BKW

Brickworks Limited 
ABN. 17 000 028 526 

738 - 780 Wallgrove Road 
Horsley Park NSW 2175 

PO Box 6550 
Wetherill Park NSW 1851 

Tel 
Fax 

+61 2 9830 7800 
+61 2 9620 1328 

info@brickworks.com.au 
www.brickworks.com.au 

25 October 2012 

Australian Securities Exchange 

Attention:  ASX Market Announcements 

BY ELECTRONIC LODGEMENT 

Dear Sir/Madam, 

Please find attached the Brickworks Ltd 2012 Annual Report which will be distributed to 
shareholders today. 

Yours faithfully, 

BRICKWORKS LIMITED 

IAIN THOMPSON 

COMPANY SECRETARY 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
ABN 17 000 028 526

ANNUAL REPORT 2012

BRICKWORKS LIMITED AND CONTROLLED ENTITIES
A.B.N. 17 000 028 526

FIVE YEAR SUMMARY

2008
$000

2009
$000

2010
$000

2011
$000

2012
%
$000 Growth

Total revenue

553,716 

593,511 

656,538 

635,615

556,911 

(12%)

Building Products revenue

519,986 

489,253 

580,283 

604,915

547,590 

(9%)

Earnings before interest tax and amortisation

Building products
Property
Waste management
Investments
Associates
Head office and other expenses

Total EBITA

Borrowing costs
Income tax

53,610 
91,867 
1,792 
681 
36,247 
(6,135)

37,026 
38,798 
1,841 
1,268 
94,157 
(7,271)

53,379 
26,638 
1,755 
2,434 
74,047 
(7,729)

42,017
26,662
2,573
1,713
66,182
(7,148)

28,538 
16,438 
2,571 
1,081 
66,619 
(6,796)

(32%)
(38%)
(0%)
(37%)
1%
5%

178,062 

165,819 

150,524 

131,999

108,451 

(18%)

(37,286)
(32,603)

(33,314)
(18,825)

(24,491)
(15,851)

(21,155)
(10,061)

(25,215)
(4,366)

(19%)
57%

Net profit after income tax - normal

108,173 

113,680 

110,182 

100,783

78,870 

(22%)

Significant items

Washington H Soul Pattinson & Co.

(9,563)

392,882 

- 

88,686

756 

Write down of assets to recoverable value
 - Property, plant & equipment
 - Investment property
 - Investment in associate (BKI)
 - Building products inventory
Remediation provision recognised
Borrowing costs
Business acquisition costs
Costs on closure of manufacturing facility
Costs on start up of manufacturing facilities
Impairment of goodwill
Other significant items
Tax on significant items
One off tax items

Net profit after income tax  
(incl significant items)

- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
2,868 
- 

(43,779)
(24,716)
(13,674)
(8,171)
(12,039)
(3,036)
- 
- 
-
-
(3,489)
(92,443)
- 

(2,728)
- 
- 
(4,750)
- 
- 
(2,826)
(3,482)
-
-
(577)
4,283 
38,688 

(14,021)
- 
- 
(1,084)
- 
- 
(2,751)
(8,651)
-
-
(2,511)
(17,900)
-

(4,169)
- 
- 
(4,192)
- 
- 
(1,947)
(6,927)
(4,147)
(31,627)
(3,885)
7,580 
12,992 

101,478 

305,215 

138,790 

142,551

43,304 

(70%)

Basic earnings per share (cents)

Normalised earnings per share (cents)

76.5

81.5

229.8 

85.6 

96.7 

76.7 

96.7

68.3

29.3

53.4

(70%)

(22%)

Dividends

Ordinary dividends per share (cents)

 39.0 

 39.0 

40.0 

40.5

40.5

0%

Ratios

Net tangible assets per share

Return on shareholders equity

$6.35

9.1%

$8.27

22.3%

$9.28

8.4%

Interest cover ratio

4.8 

4.6 

6.5 

$9.42

8.5%

6.4

$9.44

0%

2.6%

(69%)

5.2

(19%)

Net debt to capital employed

32.0%

21.8%

12.1%

13.0%

14.6%

12%

BRICKWORKS LIMITED

A.B.N. 17 000 028 526

A N N U A L  R E P O R T   2 0 1 2

REGISTERED OFFICE: 

738 - 780 Wallgrove Road
Horsley Park   NSW   2175 
Telephone: (02) 9830 7800 
Facsimile:  (02) 9620 1328

DIRECTORS: 

ROBERT D. MILLNER  FAICD (Chairman)
Director since 1997

MICHAEL J. MILLNER  MAICD (Deputy Chairman) 
Director since 1998

BRENDAN P. CROTTY  LS; DQIT; Dip.Bus Admin; MAPI; FAICD; FRICS 
Director since 2008

DAVID N. GILHAM  FCILT; FAIM; FAICD 
Director since 2003

THE HON. ROBERT J. WEBSTER  MAICD; MAIM; JP 
Director since 2001

MANAGING DIRECTOR: 

LINDSAY R. PARTRIDGE  AM; BSc. Hons.Ceramic Eng; SFCDA; Dip.CD
Joined the Company 1985. Director since 2000

CHIEF FINANCIAL OFFICER: 

ALEXANDER J. PAYNE  B.Comm; Dip CM; FCPA; FCIS; FCSA; JP
Joined the Company in 1985

COMPANY SECRETARY: 

IAIN H. THOMPSON  B.Ec; CA; Grad Dip CSP; FCIS; FCSA
Joined the Company in 1996

AUDITORS: 

ERNST & YOUNG

BANKERS: 

NATIONAL AUSTRALIA BANK

SHARE REGISTER: 

COMPUTERSHARE INVESTOR SERVICES PTY. LIMITED
GPO Box 7045 
Sydney NSW 2001 
Telephone: 1800 269 981 
Facsimile:   (02) 8234 5050

PRINCIPAL 
ADMINISTRATIVE 
OFFICE: 

738 - 780 Wallgrove Road
Horsley Park NSW 2175
Telephone: (02) 9830 7800
Facsimile:   (02) 9620 1328

1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BRICKWORKS LIMITED

A.B.N. 17 000 028 526

DIRECTORS’ REPORT

The Directors of Brickworks Limited present their report and the financial report of Brickworks Limited and its 
controlled entities (referred to as the Brickworks Group or the Group) for the financial year ended 31 July 2012.

Directors
The names of the Directors in office at any time during or since the end of the year are:

Robert D. Millner  FAICD (Chairman)

Michael J. Millner  MAICD (Deputy Chairman)

Lindsay R. Partridge  AM; BSc. Hons. Ceramic Eng; SFCDA; Dip. CD (Managing Director)

Brendan P. Crotty  LS; DQIT; Dip.Bus Admin; MAPI; FAICD; FRICS

David N. Gilham  FCILT; FAIM; FAICD

The Hon. Robert J. Webster  MAICD; MAIM; JP

All Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Principal activities
The  principal  activities  of  the  Brickworks  Group  during  the  year  were  the  manufacture  of  building  products, 
property realisation and investment.

Result of operations
The consolidated net profit for the year ended 31 July 2012 of the Brickworks Group after income tax expense, 
amounted to $43,304,000 compared with $142,551,000 for the previous year.

Dividends
The Directors recommend that the following final dividend be declared:

Ordinary shareholders – 27.0 cents per share (fully franked)

Dividends paid during the year under review were:

(a) 

 Final ordinary of 27.0 cents per share (fully franked) out of profits for the year ended 31 July 2011 and 
referred to in the previous Directors’ report;

(b) 

Interim ordinary of 13.5 cents per share (fully franked) paid 15 May 2012

REVIEW OF OPERATIONS

Highlights1
• 

Brickworks normalised NPAT before significant items down 21.8% to $78.9 million

◦ 

◦ 

◦ 

Building Products EBIT down 32.1% to $28.5 million

Land and Development EBIT down 34.9% to $19.0 million

Investments EBIT down 0.3% to $67.7 million

• 

• 

• 

• 

Headline NPAT including significant items down 69.6% to $43.3 million

Goodwill impairment of $31.6 million within the Building Products Group

Net debt/capital employed of 14.7%, net debt $285.4 million

Final dividend of 27.0 cents fully franked

Overview
Brickworks (ASX: BKW) posted a normalised net profit after tax (‘NPAT’) for the year ended 31 July 2012 of 
$78.9 million, down 21.8% from $100.8 million for the year ended 31 July 2011. After significant items, Brickworks’ 
headline NPAT was $43.3 million, down 69.6% from $142.6 million in the previous year. 

Building Products earnings before interest, tax (‘EBIT’) and significant items was $28.5 million, down 32.1% on 
the prior year. EBIT in the second half was in line with the first half, despite a further deterioration in residential 
building activity. This was assisted by internal re-structuring activities and industry rationalisation.

Land and Development EBIT was down 34.9% to $19.0 million, as a result of a significant reduction in land 
sales. Earnings from the Property Trust were up 56.8% on the prior year. 

Investment EBIT was relatively flat at $67.7 million.

Interest cost increased by 2.0% to $20.8 million. In addition the mark to market valuation of interest rate swaps 
adversely impacted the result by $4.4 million.

The impact of significant items was a net expense of $35.6 million, including the cost of re-structuring activities 
and a goodwill impairment of $31.6 million.

1  Unless otherwise stated all earnings measures exclude significant items

2

 
 
 
 
 
 
 
Normal earnings per share (‘EPS’) were 53.4 cents, down from 68.3 cents per share for the prior year.

Directors have maintained the final dividend of 27.0 cents fully franked, taking the full year dividend to 40.5 cents 
fully franked, in line with last year.  

The  record  date  for  the  final  ordinary  dividend  will  be  8  November  2012,  with  payment  being  made  on  
29 November 2012.

Financial Analysis
Gearing (debt to equity) was 18.0% at 31 July 2012, relatively flat compared to 17.9% at 31 July 2011. Total 
interest bearing debt (‘TIBD’) was $300.0 million and Net Debt was $285.4 million at 31 July 2012. Net debt to 
capital employed rose to 14.7% from 13.0% the previous year on a $36.1 million reduction in cash holdings.

Brickworks has a working capital facility of $100.0 million that provides head room in the current unstable financial 
markets for additional financial capacity should an acquisition opportunity arise. 

Total borrowing costs were $25.2 million, including the loss in mark to market valuation of interest rate swaps 
of $4.4 million and interest costs of $20.8 million. Interest cover decreased to 5.2 times at 31 July 2012, down 
from 6.4 times at 31 July 2011.

Total net cash flow from operating activities was $64.5 million, down from $89.0 million in the previous year. This 
was a result of decreased trading revenue from the Building Products business, reduced special dividends from 
WHSP and no proceeds from land sales. 

Dividends of 40.5 cents per share, totalling $59.8 million were paid during the year, in line with the previous 
corresponding period.

Capital expenditure decreased to $28.9 million in the year ended 31 July 2012, excluding acquisitions. Stay in 
business capital expenditure was $14.3 million, representing 57.7% of depreciation.  Growth capital expenditure 
was $13.8 million, including the batching plant for the Wetherill Park precast facility in New South Wales and final 
building work on the new Wollert West plant in Victoria. 

Spending  on  acquisitions  totalled  $19.9  million  for  the  year,  comprising  Gunns’  Western  Australian  Jarrah 
assets, Boral Masonry’s operation in Cairns, the remaining 50% share of Daniel Robertson Australia Pty Ltd and 
a small independent precast concrete business in Brisbane.

Working capital, excluding assets held for resale, decreased by $43.1 million to $160.7 million, primarily due to 
a reduction in cash assets. 

Finished goods inventory increased by $6.5 million to $122.0 million during the year, including $5.5 million related 
to acquisitions over the period. Work in progress increased by $3.3 million, primarily due to the requirement to 
rebuild feedstock levels at the acquired Auswest Timbers operations. 

Net tangible assets (‘NTA’) per share remained relatively flat at $9.44 and Total Shareholders’ Equity decreased 
$13.1 million to $1.663 billion.

Normal tax expense decreased 56.4% to $4.4 million during the year, on reduced Group EBIT.

Significant  items  reduced  NPAT  by  $35.6  million  for  the  full  year,  with  significant  restructuring  activities 
undertaken in Austral Bricks’ Victorian, Queensland and Western Australian operations. 

A non-cash goodwill impairment of $31.6 million is included in significant items, following a detailed bottom-up 
analysis of future cash flow forecasts across each division, incorporating conservative management projections. 
An impairment is deemed prudent due to the depressed state of residential building activity and the prospect of 
a slow recovery in future years. 

The  goodwill  impairment  includes  $16.9  million  in  the  Austral  Bricks  Western  Australian  division,  where  a 
significant  new  competitor,  closure  of  manufacturing  facilities  and  an  inability  to  immediately  recover  the  full 
impact of the carbon tax has resulted in reduced earnings forecasts. An additional $11.2 million impairment has 
been taken in the Austral Masonry division, where industry profitability has been impacted by excess capacity 
and extremely depressed conditions in South East Queensland.

A breakdown of significant items is shown in the following table.

Significant Items ($m)2

Tax adjustment for the carrying value of WHSP

Significant transactions by WHSP, after tax

Austral Bricks Victoria restructuring

Austral Bricks Queensland restructuring

Austral Bricks Western Australia restructuring

Other businesses restructuring costs

Business acquisition costs

Corporate project costs

Impairment of goodwill in the Building Products Group

TOTAL 

Gross

-

0.8

(8.8)

(5.2)

(5.5)

(2.5)

(1.9)

(1.3)

(31.6)

(56.1)

Tax

13.0

-

2.6

1.5

1.7

0.7

0.6

0.4

-

20.6

Net

13.0

0.8

(6.2)

(3.6)

(3.9)

(1.7)

(1.4)

(0.9)

(31.6)

(35.6)

2  “Other business restructuring costs” and “business acquisition” costs relate to the Building Products Group

3

Brickworks’ Building Products Group

Market conditions 3 
Dwelling 
Commencements 

12 Mths to 
June 11

12 Mths to June 12

Variance % 
(Compared to prior year)

Total

Detached Other Res

Total

Detached Other Res

Total

New South Wales

Queensland

Victoria

Western Australia

South Australia

Tasmania

ACT

30,949

26,683

59,171

20,817

10,559

2,998

5,105

15,102

13,718 

29,155

17,340

8,851 

26,311

(2.5)

0.2

(8.9)

(5.3)

29,781

19,569 

49,767

(14.6)

(17.8)

14,529

2,966 

17,548

(14.1)

(22.6)

6,687

1,692

1,671

1,980 

482 

8,688

2,197

(16.5)

(20.3)

(21.6)

(39.1)

2,738 

4,420

(10.6)

(15.1)

Total Australia

157,540

87,463

50,895

139,349

(9.9)

(14.2)

New Zealand4

13,539

13,883

1,564

15,447

10.8

54.4

(5.8)

(1.4)

(15.9)

(15.7)

(17.7)

(26.7)

(13.4)

(11.5)

12.0

Total dwelling commencements for Australia were down 11.5% to 139,349 for the twelve months ended 30 June 
2012, from 157,540 in the previous year. Detached houses were down 9.9% and other residential developments 
were  down  14.2%  on  the  12  months  ended  30  June  2011.  The  decline  accelerated  in  the  second  half,  with 
commencements for the six months to June 30 2012 of 64,026. At an annualised level of around 128,000, this is 
approaching historical cyclical low points over the past thirty years.

The  annual  decline  was  consistent  across  all  regions,  with  each  state  experiencing  a  decline  in  dwelling 
commencements compared to the prior year.

New South Wales experienced a 5.8% decrease in total dwelling commencements to 29,155, driven by a 8.9% 
reduction in other residential dwellings and a 2.5% reduction in detached houses. The level of residential building 
activity remains significantly below the longer term average. 

Queensland continues to experience declines in residential building activity, with total annualised commencements 
now at the lowest level since June 2001. A decline of 5.3% in other residential activity and flat detached house 
commencements resulted in only 26,311 commencements for the year.

Victoria  suffered  a  major  decline  in  housing  activity,  albeit  from  a  record  high  in  the  previous  corresponding 
year. Commencements of 49,767 was down 15.9%, with the decline particularly severe in the other residential 
segment, down 17.8%.

Following another decline, Western Australia housing commencements of 17,548 for the year ended 30 June 
2012, are now at a ten year low. Detached housing commencements were down 14.1% and other residential 
commencements were down 22.6% compared to the prior year.

In  light  of  record  population  growth  since  2006  and  low  vacancy  rates  across  most  major  capitals,  the  slow 
response to the Reserve Banks’ move to expansionary monetary policy, commencing in November 2011, is a 
concern. It is revealing to note that the 1:1 relationship that previously existed between total employment growth 
and commencements has shifted to a 1:1 relationship between full-time employment growth and commencements 
since 2006. Furthermore, the latest census data reveals household occupancy has increased, albeit marginally, 
for the first time. 

These trends support the view that consumers appear to be stuck in an extended period of pessimism5, with the 
impact on housing investment perhaps accentuated by tighter lending criteria by banks since the Global Financial 
Crisis.

The value of approvals in the non residential sector in Australia increased by 11.3% to $32.499 billion for the 
twelve months to 31 July 2012, compared to the prior year. Within the non residential sector, Commercial building 
approvals decreased by 1.0% to $10.736 billion for the period and Industrial building approvals decreased 3.6% 
to $3.656 billion. The Educational sub-sector, an important driver for bricks and masonry demand, was down 
23.1% to $4.133 billion, as the prior year included the tail end of the BER Program. The primary area of growth 
was the Healthcare sub-sector, up 81.0% to $5.867 billion for the twelve months to 31 July 2012.

The New Zealand housing market is emerging from record low levels, with consents up 12.0% for the year to 30 
June 2012. However total consents of 15,447 remain well below the historical average.

Building Products’ Results in Detail
Revenue for the year ended 31 July 2012 was down 9.5% to $547.6 million compared to $604.9 million for the 
prior year. 

EBIT was $28.5 million, down 32.1% on the prior year. EBIT in the second half of $14.1 million was approximately 
in line with the first half EBIT of $14.4 million, despite the significant decrease in residential commencements. 

3  Original data sourced from ABS Cat. 87500.0 Dwelling Unit Commencements, Australia, Preliminary, June 2012. Total data 

within table includes conversions.

4  Building Consents data sourced from Statistics New Zealand – Building Consents. Data shown is for the year to June 30.
5  The Westpac Melbourne Institute index of Consumer Confidence was 98.2 in September 2012, the seventh consecutive 
month below 100, the longest run of “sub 100” points since the early 1990’s, excluding the Global Financial Crisis period

4

 
The  second  half  performance  in  extremely  subdued  conditions,  is  a  reflection  of  the  restructuring  activities 
completed  during  the  year.  These  initiatives  include  substantial  reductions  in  staff  levels  and  manufacturing 
capacity in New South Wales, Victoria, Queensland and Western Australian brick operations.

Over  the  year,  the  majority  of  the  EBIT  decline  was  attributable  to  two  key  divisions, Austral  Bricks  Western 
Australia  and  Austral  Bricks  Victoria.  Austral  Bricks  Western  Australia  continues  to  face  very  challenging 
conditions  with  a  further  deterioration  of  market  activity  and  the  increased  competition  in  this  market. Austral 
Bricks Victoria earnings were well down on the prior year due to the decline in market activity and interruptions 
related to the integration of the new Wollert plant.  

The lower EBIT to Sales Margin was impacted by higher unit production costs as intermittent and extended 
shutdowns  throughout  the  period  adversely  affected  plant  efficiency.  Rising  unit  input  costs  such  as  gas  and 
electricity  placed  additional  pressure  on  margins,  particularly  in  the Austral  Bricks  division.  In  most  divisions, 
price increases were unable to fully offset the impact of rising costs, including the carbon tax.

The Building Products Group continues to evolve into a more diversified national building products business. 
Acquisitions in Auswest Timbers, Masonry and Precast, resulted in these divisions contributing 29.5% of total 
Building Products revenue for the year to 31 July 2012, up from 24.3% in the prior year. Over the long term this 
strategy will reduce exposure to the detached house building cycle, through decreased reliance on the traditional 
Austral Bricks and Bristile Roofing divisions. 

Total  Employee  numbers  were  increased  by  15  over  the  year,  however  with  an  additional  107  employees 
joining the business due to acquisitions, a total of 92 staff, representing 6.6% of the workforce, left the business. 
This reduction in employee levels reflects the restructuring activities previously announced. In the second half, 
employee numbers in Austral Bricks Victoria increased as contractors were converted to full-time employees at 
Wollert, ahead of full speed production at this site. It was encouraging to note another year free from industrial 
disputes. 

Brickworks’ commitment to providing a safe workplace has seen Lost Time Injuries (LTI’s) decrease to a record 
low of 8 for the year ended 31 July 2012. The Total Reportable Injury Frequency Rate (‘TRIFR’) decreased 
to 180.5 from 216.1 for the prior year. A particular focus for the Group is the roll-out of best practice national 
standard occupational health and safety procedures to improve standards across all operations. 

Divisional Analysis
Austral Bricks result was significantly lower than the previous year as market conditions continued to deteriorate. 
Overall sales revenue for the year ended 31 July 2012 was $281.0 million, down 14.8% compared to the prior 
year, with most states suffering declines in line with reduced building activity.

The rising prices of gas and electricity has become a significant impost on the manufacturing cost of clay 
bricks. Including the impact of the carbon tax, Austral Bricks have experienced a doubling of gas prices since 
financial year 2008. Over the same period electricity prices have increased by around 70%. Gas and electricity 
prices combined now account for over 20% of the total manufacturing cost of clay bricks, up from around 15% 
in 2008.

The price of gas is expected to continue to increase substantially, particularly on the East Coast as increased 
export opportunities are made available for local LNG suppliers. Brickworks has a strong track record in reducing 
gas consumption, with investment in modern, energy efficient plants and product re-engineering initiatives placing 
it in relatively strong position compared to competitors to deal with the impact of rising prices. 

To further decrease gas consumption Brickworks will implement a number of alternative fuel projects over the 
coming years. These projects will directly substitute the use of gas with alternative, low cost fuel sources such 
as  landfill  gas,  sawdust  and  commercial  and  industrial  waste  streams.  A  number  of  these  projects  are  well 
advanced, with implementation of planned projects forecast to partially offset the impact of gas price increases.

Restructuring activities have been completed across a number of states. Full speed production at Wollert West 
in Victoria, planned for the coming months, will mark the completion of a seven year business transition that has 
seen the closure of old, inefficient kilns at Scoresby, Summerhill and Craigieburn. The investment in new state of 
the art kilns on one site at Wollert places Austral Bricks Victoria in an excellent long term position. 

In Queensland, the Riverview plant was closed and operations were consolidated to the more robust and flexible 
plant at Rochedale, whilst in Western Australia, Plant 3 at Cardup ceased operations in response to the structural 
changes in that market. The closure of Cardup and transfer of volume to the more modern Malaga manufacturing 
plant will increase the utilisation and efficiency of this operation. Once stock is depleted at Cardup, the reduced 
manufacturing  footprint  comprising  Bellevue,  Armadale  and  Malaga  will  provide  a  sustainable,  efficient  and 
appropriately sized manufacturing operation that will enhance returns in the Western Australian brick business.

During the year, significant one-off costs were incurred as a result of these restructuring activities. In Victoria 
these costs included the closure of Craigieburn, the remediation of Summerhill land and the commissioning of the 
new Wollert West kiln. There were significant redundancy and write-off costs in Austral Bricks Queensland and 
Western Australia due to the closure of the Riverview and Cardup plants respectively. 

In addition to the capacity reduction by Austral Bricks, continued rationalisation of plant capacity by competitors 
provides some encouragement for an improved industry structure moving forward. The total capacity removed 
from  service  since  2009  now  stands  at  an  estimated  570  million  standard  brick  equivalents  (SBE).  In  most 
states industry capacity is now more closely matched with long term supply requirements and this should drive 
improved manufacturing efficiencies and increased earnings across the cycle.

Some progress was made in achieving selling price increases, up 4.0% compared to the prior year, however 
these were insufficient to cover the impact of the manufacturing slowdown and input cost increases. Most states 
have successfully implemented price rises, effective from 1 July 2012 with further increases planned throughout 
the year in an attempt to ensure that margins are not eroded as a result of rising gas prices and other input cost 
pressures, including the carbon tax. 

Austral  Bricks  continues  to  focus  on  developing  fashionable  and  market  leading  products  to  attract  premium 
prices and consolidate the strong position that bricks hold as the material of choice in detached house walling. 

5

Examples of this include the launch of product ranges such as Ultrasmooth in New South Wales, Metallix, Reveal 
and Luxe in Queensland and Colossus and Ceres in South Australia. In addition, the Daniel Robertson premium 
brick brand was successfully integrated into the Building Products portfolio in March 2012.

These initiatives have contributed to the strong trend back to face brick, as evidenced by face brick featuring in 
85% of the 330 display homes built over the last two years in New South Wales, with Austral Bricks securing over 
50% of all new display homes in that state. The renaissance of face brick is particularly encouraging for Austral 
Bricks  as  these  products  deliver  higher  margins  than  general  purpose  commons  used  for  rendering,  and  the 
differentiated look and low maintenance finish combats the threat of alternative products. 

Although clay brick continues to uphold its’ dominant share of detached house walling, challenges remain in the 
multi-residential segment where market share of clay brick has been eroded over many years at the expense of 
alternatives such as precast concrete and lightweight inter-tenancy walling solutions. Encouragingly, face brick 
has maintained a strong presence in the lower storeys of high rise apartment developments, as part of the overall 
trend towards a low maintenance composite look.

New South Wales had a relatively strong year, with sales revenue stable compared to the prior year. Earnings 
were adversely impacted by lower volumes and extended plant shutdowns to reduce stock levels although strong 
price increases were able to offset  these impacts to some extent. The three year retail upgrade strategy is now 
almost complete with the display centre at Beresfield opening early in financial year 2013. 

Queensland delivered a negative contribution for the year, although performance improved significantly in the 
second half following the closure of the Riverview plant in January 2012. Significantly improved pricing outcomes 
were  achieved,  however  required  increases  remain  challenging,  compromised  by  strong  competition  in  the 
market.

Victoria  had  a  particularly  challenging  year,  as  market  activity  declined  sharply  from  the  record  high  level  of 
the previous year. Volume was also impacted as a result of interruptions in the integration of the new Wollert 
West plant. Commissioning of the new plant is now nearing completion, including the successful transition of 
the product range. An enhanced pressed brick product offering and the ramp up to full speed of the new kiln will 
significantly enhance the performance of Austral Bricks Victoria.  

Western Australia suffered a significant fall in sales volume and profits as a result of the poor market conditions. 
In the last quarter in particular, changes to the Western Australian Building Act caused a significant reduction 
in  residential  approvals  and Austral  Bricks  sales  volume.  These  changes  have  meant  that  a  strong  increase 
in  house  sales  has  not  yet  been  reflected  in  approvals  data.  Furthermore,  strong  competition  in  this  market 
compromised the ability of the business to achieve target price increases, although progress has been made 
with major builders. 

South Australia earnings were down on the prior period, with significantly lower volumes in line with market 
activity. Price growth of 5.4% compared to the prior year was unable to fully offset the impact of reduced volumes 
on manufacturing costs.

Tasmania  delivered  a  lower  EBIT  result,  on  the  back  of  lower  sales  revenue,  down  15.0%. The  exit  of  K&D 
Bricks from the Tasmanian market, announced in February, leaves Austral as the only remaining locally based 
manufacturer. Since the announcement, initiatives have been implemented to increase plant output to meet the 
expected increase in demand going forward. 

New  Zealand  delivered  a  substantially  improved  result,  driven  by  the  uplift  in  building  activity  and  increased 
market share. Results in the second half were particularly encouraging, with a strong position in the South Island 
allowing it to benefit from the Christchurch re-build. 

Bristile Roofing earnings were down on the prior year, largely as a result of a decline in sales revenue of 15.7%, 
to $104.4 million. The exit of a major competitor in Queensland provided a significant boost to sales volume in 
that state.

The Western Australian business delivered a marginally improved result compared to the prior year despite the 
significant fall in housing starts, due to a re-structure of plant operations completed in the first half.

In July 2012 Bristile Roofing was appointed as an exclusive distributor for Spanish manufacturer La Escandella, 
to supply a premium range of terracotta tiles into the Australian and New Zealand market. On the East Coast, 
the  La  Escandella  products  will  compliment  the  locally  manufactured  range  and  provides  the  business  with 
significant growth opportunities at the higher margin premium end of the market. 

In  Western Australia  the  La  Escandella  relationship  will  facilitate  a  transition  to  imported  roof  tiles  from  local 
production. This transition is economical as a result of favourable exchange rates and the escalating costs of 
local terracotta rooftile manufacture. Local production costs have become uncompetitive due to the limitations of 
the Caversham plant, poor volumes and the sharp increase of gas and electricity price increases, exacerbated 
by the impost of the carbon tax.

Austral Masonry total sales revenue was down 3.3% to $53.4 million, primarily as a result of decreased volume. 
After a solid first half result, sales volume declined in the second half as wet weather and strong competition 
impacted deliveries along the East Coast.

The acquisition of the Cairns operation in March has enhanced Austral Masonry’s position in Far North Queensland 
and together with the existing plant in Ayr, just south of Townsville, places the business in a leading position in this 
not only growing region, but dominant concrete block market.

Austral  Masonry  continues  to  expand  its’  product  range,  with  the  development  of  new  products  such  as 
Magnumstone and Cornerestone allowing growth into the engineered retaining wall market. 

Austral Precast delivered another increase in earnings on the back of a solid increase in sales revenue, up 
20.3% to $68.1 million. 

On the East Coast, the installation of a batching plant at the Wetherill Park in Sydney, enabling 24 hour operation, 
is nearing completion. This will allow the rationalisation of the current manufacturing footprint and further enhance 
manufacturing efficiencies.

6

In  Queensland,  the  acquisition  of  an  independent  operator  in  March  2012  will  deliver  additional  scale  and 
manufacturing efficiencies following the consolidation of operations to one site in August.

Following a loss in the prior year, the Western Australian operation posted a positive result, on the back of solid 
price  increases,  together  with  improved  manufacturing  efficiencies  resulting  from  plant  upgrades  and  strong 
volume increases.

Auswest Timbers domestic sales revenue was up 12.4% on the prior year to $40.6 million, and earnings were 
up 29.4%, due in part to the integration of acquired operations in Western Australia. However export earnings 
were significantly lower than the prior year as the high Australian dollar adversely impacted demand from Asia.

The  contribution  from  acquired  assets  in  Western Australia  was  supported  by  another  solid  contribution  from 
the roof tile batten operation in Fyshwick, where strong cost controls alleviated the impact of lower throughput 
caused by the current weakness in detached house construction activity. 

Working capital was impacted by the requirement to re-build feedstock levels in the acquired Gunns business 
in Western Australia. Despite the short term impact of this stock re-build process, the substantial synergies that 
this  acquisition  brings  to  the Auswest  operations  in  the  Pemberton  and  Manjimup  region  delivered  improved 
manufacturing efficiencies in the second half. 

A long term log license agreement is in place in Western Australia, placing operations in that state in a secure 
position. However uncertainty remains over log supply for the Orbost mill in Victoria, with a final decision from 
VicForests on future supply arrangements in that state yet to be announced.

Land and Development
Land and Development produced an EBIT of $19.0 million for the year ended 31 July 2012, down 34.9% from 
$29.2 million in the prior year.

Property Sales were limited, contributing an EBIT of $0.7 million for the year, with the largest transaction being 
the sale of two hectares at the M7 Business Hub, Eastern Creek into the Property Trust to accommodate the 
expansion of the existing Toll facility.

The Property Trust generated an EBIT of $19.6 million, up from $12.5 million in the year ended 31 July 2011.  

Net property income distributed from the Trust was $9.0 million for the year, up 26.8% on the prior year due to 
rental  reviews,  two  new  DHL  facilities  at  Oakdale  and  the  extension  of  the  existing  Linfox  facility  at  Interlink, 
Erskine Park. 

The revaluation profit of stabilised Trust assets totalled $5.3 million, up from $4.7 million in the previous year on 
flat capitalisation rates and increased income.

An EBIT of $4.5 million was contributed through the recognition of unrealised profit on the completion of two new 
DHL facilities on the Oakdale Estate. In addition, $0.8 million was contributed through the sale, above book value, 
of two vacant lots from the Heritage Trust. 

The total value of the Property Trust assets as at 31 July 2012 was $655.4 million, with borrowings of $286.4 
million, giving a total net value of $369.0 million.  Brickworks share of the Trust’s net asset value was $184.5 
million up $0.5 million from $184.0 million at 31 July 2011. Revaluation uplift was offset by the sale of Lot 3 and 
Lot 5 from the Heritage Trust resulting in a capital distribution to Brickworks.

During the year, financing arrangements for the Trust were restructured and diversified, with significant headroom 
made available to fund additional growth opportunities.  

Waste Management contributed a profit of $2.5 million from operations at Horsley Park in New South Wales, in 
line with the previous corresponding period.

Property administration expenses totalled $3.8 million for the year to 31 July 2012, significantly higher than the 
prior year due primarily to increased land tax on the remaining Oakdale property, due to its favourable zoning.

Investments
The EBIT from total investments was down 0.3% to $67.7 million in the year ended 31 July 2012.

Washington H. Soul Pattinson Limited (‘WHSP’) ASX Code: SOL

The normalised profit from this investment was $66.6 million for the year, up marginally from $66.2 million in the 
year ended 31 July 2011.

The market value of Brickworks 42.72% shareholding in WHSP was $1.345 billion at 31 July 2012, up 1.7% on 
the value at 31 July 2011.  This investment continues to provide diversity and stability to earnings, with cash 
dividends totalling $42.9 million received during the year.

WHSP  has  delivered  outstanding  returns  over  the  short,  medium  and  long  term,  outperforming  the ASX All 
Ordinaries Accumulation Index by 12.4% p.a. over five years, 6.6% p.a. over ten years and 3.8% p.a. over fifteen 
years.

WHSP maintains a substantial investment portfolio in a number of listed companies including significant holdings 
in  Brickworks,  New  Hope  Corporation,  TPG  Telecom  Limited,  API,  Clover,  Ruralco  Holdings,  Copper  Chem 
Limited and Souls Private Equity.

Items since Balance Date
On  1 August  a  fire  at Auswest Timbers’  Deanmill  facility  in  Western Australia  destroyed  some  of  the  product 
transfer infrastructure in part of the mill. Jarrah production has been temporarily transferred to Pemberton, whilst 
repair work is carried out at Deanmill. It is anticipated that Deanmill will return to production by Christmas.

On 15 August a fire in the new clay mill at Wollert resulted in a temporary slow down of production, with clay 
grinding shifted to the less efficient old mill. Repair work is now complete, following a round the clock effort by 
the Major Projects team to rebuild the mill and return it to full production on Saturday 15th September, exactly 
one month after the fire.

7

Whilst the Deanmill and Wollert fires are fully covered by insurance policies, additional measures and precautions 
are being instituted across all sites to reduce the likelihood of future fires.

Brickworks have signed a Heads of Agreement with CSR Building Products (NZ) Limited, outlining an intention 
to  establish  a  Joint  Venture  arrangement  for  the  sale  and  distribution  of  bricks  in  the  New  Zealand  market. 
A  submission  to  the  New  Zealand  Commerce  Commission  was  lodged  on  Monday  3rd  September  seeking 
approval for the Joint Venture. 

Outlook
Building Products Group

Barring any unforseen external shocks, the latest forward indicators of housing activity indicate that we may be 
close to the bottom of the residential building cycle. However the recovery in building activity is likely to be patchy 
over the next twelve months with weak full-time employment growth, low confidence and poor affordability likely 
to eliminate any impact of cash rate reductions by the Reserve Bank of Australia. Furthermore, varying state 
government policies are expected to drive diverging outcomes across the major states. 

The  New  South  Wales  government  has  taken  unprecedented  measures  to  revive  building  activity  with  extra 
resources made available to deal with development applications, and funds committed to build roads, sewerage 
and other infrastructure for new housing sites. The increase in the First Home Owners Grant from October 1, for 
properties up to $650,000 will also strongly assist. 

The Victorian government on the other hand has cut the first home owners grant at a time when that state is in the 
midst of a significant decline in activity, albeit from record high levels. This is likely to result in a further decrease 
in demand, despite the release of significant parcels of land for development.

In Western Australia, a backlog of activity caused by changes to the Building Act in mid 2012, forecast robust 
employment growth and low vacancy rates support anecdotal evidence of a strong recovery in that state. 

In Queensland, an increase in activity in the first half is expected as projects signed up prior to the expiry of the 
Building Boost grant on 30th April 2012 flow through. This work will be largely completed by December 2012. 
The government has now announced a new incentive for first home buyers, available from October 1, that should 
support building activity in the second half.  

On balance, Brickworks anticipates a total of around 140,000 residential commencements for the year ending 
31 July 2013, marginally up on the prior year, with increased activity in New South Wales and Western Australia 
likely to be offset by continuing declines in Victoria. 

The outlook for the New Zealand market is positive, with the strong increase in building activity in the past six 
months expected to continue in the 2013 financial year, assisted by the Christchurch rebuild gathering momentum. 

The majority of internal restructuring activities within the Building Products Group has now been completed, with 
all businesses now focussed on improving profitability with existing resources, and fully recovering cost imposts.

Land and Development 

Two major Property Trust developments are currently under construction and due for completion in late calendar 
2012. This comprises the Reedy Creek development on the M7 Business Hub in Sydney and Interlink, at Erskine 
Park in Sydney. The conclusion of these projects will provide additional rental returns and capital growth for the 
Property Trust. 

The demand for new site developments is improving from a weak base across the broader market. DHL has  
pre-commited to a new 20,000m2 facility at Oakdale in Sydney (DHL’s third facility on this estate). Toll Holdings 
has also pre-committed to a 6,000m2 expansion to its existing facility on the M7 Business Hub. Both of these 
projects are due for completion mid calendar 2013. 

Land sales are expected to increase in the next twelve months with a strong pipeline of potential sales in place. 
Sales into the Property Trust during financial year 2013 are forecast to include a 60 hectare parcel of land at the 
Oakdale South site in Sydney and the first stage of the 30 hectare Rochedale site in Queensland, in both cases 
pending resolution of council and infrastructure issues.

In addition, following the closure of the Riverview brick operation in Queensland, the 12.2 hectare site will be 
developed, including refurbishment of the former factory building and the sub-division of vacant land, to occur in 
early calendar 2013. 

Looking further ahead, a 120 hectare lot at Oakdale West in Sydney is also under review by the Department of 
Planning, to be rezoned from industrial to residential. If successful, this would bring forward the development of 
this land as well as increase its value. A response is expected by late calendar 2012.  

Investments
The  outlook  for  the  Investments  Group  is  clouded  by  continued  volatility  in  global  investment  markets  and 
commodity pricing. However on balance, the diversified nature of WHSP’s investments should continue to deliver 
stable earnings to Brickworks. 

Brickworks Group

Building Products earnings are expected to recover in the 2013 financial year, following internal restructuring 
activities completed in 2012. In the medium term, industry rationalisation and improvements in building activity 
will provide additional impetus to Building Products earnings. 

A significant increase in land sales is also expected to boost earnings, whilst Investment earnings are expected 
to remain stable.

Significant changes in state of affairs

There were no significant changes in the state of affairs of the Brickworks Group during the year, other than those 
events referred to in the Review of Operations and the financial statements.

8

After balance date events

No matters or circumstances have arisen since the end of the financial year that have significantly affected the 
current financial year, or may significantly affect in subsequent financial years:

- the operations of the Brickworks Group;

- the results of those operations; or

- the state of affairs of the Brickworks Group.

Likely developments and expected results of operations

The review of operations gives an indication of likely developments and the expected results of operations in 
subsequent financial years.  Further information as to likely developments in the operations of the Group, and the 
expected results of those operations in subsequent financial years, has not been included in this report because 
inclusion of such information would be likely to result in unreasonable prejudice to the Group.

Safety

“There is no task that we undertake that is so important that we can’t take the time to find a safe way to do it”.

Brickworks are committed to the health and safety of its employees, contractors and general public.  A Brickworks 
core value is that “We don’t want to make a profit by hurting anybody” and earnestly believe that all injuries are 
preventable.  A safety culture is crucial to our operation’s ongoing OH&S performance.

The  board  of  Directors  and  Senior  Managers  are  fully  aware  of  their  responsibilities  in  the  management  of 
Occupational Health and Safety.  The Managing Director is briefed weekly on OH&S matters and performance by 
the Divisional General Managers and issued a full report at the end of each month.  An OH&S report is presented 
to the Board and is an agenda item discussed at each Board meeting.

Brickworks have developed robust OH&S management systems, complying with all relevant Australian standards 
and legal obligations.  These systems are designed to meet the needs of its employees, contractors and general 
public, and are in a class that ably support the Workers Compensation self insurance models operating in New 
South Wales, Victoria and Western Australia divisions.

Brickworks  reviews  safety  performance  at  all  levels  of  the  business,  with  a  view  to  continuous  improvement.  
Various management and supervisory levels are given responsibilities for safety performance, with relevant staff 
being held accountable for this.

The  Group  consolidated  its  safety  performance  over  this  last  year,  with  half  its  divisions  not  having  recorded 
a  lost  time  injury.   The  lost  time  injury  frequency  rate  (LTIFR)  was  2.99  injuries  per  million  hours  worked,  an 
improvement on last year’s 3.46 and our best result.  The number of medical treatments recorded also reduced 
by 14.2% year on year.  Whilst these results are pleasing, and reflect the sustained commitment of all Brickworks 
personnel to safety issues, there is still further room for improvement, with our ultimate goal being no workplace 
injuries.

The standardisation of the OH&S management systems nationally is progressing well, with gap analysis being 
performed  to  identify  the  level  of  compliance.    External  audits  are  also  conducted  to  ensure  the  system  and 
meets all relevant legislative requirements.

The Environment
The Brickworks Group understands and accepts its responsibility for environmental protection which is integral to 
the conduct of its commercial operations.  Brickworks’ objective is to comply with all applicable environmental laws 
and regulations and community standards in a commercially effective way.  We are committed to encouraging 
concern  and  respect  for  the  environment  and  emphasising  every  employee’s  responsibility  for  environmental 
performance.  During the year, in excess of $1.5 million was spent on capital projects aimed at improving our 
environmental performance or rehabilitating operational sites.

In addition, the new Wollert West factory, a $65.0 million state of the art manufacturing facility was commissioned, 
replacing two older manufacturing facilities, resulting in substantial energy and emission improvements. When 
fully operational, overall energy consumption and greenhouse gas emissions are expected to reduce by over 
60% at Austral Bricks Victorian operations.

The Government legislated a price on carbon with a commencement date of 1 July 2012 via the introduction 
of a Carbon Tax.  The price has been set at $23 per tonne of carbon dioxide for the first year of the scheme. 
Again preparing the company for the carbon constrained future has been a critical issue facing Brickworks this 
year. Unlike most energy intensive businesses, Brickworks will not receive compensation under the legislation. 
However some of its more emissions intensive competitors such as the steel, cement and glass industries will 
receive  94.5%  of  their  carbon  permits  for  free,  distorting  the  market  towards  higher  emissions  products. As 
all commercial operations, Brickworks intends to fully offset the increased costs associated with operating the 
business through product price rises.

In preparing for the price on carbon, managing energy use, emissions and associated costs have been integral to 
our operations and reducing the impact of the Carbon tax. Brickworks has two facilities with emissions expected 
to exceed the 25kT CO2e threshold which will be directly liable under the scheme, namely Wollert (Austral Bricks 
Vic)  and  Plant  3  (Austral  Bricks  NSW).  These  facilities  will  be  required  to  surrender  permits  at  $23  for  each 
tonne of CO2e emitted.  All remaining facilities which are below the threshold will have the cost of carbon passed 
through by their suppliers.

Being a large natural gas consumer, Brickworks successfully applied for and received an Obligation Transfer 
Number  (OTN)  from  the  Clean  Energy  Regulator.  The  OTN  provides  Brickworks  with  cashflow  incentive  by 
enabling Brickworks to manage the impact of the Carbon Tax on its consumption of natural gas, and surrender its 
obligation in February 2014 for the first year of the Carbon Tax, rather than receive the pass through costs each 
month on its Natural Gas Bills at $1.18/GJ commencing on the 1st July 2012.

Through the collection of revenue under the carbon tax, the Government has introduced a number of grants aimed 
at assisting organisation in implementing energy efficiency projects and reducing greenhouse gas emissions. 

9

 
 
 
Brickworks is preparing to take advantage of these opportunities, and as of the date of this report has already 
submitted one application for a fuel switching project that will reduce CO2 emissions by over 60,000t over a 10 
year period and reduce operating costs.

Brickworks  actively  participates  in  energy  efficiency  and  greenhouse  gas  reporting  schemes  which  have 
assisted in reducing costs, energy consumption, and greenhouse gas emissions. The programs have also led to 
measurable improvements of systems and processes for data capture and storage, measuring and calculating 
emissions and implementing energy saving initiatives. These programs include:

• 

• 

• 

• 

• 

 Energy  Efficiency  Opportunities  (EEO)  Act  2006  –  this  programme  encourages  large  energy  users  to 
implement management systems aimed at measuring and analysing energy usage within their plants and 
identifying and implementing energy reduction strategies. All of the largest Brickworks sites covering over 
90% of Brickworks total energy consumption have been assessed and had energy audits undertaken to 
Level 2 status.

 National Greenhouse and Energy Reporting (NGER) Act 2007 – this programme requires organisations 
to measure and report their energy consumption, production and greenhouse gas emissions under strict 
protocols. Brickworks has been measuring its energy consumption and emissions for some 15 years and 
this program has assisted Brickworks to streamline its processes for data capture, measuring, calculating 
and  reporting  energy  and  emissions. The  data  is  subsequently  collated  and  reported  monthly  to  Senior 
Management and the Board.

 National  Pollution  Inventory  (NPI)  –  The  NPI  provides  the  government,  community  and  industry  with 
information to substances and emissions estimates for 93 toxic substances. Brickworks have been fulfilling 
its mandatory reporting requirements under this scheme.

 Environment  and  Resource  Efficiency  Program  (EREP)  –  this  programme  was  established  by  the 
Environment  Protection Act  2006  (Victoria  only)  to  assist  the  state’s  largest  energy  and  water  users  to 
achieve  financial  benefits  by  assessing  their  resource  use  efficiency  (energy,  water  and  materials  use 
and waste generation). While many of the energy saving projects are already covered in Brickworks’ EEO 
submission, water and resource saving and waste reduction initiatives have also been committed to.

 Energy Saving Action Plans (ESAP) – this program is administered by the NSW Office of Environment & 
Heritage and requires large energy users in NSW to submit a detailed energy efficiency plan and subsequent 
annual progress reports.

Brickworks  are  a  Housing  Industry  Australia  (HIA)  Green  Smart  Leader  and  support  research  on  Thermal 
Performance  and  Life  Cycle  Analysis  of  Australian  Housing  in  association  with  the  University  of  Newcastle. 
Brickworks  has  been  actively  promoting  the  benefits  of  Bricks  over  lightweight  competing  products  since  the 
release of  a publication based on 8 years of research and development with the University of Newcastle which 
concluded  that  houses  built  with  Bricks  and  their  inherent  thermal  mass  properties  have  far  superior  energy 
efficiency performance compared to housing constructed from lighter weight materials.

Brickworks is subject to significant environmental regulation in respect of its clay building products manufacturing 
and associated activities as set out below.

The  Group  has  manufacturing  facilities  in  each  state  of Australia.    Each  site  holds  a  current  licence  and/or 
consent in consultation with the local environment protection authorities.  Annual returns were completed where 
required for each licence stating the level of compliance with site operating conditions.

Queensland  production  facilities  and  mining  leases  operate  and  are  licensed  under  the  Environmental 
Protection Act 1994 and Regulations.  Each site is regulated by Environmental Management Overview Strategy 
documentation or plans of operations.  Various approvals have also been obtained from Brisbane City Council 
relating to the operation of the concrete roof tile facility at Wacol.

New South Wales production facilities and mine areas are administered under the Protection of the Environment 
Operations Act 1997, which licences organisations and regulates the level of all discharges into the environment.  
Load  based  licensing  fees  are  determined  by  the  Environmental  Protection  Authority  based  on  the  level  of 
discharges.  The Environmental Planning and Assessment Act 1979 applies to the approval conditions of the 
group’s  activities.    Some  sites  also  operate  within  additional  requirements  imposed  by  local  government  and 
NSW Department of Primary Industries.

Victorian production sites are licensed under the EPA Act 1970, including various state environmental protection 
policies and regulations. Mining leases operate under the Extractive Industries Development Act 1995.

South Australian production facilities are licensed under the EPA Act 1993, while mining and rehabilitation plans 
are approved in accordance with Regulations under the Mines and Works Inspection Act 1920.

Western Australian operations operate under the Environmental Protection Act 1986. They have licences issued 
from a number of government agencies, including the Department of Environment and the Department of Mines 
and Petroleum.  A number of our sites also operate under additional requirements issued by local shires and 
councils.

Tasmanian operations and mining leases operate under the Environmental Protection Act of 1973.

Audit and assurance programs are an integral aspect of Brickworks environment management systems assisting 
in  measuring  performance  and  mitigating  environmental  risks. A  total  of  20  independent  annual  audits  were 
completed  this  year,  which  were  supplemented  by  internal  audits  carried  out  by  Brickworks  environmental 
personnel.  The  independent  environment  auditors  complete  an  environmental  compliance  audit  of  all  factory 
sites every two years whilst internal environmental managers audit the sites every other year.  The purpose of this 
is to ensure compliance with all current licences and regulations and identify risks of an adverse environmental 
event under any other relevant legislation.

During the year, results of our environmental management process indicated that some emissions were in excess 
of licence limits.  The Company has investigated all these non-compliances, working closely with the relevant 
authorities to resolve these issues.  There have been no prosecutions arising as a result of these.

10

Information on Directors

Robert D. Millner  FAICD 
Chairman
Mr R. Millner is the non-executive chairman of the Board.  He first joined the Board in 1997 and was appointed 
chairman in 1999.  Mr Millner has extensive corporate and investment experience.  He is the Chairman of the 
Remuneration Committee.

Other directorships:

Washington H. Soul Pattinson and Co. Ltd 

Director since 1984

New Hope Corporation Ltd 

TPG Telecom Ltd 

BKI Investment Company Ltd 

Milton Group 

Director since 1995

Director since 2000

Director since 2003

Director since 1998

Australian Pharmaceutical Industries Ltd 

Director since 2000

Souls Private Equity Ltd 

Appointed 2004, Resigned 2012

Michael J. Millner  MAICD 
Deputy Chairman
Mr M. Millner is a non-executive Director who was appointed to the Board in 1998.  He is a councillor of the Royal 
Agricultural Society of NSW, including Chair of the Cattle Committee and Chair elect of the RAS Foundation, 
and has extensive experience in the investment industry.  Mr Millner is the deputy chairman of the Board, and a 
member of the Audit and Risk Committee and the Remuneration Committee.

Other directorships:

Washington H. Soul Pattinson & Co Ltd 

Ruralco Holdings Ltd 

Director since 1997

Director since 2007

Lindsay R. Partridge  AM; BSc. Hons. Ceramic Eng; SFCDA; Dip CD 
Managing Director
Mr  Partridge  is  a  Ceramic  Engineer  who  worked  extensively  in  all  facets  of  the  industry  in Australia  and  the 
United States of America before joining The Austral Brick Company in 1985.  He held various senior management 
positions at Austral before being appointed Chief Executive Officer in 1999, and was subsequently appointed to 
the Board in 2000.  Since then, Brickworks has grown significantly in terms of size and profitability as its operations 
have become Australia-wide, with its product range extending beyond bricks to roof tiles, pavers, masonry and 
precast  concrete,  and  activities  expanding  into  property  development.    In  2008,  Mr  Partridge  completed  the 
Stanford University Executive Development Program.  Mr Partridge has also had extensive industry involvement, 
and  is  currently  a  director  of  various  industry  bodies,  including  the Australian  Brick  and  Blocklaying  Training 
Foundation, and the Clay Brick and Paver Institute (Think Brick Australia).  In 2012 he was awarded the Member 
of the Order of Australia for services to the Building and Construction Industry, particularly in the areas of industry 
training and career development, and to the community.  He is a director of Children’s Cancer Institute Australia.

Brendan P. Crotty  LS; DQIT; Dip.Bus Admin; MAPI; FAICD; FRICS 
Director
Mr Crotty was appointed to the Board in June 2008 and is a non-executive Director.  He brings extensive property 
industry  expertise  to  the  Board,  including  17  years  as  Managing  Director  of Australand  until  his  retirement  in 
2007.  He is a director of a number of other entities that are involved in the property sector, including Chairman 
of Western Sydney Parklands Trust and a director of Barangaroo Delivery Authority.  He is a Member of the Audit 
and Risk Committee and the Remuneration Committee.

Other directorships:

Australand Funds Management Ltd 

GPT Group 

Director since 2007

Director since 2009

David N. Gilham  FCILT; FAIM; FAICD 
Director
Mr  Gilham  was  appointed  to  the  Board  of  Brickworks  in  2003.    He  has  extensive  experience  in  the  building 
products and timber industries.  He was previously General Manager of the Building Products Division of Futuris 
Corporation and Managing Director of Bristile Ltd from 1997 until its acquisition by Brickworks in 2003, and has 
been involved with various timber companies.  He is a member of the Remuneration Committee.

The Hon. Robert J. Webster  MAICD; MAIM; JP 
Director
Mr Webster was appointed to the Board in 2001 and is a non-executive Director.  He is Senior Client Partner in 
Korn/Ferry International’s Sydney office.  He is the Chairman of the Audit and Risk Committee and a member of 
the Remuneration Committee.

Other directorships:

Allianz Australia Insurance Ltd 

Director since 1997

Viridis Investment Management Ltd 

Appointed 2005, Resigned 2010

11

 
Information on Chief Financial Officer and Company Secretary

Alexander J. Payne  B.Comm; Dip CM; FCPA; FCIS; FCSA; JP 
Chief Financial Officer
Mr Payne is an accountant with significant financial experience, who joined The Austral Brick Company in 1985.  
In 1987 he was appointed Group Company Secretary, and was appointed Chief Financial Officer in 2003.  He 
is a Director of BKI Investment Company Ltd.  In 2011, Mr Payne completed the Stanford University Executive 
Development Program.

Iain H. Thompson  B.Ec; CA; Grad Dip CSP; FCIS; FCSA 
Company Secretary
Mr Thompson is a chartered accountant who joined The Austral Brick Company in 1996.  He worked in various 
accounting roles within the Company before being appointed Group Company Secretary in 2003.

Meetings of Directors
As at the date of this report there is an Audit and Risk Committee and a Remuneration Committee.  During the 
financial year, 15 meetings of Directors (including committees) were held.  Attendances were:

DIRECTORS’ 
MEETINGS 

REMUNERATION 
COMMITTEE MEETINGS 

AUDIT AND RISK 
COMMITTEE MEETINGS

Number 
eligible to 
attend 

Number 
attended 

Number 
eligible to 
attend 

Number 
attended 

Number 
eligible to 
attend 

Number 
attended

R.D. Millner 
M.J. Millner 
L.R. Partridge 
B.P.Crotty 
D.N. Gilham 
R.J. Webster 

10 
10 
10 
10 
10 
10 

10 
10 
10 
10 
10 
10 

2 
2 
- 
2 
2 
2 

2 
2 
- 
2 
2 
2 

- 
3 
- 
3 
- 
3 

-
3
-
3
-
3

Directors interests
As at 20 September 2012, Directors had the following relevant interests in Brickworks shares:

R.D. Millner 
M.J. Millner 
L.R. Partridge 
B.P. Crotty 
D.N. Gilham 
R.J. Webster 

Ordinary Shares

5,396,192
5,371,433
251,917
10,209
102,268
15,922

As at 20 September 2012, no Director had relevant interests in debentures of, or interests in a registered scheme 
made available by Brickworks or a related body corporate.

As at 20 September 2012, no Director had any rights or options over shares in debentures of, or interests in a 
registered scheme made available by Brickworks or a related body corporate.

As at 20 September 2012, there were no contracts entered into by Brickworks or a related body corporate to 
which any Director is party, or under which any Director is entitled to benefit nor were there any contracts which 
confer any right for any Director to call for or deliver shares in, debentures of, or interests in a registered scheme 
made available by Brickworks or a related body corporate.

12

 
 
 
 
 
 
 
 
 
REMUNERATION REPORT

The remuneration report has been audited.

Remuneration committee
Brickworks Remuneration Committee operates under the delegated authority of Brickworks’ Board of Directors.  A 
summary of the Remuneration Committee charter is included on the Brickworks website (www.brickworks.com.au).  
All non-executive Directors of Brickworks are members of the Remuneration Committee.

The main functions of the Remuneration Committee are to assist the Board in fulfilling its responsibilities relating to:

• 

• 

• 

 Ensuring remuneration policies and practices are consistent with Brickworks’ strategic goals and human 
resources objectives and which enable Brickworks to attract and retain executives and Directors who 
will create value for shareholders;

 Equitably,  consistently  and  responsibly  rewarding  executives  having  regard  to  the  performance  of 
Brickworks, the performance of the executive and the general pay environment; and

Ensuring executive succession planning is adequate and appropriate.

Attendance details of the Remuneration committee are included in the Directors’ report.

The Committee is authorised by the Board to obtain external professional advice, and to secure the attendance 
of outsiders with relevant experience and expertise if it considers this necessary.

Non-executive Directors
Remuneration  of  non-executive  Directors  is  determined  by  the  full  Board  after  consideration  of  Company 
performance and market rates for Directors’ remuneration.  Non-executive Director fees are fixed each year, and 
are not subject to performance based incentives.  Brickworks’ non-executive Directors are not employed under 
an employment contract.

The maximum aggregate level of fees which may be paid to non-executive Directors is required to be approved 
by shareholders in  a general  meeting.   This  figure  is currently  $800,000,  and  was  approved  by  shareholders 
at the Annual General Meeting on 31 October 2003.  It is not proposed to vary this amount at the 2012 Annual 
General Meeting.

For the year ended 31 July 2012, Brickworks paid non-executive Directors base fees of $100,000 per annum, 
with the chairman of the Board receiving $200,000 per annum, and the chairman of the Audit and Risk Committee 
receiving an additional $10,000 per annum.  All Directors are entitled to receive superannuation contributions at 
the statutory rate (9%) on these amounts.  The total aggregate fees paid to non-executive Directors during the 
year was within the maximum approved by shareholders.

Brickworks constitution requires that Directors must own a minimum of 500 shares in the Company within two 
months of their appointment.  All Directors complied with this requirement during the year. 

Executive Directors and executives
Board policy for determining remuneration

Board  policy  for  determining  the  nature  and  amount  of  remuneration  of  the  executive  Director  and  senior 
managers (the executives) is set by the Remuneration Committee.  This policy is applied consistently across all 
divisions within the Group.  Brickworks’ remuneration policy is to ensure that an executive’s remuneration reflects 
their duties and responsibilities, as well as ensuring the Company is able to attract and retain key talent.

The  Board  of  Brickworks  recognises  that  the  Group’s  performance  is  tied  to  its  ability  to  attract,  retain  and 
develop highly skilled and motivated executives.  Whilst remuneration is a key factor in achieving this, the Board 
recognises there are other factors that influence this ability, including the culture and reputation of the group and 
its employees, the general human resources policies, and professional development opportunities.

Executive remuneration is comprised of both fixed and variable remuneration components.  The structure of the 
remuneration is designed to provide an appropriate balance between these components.

Fixed  remuneration  is  made  up  of  base  salary,  superannuation  and  other  benefits  (where  taken).    Fixed 
remuneration  is  approved  by  the  Remuneration  Committee  based  on  data  sourced  from  external  sources, 
including independent salary survey providers.

Variable remuneration is tied to the performance of both the individual and the Company.  Any such remuneration 
earned is available as Brickworks shares purchased through the Brickworks Deferred Employee Share Plan or 
as cash, at the discretion of the employee.

Performance based remuneration

Brickworks  Incentive  Scheme  has  been  designed  to  focus  executives  on  the  necessity  to  achieve  a  range 
of  planned  targets  for  their  respective  businesses.    The  variable  remuneration  program  is  structured  around 
the achievement of annual performance criteria having regard to an individual’s capacity to influence the area 
of  responsibility,  and  is  payable  following  recommendation  by  the  Managing  Director  and  approval  by  the 
Remuneration Committee.  Funding for the Incentive Scheme accrues based on divisional and group earnings.

Variable remuneration available as a proportion of total salary for an employee increases as that employee gains 
greater responsibility and has greater capacity to influence the performance of the business as a whole.  The 
proportion of remuneration related to performance for the Managing Director and Chief Financial Officer is at the 
discretion of the Remuneration Committee.  For the other specified executives and senior managers covered by 
the Incentive Scheme, the potential variable component is up to 37.5% of base salary, adjusted up or down for 
performance compared against prior years.  

13

Total variable remuneration payments for the 2012 financial year reduced further from 2011’s low levels, with 
a number of senior executives, including the Managing Director and Chief Financial Officer, again receiving no 
variable remuneration for the year.

This scheme covers the Managing Director, Chief Financial Officer, General Managers, and various other senior 
managers within the group.

Seventy percent of variable remuneration is directly tied to achievement of divisional profit results against both 
prior  year  and  budgeted  performance.   The  Board  considers  this  measure  highly  appropriate  as  it  is  directly 
linked to the Company’s ability to generate profit and create value for shareholders.  This is also appropriate 
from an executive’s perspective as the executive is assessed against areas of direct responsibility and influence.  
Comparison of divisional profit is made against both prior year results and Board approved budgets for the current 
year.  This criteria takes into account the aim of continual improvement in shareholders returns, whilst at the same 
time recognising that there are a number of external factors (such as the cyclical nature of the Australian Building 
industry) that are outside the control of the executive.  Comparison against properly determined and approved 
budgets that take into account these external factors is aimed at rewarding executives for strong performance in 
a weaker environment, which assists in reducing the impact of any negative factors on the business as a whole.

The  remaining  thirty  percent  of  variable  remuneration  is  not  directly  tied  to  profit  performance.    The  Board 
considers  that  there  are  a  number  of  other  areas  of  business  performance  that  are  critical  to  the  success  of 
the Company yet may not be reflected directly in divisional profits in the current year.  These are areas of wider 
corporate responsibility that, if not achieved or improved, have the capacity to damage shareholder value, such 
as environmental compliance and performance, and occupational health and safety performance.  Additionally, 
an executive’s ability to train, develop and motivate staff, to maintain positive community relations, and to develop 
the  industry  we  rely  on,  all  have  a  major  impact  on  the  future  profitability  of  the  Company.   These  non-profit 
factors are assessed against internal targets set in advance and aimed at continual improvement in these areas. 

Brickworks Employee Share Plan
Brickworks Employee Share Plan operates as part of the remuneration structure of the group.  All employees 
of Brickworks with a minimum 3 months service are eligible to join the plan, whereby the employee may salary 
sacrifice an amount toward the purchase of Brickworks Ordinary shares and the Company contributes a maximum 
of $3 per employee per week.  The plans are aimed at encouraging employees to share in ownership of their 
Company, and help to align the interests of all employees with that of the shareholders.  

In addition to the optional salary sacrifice portion of the plans, Brickworks has introduced an employee Alignment 
and Retention Scheme, whereby salaried staff are entitled to a value of shares each year through the Deferred 
Employee Share Plan.  The value of shares granted is dependent upon the employees position within the group 
and their base salary, with staff being entitled to shares with a value up to 37.5% of base salary.  Under the terms 
of the scheme, the employee will receive the voting rights and entitlement to any future dividends immediately 
upon purchase, however they are unable to access the shares to trade unless they satisfy vesting criteria.  These 
shares will become available to the employee at 20% per annum at the end of each of the following five years, 
providing they continue to be employed by Brickworks.  If the employee terminates their employment, they forfeit 
their entitlement to the unvested shares, except in limited circumstances, such as medical reasons or bona fide 
retirement.

An employee’s right to transact the shares is governed by the trust deed for the Brickworks Employee Share 
Plans and the Company’s policy regarding trading windows.

Brickworks Employee Share Plan is seen as both an employee retention mechanism, due to the service criteria 
attaching  to  the  vesting  of  the  shares,  and  a  method  of  aligning  employee  interests  with  those  of  external 
shareholders. At 31 July 2012, there were 716 employees participating in the share plans, holding 1,283,527 
shares (0.87% of issued capital).

In accordance with ASX Listing Rule 10.14, the Company contribution to the Brickworks Employee Share Plan is 
unavailable to Directors of Brickworks.

During the year, all monthly share purchases through the Brickworks Employee Share Plans were performed on 
market, as were all bonus shares granted through the Employee Share Plans.

Options
No options over unissued shares or interests in Brickworks Limited or a controlled entity were granted during or 
since the end of the financial year and there were no options outstanding at the date of this report.  No shares 
or interests have been issued during or since the end of the year as a result of the exercise of any option over 
unissued shares or interests in Brickworks or any controlled entity.

Superannuation
The Company contributes to a number of superannuation funds for its employees.  Company superannuation 
contributions  are  as  required  under  the  relevant  superannuation  guarantee  legislation,  generally  being  9%  of 
salary.  Employees are entitled to salary sacrifice additional amounts as superannuation contributions, provided 
any contributions comply with superannuation guarantee requirements.

Brickworks does not have any, or any interest in, defined benefit superannuation funds.  All funds administered 
on behalf of the Company are accumulation funds, and as a result there is no ongoing liability to Brickworks for 
unfunded superannuation plans.

Company performance, shareholder wealth and remuneration
This remuneration policy has been tailored to help align Director and executive interests with those of shareholders.  
The main method of this is through the use of the variable remuneration component and the use of the Brickworks 
Deferred Employee Share Plan.   The Company believes this policy has been effective in increasing shareholder 
wealth over the long term, and will continue to be effective in creating additional shareholder value.

14

The following table shows a number of relevant measures of Company performance over the past five years.  
A detailed discussion on the current year results is included in the review of operations and is not duplicated 
in full here, however an analysis of the figures below demonstrates continued dividend growth, and consistent 
performance in a difficult cyclical environment.

The  Board  and  Senior  Management  accept  that  a  number  of  factors  have  contributed  to  recent  poor  share 
price performance, however the Board is of the opinion that the strategies and efforts adopted by the Group are 
appropriate to provide long term results to shareholders.  Performance based remuneration is tied to performance 
of  the  building  products  and  property  segments,  interest  and  tax  expenses,  however  the  share  price  is  also 
influenced by factors outside of management’s control.  Recent share price pressures have come from a range 
of sources, including building material stocks facing particularly challenging conditions, investors not giving any 
weight to the value of the Group’s look-through exposure to the strong resources sector (through SOL and NHC), 
and  broader  economic  issues  such  as  the  potential  profit  impact  of  the  carbon  tax,  and  uncertainty  in  global 
financial markets generally.

Whilst the share price does not currently reflect the efforts of the board and management, management have 
had performance based remuneration cut significantly to appropriate levels given current returns.  The changes 
noted above indicate that the board is prepared to adjust remuneration levels to appropriately match company 
performance, and the board is satisfied that the previously described remuneration policies will lead to continued 
improvement to shareholder wealth over the long term.

Total revenue (millions)

Net profit before significant items  
after tax (millions)

2008

$553.7

2009

$593.5

2010

$656.5

2011

$635.6

2012

$556.9

$108.2

$113.7

$110.2

$100.8

$78.9

Net profit after tax (millions)

$101.5

$305.2

$138.8

$142.6

$43.3

Share price at year end

$11.90

$12.85

$11.81

$9.90

$10.08

Dividends – ordinary shares (cents)

39.0

39.0

40.0

40.5

40.5

Details of Key Management Personnel

Directors

The following persons were directors of Brickworks Ltd during the financial year:

Mr R. Millner 
Mr M. Millner 
Mr L. Partridge 
Mr B. Crotty 
Mr D. Gilham 
The Hon. R. Webster 

Executives

Non-executive Chairman
Non-executive Deputy Chairman
Executive director (Managing Director)
Non-executive director
Non-executive director
Non-executive director

The following persons had authority and responsibility for planning, directing and controlling the activities of the 
Group during the financial year:

Mr A. Payne 
Ms M. Kublins 
Mr D. Fitzharris 
Mr M. Finney 
Mr P. Scott 
Mr D. Millington 

Chief Financial Officer
Executive General Manager – Property & Development
Group General Manager Sales – Brickworks Building Products
Group General Manager – Austral Bricks East Coast
Group General Manager WA – Brickworks Building Products
General Manager – Bristile Roofing East Coast

On 9 May 2011 Mr Mark Finney was appointed by the company and forms part of the Key Management Personnel 
disclosures from this date. From the same date, Messrs Caughey and Ellenor are no longer categorised as Key 
Management Personnel for financial reporting purposes, but remain in their same positions within the group.

15

Remuneration of Individual Key Management Personnel

Directors

R. Millner

M. Millner

B. Crotty

D. Gilham

R. Webster

L. Partridge

Totals

Other Key 
Management 
Personnel

A. Payne

M. Kublins 

D. Fitzharris 

M. Finney (3)

P. Scott 

P. Caughey (3)

M. Ellenor (3)

D. Millington  

I. Thompson (4)

Totals

Year

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

Year

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

Short term employee benefits

Base salary 
/ fees

Short term 
bonus (1)

Non- 
monetary 
benefits

Post  
employment 
(Super)

Share based 
payment 
(Long term 
incentive) (2)

Termination 
benefits

200,000

195,833

100,000

97,917

100,000

97,917

100,000

97,917

110,000

107,917

1,079,146

1,060,063

1,689,146

1,657,564

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

66,777

60,088

66,777

60,088

18,000

17,625

9,000

8,813

9,000

8,813

9,000

8,813

9,900

9,713

15,833

49,998

70,733

103,775

-

-

-

-

-

-

-

-

-

-

217,500

436,693

217,500

436,693

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Short term employee benefits

Base salary 
/ fees

Short term 
bonus (1)

Non- 
monetary 
benefits

Post 
employment 
(Super)

Share based 
payment 
(Long term 
incentive) (2)

Termination 
benefits

502,403

491,293

364,840

335,563

348,124

349,345

528,504

122,567

351,952

379,806

-

-

-

142,500

-

75,000

-

-

-

-

N/A

N/A

25,229

35,168

34,167

32,473

36,700

50,907

21,132

1,466

22,039

31,007

N/A

40,730

44,216

23,758

28,898

23,758

30,860

24,289

8,530

15,833

15,186

N/A

109,050

250,488

67,874

157,635

67,874

98,645

50,000

-

67,874

148,628

N/A

203,422

112,500

24,901

18,062

61,224

N/A

198,045

261,567

254,427

N/A

N/A

75,000

-

106,875

N/A

187,989

25,000

2,357,390

-

N/A

18,326

16,955

24,480

N/A

16,960

156,222

235,688

N/A

16,686

29,202

22,898

N/A

16,919

157,570

202,255

N/A

56,153

48,187

90,368

N/A

38,033

410,859

901,174

2011

2,522,458

536,875

-

-

-

-

-

-

-

-

-

-

N/A

-

N/A

-

-

-

N/A

-

-

-

Total

218,000

213,458

109,000

106,730

109,000

106,730

109,000

106,730

119,900

117, 630

1,379,256

1,606,842

2,044,156

2,258,120

Total

677,412

821,165

490,639

697,069

476,456

604,757

623,925

132,563

457,698

574,627

N/A

420,109

N/A

364,210

355,911

499,048

N/A

284,901

3,082,041

4,398,449

Notes 
(1) 

 The short term bonus amounts disclosed were approved by the Remuneration Committee on 31July 2012, 
in relation to performance during the 2012 financial year (2011 granted on 29  August 2011).  The short term 
bonus payments were made during the September following approval.

(2) 

(3) 

(4) 

 Share rights are valued at their grant date and the values are allocated evenly over the period from grant 
date to vesting date.  The amounts disclosed above relate to that portion of the period from grant date to 
vesting date that fall within the current financial period in accordance with AASB 2.  On the same date as the 
Remuneration Committee approved the short term bonus, they also approved various long term incentive 
amounts for each of the employees listed above, to be granted as shares in the Deferred Employee Share 
Plan (as outlined in the section on the share plan above).

 On 9 May 2011 Mr M. Finney was appointed by the company and forms part of the KMP disclosures from 
this date. From the same date, Messrs Caughey and Ellenor are no longer categorised as KMP for financial 
reporting purposes, but remain in their same positions within the group.

 Mr I. Thompson is no longer categorised as KMP for financial reporting purposes, but remains in the same 
position within the group.

16

Discussion in relation to specific executives
The Company has signed employment contracts with the Managing Director and other senior executives of the 
Brickworks group.  There is no fixed termination date under the contract, however the terms allow for a review 
every five years, or in certain limited circumstances, such as a material change in the executives position.

If the executive resigns from their employment, they are entitled to their salary up to termination date plus any 
accrued leave provisions.  They will also be entitled to a pro-rata portion of the average of the previous 3 years 
annual bonus.

In October 2011 Mr Finney was allocated $250,000 in Brickworks shares under his sign on agreement.  These 
shares are subject to a progressive clawback condition if Mr Finney was to terminate within five years from his 
commencement date (9 May 2011).

If the Company terminates Mr Partridge (Managing Director) other than under immediate termination (as defined 
in his employment contract), he will receive six months notice (or a payment equivalent to this amount in lieu 
of notice), plus a termination benefit of twelve months base salary and the average of the previous three years 
annual bonus.  In addition Mr Partridge will receive immediate access to all unvested shares held on his behalf 
by the Brickworks Deferred Employee Share Plan.

If the Company terminates the specified executives other than under immediate termination (as defined in their 
employment contract), the executive will receive up to six months notice (or a payment equivalent to this amount 
in lieu of notice), plus a termination benefit of six months base salary and a pro-rata of the average of the previous 
three years annual bonus.  In addition the executive will receive immediate access to all unvested shares held on 
their behalf by the Brickworks Deferred Employee Share Plan.

If the Managing Director or any executive is subject to immediate termination (as defined in their employment 
contract), Brickworks is not liable for any termination payments to the employee other than any outstanding base 
pay and accrued leave amounts.  All unvested shares held on their behalf by the Brickworks Deferred Employee 
Share Plan will be forfeited.

All senior executives gain strategic business knowledge during the course of their employment.  Brickworks will 
use any means available to it by law to ensure that this information is not used to the detriment of the Company 
by any staff member on termination.  In order to protect the Group’s interests, Brickworks has an enforceable 
restraint through the executive’s employment contract to prevent executives either going to work for a competitor, 
or  inducing  other  employees  to  leave  the  Company,  for  a  specified  period.    In  consideration  of  the  restraint, 
executives will receive a monthly payment, equivalent to their existing base salary plus one twelfth of the average 
of the previous three annual bonuses, for a period of time.  For the Managing Director this period is 12 months, 
and for other executives this period is up to 6 months.

The  employment  contracts  referred  to  above  have  been  prepared  and  reviewed  by  an  external  party.    The 
Managing Director’s salary package has also been reviewed by an external party and is considered to be fair 
and reasonable.

17

Auditor’s independence declaration
The Directors received an independence declaration from the auditor, Ernst & Young.  A copy has been included 
on page 19 of the report.

Provision of non-audit services by external auditor
During the year the external auditors, Ernst & Young, provided non-audit services to the Group, totalling $17,800.  
The Directors through the Audit and Risk Committee are of the opinion that the provision of non-audit services 
has not compromised the independence of the auditors.

The non-audit services were all for the provision of accounting advice, which was general in nature, relating to the 
interpretation and potential application of accounting standards.  Brickworks management has been responsible 
for selecting, applying and calculating all impacts of accounting standards on the Group’s financial statements.

The details of total amounts paid to the external auditors are included in note 6 to the financial statements.  

Proceedings on behalf of the Company
No person has applied for leave of Court to bring proceedings on behalf of the Company or 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.

Indemnification of Directors and Officers
The Company’s Rules provide for an indemnity of Directors, executive officers and secretaries where liability is 
incurred in connection with the performance of their duties in those roles other than as a result of their negligence, 
default, breach of duty or breach of trust in relation to the Company.  The Rules further provide for an indemnity 
in respect of legal costs incurred by those persons in defending proceedings in which judgment is given in their 
favour, they are acquitted or the Court grants them relief.

Since the end of the previous financial year, the Company has paid insurance premiums in respect of Directors’ 
and officers’ liability.  The insured persons under those policies are defined as all Directors (being the Directors 
named in this Report), executive officers and any employees who may be deemed to be officers for the purposes 
of the Corporations Act 2001.

Rounding of Amounts
The Company has applied the relief available to it under ASIC Class Order 98/100 and accordingly, amounts in 
the financial report and Directors’ report have been rounded off to the nearest $1,000 where allowed under that 
class order.

Made in accordance with a resolution of the Directors at Sydney.

Dated 20 September 2012.

R.D. MILLNER 

Director   

L.R. PARTRIDGE AM

Director

18

 
 
 
 
 
 
 
 
 
 
Ernst & Young Centre 
680 George Street 
Sydney  NSW  2000  Australia 
GPO Box 2646  Sydney  NSW  2001

Tel:  +61 2 9248 5555 
Fax: +61 2 9248 5959 
www.ey.com/au

AUDITOR’S INDEPENDENCE DECLARATION

To the Directors of Brickworks Limited
In relation to our audit of the financial report of Brickworks Limited for the financial year ended 31 July 2012, to the 
best of my knowledge and belief, there have been no contraventions of the auditor independence requirements 
of the Corporations Act 2001 or any applicable code of professional conduct.

Ernst & Young

Renay Robinson 
Partner 
20 September 2012

Liability limited by a scheme approved under 
Professional Standards Legislation

19

BRICKWORKS LIMITED

A.B.N. 17 000 028 526

CORPORATE GOVERNANCE STATEMENT

The  Brickworks  Board  is  committed  to  developing  and  maintaining  good  corporate  governance  within  the 
Company, and recognise that this is best achieved through its people and their actions.  Brickworks’ long term 
future is best served by ensuring that its employees have the highest levels of honesty and integrity and that 
these employees are retained and developed through fair remuneration, appropriate long term incentives and 
equity participation in the Company.  It is also critical to the success of the Company that an appropriate culture 
is nurtured and developed, starting from the Board itself.

This Corporate Governance statement has been summarised into sections in line with the 8 essential corporate 
governance  principles  as  specified  in  the  ASX  Corporate  Governance  Council’s  “Corporate  Governance 
Principles and Recommendations (2nd Edition)”, as issued in June 2010.

A summary of corporate governance information can be found on the Brickworks website at www.brickworks.
com.au.

Lay solid foundations for management and oversight
The Board is ultimately responsible for all matters relating to the running of the Company, however that role is 
achieved mainly through governing the Company.  It is the role of senior management to manage the Company 
in accordance with the direction and delegations of the Board, and the responsibility of the Board to oversee the 
activities of management in carrying out these delegated duties.

Brickworks  Board  has  the  final  responsibility  for  the  successful  operations  of  the  Company.    In  general,  it  is 
responsible for, and has the authority to determine, all matters relating to the policies, practices, management and 
operations of the Company.  The Board must also ensure that the Company complies with all of its contractual, 
statutory and any other legal obligations, including the requirements of any regulatory body.

The principal functions and responsibilities of the Board include the following:

• 

• 

• 

• 

• 

• 

• 

• 

Providing leadership to the Company and its employees;

Overseeing the development and implementation of appropriate corporate strategies;

Ensuring corporate accountability to shareholders;

Overseeing the control and accountability systems within the Company;

 Ensuring  robust  and  effective  risk  management,  compliance  and  control  systems  are  in  place  and 
operating effectively;

Monitoring the performance and conduct of the Company;

 Monitoring the performance and conduct of senior management, and ensuring adequate succession 
plans are in place; and

Ensuring the Company continually builds an honest and ethical culture. 

All matters that are not specifically reserved for the board and are necessary for the daily management of the 
Company are delegated to senior executives and management, through the Managing Director.

In  monitoring  the  performance  and  conduct  of  senior  management,  the  Remuneration  Committee  formally 
reviews the performance of the Managing Director and senior executive staff at least annually.  In addition to the 
formal evaluation procedures, senior executive performance is continually monitored by the Managing Director 
on behalf of the Board, and the Managing Director’s performance is subject to continuous monitoring by the full 
Board.  During the current year, the performance evaluations referred to above took place in accordance with the 
process as outlined.

Structure the Board to add value
It is Board policy that the majority of the Board should be non-executive Directors and the Chairman should be a 
non-executive Director.  At the date of this report, the Board consists of five non-executive Directors listed in the 
Directors’ Report and the Managing Director, Mr Lindsay Partridge.  Specific details concerning each Director are 
contained in the Directors’ Report.

Under  the  ASX  Principles,  Messrs  Brendan  Crotty  and  Robert  Webster  are  the  only  Directors  considered 
independent.    Mr  David  Gilham  is  not  independent  due  to  previous  senior  executive  roles  with  Bristile  Ltd, 
and  Messrs  Robert  Millner  and  Michael  Millner  are  not  independent  due  to  their  directorial  relationships  with 
Washington H. Soul Pattinson, a major shareholder in Brickworks.  Whilst the majority of Directors are not strictly 
considered  ‘independent’  in  accordance  with  the ASX  Principles,  the  Brickworks  Board  feels  that  there  is  an 
appropriate blend of skills and experience covering all aspects of the Company’s operations, particularly the core 
businesses of building products manufacturing and property development.

The  Company  considers  both  quantitative  and  qualitative  elements  in  determining  the  materiality  of  any 
relationships  between  individual  Directors  and  the  Company.   The  Company  uses  the  guidance  contained  in 
accounting standard AASB1031: Materiality to determine quantitative thresholds, whereby amounts less than 5% 
are considered immaterial and amounts greater than 10% are considered material, subject to the assessment of 
qualitative factors.  Major qualitative factors include the strategic importance of any relationship and the nature 
of that relationship.

Brickworks does not have a separate nomination committee, however the non-executive members of the Board 
who are not up for re-election at the next AGM fulfil the role of a nomination committee.  These non-executive 

20

Directors are responsible for reviewing the composition of the Board to ensure that it comprises Directors with an 
appropriate mix of experience and expertise.  Where a vacancy exists on the Board or where the non-executive 
Directors  consider  that  the  Board  would  benefit  from  the  appointment  of  additional  Directors  with  particular 
expertise  or  experience,  the  non-executive  Directors,  in  conjunction  with  external  advisors  if  appropriate,  will 
select suitable candidates.  Any Director appointed by the Board in this manner must be elected by shareholders 
at the next Annual General Meeting.

Non-executive  Director  performance  is  reviewed  by  the  Chairman.    If  the  performance  of  any  non-executive 
Director  is  considered  unsatisfactory,  the  matter  is  referred  to  the  remainder  of  the  Board.    The  efficiency, 
effectiveness and operations of the Board are continuously subject to informal monitoring by the Chairman and 
the Board as a whole.

Individual Directors of Brickworks are entitled to seek independent professional advice in relation to their role as a 
Director, at the cost of Brickworks.  Directors are required to advise the Chairman or full Board prior to engaging 
parties to provide this advice.

Promote ethical and responsible decision-making
Brickworks has an established code of conduct under which all Directors and employees are expected to operate.  
This code is centred on having the Company and its employees achieving the highest integrity in all its business 
dealings  at  all  levels  of  the  organisation.    The  code  covers  a  number  of  areas,  including  ethical  standards, 
conflicts  of  interest,  excellence  in  performance,  confidentiality,  trading  in  Company  securities,  continuous 
disclosure and equal opportunity, anti-discrimination and harassment.  All Directors and employees of Brickworks 
and its subsidiaries are expected to abide by the code of conduct and the comprehensive policy manual which 
covers a number of items in more detail.

Brickworks is committed to generating an environment whereby its employees are encouraged to advise senior 
management  of  breaches  to  its  code  of  conduct  and  policy  manual.    To  assist  employees  in  this  process, 
Brickworks  has  established  a  confidential  whistleblower  service  utilising  external  consultants  to  facilitate  the 
reporting and investigating of breaches to the code of conduct.

A summary of the main principles of the Brickworks share trading policy are outlined below:

• 

• 

• 

• 

• 

• 

• 

 Brickworks’  Directors  and  employees  are  prohibited  from  trading  in  shares  of  Brickworks  when  in 
possession of price sensitive information about Brickworks Limited or its business and this information 
is not available to the public.

 Directors  and  employees  are  also  prohibited  from  encouraging  another  person  (for  example,  family 
members or business colleagues) to deal in Brickworks Shares when they have “inside information”.

 Brickworks  has  established  share  trading  windows  during  which  employees  or  Directors  of  the 
Company may trade shares in the Company.  These windows are each for a period of six (6) weeks 
duration commencing at:

1. 

2. 

3. 

4. 

the announcement of the Yearly result to the ASX;

the AGM date;

the announcement of the half yearly result to the ASX; and

the lodgement of a prospectus.

 Directors and employees are restricted from trading in Brickworks shares during these trading windows 
if they are in possession of price sensitive information.

 There is a absolute prohibition on the trading of shares between the end of a financial period and the 
release of results to the ASX relating to that period.

 In exceptional circumstances, senior  management and  Directors  may trade  outside  these  windows, 
providing  they  obtain  written  approval  from  the  Managing  Director  or  Chairman  respectively  prior 
to  trading.  Exceptional  circumstances  can  include  severe  financial  hardship  and  the  requirement  to 
comply with a legal or regulatory requirement.

 This restriction does not apply to a limited number of scenarios, including where there is a no change 
in  the  beneficial  interest;  where  the  trading  is  done  through  a  fund  or  scheme  where  investment 
decisions are at the discretion of a third party; participation in an offer made to all or most Brickworks 
shareholders (such as a rights issue or dividend reinvestment plan); or monthly share purchases made 
by the Brickworks Employee Share Plans.

Brickworks’  Equal  Employment  Opportunity  policy  can  be  summarised  in  the  following  extracts  from  the  full 
policy:

“Brickworks is committed to a policy of equal employment opportunity (EEO) which aims to prevent the existence 
of discriminatory practices or measures which may hinder equitable selection, progress or access to benefits of 
all employees.”

“Specifically, Brickworks aims to... objectively select people on merit, encompassing assessment of individual 
skills, qualifications, abilities and aptitudes” and to “not discriminate on the basis of characteristics which may 
include race, age, colour, national origin, sex, marital status, pregnancy, religion, political conviction, physical 
impairment or sexual preference”

Brickworks recognises it has legal and moral obligations not to discriminate on any basis, and is conscious of 
ensuring that its workforce reflects the diverse nature of the locations it operates in.  Over time the company has 
improved its facilities in a number of its locations to promote opportunities for female operators and employees 
with physical disabilities.  Brickworks is also committed to increasing the number of indigenous employees in the 
workforce.  The company strives to improve shareholder value by ensuring the best candidate for any position 
is appointed.

As part of its ongoing obligations to comply with federal requirements, Brickworks reports annually under the 

21

 
 
 
 
Equal Opportunity for Women in the Workplace Act.  The EEO policy does not specifically require the Board to 
establish measurable objectives toward gender diversity, however the Board considers the following objectives 
to be appropriate:

Board membership:  At the point at which a board vacancy arises, the nomination committee will ensure that 
the male and female candidates with the best skills and experience as required for the vacant position will be 
assessed for the role.  Brickworks is committed to having the best director in the role, having regard to the skills 
and experience required.  Due to the low number and turnover of directors, Brickworks has not set a defined 
target for female board representation.

Executive group:  At the point at which a position on the Executive Group becomes available, the best internal 
candidates (male and female) will be assessed, along with (where applicable) the best male and female external 
candidates for the role (noting that Brickworks has a policy of promoting from within where possible).  Brickworks 
goal is to have increased female executive representation to 25% by the year 2020.  As a means of achieving this 
objective, all management positions should be advertised internally, with the best male and female candidates 
being assessed for the role.

Whole of organisation:  Nearly 50% of Brickworks employees are in shop floor manufacturing roles, where it has 
traditionally been very difficult to attract and retain female employees.  Women currently comprise only 3% of 
shop floor roles, and Brickworks is committed to increasing the shop floor female presence to 5% of employees 
by 2015.  In less ‘traditional’ male areas such as sales and administration, Brickworks currently has a majority of 
female employees, with 59% representation in these areas, including a number in roles structured to suit flexible 
working hours.  Overall, women currently comprise 18% of Brickworks total workforce.  Brickworks goal is to 
increase this representation to 25% by the year 2020.

Each  year  the  Board  will  report  on  these  objectives  and  progress  towards  them  as  part  of  the  Corporate 
Governance statement.

Safeguard integrity in financial reporting
Brickworks has an established Audit and Risk Committee, which has its own charter outlining the committee’s 
function,  composition,  authority,  responsibilities  and  reporting.   A  summary  of  the  charter  is  available  on  the 
Brickworks website.  The composition required under the charter is consistent with the best practice guidelines 
specified by the ASX.

Current  members  of  the  Committee  are  The  Hon.  Robert  Webster  (Chairman),  Mr  Michael  Millner,  and  Mr 
Brendan Crotty.  Details of these Directors’ qualifications and experience are available in the Directors’ Report.  
The  other  Board  members  have  a  right  of  attendance,  however  the  Managing  Director,  along  with  the  Chief 
Financial Officer, the Company Secretary, and other senior managers may attend by invitation only, to discuss 
issues on audit and internal control matters.

The committee also requests that representatives from the external auditors attend the Committee meetings to 
report on the results of their work in the period under review.  Representatives from both external and internal 
auditors have direct access to the Committee if required.

Audit and Risk Committee attendance details are included in the Directors’ report.

The function of the Committee is to assist the Board in fulfilling its statutory and fiduciary responsibilities relating to:

• 

• 

• 

• 

• 

 The  external  reporting  of  financial  information,  including  the  selection  and  application  of  accounting 
policies;

The independence and effectiveness of the external auditors;

The effectiveness of internal control processes and management information systems;

 Compliance  with  the  Corporations  Act,  ASX  Listing  Rules  and  any  other  statutory  requirements 
applicable to Brickworks Limited; and

The application and adequacy of risk management systems within Brickworks Limited.

Make timely and balanced disclosure
As  noted  previously,  the  Company  has  a  written  policy  dealing  with  its  requirements  under  the  Continuous 
Disclosure  rules  contained  in  ASX  listing  rule  3.1.    Generally,  this  policy  states  that  all  employees  have  a 
responsibility to advise senior management of any information about Brickworks or its subsidiaries which could 
be  considered  price  sensitive  for  Brickworks  shares.    Senior  management  will  then  consider,  in  consultation 
with the Directors, which information will be released to the ASX and what form this release will take.  Senior 
Management are accountable to the Board for compliance with these policies.

Respect the rights of shareholders
Brickworks is committed to keeping its shareholders and other interested parties informed about the Company’s 
activities, and to allow shareholders to effectively exercise those rights.  This is achieved in a number of ways, 
including  through  information  releases  to  the  market  via  the  ASX,  through  the  Brickworks  website,  through 
shareholder mailings, and at any general meetings of the Company.

Shareholders are able to make enquiries of the Company via phone, fax, email or post, details of which can be 
found on the Brickworks website.  Time is specifically allocated at general meetings for questions to be put to the 
Board of Directors.

In  addition,  the  partner  or  delegate  responsible  for  signing  the  audit  report  is  expected  to  be  at  the  annual 
general meeting of the Company to answer any questions raised in relation to the audit and the auditor’s report.  
Attendees at that meeting are given an opportunity to ask questions of the auditors.

22

Recognise and manage risk
Brickworks  is  committed  to  the  management  of  risks  throughout  our  operations  to  protect  our  employees, 
shareholders,  the  environment,  our  assets,  earnings,  markets  and  reputation.    Board  responsibility  for  risk 
management resides with the Audit and Risk Committee.

Brickworks has implemented a risk management framework consistent with each element of the Australian Risk 
management Standard AS/NZS31000:2009.  Key Elements of the comprehensive framework covered material 
Commercial, Business Process, Financial, Human Resources, Information, Property, Environmental, Health and 
Safety and Insurable Risks.

This risk initiative complements previous actions including the specific risk management policies contained within 
the Brickworks group policy manual, which are aimed at assisting the Board in the management of risk and legal 
matters.  Certain risk management techniques, including foreign currency and interest rate hedging, may only be 
undertaken where approved by the full Board of Directors.

It is a requirement of the Board that the Managing Director and Chief Financial Officer sign off to the Board, via the 
Audit and Risk Committee, on the risk management and internal compliance and control systems implemented 
by  the  Board,  and  that  these  compliance  and  control  systems  are  operating  efficiently  and  effectively  in  all 
material respects. Deployment of the risk management framework further facilitates the sign off process.

It is a requirement of the Board that the Managing Director and Chief Financial Officer sign off to the Board, via 
the Audit and Risk Committee, on the content of the financial statements, and that these statements represent a 
true and fair view of the Company’s operations and the financial position of the Company.

Remunerate fairly and responsibly
Brickworks has a Remuneration Committee with a membership of all non-executive Directors.  The committee 
operates under the delegated authority of the Board, and has its own charter, a summary of which is available 
on the Brickworks website.

The main functions of the Remuneration Committee are to assist the Board in fulfilling its responsibilities relating to:

• 

• 

• 

 Ensuring remuneration policies and practices are consistent with Brickworks’ strategic goals and human 
resources objectives and which enable Brickworks to attract and retain executives and Directors who 
will create value for shareholders;

 Equitably,  consistently  and  responsibly  rewarding  executives  having  regard  to  the  performance  of 
Brickworks, the performance of the executive and the general pay environment; and

Ensuring executive succession planning is adequate and appropriate.

Remuneration Committee attendance details are included in the Directors’ report.

This Committee is authorised by the Board to obtain external professional advice, and to secure the attendance 
of outsiders with relevant experience and expertise if it considers this necessary.

The Remuneration Report contains detailed information relating to Director and Senior Executive remuneration, 
including the policy for determining remuneration, the use of fixed and variable remuneration, and the relationship 
between executive remuneration and Company performance.

23

BRICKWORKS LIMITED
AND CONTROLLED ENTITIES  A.B.N. 17 000 028 526
STATEMENT OF COMPREHENSIVE INCOME AS AT 31 JULY 2012

Revenue

Cost of sales

Gross profit

Other income

Distribution expenses

Administration expenses

Selling expenses

Borrowing costs expense

Other expenses

CONSOLIDATED

NOTE

31 JULY 12
$000

31 JULY 11
$000

3

3

4

556,911

635,615

(405,334)

(467,338)

151,577

168,277

(60)

3,541

(50,758)

(56,058)

(20,582)

(21,313)

(55,526)

(59,959)

(25,215)

(21,155)

(59,205)

(11,338)

Share of net profits of associates and joint
ventures accounted for using the equity method

25, 26

86,867

168,517

Profit from ordinary activities before income tax expense

27,098

170,512

Income tax attributable to profit from ordinary activities

5

16,206

(27,961)

Profit from ordinary activities after income tax expense

43,304

142,551

Other comprehensive income
Foreign currency translation

Share of increments / (decrements) in reserves
attributable to associates and joint ventures

(358)

(408)

(14,305)

(103,100)

Income tax on items of other comprehensive income

3,557

31,357

Other comprehensive income for the period, net of tax

(11,106)

(72,151)

Total comprehensive income for the period

32,198

70,400

Net profit attributable to members of the parent entity

43,304

142,551

Total comprehensive income for the period attributable
to members of the parent entity

Basic earnings per share (cents per share)

Diluted earnings per share (cents per share)

8

8

32,198

70,400

29.3

29.3

96.7

96.7

These statements should be read in conjunction with the accompanying notes.

24

BRICKWORKS LIMITED
AND CONTROLLED ENTITIES  A.B.N. 17 000 028 526
STATEMENT OF FINANCIAL POSITION AS AT 31 JULY 2012

CURRENT ASSETS

Cash assets
Receivables
Held for trading financial assets
Inventories
Land held for resale
Tax receivable
Prepayments
Derivative financial instruments

TOTAL CURRENT ASSETS

NON-CURRENT ASSETS

Receivables
Inventories
Land held for resale
Investments accounted for using
   the equity method
Property, plant and equipment
Intangible assets

TOTAL NON-CURRENT ASSETS

TOTAL ASSETS

CURRENT LIABILITIES

Payables
Provisions

TOTAL CURRENT LIABILITIES

NON-CURRENT LIABILITIES
Interest-bearing liabilities
Derivative financial instruments
Provisions
Deferred taxes

TOTAL NON-CURRENT LIABILITIES

TOTAL LIABILITIES

NET ASSETS

EQUITY

Contributed equity
Reserves
Retained profits

TOTAL  EQUITY

CONSOLIDATED

NOTE

31 JULY 12
$000

31 JULY 11 
$000

9 
10(a)
11 
12(a)
13(a)

19(a)

10(b)
12(b)
13(b)

14 
15 
16 

17
20(a)

18(a)
19(b)
20(b)
21 

22 
23 

14,553
79,354
11
163,141
9,657
1,370
7,442
-

275,528

-
8,301
14,742

50,617
83,639
14
153,575
1,249
3,606
5,864
139

298,703

201
8,372
23,742

1,242,736
450,201
269,486

1,211,298
450,520
285,650

1,985,466

1,979,783

2,260,994

2,278,486

73,024
32,144

105,168

298,574
5,958
22,973
165,713

493,218

598,386

58,863
34,755

93,618

297,929
1,755
25,397
184,041

509,122

602,740

1,662,608

1,675,746

325,802
284,426
1,052,380

325,018
296,396
1,054,332

1,662,608

1,675,746

These statements should be read in conjunction with the accompanying notes.

25

BRICKWORKS LIMITED
AND CONTROLLED ENTITIES  A.B.N. 17 000 028 526
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 JULY 2012

l

a
t
o
T

0
0
0
$

0
0
0
$

i

d
e
n
a
t
e
R

i

s
g
n
n
r
a
E

s
’
V
J
&

e
v
r
e
s
e
R

0
0
0
$

0
0
0
$

e
v
r
e
s
e
R

s
t
n
e
m
y
a
P

i

s
e
t
a
c
o
s
s
A

d
e
s
a
B
e
r
a
h
S

i

n
g
e
r
o
F

y
c
n
e
r
r
u
C

e
v
r
e
s
e
R

0
0
0
$

l

a
r
e
n
e
G

e
v
r
e
s
e
R

0
0
0
$

0
0
0
$

y
t
i
u
q
E

e
v
r
e
s
e
R

s
t
n
e
m
t
s
u
d
A

j

l

a
t
i
p
a
C

s
t
fi
o
r
P

e
v
r
e
s
e
R

0
0
0
$

k
c
o
t
S

0
0
0
$

y
r
u
s
a
e
r
T

0
0
0
$

s
e
r
a
h
S

y
r
a
n
d
r
O

i

E
T
O
N

4
3
9

,

9
4
6
1

,

1
5
0
0
6
9

,

0
5
5
8
8
2

,

4
2
0

,

1

)
3
4
6

,

1
(

5
2
1
,
6
3

)
1
4
9
,
4
4
(

2
0
1
,
8
8

)
1
8
3
,
6
(

7
4
0
,
9
2
3

0
1
0
2

t
s
u
g
u
A
1

t

a
s
a

y
t
i

u
q
e

l

t

a
o
T

9
6
7

,

3

)
3
5
5

,

4
(

6
3
1

,

3

-

-

-

)
3
1
5

,

8
4
(

)
3
1
5
8
4
(

,

2
5
1

2
5
1

-

-

-

-

-

1
5
5
2
4
1

,

1
5
5

,

2
4
1

-

)
1
5
1
2
7
(

,

-

)
0
0
1
3
0
1
(

,

0
0
4
0
7

,

1
5
5
2
4
1

,

)
0
0
1
3
0
1
(

,

-

-

-

-

-

-

-

-

-

1
2
4

,

1

-

1
9

-

)
1
9
(

)
8
8
5
4
4
(

,

)
0
7
2

,

8
4
(

)
1
9
(

1
2
4

,

1

1
2
4

,

1

-

)
8
0
4
(

)
8
0
4
(

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

7
5
3
,
1
3

7
5
3
,
1
3

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

9
6
7
,
3

-

-

)
3
5
5
,
4
(

6
3
1
,
3

-

-

-

-

)
7
1
4
,
1
(

9
6
7
,
3

7

)
a
(
2
2

)
b
(
2
2

)
b
(
2
2

r
a
e
y

e
h
t

r
o
f

e
m
o
c
n

i

i

e
v
s
n
e
h
e
r
p
m
o
c

r
e
h
t
O

r
a
e
y

e
h

t

r
o

f

t
fi
o
r
p

t

e
N

r
a
e
y

e
h
t

r
o
f

e
m
o
c
n

i

i

e
v
s
n
e
h
e
r
p
m
o
c

l

t

a
o
T

y
t
i
c
a
p
a
c

r
i
e
h
t

n

i

s
r
e
n
w
o

h

t
i

w
s
n
o

i
t
c
a
s
n
a
r
T

s
r
e
n
w
o

s
a

i

r
a
e
y
e
h
t
g
n
i
r
u
d
d
a
p
r
o
d
e
d
v
o
r
p
s
d
n
e
d
v
D

i

i

i

h
g
u
o
r
h
t

s
e
r
a
h
s

f
o

e
u
s
s

i

/

e
s
a
h
c
r
u
P

o
t

r
e
f
s
n
a
r
t

i

s
e
t
a
c
o
s
s
a

f

o
e
r
a
h
S

s
e
e
y
o
p
m
e

l

o
t

d
e

t
s
e
v

s
e
r
a
h
S

n
a
p

l

e
r
a
h
s

e
e
y
o
p
m
e

l

s
e
r
a
h
s

f

o
e
u
s
s
I

s
t
s
e
r
e
t
n

i

y
t
i

u
q
e
e
d
s
t

i

u
o

i

s
g
n
n
r
a
e

i

d
e
n
a
e
r

t

)
o

t
(

/

m
o
r
f

r
e
f
s
n
a
r
t

i

s
e
t
a
c
o
s
s
a

f

o
e
r
a
h
S

s
t
n
e
m
y
a
p
d
e
s
a
b
e
r
a
h
S

26

6
4
7
5
7
6

,

,

1

2
3
3
4
5
0

,

,

1

9
5
3

,

5
8
1

5
4
4

,

2

)
1
5
0
,
2
(

5
2
1
,
6
3

)
4
8
5
,
3
1
(

2
0
1
,
8
8

)
8
9
7
,
7
(

6
1
8
,
2
3
3

1
1
0
2

l

y
u
J

1
3

t

a
s
a

y
t
i

u
q
e

l

t

a
o
T

)
3
7
3
8
4
(

,

)
3
7
3

,

8
4
(

)
2
8
8

,

2
(

6
6
6
3

,

0
2
1
3

,

-

3
4
9

-

-

)
3
(

-

0
2
1

,

3

)
6
2
5
3
4
(

,

)
6
5
2

,

5
4
(

-

-

-

3

-

3

4
0
3

,

3
4

)
6
0
1

,

1
1
(

4
0
3
3
4

,

-

-

)
5
0
3
4
1
(

,

8
9
1

,

2
3

4
0
3
3
4

,

)
5
0
3
4
1
(

,

-

-

-

-

-

-

-

3
4
9

3
4
9

-

)
8
5
3
(

)
8
5
3
(

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

3
3
3
,
4

3
3
3
,
4

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

)
2
8
8
,
2
(

6
6
6
,
3

-

-

4
8
7

-

-

-

-

-

-

-

-

-

7

)
b
(
2
2

)
b
(
2
2

r
a
e
y

e
h
t

r
o
f

e
m
o
c
n

i

i

e
v
s
n
e
h
e
r
p
m
o
c

r
e
h
t
O

r
a
e
y

e
h

t

r
o

f

t
fi
o
r
p

t

e
N

r
a
e
y

e
h
t

r
o
f

e
m
o
c
n

i

i

e
v
s
n
e
h
e
r
p
m
o
c

l

t

a
o
T

y
t
i
c
a
p
a
c

r
i
e
h
t

n

i

s
r
e
n
w
o

h

t
i

w
s
n
o

i
t
c
a
s
n
a
r
T

s
r
e
n
w
o

s
a

i

r
a
e
y
e
h
t
g
n
i
r
u
d
d
a
p
r
o
d
e
d
v
o
r
p
s
d
n
e
d
v
D

i

i

i

i

e
d
s
t
u
o
o
t

r
e
f
s
n
a
r
t

i

s
e
t
a
c
o
s
s
a

f

o
e
r
a
h
S

s
t
n
e
m
y
a
p
d
e
s
a
b
e
r
a
h
S

s
t
s
e
r
e

t

n

i

y
t
i

u
q
e

h
g
u
o
r
h
t

s
e
r
a
h
s

f

o
e
s
a
h
c
r
u
P

n
a
p

l

e
r
a
h
s

e
e
y
o
p
m
e

l

s
e
e
y
o
p
m
e

l

o
t

d
e

t
s
e
v

s
e
r
a
h
S

.
s
e

t

o
n

i

g
n
y
n
a
p
m
o
c
c
a

e
h
t
h
t
i

w
n
o
i
t
c
n
u
n
o
c
n

j

i

d
a
e
r

e
b

l

d
u
o
h
s

s
t
n
e
m
e
t
a
t
s
e
s
e
h
T

8
0
6
2
6
6

,

,

1

0
8
3

,

2
5
0
1

,

7
5
0

,

1
7
1

8
8
3
3

,

)
9
0
4
,
2
(

5
2
1
,
6
3

)
1
5
2
,
9
(

2
0
1
,
8
8

)
4
1
0
,
7
(

6
1
8
,
2
3
3

2
1
0
2

l

y
u
J

1
3

t

a
s
a

y
t
i

u
q
e

l

t

a
o
T

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BRICKWORKS LIMITED
AND CONTROLLED ENTITIES  A.B.N. 17 000 028 526
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2012

Cash flows from operating activities

   Receipts from customers
   Payments to suppliers and employees
   Proceeds from land held for resale
   Interest received
   Borrowing costs
   Dividends and distributions received
   Income tax paid

CONSOLIDATED

NOTE

31 JULY 12
$000

31 JULY 11
$000

611,970
(582,581)
-
1,083
(20,021)
52,584
1,461

680,020
(647,630)
18,750
1,717
(19,513)
57,113
(1,435)

Net cash flows from / (used in) operating activities

24(a)

64,496

89,022

Cash flows from investing activities

   Purchases of investments
   Proceeds from the sale or return of investments
   Payment for business acquisition net of cash acquired
   Proceeds from sale of property, plant and equipment
   Purchases of property, plant and equipment

29(b)

(78)
3,800
(19,726)
3,920
(28,911)

(3,153)
6
(17,110)
4,644
(35,656)

Net cash flows from / (used in) investing activities

(40,995)

(51,269)

Cash flows from financing activities

   Proceeds from borrowings
   Repayment of borrowings
   Net proceeds from issue / (repayment) of shares
   Loan (to) / from other entity
   Dividends paid

Net cash flows from / (used in) financing activities

Net increase / (decrease) in cash held

Cash at beginning of year

Cash at end of year

49,000
(49,000)
-
200
(59,765)

70,000
(70,000)
(10)
(714)
(59,765)

(59,565)

(60,489)

(36,064)

(22,736)

50,617

14,553

73,353

50,617

9

These statements should be read in conjunction with the accompanying notes.

27

BRICKWORKS LIMITED
AND CONTROLLED ENTITIES  A.B.N. 17 000 028 526
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2012

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Brickworks Limited is a listed public company, incorporated and domiciled in Australia.  These accounts were authorised for issue in 
accordance with a resolution of the directors on 20 September 2012.

The financial report includes financial statements for the consolidated entity consisting of Brickworks Limited and its subsidiaries (“the 
Group”).

Basis of preparation and Statement of compliance

(a) 
The financial statement is a general purpose financial statement that has been prepared in accordance with the requirements of the 
Corporations Act 2001 and Australian Accounting Standards.

The financial statement complies with Australian Accounting Standards and International Financial Reporting Standards (IFRS) as 
issued by the International Accounting Standards Board.

These financial statements have been prepared under the historical cost convention, except for available-for-sale financial assets, 
held for trading financial assets, derivatives and investment property, which have been measured at fair value.

New accounting standards and interpretations

(b) 
The principal accounting policies adopted in the preparation of the financial statement are set out below.  These policies have been 
consistently applied to all the years presented, unless otherwise stated.  

There were no accounting standards that became effective during the year that impacted on the group’s financial statements.

Principles of consolidation

(c) 
The  consolidated  financial  statements  are  those  of  the  consolidated  entity,  comprising  Brickworks  Ltd  (the  parent  entity)  and  all 
entities that Brickworks controlled from time to time during the period and at reporting date.  Control exists where Brickworks has the 
capacity to dominate the decision-making in relation to the financial and operating policies of another entity so that the other entity 
operates with Brickworks to achieve the objectives of Brickworks.

There are no dissimilarities in reporting periods or accounting policies between Brickworks or any of its controlled entities.

Investments in subsidiaries in the parent entity financial statements are shown at cost.

All inter-company balances and transactions between entities in the economic entity, including any unrealised profits or losses, have 
been eliminated on consolidation.  

Where controlled entities have entered or left the economic entity during the period, their operating results have been included from 
the date control was obtained or excluded from the date control ceased.

Revenue

(d) 
Sales revenue is recognised when the significant risks and rewards of ownership of the items sold have passed to the buyer, and the 
revenue is also able to be measured reliably.

For revenue from the sale of goods, this occurs upon the delivery of goods to customers.

For revenue from the sale of land held for resale, this is recognised at the point at which any contract of sale in relation to industrial 
land has become unconditional, and at which settlement has occurred for residential land.

Revenue from construction contracts is recognised by reference to the stage of completion of a contract or contracts in progress at 
reporting date or at the time of completion of the contract and billing to the customer.  Stage of completion is measured by reference 
to the number of units installed as a percentage of the number of units for the total contract, which is determined under the contract 
with the customer.  As the number of units is defined in the contract, any level of judgement required is minimal.

Interest revenue is recognised on a time proportionate basis that takes into account the effective interest rate applicable to the net 
carrying amount of the financial asset.

Dividend revenue is recognised when the right to receive a dividend has been established.  Dividends received from associates and 
joint venture entities are accounted for in accordance with the equity method of accounting.

Rental revenue from investment properties is accounted for on a straight line basis over the lease term.

Profits on disposal of investments and property, plant and equipment are recognised at the point where title to the asset has passed.

All revenue is stated net of the amount of goods and services tax (GST).

Finance costs

(e) 
Borrowing costs incurred for the construction of a qualifying asset are capitalised up to the point that the asset is ready for its intended 
use.  Other finance costs are recognised as an expense over the period to which the expense relates.

 (f) 

Income tax

Current tax
Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the taxable profit or loss for 
the period.  It is calculated using tax rates and tax laws that have been enacted or substantively enacted by reporting date.  Current 
tax for current and prior periods is recognised as a liability or asset to the extent that it is unpaid or refundable.

28

NOTE 1:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
 (f) 

Income tax (cont)

Deferred tax
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax 
bases of assets and liabilities and their carrying amounts in the financial statements.  The tax cost base of assets is calculated based 
on management’s intention for that asset on either use or sale as appropriate.  No deferred income tax will be recognised from the 
initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or 
loss.  In addition, no deferred income tax is recognised for a taxable temporary difference arising from an investment in a subsidiary, 
associate or joint venture where the timing of the reversal of the temporary difference can be controlled and it is probable that the 
difference will not reverse in the foreseeable future.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled.  
Deferred tax is credited in the income statement except where it relates to items that may be credited directly to equity, in which case 
the deferred tax is adjusted directly against equity.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change 
will occur in income taxation legislation and the anticipation that the economic entity will derive sufficient future assessable income to 
enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

Deferred income tax assets are recognised to the extent that it is probable that future taxable profits will be available against which 
deductible temporary differences can be utilised.  These amounts are reviewed at each balance date.

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 and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.

Tax consolidation
Brickworks  Limited  and  its  wholly-owned  Australian  subsidiaries  have  formed  an  income  tax  consolidated  group  under  the  Tax 
Consolidation regime.  Brickworks is the head entity of that group.  The tax consolidated group has entered a tax sharing agreement 
whereby each company in the group contributes to the income tax payable based on the current tax liability or current tax asset of 
the entity.  These tax amounts are measured as if each entity in the tax consolidated group continues to be a standalone taxpayer 
in its own right.  Such amounts are reflected in amounts receivable from or payable to other entities in the group.  In addition, the 
agreement provides for the allocation of income tax liabilities between the entities should the head entity default on its tax payment 
obligations.  At balance date, the possibility of default is remote.

Tax expense, deferred tax liabilities and deferred tax assets arising from temporary differences of the members of the tax consolidated 
group are recognised in the separate financial statements of the members of the tax consolidated group.  Any current tax liabilities 
and assets and deferred tax assets arising from unused tax losses and tax credits of the members of the tax consolidated group are 
recognised by the parent company (as head entity of the tax consolidated group).

Earnings per share

(g) 
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  period, 
adjusted for bonus elements in ordinary shares issued during the period.

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 assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.  Diluted earnings 
per share is shown as being equal to basic earnings per share if potential ordinary shares are non-dilutive to existing ordinary shares.

Cash and cash equivalents

(h) 
Cash and cash equivalents on the balance sheet includes cash on hand, deposits held at call with banks, and other short-term highly 
liquid investments with original maturities of three months or less.  Bank overdrafts are shown within borrowings in current liabilities in 
the balance sheet.

Cash and cash equivalents for the cash flow statement are shown as a net of the cash assets and bank overdraft liability.

Cash and cash equivalents are stated at nominal value.

Receivables

(i) 
Trade receivables are recognised and carried at original invoice amount less a provision for any uncollectible debts.  A provision for 
doubtful debts is established when there is existence of objective evidence that the Group may not be able to collect the debts.  Bad 
debts are written off against the provision for doubtful debts as incurred, when there is objective evidence that the Group will not be 
able to recover the debt.  Objective evidence of an impairment loss can include when a debtor is unable to be physically located, or 
when a report from a liquidator or administrator of a debtor indicates that recovery of any amounts outstanding is unlikely.

Receivables from related parties are recognised and carried at nominal amounts due.

Inventories

(j) 
Raw  materials  are  measured  at  the  lower  of  actual  cost  and  net  realisable  value.    Finished  goods  are  measured  at  the  lower  of 
standard cost and net realisable value.  The cost of manufactured products includes direct materials, direct labour and an appropriate 
portion of variable and fixed overheads.  Overheads are applied on the basis of normal operating capacity.  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.

Land held for resale

(k) 
Land held for development and resale is recognised when properties have been identified and incorporated into specific developments 
that have been approved by relevant planning authorities and commenced. These properties are valued at the lower of cost and fair 
value less costs to sell. Cost includes the cost of acquisition and development.

29

NOTE 1:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
(l) 
Property, plant and equipment
Land is carried at cost less any impairment losses.

Plant and equipment (including buildings) are measured at cost, less depreciation and impairment losses.

The  carrying  amounts  of  property,  plant  and  equipment  are  reviewed  for  impairment  when  events  or  changes  in  circumstances 
indicate  the  carrying  value  may  not  be  recoverable.    For  an  asset  that  does  not  generate  largely  independent  cash  inflows,  the 
recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs.  The recoverable amount is the 
higher of fair value less costs to sell, and the value in use, assessed on the basis of the expected net cash flows that will be received 
from the assets employment and subsequent disposal.  The expected net cash flows have been discounted to their present values in 
determining recoverable amounts, using pre-tax discount rates.

Subsequent costs are included in the asset’s carrying amount only when it is probable that future economic benefits associated with 
the item will flow to the group and the cost of the item can be measured reliably.  All other repairs and maintenance are charged to 
the income statement during the financial period in which they are incurred.

Depreciation
The depreciable amount of all fixed assets including building and capitalised lease assets, but excluding freehold land, is depreciated 
over their useful lives to the economic entity commencing from the time the asset is held ready for use. Leasehold improvements are 
depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The depreciation rates used for each class of depreciable assets are:

Class of fixed asset 

Depreciation rate

Buildings 

2.5% - 4.0% prime cost

Plant and equipment 

4.0% - 33.0% prime cost; 7.5% - 22.5% diminishing value

The assets’ residual values and useful lives 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 on disposal with the carrying amount of the asset at the time 
of disposal.  These gains and losses are included in the income statement.  When previously revalued assets are sold, amounts 
included in the revaluation reserve relating to that asset are transferred to retained earnings.

Leases

(m) 
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses 
on a straight line basis over the term of the lease.

Leases of fixed assets are classified as finance leases where substantially all the risks and benefits incidental to the ownership of the 
asset, but not the legal ownership, are transferred to entities in the economic entity.

Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased 
property  or  the  present  value  of  the  minimum  lease  payments,  including  any  guaranteed  residual  values.    Lease  payments  are 
allocated between the reduction of the lease liability and the lease interest expense for the period.

Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely that the economic entity will 
obtain ownership of the asset, or over the term of the lease.

Financial assets

(n) 
Regular  way  purchases  and  sales  of  investments  are  recognised  and  derecognised  on  trade  date  where  purchase  or  sale  of  an 
investment  is  under  a  contract  whose  terms  require  delivery  of  the  investment  within  the  timeframe  established  by  the  market 
concerned, and are initially measured at cost, net of transaction costs.

Financial  assets  are  classified  into  the  following  specified  categories:  financial  assets  at  fair  value  through  profit  or  loss,  held-to-
maturity investments, available-for-sale financial assets, and loans and receivables.  The classification depends on the nature and 
purpose of the financial assets and is determined at the time of initial recognition.

Financial assets at fair value through profit and loss (held for trading)

The  Group  has  classified  certain  shares  as  financial  assets  at  fair  value  through  profit  or  loss.    Financial  assets  held  for  trading 
purposes are classified as current assets and are stated at fair value (subsequent to initial recognition), with any resultant gain or loss 
recognised in profit or loss.

Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the 
Group’s management has the positive intention and ability to hold to maturity.  These investments are carried at amortised cost using 
the effective interest method, with any gains or losses recognised in income when the investments are derecognised or impaired.

Available-for-sale financial assets
Certain shares held by the Group are classified as being available-for-sale and are stated at fair value (subsequent to initial recognition).  
Gains and losses arising from changes in fair value are recognised directly in reserves, until the investment is disposed of, at which 
time the cumulative gain or loss previously recognised in the reserve is included in profit or loss for the period.

The fair value of financial instruments traded in active markets is based on quoted market bid prices at the balance sheet date.  Where 
shares are held in listed entities that are not actively traded on the market, quoted marked bid prices are used as the best information 
on the amount obtainable from an arms length transaction.

Loans and Receivables
Trade receivables, loans and other receivables are recorded at amortised cost less impairment.

30

NOTE 1:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
(n) 

Financial assets (cont) 

Derecognition
Sales of investments are recognised on trade date – the date the Group commits to sell the asset.  Financial assets are derecognised 
when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred 
substantially all the risks and rewards of ownership.

Impairment
The Group assesses at each balance date whether there is objective evidence that a financial asset or group of financial assets 
is impaired.  In the case of equity securities classified as available-for-sale, a significant or prolonged decline in the fair value of a 
security below its cost is considered in determining whether the security is impaired.  If any such evidence exists for available-for-sale 
financial assets, the cumulative loss is removed from equity and recognised in the income statement.  Impairment losses recognised 
in the income statement on equity instruments classified as available-for-sale are not reversed through the income statement.

Investments in associates

(o) 
Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding 
of between 20% and 50% of the voting rights.  Investments in associates are accounted for in the parent entity financial statements 
using  the  cost  method  and  in  the  consolidated  financial  statements  using  the  equity  method  of  accounting,  after  initially  being 
recognised at cost.

Under the equity method, the investment in the associate is carried in the consolidated balance sheet at cost plus post acquisition 
changes in the Group’s share of net assets of the associate.  Goodwill relating to an associate is included in the carrying amount of 
the investment and is not amortised.  After applying the equity method, the Group determines whether it is necessary to recognise 
an additional impairment loss with respect to the net investment in the associate.  The consolidated income statement reflects the 
Group’s share of the results of operations of the associate.

Where there has been a change recognised directly in the associate’s equity, the Group recognises its share of any changes and 
discloses this in the consolidated statement of movements in equity.

Where  reporting  dates  of  associates  are  not  identical  to  the  Group,  the  financial  information  used  is  the  last  publicly  available 
information, but in any event is no older than 3 months from the Group’s balance date.  The associate’s accounting policies conform 
to those used by the Group for like transactions and events in similar circumstances.

Investments in joint ventures

(p) 
Investments in joint ventures are accounted for in the parent entity financial statements using the cost method and in the consolidated 
financial statements using the equity method of accounting, after initially being recognised at cost.

Under the equity method, the investment is carried in the consolidated balance sheet at cost plus post acquisition changes in the 
Group’s share of net assets of the joint venture.  The consolidated income statement reflects the Group’s share of the results of 
operations of the joint ventures.

Where reporting dates of joint ventures are not identical to the Group, the financial information used is the last publicly available 
information, but in any event is no older than 3 months from the Group’s balance date.

Profits or losses on transactions with the joint venture are eliminated to the extent of the Group’s ownership interest until such time 
as they are realised by the joint venture on sale.

Investment property

(q) 
Investment property, which is property held to earn rentals and/or for capital appreciation, is measured initially at its cost, including 
transaction costs.  Subsequent to initial recognition, investment property is  measured at fair  value.   Gains or losses arising  from 
changes in the fair value of investment property are included in profit or loss in the period in which they arise.

(r) 

Intangibles

Goodwill
Goodwill is initially recorded at the amount by which the purchase price for a business or for an ownership interest in a controlled entity 
exceeds the fair value attributed to its net assets (including contingent liabilities) at the date of acquisition. Goodwill on acquisition 
of associates is included in investments in associates. Any goodwill acquired in a business combination is allocated to each of the 
cash generating units (CGU’s) expected to benefit from the combination’s synergies.  Impairment is  determined by assessing the 
recoverable amount of the CGU to which the goodwill relates.  Where this recoverable amount is less than the carrying amount, an 
impairment loss is recognised.  Impairment losses recognised for goodwill are not subsequently reversed.

Goodwill is tested for impairment annually and when indicators of impairment exist, and following initial recognition is carried at cost 
less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating 
to the entity sold. 

Log licences
Timber access rights are valued at cost on acquisition.  If the timber access right is considered to have an indefinite life, the right is 
carried at cost less any impairment write down required to ensure it is not carried in excess of recoverable amount.  If the right has 
a definite life, it is amortised on a straight line basis over the expected future life of that right, which varies according to the term of 
the issue.

Brand names
Purchased  brand  names  have  a  finite  useful  life  and  are  carried  at  cost  less  accumulated  amortisation  and  impairment  losses.  
Amortisation is calculated using the straight line method to allocate the cost of brand names over their estimated useful lives.

31

Acquisition of assets

NOTE 1:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
(s) 
The purchase method of accounting is used to account for all acquisitions of assets (including business combinations) regardless of 
whether equity instruments or other assets are acquired.  Cost is measured as the fair value of the assets given, shares issued or 
liabilities incurred or assumed at the date of exchange. Costs directly attributable to business combinations are expensed as non-
regular items in the period in which the acquisition is settled. Where equity instruments are issued in an acquisition, the value of the 
instruments is their published market price at the date of exchange.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their 
fair values at the acquisition date.  The excess of the cost of acquisition over the fair value of the Group’s share of the identifiable 
net assets acquired is recorded as goodwill.  If the cost of acquisition is less than the fair value of the net assets of the subsidiary 
acquired,  the  difference  is  recognised  directly  in  the  income  statement,  but  only  after  a  reassessment  of  the  identification  and 
measurement of the net assets acquired. 

Impairment of assets

(t) 
Assets that have an  indefinite  useful  life  are  not subject  to amortisation  and  are  tested annually  for impairment.   Assets  that  are 
subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount 
may not be recoverable.

An  impairment  loss  is  recognised  for  the  amount  by  which  the  asset’s  carrying  amount  exceeds  its  recoverable  amount.  The 
recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.  In assessing value in use, the estimated 
future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the 
time value of money and the risks specific to the asset.  For the purposes of assessing impairment, assets are grouped at the lowest 
levels for which there are separately identifiable cash flows (cash generating units).

Non-financial assets other than goodwill that have had an impairment write-down are reviewed for possible reversal of the impairment 
at each subsequent reporting date.

Payables

(u) 
Trade payables and other accounts payable are recognised when the Group becomes obliged to make future payments resulting 
from the purchase of goods and services.  

Deposits  received  on  land  sale  agreements  relate  to  amounts  received  as  deposits  on  pending  property  transactions  where  the 
revenue and associated profit has not been brought to account due to uncertainty surrounding the completion of the transaction.

Provisions

(v) 
Provisions are recognised when the Group has a present obligation, the future sacrifice of economic benefits is probable, and the 
amount of the provision can be measured reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting 
date, taking into account the risks and uncertainties surrounding the obligation.  Where a provision is measured using the cash flows 
estimated to settle the present obligation, its carrying amount is the present value of those cash flows.  If the effect of the time value of 
money is material, provisions are discounted using a pre-tax discount rate that reflects the risks specific to the liability.  Any increase 
in the provision due to the passage of time is recognised as a borrowing cost. 

Employee benefits

(w) 
Provision is made for the Company’s liability for employee benefits arising from services rendered by employees to balance date. 
Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the 
liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of 
the estimated future cash outflows to be made for those benefits.  Consideration is made of expected future wage and salary levels, 
employee departures and periods of service.  Expected future payments are discounted using market yields at the reporting date on 
national government bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash flows.

Share-based payments
Share-based compensation benefits are provided to employees through the Brickworks Employee Share Plan, details of which can be 
found in the Remuneration Report in the director’s report.  Unvested shares are included in contributed equity as Reserved Shares.  
The fair value of the shares (market value at purchase date) is recognised as an employee benefits expense with a corresponding 
increase in equity when the employees become entitled to the shares.

Restoration and rehabilitation

(x) 
The landfill opportunities created through the extraction of clay and shale is considered to be a valuable future resource. No provision 
is made for future rehabilitation costs when the rehabilitation process is expected to be cash flow positive.

Where the relevant site is identified as being unable to be used for landfill purposes once the clay and shale reserves are exhausted, 
a provision is generated.  This provision is raised based on the expected net present value of future cash flows associated with the 
total rehabilitation cost of the site, and charged to expenses on a tonnes extracted basis. 

Interest bearing liabilities

(y) 
Borrowings are initially recognised at fair value, net of transaction costs incurred.  Borrowings are subsequently measured at amortised 
cost.  Any difference between the proceeds 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 balance sheet date.  Where the Group expects that it will continue to satisfy the criteria under its banking 
agreement that ensures the financier is not entitled to call on the outstanding borrowings, and the term is greater than 12 months, the 
borrowings are classified as non-current.

32

NOTE 1:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
(z) 
Debt  and  equity  instruments  are  classified  as  either  liabilities  or  as  equity  in  accordance  with  the  substance  of  the  contractual 
arrangement.

Financial instruments issued by the Company

Transaction costs arising on the issue of financial instruments are recognised directly as a reduction, net of tax, of the proceeds of 
the financial instruments to which the costs relate.  If the financial instrument has an identifiable lifespan, these costs are amortised 
in the income statement over the period of the instrument.

Interest and dividends are classified as expenses or as distributions of profit consistent with the classification of the related debt or 
equity instruments.

Derivatives

(aa) 
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured 
to their fair value at each reporting date.  The method of recognising the resulting gain or loss 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 fair value hedges or cash flow hedges.

The Group documents at the inception of the transaction the relationship between hedging instruments and hedge items, as well as 
its risk management objective and strategy for undertaking various hedge transactions.  The Group also documents its assessment, 
both  at  inception  and  on  an  ongoing  basis,  of  whether  the  derivatives  that  are  used  in  hedging  transactions  have  been  and  will 
continue to be highly effective in offsetting changes in fair values or cash flows of hedged items.

Fair value hedge
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, 
together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

Cash flow hedge
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in 
equity in reserves.  The gain or loss relating to the ineffective portion is recognised immediately in the income statement.  Amounts 
accumulated in equity are recycled in the income statement in the periods when the hedged item will affect profit or loss. 

When  a  hedging  instrument  expires  or  is  terminated,  or  when  a  hedge  no  longer  meets  the  criteria  for  hedge  accounting,  any 
cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately 
recognised in the income statement.  When a forecast transaction is no longer expected to occur, the  cumulative gain or loss that 
was reported in equity is transferred to the income statement.

Derivatives that do not qualify for hedge accounting
Certain derivative instruments do not qualify for hedge accounting.  Changes in the fair value of any such instrument are recognised 
immediately in the income statement.

Fair  value  of  forward  currency  contracts  is  calculated  by  reference  to  current  forward  exchange  rates  for  contracts  with  similar 
maturity profiles.  The fair value of interest rate swap contracts is determined by reference to market values for similar instruments.

Derecognition of financial liabilities

(ab) 
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires, with any resulting gain 
or loss taken to the income statement.

Government grants

(ac) 
Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received 
and the Group will comply with all attached conditions.

Grants relating  to costs are deferred and recognised  in the  income statement over  the period  necessary to match them with the 
costs that they are intended to compensate.  Grants relating to the purchase of fixed assets are included in non-current liabilities as 
deferred income and credited to the income statement on a straight-line basis over the expected lives of the related assets.

Reserved shares

(ad) 
Own equity instruments which are acquired for later payment as employee share-based payment awards are deducted from equity.  
These shares are held in trust by the trustee of the Brickworks Deferred Employee Share Plan and vest in accordance with the conditions 
attached to the granting of the shares, as outlined in the Remuneration Report.  The fair value of the shares (market value at purchase 
date) is recognised as an employee benefits expense with a corresponding increase in equity when the employees become entitled to 
the shares. No gain or loss is recognised in profit or loss on the purchase, sale or issue of the Group’s own equity instruments.

Operating segments

(ae) 
An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur 
expenses, whose operating results are regularly reviewed by the Group’s chief operating decision maker to make decisions about 
resources  to  be  allocated  to  the  segment  and  assess  its  performance,  and  for  which  discrete  financial  information  is  available.  
Operating segments have been identified based on the information provided to the Managing Director.

The Group aggregates two or more operating segments when they have similar economic characteristics, and the segments are 
similar in each of the following respects:

• 
• 
• 
• 
• 

Nature of the products;
Nature of the production process;
Type or class of customer for the products;
Methods used to distribute the products; and
Nature of the regulatory environment.

33

NOTE 1:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) 
(ae)    Operating segments (cont.)
Management has determined that reportable segments are based around products.  A number of identified operating segments have 
been aggregated to form both the Building Products segment and the Property segment.

The  accounting  policies  used  by  the  Group  in  reporting  segments  internally  are  the  same  as  those  used  by  the  Group  in  these 
consolidated financial statements.

Goods and Services Tax (GST)

(af) 
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable 
from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part 
of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST.

Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and   financing 
activities, which are disclosed as operating cash flows.

Foreign currency transactions and balances

(ag) 
Functional and presentation currency

The functional currency of each of the group’s entities is measured using the currency of the primary economic environment in which 
that entity operates. The consolidated financial statements are presented in Australian dollars which is the parent entity’s functional 
and presentation currency.

Transaction and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transaction. 
The balances of foreign currency monetary items are translated at the period end exchange rate.  The balances of non-monetary 
items measured at historical cost continue to be carried at the exchange rate at the date of the transaction.  Non-monetary items 
measured at fair value are reported at the exchange rate at the date when fair values were determined.

Exchange differences arising on the translation of monetary items are recognised in the income statement, except where deferred in 
equity as a qualifying cash flow or net investment hedge.

Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the extent that the gain or 
loss is directly recognised in equity, otherwise the exchange difference is recognised in the income statement.

Group companies
The financial results and position of foreign operations whose functional currency is different from the Group’s presentation currency 
are translated as follows:

• 

• 

• 

Assets and liabilities are translated at period end exchange rates prevailing at that reporting date.

Income and expenses are translated at average exchange rates for the period. 

Retained profits are translated at the exchange rates prevailing at the date of the transaction.

Exchange differences arising on translation of foreign operations are transferred directly to the Group’s foreign currency translation 
reserve  in  the  balance  sheet.   These  differences  are  recognised  in  the  income  statement  in  the  period  in  which  the  operation  is 
disposed.

Significant accounting estimates and assumptions

(ah) 
The  Group  makes  estimates  and  assumptions  concerning  the  future,  and  the  resulting  accounting  estimates  will,  by  definition, 
seldom equal the related actual results.  Estimates and judgements are continually evaluated and are based on historical experience 
and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be 
reasonable under the circumstances.

Judgements that are made by management in the application of accounting standards that have significant effects on the financial 
statements, and estimates with a significant risk of material adjustments in the next year, are disclosed in the relevant notes to the 
financial statements, where applicable. 

Accounting standards issued but not yet effective

(ai) 
A number of Australian accounting standards have been issued but have not been adopted for the financial year ended 31 July 2012.

The Group has assessed the impact of the following new or amended standards and interpretations which are effective for the group, 
and are of the opinion that there will not be any changes required to amounts recognised in the financial statements.  It is anticipated 
that there will be some changes to information disclosures required:

Amendments to financial statements – 2011-9 (effective application for Brickworks 1 August 2012)

AASB 12: Disclosures of Interests in Other Entities (effective application for Brickworks 1 August 2013)

AASB 13: Fair Value Measurement (effective application for Brickworks 1 August 2013)

AASB 119: Employee Benefits (effective application for Brickworks 1 August 2013)

Annual improvements 2009-2011 cycle (IFRS amendment yet to be adopted by AASB) (effective application for Brickworks 
1 August 2013)

The Group is still assessing the impact of the following new or amended standards:

AASB 9: Financial Instruments (effective application for Brickworks 1 August 2015)

AASB 10: Consolidated Financial Statements (effective application for Brickworks 1 August 2013)

AASB 11: Joint Arrangements (effective application for Brickworks 1 August 2013)

34

NOTE 2:  PARENT ENTITY INFORMATION

Information relating to Brickworks Ltd

Current assets

Total assets

Current liabilities

Total liabilities

Issued capital
Reserves
- capital profits
- equity adjustment
- general
- share based payments

Total reserves

Retained earnings

Total shareholders' equity

Net profit after income tax

Total comprehensive income

31 JULY 12
$000

31 JULY 11
$000

2,070 

26,817

992,978 

925,906

2,353 

2,523

431,239 

431,934

325,802 

325,018

84,479 
- 
11,645 
3,388 

99,512 

136,426 

84,479
734
11,645
2,445

99,303

70,059

561,740 

494,380

126,540 

125,806 

34,008

34,435

Information  regarding  guarantees  entered  into  by  the  parent  entity  in  relation  to  the  debts  of  its  subsidiaries  are  contained  in  
note 29(d). 

There are no contingent liabilities or contractual commitments for the acquisition of property, plant or equipment of the parent 
entity.

NOTE 3:  REVENUE

Trading revenue
Sale of goods
Sale of current investments
Sale of land held for resale

Other operating revenue

Interest received - other corporations
Dividends received - other corporations
Rental revenue
Other

Total operating revenue

Other income

Net gain on sale of property, plant and equipment
Other items

Total other income

CONSOLIDATED

31 JULY 12
$000

31 JULY 11
$000

547,548 
- 
2,779 

606,125 
6 
21,623 

550,327 

627,754

1,083 
1 
1,499 
4,001 

1,717 
1 
1,156 
4,987 

556,911 

635,615

(61)
1

(60)

3,528
13

3,541

35

NOTE 4:  INCOME AND EXPENSES

(a) Specific expense disclosures

Depreciation and amortisation
- Buildings
- Leasehold improvements
- Plant and equipment

Total depreciation

- Intangible assets

Total amortisation

NOTE

CONSOLIDATED

31 JULY 12
$000

31 JULY 11
$000

3,810 
- 
20,808 

24,618

171

171

3,694 
45 
22,531 

26,270

299

299

Total depreciation and amortisation expense

24,789

26,569

Finance costs paid
- Paid to other corporations
- Mark to market swap valuation

Total finance costs expensed
Finance costs capitalised

Total finance costs

Rental expense on operating leases
- Minimum lease payments

Unrealised loss / (gain) on carrying value of
 held for trading financial assets

Employee benefit expense
Defined contribution superannuation expense
Research and development expenditure
Bad and doubtful debts - trade debtors
Write down of inventories to net realisable value

20,823 
4,392 

25,215 
540 

25,755 

20,390 
765 

21,155 
- 

21,155 

18,324 

13,382 

3 

1 

100,091 
8,079 
1,353 
554 
4,150 

100,853 
8,497 
386 
553 
1,405 

(b) Property related revenues

The following items are relevant in explaining the financial performance for the year:

Profit from sale of land held for resale

1,269 

16,420

Development profits from joint ventures
Fair value adjustment on completion of developments
Fair value adjustment of properties
Property Trust rental profits

- 
4,414 
5,255 
9,025 

-
715
4,738 
7,104 

Total profits / (loss) from Property Trusts

26

18,694 

12,557

(c) Significant items

Significant one-off transactions of associate (1)

756 

88,686 

Write down of assets to recoverable value
 - Property, plant & equipment (2)
 - Building products inventory (3)

Costs on closure of manufacturing facilities (2)

Costs on start up of manufacturing facilities (3)

Impairment of Goodwill (2)

Business acquisition costs (2)

Other significant items (2)&(3)

Significant items before income tax

(4,169)
(4,192)

(6,927)

(4,147)

(31,627)

(1,947)

(3,885)

(56,138)

(14,021)
(1,084)

(8,651)

-

-

(2,751)

(2,511)

59,668 

36

 
 
NOTE 4:  INCOME AND EXPENSES (cont.)

Income tax benefit arising from WHSP carrying value (4) (5)
Income tax benefit / (expense) on significant items (4)

(1)  Disclosed in "Share of net profits of associates" line on Income Statement
(2)  Disclosed in "Other expenses" line on Income Statement
(3)  Disclosed in "Cost of Sales" line on Income Statement
(4)  Disclosed in “Tax expense” line on Income Statement
(5)  Prior year expense of $25.6 million not included in significant items

NOTE 5:  INCOME TAX

(a) Current Tax

Deferred Tax
Under / (over) provided in prior years

(b) Reconciliation of income tax expense to prima facie tax payable

Prima facie tax payable on profit / (loss) before income tax at 30%
Adjust for tax effect of: 
  rebateable dividends
  deferred tax items (recognised) / derecognised
  share of net profits of associates
  other non-allowable items
Overprovision for income tax in prior year

Income tax expense / (benefit) attributable to profit / (loss)

(c) Aggregate current and deferred tax arising in the

reporting period and not recognised in net profit or loss
Current tax - debited / (credited) directly to equity

Share of increments / (decrements) in reserves
 attributable to associates

Deferred tax - debited / (credited) directly to equity

NOTE 6:  AUDITORS’ REMUNERATION 

Auditor of the parent entity
   Audit of the financial report
   Other regulatory audits
   Other assurance services

CONSOLIDATED

31 JULY 12
$000

31 JULY 11
$000

12,992 
7,580 

(35,566)

-
(17,900)

41,768 

(276)
(15,043)
(887)

(16,206)

688 
27,416 
(143)

27,961 

8,130 

51,154 

(12,885)
75 
(20,320)
9,681 
(887)

(16,206)

(14,572)
(3,192)
(6,242)
956 
(143)

27,961 

-

- 

(5,067)

(5,067)

(5,067)

(30,930)

(30,930)

(30,930)

444 
9 
18 

471 

424 
8 
19 

451

The auditor of the Brickworks Ltd Group is Ernst & Young.  Details of non-audit services provided by Ernst & Young are outlined 
in the Directors’ Report.

37

NOTE 7:  DIVIDENDS

Final ordinary dividend (prior year) of 27.0 cents per share paid
 1/12/11 (2010 - 27.0c paid 01/12/10)
Interim ordinary dividend of 13.5 cents per share paid 15/05/12
 (2011 - 13.5c paid 17/05/11)
Group’s share of dividend received by associated company

Proposed final ordinary dividend of 27 cents per share not
 recognised as a liability at year end (2011 27.0c)

CONSOLIDATED

31 JULY 12
$000

31 JULY 11
$000

39,843 

39,843 

19,922 
(11,392)

48,373 

19,922 
(11,252)

48,513 

39,843 

39,843 

All dividends paid and proposed have been or will be fully franked at the tax rate of 30%

Balance of franking account at year end adjusted
 for franking credits arising from payment of income
 tax payable and dividends recognised as receivables

Impact on franking account balance of dividends
 not recognised

151,391 

159,909 

(17,076)

(17,076)

There were no dividend reinvestment plans in operation at any time during or since the end of the financial year.

NOTE 8:  EARNINGS PER SHARE

(a)  Reconciliation of earnings

Net profit attributed to members of the parent entity

43,304 

142,551

Earnings used in the calculation of basic EPS

Earnings used in the calculation of diluted EPS

(b) Weighted average number of ordinary shares 
outstanding during the year used in calculation
of basic EPS
Weighted average number of ordinary shares 
outstanding during the year used in calculation
of diluted EPS

Basic earnings per share

Diluted earnings per share

NOTE 9:  CASH ASSETS

Cash on hand
Deposits at call

43,304 

43,304 

142,551

142,551

No.

No.

147,567,333

147,482,887

147,567,333

147,482,887

cents

cents

29.3 

29.3 

96.7 

96.7 

$000

$000

14,003 
550 

14,553 

28,335 
22,282 

50,617 

Deposits at call have carrying amounts that reasonably approximate fair value.  Deposits are for periods of up to one month,  
and earn interest at the respective short term deposit rates.

38

NOTE 10:  RECEIVABLES

(a) Current

Trade receivables
Less: provision for doubtful debts

Less: advance payments by customers

Net trade receivables

Add: other debtors

CONSOLIDATED

31 JULY 12
$000

31 JULY 11
$000

78,067 
668 

77,399 

1,794 

75,605 

3,749 

79,354 

76,758 
890 

75,868 

2,719 

73,149 

10,490 

83,639 

(b) Non-Current

Amount receivable from associated companies

- 

201 

(c) Movement in provision for doubtful debts
Balance at the beginning of the year
Additional provisions recognised
Trade debts written off
Reversals of provisions not required

Balance at the end of the year

(d) Receivables past due

Receivables past due but not impaired
Past due 0 - 30 days
Past due 30+ days

890 
794 
(776)
(240)

668 

3,267 
1,808 

5,075 

731 
842 
(394)
(289)

890 

3,639 
1,982 

5,621 

Trade receivables and other debtors have carrying amounts that reasonably approximate fair value.  Average terms are 30 days 
from statement.

Before allowing new customers to trade on credit terms, an analysis of the potential customers credit quality is performed using 
external credit reporting agencies and internal reporting to determine whether an account will be opened and the amount of the 
limit to be applied to that account.  Various levels of management are required to approve progressively higher credit limits, with 
individual limits exceeding $1 million reported to the Board.

An analysis of trade receivable balances past due is performed constantly throughout the year, and an allowance is made for 
estimated irrecoverable trade receivables based on historical experience of default, and known information on individual debtors.  
In many instances security is held over individual debtors in the form of personal guarantees. All receivables not impaired are 
expected to be collected in full.

NOTE 11:  HELD FOR TRADING FINANCIAL ASSETS

Share trading portfolio at fair value

11

14

The share trading portfolio represents ordinary shares listed on the ASX, and hence have no maturity date.

39

NOTE 12:  INVENTORIES

(a) Current

Raw materials and stores at cost
Work in progress at cost
Finished goods at cost

Finished goods at net realisable value

(b) Non-Current

Raw materials and stores at cost

NOTE 13:  LAND HELD FOR RESALE

(a) Current

(b) Non-Current

CONSOLIDATED

NOTE

31 JULY 12
$000

31 JULY 11
$000

28,884 
12,303 
121,431 

29,158 
8,960 
114,595 

162,618 

152,713

523 

862

163,141 

153,575

8,301 

8,372

9,657 

14,742 

1,249

23,742

Non-current land held for resale represents portions of properties which have been classified as ready for sale in accordance with 
the accounting policy note.  Exact timing of these sales is unable to be reliably forecast and the sale of these specific blocks is 
not expected to occur within the following 12 months from balance date.  These properties are disclosed in the Property segment 
of note 27.

NOTE 14:  INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investment in associated entities - listed
Investment in jointly controlled entities

25
26

1,086,474 
156,262 

1,059,241 
152,057 

Market value of listed associates

NOTE 15:  PROPERTY, PLANT AND EQUIPMENT

Land 
Freehold land at cost
Leasehold land at cost

Buildings
At cost
Accum depreciation and impairment writedowns

Plant and equipment
At cost
Accum depreciation and impairment writedowns

Add: capital works in progress

Total plant and equipment

1,242,736 

1,211,298 

1,378,436 

1,322,194 

174,605 
235 

175,298 
235 

174,840 

175,533 

161,169 
52,754 

158,839 
47,880 

108,415 

110,959 

402,300 
253,864 

148,436 
18,510 

406,633 
261,976 

144,657 
19,371 

166,946 

164,028 

450,201 

450,520 

40

NOTE 15:  PROPERTY, PLANT AND EQUIPMENT (cont.)
(a) Impairment write-downs

During the period impairment losses totalling $4.2 million were recognised in relation to various assets.  All impairment losses 
are shown in the ‘Other Expenses’ line on the Statement of Comprehensive Income, and all losses are included in the Building 
Products segment (refer note 27).

Significant impairment losses were recognised on the Cardup, Western Australia, brick making assets, following the mothballing 
of this production capacity to reflect the altered competitive landscape in the WA brick market.

The recoverable value of non-current assets has been assessed after considering the economic benefits to be derived over the 
remaining useful life, under a value in use assumption.  The discount rates used in the estimate of value in use are consistent 
with those rates used for goodwill impairment testing as disclosed in note 16(b).

The carrying value of assets that have been subject to recoverable amount write-downs, by class, are outlined below:

Buildings
Assets subject to write-downs
Assets not subject to write-downs

Plant and equipment
Assets subject to write-downs
Assets not subject to write-downs

CONSOLIDATED

31 JULY 12
$000

31 JULY 11
$000

- 
108,415 

108,415 

- 
166,946 

- 
110,959 

110,959 

622 
163,406 

166,946 

164,028 

The carrying amount of temporarily idle buildings, plant and equipment at 31 July 2012 was Nil (2011 Nil).

(b) Reconciliations

Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current 
and previous financial year are set out below.

Consolidated

At 1 August 2010
Cost
Accumulated depreciation

Balance at 1 August 2010

Year ended 31 July 2011
Additions
Assets acquired by purchase of subsidiary
Disposals
Impairment losses
Depreciation expense

Land
$000

Buildings
$000

Plant & Equip.
$000

Total
$000

161,411 
- 

161,411 

9,945 
4,750 
(573)
- 
- 

154,571 
(61,163)

466,036 
(288,786)

782,018 
(349,949)

93,408 

177,250 

432,069 

18,579 
2,898 
- 
(187)
(3,739)

16,094 
7,592 
(542)
(13,835)
(22,531)

44,618 
15,240 
(1,115)
(14,022)
(26,270)

Balance at 31 July 2011

175,533 

110,959 

164,028 

450,520 

Year ended 31 July 2012
Additions
Assets acquired by acquisition of business
Disposals
Impairment losses
Depreciation expense

504 
- 
(1,197)
- 
- 

3,893 
1,504 
(2,166)
(1,965)
(3,810)

24,516 
2,034 
(620)
(2,204)
(20,808)

28,913 
3,538 
(3,983)
(4,169)
(24,618)

Balance at 31 July 2012

174,840 

108,415 

166,946 

450,201 

41

NOTE 16:  INTANGIBLE ASSETS

Goodwill
At cost
Less:   impairment write-downs

Timber access rights
At cost
Less:   accumulated amortisation

Brand names
At cost
Less:   accumulated amortisation

Other intangibles
At cost
Less:   accumulated amortisation

CONSOLIDATED

31 JULY 12
$000

31 JULY 11
$000

284,574 
31,627 

279,339 
- 

252,947 

279,339 

8,541 
1,570 

6,971 

14,300 
5,300 

9,000 

646 
78 

568 

7,141 
1,422 

5,719 

5,300 
5,300 

- 

646 
54 

592 

269,486 

285,650 

(a) Intangible assets with indefinite useful lives

Timber access rights with a carrying value of $6.2 million (2011 $4.8 million) have been assessed as having an indefinite useful 
life.  The main reason for this assessment is that although licences are subject to periodic renewal, the cost of the licence renewal 
is not significant compared to the future economic benefits obtainable under the licence, there is a history of renewals which are 
arranged by management as part of the normal operations of the business, there is a realistic expectation that all conditions for 
renewal will be successfully achieved, and if the licence was not renewed or substantially varied, the issuing authority would be 
liable to pay compensation to the Company.

The remaining timber access rights with an initial cost of $2.3 million are amortised over the life of the supply agreement, which 
was extended during the period and expires in 2017.

The  timber  access  rights  have  been  allocated  to  the  timber  products  Cash  Generating  Unit  (CGU),  which  forms  part  of  the 
building products segment.

Brand names with a carrying value of $9.0 million were acquired through a business combination during the year.  This name 
(Daniel Robertson) has been assessed as having an indefinite useful life, as the brand has been part of the brick industry since 
1853, and Brickworks intends to continue trading under this brand.

The brand names have been allocated to the Vic Bricks CGU, which forms part of the building products segment.

Management’s  assessment  of  the  appropriateness  of  the  carrying  value  of  indefinite  useful  life  intangibles  is  based  on  key 
assumptions which may vary.  In addition to the projected cash flows to be generated by the ongoing use of these licences, these 
are the discount rate (WACC) and the long term growth rate (LTGR).  The rates used in calculating the value in use are consistent 
with the rates outlined surrounding the impairment of goodwill below (note 16(b)).  Given current volatility in financial markets 
generally, it is difficult to predict how these variables may move.  At balance date, it is not expected that a reasonably foreseeable 
movement in the WACC or LTGR would result in an impairment to these assets.

(b) Impairment of Goodwill

(i)  Allocation of goodwill and intangible assets with indefinite useful lives to cash generating units

Goodwill is allocated to the Group’s cash generating units (CGUs) for impairment testing purposes.  At 31 July 2012 the following 
CGU’s have significant allocations of goodwill: Austral Bricks NSW $67.5 million, Austral Bricks WA $47.3 million Austral Bricks 
Vic $72.4 million, Bristile Roofing East Coast $25.9 million and Austral Masonry $18.7 million.  Each of these CGU’s have been 
valued based on value in use, using the assumptions outlined in point (iii) below.

The  remainder  of  goodwill  within  the  business  ($21.1  million)  and  other  intangible  assets  with  indefinite  useful  lives  of  $15.2 
million, is allocated across multiple CGU’s, with no other individual CGU having an allocation that is significant compared to the 
total value of goodwill carried in the business.  The carrying value of goodwill assessed in all these divisions is based on value in 
use, with the exception of the Austral Bricks Qld and Bristile Roofing West Coast CGU’s  which are based on fair value less cost 
to sell using an observable market price.

(ii)  Impairment Charges

The Group tests goodwill and other intangible assets with indefinite useful lives at least annually for any impairment in accordance 
with the accounting policy stated in note 1(r).

42

NOTE 16:  INTANGIBLE ASSETS (cont.)
(b) Impairment of Goodwill  (cont)
     (ii)  Impairment Charges (cont)

At 31 July 2012, a total of $31.6 million of goodwill impairments were recognised due to the ongoing difficulties faced by the 
Australian building materials industry generally.  Consideration was also given to the particularly poor state of the non-mining 
sectors of the Qld and WA economies, an additional manufacturer in the WA market, and an inability to immediately recover the 
full impact of the Carbon Tax through price movements.  Impairments were recognised against Austral Bricks WA ($16.9 million), 
Austral Masonry ($11.2 million), Austral Bricks SA ($1.6 million) and Auswest Timbers ($1.9 million).

(iii)  Key assumptions

The recoverable amount of each CGU is determined on the basis of value-in-use (VIU), unless there is evidence to support a 
higher fair value less cost to sell.

The valuations used to support the carrying amounts of intangible assets (above) and property, plant and equipment (note 15) are 
based on forward looking key assumptions that are by their nature uncertain.  The nature and basis of the key assumptions used 
to estimate the future cash flows and discount rates, and on which the Company has based its projections when determining the 
recoverable value of each CGU, are set out below.

VIU calculations use pre-tax cash flows projections, inclusive of working capital movements, and are based on financial projections 
approved by the Board covering a five-year period. Estimates beyond five years are calculated with a growth rate that reflects the 
long term growth rate for the State (or States) that the CGU predominately operates in. 

The basis of estimation uses the following key operating assumptions:

•   Sales  volumes  are  management  forecasts,  taking  into  account  external  forecasts  of  underlying  economic  activity  for  the 
market  sectors  and  geographies  in  which  each  CGU  operates. A  major  driver  of  sales  volumes  is  housing  approvals  and 
commencements.  Management has assessed the reported forecast housing approval data from sources such as BIS Shrapnel 
and the Housing Industry Association (HIA) over the budget period, and adopted a more conservative opinion overall than these 
independent forecasts.

•   Costs are calculated taking into account historical gross margins, known cost increases, and estimated inflation rates over the 

period that are consistent with locations in which the CGU’s operate.

•   Management expects to obtain sales price growth over the budget period.  The increases assumed differ between by CGU and 
between different states where the CGU operates.  Price rises are considered inherently achievable in a rational market where 
supply of product approximates demand.

•   Long term growth rates used in the cash flow valuation reflect the average 10 year historical growth rates for the states in which 
the  CGU’s  operate  (sourced  from  the Australian  Bureau  of  Statistics).   The  long  term  growth  rate  applied  to  the  significant 
divisions were Austral Bricks NSW 2.0% (2011: 2.5%), Austral Bricks WA 4.0% (2011: 4.0%), Austral Bricks Vic 3.1% (2011: 
3.2%), Bristile Roofing East Coast 3.03% (2011: 3.23%) and Austral Masonry 3.03% (2011: 3.23%).

•   Management uses an independent external advisor to calculate the appropriate discount rate, based on the weighted average 
cost of capital (WACC).  For 2012, the discount rate was 14.18% (2011:  13.83%) and is applied consistently across all CGU’s.

(iv)  Sensitivity to changes in assumptions

For the CGU’s which have had impairments, any adverse changes in assumptions which are not offset by a positive change in 
another assumption would lead to a reduced valuation on a value in use basis, and hence a potential impairment.

There are no CGU’s which have not had an impairment where a reasonably foreseeable change in assumptions would result in 
a material impairment to the carrying value of goodwill or other indefinite useful life intangibles.

(c) Reconciliations
Consolidated

Goodwill
$000

Timber  
access rights
$000

Brand 
Names
$000

Other  
Intangibles
$000

At 1 August 2010
Cost
Accumulated amortisation / impairment

Balance at 1 August 2010

Year ended 31 July 2011
Additions
Amortisation / impairment charge

Balance at 31 July 2011

Year ended 31 July 2012
Additions
Asset acquired through purchase
 of subsidiary
Amortisation / impairment charge

Balance at 31 July 2012

277,310 
- 

277,310 

2,029 
- 

279,339 

5,235 

- 
(31,627)

252,947 

5,300 
(5,300)

- 

- 
- 

- 

- 

9,000 
- 

9,000 

646 
(30)

616 

- 
(24)

592 

- 

- 
(24)

568 

7,141 
(1,147)

5,994 

- 
(275)

5,719 

- 

1,400 
(147)

6,972 

43

Total
$000

290,397 
(6,477)

283,920 

2,029 
(299)

285,650 

5,235 

10,400 
(31,798)

269,487 

NOTE 17:  PAYABLES

Current

Trade payables and accruals

CONSOLIDATED

NOTE

31 JULY 12
$000

31 JULY 11
$000

73,024 

58,863 

Payables have carrying amounts that reasonably approximate fair value.  
Average terms on trade payables are 30 days from statement.

NOTE 18:  INTEREST BEARING LIABILITIES

(a) Non-Current

Commercial bills
Unamortised transaction costs

28

300,000
(1,426)

300,000
(2,071)

298,574

297,929

(b)  Commercial bills

Commercial bills are drawn under either a 12 month facility expiring in August 2012 or a 4 year facility, expiring in June 2015. More 
information on the Group’s borrowing facilities can be found in note 28. 

Interest is payable based on floating rates determined with reference to the BBSY bid rate at each maturity.

The fair value of non-current commercial bills is approximately $274.4 million (2011 $270.9 million).

A portion of the borrowings are hedged using a fixed interest rate swap contract, details of which can be found in notes 19 and 28.

NOTE 19:  DERIVATIVE FINANCIAL INSTRUMENTS

(a) Current asset

Interest rate swap contract

(b) Non-Current liability

Interest rate swap contract

28

28

- 

139 

5,958

1,755 

The  interest  rate  swap  is  being  used  to  hedge  the  exposure  to  changes  in  the  interest  rate  payable  on  its  commercial  bills  
(refer note 18).

NOTE 20:  PROVISIONS

(a) Current

Employee benefits
Remediation
Infrastructure costs
Workers’ compensation
Other

(b) Non-current

Employee benefits
Remediation

19,360 
2,495 
665 
4,634 
4,990 

32,144 

13,018 
9,955 

22,973 

19,757 
2,890 
4,709 
4,642 
2,757 

34,755 

13,994 
11,403 

25,397 

44

NOTE 20:  PROVISIONS (cont.)
(c) Reconciliations
Consolidated

Year ended 31 July 2012
Balance at the beginning of the year
Amounts recognised on acquisition of subsidiary
Additional provisions recognised
Amounts used
Reversals of provisions

Balance at the end of the year

Current 
Non-current

(d) Descriptions

Provision for Remediation

Remediation
$000

Infrastructure
Costs
$000

Workers
Compensation
$000

14,293 
- 
1,065 
(2,315)
(593)

12,450 

2,495 
9,955 

12,450 

4,709 
- 
- 
(4,044)
- 

665 

665 
- 

665 

4,642 
- 
2,437 
(2,445)
- 

4,634 

4,634 
- 

4,634 

Other
$000

2,757 
- 
3,675 
(1,100)
(342)

4,990 

4,990 
- 

4,990 

A  provision  has  been  recognised  for  the  estimated  costs  of  restoring  operational  and  quarry  sites  to  their  original  state  in 
accordance with relevant approvals.  The settlement of this provision will occur as the operational site nears the end of its useful 
life, or once the resource allocation within the quarry is exhausted, which varies based on the size of the resource and the usage 
rate of the extracted material.  In some cases this may extend decades into the future.
Provision for infrastructure costs

A provision has been recognised for Brickworks obligation for the estimated costs of completed infrastructure works in relation to 
certain properties.  The timing of future outflows is expected to occur within the next financial year.
Provision for workers compensation

The Brickworks group self-insures for workers compensation in certain states.  The provision has been based on  independent 
actuarial  calculations  based  on  incidents  reported  before  year  end.   The  timing  of  the  future  outflows  is  dependant  upon  the 
notification and acceptance of relevant claims, and would be expected to be satisfied over a number of future financial periods.

Other provisions

Other provisions are made up from a number of sundry items.

NOTE 21:  NET DEFERRED TAXES

Net deferred taxes

165,713

184,041 

CONSOLIDATED

31 JULY 12
$000

31 JULY 11
$000

The balance comprises temporary differences
 attributable to:
Equity accounted associates
Property, plant and equipment
Timber access rights
Provisions
Deposits received on land sale agreements
Land held for development and resale
Other sundry items

175,157 
11,783 
637 
(14,729)
(423)
1,774 
(8,486)

186,599 
10,135 
328 
(16,126)
86 
2,050 
969 

165,713 

184,041

45

NOTE 22:  CONTRIBUTED EQUITY

Fully paid ordinary shares
Reserved shares

CONSOLIDATED

31 JULY 12
$000

31 JULY 11
$000

332,816 
(7,014)

332,816 
(7,798)

325,802 

325,018

(a) Ordinary shares
Opening balance
Shares issued during the year
Costs associated with shares issued

2012

2011

No. of 
Shares

Value
$000

No. of 
Shares

147,567,333 
- 
- 

332,816 
- 
- 

147,235,904 
331,429 
- 

Value
$000

329,047 
3,779 
(10)

Balance at end of year

147,567,333 

332,816 

147,567,333 

332,816 

Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number of shares 
held.  At shareholder’s meetings each share is entitled to one vote when a poll is called, otherwise each shareholder has one 
vote on a show of hands.

There have been no options issued or on issue at any time during or since the end of the financial year.

The parent does not have authorised capital nor par value in respect of its issued shares.

(b) Reserved Shares
Opening balance
add: bonus shares purchased by share plan
less: bonus shares vested during period

Balance at end of period

644,447 
278,083 
(306,899)

615,631 

(7,798)
(2,882)
3,666 

(7,014)

496,210 
396,509 
(248,272)

644,447 

(6,381)
(4,553)
3,136 

(7,798)

Reserved shares are those shares held by the employee share plans that have not vested to the participant at balance date.

More information on the employee share plans is contained in note 32 of these financial statements.

NOTE 23:  RESERVES

(a) Composition of reserves

- capital profits
- equity adjustment
- general
- foreign currency translation
- share based payments
- associates & JV’s

CONSOLIDATED

31 JULY 12
$000

31 JULY 11
$000

88,102 
(9,251)
36,125 
(2,409)
3,388 
168,471 

88,102 
(13,584)
36,125 
(2,051)
2,445 
185,359 

284,426 

296,396 

46

NOTE 23:  RESERVES (cont.)
(b) Descriptions

Capital profits reserve 
The Capital profits reserve represents amounts allocated from Retained Profits that were profits of a capital nature.

Equity adjustments reserve 
Equity adjustments reserve includes amounts for tax adjustments posted direct to equity.

General reserve 
The General reserve represents amounts reserved for the future general needs of the operations of the entity.

Foreign currency translation reserve 
The Foreign currency translation reserve represents differences on translation of foreign entity financial statements.

Share based payments reserve 
The share based payments reserve represents the value of bonus shares (treasury stock) that have been expensed through 
profit and loss but are yet to vest to the employee.

Associates & JV’s reserve 
The associates reserve represents Brickworks share of its associate’s & JV’s reserve balances.  The Company is unable to 
control this reserve in any way, and does not have any ability or entitlement to distribute this reserve, unless it is received from 
its associates or JV’s in the form of dividends.

NOTE 24:  CASH FLOW INFORMATION

(a) Reconciliation of cash flow from operations to net profit after tax

CONSOLIDATED

NOTE

31 JULY 12
$000

31 JULY 11
$000

Net profit after tax

43,304 

142,551

Non-cash flows in net profit
  Amortisation of intangible assets
  Amortisation of borrowing costs
  Depreciation of non-current assets
  Write down of property, plant & equipment to recoverable value
  Write down of goodwill to recoverable value
  (Profits) / losses on disposal of property, plant & equipment
  (Profits) / losses on sale of investments
  Non cash profit on sale of land held for resale
  Share of profits of associates not received as dividends

Changes in assets and liabilities net of the effects of acquisitions
 of businesses
  (Increase) / decrease in trade and sundry debtors
  (Increase) / decrease in inventories
  (Increase) / decrease in land held for resale
  (Increase) / decrease in prepayments
  (Increase) / decrease in share trading portfolio
  (Increase) / decrease in treasury stock
  Increase / (decrease) in creditors and accruals
  Increase / (decrease) in taxes payable
  Increase / (decrease) in other current provisions
  Increase / (decrease) in other non-current provisions
  Increase / (decrease) in deferred tax liabilities

Net cash flows from / (used in) operating activities

171 
680 
24,618 
4,169 
31,627 
61 
- 
(2,189)
(34,284)

6,955 
(3,991)
- 
(1,466)
3 
784 
16,139 
1,932 
(4,918)
(2,423)
(16,676)

64,496 

299 
1,240 
26,270 
14,021
-
(3,528)
1
-
(111,406)

6,160 
(12,711)
5,092 
(2,896)
1 
2,361 
(7,270)
(188)
2,877 
(567)
26,715 

89,022 

(b) Reconciliation of cash

Cash at the end of the financial year as shown in the 
statement of cash flows is reconciled to items in the 
statement of financial position as follows:
   Cash

9

14,553 

50,617

47

  
NOTE 25: ASSOCIATED COMPANIES

Information relating to significant associates:

Name

Washington H Soul
Pattinson & Co Ltd

Ownership interest

2012
%

2011
%

Carrying value
2012
$000

2011
$000

Profit contribution
2011
2012
$000
$000

42.72 

42.85 

1,086,474 

1,059,241 

67,375 

154,868 

Washington H. Soul Pattinson & Co Ltd (WHSP) is involved in coal, pharmaceutical, telecommunications and investment. WHSP’s 
balance date is 31 July annually.  At balance date WHSP owned 44.48% (2011 44.48%) of issued ordinary shares of Brickworks Ltd.  
WHSP is incorporated in Australia.

(a) Summarised share of associates financial information

Current assets
Non-current assets

Current liabilities
Non-current liabilities

Net assets

Outside equity interest

Revenue

Profit before income tax
Income tax expense
Outside equity interest

Profit after income tax

(b) Share of associates’ expenditure commitments

Capital commitments
Lease commitments

CONSOLIDATED

31 JULY 12
$000

31 JULY 11
$000

840,300 
787,238 

984,007 
772,027 

1,627,538 

1,756,034 

66,966 
81,606 

128,466 
94,637 

148,572 

223,103

1,478,966 

1,532,931 

389,215 

471,782 

1,089,751 

1,061,149 

390,216 

324,969

95,547 
(14,579)
(19,811)

338,230 
(100,071)
(83,291)

61,156 

154,868

- 
*
- 
*

- 

5,681 
39,401 

45,082 

The entity has no legal liability for any expenditure commitments incurred by associates.
* Note:  Associated company (WHSP) figures for 2012 were not publicly available at the time of preparation of this report.

(c) Contingent liabilities of associates

Share of contingent liabilities incurred jointly with other investors 

-

*

14,095 

The entity has no legal liability for any contingent liabilities incurred by associates.
* Note:  Associated company (WHSP) figures for 2012 were not publicly available at the time of preparation of this report.

48

 
NOTE 26:  JOINTLY CONTROLLED ENTITIES

Information relating to significant jointly controlled entities (JV’s) is set out below:

Name

Ownership interest
2011
2012
%
%

Carrying value
2012
$000

2011
$000

Profit contribution
2011
$000

2012
$000

BGAI CDC Trust
BGAI Erskine Trust
BGAI TTP Trust
BGAI Capicure Trust
BGAI Heritage Trust
BGAI Oakdale Trust
BGAI Wacol Trust
Other jointly controlled entities
Fair value adjustments on completion of developments

50.00 
50.00 
50.00 
50.00 
50.00 
50.00 
50.00 

50.00 
50.00 
50.00 
50.00 
50.00 
50.00 
50.00 

29,612 
52,800 
9,578 
6,417 
15,280 
38,695 
3,879 
1 

30,807 
50,354 
8,394 
6,402 
17,853 
33,728 
3,795 
724 

2,382 
7,903 
635 
767  
1,171 
1,114  
308 
798 
4,414  

3,293 
5,101 
1,085 
710 
1,382 
- 
271 
1,092 
715 

156,262 

152,057 

19,492 

13,649 

The principal activity of each of the above JV’s is property management and leasing.  They all have balance dates of 30 June, as the 
other partner in the JV has this balance date.  Each of the above entities are incorporated in Australia.

The profit contribution includes all fair value adjustments (including impairments) to Investment properties totalling $5.3 million (2011 
$4.8 million).  Refer note 4(b) for more detail on these profits.

(a) Summarised share of JV’s financial information

Current assets
Non-current assets

Current liabilities
Non-current liabilities

Net assets

Revenues

Profit before income tax
Income tax expense

Profit after income tax

CONSOLIDATED

31 JULY 12
$000

31 JULY 11
$000

5,904 
343,095 

4,907 
314,913 

348,999 

319,820 

56,572 
154,987 

12,470 
178,624 

211,559 

191,094 

*
137,440 

*
128,726 

20,561 

21,345 

15,078 
- 

15,078 

12,934 
- 

12,934 

* Note:  Carrying value of Property Trusts exceeds net assets as the Group makes an adjustment to bring the accounting policies 

of the Trust in line with those of the Group resulting in a higher net asset position

(b) Share of JV’s expenditure commitments

Capital commitments
Lease commitments

14,815 
- 

14,815 

5,795 
- 

5,795 

The entity has no legal liability for any contingent liabilities incurred by JV’s.

(c) Contingent liabilities of JV’s 

Share of contingent liabilities incurred jointly with other investors 

-

- 

The entity has no legal liability for any contingent liabilities incurred by JV’s.

49

 
 
 
 
NOTE 27:  SEGMENT INFORMATION

Building Products

Property

Investments

Consolidated

31 JULY 12
$000

31 JULY 11 31 JULY 12 31 JULY 11 31 JULY 12 31 JULY 11 31 JULY 12 31 JULY 11
$000

$000

$000

$000

$000

$000

$000

REVENUE

Segment revenue from sales
 to external customers

RESULT

547,590 

604,915 

8,237 

28,987 

1,084 

1,713 

556,911 

635,615 

Segment EBITDA

53,327 

68,586 

19,009 

29,235 

67,700 

67,895 

140,036 

165,716 

Less depreciation and
 amortisation

Segment EBIT (before
  significant items)

(24,789)

(26,569)

- 

- 

- 

- 

(24,789)

(26,569)

28,538 

42,017 

19,009 

29,235 

67,700 

67,895 

115,247 

139,147 

(Less) / add significant items

(56,894)

(29,018)

- 

- 

756 

88,686 

(56,138)

59,668 

Segment result

(28,356)

12,999 

19,009 

29,235 

68,456 

156,581 

59,109 

198,815 

Unallocated expenses
  Finance costs
  Other unallocated expenses

Profit before income tax

Income tax benefit / (expense)

Profit after income tax

ASSETS

(25,215)
(6,796)

(21,155)
(7,148)

27,098 

170,512 

16,206 

(27,961)

43,304 

142,551 

Segment assets

991,898  1,016,979 

180,661 

176,325  1,087,065  1,081,577  2,259,624  2,274,881 

Unallocated assets

Total assets

LIABILITIES

1,370 

3,605 

2,260,994  2,278,486 

Segment liabilities

124,579 

110,942 

665 

5,146 

180,868 

196,436 

306,112 

312,524 

Unallocated liabilities
  Borrowings
  Other

Total unallocated liabilities

Total liabilities

OTHER

Aggregate share of the profit
 of investments accounted
 for using the equity method

Aggregate carrying amount
 of investments accounted
 for using the equity method

Acquisition of non-current
  segment assets

298,574 
(6,300)

297,929 
(7,713)

292,274 

290,216 

598,386 

602,740 

798 

1,092 

18,694 

12,557 

67,375 

154,868 

86,867 

168,517 

- 

723 

156,261 

151,334  1,086,475  1,059,241  1,242,736  1,211,298 

- 

- 

- 

- 

- 

- 

- 

- 

37,685 

61,888 

43,173 

35,518 

37,685 

61,888 

Non-cash expenses other than
  depreciation & amortisation

43,173 

35,518 

50

NOTE 27:  SEGMENT INFORMATION (cont.)
The economic entity has the following business segments:

Building  products  division  manufactures  vitrified  clay,  concrete  and  timber  products  used  in  the  building  industry.    Major  product 
lines include bricks, blocks, pavers, roof tiles, floor tiles, precast walling and flooring panels and timber products used in the building 
industry. 

Property division considers further opportunities to better utilise land owned by the Brickworks Group.

Investment division holds investments in the Australian share market, both for dividend income and capital growth, and includes the 
Group’s investment in Washington H Soul Pattinson and Co. Ltd.

The Group has a large number of customers to which it provides products.  There are no individual customers that account for more 
than 10% of external revenues.

The Group operates predominantly within Australia, with some product manufactured by the clay products division exported to other 
countries, particularly New Zealand.  Total revenue from sales outside of Australia in the 12 months ended 31 July 2012 was $15.9 
million (2011 $13.1 million).  The carrying value of non-current assets held outside of Australia at 31 July 2012 was $0.8 million (2011 
$0.8 million).

NOTE 28:   
(a)  Capital Management

FINANCIAL INSTRUMENTS

The Brickworks Group manages its capital to ensure that all entities in the Group can continue as going concerns, while striving 
to maximise returns to shareholders through an appropriate balance of net debt and total equity.  The balance of capital can be 
influenced by the level of dividends paid, the issuance of new shares, returns of capital to shareholders, or adjustments in the 
level of borrowings through the acquisition or sale of assets.

Brickworks capital structure is regularly measured using net debt to capital employed, calculated as net debt divided by (net debt 
plus total equity).  Net debt is calculated as total borrowings (note 18) less cash and cash equivalents (note 9), and total equity 
of the parent entity includes issued capital (note 22), reserves (note 23) and retained earnings. 

The Group’s strategy during the year was to maintain the net debt to capital employed (at the consolidated level) below a target 
limit of 45% which is consistent with prior years.  

Net debt to capital employed
Net debt
Total equity

Net debt to capital employed

CONSOLIDATED

31 JULY 12
$000

31 JULY 11
$000

285,447
1,662,608

249,383 
1,675,746 

14.6%

13.0%

The group is not subject to any externally imposed capital requirements.

(b)  Financial Risk Management

The Group’s activities expose it to a variety of financial risks, primarily to the risk of changes in interest rates, but also, to a lesser 
extent, credit risk of third parties with which the group trades and fluctuations in foreign currency exchange rates.  The Group’s 
overall risk management program seeks to minimise any significant potential adverse effects on the financial performance of the 
Group.  Where approved by the Board, certain derivative financial instruments such as interest rate swaps or foreign exchange 
contracts may be used to hedge certain risk exposures.  The Brickworks Group derivative policy prohibits the use of derivative 
financial instruments for speculative purposes.

(c)  Terms, conditions and accounting policies

Details of the accounting policies adopted in relation to financial instruments are included in the summary of significant accounting 
policies  to  the  accounts.    Information  regarding  the  significant  terms  and  conditions  of  each  significant  category  of  financial 
instruments are included within the relevant note for that category.

51

 
NOTE 28:  FINANCIAL INSTRUMENTS (cont.)
(d)  Financial assets and liabilities by category

Details of financial assets and liabilities as contained in the annual report are as follows:

Financial assets and liabilities by category
Financial Assets
Cash and cash equivalents
Loans and receivables - current
Loans and receivables - non-current

Total Loans and receivables

Derivative financial instruments - current
Held for trading assets at fair value
  through profit and loss

Total financial assets

Financial Liabilities
Other financial liabilities
Payables - current
Interest bearing liabilities - non-current
Derivative financial instruments - non-current

Total other financial liabilities

Total financial liabilities

NOTE

CONSOLIDATED

31 JULY 12
$000

31 JULY 11
$000

9
10(a)
10(b)

19(a)

11

17
18(a)
19(b)

14,553
79,354
-

79,354

-

11

50,617
83,639
201

83,840

139

14

93,918

134,610

73,024
300,000
5,958

378,982

378,982

58,863
300,000
1,755

360,618

360,618

Fair values of financial assets and liabilities are disclosed in the notes to the accounts where those items are listed.

(e)  Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group.  
The Group has adopted a policy of only dealing with creditworthy counterparties.  The credit risk on liquid funds and derivative 
financial instruments is considered low because these assets are held with banks with high credit ratings assigned by international 
credit-rating agencies.

The maximum exposure to trade credit risk at balance date to recognised financial assets is the carrying amount net of provision 
for doubtful debts, as disclosed in the balance sheet and notes to the financial statements.  The Brickworks Group debtors are 
based in the building and construction industry, however the Group minimises its concentration of credit risk by undertaking 
transactions with a large number of customers.  The Group ensures there is not a material credit risk exposure to any single 
debtor.

The Group holds no significant collateral as security, and there are no other significant credit enhancements in respect of these 
financial assets.  The credit quality of financial assets that are neither past due nor impaired is appropriate, and is reviewed 
regularly to identify any potential deterioration in the credit quality.  There are no significant financial assets that would otherwise 
be past due or impaired whose terms have been renegotiated.

(f)  Liquidity risk

The  Brickworks  Group  manages  liquidity  risk  by  maintaining  a  combination  of  adequate  cash  reserves,  bank  facilities  and 
reserve borrowing facilities, continuously monitored through forecast and actual cash flows, and matching the maturity profiles 
of financial assets and liabilities.

Details of credit facilities available to the Group, and the amounts utilised under those facilities, are as follows:

Unused credit facilities
Credit facilities
Amount utilised

Unused credit facility

400,000
300,000

100,000

400,000
300,000

100,000

52

 
 
 
NOTE 28:  FINANCIAL INSTRUMENTS (cont.)
(f)  Liquidity risk (cont.)

The Group has a $300.0 million (2011 $300 million) unsecured variable interest rate facility (fully drawn) in place with a syndicate 
of Australian and overseas banks.  The facility is in a single tranche which expires in June 2015. 

• 

 In addition, the Group has a $100 million 364 day working capital facility with an Australian Bank, which was undrawn at 
balance date (2011 undrawn).  Subsequent to balance date this facility was extended for a further 12 months to August 2013.

These facilities are subject to various terms and conditions, including various negative pledges regarding the operations of the 
Group, and covenants that must be satisfied at specific measurement dates.  A critical judgement is that the Group will continue 
to meet its criteria under these banking covenants to ensure that there is no right for the banking syndicate to require settlement 
of the facility in the next 12 months.  

An analysis of the maturity profiles of the Group’s undiscounted financial liabilities, based on contractual maturity and obligated 
payments, is as follows:

Liquidity risk maturity analysis
1 year or less
Trade and other payables

Total 1 year or less

1 to 5 years
Commercial bills
Derivatives

Total 1 to 5 years

(g)  Currency risk

NOTE

17

19(b)

CONSOLIDATED

31 JULY 12
$000

31 JULY 11
$000

73,024

73,024

352,650
5,958

358,608

58,863

58,863

375,150
1,755

376,905

The Brickworks group does not have any material exposure to unhedged foreign currency receivables.  Export sales are all 
made  through Australian  agents  or  direct  to  overseas  customers  using Australian  Dollars  or  letters  of  credit  denominated  in 
Australian Dollars.  The trading of the Group’s foreign subsidiary, which is in New Zealand dollars (NZD) is not material to the 
Group  as  a  whole.   Accordingly,  any  reasonably  foreseeable  fluctuation  in  the  exchange  rate  of  the  NZD  would  not  have  a 
material impact on either profit after tax or equity of the Brickworks group.

The group has a limited exposure to foreign currency fluctuations due to its importation of goods.  The main exposure is to US 
dollars (USD).  It is the policy of the group to enter into forward foreign exchange contracts to cover specific currency payments, 
as well as covering anticipated purchases for up to 12 months in advance.  The overall level of exposure to foreign currency 
purchases is not material to the group.  Accordingly, any reasonably foreseeable fluctuation in the exchange rate of the USD 
would not have a material impact on either profit after tax or equity of the Brickworks group.

(h) 

Interest rate risk

Brickworks’ significant interest rate risk arises from fluctuations in the BBSY bid rate relating to Brickworks long and short term 
borrowings.  Primarily, the exposure to interest rate risk is on the variable interest rate facility referred to in note 28 (f) above.

The Brickworks Group manages its exposure to interest rate risk within the Group’s derivative policy.  The Group uses interest 
rate derivatives, where appropriate, to eliminate some of the risk of movements in interest rates on borrowings, and increase 
certainty around the cost of borrowed funds.  The policy has target ranges for fixed interest rate borrowings.

At balance date, Brickworks had $175.0 million of bank borrowings unhedged (2011 $50.0 million).

The Brickworks group variable interest rate facility currently drawn to $300.0 million (2011 $300.0 million) is a floating rate facility 
determined with reference to the BBSY bid rate at each bill maturity date.  The effective weighted interest rate current on the bills 
borrowed under this facility at balance date is 6.14% (2011 6.80%).

• 

   At  31  July  2012,  if  interest  rates  had  been  +/-  1%  per  annum  throughout  the  year,  with  all  other  variables  being  held 
constant, the operating profit after income tax for the year would have been $1.4 million higher or lower respectively (2011 
$0.10 million higher / lower).  There would not have been any other significant impacts on equity.

Interest rate swaps

The Brickworks group has entered into interest rate swaps contracts which allow the Group to raise borrowings at floating rates 
and effectively swap them into a fixed rate (average rate 5.41%, 2011 5.06%). The contracts require settlement of net interest 
receivable or payable usually around 90 days.  The settlement dates coincide with the dates on which interest is payable on the 
underlying long term debt and are brought to account as an adjustment to borrowing costs.

53

NOTE 28:  FINANCIAL INSTRUMENTS (cont.)

(h) 

Interest rate risk (cont.)

The  notional  principal  amounts  reduce  from  $125.0  million  over  the  next  five  years  (2011  $250.0  million  over  five  years)  as 
detailed below:

Settlement 

Less than 1 year 

1 to 3 years 

3 to 5 years 

Over 5 years 

Total notional principal at balance date 

2012 

Avg % 

- 

5.27 

5.96 

- 

2011 

Avg % 

5.41 

6.15 

5.96 

- 

2012 

$000 

2011

$000

- 

125,000 

100,000 

25,000 

50,000

75,000 

               - 

               - 

   125,000 

   250,000 

The hedges in place at 31 July 2012 are not hedge accounted, and the fair value movement of the hedges is recognised in the 
statement of comprehensive income.

The financial instruments of the Group that are measured at fair value are grouped into Levels 1 to 3 based in the degree to 
which the fair value is observable.

Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or 

• 
liabilities.

Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are 

• 
observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that 

• 
are not based on observable market data (unobservable inputs).

The fair value of these derivatives are calculated using market observable inputs, categorised as “Level 2”.

Financial Assets

Interest rates on money market instruments (deposits) vary with current short term bank bill rate movements.  At balance date, 
the effective weighted interest rates on these financial assets was 2.95% (2011 5.47%).

There are no other financial assets with exposure to interest rate risk.

(i)  Other price risk

The  Brickworks  group  does  not  have  material  direct  exposure  to  equity  price  risk,  as  the  value  of  the  share  trading  portfolio  is 
insignificant, and hence any fluctuation in equity prices would not be material to either profit after tax or equity of the Brickworks group.

Brickworks has significant indirect exposure to equity price risk through its investment in WHSP.  Although this investment is 
accounted for as an equity accounted investment, WHSP has a significant listed investment portfolio which is accounted for at 
fair value through equity, and contribute to the profit on subsequent disposal.  As a result, fluctuations in equity prices would 
potentially impact on both net profit after tax (where portions of the portfolios are traded) and equity (for balances held at the end 
of the period) which would result in adjustments to Brickworks net profit after tax and equity.

At the time of preparing this report, there was no publicly available information regarding the effects of any reasonably foreseeable 
fluctuations in equity values on net profit or equity of WHSP at 31 July 2012.

NOTE 29:  CONTROLLED ENTITIES AND BUSINESS ACQUISITIONS
(a)  List of significant controlled entities

Details of the significant wholly owned entities within the Brickworks Group of companies are as follows.  There are other wholly 
owned subsidiaries not included in this list as they are individually insignificant to the Group.  All wholly owned entities within the 
Group have been consolidated into these financial statements.

Controlled entities incorporated in Australia 

ABN 

Group’s Interest

A.C.N. 000 012 340 Pty Ltd  
A.C.N. 074 202 592 Pty Ltd 
Austral Bricks (NSW) Pty Ltd 
Austral Bricks (Qld) Pty Ltd 
Austral Bricks (SA) Pty Ltd 
Austral Bricks (Tas) Pty Ltd 
Austral Bricks (Tasmania) Pty Ltd 
Austral Bricks (Vic) Pty Ltd 
Austral Bricks (WA) Pty Ltd 
Austral Bricks Holdings Pty Ltd 
Austral Facades Pty Ltd 
Austral Masonry (NSW) Pty Ltd 
Austral Masonry (Qld) Pty Ltd 

38 000 012 340 
82 074 202 592 
60 125 934 849 
62 125 934 858 
66 125 934 876 
83 125 934 947 
14 009 501 053 
64 125 934 867 
34 079 711 603 
55 120 364 365 
63 144 804 553 
45 141 647 092 
30 000 646 695 

54

2012 
% 

100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  

2011
%

100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 

 
 
 
 
 
 
 
 
 
 
 
 
NOTE 29:  CONTROLLED ENTITIES AND BUSINESS ACQUISITIONS (cont.)

(a)  List of significant controlled entities (cont.)

Controlled entities incorporated in Australia 

ABN 

Group’s Interest

53 120 364 356 
Austral Masonry (Vic) Pty Ltd 
97 141 629 996 
Austral Masonry Holdings Pty Ltd 
81 125 934 938 
Austral Precast (NSW) Pty Ltd 
20 145 070 855 
Austral Precast (Qld) Pty Ltd 
16 145 070 837 
Austral Precast (Vic) Pty Ltd 
22 145 070 884 
Austral Precast (WA) Pty Ltd 
88 140 573 646 
Austral Precast Holdings Pty Ltd 
61 144 804 544 
Austral Roof Tiles (WA) Pty Ltd 
67 144 804 571 
Austral Roof Tiles Pty Ltd 
34 087 808 811 
Auswest Timbers (ACT) Pty Ltd 
53 108 239 925 
Auswest Timbers Finance Pty Ltd (in liquidation) 
51 120 364 347 
Auswest Timbers Holdings Pty Ltd 
28 071 093 591 
Auswest Timbers Pty Ltd 
39 000 165 579 
Bowral Brickworks Pty Ltd 
63 119 059 513 
Brickworks Building Products Pty Ltd 
64 076 976 880 
Brickworks Building Products (NZ) Pty Ltd 
95 120 360 036 
Brickworks Head Holding Co Pty Ltd 
47 120 364 329 
Brickworks Industrial Developments Pty Ltd 
12 094 905 996 
Brickworks Properties Pty Ltd 
28 158 536 353 
Brickworks Property Finance Co Pty Ltd 
89 120 360 009 
Brickworks Sub Holding Co No. 1 Pty Ltd 
61 120 364 392 
Brickworks Sub Holding Co No. 2 Pty Ltd 
59 120 364 383 
Brickworks Sub Holding Co No. 3 Pty Ltd 
57 120 364 374 
Brickworks Sub Holding Co No. 4 Pty Ltd 
16 125 922 821 
Brickworks Sub Holding Co No. 5 Pty Ltd 
18 125 922 830 
Brickworks Sub Holding Co No. 6 Pty Ltd 
97 125 922 849 
Brickworks Sub Holding Co No. 7 Pty Ltd 
99 125 922 858 
Brickworks Sub Holding Co No. 8 Pty Ltd 
40 079 711 630 
Bristile Guardians Pty Ltd 
32 008 668 540 
Bristile Holdings Pty Ltd 
19 056 541 096 
Bristile Pty Ltd 
77 090 775 634 
Bristile Roofing (East Coast) Pty Ltd 
49 120 364 338 
Bristile Roofing Holdings Pty Ltd 
63 007 635 529 
Christies Sands Pty Ltd 
52 000 602 531 
Clifton Brick (Queanbeyan) Pty Ltd (in liquidation) 
83 004 493 181 
Clifton Brick Holdings Pty Ltd 
63 004 529 104 
Clifton Brick Manufacturers Pty Ltd 
53 087 575 611 
Daniel Robertson Australia Pty Ltd 
66 004 434 342 
Davman Builders Pty Ltd 
93 000 002 979 
Dry Press Publishing Pty Ltd 
76 004 372 454 
Evans Brothers (Bricks) Pty Ltd (in liquidation) 
51 004 096 137 
Evans Brothers Pty Ltd (in liquidation) 
20 007 622 317 
Hallett Brick Pty Ltd 
93 007 880 220 
Hallett Roofing Services Pty Ltd 
Horsley Park Holdings Pty Ltd 
65 008 392 014 
Hutton’s Bricks (Manufacturers) Pty Ltd (in liquidation)  58 009 477 463 
31 003 281 123 
International Brick & Tile Pty Ltd 
40 007 870 779 
J. Hallett & Son Pty Ltd 
13 008 666 840 
Metropolitan Brick Company Pty Ltd 
22 004 047 849 
N.R.T. Pty Ltd (in liquidation) 
34 111 744 640 
Newthorpe Pty Ltd (in liquidation) 
18 000 041 485 
Nubrik (NRT) Pty Ltd (in liquidation) 
29 004 767 113 
Nubrik Concrete Masonry Pty Ltd 
59 004 028 559 
Nubrik Pty Ltd 
70 008 768 330 
Pilsley Investments Pty Ltd 
24 009 266 273 
Prestige Brick Pty Ltd 
68 006 727 920 
Prestige Equipment Pty Ltd 
61 009 687 709 
Ralph Brittain & Company Pty Ltd (in liquidation) 
83 007 749 840 
Southern Bricks Pty Ltd 
65 005 079 167 
Team Securities Pty Ltd (in liquidation) 
93 091 183 050 
Terra Timbers Pty Ltd 
52 000 005 550 
The Austral Brick Co Pty Ltd 
24 000 006 682 
The Warren Brick Co Pty Ltd 
41 065 439 045 
Triffid Investments Pty Ltd (in liquidation) 
72 076 286 710 
Visigoth Pty Ltd 
98 004 209 732 
Vitclay Pipes Pty Ltd (in liquidation) 

55

2012 
% 

100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0 
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0 
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  
100.0  

2011
%

100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
50.0
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 

 
 
 
 
 
 
 
 
 
NOTE 29:  CONTROLLED ENTITIES AND BUSINESS ACQUISITIONS (cont.)

(b)  Business acquisitions

On 2 December 2011 the Group acquired the business and assets of Gunns Ltd’s Jarrah saw milling, processing and retail 
business  in  Western Australia.  The  acquisition  created  a  market-leading  range  of Australia  hardwood  timber,  and  provides 
synergies  with  the  existing  Auswest  Timber  operations  in  Western  Australia.  Details  of  the  net  assets  acquired  under  this 
transaction are set out below, with all values determined provisionally at balance date.

Cost of acquisition
Cash paid

Net assets acquired:
Inventory
Property, plant & equipment
Intangibles
Employee entitlements assumed
Other liabilities

Fair value of net assets acquired

Direct costs relating to the acquisition

$000

6,006

4,100
1,850
1,400
(1,204)
(140)

6,006

(994)

On  6  March  2012  the  Group  completed  the  acquisition  of  the  remaining  50%  equity  not  already  held  in  Daniel  Robertson 
Australia Pty Ltd for $10.1 million.  The company had been operating as a joint venture for six years, with Austral manufacturing 
the product following the closure of the original Daniel Robertson manufacturing plant.  The acquisition will enable the bricks 
businesses  on  the  East  Coast  of Australia  to  continue  to  manufacture  this  premium  iconic  brand.  Details  of  the  net  assets 
acquired under this transaction are set out below, with all values determined provisionally at balance date.

Cost of acquisition
Cash paid
Cash acquired through purchase

Net cash paid for business

Net assets acquired:
Receivables
Property, plant & equipment
Prepayments
Intangibles
Trade creditors and accruals
Employee entitlements assumed
Income tax provision
Deferred tax liability
Other liabilities

Fair value of net assets acquired

Goodwill arising on acquisition

Net cash paid for business

Direct costs relating to the acquisition

Contribution to net profit before tax for the year ended 31 July 2012

Contribution to revenue for the year ended 31 July 2012

$000

10,092
(1,265)

8,827

817
127
40
9,000
(884)
(435)
(304)
(1,220)
(1,110)

6,031

2,796

8,827

(393)

1,713

4,241

56

NOTE 29:  CONTROLLED ENTITIES AND BUSINESS ACQUISITIONS (cont.)

(b)  Business acquisitions (cont)

On  9  March  2012  the  Group  acquired  the  business  and  assets of  Boral  Masonry’s  Cairns,  Queensland,  operations  for  $3.2 
million.    The  acquisition  provides  the  Group  with  additional  manufacturing  capacity  in  far  North  Queensland,  and  provides 
significant synergies and savings for the Austral Masonry operations in Queensland. Details of the net assets acquired under 
this transaction are set out below, with all values determined provisionally at balance date.

Cost of acquisition

Cash Paid

Net assets acquired:
Inventory
Property, plant & equipment
Other assets
Employee entitlements assumed
Other liabilities

Fair value of net assets acquired

Goodwill arising on acquisition

Net cash paid for business

Direct costs relating to the acquisition

$000

3,216

877
1,141
119
(54)
(751)

1,332

1,884

3,216

(255)

On 23 March 2012 the Group acquired the business and assets of CPS’s Queensland precast concrete panel operations for 
$1.7 million.  The acquisition provides the group with additional precast concrete panel manufacturing capacity in South East 
Queensland, and will provide significant synergies and savings for the Austral Precast operations in Queensland. Details of the 
net assets acquired under this transaction are set out below, with all values determined provisionally at balance date.

Cost of acquisition
Cash paid

Net assets acquired:
Inventory
Property, plant & equipment
Other current assets

Fair value of net assets acquired

Goodwill arising on acquisition

Net cash paid for business

Direct costs relating to the acquisition

$000

1,677

528
420
329

1,277

400

1,677

(200)

Upon acquisition the acquired businesses were integrated within the existing Brickworks business and systems. As a result, 
specific financial information relating to the acquired businesses is not available and therefore it is impracticable to disclose the 
revenue and profit or loss of the acquirees since the acquisition date.

It is impracticable to restate the revenue or profit of the combined entity for the period as if the acquisition date for these business 
combinations effected during the period had been at the beginning of the period, as the legal entities that had been operating 
those businesses were not acquired, and the financial information of those entities provided to the Group to allow consideration 
of the purchase of those businesses is subject to signed confidentiality agreements.  For the same reason we cannot disclose 
the carrying amounts of those assets immediately prior to the acquisition.

All acquisitions disclosed in the prior period which had been provisionally accounted for at 31 July 2011 were finalised during the 
current year with no change to the acquisition values.

57

NOTE 29:  CONTROLLED ENTITIES AND BUSINESS ACQUISITIONS (cont.)
(c)   Controlled entities disposed of

There were no controlled entities within the Group that were disposed of during the period. 

(d)   Closed group

A deed of cross-guarantee between Brickworks Ltd and a number of its subsidiaries (the “closed group”) was enacted during the 
2010 financial year and relief was obtained from preparing a financial statement for those subsidiaries under an ASIC instrument 
of relief under subsection 340(i) of the Corporations Act 2001.  Under the deed, Brickworks guarantees to support the liabilities 
and obligations of those subsidiaries.  The controlled entities have also given a similar guarantee.  For details of those entities 
covered under the deed, refer to note 29(a).  The members of the closed group and the parties to the deed of cross guarantee 
are identical.  The following are the aggregate totals, for each category, relieved under the deed.

INCOME STATEMENT
Profit before income tax expense
Income tax (benefit) / expense

Profit after income tax expense

RETAINED PROFITS
Retained profits at the beginning of the year
Profit after income tax expense
Dividends paid
Share of associate’s transfer to outside equity interests

CLOSED GROUP

31 JULY 12
$000

31 JULY 11
$000

9,832
(21,789)

31,621

1,041,229
31,621
(48,373)
3,121

159,423
27,981

131,442

958,148
131,442
(48,513)
152

Retained profits at the end of the year

1,027,598

1,041,229

58

NOTE 29:  CONTROLLED ENTITIES AND BUSINESS ACQUISITIONS (cont.)
(d)   Closed group (cont)

BALANCE SHEET
CURRENT ASSETS
  Cash assets
  Receivables
  Held for trading financial assets
  Inventories
  Land held for resale
  Tax receivable
  Prepayments
  Derivative financial instruments

TOTAL CURRENT ASSETS

NON-CURRENT ASSETS
  Receivables
  Other financial assets
  Inventories
  Land held for resale
  Investments accounted for using the equity method
  Property, plant and equipment
  Intangibles

TOTAL NON-CURRENT ASSETS

TOTAL ASSETS

CURRENT LIABILITIES
  Payables
  Provisions

TOTAL CURRENT LIABILITIES

NON-CURRENT LIABILITIES
  Payables
  Interest-bearing liabilities
  Derivative financial instruments
  Provisions
  Deferred tax liabilities

TOTAL NON-CURRENT LIABILITIES

TOTAL LIABILITIES

NET ASSETS

EQUITY
  Contributed equity
  Reserves
  Retained profits

TOTAL EQUITY

CLOSED GROUP

31 JULY 12
$000

31 JULY 11
$000

14,552
78,263
11
155,086
9,657
1,971
6,978
0

266,518

158,540
10,000
8,301
14,742
1,086,474
440,770
269,486

50,617
81,114
14
146,479
1,249
3,606
5,524
139

288,742

159,192
10,000
8,372
23,742
1,059,964
438,641
285,650

1,988,313

1,985,561

2,254,831

2,274,303

71,472
31,990

103,462

9,867
298,574
5,958
22,973
171,796

509,168

612,630

56,124
34,589

90,713

-
297,929
1,755
25,397
194,181

519,262

609,975

1,642,201

1,664,328

325,802
288,801
1,027,598

325,018
298,081
1,041,229

1,642,201

1,664,328

59

NOTE 30:  CONTINGENT LIABILITIES

CONSOLIDATED

31 JULY 12
$000

31 JULY 11
$000

Contingent liabilities at balance date not provided for in these financial statements:

Bank guarantees issued in the ordinary course of business

19,863

19,007

The Directors do not anticipate that any of the bank guarantees issued on behalf of the Group will be called upon.

Members  of  the  economic  entity  are  parties  to  various  legal  actions  against  them  that  are  not  provided  for  in  the  financial 
statements.  These actions are being defended and the directors do not anticipate that any of these actions will result in material 
adverse consequences for the Company or the Consolidated Entity.

NOTE 31:  CAPITAL AND LEASING EXPENDITURE COMMITMENTS

Capital projects contracted for but not provided for at balance date

Payable not later than one year

7,273

45,595

The capital commitments relate to contracts to supply or construct buildings or various items of plant and equipment for use in 
the building products segment of the business.

Operating lease commitments

Non-cancellable operating leases contracted for but not capitalised
 in the financial statements

110,189

54,599

Payable
- not later than one year
- later than one year but not later than five years
- later than five years

20,952
63,526
25,711

110,189

11,640
34,107
8,852

54,599

Operating leases are for the rental of land (used for sales and display centres), manufacturing equipment and motor vehicles.  
The leases are non-cancellable with rent payable monthly in advance.

Leases for properties are on terms of between 3 and 10 years, with renewal options of similar lengths.  Some of the operating 
leases contain contingent rental provisions that state the minimum lease payments shall be increased by the higher of CPI or a 
given percentage per annum.  The highest such percentage increase is 5%.

NOTE 32:  EMPLOYEE SHARE PLANS

(a)  Salary sacrifice arrangements

Brickworks Ltd has an employee share ownership plan, which allows all employees who have achieved 3 months service with 
the Group to purchase Brickworks Ltd shares, using their own funds plus a contribution of up to $156 from the Company.  All 
shares acquired under salary sacrifice arrangements are fully paid ordinary shares, purchased on-market under an independent 
trust deed.

At 31 July 2012, the Brickworks Employee Share Plans had 716 members taking part who owned a combined 1,283,527 shares 
or 0.83% of issued ordinary capital (2011 751 members, 1,305,709 shares, 0.88%).  This represented shares purchased under 
the salary sacrifice arrangements described above, as well as shares held as part of the Brickworks equity based compensation 
plans shown below. The reduction in employee shareholder numbers reflects an overall reduction in eligible employee numbers 
during the financial year.

(b)  Equity-based compensation plans

The  following  table  shows  the  number  of  fully  paid  ordinary  shares  held  by  the  Brickworks  Deferred  Employee  Share  Plan 
that had been granted as remuneration.  This table does not include any shares held in the plan that were purchased by the 
employee under the salary sacrifice arrangements described above.

Unvested
Granted Sept 07
Granted Sept 08
Granted Sept 09
Granted Sept 10
Granted Sept 11

Total Unvested
Vested

Total

Vested
(28,828)
(35,734)
(49,671)
(77,180)
(55,410)

(246,823)
246,823

Forfeited /
Withdrawn
(1,869)
(3,558)
(17,610)
(35,192)
(11,395)

(69,624)
(196,900)

Closing
Balance
-
35,871
100,032
232,386
222,620

590,909
550,296

-

(266,524)

1,141,205

Opening
Balance
30,697
75,163
167,313
344,758
-

617,931
500,373

1,118,304

Granted
-
-
-
-
289,425

289,425
-

289,425

60

NOTE 32:  EMPLOYEE SHARE PLANS (cont)
(b)  Equity-based compensation plans (cont)

The amount recognised in the Income Statement in relation to equity based compensation arrangements for the year ended 31 
July 2012 was $4,608,556 (2011 $4,556,943).

The unvested shares vest to employees at 20% per year for each of the following 5 years, provided ongoing employment is 
maintained.  Unvested shares are unavailable for trading by the employee.

The fair value of vested shares held by the share plan at 31 July 2012 was $6,158,316 (2011 $5,750,385), based on the closing 
share price at 31 July 2012 ($10.08 per share) (2011 $9.90 per share).  The fair value of shares granted during the period was 
$2,882,175 (2011 $4,552,722), based on the price paid for these shares when they were acquired on market.

All shares granted by the Company provide dividend and voting rights to the employee.

More  information  regarding  the  Brickworks  Employee  Share  Plans  is  outlined  in  the  Remuneration  Report  included  in  the 
Director’s Report.

NOTE 33:  RELATED PARTIES

(a)  Key management personnel shareholdings

Held 31 July 
2011

Granted as 
Remuneration

Purchases

Shares 
Disposed of

Held 31 July 
2012

DIRECTORS

Mr R. Millner
Mr M. Millner
Mr L. Partridge
Mr B. Crotty
Mr D. Gilham
The Hon. R. Webster

5,396,192
5,371,433
227,011
10,209
102,268
15,922

OTHER KEY MANAGEMENT PERSONNEL
Mr A. Payne
Ms M. Kublins
Mr D. Fitzharris
Mr P. Scott
Mr D. Millington
Mr M. Finney

167,838
42,053
75,709
59,211
23,039
-

-
-
24,906
-
-
-

12,453
6,891
6,891
6,891
5,168
24,181

-
-
-
-
-
-

-
-
-
-
-
-

-
-
-
-
-
-

-
(4,355)
-
-
(7,444)
-

5,396,192
5,371,433
251,917
10,209
102,268
15,922

180,291
44,589
82,600
66,102
20,763
24,181

Shareholdings shown above reflect all direct, indirect and beneficial holdings by key management personnel.

All share transactions by key management personnel were on normal terms and conditions on the Australian Stock Exchange.

There were no other transactions with key management personnel during the period.

Short term employee benefits
Post-employment benefits
Other long-term employee benefits
Termination benefits
Share based payment benefits

CONSOLIDATED

31 JULY 12
$000

31 JULY 11
$000

4,270
228
-
-
628

5,126

5,012
306
-
-
1,338

6,656

(c)  Other related party transactions

During the year material transactions took place with the following related parties:

Various intercompany loans are in existence between the Parent entity and some of its wholly owned subsidiaries.  The loans are 
unsecured, interest free and have no fixed terms for repayment.  The loans are a net asset to the Parent entity of $667.8 million.

Property transactions with various trusts (Iisted in note 26)  which  are jointly  owned  by  the  Brickworks  Group  and Goodman 
Australia Industrial Fund, an unlisted property trust.  The sale of land held for resale by the Brickworks Group to these trusts 
resulted in revenue of $2.4 million and profit of $0.9 million.  All transactions with the property trusts are at arm’s length values.

Directors and their director-related entities are able, with all staff members, to purchase goods produced by the Brickworks group 
on terms and conditions no more favourable than those available to other customers.

NOTE 34:  EVENTS OCCURING AFTER BALANCE DATE

There  have  been  no  events  subsequent  to  balance  date  that  could  materially  affect  the  financial  position  and  performance  of 
Brickworks Ltd or any of its controlled entities.

61

In the opinion of the Directors:

DIRECTOR’S DECLARATION

1. 

the complete set of the financial statements and notes of the consolidated entity, as set out on pages 26 to 61, and the additional 
disclosures included in the Remuneration Report section of the Directors’ Report designated as audited, are in accordance with 
the Corporations Act 2001:

(a)  comply with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations 

Regulations 2001; and

(b)  give a true and fair view of the financial position as at 31 July 2012 and of the performance for the year ended on that date 

of the consolidated entity;

2. 

3. 

the financial report also complies with International Financial Reporting Standards as issued by the International Accounting 
Standards Board;

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

4.  as at the date of this declaration, there are reasonable grounds to believe that the members of the Closed Group identified in 
note 29(a) will be able to meet any obligations or liabilities to which they are or may become subject to, by virtue of the Deed of 
Cross Guarantee.

This  declaration  is  made  after  receiving  the  declaration  required  to  be  made  to  the  Directors  in  accordance  with  s295A  of  the 
Corporations Act 2001 for the financial year ended 31 July 2012.

This declaration is made in accordance with a resolution of the Board of Directors.

Dated 20 September 2012

R.D. MILLNER 
Director   

L.R. PARTRIDGE AM
Director

62

 
 
 
 
 
 
 
 
 
 
Ernst & Young Centre 
680 George Street 
Sydney  NSW  2000  Australia 
GPO Box 2646  Sydney  NSW  2001

Tel:  +61 2 9248 5555 
Fax: +61 2 9248 5959 
www.ey.com/au

INDEPENDENT AUDITOR’S REPORT 
TO THE MEMBERS OF BRICKWORKS LIMITED

Report on the financial report

We  have  audited  the  accompanying  financial  report  of  Brickworks  Limited,  which  comprises  the  consolidated 
statement  of  financial  position  as  at  31  July  2012,  the  consolidated  statement  of  comprehensive  income,  the 
consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, 
notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ 
declaration of the consolidated entity comprising the company and the entities it controlled at the year’s end or from 
time to time during the financial year.

Directors’ responsibility for the financial report

The directors of the company are responsible for the preparation of the financial report that gives a true and fair 
view  in  accordance  with Australian Accounting  Standards  and  the  Corporations Act  2001  and  for  such  internal 
controls  as  the  directors  determine  are  necessary  to  enable  the  preparation  of  the  financial  report  that  is  free 
from material misstatement, whether due to fraud or error. In Note 1, the directors also state, in accordance with 
Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements comply with 
International Financial Reporting Standards.

Auditor’s responsibility

Our  responsibility  is  to  express  an  opinion  on  the  financial  report  based  on  our  audit.  We  conducted  our  audit 
in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical 
requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about 
whether the financial report is free from material misstatement.

An  audit  involves  performing  procedures  to  obtain  audit  evidence  about  the  amounts  and  disclosures  in  the 
financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the risks 
of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, 
the  auditor  considers  internal  controls  relevant  to  the  entity’s  preparation  and  fair  presentation  of  the  financial 
report  in  order  to  design  audit  procedures  that  are  appropriate  in  the  circumstances,  but  not  for  the  purpose 
of expressing an opinion on the effectiveness of the entity’s internal controls. An audit also includes evaluating 
the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the 
directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit 
opinion.

Independence

In  conducting  our  audit  we  have  complied  with  the  independence  requirements  of  the  Corporations Act  2001. 
We have given to the directors of the company a written Auditor’s Independence Declaration, a copy of which is 
referred to in the directors’ report.

Liability limited by a scheme approved under 
Professional Standards Legislation

63

Opinion

In our opinion: 

a.  

 the  financial  report  of  Brickworks  Limited  is  in  accordance  with  the  Corporations  Act  2001, 
including:

(i)  

(ii)  

 giving a true and fair view of the consolidated entity’s financial position as at 31 July 
2012 and of its performance for the year ended on that date; and

 complying  with  Australian  Accounting  Standards  and  the  Corporations  Regulations 
2001; and

b.  

 the financial report also complies with International Financial Reporting Standards as disclosed 
in Note 1.

REPORT ON THE REMUNERATION REPORT

We have audited the Remuneration Report included in the directors’ report for the year ended 31 July 2012. The 
directors  of  the  company  are  responsible  for  the  preparation  and  presentation  of  the  Remuneration  Report  in 
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the 
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

Opinion

In our opinion, the Remuneration Report of Brickworks Limited for the year ended 31 July 2012, complies with 
section 300A of the Corporations Act 2001.

Ernst & Young

Renay Robinson
Partner
Sydney
20 September 2012

64

 
  
 
 
 
 
STATEMENT OF SHAREHOLDERS

ORDINARY SHARES AT 31 AUGUST 2012

Number of holders
Voting entitlement is one vote per fully paid ordinary share

% of total holdings by or on behalf of twenty largest shareholders

Distribution of shareholdings:

1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,000 - 100,000
100,001 and over

Holdings of less than marketable parcel of 50 shares

The names of the substantial shareholders as disclosed in substantial shareholder notices received by the Company:

7,696

81.27%

3,260
3,510
459
423
44

7,696

715

Shareholder
Washington H Soul Pattinson & Co. Ltd
Perpetual Ltd and subsidiaries
IOOF Holdings Ltd
Permanent Trustee Company Ltd

20 LARGEST SHAREHOLDERS AS DISCLOSED ON THE SHARE REGISTER
AS AT 31 AUGUST 2012

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

Washington H Soul Pattinson & Company Limited

RBC Investor Services Australia Nominees Pty Limited 

National Nominees Limited

J P Morgan Nominees Australia Limited

Citicorp Nominees Pty Limited 

J S Millner Holdings Pty Limited

RBC Investor Services Australia Nominees Pty Limited 

HSBC Custody Nominees (Australia) Limited

Mr K S Baker

RBC Dexia Investor Services Australia Nominees Pty Limited 

Australian Foundation Investment Company Limited

Citicorp Nominees Pty Limited

Mr R D Millner & Mr M J Millner 

J P Morgan Nominees Australia Limited 

CPU Share Plans Pty Ltd 

T G Millner Holdings Pty Limited 

Argo Investments Limited

20. Warbont Nominees Pty Ltd 

Number
of shares
70,896,583
17,710,519
8,744,153
7,111,550

%

44.48

8.23

4.97

3.46

2.58

2.19

2.15

1.84

1.70

1.48

1.27

1.18

1.00

0.95

0.92

0.90

0.80

0.41

0.39

0.35

Number of
Shares

65,645,140

12,144,323

7,339,208

5,102,052

3,811,377

3,224,567

3,172,695

2,717,137

2,509,779

2,189,122

1,873,698

1,747,647

1,477,970

1,407,213

1,361,292

1,332,167

1,180,503

608,509

574,960

509,339

119,928,698

81.27

65

NOTES

66

NOTES

67

NOTES

68

TABLE OF IMPORTANT DATES

2012 annual result released

Record date for final ordinary dividend

Annual General Meeting

Payment date for final ordinary dividend

2013 half-year end

2013 half-year result announced

Record date for interim ordinary dividend

Payment date for interim ordinary dividend

2013 financial year end

2013 annual result released

20 September 2012

8 November 2012

27 November 2012

29 November 2012

31 January 2013

21 March 2013

16 April 2013

7 May 2013

31 July 2013

19 September 2013

The above dates are indicative only and are subject to change