(cid:856)(cid:272)(cid:381)(cid:373)(cid:856)(cid:258)(cid:437)(cid:3) (cid:1006)(cid:1011)(cid:3)(cid:38)(cid:286)(cid:271)(cid:396)(cid:437)(cid:258)(cid:396)(cid:455)(cid:3)(cid:1006)(cid:1004)(cid:1006)(cid:1008)(cid:3) (cid:3) (cid:100)(cid:346)(cid:286)(cid:3)(cid:17)(cid:381)(cid:258)(cid:396)(cid:282)(cid:3)(cid:381)(cid:296)(cid:3)(cid:24)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:400)(cid:3) (cid:4)(cid:282)(cid:271)(cid:396)(cid:349)(cid:3)(cid:62)(cid:349)(cid:373)(cid:349)(cid:410)(cid:286)(cid:282)(cid:3) (cid:62)(cid:286)(cid:448)(cid:286)(cid:367)(cid:3)(cid:1008)(cid:3)(cid:3) (cid:1005)(cid:1009)(cid:1005)(cid:3)(cid:87)(cid:349)(cid:396)(cid:349)(cid:286)(cid:3)(cid:94)(cid:410)(cid:396)(cid:286)(cid:286)(cid:410)(cid:3)(cid:3) (cid:4)(cid:24)(cid:28)(cid:62)(cid:4)(cid:47)(cid:24)(cid:28)(cid:3)(cid:94)(cid:4)(cid:3)(cid:1009)(cid:1004)(cid:1004)(cid:1004)(cid:3) (cid:3) (cid:3) (cid:24)(cid:286)(cid:258)(cid:396)(cid:3)(cid:17)(cid:381)(cid:258)(cid:396)(cid:282)(cid:3)(cid:68)(cid:286)(cid:373)(cid:271)(cid:286)(cid:396)(cid:400)(cid:3)(cid:3) AAuuddiittoorr’’ss IInnddeeppeennddeenn(cid:272)(cid:272)(cid:286)(cid:286)(cid:3)(cid:3)(cid:24)(cid:24)(cid:286)(cid:286)(cid:272)(cid:272)(cid:367)(cid:367)(cid:258)(cid:258)(cid:396)(cid:396)(cid:258)(cid:258)(cid:410)(cid:410)(cid:349)(cid:349)(cid:381)(cid:381)(cid:374)(cid:374)(cid:3)(cid:3)(cid:410)(cid:410)(cid:381)(cid:381)(cid:3)(cid:3)(cid:4)(cid:4)(cid:282)(cid:282)(cid:271)(cid:271)(cid:396)(cid:396)(cid:349)(cid:349)(cid:3)(cid:3)(cid:62)(cid:62)(cid:349)(cid:349)(cid:373)(cid:373)(cid:349)(cid:349)(cid:410)(cid:410)(cid:286)(cid:286)(cid:282)(cid:282)(cid:3)(cid:3) (cid:47)(cid:374)(cid:3)(cid:258)(cid:272)(cid:272)(cid:381)(cid:396)(cid:282)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:400)(cid:286)(cid:272)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:1007)(cid:1004)(cid:1011)(cid:18)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:396)(cid:393)(cid:381)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:4)(cid:272)(cid:410)(cid:3)(cid:1006)(cid:1004)(cid:1004)(cid:1005)(cid:853)(cid:3)(cid:47)(cid:3)(cid:258)(cid:373)(cid:3)(cid:393)(cid:367)(cid:286)(cid:258)(cid:400)(cid:286)(cid:282)(cid:3)(cid:410)(cid:381)(cid:3)(cid:393)(cid:396)(cid:381)(cid:448)(cid:349)(cid:282)(cid:286)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:381)(cid:367)(cid:367)(cid:381)(cid:449)(cid:349)(cid:374)(cid:336)(cid:3)(cid:282)(cid:286)(cid:272)(cid:367)(cid:258)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3) (cid:381)(cid:296)(cid:3)(cid:349)(cid:374)(cid:282)(cid:286)(cid:393)(cid:286)(cid:374)(cid:282)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:282)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:4)(cid:282)(cid:271)(cid:396)(cid:349)(cid:3)(cid:62)(cid:349)(cid:373)(cid:349)(cid:410)(cid:286)(cid:282)(cid:856)(cid:3) (cid:4)(cid:400)(cid:3)(cid:367)(cid:286)(cid:258)(cid:282)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:393)(cid:258)(cid:396)(cid:410)(cid:374)(cid:286)(cid:396)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:4)(cid:282)(cid:271)(cid:396)(cid:349)(cid:3)(cid:62)(cid:349)(cid:373)(cid:349)(cid:410)(cid:286)(cid:282)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:455)(cid:286)(cid:258)(cid:396)(cid:3)(cid:286)(cid:374)(cid:282)(cid:286)(cid:282)(cid:3)(cid:1007)(cid:1005)(cid:3)(cid:24)(cid:286)(cid:272)(cid:286)(cid:373)(cid:271)(cid:286)(cid:396)(cid:3)(cid:1006)(cid:1004)(cid:1006)(cid:1007)(cid:853)(cid:3) (cid:47)(cid:3)(cid:282)(cid:286)(cid:272)(cid:367)(cid:258)(cid:396)(cid:286)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:271)(cid:286)(cid:400)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:373)(cid:455)(cid:3)(cid:364)(cid:374)(cid:381)(cid:449)(cid:367)(cid:286)(cid:282)(cid:336)(cid:286)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:271)(cid:286)(cid:367)(cid:349)(cid:286)(cid:296)(cid:853)(cid:3)(cid:410)(cid:346)(cid:286)(cid:396)(cid:286)(cid:3)(cid:346)(cid:258)(cid:448)(cid:286)(cid:3)(cid:271)(cid:286)(cid:286)(cid:374)(cid:3)(cid:374)(cid:381)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:396)(cid:258)(cid:448)(cid:286)(cid:374)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:381)(cid:296)(cid:855)(cid:3) • (cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:381)(cid:396)(cid:3)(cid:349)(cid:374)(cid:282)(cid:286)(cid:393)(cid:286)(cid:374)(cid:282)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3)(cid:396)(cid:286)(cid:395)(cid:437)(cid:349)(cid:396)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:396)(cid:393)(cid:381)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:4)(cid:272)(cid:410)(cid:3)(cid:1006)(cid:1004)(cid:1004)(cid:1005)(cid:3)(cid:349)(cid:374)(cid:3)(cid:396)(cid:286)(cid:367)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:854)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3) • (cid:258)(cid:374)(cid:455)(cid:3)(cid:258)(cid:393)(cid:393)(cid:367)(cid:349)(cid:272)(cid:258)(cid:271)(cid:367)(cid:286)(cid:3)(cid:272)(cid:381)(cid:282)(cid:286)(cid:3)(cid:381)(cid:296)(cid:3)(cid:393)(cid:396)(cid:381)(cid:296)(cid:286)(cid:400)(cid:400)(cid:349)(cid:381)(cid:374)(cid:258)(cid:367)(cid:3)(cid:272)(cid:381)(cid:374)(cid:282)(cid:437)(cid:272)(cid:410)(cid:3)(cid:349)(cid:374)(cid:3)(cid:396)(cid:286)(cid:367)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:856)(cid:3) (cid:122)(cid:381)(cid:437)(cid:396)(cid:400)(cid:3)(cid:296)(cid:258)(cid:349)(cid:410)(cid:346)(cid:296)(cid:437)(cid:367)(cid:367)(cid:455)(cid:3) (cid:3) (cid:3) (cid:24)(cid:28)(cid:62)(cid:75)(cid:47)(cid:100)(cid:100)(cid:28)(cid:3)(cid:100)(cid:75)(cid:104)(cid:18)(cid:44)(cid:28)(cid:3)(cid:100)(cid:75)(cid:44)(cid:68)(cid:4)(cid:100)(cid:94)(cid:104)(cid:3) (cid:3) (cid:3) (cid:58)(cid:258)(cid:400)(cid:381)(cid:374)(cid:3)(cid:100)(cid:346)(cid:381)(cid:396)(cid:374)(cid:286)(cid:3)(cid:3) (cid:87)(cid:258)(cid:396)(cid:410)(cid:374)(cid:286)(cid:396)(cid:3)(cid:3) (cid:18)(cid:346)(cid:258)(cid:396)(cid:410)(cid:286)(cid:396)(cid:286)(cid:282)(cid:3)(cid:4)(cid:272)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:258)(cid:374)(cid:410)(cid:400)(cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:62)(cid:349)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:455)(cid:3)(cid:367)(cid:349)(cid:373)(cid:349)(cid:410)(cid:286)(cid:282)(cid:3)(cid:271)(cid:455)(cid:3)(cid:258)(cid:3)(cid:400)(cid:272)(cid:346)(cid:286)(cid:373)(cid:286)(cid:3)(cid:258)(cid:393)(cid:393)(cid:396)(cid:381)(cid:448)(cid:286)(cid:282)(cid:3)(cid:437)(cid:374)(cid:282)(cid:286)(cid:396)(cid:3)(cid:87)(cid:396)(cid:381)(cid:296)(cid:286)(cid:400)(cid:400)(cid:349)(cid:381)(cid:374)(cid:258)(cid:367)(cid:3)(cid:94)(cid:410)(cid:258)(cid:374)(cid:282)(cid:258)(cid:396)(cid:282)(cid:400)(cid:3)(cid:62)(cid:286)(cid:336)(cid:349)(cid:400)(cid:367)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:856)(cid:3) (cid:68)(cid:286)(cid:373)(cid:271)(cid:286)(cid:396)(cid:3)(cid:381)(cid:296)(cid:3)(cid:24)(cid:286)(cid:367)(cid:381)(cid:349)(cid:410)(cid:410)(cid:286)(cid:3)(cid:4)(cid:400)(cid:349)(cid:258)(cid:3)(cid:87)(cid:258)(cid:272)(cid:349)(cid:296)(cid:349)(cid:272)(cid:3)(cid:62)(cid:349)(cid:373)(cid:349)(cid:410)(cid:286)(cid:282)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:24)(cid:286)(cid:367)(cid:381)(cid:349)(cid:410)(cid:410)(cid:286)(cid:3)(cid:381)(cid:396)(cid:336)(cid:258)(cid:374)(cid:349)(cid:400)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:856)(cid:3) Adbri 2023 Annual Report 108 Independent auditor’s report to the members of Adbri Ltd (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:24)(cid:286)(cid:367)(cid:381)(cid:349)(cid:410)(cid:410)(cid:286)(cid:3)(cid:100)(cid:381)(cid:437)(cid:272)(cid:346)(cid:286)(cid:3)(cid:100)(cid:381)(cid:346)(cid:373)(cid:258)(cid:410)(cid:400)(cid:437)(cid:3) (cid:4)(cid:17)(cid:69)(cid:3)(cid:1011)(cid:1008)(cid:3)(cid:1008)(cid:1013)(cid:1004)(cid:3)(cid:1005)(cid:1006)(cid:1005)(cid:3)(cid:1004)(cid:1010)(cid:1004)(cid:3) (cid:89)(cid:437)(cid:258)(cid:455)(cid:3)(cid:89)(cid:437)(cid:258)(cid:396)(cid:410)(cid:286)(cid:396)(cid:3)(cid:100)(cid:381)(cid:449)(cid:286)(cid:396)(cid:3) (cid:1009)(cid:1004)(cid:3)(cid:17)(cid:396)(cid:349)(cid:282)(cid:336)(cid:286)(cid:3)(cid:94)(cid:410)(cid:396)(cid:286)(cid:286)(cid:410)(cid:3) (cid:94)(cid:455)(cid:282)(cid:374)(cid:286)(cid:455)(cid:3)(cid:69)(cid:94)(cid:116)(cid:3)(cid:1006)(cid:1004)(cid:1004)(cid:1004)(cid:3) (cid:4)(cid:437)(cid:400)(cid:410)(cid:396)(cid:258)(cid:367)(cid:349)(cid:258)(cid:3) (cid:3) (cid:87)(cid:346)(cid:381)(cid:374)(cid:286)(cid:855)(cid:3)(cid:1085)(cid:1010)(cid:1005)(cid:3)(cid:1006)(cid:3)(cid:1013)(cid:1007)(cid:1006)(cid:1006)(cid:3)(cid:1011)(cid:1004)(cid:1004)(cid:1004)(cid:3) (cid:449)(cid:449)(cid:449)(cid:856)(cid:282)(cid:286)(cid:367)(cid:381)(cid:349)(cid:410)(cid:410)(cid:286)(cid:856)(cid:272)(cid:381)(cid:373)(cid:856)(cid:258)(cid:437)(cid:3) (cid:3) (cid:3)(cid:3)(cid:3) IInnddeeppeennddeenntt AAuuddiittoorr’’ss RReeppoorrtt ttoo tthhee mmeemmbbeerrss ooff AAddbbrrii LLiimmiitteedd(cid:3)(cid:3) (cid:90)(cid:90)(cid:286)(cid:286)(cid:393)(cid:393)(cid:381)(cid:381)(cid:396)(cid:396)(cid:410)(cid:410)(cid:3)(cid:3)(cid:381)(cid:381)(cid:374)(cid:374)(cid:3)(cid:3)(cid:410)(cid:410)(cid:346)(cid:346)(cid:286)(cid:286)(cid:3)(cid:3)(cid:4)(cid:4)(cid:437)(cid:437)(cid:282)(cid:282)(cid:349)(cid:349)(cid:410)(cid:410)(cid:3)(cid:3)(cid:381)(cid:381)(cid:296)(cid:296)(cid:3)(cid:3)(cid:410)(cid:410)(cid:346)(cid:346)(cid:286)(cid:286)(cid:3)(cid:3)(cid:38)(cid:38)(cid:349)(cid:349)(cid:374)(cid:374)(cid:258)(cid:258)(cid:374)(cid:374)(cid:272)(cid:272)(cid:349)(cid:349)(cid:258)(cid:258)(cid:367)(cid:367)(cid:3)(cid:3)(cid:90)(cid:90)(cid:286)(cid:286)(cid:393)(cid:393)(cid:381)(cid:381)(cid:396)(cid:396)(cid:410)(cid:410)(cid:3)(cid:3) (cid:75)(cid:393)(cid:349)(cid:374)(cid:349)(cid:381)(cid:374)(cid:3) We have audited the financial report of Adbri Limited (the “Company”) and its subsidiaries (the “Group”) which (cid:272)(cid:381)(cid:373)(cid:393)(cid:396)(cid:349)(cid:400)(cid:286)(cid:400)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:381)(cid:374)(cid:400)(cid:381)(cid:367)(cid:349)(cid:282)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:271)(cid:258)(cid:367)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:400)(cid:346)(cid:286)(cid:286)(cid:410)(cid:3)(cid:258)(cid:400)(cid:3)(cid:258)(cid:410)(cid:3)(cid:1007)(cid:1005)(cid:3)(cid:24)(cid:286)(cid:272)(cid:286)(cid:373)(cid:271)(cid:286)(cid:396)(cid:3)(cid:1006)(cid:1004)(cid:1006)(cid:1007)(cid:853)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:381)(cid:374)(cid:400)(cid:381)(cid:367)(cid:349)(cid:282)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:272)(cid:381)(cid:373)(cid:286)(cid:3)(cid:400)(cid:410)(cid:258)(cid:410)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:853)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3) (cid:272)(cid:381)(cid:374)(cid:400)(cid:381)(cid:367)(cid:349)(cid:282)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:400)(cid:410)(cid:258)(cid:410)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:272)(cid:381)(cid:373)(cid:393)(cid:396)(cid:286)(cid:346)(cid:286)(cid:374)(cid:400)(cid:349)(cid:448)(cid:286)(cid:3)(cid:349)(cid:374)(cid:272)(cid:381)(cid:373)(cid:286)(cid:853)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:381)(cid:374)(cid:400)(cid:381)(cid:367)(cid:349)(cid:282)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:400)(cid:410)(cid:258)(cid:410)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:272)(cid:346)(cid:258)(cid:374)(cid:336)(cid:286)(cid:400)(cid:3)(cid:349)(cid:374)(cid:3)(cid:286)(cid:395)(cid:437)(cid:349)(cid:410)(cid:455)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3) (cid:272)(cid:381)(cid:374)(cid:400)(cid:381)(cid:367)(cid:349)(cid:282)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:400)(cid:410)(cid:258)(cid:410)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:272)(cid:258)(cid:400)(cid:346)(cid:3)(cid:296)(cid:367)(cid:381)(cid:449)(cid:400)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:455)(cid:286)(cid:258)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:374)(cid:3)(cid:286)(cid:374)(cid:282)(cid:286)(cid:282)(cid:853)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:374)(cid:381)(cid:410)(cid:286)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:400)(cid:410)(cid:258)(cid:410)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:853)(cid:3)(cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:349)(cid:374)(cid:336)(cid:3)(cid:258)(cid:3) (cid:400)(cid:437)(cid:373)(cid:373)(cid:258)(cid:396)(cid:455)(cid:3)(cid:381)(cid:296)(cid:3)(cid:400)(cid:349)(cid:336)(cid:374)(cid:349)(cid:296)(cid:349)(cid:272)(cid:258)(cid:374)(cid:410)(cid:3)(cid:258)ccounting policies, and the directors’ declaration.(cid:3) (cid:3) (cid:47)(cid:374)(cid:3)(cid:381)(cid:437)(cid:396)(cid:3)(cid:381)(cid:393)(cid:349)(cid:374)(cid:349)(cid:381)(cid:374)(cid:853)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:272)(cid:272)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:349)(cid:374)(cid:336)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:3)(cid:349)(cid:400)(cid:3)(cid:349)(cid:374)(cid:3)(cid:258)(cid:272)(cid:272)(cid:381)(cid:396)(cid:282)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:396)(cid:393)(cid:381)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:4)(cid:272)(cid:410)(cid:3)(cid:1006)(cid:1004)(cid:1004)(cid:1005)(cid:853)(cid:3) (cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:349)(cid:374)(cid:336)(cid:855)(cid:3) • Giving a true and fair view of the Group’s financial position as at 31 December (cid:1006)(cid:1004)(cid:1006)(cid:1007)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:381)(cid:296)(cid:3)(cid:349)(cid:410)(cid:400)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3) (cid:393)(cid:286)(cid:396)(cid:296)(cid:381)(cid:396)(cid:373)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:455)(cid:286)(cid:258)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:374)(cid:3)(cid:286)(cid:374)(cid:282)(cid:286)(cid:282)(cid:854)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:3) • (cid:18)(cid:381)(cid:373)(cid:393)(cid:367)(cid:455)(cid:349)(cid:374)(cid:336)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:4)(cid:437)(cid:400)(cid:410)(cid:396)(cid:258)(cid:367)(cid:349)(cid:258)(cid:374)(cid:3)(cid:4)(cid:272)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:94)(cid:410)(cid:258)(cid:374)(cid:282)(cid:258)(cid:396)(cid:282)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:396)(cid:393)(cid:381)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:90)(cid:286)(cid:336)(cid:437)(cid:367)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:1006)(cid:1004)(cid:1004)(cid:1005)(cid:856)(cid:3) (cid:17)(cid:258)(cid:400)(cid:349)(cid:400)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:75)(cid:393)(cid:349)(cid:374)(cid:349)(cid:381)(cid:374)(cid:3) (cid:116)(cid:286)(cid:3)(cid:272)(cid:381)(cid:374)(cid:282)(cid:437)(cid:272)(cid:410)(cid:286)(cid:282)(cid:3)(cid:381)(cid:437)(cid:396)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:349)(cid:374)(cid:3)(cid:258)(cid:272)(cid:272)(cid:381)(cid:396)(cid:282)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:4)(cid:437)(cid:400)(cid:410)(cid:396)(cid:258)(cid:367)(cid:349)(cid:258)(cid:374)(cid:3)(cid:4)(cid:437)(cid:282)(cid:349)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:94)(cid:410)(cid:258)(cid:374)(cid:282)(cid:258)(cid:396)(cid:282)(cid:400)(cid:856)(cid:3)(cid:75)(cid:437)(cid:396)(cid:3)(cid:396)(cid:286)(cid:400)(cid:393)(cid:381)(cid:374)(cid:400)(cid:349)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:349)(cid:286)(cid:400)(cid:3)(cid:437)(cid:374)(cid:282)(cid:286)(cid:396)(cid:3)(cid:410)(cid:346)(cid:381)(cid:400)(cid:286)(cid:3) standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our (cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:856)(cid:3)(cid:116)(cid:286)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:349)(cid:374)(cid:282)(cid:286)(cid:393)(cid:286)(cid:374)(cid:282)(cid:286)(cid:374)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:3)(cid:349)(cid:374)(cid:3)(cid:258)(cid:272)(cid:272)(cid:381)(cid:396)(cid:282)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:381)(cid:396)(cid:3)(cid:349)(cid:374)(cid:282)(cid:286)(cid:393)(cid:286)(cid:374)(cid:282)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3)(cid:396)(cid:286)(cid:395)(cid:437)(cid:349)(cid:396)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3) (cid:18)(cid:381)(cid:396)(cid:393)(cid:381)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:4)(cid:272)(cid:410)(cid:3)(cid:1006)(cid:1004)(cid:1004)(cid:1005)(cid:3)and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES (cid:1005)(cid:1005)(cid:1004)(cid:3)(cid:18)(cid:381)(cid:282)(cid:286)(cid:3)(cid:381)(cid:296)(cid:3)(cid:28)(cid:410)(cid:346)(cid:349)(cid:272)(cid:400)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:87)(cid:396)(cid:381)(cid:296)(cid:286)(cid:400)(cid:400)(cid:349)(cid:381)(cid:374)(cid:258)(cid:367)(cid:3)(cid:4)(cid:272)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:258)(cid:374)(cid:410)(cid:400)(cid:3)(cid:894)(cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:349)(cid:374)(cid:336)(cid:3)(cid:47)(cid:374)(cid:282)(cid:286)(cid:393)(cid:286)(cid:374)(cid:282)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3)(cid:94)(cid:410)(cid:258)(cid:374)(cid:282)(cid:258)(cid:396)(cid:282)(cid:400)(cid:895)(cid:3)(cid:894)(cid:410)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:282)(cid:286)(cid:895)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:396)(cid:286)(cid:367)(cid:286)(cid:448)(cid:258)(cid:374)(cid:410)(cid:3)(cid:410)(cid:381)(cid:3) (cid:381)(cid:437)(cid:396)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:349)(cid:374)(cid:3)(cid:4)(cid:437)(cid:400)(cid:410)(cid:396)(cid:258)(cid:367)(cid:349)(cid:258)(cid:856)(cid:3)(cid:116)(cid:286)(cid:3)(cid:346)(cid:258)(cid:448)(cid:286)(cid:3)(cid:258)(cid:367)(cid:400)(cid:381)(cid:3)(cid:296)(cid:437)(cid:367)(cid:296)(cid:349)(cid:367)(cid:367)(cid:286)(cid:282)(cid:3)(cid:381)(cid:437)(cid:396)(cid:3)(cid:381)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:286)(cid:410)(cid:346)(cid:349)(cid:272)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:400)(cid:393)(cid:381)(cid:374)(cid:400)(cid:349)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:349)(cid:286)(cid:400)(cid:3)(cid:349)(cid:374)(cid:3)(cid:258)(cid:272)(cid:272)(cid:381)(cid:396)(cid:282)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3) (cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:282)(cid:286)(cid:856)(cid:3) (cid:116)(cid:286)(cid:3)(cid:272)(cid:381)(cid:374)(cid:296)(cid:349)(cid:396)(cid:373)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:349)(cid:374)(cid:282)(cid:286)(cid:393)(cid:286)(cid:374)(cid:282)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3)(cid:282)(cid:286)(cid:272)(cid:367)(cid:258)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:396)(cid:286)(cid:395)(cid:437)(cid:349)(cid:396)(cid:286)(cid:282)(cid:3)(cid:271)(cid:455)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:396)(cid:393)(cid:381)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:4)(cid:272)(cid:410)(cid:3)(cid:1006)(cid:1004)(cid:1004)(cid:1005)(cid:853)(cid:3)(cid:449)(cid:346)(cid:349)(cid:272)(cid:346)(cid:3)(cid:346)(cid:258)(cid:400)(cid:3)(cid:271)(cid:286)(cid:286)(cid:374)(cid:3)(cid:336)(cid:349)(cid:448)(cid:286)(cid:374)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3) (cid:282)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:853)(cid:3)(cid:449)(cid:381)(cid:437)(cid:367)(cid:282)(cid:3)(cid:271)(cid:286)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:400)(cid:258)(cid:373)(cid:286)(cid:3)terms if given to the directors as at the time of this auditor’s report. (cid:3) (cid:116)(cid:286)(cid:3)(cid:271)(cid:286)(cid:367)(cid:349)(cid:286)(cid:448)(cid:286)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:286)(cid:448)(cid:349)(cid:282)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3)(cid:449)(cid:286)(cid:3)(cid:346)(cid:258)(cid:448)(cid:286)(cid:3)(cid:381)(cid:271)(cid:410)(cid:258)(cid:349)(cid:374)(cid:286)(cid:282)(cid:3)(cid:349)(cid:400)(cid:3)(cid:400)(cid:437)(cid:296)(cid:296)(cid:349)(cid:272)(cid:349)(cid:286)(cid:374)(cid:410)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:258)(cid:393)(cid:393)(cid:396)(cid:381)(cid:393)(cid:396)(cid:349)(cid:258)(cid:410)(cid:286)(cid:3)(cid:410)(cid:381)(cid:3)(cid:393)(cid:396)(cid:381)(cid:448)(cid:349)(cid:282)(cid:286)(cid:3)(cid:258)(cid:3)(cid:271)(cid:258)(cid:400)(cid:349)(cid:400)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:381)(cid:437)(cid:396)(cid:3)(cid:381)(cid:393)(cid:349)(cid:374)(cid:349)(cid:381)(cid:374)(cid:856)(cid:3) (cid:60)(cid:286)(cid:455)(cid:3)(cid:4)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:68)(cid:258)(cid:410)(cid:410)(cid:286)(cid:396)(cid:400)(cid:3)(cid:3)(cid:3) (cid:60)(cid:286)(cid:455)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:373)(cid:258)(cid:410)(cid:410)(cid:286)(cid:396)(cid:400)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:410)(cid:346)(cid:381)(cid:400)(cid:286)(cid:3)(cid:373)(cid:258)(cid:410)(cid:410)(cid:286)(cid:396)(cid:400)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:853)(cid:3)(cid:349)(cid:374)(cid:3)(cid:381)(cid:437)(cid:396)(cid:3)(cid:393)(cid:396)(cid:381)(cid:296)(cid:286)(cid:400)(cid:400)(cid:349)(cid:381)(cid:374)(cid:258)(cid:367)(cid:3)(cid:361)(cid:437)(cid:282)(cid:336)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:853)(cid:3)(cid:449)(cid:286)(cid:396)(cid:286)(cid:3)(cid:381)(cid:296)(cid:3)(cid:373)(cid:381)(cid:400)(cid:410)(cid:3)(cid:400)(cid:349)(cid:336)(cid:374)(cid:349)(cid:296)(cid:349)(cid:272)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:349)(cid:374)(cid:3)(cid:381)(cid:437)(cid:396)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3) (cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:437)(cid:396)(cid:396)(cid:286)(cid:374)(cid:410)(cid:3)(cid:393)(cid:286)(cid:396)(cid:349)(cid:381)(cid:282)(cid:856)(cid:3)(cid:100)(cid:346)(cid:286)(cid:400)(cid:286)(cid:3)(cid:373)(cid:258)(cid:410)(cid:410)(cid:286)(cid:396)(cid:400)(cid:3)(cid:449)(cid:286)(cid:396)(cid:286)(cid:3)(cid:258)(cid:282)(cid:282)(cid:396)(cid:286)(cid:400)(cid:400)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:286)(cid:454)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:381)(cid:437)(cid:396)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3) (cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:258)(cid:400)(cid:3)(cid:258)(cid:3)(cid:449)(cid:346)(cid:381)(cid:367)(cid:286)(cid:853)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:296)(cid:381)(cid:396)(cid:373)(cid:349)(cid:374)(cid:336)(cid:3)(cid:381)(cid:437)(cid:396)(cid:3)(cid:381)(cid:393)(cid:349)(cid:374)(cid:349)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:396)(cid:286)(cid:381)(cid:374)(cid:853)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:449)(cid:286)(cid:3)(cid:282)(cid:381)(cid:3)(cid:374)(cid:381)(cid:410)(cid:3)(cid:393)(cid:396)(cid:381)(cid:448)(cid:349)(cid:282)(cid:286)(cid:3)(cid:258)(cid:3)(cid:400)(cid:286)(cid:393)(cid:258)(cid:396)(cid:258)(cid:410)(cid:286)(cid:3)(cid:381)(cid:393)(cid:349)(cid:374)(cid:349)(cid:381)(cid:374)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:400)(cid:286)(cid:3)(cid:373)(cid:258)(cid:410)(cid:410)(cid:286)(cid:396)(cid:400)(cid:856)(cid:3)(cid:3) (cid:3) (cid:60)(cid:60)(cid:286)(cid:286)(cid:455)(cid:455)(cid:3)(cid:3)(cid:4)(cid:4)(cid:437)(cid:437)(cid:282)(cid:282)(cid:349)(cid:349)(cid:410)(cid:410)(cid:3)(cid:3)(cid:68)(cid:68)(cid:258)(cid:258)(cid:410)(cid:410)(cid:410)(cid:410)(cid:286)(cid:286)(cid:396)(cid:396)(cid:3)(cid:3) (cid:44)(cid:44)(cid:381)(cid:381)(cid:449)(cid:449)(cid:3)(cid:3)(cid:410)(cid:410)(cid:346)(cid:346)(cid:286)(cid:286)(cid:3)(cid:3)(cid:400)(cid:400)(cid:272)(cid:272)(cid:381)(cid:381)(cid:393)(cid:393)(cid:286)(cid:286)(cid:3)(cid:3)(cid:381)(cid:381)(cid:296)(cid:296)(cid:3)(cid:3)(cid:381)(cid:381)(cid:437)(cid:437)(cid:396)(cid:396)(cid:3)(cid:3)(cid:258)(cid:258)(cid:437)(cid:437)(cid:282)(cid:282)(cid:349)(cid:349)(cid:410)(cid:410)(cid:3)(cid:3)(cid:396)(cid:396)(cid:286)(cid:286)(cid:400)(cid:400)(cid:393)(cid:393)(cid:381)(cid:381)(cid:374)(cid:374)(cid:282)(cid:282)(cid:286)(cid:286)(cid:282)(cid:282)(cid:3)(cid:3)(cid:410)(cid:410)(cid:381)(cid:381)(cid:3)(cid:3)(cid:410)(cid:410)(cid:346)(cid:346)(cid:286)(cid:286)(cid:3)(cid:3)(cid:60)(cid:60)(cid:286)(cid:286)(cid:455)(cid:455)(cid:3)(cid:3)(cid:4)(cid:4)(cid:437)(cid:437)(cid:282)(cid:282)(cid:349)(cid:349)(cid:410)(cid:410)(cid:3)(cid:3)(cid:68)(cid:68)(cid:258)(cid:258)(cid:410)(cid:410)(cid:410)(cid:410)(cid:286)(cid:286)(cid:396)(cid:396)(cid:3)(cid:3) (cid:18)(cid:258)(cid:396)(cid:396)(cid:455)(cid:349)(cid:374)(cid:336)(cid:3)(cid:448)(cid:258)(cid:367)(cid:437)(cid:286)(cid:3)(cid:381)(cid:296)(cid:3)(cid:336)(cid:381)(cid:381)(cid:282)(cid:449)(cid:349)(cid:367)(cid:367)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:393)(cid:396)(cid:381)(cid:393)(cid:286)(cid:396)(cid:410)(cid:455)(cid:853)(cid:3) (cid:393)(cid:367)(cid:258)(cid:374)(cid:410)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:286)(cid:395)(cid:437)(cid:349)(cid:393)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:3) (cid:75)(cid:437)(cid:396)(cid:3)(cid:393)(cid:396)(cid:381)(cid:272)(cid:286)(cid:282)(cid:437)(cid:396)(cid:286)(cid:400)(cid:3)(cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:286)(cid:282)(cid:3)(cid:271)(cid:437)(cid:410)(cid:3)(cid:449)(cid:286)(cid:396)(cid:286)(cid:3)(cid:374)(cid:381)(cid:410)(cid:3)(cid:367)(cid:349)(cid:373)(cid:349)(cid:410)(cid:286)(cid:282)(cid:3)(cid:410)(cid:381)(cid:855)(cid:3) • Developing an understanding of the Group’s process and (cid:894)(cid:90)(cid:286)(cid:296)(cid:286)(cid:396)(cid:3)(cid:410)(cid:381)(cid:3)(cid:69)(cid:381)(cid:410)(cid:286)(cid:400)(cid:3)(cid:1005)(cid:1006)(cid:853)(cid:3)(cid:1005)(cid:1008)(cid:3)(cid:920)(cid:3)(cid:1005)(cid:1009)(cid:895)(cid:3)(cid:3) (cid:100)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:3)(cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:286)(cid:400)(cid:3) (cid:336)(cid:381)(cid:381)(cid:282)(cid:449)(cid:349)(cid:367)(cid:367)(cid:3)(cid:381)(cid:296)(cid:3)(cid:936)(cid:1007)(cid:1004)(cid:1005)(cid:856)(cid:1008)(cid:3)(cid:373)(cid:349)(cid:367)(cid:367)(cid:349)(cid:381)(cid:374)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:393)(cid:396)(cid:381)(cid:393)(cid:286)(cid:396)(cid:410)(cid:455)(cid:853)(cid:3) (cid:393)(cid:367)(cid:258)(cid:374)(cid:410)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:286)(cid:395)(cid:437)(cid:349)(cid:393)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:936)(cid:1005)(cid:853)(cid:1007)(cid:1010)(cid:1013)(cid:856)(cid:1008)(cid:3)(cid:373)(cid:349)(cid:367)(cid:367)(cid:349)(cid:381)(cid:374)(cid:3)(cid:258)(cid:400)(cid:3) (cid:258)(cid:410)(cid:3)(cid:1007)(cid:1005)(cid:3)(cid:24)(cid:286)(cid:272)(cid:286)(cid:373)(cid:271)(cid:286)(cid:396)(cid:3)(cid:1006)(cid:1004)(cid:1006)(cid:1007)(cid:856)(cid:3)(cid:3) (cid:3) (cid:3) (cid:272)(cid:381)(cid:374)(cid:410)(cid:396)(cid:381)(cid:367)(cid:400)(cid:3)(cid:381)(cid:448)(cid:286)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:396)(cid:286)(cid:272)(cid:381)(cid:448)(cid:286)(cid:396)(cid:258)(cid:271)(cid:367)(cid:286)(cid:3)(cid:258)(cid:373)(cid:381)(cid:437)(cid:374)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3) (cid:336)(cid:381)(cid:381)(cid:282)(cid:449)(cid:349)(cid:367)(cid:367)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:393)(cid:396)(cid:381)(cid:393)(cid:286)(cid:396)(cid:410)(cid:455)(cid:853)(cid:3)(cid:393)(cid:367)(cid:258)(cid:374)(cid:410)(cid:853)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:286)(cid:395)(cid:437)(cid:349)(cid:393)(cid:373)(cid:286)(cid:374)(cid:410)(cid:854)(cid:3)(cid:3) • (cid:4)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:349)(cid:374)(cid:336)(cid:3)(cid:449)(cid:346)(cid:286)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:18)(cid:258)(cid:400)(cid:346)(cid:3)(cid:39)(cid:286)(cid:374)(cid:286)(cid:396)(cid:258)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:104)(cid:374)(cid:349)(cid:410)(cid:400)(cid:3)(cid:894)(cid:18)(cid:39)(cid:104)(cid:400)(cid:895)(cid:3) • (cid:349)(cid:282)(cid:286)(cid:374)(cid:410)(cid:349)(cid:296)(cid:349)(cid:286)(cid:282)(cid:3)(cid:271)(cid:455)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:367)(cid:349)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:349)(cid:286)(cid:400)(cid:3)(cid:258)(cid:367)(cid:367)(cid:381)(cid:272)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3) (cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:286)(cid:373)(cid:3)(cid:449)(cid:258)(cid:400)(cid:3)(cid:272)(cid:381)(cid:374)(cid:400)(cid:349)(cid:400)(cid:410)(cid:286)(cid:374)(cid:410)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:396)(cid:286)(cid:395)(cid:437)(cid:349)(cid:396)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:4)(cid:4)(cid:94)(cid:17)(cid:3)(cid:1005)(cid:1007)(cid:1010)(cid:3) (cid:47)(cid:373)(cid:393)(cid:258)(cid:349)(cid:396)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:4)(cid:400)(cid:400)(cid:286)(cid:410)(cid:400)(cid:854)(cid:3) (cid:47)(cid:374)(cid:3)(cid:272)(cid:381)(cid:374)(cid:361)(cid:437)(cid:374)(cid:272)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:381)(cid:437)(cid:396)(cid:3)(cid:349)(cid:374)(cid:410)(cid:286)(cid:396)(cid:374)(cid:258)(cid:367)(cid:3)(cid:448)(cid:258)(cid:367)(cid:437)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:400)(cid:393)(cid:286)(cid:272)(cid:349)(cid:258)(cid:367)(cid:349)(cid:400)(cid:410)(cid:853)(cid:3) evaluating the Group’s methodologies and the documented (cid:271)(cid:258)(cid:400)(cid:349)(cid:400)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:364)(cid:286)(cid:455)(cid:3)(cid:258)(cid:400)(cid:400)(cid:437)(cid:373)(cid:393)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:437)(cid:410)(cid:349)(cid:367)(cid:349)(cid:400)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:115)(cid:349)(cid:104)(cid:3)(cid:349)(cid:373)(cid:393)(cid:258)(cid:349)(cid:396)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3) (cid:373)(cid:381)(cid:282)(cid:286)(cid:367)(cid:400)(cid:854)(cid:3)(cid:3) (cid:3) (cid:3) (cid:3) (cid:62)(cid:349)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:455)(cid:3)(cid:367)(cid:349)(cid:373)(cid:349)(cid:410)(cid:286)(cid:282)(cid:3)(cid:271)(cid:455)(cid:3)(cid:258)(cid:3)(cid:400)(cid:272)(cid:346)(cid:286)(cid:373)(cid:286)(cid:3)(cid:258)(cid:393)(cid:393)(cid:396)(cid:381)(cid:448)(cid:286)(cid:282)(cid:3)(cid:437)(cid:374)(cid:282)(cid:286)(cid:396)(cid:3)(cid:87)(cid:396)(cid:381)(cid:296)(cid:286)(cid:400)(cid:400)(cid:349)(cid:381)(cid:374)(cid:258)(cid:367)(cid:3)(cid:94)(cid:410)(cid:258)(cid:374)(cid:282)(cid:258)(cid:396)(cid:282)(cid:400)(cid:3)(cid:62)(cid:286)(cid:336)(cid:349)(cid:400)(cid:367)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:856)(cid:3)(cid:3) (cid:68)(cid:286)(cid:373)(cid:271)(cid:286)(cid:396)(cid:3)(cid:381)(cid:296)(cid:3)(cid:24)(cid:286)(cid:367)(cid:381)(cid:349)(cid:410)(cid:410)(cid:286)(cid:3)(cid:4)(cid:400)(cid:349)(cid:258)(cid:3)(cid:87)(cid:258)(cid:272)(cid:349)(cid:296)(cid:349)(cid:272)(cid:3)(cid:62)(cid:349)(cid:373)(cid:349)(cid:410)(cid:286)(cid:282)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:24)(cid:286)(cid:367)(cid:381)(cid:349)(cid:410)(cid:410)(cid:286)(cid:3)(cid:381)(cid:396)(cid:336)(cid:258)(cid:374)(cid:349)(cid:400)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:856)(cid:3) (cid:3) (cid:3) 109 (cid:3) (cid:3) (cid:60)(cid:60)(cid:286)(cid:286)(cid:455)(cid:455)(cid:3)(cid:3)(cid:4)(cid:4)(cid:437)(cid:437)(cid:282)(cid:282)(cid:349)(cid:349)(cid:410)(cid:410)(cid:3)(cid:3)(cid:68)(cid:68)(cid:258)(cid:258)(cid:410)(cid:410)(cid:410)(cid:410)(cid:286)(cid:286)(cid:396)(cid:396)(cid:3)(cid:3) (cid:44)(cid:44)(cid:381)(cid:381)(cid:449)(cid:449)(cid:3)(cid:3)(cid:410)(cid:410)(cid:346)(cid:346)(cid:286)(cid:286)(cid:3)(cid:3)(cid:400)(cid:400)(cid:272)(cid:272)(cid:381)(cid:381)(cid:393)(cid:393)(cid:286)(cid:286)(cid:3)(cid:3)(cid:381)(cid:381)(cid:296)(cid:296)(cid:3)(cid:3)(cid:381)(cid:381)(cid:437)(cid:437)(cid:396)(cid:396)(cid:3)(cid:3)(cid:258)(cid:258)(cid:437)(cid:437)(cid:282)(cid:282)(cid:349)(cid:349)(cid:410)(cid:410)(cid:3)(cid:3)(cid:396)(cid:396)(cid:286)(cid:286)(cid:400)(cid:400)(cid:393)(cid:393)(cid:381)(cid:381)(cid:374)(cid:374)(cid:282)(cid:282)(cid:286)(cid:286)(cid:282)(cid:282)(cid:3)(cid:3)(cid:410)(cid:410)(cid:381)(cid:381)(cid:3)(cid:3)(cid:410)(cid:410)(cid:346)(cid:346)(cid:286)(cid:286)(cid:3)(cid:3)(cid:60)(cid:60)(cid:286)(cid:286)(cid:455)(cid:455)(cid:3)(cid:3)(cid:4)(cid:4)(cid:437)(cid:437)(cid:282)(cid:282)(cid:349)(cid:349)(cid:410)(cid:410)(cid:3)(cid:3)(cid:68)(cid:68)(cid:258)(cid:258)(cid:410)(cid:410)(cid:410)(cid:410)(cid:286)(cid:286)(cid:396)(cid:396)(cid:3)(cid:3) (cid:100)(cid:381)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:396)(cid:286)(cid:272)(cid:381)(cid:448)(cid:286)(cid:396)(cid:258)(cid:271)(cid:367)(cid:286)(cid:3)(cid:258)(cid:373)(cid:381)(cid:437)(cid:374)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3) (cid:336)(cid:381)(cid:381)(cid:282)(cid:449)(cid:349)(cid:367)(cid:367)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:393)(cid:396)(cid:381)(cid:393)(cid:286)(cid:396)(cid:410)(cid:455)(cid:853)(cid:3)(cid:393)(cid:367)(cid:258)(cid:374)(cid:410)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:286)(cid:395)(cid:437)(cid:349)(cid:393)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3) (cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:3)(cid:393)(cid:396)(cid:286)(cid:393)(cid:258)(cid:396)(cid:286)(cid:282)(cid:3)(cid:258)(cid:3)(cid:296)(cid:258)(cid:349)(cid:396)(cid:3)(cid:448)(cid:258)(cid:367)(cid:437)(cid:286)(cid:3)(cid:367)(cid:286)(cid:400)(cid:400)(cid:3)(cid:272)(cid:381)(cid:400)(cid:410)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3) (cid:282)(cid:349)(cid:400)(cid:393)(cid:381)(cid:400)(cid:258)(cid:367)(cid:3)(cid:272)(cid:258)(cid:367)(cid:272)(cid:437)(cid:367)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:282)(cid:349)(cid:400)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:286)(cid:282)(cid:3)(cid:272)(cid:258)(cid:400)(cid:346)(cid:3) (cid:296)(cid:367)(cid:381)(cid:449)(cid:3)(cid:448)(cid:258)(cid:367)(cid:437)(cid:286)(cid:3)(cid:349)(cid:374)(cid:3)(cid:437)(cid:400)(cid:286)(cid:3)(cid:373)(cid:381)(cid:282)(cid:286)(cid:367)(cid:400)(cid:3)(cid:894)(cid:410)(cid:346)(cid:286)(cid:3)(cid:115)(cid:349)(cid:104)(cid:3) (cid:349)(cid:373)(cid:393)(cid:258)(cid:349)(cid:396)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:373)(cid:381)(cid:282)(cid:286)(cid:367)(cid:400)(cid:895)(cid:856)(cid:3) (cid:100)(cid:346)(cid:286)(cid:3)(cid:349)(cid:373)(cid:393)(cid:258)(cid:349)(cid:396)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:373)(cid:381)(cid:282)(cid:286)(cid:367)(cid:400)(cid:3)(cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:286)(cid:3)(cid:400)(cid:349)(cid:336)(cid:374)(cid:349)(cid:296)(cid:349)(cid:272)(cid:258)(cid:374)(cid:410)(cid:3) (cid:286)(cid:400)(cid:410)(cid:349)(cid:373)(cid:258)(cid:410)(cid:286)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:361)(cid:437)(cid:282)(cid:336)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:349)(cid:374)(cid:3)(cid:396)(cid:286)(cid:367)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:410)(cid:381)(cid:3) (cid:396)(cid:286)(cid:448)(cid:286)(cid:374)(cid:437)(cid:286)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:28)(cid:17)(cid:47)(cid:100)(cid:3)(cid:336)(cid:396)(cid:381)(cid:449)(cid:410)(cid:346)(cid:3)(cid:396)(cid:258)(cid:410)(cid:286)(cid:400)(cid:853)(cid:3)(cid:410)(cid:286)(cid:396)(cid:373)(cid:349)(cid:374)(cid:258)(cid:367)(cid:3) (cid:336)(cid:396)(cid:381)(cid:449)(cid:410)(cid:346)(cid:3)(cid:396)(cid:258)(cid:410)(cid:286)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:282)(cid:349)(cid:400)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:3)(cid:396)(cid:258)(cid:410)(cid:286)(cid:400)(cid:856)(cid:3)(cid:3) (cid:100)(cid:346)(cid:349)(cid:400)(cid:3)(cid:449)(cid:258)(cid:400)(cid:3)(cid:258)(cid:3)(cid:364)(cid:286)(cid:455)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:373)(cid:258)(cid:410)(cid:410)(cid:286)(cid:396)(cid:3)(cid:336)(cid:349)(cid:448)(cid:286)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3) financial significance of the Group’s (cid:396)(cid:286)(cid:272)(cid:381)(cid:396)(cid:282)(cid:286)(cid:282)(cid:3)(cid:336)(cid:381)(cid:381)(cid:282)(cid:449)(cid:349)(cid:367)(cid:367)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:393)(cid:396)(cid:381)(cid:393)(cid:286)(cid:396)(cid:410)(cid:455)(cid:853)(cid:3)(cid:393)(cid:367)(cid:258)(cid:374)(cid:410)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3) (cid:286)(cid:395)(cid:437)(cid:349)(cid:393)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:271)(cid:258)(cid:367)(cid:258)(cid:374)(cid:272)(cid:286)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:361)(cid:437)(cid:282)(cid:336)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3) (cid:400)(cid:437)(cid:271)(cid:361)(cid:286)(cid:272)(cid:410)(cid:349)(cid:448)(cid:349)(cid:410)(cid:455)(cid:3)(cid:349)(cid:374)(cid:448)(cid:381)(cid:367)(cid:448)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:282)(cid:286)(cid:410)(cid:286)(cid:396)(cid:373)(cid:349)(cid:374)(cid:349)(cid:374)(cid:336)(cid:3)(cid:396)(cid:286)(cid:448)(cid:286)(cid:374)(cid:437)(cid:286)(cid:3) (cid:258)(cid:374)(cid:282)(cid:3)(cid:28)(cid:17)(cid:47)(cid:100)(cid:3)(cid:336)(cid:396)(cid:381)(cid:449)(cid:410)(cid:346)(cid:3)(cid:396)(cid:258)(cid:410)(cid:286)(cid:400)(cid:853)(cid:3)(cid:410)(cid:286)(cid:396)(cid:373)(cid:349)(cid:374)(cid:258)(cid:367)(cid:3)(cid:336)(cid:396)(cid:381)(cid:449)(cid:410)(cid:346)(cid:3) (cid:396)(cid:258)(cid:410)(cid:286)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:282)(cid:349)(cid:400)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:3)(cid:396)(cid:258)(cid:410)(cid:286)(cid:400)(cid:856)(cid:3) (cid:28)(cid:400)(cid:410)(cid:349)(cid:373)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:381)(cid:296)(cid:3)(cid:272)(cid:367)(cid:381)(cid:400)(cid:286)(cid:882)(cid:282)(cid:381)(cid:449)(cid:374)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:396)(cid:286)(cid:400)(cid:410)(cid:381)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3) (cid:272)(cid:381)(cid:400)(cid:410)(cid:400)(cid:3)(cid:393)(cid:396)(cid:381)(cid:448)(cid:349)(cid:400)(cid:349)(cid:381)(cid:374)(cid:3)(cid:3) (cid:894)(cid:90)(cid:286)(cid:296)(cid:286)(cid:396)(cid:3)(cid:410)(cid:381)(cid:3)(cid:69)(cid:381)(cid:410)(cid:286)(cid:3)(cid:1005)(cid:1010)(cid:895)(cid:3)(cid:3) (cid:87)(cid:396)(cid:381)(cid:448)(cid:349)(cid:400)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:272)(cid:367)(cid:381)(cid:400)(cid:286)(cid:882)(cid:282)(cid:381)(cid:449)(cid:374)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:396)(cid:286)(cid:400)(cid:410)(cid:381)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3) (cid:272)(cid:381)(cid:400)(cid:410)(cid:400)(cid:3)(cid:258)(cid:400)(cid:400)(cid:381)(cid:272)(cid:349)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:395)(cid:437)(cid:258)(cid:396)(cid:396)(cid:349)(cid:286)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:381)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3) (cid:282)(cid:349)(cid:400)(cid:410)(cid:437)(cid:396)(cid:271)(cid:286)(cid:282)(cid:3)(cid:258)(cid:396)(cid:286)(cid:258)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:936)(cid:1010)(cid:1005)(cid:856)(cid:1006)(cid:3)(cid:373)(cid:349)(cid:367)(cid:367)(cid:349)(cid:381)(cid:374)(cid:3)(cid:449)(cid:286)(cid:396)(cid:286)(cid:3) (cid:396)(cid:286)(cid:272)(cid:381)(cid:336)(cid:374)(cid:349)(cid:400)(cid:286)(cid:282)(cid:3)(cid:258)(cid:400)(cid:3)(cid:258)(cid:410)(cid:3)(cid:1007)(cid:1005)(cid:3)(cid:24)(cid:286)(cid:272)(cid:286)(cid:373)(cid:271)(cid:286)(cid:396)(cid:3)(cid:1006)(cid:1004)(cid:1006)(cid:1007)(cid:856)(cid:3)(cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:1006)(cid:3) • (cid:115)(cid:258)(cid:367)(cid:349)(cid:282)(cid:258)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:258)(cid:349)(cid:396)(cid:3)(cid:448)(cid:258)(cid:367)(cid:437)(cid:286)(cid:3)(cid:367)(cid:286)(cid:400)(cid:400)(cid:3)(cid:272)(cid:381)(cid:400)(cid:410)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:282)(cid:349)(cid:400)(cid:393)(cid:381)(cid:400)(cid:258)(cid:367)(cid:3)(cid:272)(cid:258)(cid:367)(cid:272)(cid:437)(cid:367)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:271)(cid:455)(cid:3) (cid:272)(cid:381)(cid:373)(cid:393)(cid:258)(cid:396)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:258)(cid:349)(cid:396)(cid:3)(cid:448)(cid:258)(cid:367)(cid:437)(cid:286)(cid:3)(cid:410)(cid:381)(cid:3)(cid:286)(cid:454)(cid:410)(cid:286)(cid:396)(cid:374)(cid:258)(cid:367)(cid:3)(cid:373)(cid:258)(cid:396)(cid:364)(cid:286)(cid:410)(cid:3)(cid:400)(cid:381)(cid:437)(cid:396)(cid:272)(cid:286)(cid:400)(cid:853)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3) (cid:286)(cid:448)(cid:258)(cid:367)(cid:437)(cid:258)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:396)(cid:286)(cid:258)(cid:400)(cid:381)(cid:374)(cid:258)(cid:271)(cid:367)(cid:286)(cid:374)(cid:286)(cid:400)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:272)(cid:381)(cid:400)(cid:410)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:282)(cid:349)(cid:400)(cid:393)(cid:381)(cid:400)(cid:258)(cid:367)(cid:854)(cid:3) • (cid:4)(cid:336)(cid:396)(cid:286)(cid:286)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:381)(cid:396)(cid:286)(cid:272)(cid:258)(cid:400)(cid:410)(cid:3)(cid:272)(cid:258)(cid:400)(cid:346)(cid:3)(cid:296)(cid:367)(cid:381)(cid:449)(cid:400)(cid:3)(cid:437)(cid:400)(cid:286)(cid:282)(cid:3)(cid:410)(cid:381)(cid:3)(cid:282)(cid:286)(cid:448)(cid:286)(cid:367)(cid:381)(cid:393)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:115)(cid:349)(cid:104)(cid:3) (cid:349)(cid:373)(cid:393)(cid:258)(cid:349)(cid:396)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:373)(cid:381)(cid:282)(cid:286)(cid:367)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:373)(cid:381)(cid:400)(cid:410)(cid:3)(cid:396)(cid:286)(cid:272)(cid:286)(cid:374)(cid:410)(cid:3)(cid:271)(cid:437)(cid:282)(cid:336)(cid:286)(cid:410)(cid:400)(cid:3)(cid:296)(cid:381)(cid:396)(cid:373)(cid:258)(cid:367)(cid:367)(cid:455)(cid:3) (cid:258)(cid:393)(cid:393)(cid:396)(cid:381)(cid:448)(cid:286)(cid:282)(cid:3)(cid:271)(cid:455)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:17)(cid:381)(cid:258)(cid:396)(cid:282)(cid:854)(cid:3) • (cid:28)(cid:448)(cid:258)(cid:367)(cid:437)(cid:258)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:346)(cid:381)(cid:449)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:271)(cid:437)(cid:282)(cid:336)(cid:286)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:393)(cid:396)(cid:381)(cid:272)(cid:286)(cid:400)(cid:400)(cid:3)(cid:346)(cid:258)(cid:400)(cid:3)(cid:349)(cid:374)(cid:272)(cid:381)(cid:396)(cid:393)(cid:381)(cid:396)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3) management’s strategies to achieve the Group’s emission (cid:396)(cid:286)(cid:282)(cid:437)(cid:272)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:410)(cid:258)(cid:396)(cid:336)(cid:286)(cid:410)(cid:400)(cid:3)(cid:258)(cid:400)(cid:3)(cid:400)(cid:286)(cid:410)(cid:3)(cid:381)(cid:437)(cid:410)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:69)(cid:286)(cid:410)(cid:3)(cid:127)(cid:286)(cid:396)(cid:381)(cid:3)(cid:28)(cid:373)(cid:349)(cid:400)(cid:400)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3) (cid:90)(cid:381)(cid:258)(cid:282)(cid:373)(cid:258)(cid:393)(cid:854)(cid:3) • (cid:18)(cid:346)(cid:258)(cid:367)(cid:367)(cid:286)(cid:374)(cid:336)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:364)(cid:286)(cid:455)(cid:3)(cid:258)(cid:400)(cid:400)(cid:437)(cid:373)(cid:393)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:437)(cid:400)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:437)(cid:410)(cid:437)(cid:396)(cid:286)(cid:3)(cid:272)(cid:258)(cid:400)(cid:346)(cid:3)(cid:296)(cid:367)(cid:381)(cid:449)(cid:3) (cid:296)(cid:381)(cid:396)(cid:286)(cid:272)(cid:258)(cid:400)(cid:410)(cid:3)(cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:349)(cid:374)(cid:336)(cid:3)(cid:396)(cid:286)(cid:448)(cid:286)(cid:374)(cid:437)(cid:286)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:28)(cid:17)(cid:47)(cid:100)(cid:3)(cid:336)(cid:396)(cid:381)(cid:449)(cid:410)(cid:346)(cid:3)(cid:396)(cid:258)(cid:410)(cid:286)(cid:400)(cid:853)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3) (cid:410)(cid:286)(cid:396)(cid:373)(cid:349)(cid:374)(cid:258)(cid:367)(cid:3)(cid:336)(cid:396)(cid:381)(cid:449)(cid:410)(cid:346)(cid:3)(cid:396)(cid:258)(cid:410)(cid:286)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:282)(cid:349)(cid:400)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:3)(cid:396)(cid:258)(cid:410)(cid:286)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:396)(cid:286)(cid:296)(cid:286)(cid:396)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3)(cid:410)(cid:381)(cid:3) (cid:393)(cid:258)(cid:400)(cid:410)(cid:3)(cid:393)(cid:286)(cid:396)(cid:296)(cid:381)(cid:396)(cid:373)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:286)(cid:454)(cid:410)(cid:286)(cid:396)(cid:374)(cid:258)(cid:367)(cid:3)(cid:282)(cid:258)(cid:410)(cid:258)(cid:854)(cid:3) • (cid:4)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:381)(cid:373)(cid:393)(cid:286)(cid:410)(cid:286)(cid:374)(cid:272)(cid:455)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:381)(cid:271)(cid:361)(cid:286)(cid:272)(cid:410)(cid:349)(cid:448)(cid:349)(cid:410)(cid:455)(cid:3)(cid:381)(cid:296)(cid:3)management’s (cid:286)(cid:454)(cid:393)(cid:286)(cid:396)(cid:410)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:373)(cid:286)(cid:410)(cid:346)(cid:381)(cid:282)(cid:400)(cid:3)(cid:258)(cid:393)(cid:393)(cid:367)(cid:349)(cid:286)(cid:282)(cid:3)(cid:271)(cid:455)(cid:3)(cid:410)(cid:346)(cid:286)(cid:373)(cid:3)(cid:349)(cid:374)(cid:3)(cid:282)(cid:286)(cid:410)(cid:286)(cid:396)(cid:373)(cid:349)(cid:374)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3) (cid:336)(cid:396)(cid:381)(cid:449)(cid:410)(cid:346)(cid:3)(cid:396)(cid:258)(cid:410)(cid:286)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:282)(cid:349)(cid:400)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:3)(cid:396)(cid:258)(cid:410)(cid:286)(cid:400)(cid:854)(cid:3) • Evaluating the Group’s historical accuracy of forecasting (cid:272)(cid:258)(cid:400)(cid:346)(cid:296)(cid:367)(cid:381)(cid:449)(cid:400)(cid:854)(cid:3) • Assessing the accuracy of the Group’s discounted cashflow (cid:373)(cid:381)(cid:282)(cid:286)(cid:367)(cid:400)(cid:3)(cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:286)(cid:400)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:373)(cid:258)(cid:410)(cid:346)(cid:286)(cid:373)(cid:258)(cid:410)(cid:349)(cid:272)(cid:258)(cid:367)(cid:3)(cid:258)(cid:272)(cid:272)(cid:437)(cid:396)(cid:258)(cid:272)(cid:455)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3) (cid:115)(cid:349)(cid:104)(cid:3)(cid:349)(cid:373)(cid:393)(cid:258)(cid:349)(cid:396)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:373)(cid:381)(cid:282)(cid:286)(cid:367)(cid:400)(cid:854)(cid:3) • (cid:87)(cid:286)(cid:396)(cid:296)(cid:381)(cid:396)(cid:373)(cid:349)(cid:374)(cid:336)(cid:3)(cid:258)(cid:3)(cid:400)(cid:286)(cid:374)(cid:400)(cid:349)(cid:410)(cid:349)(cid:448)(cid:349)(cid:410)(cid:455)(cid:3)(cid:258)(cid:374)(cid:258)(cid:367)(cid:455)(cid:400)(cid:349)(cid:400)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:115)(cid:349)(cid:104)(cid:3)(cid:349)(cid:373)(cid:393)(cid:258)(cid:349)(cid:396)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3) (cid:373)(cid:381)(cid:282)(cid:286)(cid:367)(cid:400)(cid:853)(cid:3)(cid:349)(cid:374)(cid:3)(cid:396)(cid:286)(cid:367)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:410)(cid:381)(cid:3)(cid:364)(cid:286)(cid:455)(cid:3)(cid:258)(cid:400)(cid:400)(cid:437)(cid:373)(cid:393)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:286)(cid:454)(cid:410)(cid:286)(cid:374)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3) (cid:272)(cid:346)(cid:258)(cid:374)(cid:336)(cid:286)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:381)(cid:400)(cid:286)(cid:3)(cid:258)(cid:400)(cid:400)(cid:437)(cid:373)(cid:393)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:286)(cid:349)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:349)(cid:374)(cid:282)(cid:349)(cid:448)(cid:349)(cid:282)(cid:437)(cid:258)(cid:367)(cid:367)(cid:455)(cid:3)(cid:381)(cid:396)(cid:3) (cid:272)(cid:381)(cid:367)(cid:367)(cid:286)(cid:272)(cid:410)(cid:349)(cid:448)(cid:286)(cid:367)(cid:455)(cid:3)(cid:449)(cid:381)(cid:437)(cid:367)(cid:282)(cid:3)(cid:271)(cid:286)(cid:3)(cid:396)(cid:286)(cid:395)(cid:437)(cid:349)(cid:396)(cid:286)(cid:282)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:271)(cid:286)(cid:3)(cid:349)(cid:373)(cid:393)(cid:258)(cid:349)(cid:396)(cid:286)(cid:282)(cid:854)(cid:3) (cid:258)(cid:374)(cid:282)(cid:3) • (cid:4)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:282)(cid:286)(cid:395)(cid:437)(cid:258)(cid:272)(cid:455)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:282)(cid:349)(cid:400)(cid:272)(cid:367)(cid:381)(cid:400)(cid:437)(cid:396)(cid:286)(cid:400)(cid:3)(cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:69)(cid:381)(cid:410)(cid:286)(cid:400)(cid:3)(cid:1005)(cid:1008)(cid:3) (cid:258)(cid:374)(cid:282)(cid:3)(cid:1005)(cid:1009)(cid:3)(cid:258)(cid:336)(cid:258)(cid:349)(cid:374)(cid:400)(cid:410)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:396)(cid:286)(cid:395)(cid:437)(cid:349)(cid:396)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:4)(cid:4)(cid:94)(cid:17)(cid:3)(cid:1005)(cid:1007)(cid:1010)(cid:3)(cid:47)(cid:373)(cid:393)(cid:258)(cid:349)(cid:396)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3) (cid:4)(cid:400)(cid:400)(cid:286)(cid:410)(cid:400)(cid:856)(cid:3) (cid:75)(cid:437)(cid:396)(cid:3)(cid:393)(cid:396)(cid:381)(cid:272)(cid:286)(cid:282)(cid:437)(cid:396)(cid:286)(cid:400)(cid:3)(cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:286)(cid:282)(cid:3)(cid:271)(cid:437)(cid:410)(cid:3)(cid:449)(cid:286)(cid:396)(cid:286)(cid:3)(cid:374)(cid:381)(cid:410)(cid:3)(cid:367)(cid:349)(cid:373)(cid:349)(cid:410)(cid:286)(cid:282)(cid:3)(cid:410)(cid:381)(cid:855)(cid:3) • Developing an understanding of the Group’s process and (cid:272)(cid:381)(cid:374)(cid:410)(cid:396)(cid:381)(cid:367)(cid:400)(cid:3)(cid:381)(cid:448)(cid:286)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:286)(cid:400)(cid:410)(cid:349)(cid:373)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:367)(cid:381)(cid:400)(cid:286)(cid:882)(cid:282)(cid:381)(cid:449)(cid:374)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3) (cid:396)(cid:286)(cid:400)(cid:410)(cid:381)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:272)(cid:381)(cid:400)(cid:410)(cid:400)(cid:3)(cid:393)(cid:396)(cid:381)(cid:448)(cid:349)(cid:400)(cid:349)(cid:381)(cid:374)(cid:854)(cid:3)(cid:3) • (cid:24)(cid:286)(cid:448)(cid:286)(cid:367)(cid:381)(cid:393)(cid:349)(cid:374)(cid:336)(cid:3)(cid:258)(cid:374)(cid:3)(cid:437)(cid:374)(cid:282)(cid:286)(cid:396)(cid:400)(cid:410)(cid:258)(cid:374)(cid:282)(cid:349)(cid:374)(cid:336)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:373)(cid:258)(cid:374)(cid:258)(cid:336)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:286)(cid:454)(cid:393)(cid:286)(cid:396)(cid:410)’(cid:400)(cid:3) (cid:271)(cid:258)(cid:400)(cid:349)(cid:400)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:282)(cid:286)(cid:410)(cid:286)(cid:396)(cid:373)(cid:349)(cid:374)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:367)(cid:381)(cid:400)(cid:286)(cid:3)(cid:282)(cid:381)(cid:449)(cid:374)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:396)(cid:286)(cid:400)(cid:410)(cid:381)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:272)(cid:381)(cid:400)(cid:410)(cid:400)(cid:3) (cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:364)(cid:286)(cid:455)(cid:3)(cid:258)(cid:400)(cid:400)(cid:437)(cid:373)(cid:393)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:437)(cid:410)(cid:349)(cid:367)(cid:349)(cid:400)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:381)(cid:400)(cid:410)(cid:3)(cid:286)(cid:400)(cid:410)(cid:349)(cid:373)(cid:258)(cid:410)(cid:286)(cid:400)(cid:854)(cid:3) • (cid:75)(cid:271)(cid:410)(cid:258)(cid:349)(cid:374)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:393)(cid:396)(cid:381)(cid:448)(cid:349)(cid:400)(cid:349)(cid:381)(cid:374)(cid:3)(cid:393)(cid:396)(cid:286)(cid:393)(cid:258)(cid:396)(cid:286)(cid:282)(cid:3)(cid:271)(cid:455)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:349)(cid:374)(cid:336)(cid:3) (cid:449)(cid:346)(cid:286)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:400)(cid:400)(cid:437)(cid:373)(cid:393)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:437)(cid:400)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:282)(cid:286)(cid:448)(cid:286)(cid:367)(cid:381)(cid:393)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:393)(cid:396)(cid:381)(cid:448)(cid:349)(cid:400)(cid:349)(cid:381)(cid:374)(cid:3) (cid:373)(cid:286)(cid:286)(cid:410)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:373)(cid:286)(cid:258)(cid:400)(cid:437)(cid:396)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:381)(cid:271)(cid:361)(cid:286)(cid:272)(cid:410)(cid:349)(cid:448)(cid:286)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:4)(cid:4)(cid:94)(cid:17)(cid:3)(cid:1005)(cid:1007)(cid:1011)(cid:3)(cid:87)(cid:396)(cid:381)(cid:448)(cid:349)(cid:400)(cid:349)(cid:381)(cid:374)(cid:400)(cid:853)(cid:3) (cid:18)(cid:381)(cid:374)(cid:410)(cid:349)(cid:374)(cid:336)(cid:286)(cid:374)(cid:410)(cid:3)(cid:62)(cid:349)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:349)(cid:286)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:18)(cid:381)(cid:374)(cid:410)(cid:349)(cid:374)(cid:336)(cid:286)(cid:374)(cid:410)(cid:3)(cid:4)(cid:400)(cid:400)(cid:286)(cid:410)(cid:400)(cid:853)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:258)(cid:393)(cid:393)(cid:396)(cid:381)(cid:393)(cid:396)(cid:349)(cid:258)(cid:410)(cid:286)(cid:3) (cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:349)(cid:396)(cid:272)(cid:437)(cid:373)(cid:400)(cid:410)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:449)(cid:346)(cid:286)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:361)(cid:437)(cid:282)(cid:336)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3)(cid:346)(cid:258)(cid:448)(cid:286)(cid:3)(cid:271)(cid:286)(cid:286)(cid:374)(cid:3) (cid:258)(cid:393)(cid:393)(cid:367)(cid:349)(cid:286)(cid:282)(cid:3)(cid:272)(cid:381)(cid:374)(cid:400)(cid:349)(cid:400)(cid:410)(cid:286)(cid:374)(cid:410)(cid:367)(cid:455)(cid:854)(cid:3) (cid:3) (cid:3) Adbri 2023 Annual Report 110 Independent auditor’s report continued (cid:3) (cid:3) (cid:60)(cid:60)(cid:286)(cid:286)(cid:455)(cid:455)(cid:3)(cid:3)(cid:4)(cid:4)(cid:437)(cid:437)(cid:282)(cid:282)(cid:349)(cid:349)(cid:410)(cid:410)(cid:3)(cid:3)(cid:68)(cid:68)(cid:258)(cid:258)(cid:410)(cid:410)(cid:410)(cid:410)(cid:286)(cid:286)(cid:396)(cid:396)(cid:3)(cid:3) (cid:44)(cid:44)(cid:381)(cid:381)(cid:449)(cid:449)(cid:3)(cid:3)(cid:410)(cid:410)(cid:346)(cid:346)(cid:286)(cid:286)(cid:3)(cid:3)(cid:400)(cid:400)(cid:272)(cid:272)(cid:381)(cid:381)(cid:393)(cid:393)(cid:286)(cid:286)(cid:3)(cid:3)(cid:381)(cid:381)(cid:296)(cid:296)(cid:3)(cid:3)(cid:381)(cid:381)(cid:437)(cid:437)(cid:396)(cid:396)(cid:3)(cid:3)(cid:258)(cid:258)(cid:437)(cid:437)(cid:282)(cid:282)(cid:349)(cid:349)(cid:410)(cid:410)(cid:3)(cid:3)(cid:396)(cid:396)(cid:286)(cid:286)(cid:400)(cid:400)(cid:393)(cid:393)(cid:381)(cid:381)(cid:374)(cid:374)(cid:282)(cid:282)(cid:286)(cid:286)(cid:282)(cid:282)(cid:3)(cid:3)(cid:410)(cid:410)(cid:381)(cid:381)(cid:3)(cid:3)(cid:410)(cid:410)(cid:346)(cid:346)(cid:286)(cid:286)(cid:3)(cid:3)(cid:60)(cid:60)(cid:286)(cid:286)(cid:455)(cid:455)(cid:3)(cid:3)(cid:4)(cid:4)(cid:437)(cid:437)(cid:282)(cid:282)(cid:349)(cid:349)(cid:410)(cid:410)(cid:3)(cid:3)(cid:68)(cid:68)(cid:258)(cid:258)(cid:410)(cid:410)(cid:410)(cid:410)(cid:286)(cid:286)(cid:396)(cid:396)(cid:3)(cid:3) • (cid:28)(cid:448)(cid:258)(cid:367)(cid:437)(cid:258)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:393)(cid:396)(cid:381)(cid:448)(cid:349)(cid:400)(cid:349)(cid:381)(cid:374)(cid:853)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:349)(cid:374)(cid:336)(cid:3)(cid:449)(cid:346)(cid:286)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:400)(cid:349)(cid:336)(cid:374)(cid:349)(cid:296)(cid:349)(cid:272)(cid:258)(cid:374)(cid:410)(cid:3) (cid:258)(cid:400)(cid:400)(cid:437)(cid:373)(cid:393)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:449)(cid:286)(cid:396)(cid:286)(cid:3)(cid:258)(cid:393)(cid:393)(cid:367)(cid:349)(cid:286)(cid:282)(cid:3)(cid:272)(cid:381)(cid:374)(cid:400)(cid:349)(cid:400)(cid:410)(cid:286)(cid:374)(cid:410)(cid:367)(cid:455)(cid:3)(cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:349)(cid:374)(cid:336)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3) (cid:373)(cid:258)(cid:410)(cid:346)(cid:286)(cid:373)(cid:258)(cid:410)(cid:349)(cid:272)(cid:258)(cid:367)(cid:3)(cid:258)(cid:272)(cid:272)(cid:437)(cid:396)(cid:258)(cid:272)(cid:455)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:393)(cid:396)(cid:381)(cid:448)(cid:349)(cid:400)(cid:349)(cid:381)(cid:374)(cid:854)(cid:3) • (cid:4)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:381)(cid:373)(cid:393)(cid:367)(cid:286)(cid:410)(cid:286)(cid:374)(cid:286)(cid:400)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:393)(cid:396)(cid:381)(cid:448)(cid:349)(cid:400)(cid:349)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:396)(cid:381)(cid:437)(cid:336)(cid:346)(cid:3)(cid:349)(cid:374)(cid:395)(cid:437)(cid:349)(cid:396)(cid:349)(cid:286)(cid:400)(cid:3) (cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:373)(cid:258)(cid:374)(cid:258)(cid:336)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:853)(cid:3)(cid:396)(cid:286)(cid:448)(cid:349)(cid:286)(cid:449)(cid:3)(cid:381)(cid:296)(cid:3)(cid:373)(cid:286)(cid:286)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:373)(cid:349)(cid:374)(cid:437)(cid:410)(cid:286)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:367)(cid:286)(cid:336)(cid:258)(cid:367)(cid:3) (cid:272)(cid:381)(cid:374)(cid:410)(cid:396)(cid:258)(cid:272)(cid:410)(cid:400)(cid:853)(cid:3)(cid:286)(cid:374)(cid:400)(cid:437)(cid:396)(cid:349)(cid:374)(cid:336)(cid:3)(cid:374)(cid:286)(cid:449)(cid:3)(cid:400)(cid:349)(cid:410)(cid:286)(cid:3)(cid:258)(cid:272)(cid:395)(cid:437)(cid:349)(cid:400)(cid:349)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:258)(cid:393)(cid:393)(cid:396)(cid:381)(cid:393)(cid:396)(cid:349)(cid:258)(cid:410)(cid:286)(cid:367)(cid:455)(cid:3) (cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:286)(cid:282)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:272)(cid:381)(cid:373)(cid:393)(cid:258)(cid:396)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:400)(cid:349)(cid:410)(cid:286)(cid:400)(cid:3)(cid:437)(cid:400)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:282)(cid:286)(cid:448)(cid:286)(cid:367)(cid:381)(cid:393)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3) (cid:393)(cid:396)(cid:381)(cid:448)(cid:349)(cid:400)(cid:349)(cid:381)(cid:374)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:393)(cid:396)(cid:349)(cid:381)(cid:396)(cid:3)(cid:455)(cid:286)(cid:258)(cid:396)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:381)(cid:400)(cid:286)(cid:3)(cid:437)(cid:400)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:437)(cid:396)(cid:396)(cid:286)(cid:374)(cid:410)(cid:3)(cid:455)(cid:286)(cid:258)(cid:396)(cid:3) (cid:393)(cid:396)(cid:381)(cid:448)(cid:349)(cid:400)(cid:349)(cid:381)(cid:374)(cid:854)(cid:3) • (cid:4)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:381)(cid:373)(cid:393)(cid:286)(cid:410)(cid:286)(cid:374)(cid:272)(cid:455)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:381)(cid:271)(cid:361)(cid:286)(cid:272)(cid:410)(cid:349)(cid:448)(cid:349)(cid:410)(cid:455)(cid:3)(cid:381)(cid:296)(cid:3)management’s (cid:349)(cid:374)(cid:410)(cid:286)(cid:396)(cid:374)(cid:258)(cid:367)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:349)(cid:374)(cid:282)(cid:286)(cid:393)(cid:286)(cid:374)(cid:282)(cid:286)(cid:374)(cid:410)(cid:3)(cid:286)(cid:454)(cid:393)(cid:286)(cid:396)(cid:410)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:400)(cid:400)(cid:437)(cid:373)(cid:393)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:258)(cid:393)(cid:393)(cid:367)(cid:349)(cid:286)(cid:282)(cid:3) (cid:271)(cid:455)(cid:3)(cid:410)(cid:346)(cid:286)(cid:373)(cid:3)(cid:449)(cid:346)(cid:286)(cid:374)(cid:3)(cid:282)(cid:286)(cid:410)(cid:286)(cid:396)(cid:373)(cid:349)(cid:374)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:393)(cid:396)(cid:381)(cid:448)(cid:349)(cid:400)(cid:349)(cid:381)(cid:374)(cid:854)(cid:3) • (cid:24)(cid:286)(cid:448)(cid:286)(cid:367)(cid:381)(cid:393)(cid:349)(cid:374)(cid:336)(cid:3)(cid:258)(cid:374)(cid:3)(cid:286)(cid:454)(cid:393)(cid:286)(cid:272)(cid:410)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:346)(cid:258)(cid:374)(cid:336)(cid:286)(cid:3)(cid:349)(cid:374)(cid:3)(cid:374)(cid:381)(cid:373)(cid:349)(cid:374)(cid:258)(cid:367)(cid:3)(cid:448)(cid:258)(cid:367)(cid:437)(cid:286)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3) (cid:272)(cid:381)(cid:373)(cid:393)(cid:258)(cid:396)(cid:349)(cid:374)(cid:336)(cid:3)(cid:258)(cid:336)(cid:258)(cid:349)(cid:374)(cid:400)(cid:410)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:272)(cid:410)(cid:437)(cid:258)(cid:367)(cid:3)(cid:373)(cid:381)(cid:448)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:854)(cid:3)(cid:3) • (cid:4)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:393)(cid:393)(cid:396)(cid:381)(cid:393)(cid:396)(cid:349)(cid:258)(cid:410)(cid:286)(cid:374)(cid:286)(cid:400)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:282)(cid:349)(cid:400)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:3)(cid:396)(cid:258)(cid:410)(cid:286)(cid:3)(cid:437)(cid:400)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3) (cid:373)(cid:258)(cid:374)(cid:258)(cid:336)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)’(cid:400)(cid:3)(cid:272)(cid:258)(cid:367)(cid:272)(cid:437)(cid:367)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:393)(cid:393)(cid:396)(cid:381)(cid:393)(cid:396)(cid:349)(cid:258)(cid:410)(cid:286)(cid:374)(cid:286)(cid:400)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3) (cid:282)(cid:349)(cid:400)(cid:272)(cid:367)(cid:381)(cid:400)(cid:437)(cid:396)(cid:286)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:400)(cid:410)(cid:258)(cid:410)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3)(cid:410)(cid:346)(cid:286)(cid:396)(cid:286)(cid:381)(cid:296)(cid:854)(cid:3) • (cid:38)(cid:381)(cid:396)(cid:3)(cid:258)(cid:3)(cid:400)(cid:258)(cid:373)(cid:393)(cid:367)(cid:286)(cid:3)(cid:381)(cid:296)(cid:3)(cid:367)(cid:381)(cid:272)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:855)(cid:3)(cid:3) o (cid:75)(cid:271)(cid:410)(cid:258)(cid:349)(cid:374)(cid:349)(cid:374)(cid:336)(cid:3)(cid:258)(cid:374)(cid:3)(cid:437)(cid:374)(cid:282)(cid:286)(cid:396)(cid:400)(cid:410)(cid:258)(cid:374)(cid:282)(cid:349)(cid:374)(cid:336)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:367)(cid:286)(cid:336)(cid:258)(cid:367)(cid:3)(cid:381)(cid:396)(cid:3)(cid:272)(cid:381)(cid:374)(cid:400)(cid:410)(cid:396)(cid:437)(cid:272)(cid:410)(cid:349)(cid:448)(cid:286)(cid:3) (cid:381)(cid:271)(cid:367)(cid:349)(cid:336)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:393)(cid:396)(cid:286)(cid:400)(cid:286)(cid:374)(cid:410)(cid:367)(cid:455)(cid:3)(cid:286)(cid:454)(cid:349)(cid:400)(cid:410)(cid:400)(cid:854)(cid:3) o (cid:4)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:374)(cid:258)(cid:410)(cid:437)(cid:396)(cid:286)(cid:853)(cid:3)(cid:410)(cid:349)(cid:373)(cid:349)(cid:374)(cid:336)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:286)(cid:454)(cid:410)(cid:286)(cid:374)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:396)(cid:286)(cid:346)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3) (cid:449)(cid:381)(cid:396)(cid:364)(cid:3)(cid:410)(cid:381)(cid:3)(cid:271)(cid:286)(cid:3)(cid:393)(cid:286)(cid:396)(cid:296)(cid:381)(cid:396)(cid:373)(cid:286)(cid:282)(cid:3)(cid:271)(cid:455)(cid:3)(cid:349)(cid:374)(cid:400)(cid:393)(cid:286)(cid:272)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:396)(cid:286)(cid:346)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:393)(cid:367)(cid:258)(cid:374)(cid:400)(cid:854)(cid:3) o (cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:396)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:374)(cid:381)(cid:373)(cid:349)(cid:374)(cid:258)(cid:367)(cid:3)(cid:272)(cid:381)(cid:400)(cid:410)(cid:3)(cid:410)(cid:381)(cid:3)(cid:396)(cid:286)(cid:346)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:258)(cid:410)(cid:286)(cid:3)(cid:286)(cid:258)(cid:272)(cid:346)(cid:3) (cid:396)(cid:286)(cid:400)(cid:393)(cid:286)(cid:272)(cid:410)(cid:349)(cid:448)(cid:286)(cid:3)(cid:400)(cid:349)(cid:410)(cid:286)(cid:3)(cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:286)(cid:282)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:393)(cid:396)(cid:381)(cid:448)(cid:349)(cid:400)(cid:349)(cid:381)(cid:374)(cid:3)(cid:410)(cid:381)(cid:3)(cid:349)(cid:374)(cid:410)(cid:286)(cid:396)(cid:374)(cid:258)(cid:367)(cid:3) (cid:258)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:854)(cid:3)(cid:3) o (cid:87)(cid:286)(cid:396)(cid:296)(cid:381)(cid:396)(cid:373)(cid:349)(cid:374)(cid:336)(cid:3)(cid:286)(cid:374)(cid:395)(cid:437)(cid:349)(cid:396)(cid:349)(cid:286)(cid:400)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:373)(cid:258)(cid:374)(cid:258)(cid:336)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:410)(cid:381)(cid:3)(cid:437)(cid:374)(cid:282)(cid:286)(cid:396)(cid:400)(cid:410)(cid:258)(cid:374)(cid:282)(cid:3) (cid:449)(cid:346)(cid:286)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:396)(cid:286)(cid:3)(cid:449)(cid:286)(cid:396)(cid:286)(cid:3)(cid:258)(cid:374)(cid:455)(cid:3)(cid:400)(cid:349)(cid:336)(cid:374)(cid:349)(cid:296)(cid:349)(cid:272)(cid:258)(cid:374)(cid:410)(cid:3)(cid:272)(cid:346)(cid:258)(cid:374)(cid:336)(cid:286)(cid:400)(cid:3)(cid:282)(cid:437)(cid:396)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3) (cid:393)(cid:286)(cid:396)(cid:349)(cid:381)(cid:282)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:449)(cid:381)(cid:437)(cid:367)(cid:282)(cid:3)(cid:349)(cid:373)(cid:393)(cid:258)(cid:272)(cid:410)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:286)(cid:400)(cid:410)(cid:349)(cid:373)(cid:258)(cid:410)(cid:286)(cid:400)(cid:3)(cid:373)(cid:258)(cid:282)(cid:286)(cid:854)(cid:3) o o o Comparing the site valuations made by management’s (cid:286)(cid:454)(cid:393)(cid:286)(cid:396)(cid:410)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:393)(cid:396)(cid:381)(cid:448)(cid:349)(cid:400)(cid:349)(cid:381)(cid:374)(cid:3)(cid:448)(cid:258)(cid:367)(cid:437)(cid:286)(cid:3)(cid:346)(cid:286)(cid:367)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3) (cid:400)(cid:410)(cid:258)(cid:410)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:854)(cid:3) (cid:47)(cid:374)(cid:400)(cid:393)(cid:286)(cid:272)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:437)(cid:374)(cid:282)(cid:286)(cid:396)(cid:367)(cid:455)(cid:349)(cid:374)(cid:336)(cid:3)(cid:272)(cid:258)(cid:367)(cid:272)(cid:437)(cid:367)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:448)(cid:258)(cid:367)(cid:349)(cid:282)(cid:258)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3) (cid:349)(cid:374)(cid:393)(cid:437)(cid:410)(cid:400)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:258)(cid:393)(cid:393)(cid:396)(cid:381)(cid:393)(cid:396)(cid:349)(cid:258)(cid:410)(cid:286)(cid:374)(cid:286)(cid:400)(cid:400)(cid:854)(cid:3) (cid:38)(cid:381)(cid:396)(cid:3)(cid:349)(cid:374)(cid:410)(cid:286)(cid:396)(cid:374)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3)(cid:400)(cid:286)(cid:367)(cid:286)(cid:272)(cid:410)(cid:286)(cid:282)(cid:3)(cid:449)(cid:286)(cid:3)(cid:346)(cid:258)(cid:448)(cid:286)(cid:3)(cid:349)(cid:374)(cid:400)(cid:393)(cid:286)(cid:272)(cid:410)(cid:286)(cid:282)(cid:3) (cid:410)(cid:346)(cid:286)(cid:3)(cid:437)(cid:374)(cid:282)(cid:286)(cid:396)(cid:367)(cid:455)(cid:349)(cid:374)(cid:336)(cid:3)(cid:272)(cid:258)(cid:367)(cid:272)(cid:437)(cid:367)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:410)(cid:286)(cid:400)(cid:410)(cid:286)(cid:282)(cid:853)(cid:3)(cid:381)(cid:374)(cid:3)(cid:258)(cid:3)(cid:400)(cid:258)(cid:373)(cid:393)(cid:367)(cid:286)(cid:3) (cid:271)(cid:258)(cid:400)(cid:349)(cid:400)(cid:853)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:349)(cid:374)(cid:393)(cid:437)(cid:410)(cid:400)(cid:3)(cid:437)(cid:400)(cid:286)(cid:282)(cid:854)(cid:3)(cid:3) (cid:38)(cid:381)(cid:396)(cid:3)(cid:400)(cid:349)(cid:410)(cid:286)(cid:400)(cid:3)(cid:271)(cid:286)(cid:349)(cid:374)(cid:336)(cid:3)(cid:258)(cid:272)(cid:410)(cid:349)(cid:448)(cid:286)(cid:367)(cid:455)(cid:3)(cid:396)(cid:286)(cid:373)(cid:286)(cid:282)(cid:349)(cid:258)(cid:410)(cid:286)(cid:282)(cid:853)(cid:3)(cid:272)(cid:381)(cid:373)(cid:393)(cid:258)(cid:396)(cid:349)(cid:374)(cid:336)(cid:3)(cid:258)(cid:272)(cid:410)(cid:437)(cid:258)(cid:367)(cid:3) (cid:272)(cid:381)(cid:400)(cid:410)(cid:400)(cid:3)(cid:349)(cid:374)(cid:272)(cid:437)(cid:396)(cid:396)(cid:286)(cid:282)(cid:3)(cid:410)(cid:381)(cid:3)(cid:396)(cid:286)(cid:346)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:258)(cid:410)(cid:286)(cid:853)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:393)(cid:396)(cid:286)(cid:448)(cid:349)(cid:381)(cid:437)(cid:400)(cid:367)(cid:455)(cid:3) (cid:286)(cid:400)(cid:410)(cid:349)(cid:373)(cid:258)(cid:410)(cid:286)(cid:282)(cid:853)(cid:3)(cid:410)(cid:381)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:455)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:3)(cid:410)(cid:381)(cid:3) (cid:258)(cid:272)(cid:272)(cid:437)(cid:396)(cid:258)(cid:410)(cid:286)(cid:367)(cid:455)(cid:3)(cid:282)(cid:286)(cid:410)(cid:286)(cid:396)(cid:373)(cid:349)(cid:374)(cid:286)(cid:3)(cid:296)(cid:437)(cid:410)(cid:437)(cid:396)(cid:286)(cid:3)(cid:272)(cid:381)(cid:400)(cid:410)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:396)(cid:286)(cid:346)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:258)(cid:410)(cid:286)(cid:3)(cid:400)(cid:349)(cid:373)(cid:349)(cid:367)(cid:258)(cid:396)(cid:3) (cid:400)(cid:349)(cid:410)(cid:286)(cid:400)(cid:854)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3) o • (cid:4)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:282)(cid:286)(cid:395)(cid:437)(cid:258)(cid:272)(cid:455)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:282)(cid:349)(cid:400)(cid:272)(cid:367)(cid:381)(cid:400)(cid:437)(cid:396)(cid:286)(cid:400)(cid:3)(cid:373)(cid:258)(cid:282)(cid:286)(cid:3)(cid:349)(cid:374)(cid:3)(cid:69)(cid:381)(cid:410)(cid:286)(cid:3)(cid:1005)(cid:1010)(cid:3) (cid:258)(cid:336)(cid:258)(cid:349)(cid:374)(cid:400)(cid:410)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:396)(cid:286)(cid:395)(cid:437)(cid:349)(cid:396)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:4)(cid:4)(cid:94)(cid:17)(cid:3)(cid:1005)(cid:1007)(cid:1011)(cid:3)(cid:87)(cid:396)(cid:381)(cid:448)(cid:349)(cid:400)(cid:349)(cid:381)(cid:374)(cid:400)(cid:853)(cid:3)(cid:18)(cid:381)(cid:374)(cid:410)(cid:349)(cid:374)(cid:336)(cid:286)(cid:374)(cid:410)(cid:3) (cid:62)(cid:349)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:349)(cid:286)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:18)(cid:381)(cid:374)(cid:410)(cid:349)(cid:374)(cid:336)(cid:286)(cid:374)(cid:410)(cid:3)(cid:4)(cid:400)(cid:400)(cid:286)(cid:410)(cid:400)(cid:856)(cid:3) (cid:100)(cid:346)(cid:286)(cid:3)(cid:393)(cid:396)(cid:381)(cid:448)(cid:349)(cid:400)(cid:349)(cid:381)(cid:374)(cid:3)(cid:349)(cid:400)(cid:3)(cid:282)(cid:286)(cid:410)(cid:286)(cid:396)(cid:373)(cid:349)(cid:374)(cid:286)(cid:282)(cid:3)(cid:410)(cid:346)(cid:396)(cid:381)(cid:437)(cid:336)(cid:346)(cid:3) (cid:286)(cid:400)(cid:410)(cid:349)(cid:373)(cid:258)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:286)(cid:454)(cid:393)(cid:286)(cid:272)(cid:410)(cid:286)(cid:282)(cid:3)(cid:272)(cid:381)(cid:400)(cid:410)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:393)(cid:286)(cid:396)(cid:296)(cid:381)(cid:396)(cid:373)(cid:3) (cid:410)(cid:346)(cid:286)(cid:3)(cid:396)(cid:286)(cid:373)(cid:286)(cid:282)(cid:349)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:449)(cid:381)(cid:396)(cid:364)(cid:400)(cid:3)(cid:258)(cid:410)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:286)(cid:374)(cid:282)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3) (cid:437)(cid:400)(cid:286)(cid:296)(cid:437)(cid:367)(cid:3)(cid:367)(cid:349)(cid:296)(cid:286)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:400)(cid:349)(cid:410)(cid:286)(cid:853)(cid:3)(cid:449)(cid:346)(cid:349)(cid:272)(cid:346)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:286)(cid:448)(cid:258)(cid:367)(cid:437)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3) (cid:258)(cid:374)(cid:374)(cid:437)(cid:258)(cid:367)(cid:367)(cid:455)(cid:856)(cid:3)(cid:28)(cid:454)(cid:393)(cid:286)(cid:272)(cid:410)(cid:286)(cid:282)(cid:3)(cid:272)(cid:381)(cid:400)(cid:410)(cid:400)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:271)(cid:258)(cid:400)(cid:286)(cid:282)(cid:3)(cid:381)(cid:374)(cid:3) (cid:296)(cid:381)(cid:396)(cid:286)(cid:272)(cid:258)(cid:400)(cid:410)(cid:3)(cid:272)(cid:381)(cid:400)(cid:410)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:396)(cid:286)(cid:346)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:258)(cid:410)(cid:286)(cid:3)(cid:400)(cid:349)(cid:410)(cid:286)(cid:400)(cid:3)(cid:336)(cid:349)(cid:448)(cid:286)(cid:374)(cid:3) (cid:272)(cid:437)(cid:396)(cid:396)(cid:286)(cid:374)(cid:410)(cid:3)(cid:396)(cid:286)(cid:346)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:396)(cid:286)(cid:395)(cid:437)(cid:349)(cid:396)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:856)(cid:3)(cid:100)(cid:346)(cid:286)(cid:3) (cid:286)(cid:454)(cid:393)(cid:286)(cid:272)(cid:410)(cid:286)(cid:282)(cid:3)(cid:272)(cid:381)(cid:400)(cid:410)(cid:400)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:258)(cid:282)(cid:361)(cid:437)(cid:400)(cid:410)(cid:286)(cid:282)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:349)(cid:374)(cid:296)(cid:367)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3) (cid:381)(cid:448)(cid:286)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:437)(cid:400)(cid:286)(cid:296)(cid:437)(cid:367)(cid:3)(cid:367)(cid:349)(cid:296)(cid:286)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:400)(cid:349)(cid:410)(cid:286)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3) (cid:282)(cid:349)(cid:400)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:286)(cid:282)(cid:3)(cid:410)(cid:381)(cid:3)(cid:393)(cid:396)(cid:286)(cid:400)(cid:286)(cid:374)(cid:410)(cid:3)(cid:448)(cid:258)(cid:367)(cid:437)(cid:286)(cid:856)(cid:3)(cid:3) (cid:68)(cid:258)(cid:374)(cid:258)(cid:336)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:346)(cid:258)(cid:400)(cid:3)(cid:286)(cid:374)(cid:336)(cid:258)(cid:336)(cid:286)(cid:282)(cid:3)(cid:258)(cid:374)(cid:3)(cid:349)(cid:374)(cid:282)(cid:286)(cid:393)(cid:286)(cid:374)(cid:282)(cid:286)(cid:374)(cid:410)(cid:3) (cid:286)(cid:454)(cid:393)(cid:286)(cid:396)(cid:410)(cid:3)(cid:410)(cid:381)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:3)(cid:400)(cid:286)(cid:448)(cid:286)(cid:396)(cid:258)(cid:367)(cid:3)(cid:400)(cid:349)(cid:410)(cid:286)(cid:400)(cid:3)(cid:282)(cid:437)(cid:396)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3) (cid:455)(cid:286)(cid:258)(cid:396)(cid:853)(cid:3)(cid:349)(cid:374)(cid:3)(cid:258)(cid:282)(cid:282)(cid:349)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:410)(cid:381)(cid:3)(cid:393)(cid:286)(cid:396)(cid:296)(cid:381)(cid:396)(cid:373)(cid:349)(cid:374)(cid:336)(cid:3)(cid:349)(cid:374)(cid:410)(cid:286)(cid:396)(cid:374)(cid:258)(cid:367)(cid:3) (cid:258)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:400)(cid:349)(cid:410)(cid:286)(cid:400)(cid:3)(cid:373)(cid:258)(cid:374)(cid:258)(cid:336)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3) (cid:272)(cid:381)(cid:374)(cid:400)(cid:349)(cid:282)(cid:286)(cid:396)(cid:286)(cid:282)(cid:3)(cid:373)(cid:258)(cid:410)(cid:286)(cid:396)(cid:349)(cid:258)(cid:367)(cid:856)(cid:3)(cid:3) (cid:100)(cid:346)(cid:349)(cid:400)(cid:3)(cid:449)(cid:258)(cid:400)(cid:3)(cid:258)(cid:3)(cid:364)(cid:286)(cid:455)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:373)(cid:258)(cid:410)(cid:410)(cid:286)(cid:396)(cid:3)(cid:271)(cid:258)(cid:400)(cid:286)(cid:282)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3) (cid:400)(cid:349)(cid:336)(cid:374)(cid:349)(cid:296)(cid:349)(cid:272)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:272)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:3)(cid:271)(cid:258)(cid:367)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3) (cid:272)(cid:381)(cid:373)(cid:393)(cid:367)(cid:286)(cid:454)(cid:349)(cid:410)(cid:455)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:361)(cid:437)(cid:282)(cid:336)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3) (cid:282)(cid:286)(cid:410)(cid:286)(cid:396)(cid:373)(cid:349)(cid:374)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:271)(cid:258)(cid:367)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:381)(cid:296)(cid:3)(cid:396)(cid:286)(cid:400)(cid:410)(cid:381)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3) (cid:393)(cid:396)(cid:381)(cid:448)(cid:349)(cid:400)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:282)(cid:437)(cid:286)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:367)(cid:381)(cid:374)(cid:336)(cid:3)(cid:286)(cid:400)(cid:410)(cid:349)(cid:373)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:437)(cid:400)(cid:286)(cid:296)(cid:437)(cid:367)(cid:3) (cid:367)(cid:349)(cid:448)(cid:286)(cid:400)(cid:3)(cid:258)(cid:400)(cid:400)(cid:381)(cid:272)(cid:349)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:373)(cid:258)(cid:374)(cid:455)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:400)(cid:349)(cid:410)(cid:286)(cid:400)(cid:856)(cid:3) (cid:3) (cid:1007)(cid:3) 111 (cid:3) (cid:3) (cid:75)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:47)(cid:374)(cid:296)(cid:381)(cid:396)(cid:373)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:3) (cid:100)(cid:346)(cid:286)(cid:3)(cid:282)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:400)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:396)(cid:286)(cid:400)(cid:393)(cid:381)(cid:374)(cid:400)(cid:349)(cid:271)(cid:367)(cid:286)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:381)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:349)(cid:374)(cid:296)(cid:381)(cid:396)(cid:373)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:856)(cid:3)(cid:100)(cid:346)(cid:286)(cid:3)(cid:381)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:349)(cid:374)(cid:296)(cid:381)(cid:396)(cid:373)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:272)(cid:381)(cid:373)(cid:393)(cid:396)(cid:349)(cid:400)(cid:286)(cid:400)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:349)(cid:374)(cid:296)(cid:381)(cid:396)(cid:373)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3) the Group’s annual repo(cid:396)(cid:410)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:455)(cid:286)(cid:258)(cid:396)(cid:3)(cid:286)(cid:374)(cid:282)(cid:286)(cid:282)(cid:3)(cid:1007)(cid:1005)(cid:3)(cid:24)(cid:286)(cid:272)(cid:286)(cid:373)(cid:271)(cid:286)(cid:396)(cid:3)(cid:1006)(cid:1004)(cid:1006)(cid:1007)(cid:853)(cid:3)(cid:271)(cid:437)(cid:410)(cid:3)(cid:282)(cid:381)(cid:286)(cid:400)(cid:3)(cid:374)(cid:381)(cid:410)(cid:3)(cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:286)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:381)(cid:437)(cid:396)(cid:3) auditor’s report thereon. (cid:3) (cid:75)(cid:437)(cid:396)(cid:3)(cid:381)(cid:393)(cid:349)(cid:374)(cid:349)(cid:381)(cid:374)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:282)(cid:381)(cid:286)(cid:400)(cid:3)(cid:374)(cid:381)(cid:410)(cid:3)(cid:272)(cid:381)(cid:448)(cid:286)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:381)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:349)(cid:374)(cid:296)(cid:381)(cid:396)(cid:373)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:449)(cid:286)(cid:3)(cid:282)(cid:381)(cid:3)(cid:374)(cid:381)(cid:410)(cid:3)(cid:286)(cid:454)(cid:393)(cid:396)(cid:286)(cid:400)(cid:400)(cid:3)(cid:258)(cid:374)(cid:455)(cid:3)(cid:296)(cid:381)(cid:396)(cid:373)(cid:3)(cid:381)(cid:296)(cid:3) (cid:258)(cid:400)(cid:400)(cid:437)(cid:396)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:272)(cid:381)(cid:374)(cid:272)(cid:367)(cid:437)(cid:400)(cid:349)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:396)(cid:286)(cid:381)(cid:374)(cid:856)(cid:3)(cid:3) (cid:47)(cid:374)(cid:3)(cid:272)(cid:381)(cid:374)(cid:374)(cid:286)(cid:272)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:381)(cid:437)(cid:396)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:853)(cid:3)(cid:381)(cid:437)(cid:396)(cid:3)(cid:396)(cid:286)(cid:400)(cid:393)(cid:381)(cid:374)(cid:400)(cid:349)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:455)(cid:3)(cid:349)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:396)(cid:286)(cid:258)(cid:282)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:381)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:349)(cid:374)(cid:296)(cid:381)(cid:396)(cid:373)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:258)(cid:374)(cid:282)(cid:853)(cid:3)(cid:349)(cid:374)(cid:3)(cid:282)(cid:381)(cid:349)(cid:374)(cid:336)(cid:3) (cid:400)(cid:381)(cid:853)(cid:3)(cid:272)(cid:381)(cid:374)(cid:400)(cid:349)(cid:282)(cid:286)(cid:396)(cid:3)(cid:449)(cid:346)(cid:286)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:381)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:349)(cid:374)(cid:296)(cid:381)(cid:396)(cid:373)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:349)(cid:400)(cid:3)(cid:373)(cid:258)(cid:410)(cid:286)(cid:396)(cid:349)(cid:258)(cid:367)(cid:367)(cid:455)(cid:3)(cid:349)(cid:374)(cid:272)(cid:381)(cid:374)(cid:400)(cid:349)(cid:400)(cid:410)(cid:286)(cid:374)(cid:410)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:381)(cid:396)(cid:3)(cid:381)(cid:437)(cid:396)(cid:3)(cid:364)(cid:374)(cid:381)(cid:449)(cid:367)(cid:286)(cid:282)(cid:336)(cid:286)(cid:3) (cid:381)(cid:271)(cid:410)(cid:258)(cid:349)(cid:374)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:853)(cid:3)(cid:381)(cid:396)(cid:3)(cid:381)(cid:410)(cid:346)(cid:286)(cid:396)(cid:449)(cid:349)(cid:400)(cid:286)(cid:3)(cid:258)(cid:393)(cid:393)(cid:286)(cid:258)(cid:396)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:271)(cid:286)(cid:3)(cid:373)(cid:258)(cid:410)(cid:286)(cid:396)(cid:349)(cid:258)(cid:367)(cid:367)(cid:455)(cid:3)(cid:373)(cid:349)(cid:400)(cid:400)(cid:410)(cid:258)(cid:410)(cid:286)(cid:282)(cid:856)(cid:3)(cid:47)(cid:296)(cid:853)(cid:3)(cid:271)(cid:258)(cid:400)(cid:286)(cid:282)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:449)(cid:381)(cid:396)(cid:364)(cid:3)(cid:449)(cid:286)(cid:3)(cid:346)(cid:258)(cid:448)(cid:286)(cid:3)(cid:393)(cid:286)(cid:396)(cid:296)(cid:381)(cid:396)(cid:373)(cid:286)(cid:282)(cid:853)(cid:3)(cid:449)(cid:286)(cid:3) (cid:272)(cid:381)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:286)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:410)(cid:346)(cid:286)(cid:396)(cid:286)(cid:3)(cid:349)(cid:400)(cid:3)(cid:258)(cid:3)(cid:373)(cid:258)(cid:410)(cid:286)(cid:396)(cid:349)(cid:258)(cid:367)(cid:3)(cid:373)(cid:349)(cid:400)(cid:400)(cid:410)(cid:258)(cid:410)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:349)(cid:400)(cid:3)(cid:381)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:349)(cid:374)(cid:296)(cid:381)(cid:396)(cid:373)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:853)(cid:3)(cid:449)(cid:286)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:396)(cid:286)(cid:395)(cid:437)(cid:349)(cid:396)(cid:286)(cid:282)(cid:3)(cid:410)(cid:381)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:296)(cid:258)(cid:272)(cid:410)(cid:856)(cid:3)(cid:116)(cid:286)(cid:3) (cid:346)(cid:258)(cid:448)(cid:286)(cid:3)(cid:374)(cid:381)(cid:410)(cid:346)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:381)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:349)(cid:400)(cid:3)(cid:396)(cid:286)(cid:336)(cid:258)(cid:396)(cid:282)(cid:856)(cid:3)(cid:3) (cid:90)(cid:286)(cid:400)(cid:393)(cid:381)(cid:374)(cid:400)(cid:349)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:349)(cid:286)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:24)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:400)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:38)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:90)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3) (cid:100)(cid:346)(cid:286)(cid:3)(cid:282)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:396)(cid:286)(cid:400)(cid:393)(cid:381)(cid:374)(cid:400)(cid:349)(cid:271)(cid:367)(cid:286)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:393)(cid:396)(cid:286)(cid:393)(cid:258)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:336)(cid:349)(cid:448)(cid:286)(cid:400)(cid:3)(cid:258)(cid:3)(cid:410)(cid:396)(cid:437)(cid:286)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:296)(cid:258)(cid:349)(cid:396)(cid:3) (cid:448)(cid:349)(cid:286)(cid:449)(cid:3)(cid:349)(cid:374)(cid:3)(cid:258)(cid:272)(cid:272)(cid:381)(cid:396)(cid:282)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:4)(cid:437)(cid:400)(cid:410)(cid:396)(cid:258)(cid:367)(cid:349)(cid:258)(cid:374)(cid:3)(cid:4)(cid:272)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:94)(cid:410)(cid:258)(cid:374)(cid:282)(cid:258)(cid:396)(cid:282)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:396)(cid:393)(cid:381)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:4)(cid:272)(cid:410)(cid:3)(cid:1006)(cid:1004)(cid:1004)(cid:1005)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:400)(cid:437)(cid:272)(cid:346)(cid:3)(cid:349)(cid:374)(cid:410)(cid:286)(cid:396)(cid:374)(cid:258)(cid:367)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:396)(cid:381)(cid:367)(cid:3) (cid:258)(cid:400)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:282)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:400)(cid:3)(cid:282)(cid:286)(cid:410)(cid:286)(cid:396)(cid:373)(cid:349)(cid:374)(cid:286)(cid:3)(cid:349)(cid:400)(cid:3)(cid:374)(cid:286)(cid:272)(cid:286)(cid:400)(cid:400)(cid:258)(cid:396)(cid:455)(cid:3)(cid:410)(cid:381)(cid:3)(cid:286)(cid:374)(cid:258)(cid:271)(cid:367)(cid:286)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:393)(cid:396)(cid:286)(cid:393)(cid:258)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:336)(cid:349)(cid:448)(cid:286)(cid:400)(cid:3)(cid:258)(cid:3)(cid:410)(cid:396)(cid:437)(cid:286)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:296)(cid:258)(cid:349)(cid:396)(cid:3) (cid:448)(cid:349)(cid:286)(cid:449)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:349)(cid:400)(cid:3)(cid:296)(cid:396)(cid:286)(cid:286)(cid:3)(cid:296)(cid:396)(cid:381)(cid:373)(cid:3)(cid:373)(cid:258)(cid:410)(cid:286)(cid:396)(cid:349)(cid:258)(cid:367)(cid:3)(cid:373)(cid:349)(cid:400)(cid:400)(cid:410)(cid:258)(cid:410)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:853)(cid:3)(cid:449)(cid:346)(cid:286)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:282)(cid:437)(cid:286)(cid:3)(cid:410)(cid:381)(cid:3)(cid:296)(cid:396)(cid:258)(cid:437)(cid:282)(cid:3)(cid:381)(cid:396)(cid:3)(cid:286)(cid:396)(cid:396)(cid:381)(cid:396)(cid:856)(cid:3) (cid:47)(cid:374)(cid:3)(cid:393)(cid:396)(cid:286)(cid:393)(cid:258)(cid:396)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:853)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:282)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:400)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:396)(cid:286)(cid:400)(cid:393)(cid:381)(cid:374)(cid:400)(cid:349)(cid:271)(cid:367)(cid:286)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:455)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:3)(cid:410)(cid:381)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:349)(cid:374)(cid:437)(cid:286)(cid:3)(cid:258)(cid:400)(cid:3)(cid:258)(cid:3) (cid:336)(cid:381)(cid:349)(cid:374)(cid:336)(cid:3)(cid:272)(cid:381)(cid:374)(cid:272)(cid:286)(cid:396)(cid:374)(cid:853)(cid:3)(cid:282)(cid:349)(cid:400)(cid:272)(cid:367)(cid:381)(cid:400)(cid:349)(cid:374)(cid:336)(cid:853)(cid:3)(cid:258)(cid:400)(cid:3)(cid:258)(cid:393)(cid:393)(cid:367)(cid:349)(cid:272)(cid:258)(cid:271)(cid:367)(cid:286)(cid:853)(cid:3)(cid:373)(cid:258)(cid:410)(cid:410)(cid:286)(cid:396)(cid:400)(cid:3)(cid:396)(cid:286)(cid:367)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:410)(cid:381)(cid:3)(cid:336)(cid:381)(cid:349)(cid:374)(cid:336)(cid:3)(cid:272)(cid:381)(cid:374)(cid:272)(cid:286)(cid:396)(cid:374)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:437)(cid:400)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:336)(cid:381)(cid:349)(cid:374)(cid:336)(cid:3)(cid:272)(cid:381)(cid:374)(cid:272)(cid:286)(cid:396)(cid:374)(cid:3)(cid:271)(cid:258)(cid:400)(cid:349)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3) (cid:258)(cid:272)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:437)(cid:374)(cid:367)(cid:286)(cid:400)(cid:400)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:282)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:400)(cid:3)(cid:286)(cid:349)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:349)(cid:374)(cid:410)(cid:286)(cid:374)(cid:282)(cid:3)(cid:410)(cid:381)(cid:3)(cid:367)(cid:349)(cid:395)(cid:437)(cid:349)(cid:282)(cid:258)(cid:410)(cid:286)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:3)(cid:381)(cid:396)(cid:3)(cid:410)(cid:381)(cid:3)(cid:272)(cid:286)(cid:258)(cid:400)(cid:286)(cid:3)(cid:381)(cid:393)(cid:286)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:853)(cid:3)(cid:381)(cid:396)(cid:3)(cid:346)(cid:258)(cid:448)(cid:286)(cid:3)(cid:374)(cid:381)(cid:3)(cid:396)(cid:286)(cid:258)(cid:367)(cid:349)(cid:400)(cid:410)(cid:349)(cid:272)(cid:3) (cid:258)(cid:367)(cid:410)(cid:286)(cid:396)(cid:374)(cid:258)(cid:410)(cid:349)(cid:448)(cid:286)(cid:3)(cid:271)(cid:437)(cid:410)(cid:3)(cid:410)(cid:381)(cid:3)(cid:282)(cid:381)(cid:3)(cid:400)(cid:381)(cid:856)(cid:3)(cid:3) Auditor’s Responsibilities for the Audit of the Financial Report (cid:3) (cid:75)(cid:437)(cid:396)(cid:3)(cid:381)(cid:271)(cid:361)(cid:286)(cid:272)(cid:410)(cid:349)(cid:448)(cid:286)(cid:400)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:410)(cid:381)(cid:3)(cid:381)(cid:271)(cid:410)(cid:258)(cid:349)(cid:374)(cid:3)(cid:396)(cid:286)(cid:258)(cid:400)(cid:381)(cid:374)(cid:258)(cid:271)(cid:367)(cid:286)(cid:3)(cid:258)(cid:400)(cid:400)(cid:437)(cid:396)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:258)(cid:271)(cid:381)(cid:437)(cid:410)(cid:3)(cid:449)(cid:346)(cid:286)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:258)(cid:400)(cid:3)(cid:258)(cid:3)(cid:449)(cid:346)(cid:381)(cid:367)(cid:286)(cid:3)(cid:349)(cid:400)(cid:3)(cid:296)(cid:396)(cid:286)(cid:286)(cid:3)(cid:296)(cid:396)(cid:381)(cid:373)(cid:3) (cid:373)aterial misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. (cid:90)(cid:286)(cid:258)(cid:400)(cid:381)(cid:374)(cid:258)(cid:271)(cid:367)(cid:286)(cid:3)(cid:258)(cid:400)(cid:400)(cid:437)(cid:396)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:349)(cid:400)(cid:3)(cid:258)(cid:3)(cid:346)(cid:349)(cid:336)(cid:346)(cid:3)(cid:367)(cid:286)(cid:448)(cid:286)(cid:367)(cid:3)(cid:381)(cid:296)(cid:3)(cid:258)(cid:400)(cid:400)(cid:437)(cid:396)(cid:258)(cid:374)(cid:272)(cid:286)(cid:853)(cid:3)(cid:271)(cid:437)(cid:410)(cid:3)(cid:349)(cid:400)(cid:3)(cid:374)(cid:381)(cid:410)(cid:3)(cid:258)(cid:3)(cid:336)(cid:437)(cid:258)(cid:396)(cid:258)(cid:374)(cid:410)(cid:286)(cid:286)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:258)(cid:374)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:272)(cid:381)(cid:374)(cid:282)(cid:437)(cid:272)(cid:410)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:258)(cid:272)(cid:272)(cid:381)(cid:396)(cid:282)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3) (cid:410)(cid:346)(cid:286)(cid:3)(cid:4)(cid:437)(cid:400)(cid:410)(cid:396)(cid:258)(cid:367)(cid:349)(cid:258)(cid:374)(cid:3)(cid:4)(cid:437)(cid:282)(cid:349)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:94)(cid:410)(cid:258)(cid:374)(cid:282)(cid:258)(cid:396)(cid:282)(cid:400)(cid:3)(cid:449)(cid:349)(cid:367)(cid:367)(cid:3)(cid:258)(cid:367)(cid:449)(cid:258)(cid:455)(cid:400)(cid:3)(cid:282)(cid:286)(cid:410)(cid:286)(cid:272)(cid:410)(cid:3)(cid:258)(cid:3)(cid:373)(cid:258)(cid:410)(cid:286)(cid:396)(cid:349)(cid:258)(cid:367)(cid:3)(cid:373)(cid:349)(cid:400)(cid:400)(cid:410)(cid:258)(cid:410)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:449)(cid:346)(cid:286)(cid:374)(cid:3)(cid:349)(cid:410)(cid:3)(cid:286)(cid:454)(cid:349)(cid:400)(cid:410)(cid:400)(cid:856)(cid:3)(cid:68)(cid:349)(cid:400)(cid:400)(cid:410)(cid:258)(cid:410)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3)(cid:272)(cid:258)(cid:374)(cid:3)(cid:258)(cid:396)(cid:349)(cid:400)(cid:286)(cid:3) (cid:296)(cid:396)(cid:381)(cid:373)(cid:3)(cid:296)(cid:396)(cid:258)(cid:437)(cid:282)(cid:3)(cid:381)(cid:396)(cid:3)(cid:286)(cid:396)(cid:396)(cid:381)(cid:396)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:272)(cid:381)(cid:374)(cid:400)(cid:349)(cid:282)(cid:286)(cid:396)(cid:286)(cid:282)(cid:3)(cid:373)(cid:258)(cid:410)(cid:286)(cid:396)(cid:349)(cid:258)(cid:367)(cid:3)(cid:349)(cid:296)(cid:853)(cid:3)(cid:349)(cid:374)(cid:282)(cid:349)(cid:448)(cid:349)(cid:282)(cid:437)(cid:258)(cid:367)(cid:367)(cid:455)(cid:3)(cid:381)(cid:396)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:336)(cid:336)(cid:396)(cid:286)(cid:336)(cid:258)(cid:410)(cid:286)(cid:853)(cid:3)(cid:410)(cid:346)(cid:286)(cid:455)(cid:3)(cid:272)(cid:381)(cid:437)(cid:367)(cid:282)(cid:3)(cid:396)(cid:286)(cid:258)(cid:400)(cid:381)(cid:374)(cid:258)(cid:271)(cid:367)(cid:455)(cid:3)(cid:271)(cid:286)(cid:3) (cid:286)(cid:454)(cid:393)(cid:286)(cid:272)(cid:410)(cid:286)(cid:282)(cid:3)(cid:410)(cid:381)(cid:3)(cid:349)(cid:374)(cid:296)(cid:367)(cid:437)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:286)(cid:272)(cid:381)(cid:374)(cid:381)(cid:373)(cid:349)(cid:272)(cid:3)(cid:282)(cid:286)(cid:272)(cid:349)(cid:400)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:437)(cid:400)(cid:286)(cid:396)(cid:400)(cid:3)(cid:410)(cid:258)(cid:364)(cid:286)(cid:374)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:271)(cid:258)(cid:400)(cid:349)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:349)(cid:400)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:856)(cid:3) (cid:4)(cid:400)(cid:3)(cid:393)(cid:258)(cid:396)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:258)(cid:374)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:349)(cid:374)(cid:3)(cid:258)(cid:272)(cid:272)(cid:381)(cid:396)(cid:282)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:4)(cid:437)(cid:400)(cid:410)(cid:396)(cid:258)(cid:367)(cid:349)(cid:258)(cid:374)(cid:3)(cid:4)(cid:437)(cid:282)(cid:349)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:94)(cid:410)(cid:258)(cid:374)(cid:282)(cid:258)(cid:396)(cid:282)(cid:400)(cid:853)(cid:3)(cid:449)(cid:286)(cid:3)(cid:286)(cid:454)(cid:286)(cid:396)(cid:272)(cid:349)(cid:400)(cid:286)(cid:3)(cid:393)(cid:396)(cid:381)(cid:296)(cid:286)(cid:400)(cid:400)(cid:349)(cid:381)(cid:374)(cid:258)(cid:367)(cid:3)(cid:361)(cid:437)(cid:282)(cid:336)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3) (cid:373)(cid:258)(cid:349)(cid:374)(cid:410)(cid:258)(cid:349)(cid:374)(cid:3)(cid:393)(cid:396)(cid:381)(cid:296)(cid:286)(cid:400)(cid:400)(cid:349)(cid:381)(cid:374)(cid:258)(cid:367)(cid:3)(cid:400)(cid:272)(cid:286)(cid:393)(cid:410)(cid:349)(cid:272)(cid:349)(cid:400)(cid:373)(cid:3)(cid:410)(cid:346)(cid:396)(cid:381)(cid:437)(cid:336)(cid:346)(cid:381)(cid:437)(cid:410)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:856)(cid:3)(cid:116)(cid:286)(cid:3)(cid:258)(cid:367)(cid:400)(cid:381)(cid:855)(cid:3) • (cid:47)(cid:282)(cid:286)(cid:374)(cid:410)(cid:349)(cid:296)(cid:455)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:396)(cid:349)(cid:400)(cid:364)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:373)(cid:258)(cid:410)(cid:286)(cid:396)(cid:349)(cid:258)(cid:367)(cid:3)(cid:373)(cid:349)(cid:400)(cid:400)(cid:410)(cid:258)(cid:410)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:853)(cid:3)(cid:449)(cid:346)(cid:286)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:282)(cid:437)(cid:286)(cid:3)(cid:410)(cid:381)(cid:3)(cid:296)(cid:396)(cid:258)(cid:437)(cid:282)(cid:3)(cid:381)(cid:396)(cid:3)(cid:286)(cid:396)(cid:396)(cid:381)(cid:396)(cid:853)(cid:3) (cid:282)(cid:286)(cid:400)(cid:349)(cid:336)(cid:374)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:393)(cid:286)(cid:396)(cid:296)(cid:381)(cid:396)(cid:373)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:393)(cid:396)(cid:381)(cid:272)(cid:286)(cid:282)(cid:437)(cid:396)(cid:286)(cid:400)(cid:3)(cid:396)(cid:286)(cid:400)(cid:393)(cid:381)(cid:374)(cid:400)(cid:349)(cid:448)(cid:286)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:381)(cid:400)(cid:286)(cid:3)(cid:396)(cid:349)(cid:400)(cid:364)(cid:400)(cid:853)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:381)(cid:271)(cid:410)(cid:258)(cid:349)(cid:374)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:286)(cid:448)(cid:349)(cid:282)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:349)(cid:400)(cid:3)(cid:400)(cid:437)(cid:296)(cid:296)(cid:349)(cid:272)(cid:349)(cid:286)(cid:374)(cid:410)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3) (cid:258)(cid:393)(cid:393)(cid:396)(cid:381)(cid:393)(cid:396)(cid:349)(cid:258)(cid:410)(cid:286)(cid:3)(cid:410)(cid:381)(cid:3)(cid:393)(cid:396)(cid:381)(cid:448)(cid:349)(cid:282)(cid:286)(cid:3)(cid:258)(cid:3)(cid:271)(cid:258)(cid:400)(cid:349)(cid:400)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:381)(cid:437)(cid:396)(cid:3)(cid:381)(cid:393)(cid:349)(cid:374)(cid:349)(cid:381)(cid:374)(cid:856)(cid:3)(cid:100)(cid:346)(cid:286)(cid:3)(cid:396)(cid:349)(cid:400)(cid:364)(cid:3)(cid:381)(cid:296)(cid:3)(cid:374)(cid:381)(cid:410)(cid:3)(cid:282)(cid:286)(cid:410)(cid:286)(cid:272)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:258)(cid:3)(cid:373)(cid:258)(cid:410)(cid:286)(cid:396)(cid:349)(cid:258)(cid:367)(cid:3)(cid:373)(cid:349)(cid:400)(cid:400)(cid:410)(cid:258)(cid:410)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:396)(cid:286)(cid:400)(cid:437)(cid:367)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:296)(cid:396)(cid:381)(cid:373)(cid:3) (cid:296)(cid:396)(cid:258)(cid:437)(cid:282)(cid:3)(cid:349)(cid:400)(cid:3)(cid:346)(cid:349)(cid:336)(cid:346)(cid:286)(cid:396)(cid:3)(cid:410)(cid:346)(cid:258)(cid:374)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:381)(cid:374)(cid:286)(cid:3)(cid:396)(cid:286)(cid:400)(cid:437)(cid:367)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:296)(cid:396)(cid:381)(cid:373)(cid:3)(cid:286)(cid:396)(cid:396)(cid:381)(cid:396)(cid:853)(cid:3)(cid:258)(cid:400)(cid:3)(cid:296)(cid:396)(cid:258)(cid:437)(cid:282)(cid:3)(cid:373)(cid:258)(cid:455)(cid:3)(cid:349)(cid:374)(cid:448)(cid:381)(cid:367)(cid:448)(cid:286)(cid:3)(cid:272)(cid:381)(cid:367)(cid:367)(cid:437)(cid:400)(cid:349)(cid:381)(cid:374)(cid:853)(cid:3)(cid:296)(cid:381)(cid:396)(cid:336)(cid:286)(cid:396)(cid:455)(cid:853)(cid:3)(cid:349)(cid:374)(cid:410)(cid:286)(cid:374)(cid:410)(cid:349)(cid:381)(cid:374)(cid:258)(cid:367)(cid:3)(cid:381)(cid:373)(cid:349)(cid:400)(cid:400)(cid:349)(cid:381)(cid:374)(cid:400)(cid:853)(cid:3) (cid:373)(cid:349)(cid:400)(cid:396)(cid:286)(cid:393)(cid:396)(cid:286)(cid:400)(cid:286)(cid:374)(cid:410)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:853)(cid:3)(cid:381)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:381)(cid:448)(cid:286)(cid:396)(cid:396)(cid:349)(cid:282)(cid:286)(cid:3)(cid:381)(cid:296)(cid:3)(cid:349)(cid:374)(cid:410)(cid:286)(cid:396)(cid:374)(cid:258)(cid:367)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:396)(cid:381)(cid:367)(cid:856)(cid:3)(cid:3) • (cid:75)(cid:271)(cid:410)(cid:258)(cid:349)(cid:374)(cid:3)(cid:258)(cid:374)(cid:3)(cid:437)(cid:374)(cid:282)(cid:286)(cid:396)(cid:400)(cid:410)(cid:258)(cid:374)(cid:282)(cid:349)(cid:374)(cid:336)(cid:3)(cid:381)(cid:296)(cid:3)(cid:349)(cid:374)(cid:410)(cid:286)(cid:396)(cid:374)(cid:258)(cid:367)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:396)(cid:381)(cid:367)(cid:3)(cid:396)(cid:286)(cid:367)(cid:286)(cid:448)(cid:258)(cid:374)(cid:410)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:349)(cid:374)(cid:3)(cid:381)(cid:396)(cid:282)(cid:286)(cid:396)(cid:3)(cid:410)(cid:381)(cid:3)(cid:282)(cid:286)(cid:400)(cid:349)(cid:336)(cid:374)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:393)(cid:396)(cid:381)(cid:272)(cid:286)(cid:282)(cid:437)(cid:396)(cid:286)(cid:400)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3) (cid:258)(cid:393)(cid:393)(cid:396)(cid:381)(cid:393)(cid:396)(cid:349)(cid:258)(cid:410)(cid:286)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:349)(cid:396)(cid:272)(cid:437)(cid:373)(cid:400)(cid:410)(cid:258)(cid:374)(cid:272)(cid:286)(cid:400)(cid:853)(cid:3)(cid:271)(cid:437)(cid:410)(cid:3)(cid:374)(cid:381)(cid:410)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:393)(cid:437)(cid:396)(cid:393)(cid:381)(cid:400)(cid:286)(cid:3)(cid:381)(cid:296)(cid:3)(cid:286)(cid:454)(cid:393)(cid:396)(cid:286)(cid:400)(cid:400)(cid:349)(cid:374)(cid:336)(cid:3)(cid:258)(cid:374)(cid:3)(cid:381)(cid:393)(cid:349)(cid:374)(cid:349)(cid:381)(cid:374)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:286)(cid:296)(cid:296)(cid:286)(cid:272)(cid:410)(cid:349)(cid:448)(cid:286)(cid:374)(cid:286)(cid:400)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3) Group’s internal(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:396)(cid:381)(cid:367)(cid:856)(cid:3)(cid:3) • (cid:28)(cid:448)(cid:258)(cid:367)(cid:437)(cid:258)(cid:410)(cid:286)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:393)(cid:393)(cid:396)(cid:381)(cid:393)(cid:396)(cid:349)(cid:258)(cid:410)(cid:286)(cid:374)(cid:286)(cid:400)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:258)(cid:272)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:393)(cid:381)(cid:367)(cid:349)(cid:272)(cid:349)(cid:286)(cid:400)(cid:3)(cid:437)(cid:400)(cid:286)(cid:282)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:396)(cid:286)(cid:258)(cid:400)(cid:381)(cid:374)(cid:258)(cid:271)(cid:367)(cid:286)(cid:374)(cid:286)(cid:400)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:258)(cid:272)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:286)(cid:400)(cid:410)(cid:349)(cid:373)(cid:258)(cid:410)(cid:286)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3) (cid:396)(cid:286)(cid:367)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:282)(cid:349)(cid:400)(cid:272)(cid:367)(cid:381)(cid:400)(cid:437)(cid:396)(cid:286)(cid:400)(cid:3)(cid:373)(cid:258)(cid:282)(cid:286)(cid:3)(cid:271)(cid:455)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:282)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:400)(cid:856)(cid:3)(cid:3) • Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, base(cid:282)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3) (cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:286)(cid:448)(cid:349)(cid:282)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3)(cid:381)(cid:271)(cid:410)(cid:258)(cid:349)(cid:374)(cid:286)(cid:282)(cid:853)(cid:3)(cid:449)(cid:346)(cid:286)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:258)(cid:3)(cid:373)(cid:258)(cid:410)(cid:286)(cid:396)(cid:349)(cid:258)(cid:367)(cid:3)(cid:437)(cid:374)(cid:272)(cid:286)(cid:396)(cid:410)(cid:258)(cid:349)(cid:374)(cid:410)(cid:455)(cid:3)(cid:286)(cid:454)(cid:349)(cid:400)(cid:410)(cid:400)(cid:3)(cid:396)(cid:286)(cid:367)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:410)(cid:381)(cid:3)(cid:286)(cid:448)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3)(cid:381)(cid:396)(cid:3)(cid:272)(cid:381)(cid:374)(cid:282)(cid:349)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:373)(cid:258)(cid:455)(cid:3)(cid:272)(cid:258)(cid:400)(cid:410)(cid:3) significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty (cid:286)(cid:454)(cid:349)(cid:400)(cid:410)(cid:400)(cid:853)(cid:3)(cid:449)(cid:286)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:396)(cid:286)(cid:395)(cid:437)(cid:349)(cid:396)(cid:286)d to draw attention in our auditor’s report to the related disclosures in the financial report (cid:381)(cid:396)(cid:853)(cid:3)(cid:349)(cid:296)(cid:3)(cid:400)(cid:437)(cid:272)(cid:346)(cid:3)(cid:282)(cid:349)(cid:400)(cid:272)(cid:367)(cid:381)(cid:400)(cid:437)(cid:396)(cid:286)(cid:400)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:349)(cid:374)(cid:258)(cid:282)(cid:286)(cid:395)(cid:437)(cid:258)(cid:410)(cid:286)(cid:853)(cid:3)(cid:410)(cid:381)(cid:3)(cid:373)(cid:381)(cid:282)(cid:349)(cid:296)(cid:455)(cid:3)(cid:381)(cid:437)(cid:396)(cid:3)(cid:381)(cid:393)(cid:349)(cid:374)(cid:349)(cid:381)(cid:374)(cid:856)(cid:3)(cid:75)(cid:437)(cid:396)(cid:3)(cid:272)(cid:381)(cid:374)(cid:272)(cid:367)(cid:437)(cid:400)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:271)(cid:258)(cid:400)(cid:286)(cid:282)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:286)(cid:448)(cid:349)(cid:282)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3) obtained up to the date of our auditor’s report. H(cid:381)(cid:449)(cid:286)(cid:448)(cid:286)(cid:396)(cid:853)(cid:3)(cid:296)(cid:437)(cid:410)(cid:437)(cid:396)(cid:286)(cid:3)(cid:286)(cid:448)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3)(cid:381)(cid:396)(cid:3)(cid:272)(cid:381)(cid:374)(cid:282)(cid:349)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:373)(cid:258)(cid:455)(cid:3)(cid:272)(cid:258)(cid:437)(cid:400)(cid:286)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:3)(cid:410)(cid:381)(cid:3) (cid:272)(cid:286)(cid:258)(cid:400)(cid:286)(cid:3)(cid:410)(cid:381)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:349)(cid:374)(cid:437)(cid:286)(cid:3)(cid:258)(cid:400)(cid:3)(cid:258)(cid:3)(cid:336)(cid:381)(cid:349)(cid:374)(cid:336)(cid:3)(cid:272)(cid:381)(cid:374)(cid:272)(cid:286)(cid:396)(cid:374)(cid:856)(cid:3)(cid:3) (cid:1008)(cid:3) Adbri 2023 Annual Report 112 Independent auditor’s report continued (cid:3) (cid:3) • (cid:28)(cid:448)(cid:258)(cid:367)(cid:437)(cid:258)(cid:410)(cid:286)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:381)(cid:448)(cid:286)(cid:396)(cid:258)(cid:367)(cid:367)(cid:3)(cid:393)(cid:396)(cid:286)(cid:400)(cid:286)(cid:374)(cid:410)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:853)(cid:3)(cid:400)(cid:410)(cid:396)(cid:437)(cid:272)(cid:410)(cid:437)(cid:396)(cid:286)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:286)(cid:374)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:853)(cid:3)(cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:282)(cid:349)(cid:400)(cid:272)(cid:367)(cid:381)(cid:400)(cid:437)(cid:396)(cid:286)(cid:400)(cid:853)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3) (cid:449)(cid:346)(cid:286)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:396)(cid:286)(cid:393)(cid:396)(cid:286)(cid:400)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:437)(cid:374)(cid:282)(cid:286)(cid:396)(cid:367)(cid:455)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:396)(cid:258)(cid:374)(cid:400)(cid:258)(cid:272)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:286)(cid:448)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3)(cid:349)(cid:374)(cid:3)(cid:258)(cid:3)(cid:373)(cid:258)(cid:374)(cid:374)(cid:286)(cid:396)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:258)(cid:272)(cid:346)(cid:349)(cid:286)(cid:448)(cid:286)(cid:400)(cid:3)(cid:296)(cid:258)(cid:349)(cid:396)(cid:3) (cid:393)(cid:396)(cid:286)(cid:400)(cid:286)(cid:374)(cid:410)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:856)(cid:3)(cid:3) • (cid:75)(cid:271)(cid:410)(cid:258)(cid:349)(cid:374)(cid:3)(cid:400)(cid:437)(cid:296)(cid:296)(cid:349)(cid:272)(cid:349)(cid:286)(cid:374)(cid:410)(cid:3)(cid:258)(cid:393)(cid:393)(cid:396)(cid:381)(cid:393)(cid:396)(cid:349)(cid:258)(cid:410)(cid:286)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:286)(cid:448)(cid:349)(cid:282)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3)(cid:396)(cid:286)(cid:336)(cid:258)(cid:396)(cid:282)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:349)(cid:374)(cid:296)(cid:381)(cid:396)(cid:373)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:286)(cid:374)(cid:410)(cid:349)(cid:410)(cid:349)(cid:286)(cid:400)(cid:3)(cid:381)(cid:396)(cid:3)(cid:271)(cid:437)(cid:400)(cid:349)(cid:374)(cid:286)(cid:400)(cid:400)(cid:3) (cid:258)(cid:272)(cid:410)(cid:349)(cid:448)(cid:349)(cid:410)(cid:349)(cid:286)(cid:400)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:39)(cid:396)(cid:381)(cid:437)(cid:393)(cid:3)(cid:410)(cid:381)(cid:3)(cid:286)(cid:454)(cid:393)(cid:396)(cid:286)(cid:400)(cid:400)(cid:3)(cid:258)(cid:374)(cid:3)(cid:381)(cid:393)(cid:349)(cid:374)(cid:349)(cid:381)(cid:374)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:856)(cid:3)(cid:116)(cid:286)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:396)(cid:286)(cid:400)(cid:393)(cid:381)(cid:374)(cid:400)(cid:349)(cid:271)(cid:367)(cid:286)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:282)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:349)(cid:381)(cid:374)(cid:853)(cid:3) supervision and performance of the Group’s audit. We remain solely responsible for our audit opinion.(cid:3) (cid:116)(cid:286)(cid:3)(cid:272)(cid:381)(cid:373)(cid:373)(cid:437)(cid:374)(cid:349)(cid:272)(cid:258)(cid:410)(cid:286)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:282)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:400)(cid:3)(cid:396)(cid:286)(cid:336)(cid:258)(cid:396)(cid:282)(cid:349)(cid:374)(cid:336)(cid:853)(cid:3)(cid:258)(cid:373)(cid:381)(cid:374)(cid:336)(cid:3)(cid:381)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:373)(cid:258)(cid:410)(cid:410)(cid:286)(cid:396)(cid:400)(cid:853)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:393)(cid:367)(cid:258)(cid:374)(cid:374)(cid:286)(cid:282)(cid:3)(cid:400)(cid:272)(cid:381)(cid:393)(cid:286)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:410)(cid:349)(cid:373)(cid:349)(cid:374)(cid:336)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3) (cid:400)(cid:349)(cid:336)(cid:374)(cid:349)(cid:296)(cid:349)(cid:272)(cid:258)(cid:374)(cid:410)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:296)(cid:349)(cid:374)(cid:282)(cid:349)(cid:374)(cid:336)(cid:400)(cid:853)(cid:3)(cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:349)(cid:374)(cid:336)(cid:3)(cid:258)(cid:374)(cid:455)(cid:3)(cid:400)(cid:349)(cid:336)(cid:374)(cid:349)(cid:296)(cid:349)(cid:272)(cid:258)(cid:374)(cid:410)(cid:3)(cid:282)(cid:286)(cid:296)(cid:349)(cid:272)(cid:349)(cid:286)(cid:374)(cid:272)(cid:349)(cid:286)(cid:400)(cid:3)(cid:349)(cid:374)(cid:3)(cid:349)(cid:374)(cid:410)(cid:286)(cid:396)(cid:374)(cid:258)(cid:367)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:396)(cid:381)(cid:367)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:449)(cid:286)(cid:3)(cid:349)(cid:282)(cid:286)(cid:374)(cid:410)(cid:349)(cid:296)(cid:455)(cid:3)(cid:282)(cid:437)(cid:396)(cid:349)(cid:374)(cid:336)(cid:3)(cid:381)(cid:437)(cid:396)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:856)(cid:3)(cid:3) (cid:116)(cid:286)(cid:3)(cid:258)(cid:367)(cid:400)(cid:381)(cid:3)(cid:393)(cid:396)(cid:381)(cid:448)(cid:349)(cid:282)(cid:286)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:282)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:400)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:258)(cid:3)(cid:400)(cid:410)(cid:258)(cid:410)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:449)(cid:286)(cid:3)(cid:346)(cid:258)(cid:448)(cid:286)(cid:3)(cid:272)(cid:381)(cid:373)(cid:393)(cid:367)(cid:349)(cid:286)(cid:282)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:396)(cid:286)(cid:367)(cid:286)(cid:448)(cid:258)(cid:374)(cid:410)(cid:3)(cid:286)(cid:410)(cid:346)(cid:349)(cid:272)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:395)(cid:437)(cid:349)(cid:396)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3)(cid:396)(cid:286)(cid:336)(cid:258)(cid:396)(cid:282)(cid:349)(cid:374)(cid:336)(cid:3) (cid:349)(cid:374)(cid:282)(cid:286)(cid:393)(cid:286)(cid:374)(cid:282)(cid:286)(cid:374)(cid:272)(cid:286)(cid:853)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:410)(cid:381)(cid:3)(cid:272)(cid:381)(cid:373)(cid:373)(cid:437)(cid:374)(cid:349)(cid:272)(cid:258)(cid:410)(cid:286)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:410)(cid:346)(cid:286)(cid:373)(cid:3)(cid:258)(cid:367)(cid:367)(cid:3)(cid:396)(cid:286)(cid:367)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:346)(cid:349)(cid:393)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:381)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:373)(cid:258)(cid:410)(cid:410)(cid:286)(cid:396)(cid:400)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:373)(cid:258)(cid:455)(cid:3)(cid:396)(cid:286)(cid:258)(cid:400)(cid:381)(cid:374)(cid:258)(cid:271)(cid:367)(cid:455)(cid:3)(cid:271)(cid:286)(cid:3)(cid:410)(cid:346)(cid:381)(cid:437)(cid:336)(cid:346)(cid:410)(cid:3) (cid:410)(cid:381)(cid:3)(cid:271)(cid:286)(cid:258)(cid:396)(cid:3)(cid:381)(cid:374)(cid:3)(cid:381)(cid:437)(cid:396)(cid:3)(cid:349)(cid:374)(cid:282)(cid:286)(cid:393)(cid:286)(cid:374)(cid:282)(cid:286)(cid:374)(cid:272)(cid:286)(cid:853)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:449)(cid:346)(cid:286)(cid:396)(cid:286)(cid:3)(cid:258)(cid:393)(cid:393)(cid:367)(cid:349)(cid:272)(cid:258)(cid:271)(cid:367)(cid:286)(cid:853)(cid:3)(cid:258)(cid:272)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:410)(cid:258)(cid:364)(cid:286)(cid:374)(cid:3)(cid:410)(cid:381)(cid:3)(cid:286)(cid:367)(cid:349)(cid:373)(cid:349)(cid:374)(cid:258)(cid:410)(cid:286)(cid:3)(cid:410)(cid:346)(cid:396)(cid:286)(cid:258)(cid:410)(cid:400)(cid:3)(cid:381)(cid:396)(cid:3)(cid:400)(cid:258)(cid:296)(cid:286)(cid:336)(cid:437)(cid:258)(cid:396)(cid:282)(cid:400)(cid:3)(cid:258)(cid:393)(cid:393)(cid:367)(cid:349)(cid:286)(cid:282)(cid:856)(cid:3)(cid:3) (cid:38)(cid:396)(cid:381)(cid:373)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:373)(cid:258)(cid:410)(cid:410)(cid:286)(cid:396)(cid:400)(cid:3)(cid:272)(cid:381)(cid:373)(cid:373)(cid:437)(cid:374)(cid:349)(cid:272)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:282)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:400)(cid:853)(cid:3)(cid:449)(cid:286)(cid:3)(cid:282)(cid:286)(cid:410)(cid:286)(cid:396)(cid:373)(cid:349)(cid:374)(cid:286)(cid:3)(cid:410)(cid:346)(cid:381)(cid:400)(cid:286)(cid:3)(cid:373)(cid:258)(cid:410)(cid:410)(cid:286)(cid:396)(cid:400)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:449)(cid:286)(cid:396)(cid:286)(cid:3)(cid:381)(cid:296)(cid:3)(cid:373)(cid:381)(cid:400)(cid:410)(cid:3)(cid:400)(cid:349)(cid:336)(cid:374)(cid:349)(cid:296)(cid:349)(cid:272)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:349)(cid:374)(cid:3) (cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:437)(cid:396)(cid:396)(cid:286)(cid:374)(cid:410)(cid:3)(cid:393)(cid:286)(cid:396)(cid:349)(cid:381)(cid:282)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:410)(cid:346)(cid:286)(cid:396)(cid:286)(cid:296)(cid:381)(cid:396)(cid:286)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:364)(cid:286)(cid:455)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:373)(cid:258)(cid:410)(cid:410)(cid:286)(cid:396)(cid:400)(cid:856)(cid:3)(cid:116)(cid:286)(cid:3)(cid:282)(cid:286)(cid:400)(cid:272)(cid:396)(cid:349)(cid:271)(cid:286)(cid:3)(cid:410)(cid:346)(cid:286)(cid:400)(cid:286)(cid:3) matters in our auditor’s report unless law or regulation precludes public disclos(cid:437)(cid:396)(cid:286)(cid:3)(cid:258)(cid:271)(cid:381)(cid:437)(cid:410)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:373)(cid:258)(cid:410)(cid:410)(cid:286)(cid:396)(cid:3)(cid:381)(cid:396)(cid:3)(cid:449)(cid:346)(cid:286)(cid:374)(cid:853)(cid:3)(cid:349)(cid:374)(cid:3) (cid:286)(cid:454)(cid:410)(cid:396)(cid:286)(cid:373)(cid:286)(cid:367)(cid:455)(cid:3)(cid:396)(cid:258)(cid:396)(cid:286)(cid:3)(cid:272)(cid:349)(cid:396)(cid:272)(cid:437)(cid:373)(cid:400)(cid:410)(cid:258)(cid:374)(cid:272)(cid:286)(cid:400)(cid:853)(cid:3)(cid:449)(cid:286)(cid:3)(cid:282)(cid:286)(cid:410)(cid:286)(cid:396)(cid:373)(cid:349)(cid:374)(cid:286)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:258)(cid:3)(cid:373)(cid:258)(cid:410)(cid:410)(cid:286)(cid:396)(cid:3)(cid:400)(cid:346)(cid:381)(cid:437)(cid:367)(cid:282)(cid:3)(cid:374)(cid:381)(cid:410)(cid:3)(cid:271)(cid:286)(cid:3)(cid:272)(cid:381)(cid:373)(cid:373)(cid:437)(cid:374)(cid:349)(cid:272)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:381)(cid:437)(cid:396)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:271)(cid:286)(cid:272)(cid:258)(cid:437)(cid:400)(cid:286)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3) (cid:258)(cid:282)(cid:448)(cid:286)(cid:396)(cid:400)(cid:286)(cid:3)(cid:272)(cid:381)(cid:374)(cid:400)(cid:286)(cid:395)(cid:437)(cid:286)(cid:374)(cid:272)(cid:286)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:282)(cid:381)(cid:349)(cid:374)(cid:336)(cid:3)(cid:400)(cid:381)(cid:3)(cid:449)(cid:381)(cid:437)(cid:367)(cid:282)(cid:3)(cid:396)(cid:286)(cid:258)(cid:400)(cid:381)(cid:374)(cid:258)(cid:271)(cid:367)(cid:455)(cid:3)(cid:271)(cid:286)(cid:3)(cid:286)(cid:454)(cid:393)(cid:286)(cid:272)(cid:410)(cid:286)(cid:282)(cid:3)(cid:410)(cid:381)(cid:3)(cid:381)(cid:437)(cid:410)(cid:449)(cid:286)(cid:349)(cid:336)(cid:346)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:393)(cid:437)(cid:271)(cid:367)(cid:349)(cid:272)(cid:3)(cid:349)(cid:374)(cid:410)(cid:286)(cid:396)(cid:286)(cid:400)(cid:410)(cid:3)(cid:271)(cid:286)(cid:374)(cid:286)(cid:296)(cid:349)(cid:410)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:400)(cid:437)(cid:272)(cid:346)(cid:3) (cid:272)(cid:381)(cid:373)(cid:373)(cid:437)(cid:374)(cid:349)(cid:272)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:856)(cid:3) (cid:90)(cid:90)(cid:286)(cid:286)(cid:393)(cid:393)(cid:381)(cid:381)(cid:396)(cid:396)(cid:410)(cid:410)(cid:3)(cid:3)(cid:381)(cid:381)(cid:374)(cid:374)(cid:3)(cid:3)(cid:410)(cid:410)(cid:346)(cid:346)(cid:286)(cid:286)(cid:3)(cid:3)(cid:90)(cid:90)(cid:286)(cid:286)(cid:373)(cid:373)(cid:437)(cid:437)(cid:374)(cid:374)(cid:286)(cid:286)(cid:396)(cid:396)(cid:258)(cid:258)(cid:410)(cid:410)(cid:349)(cid:349)(cid:381)(cid:381)(cid:374)(cid:374)(cid:3)(cid:3)(cid:90)(cid:90)(cid:286)(cid:286)(cid:393)(cid:393)(cid:381)(cid:381)(cid:396)(cid:396)(cid:410)(cid:410)(cid:3)(cid:3) (cid:75)(cid:393)(cid:349)(cid:374)(cid:349)(cid:381)(cid:374)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:90)(cid:286)(cid:373)(cid:437)(cid:374)(cid:286)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:90)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3) (cid:116)(cid:286)(cid:3)(cid:346)(cid:258)(cid:448)(cid:286)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:286)(cid:282)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:90)(cid:286)(cid:373)(cid:437)(cid:374)(cid:286)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:90)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:393)(cid:258)(cid:336)(cid:286)(cid:400)(cid:3)(cid:1006)(cid:1009)(cid:3)(cid:410)(cid:381)(cid:3)(cid:1008)(cid:1009)(cid:3)of the Directors’ Report for the year ended (cid:3) (cid:1007)(cid:1005)(cid:3)(cid:24)(cid:286)(cid:272)(cid:286)(cid:373)(cid:271)(cid:286)(cid:396)(cid:3)(cid:1006)(cid:1004)(cid:1006)(cid:1007)(cid:856)(cid:3)(cid:3) (cid:47)(cid:374)(cid:3)(cid:381)(cid:437)(cid:396)(cid:3)(cid:381)(cid:393)(cid:349)(cid:374)(cid:349)(cid:381)(cid:374)(cid:853)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:90)(cid:286)(cid:373)(cid:437)(cid:374)(cid:286)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:90)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:4)(cid:282)(cid:271)(cid:396)(cid:349)(cid:3)(cid:62)(cid:349)(cid:373)(cid:349)(cid:410)(cid:286)(cid:282)(cid:853)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:455)(cid:286)(cid:258)(cid:396)(cid:3)(cid:286)(cid:374)(cid:282)(cid:286)(cid:282)(cid:3)(cid:1007)(cid:1005)(cid:3)(cid:24)(cid:286)(cid:272)(cid:286)(cid:373)(cid:271)(cid:286)(cid:396)(cid:3)(cid:1006)(cid:1004)(cid:1006)(cid:1007)(cid:853)(cid:3)(cid:272)(cid:381)(cid:373)(cid:393)(cid:367)(cid:349)(cid:286)(cid:400)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3) (cid:400)(cid:286)(cid:272)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:1007)(cid:1004)(cid:1004)(cid:4)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:396)(cid:393)(cid:381)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:4)(cid:272)(cid:410)(cid:3)(cid:1006)(cid:1004)(cid:1004)(cid:1005)(cid:856)(cid:3)(cid:3) (cid:90)(cid:286)(cid:400)(cid:393)(cid:381)(cid:374)(cid:400)(cid:349)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:349)(cid:286)(cid:400)(cid:3)(cid:3) (cid:100)(cid:346)(cid:286)(cid:3)(cid:282)(cid:349)(cid:396)(cid:286)(cid:272)(cid:410)(cid:381)(cid:396)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:373)(cid:393)(cid:258)(cid:374)(cid:455)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:396)(cid:286)(cid:400)(cid:393)(cid:381)(cid:374)(cid:400)(cid:349)(cid:271)(cid:367)(cid:286)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:393)(cid:396)(cid:286)(cid:393)(cid:258)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:393)(cid:396)(cid:286)(cid:400)(cid:286)(cid:374)(cid:410)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:90)(cid:286)(cid:373)(cid:437)(cid:374)(cid:286)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:90)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:3)(cid:349)(cid:374)(cid:3) (cid:258)(cid:272)(cid:272)(cid:381)(cid:396)(cid:282)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:400)(cid:286)(cid:272)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:1007)(cid:1004)(cid:1004)(cid:4)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:18)(cid:381)(cid:396)(cid:393)(cid:381)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:4)(cid:272)(cid:410)(cid:3)(cid:1006)(cid:1004)(cid:1004)(cid:1005)(cid:856)(cid:3)(cid:75)(cid:437)(cid:396)(cid:3)(cid:396)(cid:286)(cid:400)(cid:393)(cid:381)(cid:374)(cid:400)(cid:349)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:455)(cid:3)(cid:349)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:286)(cid:454)(cid:393)(cid:396)(cid:286)(cid:400)(cid:400)(cid:3)(cid:258)(cid:374)(cid:3)(cid:381)(cid:393)(cid:349)(cid:374)(cid:349)(cid:381)(cid:374)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3) (cid:90)(cid:286)(cid:373)(cid:437)(cid:374)(cid:286)(cid:396)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:90)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:853)(cid:3)(cid:271)(cid:258)(cid:400)(cid:286)(cid:282)(cid:3)(cid:381)(cid:374)(cid:3)(cid:381)(cid:437)(cid:396)(cid:3)(cid:258)(cid:437)(cid:282)(cid:349)(cid:410)(cid:3)(cid:272)(cid:381)(cid:374)(cid:282)(cid:437)(cid:272)(cid:410)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:258)(cid:272)(cid:272)(cid:381)(cid:396)(cid:282)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:4)(cid:437)(cid:400)(cid:410)(cid:396)(cid:258)(cid:367)(cid:349)(cid:258)(cid:374)(cid:3)(cid:4)(cid:437)(cid:282)(cid:349)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:94)(cid:410)(cid:258)(cid:374)(cid:282)(cid:258)(cid:396)(cid:282)(cid:400)(cid:856)(cid:3)(cid:3) (cid:3) (cid:3) (cid:24)(cid:28)(cid:62)(cid:75)(cid:47)(cid:100)(cid:100)(cid:28)(cid:3)(cid:100)(cid:75)(cid:104)(cid:18)(cid:44)(cid:28)(cid:3)(cid:100)(cid:75)(cid:44)(cid:68)(cid:4)(cid:100)(cid:94)(cid:104)(cid:3) (cid:3) (cid:3) (cid:3) (cid:58)(cid:258)(cid:400)(cid:381)(cid:374)(cid:3)(cid:100)(cid:346)(cid:381)(cid:396)(cid:374)(cid:286)(cid:3) (cid:3) (cid:87)(cid:258)(cid:396)(cid:410)(cid:374)(cid:286)(cid:396)(cid:3) (cid:3) (cid:3) (cid:18)(cid:346)(cid:258)(cid:396)(cid:410)(cid:286)(cid:396)(cid:286)(cid:282)(cid:3)(cid:4)(cid:272)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:258)(cid:374)(cid:410)(cid:400)(cid:3) (cid:94)(cid:455)(cid:282)(cid:374)(cid:286)(cid:455)(cid:853)(cid:3)(cid:1006)(cid:1011)(cid:3)(cid:38)(cid:286)(cid:271)(cid:396)(cid:437)(cid:258)(cid:396)(cid:455)(cid:3)(cid:1006)(cid:1004)(cid:1006)(cid:1008)(cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:87)(cid:286)(cid:374)(cid:374)(cid:455)(cid:3)(cid:116)(cid:381)(cid:381)(cid:282)(cid:400)(cid:3)(cid:3) (cid:87)(cid:258)(cid:396)(cid:410)(cid:374)(cid:286)(cid:396)(cid:3) (cid:18)(cid:346)(cid:258)(cid:396)(cid:410)(cid:286)(cid:396)(cid:286)(cid:282)(cid:3)(cid:4)(cid:272)(cid:272)(cid:381)(cid:437)(cid:374)(cid:410)(cid:258)(cid:374)(cid:410)(cid:400)(cid:3) (cid:4)(cid:282)(cid:286)(cid:367)(cid:258)(cid:349)(cid:282)(cid:286)(cid:853)(cid:3)(cid:1006)(cid:1011)(cid:3)(cid:38)(cid:286)(cid:271)(cid:396)(cid:437)(cid:258)(cid:396)(cid:455)(cid:3)(cid:1006)(cid:1004)(cid:1006)(cid:1008)(cid:3)(cid:3) (cid:1009)(cid:3) Information for shareholders 113 Annual General Meeting Direct credit of dividends Dividends can be paid directly into an Australian bank or other financial institution. Payments are electronically credited on the dividend payment day and subsequently confirmed by payment advice. Application forms are available from our share registry, Computershare Investor Services Pty Ltd or visit the website at www.computershare.com.au/easyupdate/abc to update your banking details. Dividend Reinvestment Plan (DRP) Adbri’s DRP is currently suspended until further notice. In future, if the DRP is reactivated, it will be notified by way of an ASX announcement. Change of address Shareholders who are Issuer Sponsored should notify any change of address to the share registry, Computershare Investor Services Pty Limited, by telephone or in writing quoting your security holder reference number, previous address and new address. Broker Sponsored (CHESS) holders should advise their sponsoring broker of the change. Investor information other than that relating to a shareholding can be obtained from: Chief Financial Officer Adbri Ltd Level 8, 1 Market Street Sydney NSW 2000 Telephone: +61 478 281 043 Email: investors@adbri.com.au Communications Our internet site www.adbri.com.au offers access to our ASX announcements and news releases as well as information about our operations. The 2024 Annual General Meeting of Adbri Limited will be held on Friday, 24 May 2024. In accordance with Listing Rule 3.13.1, Adbri advises that the closing date for receipt of Director nominations for consideration at the AGM is Tuesday 19 March 2024. Security exchange listing Adbri Limited is quoted on the official list of the Australian Securities Exchange and trades under the symbol ‘ABC’. Sydney is Adbri Limited’s home exchange. Registered Office Level 4, 151 Pirie Street Adelaide SA 5000 Telephone: 08 8223 8000 Enquiries about your shareholding Enquiries or notifications by shareholders regarding their shareholdings or dividends should be directed to Adbri’s share registry: Computershare Investor Services Pty Limited Level 5, 115 Grenfell Street Adelaide SA 5000 Telephone: 1800 339 522 International: +61 3 9415 4031 Facsimile: 1300 534 987 International: +613 9473 2408 When communicating with the share registry, shareholders should quote their current address together with their Security Reference Number (SRN) or Holder Identification Number (HIN) as it appears on their Issuer Sponsored/CHESS statement. Online services Shareholders can access information and update information about their shareholding in Adbri Limited via the internet by visiting Computershare Investor Services Pty Ltd website: www.investorcentre.com Some of the services available online include: check current holding balances, choose your preferred annual report option, update address details, update bank details, confirm whether you have lodged your TFN, ABN or exemption, view your transaction and dividend history or download a variety of forms. Adbri 2023 Annual Report 114 Information for shareholders continued Substantial shareholders Barro Properties Pty Ltd, by a notice of change of interests of substantial shareholder dated 30 May 2019, informed the Company that it or an associate had a relevant interest in 279,710,424 ordinary shares or 43.0% of the Company’s issued share capital. Vanguard Group (The Vanguard Group Inc, and its controlled entities), by a notice of interests of substantial shareholder dated 20 September 2022, informed the Company that it or an associate had a relevant interest in 32,732,862 ordinary shares or 5.016% of the Company’s issued share capital. CRH plc, by notice of initial substantial shareholder dated 18 December 2023, informed the Company that it or an associate had a relevant interest in 279,274,902 ordinary shares or 42.7% of the Company’s issued share capital. The interest arose pursuant to a Joint Acquisition Agreement dated 14 December 2023 whereby Barro Properties Pty Ltd and its associates are associates of CRH plc and CRH ANZ Pty Ltd. UBS Group AG and its related bodies corporate, by a notice in initial substantial shareholder dated 13 February 2024, informed the Company that it or an associate had a relevant interest in 32,824,409 ordinary shares or 5.02% of the Company’s issued share capital. On-market buy back At 27 February 2024 there is no on-market buy back of the Company’s shares being undertaken. The twenty largest shareholders shown in the Company’s Register of Members as at 22 January 2024 Shareholder Barro Properties Pty Ltd HSBC Custody Nominees (Australia) Limited J P Morgan Nominees Australia Pty Limited Citicorp Nominees Pty Limited Barro Group Pty Ltd Carltonbridge Pty Ltd Argo Investments Ltd Cloverdew Pty Ltd Churchbridge Pty Ltd BNP Paribas Noms Pty Ltd Ageflow Pty Ltd Rayonbridge Pty Ltd National Nominees Limited National Exchange Pty Ltd Netwealth Investments Limited Prudential Nominees Pty Ltd Sunstone Finance Pty Ltd Equity Trustees LtdBNP Paribas Nominees Pty Ltd BNP Paribas Noms (NZ) Ltd Total top 20 shareholders Total remaining shareholders balance Number of ordinary shares held 215,285,359 88,013,089 71,775,399 51,427,082 32,412,619 11,416,000 7,681,385 6,580,000 5,040,000 4,235,725 3,630,000 3,574,000 3,564,721 3,000,000 2,878,901 2,800,000 2,000,000 1,715,824 1,599,076 1,374,563 % of issued capital 32.95 13.47 10.99 7.87 4.96 1.75 1.18 1.01 0.77 0.65 0.56 0.55 0.55 0.46 0.44 0.43 0.31 0.26 0.24 0.21 520,003,743 133,325,800 79.59 20.41 Voting rights All shares at 22 January 2024 were of one class with equal voting rights being one vote for each shareholder and, on a poll, one vote for each fully paid ordinary share. Shares held at 22 January 2024 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001 – over Total shareholders Less than a marketable parcel of 163 shares 1. Rounding of 0.01% of holders. Unquoted securities Number of shareholders 4,492 6,314 2,650 2,585 133 16,174 1,095 % of issued capital 0.30 2.69 3.06 10.08 83.87 100.001 As at 22 January 2024, 2,916,849 Awards were on issue to the senior executive team under the Adbri Limited’s Executive Performance Share Plan as part of the Company’s long-term and short-term incentive programs. The Awards are not quoted and do not participate in the distribution of dividends and do not have voting rights. The total number of participants in the Adbri Limited’s Executive Performance Share Plan and eligible to receive the Awards is eleven. Adbri and the Adbri logo are registered trade marks of Adbri Limited. Registered Office Level 4, 151 Pirie Street Adelaide SA 5000 +61 8223 8000 ABN 15 007 596 018 adbri.com.au