Orion Engineered Carbons Annual Report 2010

Plain-text annual report

ANNUAL REPORT 2010 Orbital Corporation Limited – ABN 32 009 344 058 Corporate Proﬁle Corporate Proﬁle Key Features Orbital is a leader in Engine Management Systems for alternative fuels and specialised markets. (cid:115) Net proﬁt after tax of $4.5 million compared to a loss of $2.5 million last year. Orbital technology and alternative fuel systems reduce harmful greenhouse gas emissions and improve fuel economy for the Australian and global engine markets. Orbital currently has commercial operations in LPG and initiatives in progress in LNG and ethanol. Orbital FlexDI™ technology “One engine - any fuel” - has been commercialised in the marine, motorcycle, recreational and autorickshaw light commercial vehicle markets since 1996. Orbital Autogas Systems (OAGS) Liquid LPG systems, offering seamless performance and satisfying Australian emission requirement, are now commercially available as after-market kits for popular car models, and services the Original Equipment automotive market. The Orbital group earns income from multiple sources including: (cid:115) Orbital Autogas Systems (cid:115) (cid:115) (cid:115) Revenue for the year ended 30 June 2010 increased by 5.2% to $17.0 million. $7.7 million proﬁt on the restructure of a loan from the West Australian Government. The loan has been extended interest free to the year 2025. $2.4 million improvement in underlying result compared to the prior year. (cid:115) Return to underlying proﬁt in the 2nd half year. (cid:115) Orbital Autogas Systems (OAGS) invested in the development of its liquid LPG retroﬁt systems for 25 vehicle models during the year. (cid:115) (cid:115) Synerject increased revenue by 21% to US$90.4 million. The strong Australian dollar adversely impacted the result by approximately $1.0 million compared to the prior year. (cid:115) Joint Venture interest in Synerject LLC (cid:115) Orbital’s and Synerject’s markets demonstrating (cid:115) Orbital Consulting Services (cid:115) License fees and royalties Contents positive signs of recovery. Chairman’s and CEO’s Report . . . . . . 1 Statements of Financial Position . Review of Operations. Directors’ Report . . . . . . . . . . Auditor’s Independence Declaration . Income Statements . . . . . Statements of Comprehensive Income Statements of Changes in Equity . . . . . . . . . . . . . . . . . . . . . 2 . 8 21 22 23 23 Statements of Cashﬂows . . . Notes to the Financial Statements Directors’ Declaration . . . Independent Auditors Report . Shareholding Details . Ofﬁces and Ofﬁcers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 25 26 67 68 Inside Back Cover . . Back Cover Newport News VA, USA Delavan WI, USA Orbital Facilities Orbital Offices Synerject Locations Synerject Offices Toulouse France Chongqing China Changchun China Sydney Australia Perth Australia Annual Report 2010 Orbital achieved a $2.4 million year on year improvement in the underlying result in FY 2010 Chairman’s and CEO’s Report On behalf of the Board of Directors we are pleased to present Orbital’s Annual Report for the year ended 30 June 2010. Overview We are pleased to report a proﬁt for the year ended 30 June 2010 of $4.5 million including a proﬁt on the restructure of our long-term loan of $7.7 million. As forecast in the 2009 Annual Report, the 2010 ﬁnancial year was a year of investment as we built infrastructure to support Orbital’s “Liquid” LPG retroﬁt market development. In parallel, we worked closely with Ford Australia to continue development of their next generation LPG injection system due to be released next year on the new LPG Falcon. Orbital improved operational performance over the year. We achieved a $2.4 million year on year improvement in the underlying result in FY2010. More importantly, Orbital returned to operating proﬁts in the 2nd half year. Taking into account the investment in Orbital’s alternative fuel business, and ignoring the one-off proﬁt noted above, Orbital’s underlying loss for the year was $2.5 million. Areas showing positive results are the Consulting Services business, Synerject and Royalty and Licence income. Revenue increased in all three segments as our customers emerged from the global ﬁnancial crisis. In particular, Synerject increased revenue by 21% and proﬁt after tax by 30%. Not only did our traditional markets recover but Synerject also introduced new products in the motorcycle sector in Asia and snowmobiles in Europe and North America. Overhead reductions and efﬁciency improvements have progressed over the past two years, which further enhanced our bottom-line. Western Australian Government Loan A signiﬁcant accomplishment for the year was the restructure of the Western Australian Government loan. This project, led by our CFO, Keith Halliwell, resulted in both a positive near term proﬁt and also positive strategic impact. The long-term loan of $19 million from the Western Australian Government was restructured in January 2010. The loan was reduced by approximately $4.7 million and the remaining $14.3 million is repayable over 15 years commencing with a manageable repayment of $0.2 million in May 2010 increasing steadily until the ﬁnal payment in 2025. Most importantly the loan remains interest free over the new term. This restructure is signiﬁcant for Orbital as the original loan was due for repayment in full in 2014, and this overhang would have signiﬁcantly impeded our ability to fund growth over the coming years. The net impact of the above restructure was a proﬁt of $7.7 million and a corresponding increase in net assets. Outlook Orbital is targeting a return to proﬁts in FY2011 as the non- automotive markets continue to recover and our investments in OAGS begin to yield revenue growth. We will continue to push FlexDI™ and we are seeing a renewed interest in this technology. In parallel we continue to develop new business streams focused on alternative fuels applications. Orbital has over 25 years of experience in combustion and the development of specialized engine management systems. We have applied our technology and experience to make customers’ engines cleaner and more efﬁcient since 1996. Board of Directors – L to R: Mervyn Jones, Terry Stinson, Peter Day, Vijoleta Braach-Maksvytis and Grahame Young ﬁnancial plan for the future. This plan targets a return to operating proﬁts in FY2011 and proﬁtable growth in future years. Orbital’s strategy builds on Orbital’s strengths and focuses on the emerging alternative fuel application markets, ﬁrst in Australia and then around the world. Cash ﬂow management will remain very important in FY2011. The cash outﬂow in FY2010 was mainly due to the increased investment in OAGS. That investment is mainly behind us and therefore cash requirements will be signiﬁcantly reduced in FY2011. We do however anticipate sales growth and therefore increased working capital requirements. Orbital’s cash reserves will be further reduced in FY2011 but, on present conditions, be sufﬁcient to support anticipated ongoing operational requirements. The Board targets a return to positive cash ﬂow in FY2012. The Board proposes to free up capital to invest strategically in cash-generating opportunities and complementary business acquisitions. Accordingly, Orbital recently advertised its property in Perth for sale with a long term leaseback. The proceeds from the sale of the property would also provide a cash reserve and materially strengthen the balance sheet. As economies around the world continue to recover, the price of crude oil is expected to rise and commensurately this will put diesel and petrol prices back in the spotlight. No so long ago, just prior to the GFC, Australia experienced a record year of sales of LPG automotive systems. These sales were driven by high petrol prices. Orbital will be ready in the coming years to proﬁt from the predicted higher prices with the new “Liquid” LPG system and other alternative fuel system solutions. Board of Directors and Staff We would like to thank our fellow Board members Vijoleta Braach-Maksvytis, Merv Jones and Grahame Young for their valuable contributions throughout the year. We also recognise and appreciate the considerable efforts of the employees throughout the organisation. The Orbital business proﬁle is changing and will continue to evolve over the coming years. In 2009, the Board together with the management team put in place a strategic and W P DAY Chairman T D STINSON Chief Executive Ofﬁcer Orbital 2010 Annual Report 1 Alternative fuel applications and systems supply is a cornerstone of Orbital’s forward strategy Review of Operations OPERATING AND FINANCIAL REVIEW The headline ﬁnancial results for Orbital for the year ended 30 June 2010 are shown below. June 2010 $’000 June 2009 $’000 6,203 (1,727) 6,264 (739) 9,621 1,031 8,798 319 1,199 37 1,115 (1,130) 17,023 16,177 (659) (1,550) Alternative Fuels - Revenue - Contribution Consulting Services - Revenue - Contribution Licences & royalties - Revenue - Contribution Total Revenue Total Contribution Synerject June June 2010 2009 US$m US$m - Revenue (100%) 90.4 74.6 - Equity accounted proﬁt 1,874 1,846 Other Income Foreign exchange (loss)/gain Finance costs (net) Other expenses 644 (97) (513) 128 564 (386) (4,221) (4,584) Business development costs* (595) Government grant on restructure of loan* Proﬁt on sale of interest in Synerject (after tax)* Proﬁt/(loss) before tax Taxation (excluding tax effect of sale of interest in Synerject) Proﬁt/(loss) after tax 7,695 - 4,128 388 4,516 - - 2,492 (1,490) (961) (2,451) Underlying result (excluding one off items) (* - one off items) (2,584) (4,943) Detailed comments on Orbital’s four business streams are as follows: OAGS Liquid LPG system demonstrator in Canberra’s “LPG Exceptional Energy Event” Alternative Fuels Revenue Contribution June 2010 $'000 June 2009 $'000 6,203 (1,727) 6,264 (739) Alternative fuel applications and system supply is a cornerstone of Orbital’s forward strategy. Alternative Fuels is a market that is in focus globally. Automotive manufacturers are now developing multi and bi-fuel vehicles. CNG (Compressed Natural Gas) for automotive use grew at almost 20% globally 2009 vs. 2008. LPG (Liquid Petroleum Gas) is the low cost, lower emissions, automotive alternative fuel in Australia and Korea. The trucking industry is increasingly taking up LNG (Liquid Natural Gas) and CNG (Compressed Natural Gas) on a global basis. The reasons for the growth in the alternative fuel market are threefold; 1) Cost savings for the operator, 2) Reduction in greenhouse gas emissions and 3) Fuel security. Orbital Autogas Systems (OAGS) generated revenue of $6.2 million similar to FY09. In FY10 OAGS invested in building an LPG retroﬁt business underpinned by the latest technology liquid LPG systems. OAGS grew infrastructure over the past year in preparation for increased Ford and aftermarket sales. As a result overhead costs increased by approximately $1.0 million, including increased staff and larger premises and this business generated a loss of $1.7 million compared with $0.7 million in FY09. Orbital is at the leading edge of several key developments and products in alternative fuel markets. (cid:115)(cid:0) (cid:38)(cid:73)(cid:82)(cid:83)(cid:84)(cid:76)(cid:89)(cid:12) (cid:47)(cid:33)(cid:39)(cid:51) (cid:104)(cid:44)(cid:73)(cid:81)(cid:85)(cid:73)(cid:68)(cid:118) (cid:44)(cid:48)(cid:39) (cid:65)(cid:70)(cid:84)(cid:69)(cid:82)(cid:77)(cid:65)(cid:82)(cid:75)(cid:69)(cid:84) (cid:75)(cid:73)(cid:84)(cid:83) (cid:72)(cid:65)(cid:86)(cid:69) (cid:78)(cid:79)(cid:87) been developed for some 25 popular vehicle models, as well as being the LPG system for the next generation of Ford Australia E-Gas vehicles. OAGS supplies the current technology “vapouriser” LPG systems to Ford Australia and to the retroﬁt market. Orbital’s new “Liquid” system gives customers the highest level of performance and meets the new Australian Design Regulation (ADR) 79/02 emission requirements implemented in Australia from July 2010 onwards. OAGS is contracted to supply Ford Australia’s next generation LPG injection systems, and recently entered the retroﬁt market with “Liquid”. Market feedback to the new system has been positive. Whilst the Australian LPG aftermarket has remained subdued this year due to the low cost of petrol, the OAGS liquid LPG system, offering seamless performance relative to the baseline gasoline vehicle and carbon dioxide savings of 2 Annual Report 2010 Orbital up to 13%, is poised to see growth when petrol prices increase. Historically sales of LPG trend with the price of petrol. Introduction of the ADR 79/02 emission regulation dictates the use of more advanced LPG systems, either sequential vapour injection, or liquid LPG injection systems developed by OAGS. The “vaporiser” style LPG systems previously sold in Australia will not meet the new emissions standards. This change in legislation should drive future sales growth. (cid:115)(cid:0) (cid:46)(cid:65)(cid:84)(cid:85)(cid:82)(cid:65)(cid:76) (cid:71)(cid:65)(cid:83) (cid:86)(cid:69)(cid:72)(cid:73)(cid:67)(cid:76)(cid:69) (cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78) (cid:65)(cid:78)(cid:68) (cid:67)(cid:79)(cid:78)(cid:86)(cid:69)(cid:82)(cid:83)(cid:73)(cid:79)(cid:78) (cid:73)(cid:83) increasing signiﬁcantly around the world. Building on the OAGS business, and on Orbital’s 30 years of engine, combustion and engine management system experience, Orbital is seeking to capitalize on this emerging market. The LNG (Liquid Natural Gas) heavy duty transport market in Australia and Asia has the potential to be a signiﬁcant opportunity for Orbital. In conjunction with Mitchell Corporation, Orbital is actively developing solutions to enable LNG dual fuel substitution with diesel for heavy duty, line haul transport. The prime driver for the truck user is the potential signiﬁcant fuel cost savings, especially in the high mileage, heavy load applications typical in Australia. (cid:115)(cid:0) (cid:52)(cid:72)(cid:73)(cid:82)(cid:68)(cid:76)(cid:89)(cid:12) (cid:47)(cid:82)(cid:66)(cid:73)(cid:84)(cid:65)(cid:76) (cid:73)(cid:83) (cid:68)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:73)(cid:78)(cid:71) (cid:78)(cid:69)(cid:87) (cid:38)(cid:76)(cid:69)(cid:88)(cid:36)(cid:41)(cid:169) (cid:69)(cid:84)(cid:72)(cid:65)(cid:78)(cid:79)(cid:76) applications working with our partners in Brazil, Sygma Motors and Vale Energy Solutions. The initial target is large displacement, heavy duty engines for power generation. Once developed the technology has the potential to move into heavy duty transport, mine haul and other applications in Brazil. Diesel industrial engines converted to run on ethanol can reduce the carbon dioxide emissions from these engines by up to 70% along with a signiﬁcant reduction in the particulate emissions typically associated with diesel fuel operations. The use of ethanol in Brazil continues to grow in passenger car usage. The fuel is cost effective and renewable. FlexDI™ can play a role in the expansion of ethanol applications in Brazil. Orbital is also working on the extension of it’s FlexDI™ in cylinder injection systems to gaseous applications. Direct injection of LPG and CNG is the next logical step in automotive applications, and Orbital is investigating potential opportunities in this ﬁeld. Consulting Services June 2010 $'000 June 2009 $'000 9,621 1,031 8,798 319 Revenue Contribution Orbital provides engineering consulting services, design, development and testing in the areas of engine design, engine combustion, fuel systems, engine management systems, alternative fuels, engine and vehicle testing. Orbital provides fuel economy and emissions solutions to a wide variety of vehicle applications, from small displacement utility engines to large transportation and power generation applications. Orbital Consulting Services (OCS) revenue increased by $0.8 million (9.4%) to $9.6 million. Revenue was generated The commissioning of OCS’s new heavy duty engine test facility was completed in August 2009 from a number of programs primarily in China and Brazil, being FlexDI™ projects with Changan and Sygma respectively. The Changan program for the development of a passenger car with benchmark fuel efﬁciency using Orbital’s FlexDI™ system is on schedule and meeting customer expectations. Orbital was awarded the ﬁrst non-OEM Green Car Innovation Fund grant from the Australian Federal Government to undertake additional R&D to enhance the long term potential success of this program. Consulting services revenue from North American and Asian customers increased; other markets remained subdued. In Australia, Orbital commenced a major program with Mitchell Corporation to provide expertise and development support for Mitchell’s existing LNG fuelled truck ﬂeet, along with ongoing work to support Ford Australia for the introduction of OAGS’s LPG system for the next generation of E-Gas vehicles. Orbital has implemented additional marketing strategies for this year, including the formation of the “Orbital Resource Group”, targeting service to the domestic resource/mining industry. The focus for this initiative is to use Orbital’s existing expertise and infrastructure to expand the domestic business base for consulting services. In addition to contract engineering services, the OCS group provides technical support and R&D for Orbital’s strategic growth initiatives, ranging from assisting OAGS with the development of “Liquid” LPG aftermarket kits, through to advanced technology FlexDI™ development for petrol and alternative fuels applications. Orbital remains committed to R&D and to the development of future product and business streams. One example is the R&D in spark ignition of heavy fuels which is now leading to new engineering and business opportunities with customers in Australia and North America. The commissioning of OCS’s new heavy duty engine test facility was completed in August 2009, and now has a signiﬁcant workload testing for customers and supporting internal development programs. At 30 June 2010, OCS had an order book of $3.4 million. Installing a 15 litre engine in Orbital’s recently commissioned heavy duty engine test facility Orbital 2010 Annual Report 3 Review of Operations Business Segment Activities Year in Brief Alternative Fuels LPG (Liquid Propane Gas) Alternative Fuel application and system supply is a cornerstone of Orbital’s forward strategy Tier 1 supplier to Ford Australia and aftermarket Exclusive rights to Vialle LPG product in Australia CNG (Compressed Natural Gas) Exclusive distribution rights to Continental LPG and CNG fuel supply components for Australia and New Zealand LNG (Liquid Natural Gas) OAGS generated revenue of $6,203k, with a loss of $1,727k Australian LPG system aftermarket subdued this year due to low petrol prices Increase in investment for next generation LPG systems 25 model aftermarket Liquid LPG kits now available Initial Liquid LPG system sales commenced during the year OAG’s Liquid LPG system satisfies the new Australian Emission regulations commenced July 2010 for all new vehicles Development of the LPG system for the next generation Ford E-GAS vehicles Provision of heavy duty engine testing facilities for Government and companies wishing to develop clean engine technologies Opened new Arndell Park facility in Sydney for distribution, service and administration 10% $’m sales Specialist engineering consulting services based in Perth, Western Australia, employing approximately 68 staff. Engine design and development Combustion systems Fuel systems Engine management systems Alternative fuels (LPG, CNG, Ethanol, Heavy Fuels) Fuel economy and emissions solutions Orbital Resource Group (ORG) to service mining and heavy industry. Consulting Services 9.6 16% $’m sales Intellectual Property Patented Orbital Technologies Licensing Royalties Revenue of $9,621k with contribution of $1,031k compared to $8,798k and $319k respectively in the previous year Mitchell’s Corporation Provision of engine management expertise and development support to Mitchell’s existing LNG truck fleet Heavy Duty Test Facility Orbital’s 600 kW heavy duty engine test facility for development of alternative fuel systems, and engine homologation fully commissioned and fee-earning Advanced Engineering Contracts Contracts awarded for advanced fuel/combustion systems for alternative fuels Changan demonstrator program for the FlexDITM passenger car application on schedule Green Car Innovation Fund grant from the Australian Federal Government Revenue $1,199k compared to $1,115k in the previous year Contribution $37k compared to $(1,130)k reflecting reduced R&D expenditure in FY10 North American marine market showed improvement in H2, however still well down on pre global financial crisis market. Negative foreign exchange impact of $180k due to strengthening Australian Dollar 1.2 2% $’m sales Synerject 72% 43.4 42:58% Orbital/Continental joint venture Revenue of $US90,375k compared to US$74,635k in the established in 1997 previous year Global manufacturer and supplier of engine management systems (EMS) and electronic fuel injection systems for the non-automotive market Synerject has access to Continental automotive components, purchasing and know how Largest independent EMS supplier for non- automotive applications Equity accounted contribution to Orbital of $1,874k compared to $1,846k in the previous year Market recovery in marine and recreational product in North America in H2, and in scooters in Taiwan driven by the stringent emission standards Expanding supply of high end electronic control units to European motorcycle manufacturers Growth of new snowmobile applications in North America and Europe 1st full year of newly acquired North American EMS business 4 Annual Report 2010 Orbital The Future Business Name & Brand Release of next generation Ford E-Gas with OAG LPG system Development of additional Liquid LPG system aftermarket kits, covering popular Australian vehicle models. The Liquid LPG systems offer Fuel cost saving Improved torque, power and cold starting Emissions – up to 13% reduction in CO2 emission vs gasoline vehicle Market growth will be in line with increased petrol prices Continue to explore opportunities in the CNG/LPG markets in Australia and Asia Order book at 30th June of $3.4 million Expanding marketing effort in India Expanding domestic marketing effort for services to mining and heavy industry (ORG) Supporting Corporate and OAGS growth initiatives Increased workload for heavy duty test facilities Fuel and Control Systems development for alt. fuels Homologation Fuel quality Marine market recovery to continue DI Autorickshaw market to improve as confidence in the product increases Motorcycle markets in Europe to remain low until future emission legislation is known Expand China/Asia motorcycle sales as emission legislation drives move to engine management systems Taiwan, with very stringent emission requirements, will remain a key market for Synerject EMS Expand the high end motorcycle market with additional motorcycle models Marine sector recovery to continue Initial sales into Lawn and Garden market Develop low cost EMS systems to suit high volume, low cost scooter markets Licences and Royalties Revenue Contribution June 2010 $'000 1,199 37 June 2009 $'000 1,115 (1,130) Orbital earns licence fees and royalties from manufacturers using Orbital’s FlexDI™ systems and technology. The royalty bearing products today are in the marine, recreational and scooter/motorcycle markets. Royalty and licence income of $1.2 million was 7.5% higher than FY09. Marine royalty volumes increased by 45% as the US marine market recovered from lows in FY09; however the royalty revenue was negatively impacted by $0.2 million due to the strengthening Australian dollar. Following a very subdued market in the previous ﬁnancial year due to the global ﬁnancial crisis, the marine market in North America did show a level of improvement in the second half of FY10 with both increased sales and rebuilding of inventory, albeit still well short of the markets in 2006/2007. Synerject ORBITAL ORBITAL Consulting Consulting Revenue Proﬁt after tax Operating cashﬂow, after capex ORBITAL ORBITAL Intellectual Property Intellectual Property Equity accounted contribution June 2010 US$'000 June 2009 US$'000 90,375 4,744 74,635 3,662 5,957 1,660 A$’000 1,874 A$’000 1,846 revenue increased by 21% Orbital holds a 42% (FY09 50%) interest in Synerject LLC, a joint venture entity with Continental Corporation. Synerject is a key supplier of engine management systems (EMS) to the non-automotive market, with small engine applications for scooters through to high performance motorcycles, outboards and snowmobiles. Synerject’s to US$90.4 million due to a level of recovery in the North American marine market, the recently acquired Mercury electronic control unit business from Continental, and launch of newly developed products including snowmobile in North America and Europe. Synerject’s proﬁt after tax under USGAAP increased by 30% to US$4.7 million as a result of the revenue increase, cost control and efﬁciency improvements. Orbital’s equity accounted share of Synerject’s result was negatively impacted by adjustments required due to dissimilar accounting policies (A$0.4 million) and the strengthening Australian dollar (A$0.2 million). the Orbital 2010 Annual Report 5 Orbital continues to focus on strategic growth initiatives primarily in alternative fuels Review of Operations As a result of the improved operating result and tight control of working capital Synerject generated US$6.0 million operating cash ﬂow for the year after investment in capex (2009: US$1.7 million), paid annual dividends of US$1.5 million and remains in a strong ﬁnancial position with a gearing ratio of 20% (FY09: 56%). Synerject’s traditional recreational markets in North America and Europe were impacted, especially in the ﬁrst half of the ﬁnancial year, by the global ﬁnancial crisis. Synerject, by stringent cost control and introduction of new products in the high end market, weathered the global ﬁnancial crisis well. Improvements have been noted in the marine market in the second half of the ﬁnancial year; however volumes are still well down on earlier years. Taiwan has been a major scooter system market for Synerject this year. Synerject had the right product available at the right time to meet the very stringent in- ﬁeld emission regulation that is driving nearly all scooter and motorcycle products to employ EMS in that market. Synerject is a major supplier to the two largest scooter manufacturers in Taiwan. With the introduction of the Euro III level emission limits in China for motorcycles, Synerject, with its locations in Changchun and Chongqing, is well positioned to both support and supply domestic Chinese manufacturers as they seek fuel systems and technology to satisfy the emission requirements. Testing of a FlexDI™ injector in Orbital’s in house fuel system laboratory Orbital engineer conducting testing in one of Orbital’s development engine test cells Other In January 2010 Orbital renegotiated the terms of the $19.0 million loan from the Western Australian Government due to be repaid in May 2014. The loan was replaced by an interest free $14.3 million loan repayable over 15 years to 2025. The restructure resulted in a non cash gain of $7.7 million. During the year Orbital incurred expenses of $0.6 million being due diligence, legal and advisory costs for a potential acquisition and associated capital raising which did not progress. Other income included $0.5 million from the sale of ACIS credits (FY09: $0.1 million). Orbital’s net cash outﬂow from operating activities was $5.0 million (FY09: $2.1 million outﬂow) reﬂecting the increased investment in OAGS operations, an increase in inventory and decrease in payables. A Commonwealth Government grant of $2.8 million for the investment in a heavy duty engine testing facility was received in July 2008. This was invested in FY09 and FY10 with the facility commissioned in August 2009. Total investment in plant and equipment was $1.4 million and the investment in OAGS Liquid LPG development including retroﬁt kits a further $1.1 million. During the year Orbital received its share of dividends from Synerject of $0.7 million. At 30 June 2010 Orbital had cash of $3.6 million. Outlook The Orbital Board had anticipated that the operating result in FY10 would be similar to that achieved in FY09. We are pleased to report that after stripping out non operating items in both years, Orbital achieved a $2.4 million improvement in the underlying result in FY10 and an underlying proﬁt in the 2nd half year. This time last year Orbital targeted a return to proﬁts in FY11 and the Board reinforces that guidance at this time. Orbital continues to focus on strategic growth initiatives, primarily in alternative fuels, while continuing to support and grow FlexDI™ applications. Increases in the price of transport fuel, and emissions legislation, will drive our growth. As our target markets continue to mature, Orbital will invest in technical and commercial opportunities international in our domestic and alternative fuel markets. 6 Annual Report 2010 Orbital Synerject’s revenues are projected to grow in the coming year as additional new products are introduced In FY10 OAGS relocated to bigger premises, took on and trained additional staff and put in place plans to roll out Orbital’s next generation LPG technology to OEM and aftermarket customers. Thus, OAGS will see revenue growth as the newly developed Liquid retroﬁt systems are available for marketing throughout Australia. OAGS will also commence supply of the next generation LPG system to Ford Australia in FY11. Synerject’s revenues are projected to grow in the coming year as additional new products are introduced and traditional markets continue to recover from recent lows. The outlook for Synerject is good; recently launched snowmobile products are expected to grow and new products supporting high end recreational markets in North America will be launched. On the low end, but potentially high volume side of the business, Chinese and Asian motorcycle markets continue to mature and Synerject will take its ﬁrst steps to enter the high volume utility engine segment. Orbital anticipates similar growth in its equity accounted share of Synerject’s proﬁt. Synerject has been cashﬂow positive for many years, has a strong balance sheet and is expected to generate sufﬁcient cashﬂow to support its growth plans while continuing to pay dividends. Orbital expects the Consulting Services business to perform in line with FY10. Projects involving Orbital’s FlexDI™ will underpin the base workload with increased business in the alternative fuel sector, including projects utilising the recently commissioned heavy duty engine testing facility. Orbital’s engineering group undertook much of the development of the next generation LPG system for OAGS and will continue to support the Orbital group with research and development for new products and markets. Orbital’s royalty generating product volumes increased in the 2nd half of FY10 and we expect to see that recovery continue. Revenues will continue to be impacted by ﬂuctuations in the Australian dollar as most royalties are denominated in US dollars. Cashﬂow management will be very important in FY11. The cash outﬂow in FY10 was mainly due to increased investment in OAGS. This included the operating loss of $1.7 million as we put in place the infrastructure for growth, increased working capital, and invested in plant and equipment and development of a range of liquid retroﬁt kits. That investment is mainly behind us and therefore cash requirements will be signiﬁcantly reduced in FY11. We do however anticipate sales growth and therefore increased working capital requirements. Orbital’s cash reserves will be reduced in FY11 but be sufﬁcient to support anticipated ongoing operational requirements. The Board targets a return to positive cashﬂow in FY12. The Board proposes to free up capital to invest strategically in cash-generating opportunities and complementary business acquisitions. Accordingly, Orbital recently advertised its property in Perth for sale with a long term leaseback. The proceeds from the sale of the property would also provide a cash reserve and materially strengthen the balance sheet. Orbital will continue to develop existing design, manufacturing, development and testing of engines and engine management systems in Perth at the same time as assessing opportunities to increase the global commercial scope of their various business streams. The Orbital Board looks forward to FY11 with conﬁdence. Orbital staff reviewing results from vehicle chassis dynamometer assessment Orbital 2010 Annual Report 7 Directors’ Report FOR THE YEAR ENDED 30 JUNE 2010 The Directors present their report together with the ﬁnancial report of Orbital Corporation Limited (the Company or Orbital) and of the Group, being the Company, its subsidiaries and the Group’s interest in its associate for the year ended 30 June 2010 and the auditors’ report thereon. Page Directors’ Report 8 1. Directors 9 2. Company Secretary 9 3. Directors’ Meetings 9 4. Corporate Governance Statement 10 4.1 Board of Directors and its Committees 4.2 Human Resources, Remuneration and 11 12 12 12 13 13 13 Nomination Committee 4.3 Audit Committee 4.4 Risk Management 4.5 Ethical Standards 4.6 Continuous Disclosure and Communication with Shareholders 5. Remuneration Report - audited 5.1 Principles of Compensation – audited 5.2 Directors’ and Executive Ofﬁcers’ Remuneration Company and Group - audited 5.3 Analysis of Bonuses and Performance Based Remuneration – audited 5.4 Equity Instruments – audited 5.4.1 Analysis of Shares Offered as Compensation – audited 5.4.2 Modiﬁcation of terms of equity- settled share-based payment transactions - audited Principal Activities 6. 7. Consolidated Result 8. Operating and Financial Review 9. Dividends 10. State of Affairs 11. Events Subsequent to Balance Date 12. Likely Developments and Expected Results 13. Directors’ Interests 14. Share Options 15. Indemniﬁcation and Insurance of Ofﬁcers 16. Non-Audit Services 17. Lead Auditor’s Independence Declaration 18. Rounding Off 16 18 18 18 19 19 19 19 19 19 19 19 19 19 19 19 20 20 1. DIRECTORS The Directors of the Company at any time during or since the end of the ﬁnancial year are: Mr William Peter Day, LLB, MBA, FCPA, FCA, GAICD Chairman, Independent Non-Executive Director Joined the Board and appointed Chairman in August 2007. Mr Day retired as Chief Financial Ofﬁcer of the global packaging group Amcor in 2007. He has a diversiﬁed background in ﬁnance and general management in mining, manufacturing, food and ﬁnancial services industries. He has held senior executive and director positions with Bonlac Foods, Rio Tinto, CRA and Comalco including Chief Financial Ofﬁcer at Commonwealth Aluminium Corporation (USA) and Managing Director, CRA Business Services in Australia. He is a former Chairman of the Australian Accounting Standards Board, and was Deputy Chairman of the Australian Securities & Investments Commission. Mr Day is a non-executive director of Ansell Limited (appointed 20 August 2007), SAI Global Limited (appointed 15 August 2008) and Centro Retail Trust Limited (also Chairman appointed 1 October 2009). He is also involved in a number of public interest activities. Mr John Grahame Young, LLB, FTIA, TEP Independent Non-Executive Director Joined the Board in November 1985. Mr Young is a lawyer with more than 30 years experience in corporate, revenue and intellectual property law. He has been a director of Cape Bouvard Investments Pty Ltd since 1998. Mr Young chairs the Company’s Audit Committee. Dr Mervyn Thomas Jones, B.Eng (Hons), Ph.D, DipBusStuds, CEng (UK), FIChemE (UK), MAICD, MIoD (NZ) Independent Non-Executive Director Joined the Board in March 2008. Dr Jones has more than 35 years experience as a consulting engineer and as a senior executive. He has speciﬁc expertise in the development and management of organic business growth in the Asia Paciﬁc region, as well as acquisition experience in both Australia and China. Dr Jones is also a non-executive director of Paciﬁc Environment Limited (appointed 3 July 2009, appointed Chairman 16 February 2010). Dr Jones chairs the Company’s Human Resources, Remuneration and Nomination Committee. Dr Vijoleta Braach-Maksvytis, Bsc (Hons), Ph.D, MAICD Independent Non-Executive Director Joined the Board in March 2008. Dr Braach-Maksvytis is an innovation strategist with more than 20 years experience in organisational change, formation of cross-sectoral and global partnerships, the commercialisation of technology, and intellectual property strategy. Previous roles include Head of the Ofﬁce of the Chief Scientist of Australia, Science Executive and Director Global Development for CSIRO, and most recently, Deputy Vice Chancellor Innovation and Development at the University of Melbourne, and is currently an advisor in the area of social innovation. Dr Braach-Maksvytis pioneered nanotechnology in Australia and holds over 20 patents in the ﬁeld. Dr Braach-Maksvytis is a Member of the Australian Federal Government’s Green Car Innovation Fund Committee, on the advisory board of the Intellectual Property Research Institute of Australia, and is also a member of a number of other public interest boards. Mr Terry Dewayne Stinson, BBA (Hons) Managing Director and Chief Executive Ofﬁcer Joined the Board in June 2008. Mr Stinson has been a senior executive with Siemens VDO, Europe’s largest engineering conglomerate (recently purchased by Continental Corporation), with direct responsibility for sales in excess of US$300 million per annum in their Gasoline Systems, Fuel Systems and Fuel Components operations in the United States, Germany, Italy, China and support operations in every country where automobiles are manufactured. Mr Stinson has also served as a representative Director for Siemens VDO on the Synerject Board. Prior to that, he held the position of VP Manufacturing for Outboard Marine Corporation, a privately held US$1 billion multinational outboard marine propulsion and boat company. Mr Stinson was appointed a Member of the Australian Industry Innovation Council (AIIC) in 2009. 8 ANNUAL REPORT 2010 ORBITAL CORPORATION LIMITED 2. COMPANY SECRETARY 3. DIRECTORS’ MEETINGS Mr Ian G Veitch B.Bus CA was appointed to the position of Company Secretary on 1 July 2009. He is a Chartered Accountant with over 17 years experience in corporate accounting. The number of Directors’ meetings (including meetings of the committees of Directors) and the number of meetings attended by each of the Directors of the Company during the ﬁnancial year are shown below: Directors’ Meetings Audit Committee Meetings Human Resources, Remuneration & Nomination Committee Meetings Director No. of meetings attended No. of meetings held* No. of meetings attended No. of meetings held* No. of meetings attended No. of meetings held* W P Day T D Stinson J G Young M T Jones V Braach-Maksvytis 10 9 10 10 9 10 10 10 10 10 4 - 4 4 4 4 - 4 4 4 4 - 4 4 4 4 - 4 4 4 * number of meetings held during the time the director held ofﬁce during the year. 4. CORPORATE GOVERNANCE STATEMENT The Board of Directors of Orbital Corporation Limited is responsible for the corporate governance of the Group. The Board guides and monitors the business and affairs of the Group on behalf of the shareholders by whom they are elected and to whom they are accountable. The table below summarises the Group’s compliance with the Corporate Governance Council’s Recommendations. Recommendation Principle 1 - Lay solid foundations for management and oversight 1.1 Companies should establish the functions reserved to the board and those delegated to senior executives and disclose those functions. 1.2 Companies should disclose the process for evaluating the performance of senior executives. 1.3 Companies should provide the information indicated in the guide to reporting on Principle 1 Principle 2 - Structure the board to add value 2.1 A majority of the board should be independent directors. 2.2 The chair should be an independent director. 2.3 The roles of chair and chief executive ofﬁcer should not be exercised by the same individual. 2.4 The board should establish a nomination committee. 2.5 Companies should disclose the process for evaluating the performance of the board, its committees and individual directors. 2.6 Companies should provide the information indicated in the guide to reporting on Principle 2. Principle 3 - Promote ethical and responsible decision-making Comply Yes / No Reference Yes Yes Yes Yes Yes Yes Yes Yes Yes Page 10 Pages 14-16 Pages 10-19 Page 11 Page 11 Page 11 Page 11 Page 11 Pages 10-18 3.1 Companies should establish a code of conduct and disclose the code or a summary of the Yes Website code as to: (cid:0) (cid:0) (cid:0) (cid:115)(cid:0)(cid:52)(cid:72)(cid:69) (cid:80)(cid:82)(cid:65)(cid:67)(cid:84)(cid:73)(cid:67)(cid:69)(cid:83) (cid:78)(cid:69)(cid:67)(cid:69)(cid:83)(cid:83)(cid:65)(cid:82)(cid:89) (cid:84)(cid:79) (cid:77)(cid:65)(cid:73)(cid:78)(cid:84)(cid:65)(cid:73)(cid:78) (cid:67)(cid:79)(cid:78)(cid:108)(cid:68)(cid:69)(cid:78)(cid:67)(cid:69) (cid:73)(cid:78) (cid:84)(cid:72)(cid:69) (cid:67)(cid:79)(cid:77)(cid:80)(cid:65)(cid:78)(cid:89)(cid:7)(cid:83) (cid:73)(cid:78)(cid:84)(cid:69)(cid:71)(cid:82)(cid:73)(cid:84)(cid:89)(cid:14) (cid:115)(cid:0)(cid:52)(cid:72)(cid:69) (cid:80)(cid:82)(cid:65)(cid:67)(cid:84)(cid:73)(cid:67)(cid:69)(cid:83) (cid:78)(cid:69)(cid:67)(cid:69)(cid:83)(cid:83)(cid:65)(cid:82)(cid:89) (cid:84)(cid:79) (cid:84)(cid:65)(cid:75)(cid:69) (cid:73)(cid:78)(cid:84)(cid:79) (cid:65)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84) (cid:84)(cid:72)(cid:69)(cid:73)(cid:82) (cid:76)(cid:69)(cid:71)(cid:65)(cid:76) (cid:79)(cid:66)(cid:76)(cid:73)(cid:71)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83) (cid:65)(cid:78)(cid:68) (cid:84)(cid:72)(cid:69) (cid:82)(cid:69)(cid:65)(cid:83)(cid:79)(cid:78)(cid:65)(cid:66)(cid:76)(cid:69) expectations of their stakeholders. (cid:115)(cid:0)(cid:52)(cid:72)(cid:69) (cid:82)(cid:69)(cid:83)(cid:80)(cid:79)(cid:78)(cid:83)(cid:73)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89) (cid:65)(cid:78)(cid:68) (cid:65)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89) (cid:79)(cid:70) (cid:73)(cid:78)(cid:68)(cid:73)(cid:86)(cid:73)(cid:68)(cid:85)(cid:65)(cid:76)(cid:83) (cid:70)(cid:79)(cid:82) (cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)(cid:73)(cid:78)(cid:71) (cid:65)(cid:78)(cid:68) (cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:73)(cid:71)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71) (cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)(cid:83) of unethical practices. 3.2 Companies should establish a policy concerning trading in company securities by directors, senior executives and employees, and disclose the policy or a summary of that policy. Yes Page 13 3.3 Companies should provide the information indicated in the guide to reporting on Principle 3 Yes Pages 10-19 ORBITAL CORPORATION LIMITED ANNUAL REPORT 2010 9 Directors’ Report FOR THE YEAR ENDED 30 JUNE 2010 Principle 4 - Safeguard integrity in ﬁnancial reporting 4.1 The board should establish an audit committee 4.2 The audit committee should be structured so that it: (cid:0) (cid:0) (cid:0) (cid:0) (cid:115)(cid:0)(cid:35)(cid:79)(cid:78)(cid:83)(cid:73)(cid:83)(cid:84)(cid:83) (cid:79)(cid:78)(cid:76)(cid:89) (cid:79)(cid:70) (cid:78)(cid:79)(cid:78)(cid:13)(cid:69)(cid:88)(cid:69)(cid:67)(cid:85)(cid:84)(cid:73)(cid:86)(cid:69) (cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83) (cid:115)(cid:0)(cid:35)(cid:79)(cid:78)(cid:83)(cid:73)(cid:83)(cid:84)(cid:83) (cid:79)(cid:70) (cid:65) (cid:77)(cid:65)(cid:74)(cid:79)(cid:82)(cid:73)(cid:84)(cid:89) (cid:79)(cid:70) (cid:73)(cid:78)(cid:68)(cid:69)(cid:80)(cid:69)(cid:78)(cid:68)(cid:69)(cid:78)(cid:84) (cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83) (cid:115)(cid:0)(cid:41)(cid:83) (cid:67)(cid:72)(cid:65)(cid:73)(cid:82)(cid:69)(cid:68) (cid:66)(cid:89) (cid:65)(cid:78) (cid:73)(cid:78)(cid:68)(cid:69)(cid:80)(cid:69)(cid:78)(cid:68)(cid:69)(cid:78)(cid:84) (cid:67)(cid:72)(cid:65)(cid:73)(cid:82)(cid:12) (cid:87)(cid:72)(cid:79) (cid:73)(cid:83) (cid:78)(cid:79)(cid:84) (cid:67)(cid:72)(cid:65)(cid:73)(cid:82) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:66)(cid:79)(cid:65)(cid:82)(cid:68) (cid:115)(cid:0)(cid:40)(cid:65)(cid:83) (cid:65)(cid:84) (cid:76)(cid:69)(cid:65)(cid:83)(cid:84) (cid:84)(cid:72)(cid:82)(cid:69)(cid:69) (cid:77)(cid:69)(cid:77)(cid:66)(cid:69)(cid:82)(cid:83) 4.3 The audit committee should have a formal charter. 4.4 Companies should provide the information indicated in the Guide to reporting on Principle 4 Principle 5 - Make timely and balanced disclosure 5.1 Companies should establish written policies designed to ensure compliance with ASX listing rule disclosure requirements and to ensure accountability at a senior executive level for that compliance and disclose those policies or a summary of those policies. Yes Yes Page 12 Page 12 Yes Yes Website Pages 10-19 Yes Page 13 5.2 Companies should provide the information indicated in the guide to reporting on Principle 5 Yes Pages 10-19 Principle 6 - Respect the rights of shareholders 6.1 Companies should design a communications policy for promoting effective communication with shareholders and encouraging their participation at general meetings and disclose their policy or a summary of that policy. Yes Page 13 6.2 Companies should provide the information indicated in the guide to reporting on Principle 6 Yes Pages 10-19 Principle 7 - Recognise and manage risk 7.1 Companies should establish policies for the oversight and management of material business risks and disclose a summary of those policies. 7.2 The board should require management to design and implement the risk management and internal control system to manage the company’s material business risks and report to it on whether those risks are being managed effectively. The board should disclose that management has reported to it as to the effectiveness of the company’s management of its material business risks 7.3 The board should disclose whether it has received assurance from the chief executive ofﬁcer [or equivalent] and the chief ﬁnancial ofﬁcer [or equivalent] that the declaration provided in accordance with section 295A of the Corporations Act is founded on a sound system of risk management and internal control and that the system is operating effectively in all material respects in relation to ﬁnancial reporting risks. Yes Yes Page 12 Page 12 Yes Page 12 7.4 Companies should provide the information indicated in the Guide to reporting on Principle 7 Yes Pages 10-19 Principle 8 – Remunerate fairly and responsibly 8.1 The board should establish a remuneration committee. 8.2 Companies should clearly distinguish the structure of nonexecutive directors’ remuneration from that of executive directors and senior executives. 8.3 Companies should provide the information indicated in the Guide to reporting on Principle 8 Yes Yes Yes Page 11 Pages 13-19 Pages 10-19 4.1 BOARD OF DIRECTORS AND ITS COMMITTEES Board Processes Role of the Board The Board’s primary role is to protect and enhance long-term shareholder value by providing strategic guidance to the Group and effective oversight of management. To fulfil this role, the Board is responsible for the overall corporate governance of the Group including formulating its strategic direction, approving and monitoring capital expenditure, setting remuneration, appointing, removing and creating succession policies for directors and senior executives, establishing and monitoring the achievement of management’s goals and ensuring the integrity of internal control and management information systems. It is also responsible for approving and monitoring ﬁnancial and other reporting. Details of the board’s charter the Company’s website (www.orbitalcorp.com.au). located on is The board has delegated responsibility for operation and administration of the Group to the Chief Executive Ofﬁcer and executive management. Responsibilities are delineated by formal authority delegations. To assist in the execution of its responsibilities, the Board has established a number of Board Committees including an Audit Committee and a Human Resources, Remuneration and Nomination Committee. These committees have written mandates and operating procedures, which are reviewed on a regular basis. The effectiveness of each committee is also constantly monitored. The Board has also established a framework for the management of the Group including a system of internal control and the establishment of appropriate ethical standards. The full Board currently holds six scheduled meetings each year, plus strategy meetings and any extraordinary meetings at such other times as may be necessary to address any speciﬁc signiﬁcant matters that may arise. The agenda for meetings is prepared in conjunction with the Chairman, Managing Director and Company Secretary. Standing items include the managing director’s report, ﬁnancial reports, strategic matters, governance and compliance. Submissions are circulated in advance. Executives are regularly involved in board discussions and directors have other opportunities, including visits to operations, for contact with a wider group of employees. 10 Annual Report 2010 Orbital The Board conducts an annual review of its processes to ensure that it is able to carry out its functions in the most effective manner. Director Education As part of the induction process, new directors are provided with detailed information about the nature of the Group’s business, current issues, group strategy, ﬁnancial matters, policies and procedures and are given the opportunity to meet with management to obtain an insight into the Group’s business operations. Independent Professional Advice and Access to Company Information Each Director has the right of access to all relevant Company information and to the Group’s executives and, subject to prior consultation with the Chairman, may seek independent professional advice from a suitably qualiﬁed adviser at the Group’s expense. The director must consult with an advisor suitably qualiﬁed in the relevant ﬁeld, and obtain the Chairman’s approval of the fee payable for the advice before proceeding with the consultation. A copy of the advice received by the director is made available to all other members of the board. Composition of the Board The names and qualiﬁcations of the Directors of the Company in ofﬁce at the date of this Report are detailed above. The composition of the Board is determined using the following principles: (cid:115)(cid:0) (cid:33) (cid:77)(cid:73)(cid:78)(cid:73)(cid:77)(cid:85)(cid:77) (cid:79)(cid:70) (cid:84)(cid:72)(cid:82)(cid:69)(cid:69) (cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83)(cid:12) (cid:87)(cid:73)(cid:84)(cid:72) (cid:65) (cid:66)(cid:82)(cid:79)(cid:65)(cid:68) (cid:82)(cid:65)(cid:78)(cid:71)(cid:69) (cid:79)(cid:70) expertise; (cid:115)(cid:0) (cid:33)(cid:78) (cid:73)(cid:78)(cid:68)(cid:69)(cid:80)(cid:69)(cid:78)(cid:68)(cid:69)(cid:78)(cid:84) (cid:78)(cid:79)(cid:78)(cid:13)(cid:69)(cid:88)(cid:69)(cid:67)(cid:85)(cid:84)(cid:73)(cid:86)(cid:69) (cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82) (cid:65)(cid:83) (cid:35)(cid:72)(cid:65)(cid:73)(cid:82)(cid:77)(cid:65)(cid:78)(cid:27) (cid:115)(cid:0) (cid:33) (cid:77)(cid:65)(cid:74)(cid:79)(cid:82)(cid:73)(cid:84)(cid:89) (cid:79)(cid:70) (cid:73)(cid:78)(cid:68)(cid:69)(cid:80)(cid:69)(cid:78)(cid:68)(cid:69)(cid:78)(cid:84) (cid:78)(cid:79)(cid:78)(cid:13)(cid:69)(cid:88)(cid:69)(cid:67)(cid:85)(cid:84)(cid:73)(cid:86)(cid:69) (cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83)(cid:27) (cid:65)(cid:78)(cid:68) (cid:115)(cid:0) (cid:52)(cid:72)(cid:69) (cid:82)(cid:79)(cid:76)(cid:69) (cid:79)(cid:70) (cid:35)(cid:72)(cid:73)(cid:69)(cid:70) (cid:37)(cid:88)(cid:69)(cid:67)(cid:85)(cid:84)(cid:73)(cid:86)(cid:69) (cid:47)(cid:70)(cid:108)(cid:67)(cid:69)(cid:82) (cid:8)(cid:35)(cid:37)(cid:47)(cid:9) (cid:65)(cid:78)(cid:68) (cid:35)(cid:72)(cid:65)(cid:73)(cid:82)(cid:77)(cid:65)(cid:78) should not be exercised by the same individual. (cid:115)(cid:0) (cid:33)(cid:78) (cid:73)(cid:78)(cid:68)(cid:69)(cid:80)(cid:69)(cid:78)(cid:68)(cid:69)(cid:78)(cid:84) (cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82) (cid:73)(cid:83) (cid:65) (cid:78)(cid:79)(cid:78)(cid:13)(cid:69)(cid:88)(cid:69)(cid:67)(cid:85)(cid:84)(cid:73)(cid:86)(cid:69) (cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82) who: (cid:115)(cid:0) (cid:73)(cid:83) (cid:78)(cid:79)(cid:84) (cid:65) (cid:83)(cid:85)(cid:66)(cid:83)(cid:84)(cid:65)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:72)(cid:79)(cid:76)(cid:68)(cid:69)(cid:82) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:67)(cid:79)(cid:77)(cid:80)(cid:65)(cid:78)(cid:89) (cid:79)(cid:82) an ofﬁcer of, or otherwise associated directly with, a substantial shareholder of the company; (cid:115)(cid:0) (cid:87)(cid:73)(cid:84)(cid:72)(cid:73)(cid:78) (cid:84)(cid:72)(cid:69) (cid:76)(cid:65)(cid:83)(cid:84) (cid:84)(cid:72)(cid:82)(cid:69)(cid:69) (cid:89)(cid:69)(cid:65)(cid:82)(cid:83) (cid:72)(cid:65)(cid:83) (cid:78)(cid:79)(cid:84) (cid:66)(cid:69)(cid:69)(cid:78) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:68) (cid:73)(cid:78) (cid:65)(cid:78) executive capacity by the company or another group member, or been a Director after ceasing to hold any such employment; (cid:115)(cid:0) (cid:87)(cid:73)(cid:84)(cid:72)(cid:73)(cid:78) (cid:84)(cid:72)(cid:69) (cid:76)(cid:65)(cid:83)(cid:84) (cid:84)(cid:72)(cid:82)(cid:69)(cid:69) (cid:89)(cid:69)(cid:65)(cid:82)(cid:83) (cid:72)(cid:65)(cid:83) (cid:78)(cid:79)(cid:84) (cid:66)(cid:69)(cid:69)(cid:78) (cid:65) (cid:80)(cid:82)(cid:73)(cid:78)(cid:67)(cid:73)(cid:80)(cid:65)(cid:76) (cid:79)(cid:70) (cid:65) material professional adviser or a material consultant to the company or another group member, or an employee materially associated with the service provided; (cid:115)(cid:0) (cid:73)(cid:83) (cid:78)(cid:79)(cid:84) (cid:65) (cid:77)(cid:65)(cid:84)(cid:69)(cid:82)(cid:73)(cid:65)(cid:76)(cid:10) (cid:83)(cid:85)(cid:80)(cid:80)(cid:76)(cid:73)(cid:69)(cid:82) (cid:79)(cid:82) (cid:67)(cid:85)(cid:83)(cid:84)(cid:79)(cid:77)(cid:69)(cid:82) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:67)(cid:79)(cid:77)(cid:80)(cid:65)(cid:78)(cid:89) or other group member, or an ofﬁcer of or otherwise associated directly or indirectly with a material supplier or customer; (cid:115)(cid:0) (cid:72)(cid:65)(cid:83) (cid:78)(cid:79) (cid:77)(cid:65)(cid:84)(cid:69)(cid:82)(cid:73)(cid:65)(cid:76)(cid:10) (cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:65)(cid:67)(cid:84)(cid:85)(cid:65)(cid:76) (cid:82)(cid:69)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:72)(cid:73)(cid:80) (cid:87)(cid:73)(cid:84)(cid:72) (cid:84)(cid:72)(cid:69) company or another group member other than as a Director of the company; (cid:115)(cid:0) (cid:72)(cid:65)(cid:83) (cid:78)(cid:79)(cid:84) (cid:83)(cid:69)(cid:82)(cid:86)(cid:69)(cid:68) (cid:79)(cid:78) (cid:84)(cid:72)(cid:69) (cid:66)(cid:79)(cid:65)(cid:82)(cid:68) (cid:70)(cid:79)(cid:82) (cid:65) (cid:80)(cid:69)(cid:82)(cid:73)(cid:79)(cid:68) (cid:87)(cid:72)(cid:73)(cid:67)(cid:72) (cid:67)(cid:79)(cid:85)(cid:76)(cid:68)(cid:12) or could reasonably be perceived to, materially interfere with the Director’s ability to act in the best interests of the company; and (cid:115)(cid:0) (cid:73)(cid:83) (cid:70)(cid:82)(cid:69)(cid:69) (cid:70)(cid:82)(cid:79)(cid:77) (cid:65)(cid:78)(cid:89) (cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:65)(cid:78)(cid:68) (cid:65)(cid:78)(cid:89) (cid:66)(cid:85)(cid:83)(cid:73)(cid:78)(cid:69)(cid:83)(cid:83) (cid:79)(cid:82) (cid:79)(cid:84)(cid:72)(cid:69)(cid:82) relationship which could, or could reasonably be perceived to, materially interfere with the Director’s ability to act in the best interests of the company. *No non-executive Director is a supplier to or customer of the Group, nor does any non-executive Director have a contractual relationship with the Group (other than as a Director of the Company) and therefore the Board has not had to consider any materiality threshold. Review of Board Performance The Human Resources, Remuneration and Nomination Committee is responsible for determining the process for evaluating Board performance. Evaluations are conducted by way of questionnaires appropriate in scope and content to effectively review: (cid:115)(cid:0) (cid:115)(cid:0) (cid:84)(cid:72)(cid:69) (cid:80)(cid:69)(cid:82)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:78)(cid:67)(cid:69) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:34)(cid:79)(cid:65)(cid:82)(cid:68) (cid:65)(cid:78)(cid:68) (cid:69)(cid:65)(cid:67)(cid:72) (cid:79)(cid:70) (cid:73)(cid:84)(cid:83) (cid:67)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:69)(cid:83) against the requirements of their respective charters; and (cid:84)(cid:72)(cid:69) (cid:73)(cid:78)(cid:68)(cid:73)(cid:86)(cid:73)(cid:68)(cid:85)(cid:65)(cid:76) (cid:80)(cid:69)(cid:82)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:78)(cid:67)(cid:69) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:35)(cid:72)(cid:65)(cid:73)(cid:82)(cid:77)(cid:65)(cid:78) (cid:65)(cid:78)(cid:68) (cid:69)(cid:65)(cid:67)(cid:72) director. The performance of each director retiring at the next AGM is taken into account by the Board in determining whether or not the Board should support the re-election of the director. 4.2 HUMAN RESOURCES, REMUNERATION AND NOMINATION COMMITTEE role of The the Human Resources, Remuneration and Nomination Committee is to review and make recommendations to the Board on the remuneration packages and policies applicable to the Chief Executive Ofﬁcer, senior executives and Directors themselves. It also plays a role in evaluation of the performance of the Chief Executive Ofﬁcer and management succession planning. This role also includes responsibility for share schemes, incentive performance packages, superannuation entitlements, fringe beneﬁts policies and professional indemnity and liability insurance policies. The Remuneration Committee obtains independent advice on the appropriateness of remuneration packages, given trends in comparative companies both locally and internationally. The Committee also oversees the appointment and induction process for directors. It reviews the composition of the Board and makes recommendations on the appropriate skill mix, personal qualities, expertise and diversity. When a vacancy exists or there is a need for particular skills, the Committee, in consultation with the Board, determines the selection criteria based on the skills deemed necessary. Potential candidates are identiﬁed by the Committee with advice from an external consultant, where appropriate. The Board then appoints the most suitable candidate who must stand for election at the next general meeting of shareholders. The Nomination Committee is also responsible for the selection, appointment and succession planning process of the Company’s Chief Executive Ofﬁcer. Members of the Human Resources, Remuneration and Nomination Committee during the year were Dr M T Jones (Chairman), Mr W P Day, Mr J G Young, and Dr V Braach- Maksvytis. The Human Resources, Remuneration and Nomination Committee meet as and when required. The Committee has a documented charter, approved by the Board. The charter may be viewed on the Company’s website. The performance of all Directors is reviewed by the Chairman each year. Directors whose performance is unsatisfactory are asked to retire. Orbital 2010 Annual Report 11 Directors’ Report FOR THE YEAR ENDED 30 JUNE 2010 4.3 AUDIT COMMITTEE The role of the Audit Committee is to give the Board of Directors additional assurance regarding the quality and reliability of ﬁnancial information prepared for use by the Board in determining accounting policies for inclusion in the ﬁnancial report. The Committee has a documented charter, approved by the Board. The charter is available on the Company’s website. All members of the Committee must be independent, non-executive directors. Members of the Audit Committee during the year were Mr J G Young (Chairman), Mr W P Day, Dr M T Jones, and Dr V Braach-Maksvytis. The external auditors, Chief Executive Ofﬁcer, Chief Financial Ofﬁcer, Company Secretary and other ﬁnancial and accounting staff are invited to Audit Committee meetings at the discretion of the Committee. The Chief Executive Ofﬁcer and Chief Financial Ofﬁcer declared in writing to the Board that the Company’s ﬁnancial reports for the year ended 30 June 2010 present a true and fair view, in all material respects, of the Company’s ﬁnancial condition and operational results and are in accordance with relevant accounting standards. This statement is required annually. The responsibilities of the Audit Committee include, liaising with the external auditors and ensuring that the annual and half-year statutory audits/reviews are conducted in an effective manner; reviewing and ensuring management implement appropriate and prompt remedial action for any deﬁciencies identiﬁed; monitoring compliance with Australian and international taxation requirements, the Australian and United States corporations laws and Stock Exchange Listing Rules; and improving quality of the accounting function. The Audit Committee reviews the performance of the external auditors on an annual basis and meets with them to discuss audit planning matters, statutory reporting and as required for any special reviews or investigations deemed necessary by the Board. The Audit Committee also assesses whether non- audit services provided by the external auditor are consistent with maintaining the external auditor’s independence and provides advice to the Board whether the provision of such services by the external auditor is compatible with the general standard of independence of auditors imposed by the Corporations Act 2001. The Audit Committee charter provides for rotation of the external audit partner every ﬁve years. 4.4 RISK MANAGEMENT The Board oversees the establishment, implementation and review of the Company’s risk management systems, which have been established by management for assessing, monitoring and managing operational, ﬁnancial reporting and compliance risks for the Group. Responsibility for establishing and maintaining effective risk management strategies rests with senior management, accountable to the Chief Executive Ofﬁcer and the Audit Committee of the Board. The Audit Committee reviews the risk management and internal control structure implemented by management so as to obtain reasonable assurance that the Group’s assets are safeguarded and that reliable ﬁnancial records are maintained. The Chief Executive Ofﬁcer and Chief Financial Ofﬁcer have declared, in writing to the Board, that they have evaluated the effectiveness of the company’s ﬁnancial disclosure controls and procedures and have concluded that they are operating efﬁciently and effectively. Operational and other compliance risk management has also been reviewed and found to be operating efﬁciently and effectively. Details of the Company’s risk management policy are available on the Company’s website. Risk Proﬁle Risks to the Group arise from matters such as competitive technologies that may be developed, delays in government regulation, reduction in development and testing expenditure by the Company’s customers, the impact of exchange rate movements, environmental issues, occupational safety and health and ﬁnancial reporting. Internal Control Framework The Board recognises that no cost effective internal control system will preclude all errors and irregularities. The system is based upon written procedures, policies and guidelines, an organisational structure that provides an appropriate division of responsibility, and the careful selection and training of qualiﬁed personnel. Established practices ensure: (cid:115)(cid:0) (cid:35)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76) (cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69) (cid:67)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83) (cid:65)(cid:82)(cid:69) (cid:83)(cid:85)(cid:66)(cid:74)(cid:69)(cid:67)(cid:84) (cid:84)(cid:79) (cid:65)(cid:85)(cid:84)(cid:72)(cid:79)(cid:82)(cid:73)(cid:84)(cid:89) level approval procedures (cid:115)(cid:0) (cid:38)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76) (cid:69)(cid:88)(cid:80)(cid:79)(cid:83)(cid:85)(cid:82)(cid:69)(cid:83) (cid:65)(cid:82)(cid:69) (cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:79)(cid:76)(cid:76)(cid:69)(cid:68) (cid:66)(cid:89) (cid:84)(cid:72)(cid:69) (cid:85)(cid:83)(cid:69) (cid:79)(cid:70) (cid:70)(cid:79)(cid:82)(cid:87)(cid:65)(cid:82)(cid:68) exchange contracts where appropriate (cid:115)(cid:0) (cid:47)(cid:67)(cid:67)(cid:85)(cid:80)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76) (cid:83)(cid:65)(cid:70)(cid:69)(cid:84)(cid:89) (cid:65)(cid:78)(cid:68) (cid:72)(cid:69)(cid:65)(cid:76)(cid:84)(cid:72) (cid:73)(cid:83)(cid:83)(cid:85)(cid:69)(cid:83) (cid:65)(cid:82)(cid:69) (cid:77)(cid:79)(cid:78)(cid:73)(cid:84)(cid:79)(cid:82)(cid:69)(cid:68) (cid:66)(cid:89) a management committee (cid:115)(cid:0) (cid:38)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76) (cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)(cid:73)(cid:78)(cid:71) (cid:65)(cid:67)(cid:67)(cid:85)(cid:82)(cid:65)(cid:67)(cid:89) (cid:65)(cid:78)(cid:68) (cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:73)(cid:65)(cid:78)(cid:67)(cid:69) (cid:87)(cid:73)(cid:84)(cid:72) regulatory requirements (cid:115)(cid:0) (cid:35)(cid:79)(cid:77)(cid:80)(cid:76)(cid:73)(cid:65)(cid:78)(cid:67)(cid:69) (cid:87)(cid:73)(cid:84)(cid:72) (cid:69)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:65)(cid:76) (cid:82)(cid:69)(cid:71)(cid:85)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) To ensure that its engineering services are of the highest standard, the Group has obtained ISO 9001 accreditation for research, design and development services to the world’s producers of powertrain and engine management systems and the provision of general engineering services. Where risks, such as natural disasters, cannot be adequately mitigated using internal controls, those risks are transferred to third parties through insurance coverage to the extent considered appropriate. Financial Reporting The Chief Executive Ofﬁcer and Chief Financial Ofﬁcer have declared, in writing to the Board, that the Company’s ﬁnancial reports are founded on a sound system of risk management and internal compliance and control which implements the policies adopted by the Board. Monthly ﬁnancial results are reported against budgets approved by the Directors and revised forecasts for the year are prepared regularly. Environmental Regulation for environmental The Group holds a number of permits, licences and registrations regulation under both Australian Commonwealth and State legislation. These permits, licences and registrations are primarily for the storage of fuels and chemicals and the disposal of waste and are reviewed by the Group on an on-going basis. The Directors are not aware of any serious breaches during the period covered by this report. 4.5 ETHICAL STANDARDS All Directors, managers and employees are expected to act with the utmost integrity and objectivity, striving at all times to enhance the reputation and performance of the Group. 12 Annual Report 2010 Orbital Every employee has a nominated supervisor to whom they may refer any issues arising from their employment. The Board has approved a Code of Conduct, applicable to all Directors and employees of the Group, providing for the conduct of business in accordance with the highest ethical standards and sound corporate governance. The Code also incorporates the Company’s policy on trading in the Company’s securities. A Code of Ethics, relating to Accounting Practice and Financial Reporting, has also been adopted by the Board and applies speciﬁcally to the Chief Executive Ofﬁcer, Chief Financial Ofﬁcer and senior ﬁnance ofﬁcers of the Company who inﬂuence ﬁnancial performance. The Code of Ethics is complementary to the Code of Conduct, copies of both of which are available on the Company’s website. Directors and Ofﬁcers Dealing in Company Shares The Company’s policy with respect to Directors and Ofﬁcers dealing in the Company’s shares or options states that: (cid:115)(cid:0) (cid:36)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83) (cid:65)(cid:78)(cid:68) (cid:47)(cid:70)(cid:108)(cid:67)(cid:69)(cid:82)(cid:83) (cid:65)(cid:82)(cid:69) (cid:80)(cid:82)(cid:79)(cid:72)(cid:73)(cid:66)(cid:73)(cid:84)(cid:69)(cid:68) (cid:70)(cid:82)(cid:79)(cid:77) (cid:68)(cid:69)(cid:65)(cid:76)(cid:73)(cid:78)(cid:71) (cid:73)(cid:78) the Company’s securities at any time when they possess information which, if publicly disclosed, would be likely to affect the market price of the Company’s securities; (cid:115)(cid:0) (cid:36)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83) (cid:65)(cid:78)(cid:68) (cid:47)(cid:70)(cid:108)(cid:67)(cid:69)(cid:82)(cid:83) (cid:65)(cid:82)(cid:69) (cid:80)(cid:82)(cid:79)(cid:72)(cid:73)(cid:66)(cid:73)(cid:84)(cid:69)(cid:68) (cid:70)(cid:82)(cid:79)(cid:77) (cid:83)(cid:72)(cid:79)(cid:82)(cid:84) (cid:84)(cid:69)(cid:82)(cid:77) trading in the Company’s securities; (cid:115)(cid:0) (cid:36)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83) (cid:77)(cid:85)(cid:83)(cid:84) (cid:79)(cid:66)(cid:84)(cid:65)(cid:73)(cid:78) (cid:84)(cid:72)(cid:69) (cid:87)(cid:82)(cid:73)(cid:84)(cid:84)(cid:69)(cid:78) (cid:65)(cid:80)(cid:80)(cid:82)(cid:79)(cid:86)(cid:65)(cid:76) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) Chairman before undertaking any transactions involving the Company’s securities; and (cid:115)(cid:0) (cid:36)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83) (cid:65)(cid:78)(cid:68) (cid:47)(cid:70)(cid:108)(cid:67)(cid:69)(cid:82)(cid:83) (cid:65)(cid:82)(cid:69) (cid:80)(cid:82)(cid:79)(cid:72)(cid:73)(cid:66)(cid:73)(cid:84)(cid:69)(cid:68) (cid:70)(cid:82)(cid:79)(cid:77) (cid:85)(cid:78)(cid:68)(cid:69)(cid:82)(cid:84)(cid:65)(cid:75)(cid:73)(cid:78)(cid:71) transactions in the Company’s securities during the period from one month prior to the proposed release of the Company’s annual or half-year result until two days after that release. A copy of the policy is available on the Company’s website. Conﬂict of Interest In accordance with the Corporations Act 2001 and the Company’s constitution, Directors must keep the Board advised, on an ongoing basis, of any interest that could potentially conﬂict with those of the Company. Where the Board believes that a signiﬁcant conﬂict exists the Director concerned must not be present at the meeting whilst the item is considered or vote on the matter. The Board has procedures in place to assist Directors to disclose potential conﬂicts of interest. 4.6 CONTINUOUS DISCLOSURE AND COMMUNICATION WITH SHAREHOLDERS The Board of Directors aims to ensure that shareholders are informed of all major developments affecting the Group’s state of affairs. The Board has adopted a policy to identify matters that may have a material effect on the price of the Company’s securities and to notify the Australian Stock Exchange as required. This policy on Release of Price Sensitive Information is overseen and coordinated by the Company Secretary. All directors, ofﬁcers and members of the Company’s management committee are required to forward details of any potentially price sensitive information to the Company Secretary, who is also to be made aware, in advance, of proposed information disclosures (including information to be presented at private brieﬁngs) to enable consideration of the continuous disclosure requirements. Proposed announcements are to be approved by the Managing Director and either the Chairman or Company Secretary prior to release to the Australian Stock Exchange. The Company Secretary is responsible for all communications with the ASX. Information is communicated to shareholders as follows: (cid:115)(cid:0) (cid:52)(cid:72)(cid:69) (cid:65)(cid:78)(cid:78)(cid:85)(cid:65)(cid:76) (cid:108)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76) (cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84) (cid:73)(cid:83) (cid:68)(cid:73)(cid:83)(cid:84)(cid:82)(cid:73)(cid:66)(cid:85)(cid:84)(cid:69)(cid:68) (cid:84)(cid:79) (cid:65)(cid:76)(cid:76) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:72)(cid:79)(cid:76)(cid:68)(cid:69)(cid:82)(cid:83) (and to American Depositary Receipt (ADR) holders) on request in accordance with Corporation Act 2001 requirements and includes relevant information about the operations of the Group during the year, changes in the state of affairs of the Group and details of future developments, in addition to other disclosures required by the Corporations Act 2001 and US Securities Law; (cid:115)(cid:0) (cid:52)(cid:72)(cid:69) (cid:72)(cid:65)(cid:76)(cid:70)(cid:13)(cid:89)(cid:69)(cid:65)(cid:82)(cid:76)(cid:89) (cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84) (cid:67)(cid:79)(cid:78)(cid:84)(cid:65)(cid:73)(cid:78)(cid:83) (cid:83)(cid:85)(cid:77)(cid:77)(cid:65)(cid:82)(cid:73)(cid:83)(cid:69)(cid:68) (cid:108)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76) information and a review of the operations of the Group during the period. The half-year ﬁnancial report is prepared in accordance with the requirements of Accounting Standards and the Corporations Act 2001 and is lodged with Australian and United States regulatory bodies and stock exchanges. Financial reports are sent to any shareholder or ADR holder who requests them; and (cid:115)(cid:0) (cid:35)(cid:79)(cid:78)(cid:84)(cid:73)(cid:78)(cid:85)(cid:79)(cid:85)(cid:83) (cid:68)(cid:73)(cid:83)(cid:67)(cid:76)(cid:79)(cid:83)(cid:85)(cid:82)(cid:69) (cid:79)(cid:70) (cid:77)(cid:65)(cid:84)(cid:69)(cid:82)(cid:73)(cid:65)(cid:76) (cid:73)(cid:78)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:84)(cid:79) (cid:84)(cid:72)(cid:69) (cid:83)(cid:84)(cid:79)(cid:67)(cid:75) exchanges, media outlets and via the Company’s website. We encourage all shareholders to register email contact details on our website to enable concurrent electronic communication. All announcements made to market are placed on the Company’s website immediately after release to the Australian Stock Exchange. The Board encourages participation of shareholders at the Annual General Meeting to ensure a high level of accountability and identiﬁcation with the Group’s strategy and goals. Important issues are presented to the shareholders as single resolutions. The Company’s external auditor is requested to attend annual general meetings to answer any questions concerning the audit and the content of the auditor’s report. Shareholders are requested to vote on the appointment of Directors, aggregate remuneration of non-executive directors, the granting of shares to Directors and changes to the Constitution. A copy of the Constitution is available to any shareholder who requests it. The Company’s policy on Release of Price Sensitive Information and its policy on communication with shareholders are available on the Company’s website. 5. REMUNERATION REPORT - AUDITED 5.1 Principles of compensation - audited This Remuneration Report outlines the director and executive remuneration arrangements of the Company and the Group in accordance with the requirements of the Corporations Act 2001 and its Regulations. For the purposes of this report Key Management Personnel (KMP) of the Group are deﬁned as those persons having authority and responsibility for planning, directing and controlling the major activities of the Company and the Group, directly or indirectly, including any director (whether executive or otherwise) of the parent company, and the senior executives of the Group and company. Details of KMP are listed in table 5.2 remuneration The Remuneration Report also disclosures for two senior managers of the Group who are not KMP but are within the 5 highest paid members of staff not being directors. includes Orbital 2010 Annual Report 13 Directors’ Report FOR THE YEAR ENDED 30 JUNE 2010 reviews and makes The Remuneration Committee recommendations to the Board on remuneration packages and policies applicable to directors, secretary and senior executives of the Company. The performance of the Group depends upon the quality of its directors and executives. To prosper, the Company must attract, motivate and retain highly skilled directors and executives. To this end, the Company embodies the following principles in its remuneration framework: (cid:115)(cid:0) (cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:69) (cid:67)(cid:79)(cid:77)(cid:80)(cid:69)(cid:84)(cid:73)(cid:84)(cid:73)(cid:86)(cid:69) (cid:82)(cid:69)(cid:87)(cid:65)(cid:82)(cid:68)(cid:83) (cid:84)(cid:79) (cid:65)(cid:84)(cid:84)(cid:82)(cid:65)(cid:67)(cid:84) (cid:72)(cid:73)(cid:71)(cid:72) (cid:67)(cid:65)(cid:76)(cid:73)(cid:66)(cid:82)(cid:69) executives; (cid:115)(cid:0) (cid:76)(cid:73)(cid:78)(cid:75) (cid:69)(cid:88)(cid:69)(cid:67)(cid:85)(cid:84)(cid:73)(cid:86)(cid:69) (cid:82)(cid:69)(cid:87)(cid:65)(cid:82)(cid:68)(cid:83) (cid:84)(cid:79) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:72)(cid:79)(cid:76)(cid:68)(cid:69)(cid:82) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69) (cid:65)(cid:78)(cid:68) (cid:67)(cid:79)(cid:77)(cid:80)(cid:65)(cid:78)(cid:89) performance; (cid:115)(cid:0) (cid:72)(cid:65)(cid:86)(cid:69) (cid:65) (cid:83)(cid:73)(cid:71)(cid:78)(cid:73)(cid:108)(cid:67)(cid:65)(cid:78)(cid:84) (cid:80)(cid:79)(cid:82)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:69)(cid:88)(cid:69)(cid:67)(cid:85)(cid:84)(cid:73)(cid:86)(cid:69) (cid:82)(cid:69)(cid:77)(cid:85)(cid:78)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:64)(cid:65)(cid:84) risk’; and (cid:115)(cid:0) (cid:69)(cid:83)(cid:84)(cid:65)(cid:66)(cid:76)(cid:73)(cid:83)(cid:72) (cid:65)(cid:80)(cid:80)(cid:82)(cid:79)(cid:80)(cid:82)(cid:73)(cid:65)(cid:84)(cid:69)(cid:12) (cid:68)(cid:69)(cid:77)(cid:65)(cid:78)(cid:68)(cid:73)(cid:78)(cid:71) (cid:80)(cid:69)(cid:82)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:78)(cid:67)(cid:69) (cid:72)(cid:85)(cid:82)(cid:68)(cid:76)(cid:69)(cid:83) for variable executive remuneration. Data is obtained from independent surveys to ensure that compensation throughout the Group is set at market rates having regard to experience and performance. In this regard, formal performance appraisals are conducted at least annually for all employees. Compensation packages may include a mix of ﬁxed compensation, performance- based compensation and equity-based compensation. In addition to their salaries, the Group also provides non- cash beneﬁts to its key management personnel. Executive Directors and Senior Managers Fixed compensation Fixed compensation consists of base compensation (which is calculated on a total cost basis and includes any FBT charges related to employee beneﬁts including motor vehicles), as well as employer contributions to superannuation funds. levels are reviewed annually by Compensation the remuneration committee through a process that considers segment and overall performance of the Group. In addition, data from independent surveys is reviewed to ensure the directors’ and senior executives’ compensation is competitive in the market place. A senior executive’s compensation is also reviewed on promotion. Performance-linked compensation Performance linked compensation includes both medium- term and long-term incentives and is designed to reward key management personnel for meeting or exceeding their ﬁnancial and personal objectives. The medium-term incentive (MTI), which has replaced the short term incentive, is an “at risk” bonus provided in the form of cash, while the long-term incentive (LTI) is provided as ordinary shares of Orbital Corporation Limited under the rules of the various Share Plans. In considering the Group’s performance and beneﬁts for shareholders wealth the Remuneration Committee has regard to the following indices in respect of the current ﬁnancial year and the previous four ﬁnancial years. Proﬁt after tax, Pro-rata Consolidated Sales and Operating Cash Flows are considered in setting the MTI as they are considered important medium term performance targets. Dividends, changes in share price, and return of capital are included in the Total Shareholder Return (“TSR”) calculation which is the performance criterion, along with EPS, for the LTI. 14 Annual Report 2010 Company performance for the current year and last 4 years is as follows: 2010 2009 2006 $’000 $’000 $’000 $’000 $’000 2008 2007 Proﬁt after tax 4,516 (2,451) 469 1,333 515 Pro-rata consolidated sales Operating cash ﬂows 61,081 63,867 59,875 65,004 49,786 (4,372) (856) 73 (182) (1,868) Dividends paid - - - - - Change in share price ($) Return of capital (0.050) (0.035) (0.190) 0.209 (0.014) - - - - - Medium-term Incentives Executive directors and senior executives may receive bonuses based on the achievement of key performance indicators (“KPI’s”) related to the performance of the Group over the medium term. The three KPI’s chosen by the Human Resource, Remuneration and Nomination Committee on 20 October 2009 relate to 1) Proﬁt after tax, 2) Pro-rata Consolidated Sales, and 3) Operating Cash Flows. These three measures are chosen as they directly align the individual’s reward to the Group’s strategy and performance. The medium term incentives are based on the following minimum thresholds 1). Proﬁt (after provision for bonuses), 2). Pro-rata Consolidated Sales >$100 million, and 3). Positive Operating Cash Flow. The bonus elements 2 and 3 can only be paid if element 1 is achieved. Achievement of the KPI’s may result in bonuses of between 0 – 180% of total ﬁxed remuneration. The maximum bonus is only payable if the stretch targets on all KPI’s are achieved. No bonus is awarded where performance falls below a minimum. No bonus is awarded unless a target is achieved which is higher than that which has already been achieved and rewarded. Estimates of the minimum and maximum possible total value of the award is as follows: Name / Position Terry Stinson Chief Executive Ofﬁcer Keith Halliwell Chief Financial Ofﬁcer Tony Fitzgerald Director, Orbital Autogas Systems Amount (Min – Max) 0 - $630,000 0 - $359,478 0 - $332,013 Geoff Cathcart Director, Consulting Services and Engineering 0 - $269,325 David Worth Chief Engineer Ian Veitch Company Secretary 0 - $166,971 0 - $72,114 Orbital As a result of the KPI in relation to proﬁt after tax being achieved in the year ended 30 June 2010 the following medium term incentives are payable for the current ﬁnancial year: Period, when compared to the TSR of the peer group will determine the percentage of shares originally offered which will be granted to the Executive. The following table sets out the relevant percentages based on various percentile rankings of the Company: Amount $140,000 Company Performance % of offered shares Name / Position Terry Stinson Chief Executive Ofﬁcer Keith Halliwell Chief Financial Ofﬁcer Tony Fitzgerald Director, Orbital Autogas Systems Geoff Cathcart Director, Consulting Services and Engineering David Worth Chief Engineer Ian Veitch Company Secretary $79,884 $73,781 $59,850 $37,105 $16,025 No bonus will be paid unless the Board is satisﬁed that Orbital has sufﬁcient cash reserves. Long-term Incentives Employee Share Plan No.1 Senior executives (together with all other eligible employees) are each offered shares in the Company, at no cost to the employees, to the value of $1,000 per annum under the terms of the Company’s Employee Share Plan. There are no performance conditions, because the plan is designed to align the interests of participating employees with those of shareholders. Executive Directors do not participate in Share Plan No.1. Executive Long Term Share Plan Executives may also be offered rights in the Company’s Executive Long Term Share Plan under which offered shares will be granted for no consideration subject to the satisfaction of performance conditions over a 3 year period or subject to Board discretion for other qualifying reasons. The performance conditions, which are based 50% (FY2010 offer)(100%: FY2009 and FY2008 offers) on the relative ranking of the Total Shareholder Return (“TSR”) of the Company to a group of selected peers, and 50% (FY2010 offer)(0%: FY 2009 and FY2008 offer) on Earnings Per Share (EPS), apply to determine the number of shares (if any) to be granted to the Executives. TSR is the percentage increase in a company’s share price plus reinvested dividends over a given period and reﬂects the increase in value delivered to shareholders over that period. The peer group to which the Company’s TSR will be compared will comprise the 50 smallest companies, other than resource companies and property and investment trust companies, within the S&P / ASX 300 Index. These companies have a similar market capitalisation to the Company. The TSR performance criterion was chosen as it is widely accepted as one of the best indicators of shareholder wealth creation as it includes share price growth, dividends and other capital adjustments. In addition, this criterion provides a readily obtained objective means of measuring the Group’s performance against its peer group. (TSR Ranking) issued to each executive Up to the 50th percentile 0% At or above the 50th percentile but below the 75th percentile 50% to 99% (on a straight line basis) At or above the 75th percentile but below the 90th percentile At or above the 90th percentile 100% 125% No shares will be granted under the FY2009 or FY2008 offers unless the Company’s TSR is at or above the 50th percentile. No shares will be granted under the FY2010 offer unless the Company’s TSR is at or above the 50th percentile or the EPS for the year ended 30 June 2012 is at or above 1.5 cents per share. TSR Performance targets under the LTI were met in FY2010 and as a result 911,400 (2009: 891,000) shares were issued to KMPs. At the Company’s Annual General Meeting in October 2009, shareholders approved the above plan in relation to the ongoing remuneration of Executive Directors and senior executives. Performance Rights Plan The Company also introduced a Performance Rights Plan in 2009 as part of its long-term incentive arrangements for senior executives, which was approved by shareholders in October 2009. Under the Performance Rights Plan, performance rights will only be issued if the terms and conditions detailed below are satisﬁed. A performance right is a right to acquire one fully paid ordinary share in the Company. Until they are exercised, performance rights: (a) do not give the holder a legal or beneﬁcial interest in shares of the Company; and (b) do not enable participating executives to receive dividends, rights on winding up, voting rights or other shareholder beneﬁts. Performance rights issued under the Performance Rights Plan will be exercisable if: (a) a performance hurdle is met over the periods speciﬁed by the Board; or (b) (c) the Board allows early exercise on cessation of employment; or it is determined by the Board in light of speciﬁc circumstances. The terms and conditions of the offer of Performance Rights made during the year ended 30 June 2009 are as follows: (a) Mr T D Stinson will be awarded 11,500,000 The Company’s TSR ranking at the end of the Performance performance rights; Orbital 2010 Annual Report 15 Directors’ Report FOR THE YEAR ENDED 30 JUNE 2010 (b) the grant of performance rights will be in seven tranches, each tranche with a different speciﬁed share price target as set out below: Tranche Number of performance rights Share price target 1 2 3 4 5 6 7 2,000,000 2,000,000 2,000,000 2,000,000 1,250,000 1,250,000 1,000,000 $0.25 $0.50 $0.75 $1.00 $2.00 $3.00 $5.00 The target share prices were chosen as they directly align the directors reward with group strategy. (c) the acquisition price and exercise price of the performance rights will be nil. (d) Mr T D Stinson will only be permitted to exercise a performance right if: (cid:115)(cid:0) (cid:115)(cid:0) (cid:84)(cid:72)(cid:69) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:78)(cid:89) (cid:65)(cid:84)(cid:84)(cid:65)(cid:73)(cid:78)(cid:83) (cid:84)(cid:72)(cid:69) (cid:83)(cid:80)(cid:69)(cid:67)(cid:73)(cid:108)(cid:69)(cid:68) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:80)(cid:82)(cid:73)(cid:67)(cid:69) (cid:84)(cid:65)(cid:82)(cid:71)(cid:69)(cid:84) (see table above) within eight years from the date of grant of the performance right; and (cid:84)(cid:72)(cid:69) (cid:83)(cid:80)(cid:69)(cid:67)(cid:73)(cid:108)(cid:69)(cid:68) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:80)(cid:82)(cid:73)(cid:67)(cid:69) (cid:84)(cid:65)(cid:82)(cid:71)(cid:69)(cid:84) (cid:73)(cid:83) (cid:65)(cid:76)(cid:83)(cid:79) (cid:65)(cid:67)(cid:72)(cid:73)(cid:69)(cid:86)(cid:69)(cid:68) (cid:65)(cid:84) the end of two years from the date the target is ﬁrst achieved (“Vesting Date”) based on the Company’s average closing share price over a 90 day period up to and including the Vesting Date; (e) If the speciﬁed share price target is either not achieved within eight years from the date of grant, or if so achieved, not also achieved at the end of the Vesting Date, the performance right will lapse. the contract immediately by making payment equal to 12 months pay in lieu of notice. The Chief Executive Ofﬁcer has the right to terminate the contract on 3 months notice. The Chief Executive Ofﬁcer has no entitlement to a termination payment in the event of removal for misconduct. Contractual arrangements between the Company and other senior executives are also unlimited in term and provide for termination on one month’s notice (or payment in lieu) in accordance with the Company’s standard conditions. On termination of employment, executive directors and senior executives are also entitled to receive their statutory entitlements of accrued annual and long service leave, together with any superannuation beneﬁts. As part of the terms and conditions of employment the Company does not permit executives to enter into arrangements limiting their exposure to risk in relation to the unvested LTI awards. Non-executive Directors Total remuneration for all non-executive Directors, last voted upon by shareholders at the 2001 Annual General Meeting, is not to exceed $400,000 per annum. When setting fees and other compensation for non-executive Directors, the Board seeks independent advice and applies Australian and international benchmarks. The Chairman’s base fee is $100,000 per annum, plus a further fee of $5,050 per annum for membership of the Audit Committee. Other non-executive Directors’ base fees are $50,000 per annum. An additional fee of $5,050 per annum is payable for membership (other than as Chairman) of the Audit Committee. The Chairman of that Committee receives an additional fee of $7,070 per annum. The Chairman of the Human Resources, Remuneration and Nomination Committee receives an additional fee of $5,000 per annum for that position. Non-executive Directors do not receive performance related remuneration. No performance rights were granted during the year ended 30 June 2010. 5.2 Directors’ and Executive Ofﬁcers’ Remuneration Company and Group - audited Service Agreements The service contract for the Chief Executive Ofﬁcer is unlimited in term, but capable of termination on 12 months notice by the Company. The Company has the right to terminate Details of the nature and amount of each major element of remuneration of each director of the Company and each of the ﬁve named Company executives, and relevant group executives who receive the highest remuneration are: 16 Annual Report 2010 Orbital Salary and Director’s Fees $ 96,376 96,376 52,358 52,358 55,092 52,940 50,505 50,505 254,331 252,179 Year 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 Short Term Post Employment Share Based Payments Employer Employee Performance Cash Bonuses $ (a) Superannuation Contributions $ Share Plans $ (b)(c) Total $ Rights Plan $ (d) Total $ Proportion of remuneration performance related % - - - - - - - - - - 96,376 96,376 52,358 52,358 55,092 52,940 50,505 50,505 8,674 8,674 4,712 4,712 4,958 4,764 4,545 4,545 254,331 252,179 22,889 22,695 - - - - - - - - - - - - - - - - - - - - 105,050 105,050 57,070 57,070 60,050 57,704 55,050 55,050 277,220 274,874 2010 2009 2010 2009 321,101 321,101 575,432 573,280 140,000 - 140,000 - 461,101 321,101 715,432 573,280 2010 2009 2010 2009 2010 2009 245,701 245,956 225,629 227,564 186,998 186,998 79,884 - 73,781 - 59,850 - 325,585 245,956 299,410 227,564 246,848 186,998 38,532 38,532 61,421 61,227 27,439 27,098 27,076 24,497 16,669 16,669 58,383 25,133 58,383 25,133 46,982 45,723 39,917 37,353 31,172 24,690 49,283 33,019 49,283 33,019 607,299 417,785 884,519 692,659 - - - - - - 400,006 318,777 366,403 289,414 294,689 228,357 - - - - - - - - - - 40.8% 13.9% 28.0% 8.4% 31.7% 14.4% 31.0% 12.9% 30.9% 10.7% 2010 2009 170,203 165,106 37,105 - 207,308 165,106 2010 147,926 16,025 163,951 20,424 19,813 12,325 16,002 17,280 11,448 - - - 243,734 202,199 187,724 21.8% 8.5% 14.6% 2009 160,486 - 160,486 19,258 10,725 - 190,469 5.6% 2010 2009 976,457 986,110 266,645 1,243,102 986,110 - 103,933 107,335 145,521 135,771 - 1,492,556 - 1,229,216 27.6% 11.0% Directors: Non-executive W Peter Day Chairman (Non-executive) J Grahame Young Director (Non-executive) Mervyn T Jones Director (Non-executive) Vijoleta Braach-Maksvytis Director (Non-executive) Total Consolidated, all non-executive directors Executive Terry D Stinson (e) Director and Chief Executive Ofﬁcer Total Consolidated, all speciﬁed directors Key Management Personnel Keith A Halliwell Chief Financial Ofﬁcer B Anthony Fitzgerald Director, Orbital Autogas Systems Geoff P Cathcart Director, Consulting Services & Engineering Speciﬁed Senior Managers David R Worth (f) Chief Engineer Ian G Veitch (f) Company Secretary Sam Leighton (f) Director, Sales & Marketing Total Consolidated, all speciﬁed executives Notes in relation to the table of directors’ and executive ofﬁcers remuneration – audited (a) (b) (c) (d) Bonuses are those paid or accrued as payable in relation to the year reported. The fair value of the employee share plan is based upon the market value (at offer date) of shares offered. The fair value of the Executive Long Term Share plan (“ELTSP”) is calculated at the date of grant through utilisation of the assumptions underlying the Black-Scholes methodology to produce a Monte-Carlo simulation model and is allocated to each reporting period evenly over the period from grant date to vesting date. The value disclosed is the portion of the fair value of the rights recognised in this reporting period. In valuing the rights the market based hurdles that must be met before the executive long term share plan rights vest in the holder have been taken into account. The following factors and assumptions were used in determining the fair value of rights issued under the ELTSP on grant date: Grant Date 31-Aug-07 31-Aug-08 31-Aug-09 Life 3 years 3 years 3 years Fair Value per right 17.3 cents 5.8 cents 3.8 cents Exercise Price nil nil nil Market price of shares on grant date 22.0 cents 7.9 cents 5.5 cents Expected volatility 45.40% 62.70% 65.00% Risk free interest rate 6.20% 5.68% 5.03% The fair value of the Performance Rights is calculated at the date of grant through utilisation of the assumptions underlying the Black-Scholes methodology to produce a Monte-Carlo simulation model and allocated to each reporting period evenly over the period from grant date to vesting date. The value disclosed is the portion of the fair value of the performance rights recognised in this reporting period. In valuing the performance rights the hurdles that must be met before the executive long term share plan shares vest in the holder have been taken into account. Orbital 2010 Annual Report 17 Directors’ Report FOR THE YEAR ENDED 30 JUNE 2010 Grant Date 31-Aug-08 31-Aug-08 31-Aug-08 31-Aug-08 31-Aug-08 31-Aug-08 31-Aug-08 Life 10 years 10 years 10 years 10 years 10 years 10 years 10 years Fair Value per right 4.7 cents 3.5 cents 2.8 cents 2.3 cents 1.3 cents 0.9 cents 0.5 cents Exercise Price $0.25 $0.50 $0.75 $1.00 $2.00 $3.00 $5.00 Market price of shares on grant date 7.9 cents 7.9 cents 7.9 cents 7.9 cents 7.9 cents 7.9 cents 7.9 cents Expected volatility 55.00% 55.00% 55.00% 55.00% 55.00% 55.00% 55.00% Risk free interest rate 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% (e) (f) Mr Stinson was appointed to the Board effective 21 June 2008 Mr Worth, Mr Veitch and Mr Leighton are included above as their remuneration is within the 5 highest paid executives not being directors or KMP. 5.3 Analysis of Bonuses and Performance Based Remuneration - audited The medium-term cash bonus for the current year was $406,645 (2009: $nil). The amount of cash bonus was determined by reference to the audited proﬁt of the Group for the year ended 30 June 2010 and in accordance with the medium term incentive plan approved by the Board of Directors in October 2009 as detailed on page 14. The medium-term cash bonus was fully vested in the recipient in the ﬁnancial year. No amounts vest in future years in respect of the bonus scheme. No bonus will be paid unless the Board is satisﬁed that Orbital has sufﬁcient cash reserves. 5.4 Equity Instruments - audited All shares refer to ordinary shares of Orbital Corporation Limited. 5.4.1 Analysis of Shares Offered as Compensation - audited Details of the nature and amount of the shares offered under the LTI to each key management person and speciﬁed senior managers during the reporting period are as shown below. Please refer to footnote (b) below for the terms and conditions relating to the granting of the rights offered under the Executive Long Term Share Plan. Directors: Executive T D Stinson Key Management Personnel K A Halliwell B A Fitzgerald G P Cathcart Speciﬁed Senior Managers DW Worth IG Veitch Year 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 Employee Share Plan No. 1 Executive Long Term Share Plan Performance Rights Plan Number of shares issued Share Price "Value (a) $ Number of Rights Granted Value (b) $ Number of Rights Vested Number of Rights Granted Value (c) $ Number of Rights Vested - - - - - - 5,250,000 1,300,000 244,125 75,400 - - - - 11,500,000 298,500 16,246 $0.0616 1,000 19,234 $0.0520 1,000 16,246 $0.0616 1,000 19,234 $0.0520 1,000 16,246 $0.0616 1,000 19,234 $0.0520 1,000 2,665,000 700,000 2,460,000 700,000 1,995,000 400,000 123,923 409,200 40,600 423,000 114,390 341,000 40,600 351,000 161,200 92,768 117,000 23,200 16,246 $0.0616 1,000 19,234 $0.0520 1,000 16,246 $0.0616 1,000 19,234 $0.0520 1,000 695,000 250,000 600,000 150,000 32,318 148,800 14,500 108,000 31,000 27,900 - 8,700 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (a) (b) (c) The fair value of the employee share plan No. 1 based upon the market value (at offer date of 31 October 2009 and 31 October 2008 respectively) of shares offered. These awards are fully vested. Represents the fair value of rights (2010: 4.6 cents and 2009: 5.8 cents) offered on 31 August 2009 and 31 August 2008 respectively using a Monte-Carlo simulation model. The granting of the shares offered on 31 August 2009 is subject to the achievement of two performance conditions; a) 50% related to the Total Shareholder Return (“TSR”) of the Company compared to a peer group of selected companies over a three year period, and b) 50% related to the Group achieving earnings in excess of 1.5 cents per share for the year ending 30 June 2012. The granting of the shares offered prior to 31 August 2009 is subject to the achievement of a single performance condition related to the Total Shareholder Return (“TSR”) of the Company compared to a peer group of selected companies over a three year period. These performance conditions were met in respect of shares offered in August 2006 and August 2005 and shares in relation to those offers were vested at the expiration of the performance period during the 2010 and 2009 ﬁnancial years. Represents the fair value of performance rights offered on 31 August 2008 using a Monte-Carlo simulation model. The granting of these performance rights is subject to the Company attaining the speciﬁed share price target within eight years from the date of grant of the performance right and the speciﬁed share price target is also achieved at the end of two years from the date the target is ﬁrst achieved. No speciﬁed share price targets have been met since the performance rights were offered in 2008. 18 Annual Report 2010 Orbital 5.4.2 Modiﬁcation of terms of equity-settled share-based 13. DIRECTORS’ INTERESTS payment transactions - audited The performance hurdles used for the determination of the number of shares that executives actually receive for the offer made in August 2009 differ from the performance hurdles of offers made in previous ﬁnancial years. The granting of the shares offered on 31 August 2009 is subject to the achievement of two performance conditions; a) 50% related to the Total Shareholder Return (“TSR”) of the Company compared to a peer group of selected companies over a three year period, and b) 50% related to the Group achieving earnings in excess of 1.5 cents per share for the year ending 30 June 2012. The granting of the shares offered prior to 31 August 2009 is subject to the achievement of a single performance condition related to the Total Shareholder Return (“TSR”) of the Company compared to a peer group of selected companies over a three year period. End of Remuneration Report 6. PRINCIPAL ACTIVITIES Orbital is an international developer of innovative technical solutions for a cleaner world. Orbital provides innovation, design, product development and operational improvement services to the world’s producers, suppliers, regulators and end users of engines and engine management systems for applications in motorcycles, marine and recreational vehicles, automobiles and trucks. There were no signiﬁcant changes in the nature of the activities of the Group during the year. 7. CONSOLIDATED RESULT The consolidated proﬁt after income tax for the year attributable to the members of Orbital was $4,515,451 (2009:$2,451,250 loss) 8. OPERATING AND FINANCIAL REVIEW A comprehensive review of operations of the consolidated entity is set out in pages 2 to 7 of this report. 9. DIVIDENDS No dividend has been paid or proposed in respect of the current ﬁnancial year. 10. STATE OF AFFAIRS There were no signiﬁcant changes in the state of affairs of the Group during the ﬁnancial year, other than as reported elsewhere in the ﬁnancial statements. 11. EVENTS SUBSEQUENT TO BALANCE DATE There has not arisen in the interval between the end of the ﬁnancial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the Company, to affect signiﬁcantly the operations of the Group, the results of those operations, or the state of affairs of the Group, in future years. 12. LIKELY DEVELOPMENTS AND EXPECTED RESULTS Information as to the likely developments in the operations of the Group is set out in the review of operations above. Further information as to the 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 to include such information would be likely to result in unreasonable prejudice to the Group. The relevant interest of each Director in the share capital of the Company shown in the Register of Directors’ Shareholdings as at the date of this report is as follows: - Director W P Day T D Stinson J G Young M T Jones Ordinary Shares ELTSP Rights Performance Rights 100,000 - - 2,500,880 6,550,000 11,500,000 748,537 180,000 - - - - - - V Braach-Maksvytis - 3,529,417 6,550,000 11,500,000 14. SHARE OPTIONS The Company has no unissued shares under option at the date of this report. 15. INDEMNIFICATION AND INSURANCE OF OFFICERS To the extent permitted by law, the Company indemniﬁes every ofﬁcer of the Company against any liability incurred by that person: (a) (b) in his or her capacity as an ofﬁcer of the Company; and to a person other than the Company or a related body corporate of the Company unless the liability arises out of conduct on the part of the ofﬁcer which involves a lack of good faith. During the year the Company paid a premium in respect of a contract insuring all Directors, Ofﬁcers and employees of the Company (and/or any subsidiary companies of which it holds greater than 50% of the voting shares) against liabilities that may arise from their positions within the Company and its controlled entities, except where the liabilities arise out of conduct involving a lack of good faith. The Directors have not included details of the nature of the liabilities covered or the amount of the premium paid in respect of the insurance contract as disclosure is prohibited under the terms of the contract. 16. NON-AUDIT SERVICES During the year Ernst & Young, the Company’s auditor, has performed certain other services in addition to their statutory duties. The Board has considered the non-audit services provided during the year by the auditor and in accordance with advice provided by resolution of the Audit Committee is satisﬁed that the provision of those non-audit services by the auditor during the year is compatible with, and did not compromise, the auditor independence requirements of the Corporations Act 2001 for the following reasons: (cid:115)(cid:0) (cid:65)(cid:76)(cid:76) (cid:78)(cid:79)(cid:78)(cid:13)(cid:65)(cid:85)(cid:68)(cid:73)(cid:84) (cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:69)(cid:83) (cid:87)(cid:69)(cid:82)(cid:69) (cid:83)(cid:85)(cid:66)(cid:74)(cid:69)(cid:67)(cid:84) (cid:84)(cid:79) (cid:84)(cid:72)(cid:69) (cid:67)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:69) governance procedures adopted by the Company and have been reviewed by the Audit Committee to ensure that they do not impact the integrity and objectivity of the auditor; (cid:115)(cid:0) (cid:84)(cid:72)(cid:69) (cid:78)(cid:79)(cid:78)(cid:13)(cid:65)(cid:85)(cid:68)(cid:73)(cid:84) (cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:69)(cid:83) (cid:68)(cid:79) (cid:78)(cid:79)(cid:84) (cid:85)(cid:78)(cid:68)(cid:69)(cid:82)(cid:77)(cid:73)(cid:78)(cid:69) (cid:84)(cid:72)(cid:69) (cid:71)(cid:69)(cid:78)(cid:69)(cid:82)(cid:65)(cid:76) principles relating to auditor independence as set out in Professional Statement F1 Professional Independence, as they did not involve reviewing or auditing the auditor’s Orbital 2010 Annual Report 19 Directors’ Report FOR THE YEAR ENDED 30 JUNE 2010 own work, acting in a management or decision making capacity for the Company, acting as an advocate for the Company or jointly sharing risks and rewards. Details of the amounts paid to the auditor of the Company, Ernst & Young, and its related practices for audit and non-audit services provided during the year are shown in note 40 to the ﬁnancial statements. 17. LEAD AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 The Lead Auditor’s Independence Declaration under section 307C of the Corporations Act 2001 on page 21 forms part of the directors’ report for the ﬁnancial year ended 30 June 2010. 18. ROUNDING OFF The Company is of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and in accordance with that Class Order, amounts in the ﬁnancial report and Directors’ Report have been rounded off to the nearest thousand dollars unless otherwise indicated. Signed in accordance with a resolution of the Directors: W P DAY Director T D STINSON Managing Director Dated at Perth, Western Australia this 26th day of August 2010. 20 Annual Report 2010 Orbital Lead Auditor’s Independence Declaration Auditor's independence declaration to the Directors of Orbital Corporation Limited In relation to our audit of the financial report of Orbital Corporation Limited and its controlled entities for the year ended 30 June 2010, 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 G Lotter Partner Perth 26 August 2010 GL;HG;ORBITAL;064 Liability limited by a scheme approved under Professional Standards Legislation Orbital 2010 Annual Report 21 Income Statements FOR THE YEAR ENDED 30 JUNE 2010 Engineering services income Sale of goods Licence and royalty income Other revenue Total Revenue Other income Raw materials and consumables used Change in inventories of ﬁnished goods and work in progress Employee beneﬁts expenses Depreciation and amortisation Engineering consumables and contractors Travel and accommodation Communications and computing Patent costs Insurance costs Audit, compliance and listing costs Finance costs Other expenses NOTE CONSOLIDATED 2010 $'000 2009 $'000 9,621 6,203 1,199 242 8,798 6,264 1,115 336 17,265 16,513 8,759 (5,245) 638 (10,792) (1,004) (2,085) (866) (791) (338) (441) (560) (755) 4,370 (6,284) 1,387 (9,820) (1,094) (1,534) (1,187) (715) (431) (404) (693) (726) (1,531) (1,532) 7 8 9(d) 9(d) 9(a) 9(b) 9(c) Share of proﬁt from equity accounted investment 16 1,874 1,846 Proﬁt/(loss) before income tax Income tax (expense)/beneﬁt Proﬁt/(loss) for the year attributable to the members of the parent entity 10(a) 4,128 388 4,516 (304) (2,147) (2,451) Earnings per share: Basic earnings per share (in cents) Diluted earnings per share (in cents) 11 11 0.94 0.93 (0.51) (0.51) The income statements are to be read in conjunction with the notes to the Financial statements set out on pages 26 to 66. 22 Annual Report 2010 Orbital Statements of Comprehensive Income FOR THE YEAR ENDED 30 JUNE 2010 Net proﬁt/(loss) for the period Other comprehensive income Foreign currency translation Share of cash ﬂow hedge reserve for equity accounted investment Other comprehensive income for the year, net of tax CONSOLIDATED 2010 $’000 2009 $’000 4,516 (2,451) (1,169) - (1,169) 3,680 72 3,752 TOTAL COMPREHENSIVE INCOME FOR THE YEAR 3,347 1,301 Total comprehensive income for the period attributable to owners of the parent 3,347 1,301 The statements of comprehensive income are to be read in conjunction with the notes to the ﬁnancial statements set out on pages 26 to 66. Statements of Changes in Equity FOR THE YEAR ENDED 30 JUNE 2010 Share Capital Retained Employee Foreign Cash Flow Total Proﬁts/ Equity Currency Hedge (Accumulated Beneﬁts Transalation Reserve Losses) $'000 $'000 Reserve $'000 Reserve $'000 $'000 $'000 225,720 (207,773) 896 (3,281) (72) 15,490 - - - (2,451) - (2,451) - - (2,451) 3,680 3,680 72 72 3,752 1,301 - - - - At 1 July 2008 Loss for period Other comprehensive income Total comprehensive income for the period Transactions with owners in their capacity as owners Cancelled share capital (207,000) 207,000 Shares issued in accordance with share plan Share based payments Balance at 30 June 2009 248 87 - - 19,055 (3,224) (248) 236 884 - - - 399 At 1 July 2009 Proﬁt for period Other comprehensive income Total comprehensive income for the period Transactions with owners in their capacity as owners Shares issued in accordance with share plan Share based payments Balance at 30 June 2010 19,055 (3,224) 884 399 - - - 4,516 - 4,516 - - - - (1,169) (1,169) 117 89 - - (117) 250 - - 19,261 1,292 1,017 (770) - - - - - - - - - - - - - 323 17,114 17,114 4,516 (1,169) 3,347 - 339 20,800 The statements of changes in equity are to be read in conjunction with the notes to the ﬁnancial statements set out on pages 26 to 66. Orbital 2010 Annual Report 23 Statements of Financial Position AS AT 30 JUNE 2010 Assets Current assets Cash and cash equivalents Other ﬁnancial assets Trade and other receivables Inventories Total Current Assets Non-Current Assets Investment in associate Deferred tax assets Property, plant & equipment Intangibles and goodwill Total Non-Current Assets Total Assets Liabilities Current liabilities Trade payables and other liabilities Interest bearing borrowings Employee beneﬁts Deferred revenue Government grants Other provisions Total Current Liabilities Non-current liabilities Long term borrowings Employee beneﬁts Government grants Total Non-Current Liabilities Total Liabilities Net Assets Equity Share capital Reserves Retained proﬁts/(Accumulated losses) Total Equity NOTE CONSOLIDATED 2010 $'000 2009 $'000 12 13 14 15 16 17 18 19 20 21 23 24 27 25 26 23 27 3,608 - 5,084 3,722 12,414 11,534 5,215 7,911 1,525 26,185 6,623 3,500 5,080 3,084 18,287 11,264 5,054 7,397 533 24,248 38,599 42,535 2,676 2,056 2,420 316 225 173 7,866 7,604 455 1,874 9,933 3,841 1,520 1,033 - - 92 6,486 14,873 1,302 2,760 18,935 17,799 25,421 20,800 17,114 28 29 29 19,261 247 1,292 19,055 1,283 (3,224) 20,800 17,114 The statements of ﬁnancial position are to be read in conjunction with the notes to the ﬁnancial statements set out on pages 26 to 66. 24 Annual Report 2010 Orbital Statements of Cash Flow FOR THE YEAR ENDED 30 JUNE 2010 Cash Flows from Operating Activities Cash receipts from customers Cash paid to suppliers and employees Cash used in operations Interest received Interest paid Income taxes paid Net cash used in operating activities Cash Flows from Investing Activities Dividend received from associate Proceeds from sale of property, plant & equipment Acquisition of property, plant & equipment Costs incurred on development of intangibles Redemption/(acquisition) of short term deposits Net cash provided by/(used in) investing activities Cash Flows from Financing Activities Proceeds from borrowings Repayment of borrowings Net cash provided by ﬁnancing activities Net decrease in cash and cash equivalents Cash and cash equivalents at 1 July Effects of exchange rate ﬂuctuations on the balances of cash held in foreign currencies NOTE CONSOLIDATED 2010 $’000 2009 $’000 34 17,947 (22,925) (4,978) 242 (107) (206) (5,049) 677 44 (1,394) (1,128) 3,500 1,699 536 (200) 336 21,385 (23,137) (1,752) 336 - (681) (2,097) 4,577 - (3,226) (170) (3,500) (2,319) 1,520 - 1,520 (3,014) (2,896) 6,623 8,804 (1) 715 Cash and cash equivalents at 30 June 12 3,608 6,623 Non-Cash Investing Activities On 31 March 2009, the Group executed contracts that offset the requirement for the payment of US$4,000,000 to maintain a 50% interest in Synerject with the entitlement to receive US$4,000,000 for the sale of an 8% interest in Synerject. There were no other non-cash investing or ﬁnancing activities for the years ended 30 June 2009 and 2010. Refer to note 6 for details of non-cash operating items. The statements of cash ﬂows are to be read in conjunction with the notes to the ﬁnancial statements set out in pages 26 to 66. Orbital 2010 Annual Report 25 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2010 Notes Index 1. Reporting Entity 2. Basis of Preparation (a) Statement of Compliance with IFRS (b) Basis of Measurement (c) Functional and Presentation Currency (d) Use of Estimates and Judgements 3. Signiﬁcant accounting policies (a) New accounting standards and Page 26 26 26 26 26 26 26 interpretations (b) Basis of consolidation (c) Foreign currency (d) Financial instruments (e) Property, plant and equipment Intangibles (f) Inventories (g) (h) Impairment (i) Share capital (j) Employee beneﬁts (k) Provisions – Warranties (l) Revenue recognition (m) Operating leases (n) Finance expense Income tax (o) (p) Operating segment (q) Goods and services tax (r) Earnings per share (s) Government grants (t) New standards and interpretations not yet effective 4. Financial risk management objectives and policies 5. Signiﬁcant accounting judgements, estimates and assumptions 6. Operating segments 7. Other revenue 8. Other income 9. Expenses 10. Taxation 11. Earnings per share 12. Cash and cash equivalents 13. Other ﬁnancial assets 14. Trade and other receivables 15. Inventories 16. Investment in associate 17. Deferred tax assets and liabilities 18. Property, plant and equipment 19. Intangibles and goodwill 20. Trade and other payables 21. Interest bearing loans and borrowings 22. Financing arrangements 23. Employee beneﬁts 24. Deferred revenue 25. Other provisions 26. Long term borrowings 27. Government grants 28. Share capital 29. Retained Proﬁts/(Accumulated losses) and reserves 30. Consolidated entity 31 Information relating to Orbital Corporation Limited 32. Related parties 33. Key management personnel 34. Notes to the statement of cash ﬂows 35. Share based payments plans 36. Deﬁned contribution superannuation fund 37. Commitments 38. Contingent liabilities 39. Subsequent events 40. Remuneration of auditors 26 28 29 29 30 30 30 31 31 31 32 32 32 32 32 32 33 33 33 34 36 39 40 43 43 43 44 45 45 46 46 47 47 49 50 51 51 52 52 53 53 54 54 55 55 56 57 58 58 59 62 62 65 65 66 66 66 1. REPORTING ENTITY Orbital Corporation Limited (the "Company") is a company domiciled in Australia. The address of the Company’s registered ofﬁce is 4 Whipple Street, Balcatta, Western Australia. The consolidated ﬁnancial report of the Company for the year ended 30 June 2010 comprises the Company and its subsidiaries (together referred to as the "Group") and the Group’s investment accounted for using the equity method. The consolidated ﬁnancial report was authorised for issue by the directors on 26 August 2010. 2. (a) BASIS OF PREPARATION Statement of Compliance The ﬁnancial report complies with Australian Accounting Standards as issued by the Australian Accounting Standards Board and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. (b) Basis of Measurement The consolidated ﬁnancial statements have been prepared on the historical cost basis. (c) Functional and Presentation Currency These consolidated ﬁnancial statements are presented in Australian dollars, which is the Company’s functional currency and the functional currency of the majority of the Group. The Company is of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and in accordance with that Class Order, all ﬁnancial information presented in Australian dollars has been rounded to the nearest thousand unless otherwise stated. (d) Use of Estimates and Judgements The preparation of ﬁnancial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Judgements made by management in the application of Australian Accounting Standards that have a signiﬁcant effect on the ﬁnancial report and estimates with a signiﬁcant risk of material adjustment in the next year are discussed in note 5. 3. (a) SIGNIFICANT ACCOUNTING POLICIES New Accounting Standards and Interpretations The accounting policies adopted are consistent with those of the previous ﬁnancial year except as follows: The Group has adopted the following relevant new and amended Australian Accounting Standards and AASB Interpretations as of 1 July 2009. (cid:115)(cid:0) (cid:33)(cid:33)(cid:51)(cid:34) (cid:18)(cid:16)(cid:16)(cid:25)(cid:13)(cid:18) (cid:33)(cid:77)(cid:69)(cid:78)(cid:68)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83) (cid:84)(cid:79) (cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65)(cid:78) (cid:33)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:73)(cid:78)(cid:71) Standards – Improving disclosures about ﬁnancial instruments (IFRS 7) (cid:115)(cid:0) (cid:33)(cid:33)(cid:51)(cid:34) (cid:24) (cid:47)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71) (cid:51)(cid:69)(cid:71)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83) (cid:8)(cid:41)(cid:38)(cid:50)(cid:51) (cid:24)(cid:9) (cid:115)(cid:0) (cid:33)(cid:33)(cid:51)(cid:34) (cid:19) (cid:34)(cid:85)(cid:83)(cid:73)(cid:78)(cid:69)(cid:83)(cid:83) (cid:35)(cid:79)(cid:77)(cid:66)(cid:73)(cid:78)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83) (cid:8)(cid:82)(cid:69)(cid:86)(cid:73)(cid:83)(cid:69)(cid:68) (cid:18)(cid:16)(cid:16)(cid:24)(cid:9) (cid:8)(cid:41)(cid:38)(cid:50)(cid:51) (cid:19)(cid:9) (cid:115)(cid:0) (cid:33)(cid:33)(cid:51)(cid:34) (cid:17)(cid:16)(cid:17) (cid:48)(cid:82)(cid:69)(cid:83)(cid:69)(cid:78)(cid:84)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:38)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76) (cid:51)(cid:84)(cid:65)(cid:84)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83) (cid:8)(cid:82)(cid:69)(cid:86)(cid:73)(cid:83)(cid:69)(cid:68) 2007) (IAS 1 (revised)) 26 Annual Report 2010 Orbital (a) New Accounting Standards and Interpretations (continued) AASB 114. AASB 8 disclosures are shown in note 6, including the related revised comparative information. (cid:115)(cid:0) (cid:33)(cid:33)(cid:51)(cid:34) (cid:17)(cid:18)(cid:19) (cid:34)(cid:79)(cid:82)(cid:82)(cid:79)(cid:87)(cid:73)(cid:78)(cid:71) (cid:35)(cid:79)(cid:83)(cid:84)(cid:83) (cid:8)(cid:82)(cid:69)(cid:86)(cid:73)(cid:83)(cid:69)(cid:68) (cid:18)(cid:16)(cid:16)(cid:23)(cid:9) (cid:8)(cid:41)(cid:33)(cid:51) (cid:18)(cid:19) (revised)) (cid:115)(cid:0) (cid:33)(cid:33)(cid:51)(cid:34) (cid:18)(cid:16)(cid:16)(cid:24)(cid:13)(cid:17) (cid:33)(cid:77)(cid:69)(cid:78)(cid:68)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83) (cid:84)(cid:79) (cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65)(cid:78) (cid:33)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:73)(cid:78)(cid:71) Standard [AASB 2] – Share-based Payment: Vesting Conditions and Cancellations (IFRS 2 (revised)) (cid:115)(cid:0) (cid:33)(cid:33)(cid:51)(cid:34) (cid:18)(cid:16)(cid:16)(cid:24)(cid:13)(cid:21) (cid:33)(cid:77)(cid:69)(cid:78)(cid:68)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83) (cid:84)(cid:79) (cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65)(cid:78) (cid:33)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:73)(cid:78)(cid:71) Standards arising from the Annual Improvements Project (IAS Improvements Project) (cid:115)(cid:0) (cid:33)(cid:33)(cid:51)(cid:34)(cid:18)(cid:16)(cid:16)(cid:24)(cid:13)(cid:22)(cid:38)(cid:85)(cid:82)(cid:84)(cid:72)(cid:69)(cid:82)(cid:33)(cid:77)(cid:69)(cid:78)(cid:68)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:84)(cid:79)(cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65)(cid:78)(cid:33)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:73)(cid:78)(cid:71) Standards arising from the Annual Improvements Project [AASB 1 & AASB 5] (IAS Improvements Project) (cid:115)(cid:0) (cid:33)(cid:33)(cid:51)(cid:34) (cid:18)(cid:16)(cid:16)(cid:24)(cid:13)(cid:23) (cid:33)(cid:77)(cid:69)(cid:78)(cid:68)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83) (cid:84)(cid:79) (cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65)(cid:78) (cid:33)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:73)(cid:78)(cid:71) Standards - Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate (IAS 27 (Revised)) (cid:115)(cid:0) (cid:33)(cid:33)(cid:51)(cid:34) (cid:17)(cid:18)(cid:23) (cid:35)(cid:79)(cid:78)(cid:83)(cid:79)(cid:76)(cid:73)(cid:68)(cid:65)(cid:84)(cid:69)(cid:68) (cid:65)(cid:78)(cid:68) (cid:51)(cid:69)(cid:80)(cid:65)(cid:82)(cid:65)(cid:84)(cid:69) (cid:38)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76) Statements (revised 2008) (IAS 27 (revised)) (cid:115)(cid:0) (cid:33)(cid:33)(cid:51)(cid:34) (cid:18)(cid:16)(cid:16)(cid:25)(cid:13)(cid:20) (cid:33)(cid:77)(cid:69)(cid:78)(cid:68)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83) (cid:84)(cid:79) (cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65)(cid:78) (cid:33)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:73)(cid:78)(cid:71) Standards arising from the Annual Improvements Project (IAS Improvements Project) (cid:115)(cid:0) (cid:33)(cid:33)(cid:51)(cid:34) (cid:18)(cid:16)(cid:16)(cid:25)(cid:13)(cid:22) (cid:33)(cid:77)(cid:69)(cid:78)(cid:68)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83) (cid:84)(cid:79) (cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65)(cid:78) (cid:33)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:73)(cid:78)(cid:71) Standards (IAS Improvements Project) AASB 101 Presentation of Financial Statements (IAS 1 (revised)) The revised Standard separates owner and non-owner changes in equity. The statement of changes in equity includes only details of transactions with owners, with non-owner changes in equity presented in a reconciliation of each component of equity and included in the new statement of comprehensive income. The statement of comprehensive income presents all items of recognised income and expense, either in one single statement, or in two linked statements. The Group has elected to present two statements. AASB 123 Borrowing Costs (IAS 23(Revised)) The revised AASB 123 requires capitalisation of borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset. The Group's previous policy was to expense borrowing costs as they were incurred. In accordance with the transitional provisions of the amended AASB 123, the Group has adopted the Standard on a prospective basis. Therefore, borrowing costs are capitalised on qualifying assets with a commencement date on or after 1 July 2009. The Group did not capitalise any borrowing costs in the current year. These Standards and Interpretations are applicable to 30 June 2010 year ends. AASB 3 Business Combinations (IFRS 3) (revised 2008) When the adoption of the Standard or Interpretation is deemed to have an impact on the ﬁnancial statements of the Group, its impact is described below: AASB 2009-2 Amendments to Australian Accounting Improving disclosures about ﬁnancial Standards – instruments (IFRS 7) The amended Standard requires additional disclosures about fair value measurement and liquidity risk. Fair value measurements related to all ﬁnancial instruments recognised and measured at fair value are to be disclosed by source of inputs using a three level fair value hierarchy, by class. In addition, a reconciliation between the beginning and ending balance for level 3 fair value measurements is now required, as well as signiﬁcant transfers between levels in the fair value hierarchy. The amendments also clarify the requirements for liquidity risk disclosures with respect to derivative transactions and assets used for liquidity management. The fair value measurement disclosures are presented in note 4. The liquidity risk disclosures are not signiﬁcantly impacted by the amendments and are presented in note 4. AASB 127 Consolidated and Separate Financial Statements (revised) (IFRS 27) The revised standard requires the effects of all transactions with non-controlling interests to be recorded in equity if there is no change in control and these transactions will no longer result in goodwill or gains and losses. This is different to the Group’s previous accounting policy where transactions with minority interests were treated as transactions with parties external to the group. AASB 8 Operating Segments (IFRS 8) AASB 8 replaced AASB 114 Segment Reporting upon its effective date. The Group concluded that the operating segments determined in accordance with AASB 8 are the same as the business segments previously identiﬁed under The revised standard introduces signiﬁcant changes in the accounting for business combinations occurring after 1 July 2009. Changes affect the valuation of non-controlling interests (previously “minority interests”), the accounting for transaction costs, the initial recognition and subsequent measurement of contingent consideration and business combinations achieved in stages. These changes will impact the amount of goodwill recognised, the reported results in the period when an acquisition occurs and future reported results. AASB 2008-7 Amendments to Australian Accounting Standards - Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate The amendments delete the reference to the “cost method” making the distinction between pre and post acquisition proﬁts no longer relevant. All dividends received are now recognised in proﬁt or loss rather than having to be split between a reduction in the investment and proﬁt and loss. However the receipt of such dividends requires an entity to consider whether there is an indicator of impairment of the investment in that subsidiary. The amendments further clarify cases or reorganisations where a new parent is inserted above an existing parent of the group. It states that the cost of the subsidiary is the previous carrying amount of its share of equity items in the subsidiary rather than its fair value. The adoption of these amendments did not have any impact on the ﬁnancial position or the performance of the Group. Annual Improvements Project The adoption of the following amendments resulted in changes to accounting policies but did not have any impact on the ﬁnancial position or performance of the Group. (cid:115)(cid:0) (cid:33)(cid:33)(cid:51)(cid:34) (cid:17)(cid:18)(cid:16) (cid:33)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:73)(cid:78)(cid:71) (cid:70)(cid:79)(cid:82) (cid:39)(cid:79)(cid:86)(cid:69)(cid:82)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84) (cid:39)(cid:82)(cid:65)(cid:78)(cid:84)(cid:83) (cid:65)(cid:78)(cid:68) Disclosures of Government Assistance: loans granted with no or low interest will not be exempt from the requirement to impute interest. Interest is to be imputed on loans Orbital 2010 Annual Report 27 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2010 (a) New Accounting Standards and Interpretations (continued) granted with below-market interest rates. This amendment did not impact the Group as interest was already being imputed on interest-free loans. (cid:115)(cid:0) (cid:33)(cid:33)(cid:51)(cid:34) (cid:17)(cid:18)(cid:19) (cid:34)(cid:79)(cid:82)(cid:82)(cid:79)(cid:87)(cid:73)(cid:78)(cid:71) (cid:35)(cid:79)(cid:83)(cid:84)(cid:83)(cid:26) (cid:84)(cid:72)(cid:69) (cid:68)(cid:69)(cid:108)(cid:78)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:66)(cid:79)(cid:82)(cid:82)(cid:79)(cid:87)(cid:73)(cid:78)(cid:71) costs is revised to consolidate the two types of items that are considered components of “borrowing costs” into one - the interest expense calculated using the effective interest rate method calculated in accordance with AASB 139. The Group has amended its accounting policy accordingly which did not result in any change in its statement of ﬁnancial position. (cid:115)(cid:0) (cid:33)(cid:33)(cid:51)(cid:34) (cid:17)(cid:18)(cid:24) (cid:41)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84) (cid:73)(cid:78) (cid:33)(cid:83)(cid:83)(cid:79)(cid:67)(cid:73)(cid:65)(cid:84)(cid:69)(cid:83)(cid:26) (cid:65)(cid:78) (cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84) (cid:73)(cid:78) (cid:65)(cid:78) associate is a single asset for the purpose of conducting the impairment test, including any reversal of impairment. Any impairment is not separately allocated to the goodwill included in the investment balance. Any impairment is reversed if the recoverable amount of the associate increases. The Group has amended its impairment accounting policy accordingly. The amendment had no impact on the Group’s ﬁnancial position or performance. (cid:115)(cid:0) (cid:33)(cid:33)(cid:51)(cid:34) (cid:17)(cid:19)(cid:22) (cid:41)(cid:77)(cid:80)(cid:65)(cid:73)(cid:82)(cid:77)(cid:69)(cid:78)(cid:84) (cid:79)(cid:70) (cid:33)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83)(cid:26) (cid:87)(cid:72)(cid:69)(cid:78) (cid:68)(cid:73)(cid:83)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:69)(cid:68) (cid:67)(cid:65)(cid:83)(cid:72) ﬂows are used to estimate “fair value less cost to sell” additional disclosure is required about the discount rate, consistent with disclosures required when the discounted cash ﬂows are used to estimate “value in use”. The Group has amended its disclosures accordingly in note 19. The amendment also clariﬁed that the largest unit permitted for allocating goodwill, acquired in a business combination, is the operating segment as deﬁned in AASB 8 before aggregation for reporting purposes. The amendment has no impact on the Group as the annual impairment test is performed before aggregation. The accounting policies set out below have been applied consistently to all periods presented in these consolidated ﬁnancial statements, and have been applied consistently by Group entities. (b) (i) Basis of Consolidation Subsidiaries Subsidiaries are all those entities over which the Group has the power to govern the ﬁnancial and operating policies so as to obtain beneﬁts from their activities. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether a group controls another entity. The ﬁnancial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. In preparing the consolidated ﬁnancial statements, all intercompany balances and transactions, income and expenses and proﬁt and losses resulting from intragroup transactions have been eliminated in full. Subsidiaries are fully consolidated from the date on which control is obtained by the Group and cease to be consolidated from the date on which control is transferred out of the Group. The acquisition of subsidiaries is accounted for using the acquisition method of accounting. The acquisition method of accounting involves recognising at acquisition date, separately from goodwill, the identiﬁable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree. The identiﬁable assets acquired and the liabilities assumed are measured at their acquisition date fair values. The difference between the above items and the fair value of the consideration (including the fair value of any pre-existing investment in the acquiree) is goodwill or a discount on acquisition. A change in the ownership interest of a subsidiary that does not result in a loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it (cid:115)(cid:0) (cid:36)(cid:69)(cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:83) (cid:84)(cid:72)(cid:69) (cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83) (cid:8)(cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:73)(cid:78)(cid:71) (cid:71)(cid:79)(cid:79)(cid:68)(cid:87)(cid:73)(cid:76)(cid:76)(cid:9) (cid:65)(cid:78)(cid:68) (cid:76)(cid:73)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83) of the subsidiary. (cid:115)(cid:0) (cid:36)(cid:69)(cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:83) (cid:84)(cid:72)(cid:69) (cid:67)(cid:65)(cid:82)(cid:82)(cid:89)(cid:73)(cid:78)(cid:71) (cid:65)(cid:77)(cid:79)(cid:85)(cid:78)(cid:84) (cid:79)(cid:70) (cid:65)(cid:78)(cid:89) (cid:78)(cid:79)(cid:78)(cid:13)(cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:79)(cid:76)(cid:76)(cid:73)(cid:78)(cid:71) interest. (cid:115)(cid:0) (cid:36)(cid:69)(cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:83) (cid:84)(cid:72)(cid:69) (cid:67)(cid:85)(cid:77)(cid:85)(cid:76)(cid:65)(cid:84)(cid:73)(cid:86)(cid:69) (cid:84)(cid:82)(cid:65)(cid:78)(cid:83)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:68)(cid:73)(cid:70)(cid:70)(cid:69)(cid:82)(cid:69)(cid:78)(cid:67)(cid:69)(cid:83)(cid:12) recorded in equity. (cid:115)(cid:0) (cid:50)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:83) (cid:84)(cid:72)(cid:69) (cid:70)(cid:65)(cid:73)(cid:82) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:67)(cid:79)(cid:78)(cid:83)(cid:73)(cid:68)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:69)(cid:68)(cid:14) (cid:115)(cid:0) (cid:50)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:83) (cid:84)(cid:72)(cid:69) (cid:70)(cid:65)(cid:73)(cid:82) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69) (cid:79)(cid:70) (cid:65)(cid:78)(cid:89) (cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84) (cid:82)(cid:69)(cid:84)(cid:65)(cid:73)(cid:78)(cid:69)(cid:68)(cid:14) (cid:115)(cid:0) (cid:50)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:83) (cid:65)(cid:78)(cid:89) (cid:83)(cid:85)(cid:82)(cid:80)(cid:76)(cid:85)(cid:83) (cid:79)(cid:82) (cid:68)(cid:69)(cid:108)(cid:67)(cid:73)(cid:84) (cid:73)(cid:78) (cid:80)(cid:82)(cid:79)(cid:108)(cid:84) (cid:79)(cid:82) (cid:76)(cid:79)(cid:83)(cid:83)(cid:14) (cid:115)(cid:0) (cid:50)(cid:69)(cid:67)(cid:76)(cid:65)(cid:83)(cid:83)(cid:73)(cid:108)(cid:69)(cid:83) (cid:84)(cid:72)(cid:69) (cid:80)(cid:65)(cid:82)(cid:69)(cid:78)(cid:84)(cid:103)(cid:83) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:79)(cid:70) (cid:67)(cid:79)(cid:77)(cid:80)(cid:79)(cid:78)(cid:69)(cid:78)(cid:84)(cid:83) (cid:80)(cid:82)(cid:69)(cid:86)(cid:73)(cid:79)(cid:85)(cid:83)(cid:76)(cid:89) recognised in other comprehensive income to proﬁt or loss. (ii) Associate The Group’s investment in its associate is accounted for using the equity method of accounting in the consolidated ﬁnancial statements. The associate is an entity over which the Group has signiﬁcant inﬂuence and that is neither a subsidiary nor a joint venture. The Group generally deems they have signiﬁcant inﬂuence if they have over 20% of the voting rights. Under the equity method, investments in associates are 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 application of the equity method, the Group determines whether it is necessary to recognise any impairment loss with respect to the Group’s net investment in associates. The Group’s share of its associates’ post-acquisition proﬁt or losses is recognised in the income statement, and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. Dividends received from the associate reduce the carrying amount of the investment. When the Group’s share of losses in the associate equals or exceeds its interest in the associate, including any unsecured long-term receivables or loans, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate. The associate’s accounting policies conform to those used by the Group for like transactions and events in similar circumstances. (iii) Transactions Eliminated on Consolidation Intra-group balances, and any unrealised gains and losses or income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated ﬁnancial statements. Unrealised gains arising from transactions with associates are eliminated to the extent of the Group’s interest in the entity with adjustments made to the investment in the associate. Unrealised losses are eliminated in the same way 28 Annual Report 2010 Orbital Basis of Consolidation (continued) (b) as unrealised gains, but only to the extent that there is no evidence of impairment. Gains and losses are recognised as the contributed assets are consumed or sold or, if not consumed or sold, when the Group’s interest in such entities is disposed of. (c) (i) Foreign Currency Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date (except those representing the Group’s net investment in subsidiaries and its associate – see below) are retranslated to the functional currency at the exchange rate at that date. Foreign exchange differences arising on translation are recognised in the income statement. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. (ii) Financial statements of foreign operations The assets and liabilities of foreign operations are translated to Australian dollars at exchange rates ruling at the reporting date. The revenues and expenses of foreign operations are translated to Australian dollars at rates approximating the exchange rates ruling at the dates of the transactions. Foreign exchange differences arising on retranslation are recognised directly in a separate component of equity described as ‘foreign currency translation reserve’. (iii) Net investment in foreign operations Exchange differences arising from the translation of balances representing the net investment in foreign operations are taken to the foreign currency translation reserve. They are released into the income statement upon disposal. (d) (i) Financial Instruments Non-derivative ﬁnancial instruments Non-derivative ﬁnancial instruments comprise trade and other receivables, cash and cash equivalents, loans and borrowings, and trade and other payables. Non-derivative ﬁnancial instruments are recognised initially at fair value plus, for instruments not at fair value through proﬁt or loss, any directly attributable transaction costs. Subsequent to initial recognition non-derivative ﬁnancial instruments are measured as described below. A ﬁnancial instrument is recognised if the Group becomes party to the contractual provisions of the instrument. Financial assets are derecognised if the Group’s contractual rights to the cash ﬂows from the ﬁnancial asset expire or if the Group transfers the ﬁnancial asset to another party without retaining control or substantially all risks and rewards of the asset. Regular way purchases and sales of ﬁnancial assets are accounted for at trade date, i.e., the date that the Group commits itself to purchase or sell the asset. Financial liabilities are derecognised if the Group’s obligations speciﬁed in the contract expire or are discharged or cancelled. Trade receivables Subsequent to initial recognition, trade receivables are stated at their amortised cost, less impairment losses. Normal settlement terms are 30 to 60 days. The collectability of debts is assessed at balance date and speciﬁc allowance is made for any doubtful accounts. Individual debts that are known to be uncollectible are written off when identiﬁed. An impairment provision is recognised when there is objective evidence that the Group will not be able to collect the receivable. Financial difﬁculties of the debtor, default payments or debts more than 60 days overdue are considered objective evidence of impairment. The amount of the impairment loss is the receivable carrying amount compared to the present value of estimated future cash ﬂows, discounted at the original effective interest rate. Cash Cash and cash equivalents comprise cash balances, at call deposits and bank-endorsed bills of exchange at discounted value. Other ﬁnancial assets Other ﬁnancial assets comprise term deposits with ﬁnancial institutions with maturities between 90 days and 365 days. Subsequent to initial recognition other ﬁnancial assets are stated at amortised cost. Trade payables Liabilities are recognised for amounts due to be paid in the future for goods or services received. Subsequent to initial recognition, trade and other payables are stated at their amortised cost. Trade payables are non-interest bearing and are normally settled on 30-day terms. Interest bearing borrowings Included in current liabilities is an amount owing under a trade ﬁnance facility utilised for the import of inventory. The trade ﬁnance facility provides loans of up to 180 days with interest payable at maturity. The loans are initially recognised at the fair value of consideration received plus transaction costs and subsequently stated at amortised cost with any difference between cost and repayment value being recognised in the income statement over the period of the borrowings on an effective interest basis. Long term borrowings Included in non-current liabilities is an amount owing to the Government of Western Australia resulting from a loan of $14,346,164 restructured in January 2010. The loan is interest-free with annual repayments commencing in May 2010 and concluding in May 2025 The non-interest bearing loan from the Government of Western Australia was recognised initially at fair value and subsequently stated at amortised cost using the effective interest method. The difference between the fair value and face value of the loan is accounted for as a government grant as disclosed in note 26. (ii) Derivative ﬁnancial instruments The Group may use derivative ﬁnancial instruments to hedge its exposure to foreign exchange ﬂuctuations and interest rate movements. In accordance with its treasury policy, the Group entity does not hold the derivative ﬁnancial instruments for trading purposes. However, derivatives that do not qualify for hedge accounting are accounted for as trading instruments. Derivative ﬁnancial instruments are recognised initially at fair value. Subsequent to initial recognition, derivative ﬁnancial instruments are stated at fair value. Changes in the fair value of the derivative ﬁnancial instrument that are not designated as cash ﬂow hedging instruments are recognised in proﬁt or loss. Orbital 2010 Annual Report 29 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2010 (d) Financial Instruments (continued) Cash ﬂow hedges Changes in the fair value of the derivative hedging instrument designated as a cash ﬂow hedge are recognised directly in equity to the extent that the hedge is effective. To the extent that the hedge is ineffective, changes in fair value are recognised in proﬁt or loss. If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated or exercised, then hedge accounting is discontinued prospectively. The cumulative gain or loss previously recognised in equity remains there until the forecast transaction occurs. When the hedged item is a non- ﬁnancial asset, the amount recognised in equity is transferred to the carrying amount of the asset when it is recognised. In other cases the amount recognised in equity is transferred to proﬁt or loss in the same period that the hedged item affects proﬁt or loss. (e) (i) Property, Plant and Equipment Recognition and measurement Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. (ii) Subsequent costs The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic beneﬁts embodied within the part will ﬂow to the Group and its cost can be measured reliably. The costs of day-to-day servicing of property, plant and equipment are recognised in proﬁt or loss as incurred. (iii) Depreciation and Amortisation Items of property, plant and equipment, including buildings but excluding freehold land, are depreciated/amortised on a straight line basis over their estimated useful lives. The depreciation rates used in the current and comparative period for each class of asset are as follows: Buildings 2.5%; Plant and Equipment 6.67% to 33.3%. Assets are depreciated or amortised from the date of acquisition. The residual value, the useful life and the depreciation method applied to an asset are reassessed at least annually. (iv) Valuation Land and buildings are independently valued every three years on a market value basis of valuation. The Directors then use these valuations to assess the recoverable amount of land and buildings. (v) Asset Sales The net proﬁt or loss from asset sales are included as other income or expenses of the Group. The proﬁt or loss on disposal of assets is brought to account at the date that an unconditional contract of sale is signed. The proﬁt or loss on disposal is calculated as the difference between the carrying amount of the asset at the time of disposal and the net proceeds on disposal. (f) (i) Intangibles Research and Development Expenditure on research activities, undertaken with the prospect of gaining new scientiﬁc or technical knowledge and understanding, is recognised in the income statement as an expense as incurred. Expenditure on development activities, whereby research ﬁndings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalised if the product or process is technically and commercially feasible and the Group has sufﬁcient resources to complete development. Expenditure on intangibles which may be capitalised includes the cost of materials and direct labour. Other development expenditure is recognised in the income statement as an expense as incurred. Capitalised expenditure is stated at cost less accumulated amortisation and impairment losses. Amortisation is charged to the income statement on a straight- line basis over the estimated useful lives of intangible assets unless such lives are indeﬁnite. (ii) Patents, Licences and Technologies licences and technology development and Patents, maintenance costs, not qualifying for capitalisation, are expensed as incurred. (iii) Goodwill Goodwill acquired in a business combination is initially measured at cost being the excess of the cost of the business combination over the Group's interest in the net fair value of the acquiree's identiﬁable assets, liabilities and contingent liabilities. Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group's cash-generating units, or groups of cash-generating units, that are expected to beneﬁt from the synergies of the combination, irrespective of whether other assets or liabilities of the Group are assigned to those units or groups of units. Impairment is determined by assessing the recoverable amount of the cash-generating unit (group of cash-generating units), to which the goodwill relates. When the recoverable amount of the cash-generating unit (group of cash-generating units) is less than the carrying amount, an impairment loss is recognised. When goodwill forms part of a cash-generating unit (group of cash-generating units) and an operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this manner is measured based on the relative values of the operation disposed of and the portion of the cash- generating unit retained. Impairment losses recognised for goodwill are not subsequently reversed. (g) Inventories Inventories are carried at the lower of cost and net realisable value. Cost is based on the ﬁrst-in ﬁrst-out principle and includes expenditure incurred in acquiring the inventories and bringing them to their present location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. 30 Annual Report 2010 Orbital (h) (i) Impairment Financial assets A ﬁnancial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash ﬂows of that asset. An impairment loss in respect of a ﬁnancial asset measured at amortised cost is calculated as the difference between its carrying amount, and the present value of the estimated future cash ﬂows discounted at the original effective interest rate. An impairment loss in respect of an available-for-sale ﬁnancial asset is calculated by reference to its current fair value. Individually signiﬁcant ﬁnancial assets are tested for impairment on an individual basis. The remaining ﬁnancial assets are assessed collectively in groups that share similar credit risk characteristics. All impairment losses are recognised in proﬁt or loss. Any cumulative loss in respect of an available-for-sale ﬁnancial asset recognised previously in equity is transferred to proﬁt or loss. An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised. For ﬁnancial assets measured at amortised cost and available-for-sale ﬁnancial assets that are debt securities, the reversal is recognised in proﬁt or loss. For available-for-sale ﬁnancial assets that are equity securities, the reversal is recognised directly in equity. (ii) Non-ﬁnancial assets The carrying amounts of the Group’s non-ﬁnancial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists then the asset’s recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. A cash-generating unit is the smallest identiﬁable asset group that generates cash ﬂows that largely are independent from other assets and groups. Impairment losses are recognised in proﬁt or loss. Impairment losses recognised in respect of cash-generating units are allocated ﬁrst to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit (group of units) on a pro rata basis. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. 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. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. (ii) Goodwill Impairment is determined by assessing the recoverable amount of the cash-generating unit (group of cash-generating units), to which the goodwill relates. (i) (i) Share capital Issued Capital Share capital is recognised at the fair value of the consideration received. (ii) Dividends Dividends are recognised as a liability in the period in which they are declared. (iii) Transaction Costs Transaction costs of an equity transaction are accounted for as a deduction from equity, net of any related income tax beneﬁt. (j) (i) Employee Beneﬁts Short-term beneﬁts The provisions for employee entitlements to wages, salaries and annual leave, to be settled within 12 months of year end represent present obligations resulting from employees’ services provided up to the balance date, calculated at undiscounted amounts based on wage and salary rates that the Group expects to pay as at the reporting date including related on-costs, such as workers’ compensation and payroll tax. Expenses for non-accumulating sick leave are recognised when the leave is taken and are measured at the rates paid or payable. (ii) Long Service Leave The provision for employee entitlements to long service leave represents the present value of the estimated future cash outﬂows to be made resulting from employees’ services provided up to balance sheet date. The provision is calculated using estimated future increases in wage and salary rates including related on-costs and expected settlement dates based on the Group’s experience with staff departures and is discounted using the rates attached to national government securities at balance sheet date, which most closely match the terms of maturity of the related liabilities. (iii) Deﬁned Contribution Superannuation Fund Obligations for contributions to the deﬁned contribution superannuation fund are recognised as an expense in the income statement as incurred. (iv) Share-based payment transactions Employees have been offered the right to take up shares in the Company under three plans (i) the Employee Share Plan No.1 provides $1,000 of shares per annum and is subject to qualiﬁcation by length of service, (ii) the Executive Long Term Share Plan (“ELTSP”) is subject to qualiﬁcation by length of service and achievement of corporate performance targets related to returns to shareholders, and (iii) the Performance Rights Plan is subject to qualiﬁcation by length of service and achievement of share price targets. The fair value of rights granted to employees is recognised as an employee beneﬁt expense with a corresponding increase in equity. The fair value of the shares granted under the Employee Share Plan No.1 is based on the market price of the shares on the date of issue. The fair value of the ELTSP is measured at grant date taking into account market Orbital 2010 Annual Report 31 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2010 Employee Beneﬁts (continued) (j) performance conditions only, and spread over the vesting period during which the employees become unconditionally entitled to the performance–based shares. The fair value of the shares granted is measured using a Monte-Carlo simulation model. The amount recognised as an expense is adjusted to reﬂect the actual number of shares that vest except where forfeiture is only due to market conditions that are not met. The fair value of the Performance Rights is measured at grant date taking into account the share price targets and spread over the expected life of the rights. (k) Provisions - Warranties A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outﬂow of economic beneﬁts will be required to settle the obligation. Provisions are determined by discounting the expected future cash ﬂows at a pre-tax rate that reﬂects current market assessments of the time value of money and the risks speciﬁc to the liability. Provision for warranty is recognised when the underlying products are sold. The provision is based on historical claim data. (l) Revenue Recognition Revenues are recognised and measured at the fair value of the consideration received net of the amount of goods and services tax (GST). Exchanges of goods or services of the same nature and value without any cash consideration are not recognised as revenues. (i) Revenue from Rendering of Services Revenue from services rendered is recognised in the income statement in proportion to the stage of completion of the transaction at the reporting date. The stage of completion is assessed by reference to the extent of work performed. No revenue is recognised if there are signiﬁcant uncertainties regarding recovery of the consideration due, or the costs incurred or to be incurred cannot be measured reliably. Revenue received in advance represents cash payments received from customers in accordance with contractual commitments prior to the performance of the service. (ii) Sale of goods Revenue from the sale of goods is recognised when there is persuasive evidence, usually in the form of an executed sales agreement at the time of delivery of the goods to customer, indicating that there has been a transfer of risks and rewards to the customer, no further work or processing is required, the quantity and quality of the goods has been determined, the price is ﬁxed and generally title has passed. (iii) Licence and royalties Revenue earned under various licence, royalty and other agreements is recognised on an accrual basis upon the satisfactory completion of contracted technical speciﬁcations. Additional revenue may be earned after a ﬁxed time interval or after delivery of a prototype engine and/or hardware meeting speciﬁed performance targets, provided the licence agreements are not terminated. Under the terms of the licence agreements, licensees are not speciﬁcally obliged to commence production and sale of engines using OCP Technology and may terminate the agreements upon notice to Orbital. If a licensee were to terminate its licence agreement with Orbital, the licensee would forfeit the licence and any technical disclosure fees paid through to the date of termination. Revenue under royalty agreements is recognised when such amounts become due and payable. (iv) Interest Revenue Revenue is recognised as interest accrues using the effective interest method. (v) Dividends Revenue is recognised when the Group’s right to receive the payment is established. (m) Operating leases (i) Operating lease payments Payments made under operating leases are recognised in the income statement on a straight-line basis over the term of the lease. (n) Finance expense Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset (i.e. an asset that necessarily takes a substantial period of time to get ready for its intended use or sale) are capitalised as part of the cost of that asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds (o) (i) Income Tax Current income tax expense and liability Income tax on the proﬁt or loss for the year presented comprises current and deferred tax. Income tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years. (ii) Deferred income tax expense and liability Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for ﬁnancial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date. A deferred tax asset is recognised only to the extent that it is probable that future taxable proﬁts will be available against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax beneﬁt will be realised. (iii) Tax Consolidation The Company and its wholly-owned Australian resident entities have formed a tax-consolidated group with effect from 1 July 2002 and are therefore taxed as a single entity from that date. The head entity within the tax-consolidated group is Orbital Corporation Limited. (p) Operating segments - refer note 6 An operating segment is a component of an entity that engages in business activities from which it may earn revenues and 32 Annual Report 2010 Orbital incur expenses (including revenues and expenses relating to transactions with other components of the same entity), whose operating results are regularly reviewed by the entity's executive management team (the 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. Management will also consider other factors in determining operating segments such as the existence of a line manager and the level of segment information presented to the executive management team. 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: (cid:115)(cid:0) (cid:46)(cid:65)(cid:84)(cid:85)(cid:82)(cid:69) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:83) (cid:65)(cid:78)(cid:68) (cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:69)(cid:83)(cid:12) (cid:115)(cid:0) (cid:46)(cid:65)(cid:84)(cid:85)(cid:82)(cid:69) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78) (cid:80)(cid:82)(cid:79)(cid:67)(cid:69)(cid:83)(cid:83)(cid:69)(cid:83)(cid:12) (cid:115)(cid:0) (cid:52)(cid:89)(cid:80)(cid:69) (cid:79)(cid:82) (cid:67)(cid:76)(cid:65)(cid:83)(cid:83) (cid:79)(cid:70) (cid:67)(cid:85)(cid:83)(cid:84)(cid:79)(cid:77)(cid:69)(cid:82) (cid:70)(cid:79)(cid:82) (cid:84)(cid:72)(cid:69) (cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:83) (cid:65)(cid:78)(cid:68) (cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:69)(cid:83)(cid:12) payable to, the Australian Taxation Ofﬁce is included as a current asset or liability in the balance sheet. Cash ﬂows are included in the statement of cash ﬂows on a gross basis. The GST components of cash ﬂows arising from investing and ﬁnancing activities which are recoverable from, or payable to, the ATO are classiﬁed as operating cash ﬂows. (r) Earnings per share The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the proﬁt or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the proﬁt or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares. (cid:115)(cid:0) (cid:45)(cid:69)(cid:84)(cid:72)(cid:79)(cid:68)(cid:83) (cid:85)(cid:83)(cid:69)(cid:68) (cid:84)(cid:79) (cid:68)(cid:73)(cid:83)(cid:84)(cid:82)(cid:73)(cid:66)(cid:85)(cid:84)(cid:69) (cid:84)(cid:72)(cid:69) (cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:83) (cid:79)(cid:82) (cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:69) (cid:84)(cid:72)(cid:69) (s) Government grants services, and if applicable (cid:115)(cid:0) (cid:46)(cid:65)(cid:84)(cid:85)(cid:82)(cid:69) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:82)(cid:69)(cid:71)(cid:85)(cid:76)(cid:65)(cid:84)(cid:79)(cid:82)(cid:89) (cid:69)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:14) Operating segments that meet the quantitative criteria as prescribed by AASB 8 are reported separately. However, an operating segment that does not meet the quantitative criteria is still reported separately where information about the segment would be useful to users of the ﬁnancial statements. Information about other business activities and operating segments that are below the quantitative criteria are combined and disclosed in a separate category for “all other segments”. (q) Goods and services tax Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated with the amounts of GST included. The net amount of GST recoverable from, or Government grants are recognised in the Statement of Financial Position as a liability when the grant is received. Government grants are recognised as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis. Government grants received on compensation for expenses and losses already incurred or for the purpose of giving immediate ﬁnancial support are recognised immediately in proﬁt and loss for the period. When the grant relates to a discount on services to be rendered in the future, the fair value is credited to deferred revenue and is released to the income statement over the periods that the discounted services are rendered. When the grant relates to an asset (investment grants relating to the construction of a heavy duty engine test facility), the fair value is credited to deferred income and is released to the income statement over the expected useful life of the relevant asset by equal annual instalments. Orbital 2010 Annual Report 33 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2010 (t) New standards and interpretations not yet effective The following standards, amendments to standards and interpretations have been identiﬁed as those which may impact the entity in the period of initial application. They are available for early adoption at 30 June 2010, but have not been applied in preparing this ﬁnancial report: Application date of standard Application date for Group 1 January 2010 1 July 2010 Reference Title Summary AASB 2009-5 (IAS annual improvement project) Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 5, 8, 101, 107, 117, 118, 136 & 139] [IFRS 5, 8, IAS 1, 7, 17, 18, 36, 39] The amendments to some Standards result in accounting changes for presentation, recognition or measurement purposes, while some amendments that relate to terminology and editorial changes are expected to have no or minimal effect on accounting except for the following: The amendment to AASB 117 (IAS 17)removes the speciﬁc guidance on classifying land as a lease so that only the general guidance remains. Assessing land leases based on the general criteria may result in more land leases being classiﬁed as ﬁnance leases and if so, the type of asset which is to be recorded (intangible vs. property, plant and equipment) needs to be determined. The amendment to AASB 101 (IAS 1) stipulates that the terms of a liability that could result, at anytime, in its settlement by the issuance of equity instruments at the option of the counterparty do not affect its classiﬁcation. The amendment to AASB 107 (IAS 7)explicitly states that only expenditure that results in a recognised asset can be classiﬁed as a cash ﬂow from investing activities. The amendment to AASB 118 (IAS 18) provides additional guidance to determine whether an entity is acting as a principal or as an agent. The features indicating an entity is acting as a principal are whether the entity: has primary responsibility for providing the goods or service; has inventory risk; has discretion in establishing prices; bears the credit risk. The amendment to AASB 136 (IAS 36) clariﬁes that the largest unit permitted for allocating goodwill acquired in a business combination is the operating segment, as deﬁned in IFRS 8 before aggregation for reporting purposes. The main change to AASB 139 (IAS 39) clariﬁes that a prepayment option is considered closely related to the host contract when the exercise price of a prepayment option reimburses the lender up to the approximate present value of lost interest for the remaining term of the host contract. The other changes clarify the scope exemption for business combination contracts and provide clariﬁcation in relation to accounting for cash ﬂow hedges. 34 Annual Report 2010 Orbital (t) New standards and interpretations not yet effective (continued) Reference Title Summary AASB 2009-8 (IFRS 2) Amendments to Australian Accounting Standards – Group Cash-settled Share-based Payment Transactions This Standard makes amendments to Australian Accounting Standard AASB 2 Share-based Payment and supersedes Interpretation 8 Scope of AASB 2 and Interpretation 11 AASB 2 – Group and Treasury Share Transactions. [AASB 2] [IFRS 2] The amendments clarify the accounting for group cash-settled share- based payment transactions in the separate or individual ﬁnancial statements of the entity receiving the goods or services when the entity has no obligation to settle the share-based payment transaction. The amendments clarify the scope of AASB 2 (IFRS 2) by requiring an entity that receives goods or services in a share-based payment arrangement to account for those goods or services no matter which entity in the group settles the transaction, and no matter whether the transaction is settled in shares or cash. Application date of standard Application date for Group 1 January 2010 1 July 2010 AASB 9 and AASB 2009-11 (IFRS 9) Amendments to Australian Accounting Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 & 1038 and Interpretations 10 & 12] [IAS 1, 3, 4, 5, 7, IFRS 1, 2, 8, 12, 18, 21, 27, 28, 31, 32, 36, 39, 23, 38] AASB 124 (Revised) Related Party Disclosures (December 2009) (IAS 24 (Revised)) The revised Standard introduces a number of changes to the accounting for ﬁnancial assets, the most signiﬁcant of which includes: 1 January 2010 1 July 2010 two categories for ﬁnancial assets being amortised cost or fair value removal of the requirement to separate embedded derivatives in ﬁnancial assets strict requirements to determine which ﬁnancial assets can be classiﬁed as amortised cost or fair value, Financial assets can only be classiﬁed as amortised cost if (a) the contractual cash ﬂows from the instrument represent principal and interest and (b) the entity’s purpose for holding the instrument is to collect the contractual cash ﬂows an option for investments in equity instruments which are not held for trading to recognise fair value changes through other comprehensive income with no impairment testing and no recycling through proﬁt or loss on derecognition reclassiﬁcations between amortised cost and fair value no longer permitted unless the entity’s business model for holding the asset changes changes to the accounting and additional disclosures for equity instruments classiﬁed as fair value through other comprehensive income The revised AASB 124 simpliﬁes the deﬁnition of a related party, clarifying its intended meaning and eliminating inconsistencies from the deﬁnition, including: (a) (b) (c) the deﬁnition now identiﬁes a subsidiary and an associate with the same investor as related parties of each other; entities signiﬁcantly inﬂuenced by one person and entities signiﬁcantly inﬂuenced by a close member of the family of that person are no longer related parties of each other; and the deﬁnition now identiﬁes that, whenever a person or entity has both joint control over a second entity and joint control or signiﬁcant inﬂuence over a third party, the second and third entities are related to each other. A partial exemption is also provided from the disclosure requirements for government-related entities. Entities that are related by virtue of being controlled by the same government can provide reduced related party disclosures. 1 January 2010 1 July 2010 Orbital 2010 Annual Report 35 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2010 (t) New standards and interpretations not yet effective (continued) Reference Title Summary Amendments to Australian Accounting Standards This amendment makes numerous editorial changes to a range of Australian Accounting Standards and Interpretations. AASB 2009-12 (IFRS 5, 8)(IAS 8, 10, 12, 19, 33, 37, 39, 23 & 31) [AASBs 5, 8, 108, 110, 112, 119, 133, 137, 139, 1023 & 1031 and Interpretations 2, 4, 16, 1039 & 1052] AASB 2010-4 (IAS annual improvement project) Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 1, AASB 7, AASB 101, AASB 134 and Interpretation 13] Interpretation 19 Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments Application date of standard Application date for Group 1 January 2010 1 July 2010 1 January 2010 1 July 2010 1 January 2010 1 July 2010 In particular, it amends AASB 8 (IFRS 8) Operating Segments to require an entity to exercise judgement in assessing whether a government and entities known to be under the control of that government are considered a single customer for the purposes of certain operating segment disclosures. It also makes numerous editorial amendments to a range of Australian Accounting Standards and Interpretations, including amendments to reﬂect changes made to the text of IFRSs by the IASB. Emphasises the interaction between quantitative and qualitative AASB 7 (IFRS 7) disclosures and the nature and extent of risks associated with ﬁnancial instruments. Clariﬁes that an entity will present an analysis of other comprehensive income for each component of equity, either in the statement of changes in equity or in the notes to the ﬁnancial statements. Provides guidance to illustrate how to apply disclosure principles in AASB 134 (IAS 34) for signiﬁcant events and transactions Clarify that when the fair value of award credits is measured based on the value of the awards for which they could be redeemed, the amount of discounts or incentives otherwise granted to customers not participating in the award credit scheme, is to be taken into account. This interpretation clariﬁes that equity instruments issued to a creditor to extinguish a ﬁnancial liability are “consideration paid” in accordance with paragraph 41 of IAS 39. As a result, the ﬁnancial liability is derecognised and the equity instruments issued are treated as consideration paid to extinguish that ﬁnancial liability. The interpretation states that equity instruments issued in a debt for equity swap should be measured at the fair value of the equity instruments issued, if this can be determined reliably. If the fair value of the equity instruments issued is not reliably determinable, the equity instruments should be measured by reference to the fair value of the ﬁnancial liability extinguished as of the date of extinguishment. The directors have not determined the impact of the above new and amended accounting standards. 4. FINANCIAL RISK MANAGEMENTS OBJECTIVES AND POLICIES The Group's principal ﬁnancial instruments comprise cash and short-term deposits, receivables, payables, and ﬁnancial liabilities. The Group manages its exposure to key ﬁnancial risks, including interest rate and currency risk in accordance with the Group's ﬁnancial risk management policy. The objective of the policy is to support the delivery of the Group's ﬁnancial targets whilst protecting future ﬁnancial security. The Group from time-to-time enters into derivative transactions, principally forward currency contracts. The purpose is to manage the currency risks arising from the Group's operations and its sources of revenue. The main risks arising from the Group's ﬁnancial instruments are interest rate risk, foreign currency risk, credit risk and liquidity risk. The Group uses different methods to measure and manage different types of risks to which it is exposed. These include monitoring levels of exposure to interest rate and foreign exchange risk and assessments of market forecasts for interest and foreign exchange rates. Ageing analyses and monitoring of speciﬁc credit allowances are undertaken to manage credit risk, liquidity risk is monitored through the development of future rolling cash ﬂow forecasts. The Board reviews and agrees policies for managing each of these risks as summarised below. 36 Annual Report 2010 Orbital 4. FINANCIAL RISK MANAGEMENTS OBJECTIVES AND POLICIES (continued) Primary responsibility for identiﬁcation and control of ﬁnancial risks rests with the Audit Committee under the authority of the Board. The Board reviews and agrees policies for managing each of the risks identiﬁed below, including the setting of limits for hedging cover of foreign currency and interest rate risk, credit allowances, and future cash ﬂow forecast projections. Risk Exposures and Responses Interest rate risk The Group's exposure to market interest rates relates primarily to the Group's cash, cash equivalents on deposit and term deposits with Australian banks. The primary goal of the Group is to maximize returns on surplus cash, using deposits with maturities of less than 90 days. Management continually monitors the returns on funds invested. The Group also had a term deposit of greater than 90 days and less than 365 days that has been pledged as security to the Group’s bankers for a trade ﬁnance facility. At balance date, the Group had the following mix of ﬁnancial assets and ﬁnancial liabilities exposed to Australian variable interest rate risk that are not designated in cash ﬂow hedges: Financial assets Cash and cash equivalents Other ﬁnancial assets - short term deposits Financial liabilities Interest bearing liabilities CONSOLIDATED 2010 $’000 2009 $’000 3,608 - 3,608 6,623 3,500 10,123 - - The following sensitivity analysis is based on the interest rate risk exposures in existence at the balance sheet date: At 30 June 2010, if interest rates had moved, as illustrated in the table below, with all other variables held constant, post tax proﬁt and other comprehensive income would have been affected as follows: Consolidated +1% (100 basis points) -.5% (50 basis points) Post tax proﬁt Higher/(Lower) 2010 $’000 2009 $’000 Other comprehensive Higher/(Lower) 2010 $’000 2009 $’000 36 (18) 66 (33) - - - - The movements in proﬁt are due to higher/lower interest revenue from variable rate cash balances. The sensitivity is the same in 2010 as in 2009 because the only balances affected by interest rates are cash and interest-bearing loan balances. Foreign currency risk As a result of the investment in Synerject LLC, an associate, the Group’s balance sheet can be affected signiﬁcantly by movements in the US$/A$ exchange rates. The Group also has transactional currency exposures. Such exposure arises from sales or purchases by an operating entity in currencies other than the functional currency. Approximately 17% of the Group’s sales are denominated in currencies other than the functional currency of the operating entity making the sale, whilst approximately 26% of costs are denominated in currencies other than the functional currency of the operating entity making the expenditure. With respect to assets and liabilities denominated in foreign currencies, the Group ensures that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary. The Group does not hold foreign currency positions for trading purposes. Orbital 2010 Annual Report 37 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2010 4. FINANCIAL RISK MANAGEMENTS OBJECTIVES AND POLICIES (continued) At 30 June 2010, the Group had the following exposure to US$ foreign currency that is not designated in cash ﬂow hedges: Financial assets Cash and cash equivalents Trade and other receivables CONSOLIDATED 2010 $’000 2009 $’000 195 308 503 172 190 362 At 30 June 2010, the Group had the following exposure to European Currency Units that is not designated in cash ﬂow hedges: Financial assets Cash and cash equivalents Trade and other receivables 23 48 71 82 389 471 The following sensitivity is based on the foreign currency risk exposures in existence at the balance sheet date: At 30 June 2010, had the Australian Dollar moved, as illustrated in the table below, with all other variables held constant, post tax proﬁt and other comprehensive income would have been affected as follows: Consolidated AUD/USD/EURO +10% AUD/USD/EURO -5% Post tax proﬁt Higher/(Lower) 2010 $’000 2009 $’000 Other comprehensive Higher/(Lower) 2010 $’000 2009 $’000 (46) 26 (33) 19 - - - - The movements in proﬁt in 2010 are more sensitive than in 2009 due to the higher level of US Dollar and Euro ﬁnancial assets at balance date. Credit risk Credit risk arises from the ﬁnancial assets of the Group, which comprise cash and cash equivalents and trade and other receivables. The Group’s exposure to credit risk arises from potential default of the counter party, with a maximum exposure equal to the carrying amount of these ﬁnancial assets (as outlined in each applicable note). The Group does not hold any credit derivatives to offset its credit exposure, however the Group does hold receivable insurance where appropriate. It is the Group’s policy that all customers who wish to trade on credit terms are subject to credit veriﬁcation procedures including an assessment of their independent credit rating, ﬁnancial position, past experience and industry reputation. Risk limits are set for each individual customer in accordance with parameters set by management. These risk limits are regularly monitored. In addition, receivable balances are monitored on an ongoing basis. There are no signiﬁcant concentrations of credit risk within the Group and ﬁnancial instruments are only invested with a major ﬁnancial institution to minimise the risk of default of counterparties. An ageing of receivables is included in note 14. Liquidity risk The Group’s established a trade ﬁnance facility with its bankers during the reporting period. The Group does not have any other bank overdrafts, bank loans, preference shares, ﬁnance leases or committed available credit lines at 30 June 2010. The only external borrowing of the Group are the trade ﬁnance facility repayable on terms not exceeding 180 days and the interest free Western Australian Government loan of $14,346,164 repayable in yearly instalments from May 2010 to May 2025. The table below reﬂects all contractually ﬁxed pay-offs, repayments and interest resulting from recognised ﬁnancial liabilities as of 30 June 2010. For all obligations the respective undiscounted cash ﬂows for the respective upcoming ﬁscal years are presented. Cash ﬂows for ﬁnancial liabilities without ﬁxed amount or timing are based on the conditions existing at 30 June 2010. The Group’s approach to managing liquidity is to ensure, as far as is possible, that it will always have sufﬁcient liquidity to meet its liabilities when due and payable without incurring unacceptable losses or risks. 38 Annual Report 2010 Orbital 4. FINANCIAL RISK MANAGEMENTS OBJECTIVES AND POLICIES (continued) The remaining contractual maturities of the Group’s ﬁnancial liabilities are: Financial assets 6 months or less 6-12 months 1-5 years Over 5 years Fair value CONSOLIDATED 2010 $’000 2009 $’000 2,676 240 2,143 11,763 16,822 5,411 - 19,000 - 24,411 The methods for estimating fair value are outlined in the relevant notes to the ﬁnancial statements. 5. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS The preparation of the ﬁnancial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the ﬁnancial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements and estimates on historical experience and on other various factors it believes to be reasonable under the circumstances, the result of which form the basis of the carrying values of the assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions. Management has identiﬁed the following critical accounting policies for which signiﬁcant judgements, estimates and assumptions are made. Actual results may differ from these estimates under different assumptions and conditions and may materially affect ﬁnancial results or the ﬁnancial position reported in future periods. Further details of the nature of these assumptions and conditions may be found in the relevant notes to the ﬁnancial statements. (a) Signiﬁcant accounting judgements Impairment of non-ﬁnancial assets other than goodwill The Group assesses impairment of all assets at each reporting date by evaluating conditions speciﬁc to the Group and to the particular asset that may lead to impairment. These include product and manufacturing performance, technology, economic and political environments and future product expectations. If an impairment trigger exists the recoverable amount of the asset is determined. Given the current uncertain economic environment management considered that the indicators of impairment were signiﬁcant enough and as such these assets have been tested for impairment in this ﬁnancial period. The review of plant & equipment identiﬁed a number of unique items of equipment with no likely future cash generating potential and as such $314,000 was written off during the comparative year. Value in use models, based on approved budgets and forecasts, have been used to assess impairments of each cash generating unit. Capitalised development costs Development costs are only capitalised when it can be demonstrated that the technical feasibility of completing the intangible asset is valid so that the asset will be available for use or sale. Taxation The Group’s accounting policy for taxation requires management’s judgement as to the types of arrangements considered to be a tax on income in contrast to an operating cost. Judgement is also required in assessing whether deferred tax assets and certain deferred tax liabilities are recognised on the balance sheet. Deferred tax assets, including those arising from unrecouped tax losses, capital losses and temporary differences, are recognised only where it is considered more likely than not that they will be recovered, which is dependent on the generation of sufﬁcient future taxable proﬁts. Assumptions about the generation of future taxable proﬁts and repatriation of retained earnings depend on management’s estimates of future cash ﬂows. These depend on estimates of future production and sales volumes, operating costs, capital expenditure, dividends and other capital management transactions. Judgements are also required about the application of income tax legislation. These judgements and assumptions are subject to risk and uncertainty, hence there is a possibility that changes in circumstances will alter expectations, which may impact the amount of deferred tax assets and deferred tax liabilities recognised on the balance sheet and the amount of other tax losses and temporary differences not yet recognised. In such circumstances, some or all of the carrying amounts of recognised deferred tax assets and liabilities may require adjustment, resulting in a corresponding credit or charge to the income statement. Orbital 2010 Annual Report 39 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2010 5. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS (continued) (b) Signiﬁcant accounting estimates and assumptions Share-based payment transactions The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value of shares granted under the Employee Share Plan No.1 is the market value on the date of issue. The fair value of the Executive Long Term Share Plan rights is determined by an external valuer using a monte-carlo simulation model, with the assumptions detailed in note 35. The fair value of the performance rights is determined by an external valuer using a monte-carlo simulation model, with assumptions detailed in note 35. The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact expenses and equity. Impairment of goodwill and intangibles with indeﬁnite useful lives The Group determines whether goodwill and intangibles with indeﬁnite useful lives are impaired at least on an annual basis. This requires an estimation of the recoverable amount of the cash-generating units, using a value in use discounted cash ﬂow methodology, to which the goodwill and intangibles with indeﬁnite useful lives are allocated. No impairment loss has been recognised in the current year in respect of goodwill. Product warranty In determining the level of provision required for product warranties the Group has made judgements in respect of the expected performance of the product, number of customers who will actually use the product warranty and how often, and the costs of fulﬁlling the performance of the product warranty. Historical experience and current knowledge of the performance of products has been used in determining this provision. The related carrying amounts are disclosed in note 25. Estimation of useful lives of assets The estimation of the useful lives of assets has been based on historical experience as well as manufacturers’ warranties (for plant and equipment). In addition, the condition of the assets is assessed at least once per year and considered against the remaining useful life. Adjustments to useful lives are made when considered necessary. Revenue from Rendering of Services Revenue from services rendered is recognised in the income statement in proportion to the stage of completion of the transaction at the reporting date. The stage of completion is assessed by reference to the extent of work performed. No revenue is recognised if there are signiﬁcant uncertainties regarding recovery of the consideration due, or the costs incurred or to be incurred cannot be measured reliably. 6. OPERATING SEGMENTS Identiﬁcation of reportable segments The group has identiﬁed its operating segments based on the internal reports that are reviewed and used by the executive management team (the chief operating decision makers) in assessing performance and in determining the allocation of resources. The operating segments are identiﬁed by management based on the manner in which the product is sold, whether retail or wholesale, and the nature of the services provided, the identity of service line manager and country of origin. Discrete ﬁnancial information about each of these operating businesses is reported to the executive management team on at least a monthly basis. The reportable segments are based on the similarity of the products produced and sold and/or the services provided, as these are the sources of the Group’s major risks and have the most effect on the rates of return. Types of products and services Engineering services (consultancy) The engineering services business provides consultancy services to original equipment manufacturers, engine manufacturers and government departments. The engineering services provided include research, design, development, calibration, improvement, production support, performance testing, emissions testing and certiﬁcation. Alternative fuels (sale of goods) The alternative fuels business provides LPG fuel systems to an Australian automobile manufacturer, LPG retroﬁt installers and also operates a spare parts business for LPG fuel systems. Royalties and licences (intellectual property rights) The royalties and licences business receives revenue from licensee of Orbital technologies. Applications utilising Orbital technologies include outboard engines, autorickshaws and scooters. 40 Annual Report 2010 Orbital 6. OPERATING SEGMENTS (continued) Accounting policies The following items and associated assets and liabilities are not allocated to operating segments as they are not considered part of the core operations of any segment: (cid:115)(cid:0) (cid:35)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:69) (cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84) (cid:65)(cid:78)(cid:68) (cid:108)(cid:78)(cid:65)(cid:78)(cid:67)(cid:69) (cid:65)(cid:78)(cid:68) (cid:65)(cid:68)(cid:77)(cid:73)(cid:78)(cid:73)(cid:83)(cid:84)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:86)(cid:69)(cid:82)(cid:72)(cid:69)(cid:65)(cid:68) (cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:83)(cid:69)(cid:83)(cid:14) (cid:115)(cid:0) (cid:51)(cid:72)(cid:65)(cid:82)(cid:69) (cid:79)(cid:70) (cid:80)(cid:82)(cid:79)(cid:108)(cid:84) (cid:70)(cid:82)(cid:79)(cid:77) (cid:69)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89) (cid:65)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:69)(cid:68) (cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84)(cid:14) (cid:115)(cid:0) (cid:38)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:69) (cid:67)(cid:79)(cid:83)(cid:84)(cid:83) (cid:13) (cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:73)(cid:78)(cid:71) (cid:65)(cid:68)(cid:74)(cid:85)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83) (cid:79)(cid:78) (cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:83)(cid:73)(cid:79)(cid:78)(cid:83) (cid:68)(cid:85)(cid:69) (cid:84)(cid:79) (cid:68)(cid:73)(cid:83)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:73)(cid:78)(cid:71)(cid:14) (cid:115)(cid:0) (cid:35)(cid:65)(cid:83)(cid:72) (cid:65)(cid:78)(cid:68) (cid:67)(cid:65)(cid:83)(cid:72) (cid:69)(cid:81)(cid:85)(cid:73)(cid:86)(cid:65)(cid:76)(cid:69)(cid:78)(cid:84)(cid:83)(cid:14) (cid:115)(cid:0) (cid:34)(cid:79)(cid:82)(cid:82)(cid:79)(cid:87)(cid:73)(cid:78)(cid:71)(cid:83)(cid:14) (cid:51)(cid:69)(cid:71)(cid:77)(cid:69)(cid:78)(cid:84) (cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76) (cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69) (cid:73)(cid:83) (cid:84)(cid:72)(cid:69) (cid:84)(cid:79)(cid:84)(cid:65)(cid:76) (cid:67)(cid:79)(cid:83)(cid:84) (cid:73)(cid:78)(cid:67)(cid:85)(cid:82)(cid:82)(cid:69)(cid:68) (cid:68)(cid:85)(cid:82)(cid:73)(cid:78)(cid:71) (cid:84)(cid:72)(cid:69) (cid:80)(cid:69)(cid:82)(cid:73)(cid:79)(cid:68) (cid:84)(cid:79) (cid:65)(cid:67)(cid:81)(cid:85)(cid:73)(cid:82)(cid:69) (cid:83)(cid:69)(cid:71)(cid:77)(cid:69)(cid:78)(cid:84) (cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83) (cid:84)(cid:72)(cid:65)(cid:84) (cid:65)(cid:82)(cid:69) (cid:69)(cid:88)(cid:80)(cid:69)(cid:67)(cid:84)(cid:69)(cid:68) (cid:84)(cid:79) (cid:66)(cid:69) (cid:85)(cid:83)(cid:69)(cid:68) (cid:70)(cid:79)(cid:82) (cid:77)(cid:79)(cid:82)(cid:69) (cid:84)(cid:72)(cid:65)(cid:78) (cid:79)(cid:78)(cid:69) (cid:80)(cid:69)(cid:82)(cid:73)(cid:79)(cid:68)(cid:14) (cid:41)(cid:78)(cid:84)(cid:69)(cid:82)(cid:13)(cid:83)(cid:69)(cid:71)(cid:77)(cid:69)(cid:78)(cid:84) (cid:80)(cid:82)(cid:73)(cid:67)(cid:73)(cid:78)(cid:71) (cid:73)(cid:83) (cid:68)(cid:69)(cid:84)(cid:69)(cid:82)(cid:77)(cid:73)(cid:78)(cid:69)(cid:68) (cid:79)(cid:78) (cid:65)(cid:78) (cid:65)(cid:82)(cid:77)(cid:7)(cid:83) (cid:76)(cid:69)(cid:78)(cid:71)(cid:84)(cid:72) (cid:66)(cid:65)(cid:83)(cid:73)(cid:83)(cid:14) Geographical information (cid:52)(cid:72)(cid:69) (cid:69)(cid:78)(cid:71)(cid:73)(cid:78)(cid:69)(cid:69)(cid:82)(cid:73)(cid:78)(cid:71) (cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:69)(cid:83) (cid:65)(cid:78)(cid:68) (cid:82)(cid:79)(cid:89)(cid:65)(cid:76)(cid:84)(cid:73)(cid:69)(cid:83) (cid:65)(cid:78)(cid:68) (cid:76)(cid:73)(cid:67)(cid:69)(cid:78)(cid:67)(cid:69)(cid:83) (cid:83)(cid:69)(cid:71)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83) (cid:65)(cid:82)(cid:69) (cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:68) (cid:79)(cid:78) (cid:65) (cid:87)(cid:79)(cid:82)(cid:76)(cid:68)(cid:87)(cid:73)(cid:68)(cid:69) (cid:66)(cid:65)(cid:83)(cid:73)(cid:83)(cid:14) (cid:52)(cid:72)(cid:69) (cid:65)(cid:76)(cid:84)(cid:69)(cid:82)(cid:78)(cid:65)(cid:84)(cid:73)(cid:86)(cid:69) (cid:70)(cid:85)(cid:69)(cid:76)(cid:83) (cid:83)(cid:69)(cid:71)(cid:77)(cid:69)(cid:78)(cid:84) (cid:73)(cid:83) (cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:68) (cid:79)(cid:78) (cid:65)(cid:78) (cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65)(cid:78) (cid:66)(cid:65)(cid:83)(cid:73)(cid:83)(cid:14) (cid:41)(cid:78) (cid:80)(cid:82)(cid:69)(cid:83)(cid:69)(cid:78)(cid:84)(cid:73)(cid:78)(cid:71) (cid:71)(cid:69)(cid:79)(cid:71)(cid:82)(cid:65)(cid:80)(cid:72)(cid:73)(cid:67)(cid:65)(cid:76) (cid:73)(cid:78)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:82)(cid:69)(cid:86)(cid:69)(cid:78)(cid:85)(cid:69) (cid:73)(cid:83) (cid:66)(cid:65)(cid:83)(cid:69)(cid:68) (cid:79)(cid:78) (cid:84)(cid:72)(cid:69) (cid:71)(cid:69)(cid:79)(cid:71)(cid:82)(cid:65)(cid:80)(cid:72)(cid:73)(cid:67)(cid:65)(cid:76) (cid:76)(cid:79)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:67)(cid:85)(cid:83)(cid:84)(cid:79)(cid:77)(cid:69)(cid:82)(cid:83) (cid:65)(cid:78)(cid:68) (cid:78)(cid:79)(cid:78)(cid:13)(cid:67)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:84) (cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83) (cid:65)(cid:82)(cid:69) (cid:66)(cid:65)(cid:83)(cid:69)(cid:68) (cid:79)(cid:78) (cid:84)(cid:72)(cid:69) (cid:71)(cid:69)(cid:79)(cid:71)(cid:82)(cid:65)(cid:80)(cid:72)(cid:73)(cid:67)(cid:65)(cid:76) (cid:76)(cid:79)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83)(cid:14) (cid:50)(cid:69)(cid:86)(cid:69)(cid:78)(cid:85)(cid:69) (cid:73)(cid:83) (cid:68)(cid:69)(cid:82)(cid:73)(cid:86)(cid:69)(cid:68) (cid:80)(cid:82)(cid:69)(cid:68)(cid:79)(cid:77)(cid:73)(cid:78)(cid:65)(cid:78)(cid:84)(cid:76)(cid:89) (cid:70)(cid:82)(cid:79)(cid:77) (cid:84)(cid:72)(cid:69) (cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:83)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:69)(cid:78)(cid:71)(cid:73)(cid:78)(cid:69)(cid:69)(cid:82)(cid:73)(cid:78)(cid:71) (cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:69)(cid:83)(cid:12) (cid:84)(cid:72)(cid:69) (cid:83)(cid:65)(cid:76)(cid:69) (cid:79)(cid:70) (cid:44)(cid:48)(cid:39) (cid:70)(cid:85)(cid:69)(cid:76) (cid:83)(cid:89)(cid:83)(cid:84)(cid:69)(cid:77)(cid:83) (cid:65)(cid:78)(cid:68) (cid:84)(cid:72)(cid:69) (cid:83)(cid:65)(cid:76)(cid:69) (cid:79)(cid:70) (cid:73)(cid:78)(cid:84)(cid:69)(cid:76)(cid:76)(cid:69)(cid:67)(cid:84)(cid:85)(cid:65)(cid:76) (cid:80)(cid:82)(cid:79)(cid:80)(cid:69)(cid:82)(cid:84)(cid:89) (cid:82)(cid:73)(cid:71)(cid:72)(cid:84)(cid:83) (cid:84)(cid:79) (cid:47)(cid:82)(cid:66)(cid:73)(cid:84)(cid:65)(cid:76)(cid:7)(cid:83) (cid:47)(cid:35)(cid:48) (cid:84)(cid:69)(cid:67)(cid:72)(cid:78)(cid:79)(cid:76)(cid:79)(cid:71)(cid:89)(cid:14) (cid:52)(cid:72)(cid:69) (cid:67)(cid:79)(cid:78)(cid:83)(cid:79)(cid:76)(cid:73)(cid:68)(cid:65)(cid:84)(cid:69)(cid:68) (cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:89) (cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:69)(cid:83) (cid:80)(cid:82)(cid:69)(cid:68)(cid:79)(cid:77)(cid:73)(cid:78)(cid:65)(cid:78)(cid:84)(cid:76)(cid:89) (cid:73)(cid:78) (cid:84)(cid:72)(cid:69) (cid:65)(cid:85)(cid:84)(cid:79)(cid:77)(cid:79)(cid:84)(cid:73)(cid:86)(cid:69)(cid:12) (cid:77)(cid:65)(cid:82)(cid:73)(cid:78)(cid:69) (cid:65)(cid:78)(cid:68) (cid:77)(cid:79)(cid:84)(cid:79)(cid:82)(cid:67)(cid:89)(cid:67)(cid:76)(cid:69) (cid:69)(cid:78)(cid:71)(cid:73)(cid:78)(cid:69) (cid:77)(cid:65)(cid:82)(cid:75)(cid:69)(cid:84)(cid:83)(cid:14) Major customers (cid:52)(cid:72)(cid:69) (cid:39)(cid:82)(cid:79)(cid:85)(cid:80) (cid:72)(cid:65)(cid:83) (cid:65) (cid:78)(cid:85)(cid:77)(cid:66)(cid:69)(cid:82) (cid:79)(cid:70) (cid:67)(cid:85)(cid:83)(cid:84)(cid:79)(cid:77)(cid:69)(cid:82)(cid:83) (cid:84)(cid:79) (cid:87)(cid:72)(cid:73)(cid:67)(cid:72) (cid:73)(cid:84) (cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:69)(cid:83) (cid:66)(cid:79)(cid:84)(cid:72) (cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:83) (cid:65)(cid:78)(cid:68) (cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:69)(cid:83)(cid:14) (cid:52)(cid:72)(cid:69) (cid:65)(cid:76)(cid:84)(cid:69)(cid:82)(cid:78)(cid:65)(cid:84)(cid:73)(cid:86)(cid:69) (cid:70)(cid:85)(cid:69)(cid:76)(cid:83) (cid:83)(cid:69)(cid:71)(cid:77)(cid:69)(cid:78)(cid:84) (cid:83)(cid:85)(cid:80)(cid:80)(cid:76)(cid:73)(cid:69)(cid:83) (cid:65)(cid:78) (cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65)(cid:78) (cid:65)(cid:85)(cid:84)(cid:79)(cid:77)(cid:79)(cid:66)(cid:73)(cid:76)(cid:69) (cid:77)(cid:65)(cid:78)(cid:85)(cid:70)(cid:65)(cid:67)(cid:84)(cid:85)(cid:82)(cid:69)(cid:82) (cid:87)(cid:73)(cid:84)(cid:72) (cid:44)(cid:48)(cid:39) (cid:70)(cid:85)(cid:69)(cid:76) (cid:83)(cid:89)(cid:83)(cid:84)(cid:69)(cid:77)(cid:83) (cid:84)(cid:72)(cid:65)(cid:84) (cid:65)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:69)(cid:68) (cid:70)(cid:79)(cid:82) (cid:18)(cid:18)(cid:14)(cid:25)(cid:5) (cid:79)(cid:70) (cid:69)(cid:88)(cid:84)(cid:69)(cid:82)(cid:78)(cid:65)(cid:76) (cid:82)(cid:69)(cid:86)(cid:69)(cid:78)(cid:85)(cid:69) (cid:8)(cid:18)(cid:16)(cid:16)(cid:25)(cid:26) (cid:18)(cid:22)(cid:14)(cid:24)(cid:5)(cid:9)(cid:14) (cid:52)(cid:72)(cid:69) (cid:78)(cid:69)(cid:88)(cid:84) (cid:77)(cid:79)(cid:83)(cid:84) (cid:83)(cid:73)(cid:71)(cid:78)(cid:73)(cid:108)(cid:67)(cid:65)(cid:78)(cid:84) (cid:67)(cid:85)(cid:83)(cid:84)(cid:79)(cid:77)(cid:69)(cid:82) (cid:87)(cid:72)(cid:73)(cid:67)(cid:72) (cid:65)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:69)(cid:68) (cid:70)(cid:79)(cid:82) (cid:17)(cid:18)(cid:14)(cid:17)(cid:5) (cid:8)(cid:18)(cid:16)(cid:16)(cid:25)(cid:26) (cid:16)(cid:14)(cid:22)(cid:5)(cid:9) (cid:79)(cid:70) (cid:69)(cid:88)(cid:84)(cid:69)(cid:82)(cid:78)(cid:65)(cid:76) (cid:82)(cid:69)(cid:86)(cid:69)(cid:78)(cid:85)(cid:69) (cid:87)(cid:65)(cid:83) (cid:73)(cid:78) (cid:84)(cid:72)(cid:69) (cid:69)(cid:78)(cid:71)(cid:73)(cid:78)(cid:69)(cid:69)(cid:82)(cid:73)(cid:78)(cid:71) (cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:69)(cid:83) (cid:83)(cid:69)(cid:71)(cid:77)(cid:69)(cid:78)(cid:84)(cid:14) (cid:46)(cid:79) (cid:79)(cid:84)(cid:72)(cid:69)(cid:82) (cid:67)(cid:85)(cid:83)(cid:84)(cid:79)(cid:77)(cid:69)(cid:82) (cid:65)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:83) (cid:70)(cid:79)(cid:82) (cid:77)(cid:79)(cid:82)(cid:69) (cid:84)(cid:72)(cid:65)(cid:78) (cid:17)(cid:16)(cid:5) (cid:79)(cid:70) (cid:82)(cid:69)(cid:86)(cid:69)(cid:78)(cid:85)(cid:69)(cid:14) (a) Operating segments (cid:35)(cid:79)(cid:78)(cid:83)(cid:85)(cid:76)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0) (cid:51)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:69)(cid:83)(cid:0) (cid:33)(cid:76)(cid:84)(cid:69)(cid:82)(cid:78)(cid:65)(cid:84)(cid:73)(cid:86)(cid:69)(cid:0) (cid:38)(cid:85)(cid:69)(cid:76)(cid:83)(cid:0) (cid:50)(cid:79)(cid:89)(cid:65)(cid:76)(cid:84)(cid:73)(cid:69)(cid:83) (cid:65)(cid:78)(cid:68) (cid:76)(cid:73)(cid:67)(cid:69)(cid:78)(cid:67)(cid:69)(cid:83) (cid:8)(cid:73)(cid:9)(cid:0) (cid:35)(cid:79)(cid:78)(cid:83)(cid:79)(cid:76)(cid:73)(cid:68)(cid:65)(cid:84)(cid:69)(cid:68) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:4)(cid:103)(cid:16)(cid:16)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25)(cid:0) (cid:4)(cid:103)(cid:16)(cid:16)(cid:16)(cid:0) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:4)(cid:103)(cid:16)(cid:16)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25)(cid:0) (cid:4)(cid:103)(cid:16)(cid:16)(cid:16)(cid:0) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:4)(cid:103)(cid:16)(cid:16)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25)(cid:0) (cid:4)(cid:103)(cid:16)(cid:16)(cid:16)(cid:0) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:4)(cid:103)(cid:16)(cid:16)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25) (cid:4)(cid:103)(cid:16)(cid:16)(cid:16) Segment Revenue - external customers (cid:25)(cid:12)(cid:22)(cid:18)(cid:17) (cid:24)(cid:12)(cid:23)(cid:25)(cid:24) (cid:22)(cid:12)(cid:18)(cid:16)(cid:19) (cid:22)(cid:12)(cid:18)(cid:22)(cid:20) (cid:17)(cid:12)(cid:17)(cid:25)(cid:25) (cid:17)(cid:12)(cid:17)(cid:17)(cid:21) (cid:17)(cid:23)(cid:12)(cid:16)(cid:18)(cid:19) (cid:17)(cid:22)(cid:12)(cid:17)(cid:23)(cid:23) Unallocated other revenue (cid:52)(cid:79)(cid:84)(cid:65)(cid:76) (cid:50)(cid:69)(cid:86)(cid:69)(cid:78)(cid:85)(cid:69)(cid:0) Segment proﬁt/(loss) Unallocated expenses - net (ii) (cid:39)(cid:65)(cid:73)(cid:78) (cid:79)(cid:78) (cid:82)(cid:69)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:85)(cid:82)(cid:69) (cid:79)(cid:70) (cid:55)(cid:33) (cid:39)(cid:79)(cid:86)(cid:69)(cid:82)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84) (cid:44)(cid:79)(cid:65)(cid:78)(cid:0) (cid:38)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:69) (cid:67)(cid:79)(cid:83)(cid:84)(cid:83)(cid:0) (cid:48)(cid:82)(cid:79)(cid:108)(cid:84) (cid:79)(cid:78) (cid:83)(cid:65)(cid:76)(cid:69) (cid:79)(cid:70) (cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:73)(cid:78) (cid:74)(cid:79)(cid:73)(cid:78)(cid:84)(cid:76)(cid:89) (cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:79)(cid:76)(cid:76)(cid:69)(cid:68) (cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:89)(cid:0) (cid:51)(cid:72)(cid:65)(cid:82)(cid:69) (cid:79)(cid:70) (cid:80)(cid:82)(cid:79)(cid:108)(cid:84) (cid:70)(cid:82)(cid:79)(cid:77) (cid:69)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89) (cid:65)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:69)(cid:68) (cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0) Net proﬁt/(loss) before related income tax (cid:41)(cid:78)(cid:67)(cid:79)(cid:77)(cid:69) (cid:84)(cid:65)(cid:88) (cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84)(cid:15)(cid:8)(cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:83)(cid:69)(cid:9)(cid:0) Proﬁt after tax attributable to members (cid:18)(cid:20)(cid:18) (cid:19)(cid:19)(cid:22) (cid:17)(cid:23)(cid:12)(cid:18)(cid:22)(cid:21) (cid:17)(cid:22)(cid:12)(cid:21)(cid:17)(cid:19) (cid:17)(cid:12)(cid:16)(cid:19)(cid:17) (cid:19)(cid:17)(cid:25) (cid:8)(cid:17)(cid:12)(cid:23)(cid:18)(cid:23)(cid:9)(cid:0) (cid:8)(cid:23)(cid:19)(cid:25)(cid:9)(cid:0) (cid:19)(cid:23) (cid:8)(cid:17)(cid:12)(cid:17)(cid:19)(cid:16)(cid:9)(cid:0) (cid:8)(cid:22)(cid:21)(cid:25)(cid:9)(cid:0) (cid:8)(cid:17)(cid:12)(cid:21)(cid:21)(cid:16)(cid:9) (cid:8)(cid:20)(cid:12)(cid:16)(cid:18)(cid:23)(cid:9)(cid:0) (cid:8)(cid:19)(cid:12)(cid:21)(cid:21)(cid:22)(cid:9) (cid:23)(cid:12)(cid:22)(cid:25)(cid:21) (cid:13) (cid:8)(cid:23)(cid:21)(cid:21)(cid:9)(cid:0) (cid:8)(cid:23)(cid:18)(cid:18)(cid:9) (cid:13) (cid:17)(cid:12)(cid:24)(cid:23)(cid:20) (cid:19)(cid:12)(cid:22)(cid:23)(cid:24) (cid:17)(cid:12)(cid:24)(cid:20)(cid:22) (cid:20)(cid:12)(cid:17)(cid:18)(cid:24) (cid:8)(cid:19)(cid:16)(cid:20)(cid:9) (cid:19)(cid:24)(cid:24) (cid:8)(cid:18)(cid:12)(cid:17)(cid:20)(cid:23)(cid:9) (cid:20)(cid:12)(cid:21)(cid:17)(cid:22) (cid:8)(cid:18)(cid:12)(cid:20)(cid:21)(cid:17)(cid:9) Orbital 2010 Annual Report 41 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2010 6. OPERATING SEGMENTS (continued) Consulting Services Alternative Fuels 2010 $’000 2009 $’000 2010 $’000 2009 $’000 Royalties and licences (i) 2009 2010 $’000 $’000 Consolidated 2010 $’000 2009 $’000 Non-cash (revenue) and expenses Depreciation and amortisation 737 1,074 267 20 Equity settled employee compensation Other non-cash (income)/expenses 127 122 (345) 72 49 - 8 - Segment non-cash expenses 519 1,268 316 28 - 1 - 1 Equity settled employee compensation Amortisation of non-interest bearing loans Gain on restructure of WA Government Loan Share of proﬁt from equity accounted investment Foreign exchange translation (gain)/loss Total non-cash (revenue) and expenses - 1,004 1,094 1 - 1 177 131 (345) 72 836 1,297 163 626 192 722 (7,695) - (1,874) (1,846) 97 (564) (7,847) (199) (i) (ii) Licence and royalty costs include direct patent costs and research and development. Unallocated expenses (net) include corporate management and ﬁnance and administration overhead expenses net of unallocated other income. In FY10, unallocated expenses include $595,000 of due diligence and capital raising expenses for a proposed acquisition which did not proceed. Consulting Services Alternative Fuels Royalties and licences Consolidated 2010 $’000 2009 $’000 2010 $’000 2009 $’000 2010 $’000 2009 $’000 2010 $’000 2009 $’000 10,695 11,232 6,784 4,518 763 344 18,242 16,094 3,608 6,623 - 3,500 11,534 11,264 5,215 5,054 38,599 42,535 7,348 8,484 2,847 2,196 - - 10,195 10,680 - (132) 7,604 14,873 17,799 25,421 20,800 17,114 Segment Assets Unallocated assets Cash Other ﬁnancial assets Equity accounted investment in associate Deferred tax asset Consolidated Total Assets Segment Liabilities Unallocated liabilities Income tax liabilities Borrowings Consolidated Total Liabilities Consolidated Net Assets Segment acquisitions of non current assets 827 3,052 1,695 344 - - 2,522 3,396 Acquisitions of non-current assets represent acquisitions of property, plant and equipment of $1,394,000 and development of intangibles of $1,128,000 42 Annual Report 2010 Orbital 6. OPERATING SEGMENTS (continued) (cid:8)(cid:66)(cid:9)(cid:0) Geographic information (cid:35)(cid:79)(cid:78)(cid:83)(cid:79)(cid:76)(cid:73)(cid:68)(cid:65)(cid:84)(cid:69)(cid:68) (cid:33)(cid:83)(cid:73)(cid:65)(cid:0) (cid:33)(cid:77)(cid:69)(cid:82)(cid:73)(cid:67)(cid:65)(cid:83)(cid:0) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25)(cid:0) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25)(cid:0) (cid:4)(cid:103)(cid:16)(cid:16)(cid:16)(cid:0) (cid:4)(cid:103)(cid:16)(cid:16)(cid:16)(cid:0) (cid:4)(cid:103)(cid:16)(cid:16)(cid:16)(cid:0) (cid:4)(cid:103)(cid:16)(cid:16)(cid:16)(cid:0) (cid:4)(cid:103)(cid:16)(cid:16)(cid:16)(cid:0) (cid:4)(cid:103)(cid:16)(cid:16)(cid:16)(cid:0) (cid:4)(cid:103)(cid:16)(cid:16)(cid:16)(cid:0) (cid:4)(cid:103)(cid:16)(cid:16)(cid:16)(cid:0) (cid:4)(cid:103)(cid:16)(cid:16)(cid:16)(cid:0) (cid:4)(cid:103)(cid:16)(cid:16)(cid:16) (cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65)(cid:0) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25)(cid:0) (cid:37)(cid:85)(cid:82)(cid:79)(cid:80)(cid:69)(cid:0) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25)(cid:0) (cid:50)(cid:69)(cid:86)(cid:69)(cid:78)(cid:85)(cid:69) (cid:13) (cid:69)(cid:88)(cid:84)(cid:69)(cid:82)(cid:78)(cid:65)(cid:76) (cid:67)(cid:85)(cid:83)(cid:84)(cid:79)(cid:77)(cid:69)(cid:82)(cid:83)(cid:0) (cid:20)(cid:12)(cid:16)(cid:19)(cid:18) (cid:19)(cid:12)(cid:21)(cid:18)(cid:19) (cid:18)(cid:24)(cid:18) (cid:17)(cid:12)(cid:24)(cid:20)(cid:20) (cid:19)(cid:12)(cid:22)(cid:22)(cid:21) (cid:18)(cid:12)(cid:18)(cid:25)(cid:21) (cid:25)(cid:12)(cid:16)(cid:20)(cid:20) (cid:24)(cid:12)(cid:21)(cid:17)(cid:21) (cid:17)(cid:23)(cid:12)(cid:16)(cid:18)(cid:19) (cid:17)(cid:22)(cid:12)(cid:17)(cid:23)(cid:23) (cid:46)(cid:79)(cid:78)(cid:13)(cid:67)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:84) (cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83)(cid:0) (cid:17)(cid:22)(cid:12)(cid:23)(cid:20)(cid:25) (cid:17)(cid:22)(cid:12)(cid:19)(cid:17)(cid:24) (cid:13) (cid:13) (cid:13) (cid:13) (cid:25)(cid:12)(cid:20)(cid:19)(cid:22) (cid:23)(cid:12)(cid:25)(cid:19)(cid:16) (cid:18)(cid:22)(cid:12)(cid:17)(cid:24)(cid:21) (cid:18)(cid:20)(cid:12)(cid:18)(cid:20)(cid:24) 7. OTHER REVENUE (cid:0) (cid:41)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:82)(cid:69)(cid:86)(cid:69)(cid:78)(cid:85)(cid:69)(cid:0) 8. OTHER INCOME (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:39)(cid:65)(cid:73)(cid:78)(cid:15)(cid:8)(cid:76)(cid:79)(cid:83)(cid:83)(cid:9) (cid:79)(cid:78) (cid:83)(cid:65)(cid:76)(cid:69) (cid:79)(cid:70) (cid:80)(cid:82)(cid:79)(cid:80)(cid:69)(cid:82)(cid:84)(cid:89)(cid:12) (cid:80)(cid:76)(cid:65)(cid:78)(cid:84) (cid:65)(cid:78)(cid:68) (cid:69)(cid:81)(cid:85)(cid:73)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0) (cid:33)(cid:85)(cid:84)(cid:79)(cid:77)(cid:79)(cid:84)(cid:73)(cid:86)(cid:69) (cid:35)(cid:79)(cid:77)(cid:80)(cid:69)(cid:84)(cid:73)(cid:84)(cid:73)(cid:86)(cid:69)(cid:78)(cid:69)(cid:83)(cid:83) (cid:65)(cid:78)(cid:68) (cid:41)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84) (cid:51)(cid:67)(cid:72)(cid:69)(cid:77)(cid:69) (cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84)(cid:83) (cid:8)(cid:65)(cid:9)(cid:0) (cid:46)(cid:69)(cid:84) (cid:70)(cid:79)(cid:82)(cid:69)(cid:73)(cid:71)(cid:78) (cid:69)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69) (cid:71)(cid:65)(cid:73)(cid:78)(cid:83)(cid:0) (cid:39)(cid:79)(cid:86)(cid:69)(cid:82)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84) (cid:71)(cid:82)(cid:65)(cid:78)(cid:84) (cid:65)(cid:82)(cid:73)(cid:83)(cid:73)(cid:78)(cid:71) (cid:79)(cid:78) (cid:82)(cid:69)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:85)(cid:82)(cid:69) (cid:79)(cid:70) (cid:78)(cid:79)(cid:78) (cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:66)(cid:69)(cid:65)(cid:82)(cid:73)(cid:78)(cid:71) (cid:76)(cid:79)(cid:65)(cid:78) (cid:8)(cid:82)(cid:69)(cid:70)(cid:69)(cid:82) (cid:78)(cid:79)(cid:84)(cid:69) (cid:18)(cid:22)(cid:9)(cid:0) (cid:39)(cid:82)(cid:65)(cid:78)(cid:84) (cid:73)(cid:78)(cid:67)(cid:79)(cid:77)(cid:69)(cid:0) (cid:39)(cid:65)(cid:73)(cid:78) (cid:79)(cid:78) (cid:83)(cid:65)(cid:76)(cid:69) (cid:79)(cid:70) (cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:73)(cid:78) (cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84) (cid:65)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:69)(cid:68) (cid:70)(cid:79)(cid:82) (cid:85)(cid:83)(cid:73)(cid:78)(cid:71) (cid:84)(cid:72)(cid:69) (cid:69)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89) (cid:77)(cid:69)(cid:84)(cid:72)(cid:79)(cid:68) (cid:8)(cid:83)(cid:69)(cid:69) (cid:78)(cid:79)(cid:84)(cid:69) (cid:17)(cid:22)(cid:8)(cid:69)(cid:9)(cid:9)(cid:0) (cid:47)(cid:84)(cid:72)(cid:69)(cid:82) (cid:8)(cid:65)(cid:9)(cid:0) (cid:52)(cid:72)(cid:69) (cid:39)(cid:82)(cid:79)(cid:85)(cid:80) (cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:69)(cid:83) (cid:33)(cid:85)(cid:84)(cid:79)(cid:77)(cid:79)(cid:84)(cid:73)(cid:86)(cid:69) (cid:35)(cid:79)(cid:77)(cid:80)(cid:69)(cid:84)(cid:73)(cid:84)(cid:73)(cid:86)(cid:69)(cid:78)(cid:69)(cid:83)(cid:83) (cid:65)(cid:78)(cid:68) (cid:41)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84) (cid:51)(cid:67)(cid:72)(cid:69)(cid:77)(cid:69) (cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84)(cid:83) (cid:70)(cid:82)(cid:79)(cid:77) (cid:84)(cid:72)(cid:69) (cid:38)(cid:69)(cid:68)(cid:69)(cid:82)(cid:65)(cid:76) (cid:39)(cid:79)(cid:86)(cid:69)(cid:82)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84) (cid:70)(cid:79)(cid:82) (cid:81)(cid:85)(cid:65)(cid:76)(cid:73)(cid:70)(cid:89)(cid:73)(cid:78)(cid:71) (cid:82)(cid:69)(cid:83)(cid:69)(cid:65)(cid:82)(cid:67)(cid:72) (cid:65)(cid:78)(cid:68) (cid:68)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84) (cid:65)(cid:67)(cid:84)(cid:73)(cid:86)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83) (cid:65)(cid:78)(cid:68) (cid:65)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:83) (cid:70)(cid:79)(cid:82) (cid:84)(cid:72)(cid:69)(cid:83)(cid:69) (cid:65)(cid:83) (cid:71)(cid:79)(cid:86)(cid:69)(cid:82)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84) (cid:71)(cid:82)(cid:65)(cid:78)(cid:84)(cid:83) 9. EXPENSES (a) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (b) (cid:0) (cid:0) (c) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) Employee beneﬁts expense (cid:51)(cid:65)(cid:76)(cid:65)(cid:82)(cid:73)(cid:69)(cid:83) (cid:65)(cid:78)(cid:68) (cid:87)(cid:65)(cid:71)(cid:69)(cid:83)(cid:0) (cid:35)(cid:79)(cid:78)(cid:84)(cid:82)(cid:73)(cid:66)(cid:85)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83) (cid:84)(cid:79) (cid:68)(cid:69)(cid:108)(cid:78)(cid:69)(cid:68) (cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:73)(cid:66)(cid:85)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83) (cid:83)(cid:85)(cid:80)(cid:69)(cid:82)(cid:65)(cid:78)(cid:78)(cid:85)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:70)(cid:85)(cid:78)(cid:68)(cid:83)(cid:0) (cid:37)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89) (cid:83)(cid:69)(cid:84)(cid:84)(cid:76)(cid:69)(cid:68) (cid:84)(cid:82)(cid:65)(cid:78)(cid:83)(cid:65)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0) (cid:8)(cid:36)(cid:69)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:9)(cid:15)(cid:41)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69) (cid:73)(cid:78) (cid:76)(cid:73)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89) (cid:70)(cid:79)(cid:82) (cid:65)(cid:78)(cid:78)(cid:85)(cid:65)(cid:76) (cid:76)(cid:69)(cid:65)(cid:86)(cid:69)(cid:0) (cid:8)(cid:36)(cid:69)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:9)(cid:15)(cid:41)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69) (cid:73)(cid:78) (cid:76)(cid:73)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89) (cid:70)(cid:79)(cid:82) (cid:76)(cid:79)(cid:78)(cid:71) (cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:69) (cid:76)(cid:69)(cid:65)(cid:86)(cid:69)(cid:0) (cid:47)(cid:84)(cid:72)(cid:69)(cid:82) (cid:65)(cid:83)(cid:83)(cid:79)(cid:67)(cid:73)(cid:65)(cid:84)(cid:69)(cid:68) (cid:80)(cid:69)(cid:82)(cid:83)(cid:79)(cid:78)(cid:78)(cid:69)(cid:76) (cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:83)(cid:69)(cid:83)(cid:0) Finance costs (cid:41)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:79)(cid:78) (cid:66)(cid:79)(cid:82)(cid:82)(cid:79)(cid:87)(cid:73)(cid:78)(cid:71)(cid:83)(cid:0) (cid:46)(cid:79)(cid:78)(cid:13)(cid:67)(cid:65)(cid:83)(cid:72) (cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:83)(cid:69) (cid:55)(cid:33) (cid:39)(cid:79)(cid:86)(cid:69)(cid:82)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84) (cid:44)(cid:79)(cid:65)(cid:78)(cid:0) Other expenses (cid:47)(cid:67)(cid:67)(cid:85)(cid:80)(cid:65)(cid:78)(cid:67)(cid:89)(cid:0) (cid:33)(cid:68)(cid:77)(cid:73)(cid:78)(cid:73)(cid:83)(cid:84)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:45)(cid:65)(cid:82)(cid:75)(cid:69)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0) (cid:41)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:79)(cid:82) (cid:82)(cid:69)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0) (cid:8)(cid:55)(cid:82)(cid:73)(cid:84)(cid:69)(cid:13)(cid:66)(cid:65)(cid:67)(cid:75)(cid:9)(cid:15)(cid:65)(cid:76)(cid:76)(cid:79)(cid:87)(cid:65)(cid:78)(cid:67)(cid:69) (cid:70)(cid:79)(cid:82) (cid:73)(cid:77)(cid:80)(cid:65)(cid:73)(cid:82)(cid:77)(cid:69)(cid:78)(cid:84) (cid:79)(cid:70) (cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:65)(cid:66)(cid:76)(cid:69)(cid:83)(cid:0) (cid:46)(cid:69)(cid:84) (cid:70)(cid:79)(cid:82)(cid:69)(cid:73)(cid:71)(cid:78) (cid:69)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69) (cid:76)(cid:79)(cid:83)(cid:83)(cid:69)(cid:83)(cid:0) (cid:44)(cid:79)(cid:83)(cid:83) (cid:79)(cid:78) (cid:83)(cid:65)(cid:76)(cid:69) (cid:79)(cid:70) (cid:80)(cid:82)(cid:79)(cid:80)(cid:69)(cid:82)(cid:84)(cid:89)(cid:12) (cid:80)(cid:76)(cid:65)(cid:78)(cid:84) (cid:65)(cid:78)(cid:68) (cid:69)(cid:81)(cid:85)(cid:73)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0) (cid:47)(cid:84)(cid:72)(cid:69)(cid:82) (cid:35)(cid:47)(cid:46)(cid:51)(cid:47)(cid:44)(cid:41)(cid:36)(cid:33)(cid:52)(cid:37)(cid:36) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16) (cid:18)(cid:20)(cid:18) (cid:19)(cid:19)(cid:22) (cid:20)(cid:17) (cid:21)(cid:19)(cid:24) (cid:13) (cid:23)(cid:12)(cid:22)(cid:25)(cid:21) (cid:19)(cid:19)(cid:16) (cid:13) (cid:17)(cid:21)(cid:21) (cid:13) (cid:17)(cid:18)(cid:16) (cid:21)(cid:22)(cid:20) (cid:13) (cid:13) (cid:19)(cid:12)(cid:22)(cid:23)(cid:24) (cid:24) (cid:24)(cid:12)(cid:23)(cid:21)(cid:25) (cid:20)(cid:12)(cid:19)(cid:23)(cid:16) (cid:24)(cid:12)(cid:23)(cid:22)(cid:17) (cid:25)(cid:17)(cid:20) (cid:19)(cid:19)(cid:25) (cid:8)(cid:17)(cid:17)(cid:16)(cid:9)(cid:0) (cid:25)(cid:24) (cid:0) (cid:23)(cid:25)(cid:16) (cid:17)(cid:16)(cid:12)(cid:23)(cid:25)(cid:18) (cid:17)(cid:18)(cid:25) (cid:22)(cid:18)(cid:22) (cid:23)(cid:21)(cid:21) (cid:23)(cid:24)(cid:22) (cid:18)(cid:24)(cid:20) (cid:25)(cid:23) (cid:24)(cid:24) (cid:8)(cid:17)(cid:17)(cid:20)(cid:9)(cid:0) (cid:25)(cid:23) (cid:13) (cid:18)(cid:25)(cid:19) (cid:24)(cid:12)(cid:16)(cid:17)(cid:25) (cid:24)(cid:25)(cid:16) (cid:19)(cid:18)(cid:19) (cid:21) (cid:8)(cid:22)(cid:16)(cid:9) (cid:22)(cid:20)(cid:19) (cid:25)(cid:12)(cid:24)(cid:18)(cid:16) (cid:20) (cid:23)(cid:18)(cid:18) (cid:23)(cid:18)(cid:22) (cid:22)(cid:22)(cid:22) (cid:18)(cid:17)(cid:23) (cid:18)(cid:25) (cid:23)(cid:20) (cid:17)(cid:23)(cid:20) (cid:13) (cid:19)(cid:18)(cid:18) (cid:21)(cid:16) (cid:17)(cid:12)(cid:21)(cid:19)(cid:17) (cid:17)(cid:12)(cid:21)(cid:19)(cid:18) (cid:0) (cid:0) (cid:0) Orbital 2010 Annual Report 43 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2010 9. EXPENSES (continued) (d) Cost of sales (cid:0) (cid:0) (e) (cid:0) (f) (cid:0) (cid:50)(cid:65)(cid:87) (cid:77)(cid:65)(cid:84)(cid:69)(cid:82)(cid:73)(cid:65)(cid:76)(cid:83) (cid:65)(cid:78)(cid:68) (cid:67)(cid:79)(cid:78)(cid:83)(cid:85)(cid:77)(cid:65)(cid:66)(cid:76)(cid:69)(cid:83) (cid:85)(cid:83)(cid:69)(cid:68)(cid:0) (cid:35)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69) (cid:73)(cid:78) (cid:73)(cid:78)(cid:86)(cid:69)(cid:78)(cid:84)(cid:79)(cid:82)(cid:73)(cid:69)(cid:83)(cid:0) Lease payments included in income statement (cid:45)(cid:73)(cid:78)(cid:73)(cid:77)(cid:85)(cid:77) (cid:76)(cid:69)(cid:65)(cid:83)(cid:69) (cid:80)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83) (cid:13) (cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71) (cid:76)(cid:69)(cid:65)(cid:83)(cid:69)(cid:0) Research and development costs (cid:50)(cid:69)(cid:83)(cid:69)(cid:65)(cid:82)(cid:67)(cid:72) (cid:65)(cid:78)(cid:68) (cid:68)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84) (cid:67)(cid:79)(cid:83)(cid:84)(cid:83) (cid:67)(cid:72)(cid:65)(cid:82)(cid:71)(cid:69)(cid:68) (cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:76)(cid:89) (cid:84)(cid:79) (cid:84)(cid:72)(cid:69) (cid:73)(cid:78)(cid:67)(cid:79)(cid:77)(cid:69) (cid:83)(cid:84)(cid:65)(cid:84)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:26)(cid:0) (cid:13) (cid:44)(cid:48)(cid:41) (cid:68)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0) (cid:13) (cid:47)(cid:84)(cid:72)(cid:69)(cid:82) (cid:82)(cid:69)(cid:83)(cid:69)(cid:65)(cid:82)(cid:67)(cid:72) (cid:6) (cid:68)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0) 10. TAXATION (a) Recognised in the income statement Current income tax (cid:35)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:84) (cid:89)(cid:69)(cid:65)(cid:82) (cid:8)(cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:83)(cid:69)(cid:9)(cid:15)(cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84)(cid:0) (cid:48)(cid:82)(cid:73)(cid:79)(cid:82) (cid:89)(cid:69)(cid:65)(cid:82) (cid:85)(cid:78)(cid:68)(cid:69)(cid:82) (cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:69)(cid:68)(cid:0) Deferred tax (cid:50)(cid:69)(cid:76)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71) (cid:84)(cid:79) (cid:79)(cid:82)(cid:73)(cid:71)(cid:73)(cid:78)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71) (cid:65)(cid:78)(cid:68) (cid:82)(cid:69)(cid:86)(cid:69)(cid:82)(cid:83)(cid:73)(cid:78)(cid:71) (cid:84)(cid:69)(cid:77)(cid:80)(cid:79)(cid:82)(cid:65)(cid:82)(cid:89) (cid:68)(cid:73)(cid:70)(cid:70)(cid:69)(cid:82)(cid:69)(cid:78)(cid:67)(cid:69)(cid:83)(cid:0) (cid:8)(cid:37)(cid:88)(cid:80)(cid:69)(cid:78)(cid:83)(cid:69)(cid:9)(cid:15)(cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84) (cid:79)(cid:78) (cid:68)(cid:69)(cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:15)(cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:84)(cid:65)(cid:88) (cid:76)(cid:79)(cid:83)(cid:83)(cid:69)(cid:83)(cid:0) (cid:37)(cid:88)(cid:80)(cid:69)(cid:78)(cid:83)(cid:69) (cid:79)(cid:78) (cid:68)(cid:69)(cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:84)(cid:65)(cid:88) (cid:76)(cid:79)(cid:83)(cid:83)(cid:69)(cid:83) (cid:65)(cid:82)(cid:73)(cid:83)(cid:73)(cid:78)(cid:71) (cid:70)(cid:82)(cid:79)(cid:77) (cid:84)(cid:72)(cid:69) (cid:68)(cid:73)(cid:83)(cid:80)(cid:79)(cid:83)(cid:65)(cid:76) (cid:79)(cid:70) (cid:65)(cid:78) (cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:73)(cid:78) (cid:51)(cid:89)(cid:78)(cid:69)(cid:82)(cid:74)(cid:69)(cid:67)(cid:84)(cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:35)(cid:47)(cid:46)(cid:51)(cid:47)(cid:44)(cid:41)(cid:36)(cid:33)(cid:52)(cid:37)(cid:36) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16) (cid:21)(cid:12)(cid:18)(cid:20)(cid:21)(cid:0) (cid:8)(cid:22)(cid:19)(cid:24)(cid:9)(cid:0) (cid:20)(cid:12)(cid:22)(cid:16)(cid:23)(cid:0) (cid:22)(cid:12)(cid:18)(cid:24)(cid:20) (cid:8)(cid:17)(cid:12)(cid:19)(cid:24)(cid:23)(cid:9) (cid:20)(cid:12)(cid:24)(cid:25)(cid:23) (cid:17)(cid:23)(cid:17)(cid:0) (cid:23)(cid:21) (cid:18)(cid:23)(cid:21)(cid:0) (cid:24)(cid:23)(cid:23)(cid:0) (cid:17)(cid:12)(cid:17)(cid:21)(cid:18)(cid:0) (cid:21)(cid:22)(cid:20) (cid:17)(cid:12)(cid:18)(cid:20)(cid:22) (cid:17)(cid:12)(cid:24)(cid:17)(cid:16) (cid:23)(cid:25)(cid:0) (cid:8)(cid:17)(cid:16)(cid:24)(cid:9)(cid:0) (cid:8)(cid:18)(cid:25)(cid:9)(cid:0) (cid:8)(cid:18)(cid:12)(cid:24)(cid:18)(cid:22)(cid:9)(cid:0) (cid:19)(cid:12)(cid:18)(cid:20)(cid:19)(cid:0) (cid:8)(cid:17)(cid:22)(cid:21)(cid:9) (cid:8)(cid:18)(cid:21)(cid:17)(cid:9) (cid:8)(cid:20)(cid:17)(cid:22)(cid:9) (cid:8)(cid:17)(cid:20)(cid:23)(cid:9) (cid:8)(cid:19)(cid:25)(cid:24)(cid:9) (cid:13)(cid:0) (cid:20)(cid:17)(cid:23)(cid:0) (cid:8)(cid:17)(cid:12)(cid:17)(cid:24)(cid:22)(cid:9) (cid:8)(cid:17)(cid:12)(cid:23)(cid:19)(cid:17)(cid:9) (cid:52)(cid:79)(cid:84)(cid:65)(cid:76) (cid:73)(cid:78)(cid:67)(cid:79)(cid:77)(cid:69) (cid:84)(cid:65)(cid:88) (cid:8)(cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:83)(cid:69)(cid:9)(cid:15)(cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84) (cid:73)(cid:78) (cid:73)(cid:78)(cid:67)(cid:79)(cid:77)(cid:69) (cid:83)(cid:84)(cid:65)(cid:84)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0) (cid:19)(cid:24)(cid:24)(cid:0) (cid:8)(cid:18)(cid:12)(cid:17)(cid:20)(cid:23)(cid:9) (b) Numerical reconciliation between tax beneﬁt and pre-tax net Proﬁt/(Loss) before tax (cid:0) (cid:41)(cid:78)(cid:67)(cid:79)(cid:77)(cid:69) (cid:84)(cid:65)(cid:88) (cid:85)(cid:83)(cid:73)(cid:78)(cid:71) (cid:84)(cid:72)(cid:69) (cid:83)(cid:84)(cid:65)(cid:84)(cid:85)(cid:84)(cid:79)(cid:82)(cid:89) (cid:84)(cid:65)(cid:88) (cid:82)(cid:65)(cid:84)(cid:69)(cid:83)(cid:0) Australian (cid:13) (cid:46)(cid:79)(cid:78) (cid:68)(cid:69)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:66)(cid:76)(cid:69) (cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0) (cid:13) (cid:46)(cid:79)(cid:78) (cid:65)(cid:83)(cid:83)(cid:69)(cid:83)(cid:83)(cid:65)(cid:66)(cid:76)(cid:69) (cid:73)(cid:84)(cid:69)(cid:77)(cid:83)(cid:0) (cid:13) (cid:36)(cid:69)(cid:70)(cid:69)(cid:82)(cid:82)(cid:69)(cid:68) (cid:84)(cid:65)(cid:88) (cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83) (cid:78)(cid:79)(cid:84) (cid:66)(cid:82)(cid:79)(cid:85)(cid:71)(cid:72)(cid:84) (cid:84)(cid:79) (cid:65)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84) (cid:73)(cid:78) (cid:80)(cid:82)(cid:73)(cid:79)(cid:82) (cid:89)(cid:69)(cid:65)(cid:82)(cid:83) (cid:78)(cid:79)(cid:87) (cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68)(cid:0) (cid:0) Foreign (cid:13) (cid:46)(cid:69)(cid:84) (cid:87)(cid:73)(cid:84)(cid:72)(cid:72)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71) (cid:84)(cid:65)(cid:88) (cid:82)(cid:69)(cid:67)(cid:79)(cid:85)(cid:80)(cid:69)(cid:68)(cid:15)(cid:8)(cid:80)(cid:65)(cid:73)(cid:68)(cid:9)(cid:0) (cid:13) (cid:53)(cid:78)(cid:73)(cid:84)(cid:69)(cid:68) (cid:51)(cid:84)(cid:65)(cid:84)(cid:69)(cid:83) (cid:79)(cid:70) (cid:33)(cid:77)(cid:69)(cid:82)(cid:73)(cid:67)(cid:65) (cid:38)(cid:69)(cid:68)(cid:69)(cid:82)(cid:65)(cid:76) (cid:65)(cid:78)(cid:68) (cid:51)(cid:84)(cid:65)(cid:84)(cid:69) (cid:84)(cid:65)(cid:88)(cid:69)(cid:83)(cid:0) (cid:13) (cid:53)(cid:78)(cid:68)(cid:69)(cid:82) (cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:69)(cid:68) (cid:70)(cid:79)(cid:82) (cid:73)(cid:78) (cid:80)(cid:82)(cid:73)(cid:79)(cid:82) (cid:80)(cid:69)(cid:82)(cid:73)(cid:79)(cid:68)(cid:83)(cid:0) (cid:13) (cid:36)(cid:69)(cid:70)(cid:69)(cid:82)(cid:82)(cid:69)(cid:68) (cid:84)(cid:65)(cid:88) (cid:65)(cid:83)(cid:83)(cid:69)(cid:84) (cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68)(cid:15)(cid:8)(cid:68)(cid:69)(cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68)(cid:9)(cid:0) (cid:0) (cid:41)(cid:78)(cid:67)(cid:79)(cid:77)(cid:69) (cid:84)(cid:65)(cid:88) (cid:8)(cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:83)(cid:69)(cid:9)(cid:15)(cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84) (cid:79)(cid:78) (cid:80)(cid:82)(cid:69)(cid:13)(cid:84)(cid:65)(cid:88) (cid:78)(cid:69)(cid:84) (cid:80)(cid:82)(cid:79)(cid:108)(cid:84)(cid:0) (cid:20)(cid:12)(cid:17)(cid:18)(cid:24)(cid:0) (cid:8)(cid:19)(cid:16)(cid:20)(cid:9) (cid:8)(cid:17)(cid:12)(cid:18)(cid:19)(cid:24)(cid:9)(cid:0) (cid:25)(cid:17) (cid:8)(cid:17)(cid:12)(cid:17)(cid:25)(cid:19)(cid:9)(cid:0) (cid:20)(cid:20)(cid:20)(cid:0) (cid:17)(cid:12)(cid:25)(cid:24)(cid:23)(cid:0) (cid:18)(cid:16)(cid:18)(cid:0) (cid:8)(cid:17)(cid:18)(cid:19)(cid:9)(cid:0) (cid:8)(cid:17)(cid:16)(cid:24)(cid:9)(cid:0) (cid:20)(cid:17)(cid:23)(cid:0) (cid:19)(cid:24)(cid:24)(cid:0) (cid:8)(cid:17)(cid:12)(cid:24)(cid:24)(cid:22)(cid:9) (cid:17)(cid:12)(cid:25)(cid:19)(cid:24) (cid:8)(cid:17)(cid:20)(cid:19)(cid:9) (cid:8)(cid:19)(cid:16)(cid:9) (cid:8)(cid:17)(cid:19)(cid:21)(cid:9) (cid:8)(cid:18)(cid:21)(cid:17)(cid:9) (cid:8)(cid:17)(cid:12)(cid:23)(cid:19)(cid:17)(cid:9) (cid:8)(cid:18)(cid:12)(cid:17)(cid:20)(cid:23)(cid:9) (cid:0) (cid:0) (c) Tax consolidation (cid:8)(cid:73)(cid:9) (cid:0) (cid:45)(cid:69)(cid:77)(cid:66)(cid:69)(cid:82)(cid:83) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:84)(cid:65)(cid:88) (cid:67)(cid:79)(cid:78)(cid:83)(cid:79)(cid:76)(cid:73)(cid:68)(cid:65)(cid:84)(cid:69)(cid:68) (cid:71)(cid:82)(cid:79)(cid:85)(cid:80) (cid:65)(cid:78)(cid:68) (cid:84)(cid:72)(cid:69) (cid:84)(cid:65)(cid:88) (cid:83)(cid:72)(cid:65)(cid:82)(cid:73)(cid:78)(cid:71) (cid:65)(cid:82)(cid:82)(cid:65)(cid:78)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84) (cid:0) (cid:47)(cid:82)(cid:66)(cid:73)(cid:84)(cid:65)(cid:76) (cid:35)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68) (cid:65)(cid:78)(cid:68) (cid:73)(cid:84)(cid:83) (cid:17)(cid:16)(cid:16)(cid:5) (cid:79)(cid:87)(cid:78)(cid:69)(cid:68) (cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65)(cid:78) (cid:82)(cid:69)(cid:83)(cid:73)(cid:68)(cid:69)(cid:78)(cid:84) (cid:83)(cid:85)(cid:66)(cid:83)(cid:73)(cid:68)(cid:73)(cid:65)(cid:82)(cid:73)(cid:69)(cid:83) (cid:70)(cid:79)(cid:82)(cid:77)(cid:69)(cid:68) (cid:65) (cid:84)(cid:65)(cid:88) (cid:67)(cid:79)(cid:78)(cid:83)(cid:79)(cid:76)(cid:73)(cid:68)(cid:65)(cid:84)(cid:69)(cid:68) (cid:71)(cid:82)(cid:79)(cid:85)(cid:80) (cid:87)(cid:73)(cid:84)(cid:72) (cid:69)(cid:70)(cid:70)(cid:69)(cid:67)(cid:84) (cid:70)(cid:82)(cid:79)(cid:77) (cid:17) (cid:42)(cid:85)(cid:76)(cid:89) (cid:18)(cid:16)(cid:16)(cid:18)(cid:14) (cid:47)(cid:82)(cid:66)(cid:73)(cid:84)(cid:65)(cid:76) (cid:35)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68) (cid:73)(cid:83) (cid:84)(cid:72)(cid:69) (cid:72)(cid:69)(cid:65)(cid:68) (cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:89) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:84)(cid:65)(cid:88) (cid:67)(cid:79)(cid:78)(cid:83)(cid:79)(cid:76)(cid:73)(cid:68)(cid:65)(cid:84)(cid:69)(cid:68) (cid:71)(cid:82)(cid:79)(cid:85)(cid:80)(cid:14) (cid:45)(cid:69)(cid:77)(cid:66)(cid:69)(cid:82)(cid:83) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:71)(cid:82)(cid:79)(cid:85)(cid:80) (cid:72)(cid:65)(cid:86)(cid:69) (cid:69)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:68) (cid:73)(cid:78)(cid:84)(cid:79) (cid:65) (cid:84)(cid:65)(cid:88) (cid:83)(cid:72)(cid:65)(cid:82)(cid:73)(cid:78)(cid:71) (cid:65)(cid:71)(cid:82)(cid:69)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84) (cid:84)(cid:72)(cid:65)(cid:84) (cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:69)(cid:83) (cid:70)(cid:79)(cid:82) (cid:84)(cid:72)(cid:69) (cid:65)(cid:76)(cid:76)(cid:79)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:73)(cid:78)(cid:67)(cid:79)(cid:77)(cid:69) (cid:84)(cid:65)(cid:88) (cid:76)(cid:73)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83) (cid:66)(cid:69)(cid:84)(cid:87)(cid:69)(cid:69)(cid:78) (cid:84)(cid:72)(cid:69) (cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83) (cid:83)(cid:72)(cid:79)(cid:85)(cid:76)(cid:68) (cid:84)(cid:72)(cid:69) (cid:72)(cid:69)(cid:65)(cid:68) (cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:89) (cid:68)(cid:69)(cid:70)(cid:65)(cid:85)(cid:76)(cid:84) (cid:79)(cid:78) (cid:73)(cid:84)(cid:83) (cid:84)(cid:65)(cid:88) (cid:80)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84) (cid:79)(cid:66)(cid:76)(cid:73)(cid:71)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:14) (cid:46)(cid:79) (cid:65)(cid:77)(cid:79)(cid:85)(cid:78)(cid:84)(cid:83) (cid:72)(cid:65)(cid:86)(cid:69) (cid:66)(cid:69)(cid:69)(cid:78) (cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68) (cid:73)(cid:78) (cid:84)(cid:72)(cid:69) (cid:108)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76) (cid:83)(cid:84)(cid:65)(cid:84)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83) (cid:73)(cid:78) (cid:82)(cid:69)(cid:83)(cid:80)(cid:69)(cid:67)(cid:84) (cid:79)(cid:70) (cid:84)(cid:72)(cid:73)(cid:83) (cid:65)(cid:71)(cid:82)(cid:69)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84) (cid:79)(cid:78) (cid:84)(cid:72)(cid:69) (cid:66)(cid:65)(cid:83)(cid:73)(cid:83) (cid:84)(cid:72)(cid:65)(cid:84) (cid:84)(cid:72)(cid:69) (cid:80)(cid:79)(cid:83)(cid:83)(cid:73)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89) (cid:79)(cid:70) (cid:68)(cid:69)(cid:70)(cid:65)(cid:85)(cid:76)(cid:84) (cid:73)(cid:83) (cid:82)(cid:69)(cid:77)(cid:79)(cid:84)(cid:69)(cid:14) 44 Annual Report 2010 Orbital 11. EARNINGS PER SHARE Basic earnings per share (cid:52)(cid:72)(cid:69) (cid:67)(cid:65)(cid:76)(cid:67)(cid:85)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:66)(cid:65)(cid:83)(cid:73)(cid:67) (cid:69)(cid:65)(cid:82)(cid:78)(cid:73)(cid:78)(cid:71)(cid:83) (cid:80)(cid:69)(cid:82) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:65)(cid:84) (cid:19)(cid:16) (cid:42)(cid:85)(cid:78)(cid:69) (cid:18)(cid:16)(cid:17)(cid:16) (cid:87)(cid:65)(cid:83) (cid:66)(cid:65)(cid:83)(cid:69)(cid:68) (cid:79)(cid:78) (cid:84)(cid:72)(cid:69) (cid:80)(cid:82)(cid:79)(cid:108)(cid:84)(cid:15)(cid:8)(cid:76)(cid:79)(cid:83)(cid:83)(cid:9) (cid:65)(cid:84)(cid:84)(cid:82)(cid:73)(cid:66)(cid:85)(cid:84)(cid:65)(cid:66)(cid:76)(cid:69) (cid:84)(cid:79) (cid:79)(cid:82)(cid:68)(cid:73)(cid:78)(cid:65)(cid:82)(cid:89) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:72)(cid:79)(cid:76)(cid:68)(cid:69)(cid:82)(cid:83) (cid:79)(cid:70) (cid:4)(cid:20)(cid:12)(cid:21)(cid:17)(cid:21)(cid:12)(cid:20)(cid:21)(cid:17) (cid:8)(cid:18)(cid:16)(cid:16)(cid:25)(cid:26) (cid:76)(cid:79)(cid:83)(cid:83) (cid:4)(cid:18)(cid:12)(cid:20)(cid:21)(cid:17)(cid:12)(cid:18)(cid:21)(cid:16)(cid:9) (cid:65)(cid:78)(cid:68) (cid:65) (cid:87)(cid:69)(cid:73)(cid:71)(cid:72)(cid:84)(cid:69)(cid:68) (cid:65)(cid:86)(cid:69)(cid:82)(cid:65)(cid:71)(cid:69) (cid:78)(cid:85)(cid:77)(cid:66)(cid:69)(cid:82) (cid:79)(cid:70) (cid:79)(cid:82)(cid:68)(cid:73)(cid:78)(cid:65)(cid:82)(cid:89) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83) (cid:79)(cid:85)(cid:84)(cid:83)(cid:84)(cid:65)(cid:78)(cid:68)(cid:73)(cid:78)(cid:71) (cid:68)(cid:85)(cid:82)(cid:73)(cid:78)(cid:71) (cid:84)(cid:72)(cid:69) (cid:108)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76) (cid:89)(cid:69)(cid:65)(cid:82) (cid:69)(cid:78)(cid:68)(cid:69)(cid:68) (cid:19)(cid:16) (cid:42)(cid:85)(cid:78)(cid:69) (cid:18)(cid:16)(cid:17)(cid:16) (cid:79)(cid:70) (cid:20)(cid:24)(cid:16)(cid:12)(cid:24)(cid:22)(cid:22)(cid:12)(cid:23)(cid:25)(cid:18) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83) (cid:8)(cid:18)(cid:16)(cid:16)(cid:25)(cid:26) (cid:20)(cid:23)(cid:23)(cid:12)(cid:21)(cid:22)(cid:19)(cid:12)(cid:23)(cid:25)(cid:18) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:9)(cid:12) (cid:67)(cid:65)(cid:76)(cid:67)(cid:85)(cid:76)(cid:65)(cid:84)(cid:69)(cid:68) (cid:65)(cid:83) (cid:70)(cid:79)(cid:76)(cid:76)(cid:79)(cid:87)(cid:83)(cid:26)(cid:0) (cid:0) (cid:0) (cid:35)(cid:47)(cid:46)(cid:51)(cid:47)(cid:44)(cid:41)(cid:36)(cid:33)(cid:52)(cid:37)(cid:36) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16) Proﬁt/(loss) attributable to ordinary shareholders (cid:20)(cid:12)(cid:21)(cid:17)(cid:21)(cid:12)(cid:20)(cid:21)(cid:17)(cid:0) (cid:8)(cid:18)(cid:12)(cid:20)(cid:21)(cid:17)(cid:12)(cid:18)(cid:21)(cid:16)(cid:9) Weighted average number of ordinary shares (cid:0) (cid:46)(cid:85)(cid:77)(cid:66)(cid:69)(cid:82)(cid:0) (cid:46)(cid:85)(cid:77)(cid:66)(cid:69)(cid:82) (cid:41)(cid:83)(cid:83)(cid:85)(cid:69)(cid:68) (cid:79)(cid:82)(cid:68)(cid:73)(cid:78)(cid:65)(cid:82)(cid:89) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83) (cid:65)(cid:84) (cid:17) (cid:42)(cid:85)(cid:76)(cid:89)(cid:0) (cid:37)(cid:70)(cid:70)(cid:69)(cid:67)(cid:84) (cid:79)(cid:70) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83) (cid:73)(cid:83)(cid:83)(cid:85)(cid:69)(cid:68) (cid:70)(cid:79)(cid:82) (cid:84)(cid:72)(cid:69) (cid:37)(cid:44)(cid:52)(cid:51)(cid:48)(cid:0) (cid:37)(cid:70)(cid:70)(cid:69)(cid:67)(cid:84) (cid:79)(cid:70) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83) (cid:73)(cid:83)(cid:83)(cid:85)(cid:69)(cid:68) (cid:70)(cid:79)(cid:82) (cid:84)(cid:72)(cid:69) (cid:37)(cid:51)(cid:48) (cid:46)(cid:79)(cid:14)(cid:17)(cid:0) (cid:55)(cid:69)(cid:73)(cid:71)(cid:72)(cid:84)(cid:69)(cid:68) (cid:65)(cid:86)(cid:69)(cid:82)(cid:65)(cid:71)(cid:69) (cid:78)(cid:85)(cid:77)(cid:66)(cid:69)(cid:82) (cid:79)(cid:70) (cid:79)(cid:82)(cid:68)(cid:73)(cid:78)(cid:65)(cid:82)(cid:89) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83) (cid:65)(cid:84) (cid:19)(cid:16) (cid:42)(cid:85)(cid:78)(cid:69)(cid:0) (cid:37)(cid:70)(cid:70)(cid:69)(cid:67)(cid:84) (cid:79)(cid:70) (cid:80)(cid:79)(cid:84)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76) (cid:68)(cid:73)(cid:76)(cid:85)(cid:84)(cid:73)(cid:86)(cid:69) (cid:79)(cid:82)(cid:68)(cid:73)(cid:78)(cid:65)(cid:82)(cid:89) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0) (cid:20)(cid:23)(cid:24)(cid:12)(cid:24)(cid:24)(cid:21)(cid:12)(cid:16)(cid:21)(cid:16)(cid:0) (cid:20)(cid:23)(cid:20)(cid:12)(cid:21)(cid:22)(cid:19)(cid:12)(cid:17)(cid:25)(cid:18) (cid:17)(cid:12)(cid:17)(cid:25)(cid:23)(cid:12)(cid:19)(cid:22)(cid:20)(cid:0) (cid:18)(cid:12)(cid:17)(cid:16)(cid:18)(cid:12)(cid:16)(cid:19)(cid:16) (cid:23)(cid:24)(cid:20)(cid:12)(cid:19)(cid:20)(cid:24)(cid:0) (cid:24)(cid:25)(cid:24)(cid:12)(cid:21)(cid:23)(cid:16) (cid:0) (cid:20)(cid:24)(cid:16)(cid:12)(cid:24)(cid:22)(cid:22)(cid:12)(cid:23)(cid:22)(cid:18)(cid:0) (cid:20)(cid:23)(cid:23)(cid:12)(cid:21)(cid:22)(cid:19)(cid:12)(cid:23)(cid:25)(cid:18) (cid:21)(cid:12)(cid:19)(cid:25)(cid:17)(cid:12)(cid:18)(cid:21)(cid:16)(cid:0) (cid:13) (cid:55)(cid:69)(cid:73)(cid:71)(cid:72)(cid:84)(cid:69)(cid:68) (cid:65)(cid:86)(cid:69)(cid:82)(cid:65)(cid:71)(cid:69) (cid:78)(cid:85)(cid:77)(cid:66)(cid:69)(cid:82) (cid:79)(cid:70) (cid:80)(cid:79)(cid:84)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76) (cid:68)(cid:73)(cid:76)(cid:85)(cid:84)(cid:73)(cid:86)(cid:69) (cid:79)(cid:82)(cid:68)(cid:73)(cid:78)(cid:65)(cid:82)(cid:89) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83) (cid:65)(cid:84) (cid:19)(cid:16) (cid:42)(cid:85)(cid:78)(cid:69)(cid:0) (cid:20)(cid:24)(cid:22)(cid:12)(cid:18)(cid:21)(cid:24)(cid:12)(cid:16)(cid:17)(cid:18)(cid:0) (cid:20)(cid:23)(cid:23)(cid:12)(cid:21)(cid:22)(cid:19)(cid:12)(cid:23)(cid:25)(cid:18) Earnings per share (cid:34)(cid:65)(cid:83)(cid:73)(cid:67) (cid:69)(cid:65)(cid:82)(cid:78)(cid:73)(cid:78)(cid:71)(cid:83) (cid:80)(cid:69)(cid:82) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:0) (cid:36)(cid:73)(cid:76)(cid:85)(cid:84)(cid:69)(cid:68) (cid:69)(cid:65)(cid:82)(cid:78)(cid:73)(cid:78)(cid:71)(cid:83) (cid:80)(cid:69)(cid:82) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:0) cents cents (cid:16)(cid:14)(cid:25)(cid:20)(cid:0) (cid:8)(cid:16)(cid:14)(cid:21)(cid:17)(cid:9) (cid:16)(cid:14)(cid:25)(cid:19)(cid:0) (cid:8)(cid:16)(cid:14)(cid:21)(cid:17)(cid:9) (cid:51)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83) (cid:71)(cid:82)(cid:65)(cid:78)(cid:84)(cid:69)(cid:68) (cid:84)(cid:79) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69)(cid:83) (cid:8)(cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:73)(cid:78)(cid:71) (cid:43)(cid:69)(cid:89) (cid:45)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84) (cid:48)(cid:69)(cid:82)(cid:83)(cid:79)(cid:78)(cid:78)(cid:69)(cid:76)(cid:9) (cid:65)(cid:83) (cid:68)(cid:69)(cid:83)(cid:67)(cid:82)(cid:73)(cid:66)(cid:69)(cid:68) (cid:73)(cid:78) (cid:78)(cid:79)(cid:84)(cid:69) (cid:19)(cid:21) (cid:65)(cid:82)(cid:69) (cid:67)(cid:79)(cid:78)(cid:83)(cid:73)(cid:68)(cid:69)(cid:82)(cid:69)(cid:68) (cid:84)(cid:79) (cid:66)(cid:69) (cid:80)(cid:79)(cid:84)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76) (cid:79)(cid:82)(cid:68)(cid:73)(cid:78)(cid:65)(cid:82)(cid:89) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83) (cid:65)(cid:78)(cid:68) (cid:72)(cid:65)(cid:86)(cid:69) (cid:66)(cid:69)(cid:69)(cid:78) (cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:69)(cid:68) (cid:73)(cid:78) (cid:84)(cid:72)(cid:69) (cid:68)(cid:69)(cid:84)(cid:69)(cid:82)(cid:77)(cid:73)(cid:78)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:68)(cid:73)(cid:76)(cid:85)(cid:84)(cid:69)(cid:68) (cid:69)(cid:65)(cid:82)(cid:78)(cid:73)(cid:78)(cid:71)(cid:83) (cid:80)(cid:69)(cid:82) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:84)(cid:79) (cid:84)(cid:72)(cid:69) (cid:69)(cid:88)(cid:84)(cid:69)(cid:78)(cid:84) (cid:84)(cid:72)(cid:69)(cid:89) (cid:65)(cid:82)(cid:69) (cid:68)(cid:73)(cid:76)(cid:85)(cid:84)(cid:73)(cid:86)(cid:69)(cid:14) (cid:52)(cid:72)(cid:69)(cid:83)(cid:69) (cid:80)(cid:79)(cid:84)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76) (cid:79)(cid:82)(cid:68)(cid:73)(cid:78)(cid:65)(cid:82)(cid:89) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83) (cid:72)(cid:65)(cid:86)(cid:69) (cid:78)(cid:79)(cid:84) (cid:66)(cid:69)(cid:69)(cid:78) (cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:69)(cid:68) (cid:73)(cid:78) (cid:84)(cid:72)(cid:69) (cid:68)(cid:69)(cid:84)(cid:69)(cid:82)(cid:77)(cid:73)(cid:78)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:66)(cid:65)(cid:83)(cid:73)(cid:67) (cid:69)(cid:65)(cid:82)(cid:78)(cid:73)(cid:78)(cid:71)(cid:83) (cid:80)(cid:69)(cid:82) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:14) (cid:41)(cid:78) (cid:84)(cid:72)(cid:69) (cid:67)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:84) (cid:89)(cid:69)(cid:65)(cid:82)(cid:12) (cid:21)(cid:12)(cid:19)(cid:25)(cid:17)(cid:12)(cid:18)(cid:21)(cid:16) (cid:80)(cid:79)(cid:84)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83) (cid:87)(cid:72)(cid:73)(cid:67)(cid:72) (cid:65)(cid:82)(cid:69) (cid:73)(cid:83)(cid:83)(cid:85)(cid:65)(cid:66)(cid:76)(cid:69) (cid:85)(cid:78)(cid:68)(cid:69)(cid:82) (cid:84)(cid:72)(cid:69) (cid:37)(cid:44)(cid:52)(cid:51)(cid:48) (cid:72)(cid:65)(cid:86)(cid:69) (cid:66)(cid:69)(cid:69)(cid:78) (cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:69)(cid:68) (cid:73)(cid:78) (cid:84)(cid:72)(cid:69) (cid:68)(cid:73)(cid:76)(cid:85)(cid:84)(cid:69)(cid:68) (cid:69)(cid:65)(cid:82)(cid:78)(cid:73)(cid:78)(cid:71)(cid:83) (cid:80)(cid:69)(cid:82) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:67)(cid:65)(cid:76)(cid:67)(cid:85)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:14) (cid:52)(cid:72)(cid:69) (cid:17)(cid:17)(cid:12)(cid:21)(cid:16)(cid:16)(cid:12)(cid:16)(cid:16)(cid:16) (cid:80)(cid:69)(cid:82)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:78)(cid:67)(cid:69) (cid:82)(cid:73)(cid:71)(cid:72)(cid:84)(cid:83) (cid:72)(cid:65)(cid:86)(cid:69) (cid:78)(cid:79)(cid:84) (cid:66)(cid:69)(cid:69)(cid:78) (cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:69)(cid:68) (cid:73)(cid:78) (cid:84)(cid:72)(cid:69) (cid:68)(cid:73)(cid:76)(cid:85)(cid:84)(cid:69)(cid:68) (cid:69)(cid:65)(cid:82)(cid:78)(cid:73)(cid:78)(cid:71)(cid:83) (cid:80)(cid:69)(cid:82) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:67)(cid:65)(cid:76)(cid:67)(cid:85)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:65)(cid:83) (cid:84)(cid:72)(cid:69)(cid:89) (cid:65)(cid:82)(cid:69) (cid:67)(cid:79)(cid:78)(cid:84)(cid:73)(cid:78)(cid:71)(cid:69)(cid:78)(cid:84) (cid:79)(cid:78) (cid:70)(cid:85)(cid:84)(cid:85)(cid:82)(cid:69) (cid:80)(cid:69)(cid:82)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:78)(cid:67)(cid:69)(cid:14) (cid:47)(cid:70) (cid:84)(cid:72)(cid:69) (cid:84)(cid:79)(cid:84)(cid:65)(cid:76) (cid:37)(cid:44)(cid:52)(cid:51)(cid:48) (cid:82)(cid:73)(cid:71)(cid:72)(cid:84)(cid:83) (cid:79)(cid:85)(cid:84)(cid:83)(cid:84)(cid:65)(cid:78)(cid:68)(cid:73)(cid:78)(cid:71)(cid:12) (cid:17)(cid:19)(cid:12)(cid:17)(cid:21)(cid:24)(cid:12)(cid:23)(cid:21)(cid:16) (cid:82)(cid:73)(cid:71)(cid:72)(cid:84)(cid:83)(cid:12) (cid:87)(cid:72)(cid:73)(cid:67)(cid:72) (cid:65)(cid:82)(cid:69) (cid:67)(cid:79)(cid:78)(cid:84)(cid:73)(cid:78)(cid:71)(cid:69)(cid:78)(cid:84) (cid:79)(cid:78) (cid:65)(cid:67)(cid:72)(cid:73)(cid:69)(cid:86)(cid:73)(cid:78)(cid:71) (cid:70)(cid:85)(cid:84)(cid:85)(cid:82)(cid:69) (cid:43)(cid:48)(cid:41)(cid:83)(cid:12) (cid:72)(cid:65)(cid:86)(cid:69) (cid:66)(cid:69)(cid:69)(cid:78) (cid:69)(cid:88)(cid:67)(cid:76)(cid:85)(cid:68)(cid:69)(cid:68) (cid:70)(cid:82)(cid:79)(cid:77) (cid:84)(cid:72)(cid:69) (cid:68)(cid:73)(cid:76)(cid:85)(cid:84)(cid:69)(cid:68) (cid:69)(cid:65)(cid:82)(cid:78)(cid:73)(cid:78)(cid:71)(cid:83) (cid:80)(cid:69)(cid:82) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:67)(cid:65)(cid:76)(cid:67)(cid:85)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:14) 12. CASH AND CASH EQUIVALENTS (cid:35)(cid:65)(cid:83)(cid:72) (cid:65)(cid:84) (cid:66)(cid:65)(cid:78)(cid:75)(cid:0) (cid:35)(cid:65)(cid:83)(cid:72) (cid:65)(cid:84) (cid:66)(cid:65)(cid:78)(cid:75) (cid:13) (cid:53)(cid:51) (cid:68)(cid:79)(cid:76)(cid:76)(cid:65)(cid:82)(cid:83)(cid:0) (cid:35)(cid:65)(cid:83)(cid:72) (cid:65)(cid:84) (cid:66)(cid:65)(cid:78)(cid:75) (cid:13) (cid:37)(cid:85)(cid:82)(cid:79)(cid:80)(cid:69)(cid:65)(cid:78) (cid:67)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:67)(cid:89) (cid:85)(cid:78)(cid:73)(cid:84)(cid:83)(cid:0) (cid:33)(cid:84) (cid:67)(cid:65)(cid:76)(cid:76) (cid:68)(cid:69)(cid:80)(cid:79)(cid:83)(cid:73)(cid:84)(cid:83) (cid:13) (cid:108)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76) (cid:73)(cid:78)(cid:83)(cid:84)(cid:73)(cid:84)(cid:85)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0) (cid:34)(cid:65)(cid:78)(cid:75) (cid:66)(cid:73)(cid:76)(cid:76)(cid:83)(cid:0) (cid:33)(cid:76)(cid:76) (cid:66)(cid:65)(cid:78)(cid:75) (cid:66)(cid:73)(cid:76)(cid:76)(cid:83) (cid:65)(cid:82)(cid:69) (cid:69)(cid:78)(cid:68)(cid:79)(cid:82)(cid:83)(cid:69)(cid:68) (cid:66)(cid:89) (cid:84)(cid:72)(cid:69) (cid:39)(cid:82)(cid:79)(cid:85)(cid:80)(cid:7)(cid:83) (cid:66)(cid:65)(cid:78)(cid:75)(cid:69)(cid:82) (cid:65)(cid:78)(cid:68) (cid:65)(cid:82)(cid:69) (cid:70)(cid:79)(cid:82) (cid:84)(cid:69)(cid:82)(cid:77)(cid:83) (cid:79)(cid:70) (cid:78)(cid:79) (cid:77)(cid:79)(cid:82)(cid:69) (cid:84)(cid:72)(cid:65)(cid:78) (cid:25)(cid:16) (cid:68)(cid:65)(cid:89)(cid:83)(cid:14) (cid:35)(cid:47)(cid:46)(cid:51)(cid:47)(cid:44)(cid:41)(cid:36)(cid:33)(cid:52)(cid:37)(cid:36) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16) (cid:17)(cid:20)(cid:24)(cid:0) (cid:17)(cid:25)(cid:21)(cid:0) (cid:18)(cid:19)(cid:0) (cid:19)(cid:12)(cid:18)(cid:20)(cid:18)(cid:0) (cid:13)(cid:0) (cid:19)(cid:12)(cid:22)(cid:16)(cid:24)(cid:0) (cid:18)(cid:18)(cid:16) (cid:17)(cid:23)(cid:18) (cid:24)(cid:18) (cid:19)(cid:12)(cid:22)(cid:21)(cid:23) (cid:18)(cid:12)(cid:20)(cid:25)(cid:18) (cid:22)(cid:12)(cid:22)(cid:18)(cid:19) Orbital 2010 Annual Report 45 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2010 13. OTHER FINANCIAL ASSETS (cid:51)(cid:72)(cid:79)(cid:82)(cid:84) (cid:84)(cid:69)(cid:82)(cid:77) (cid:68)(cid:69)(cid:80)(cid:79)(cid:83)(cid:73)(cid:84)(cid:83) (cid:13) (cid:108)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76) (cid:73)(cid:78)(cid:83)(cid:84)(cid:73)(cid:84)(cid:85)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0) (cid:35)(cid:47)(cid:46)(cid:51)(cid:47)(cid:44)(cid:41)(cid:36)(cid:33)(cid:52)(cid:37)(cid:36) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16) (cid:13) (cid:13) (cid:19)(cid:12)(cid:21)(cid:16)(cid:16) (cid:19)(cid:12)(cid:21)(cid:16)(cid:16) (cid:51)(cid:72)(cid:79)(cid:82)(cid:84) (cid:84)(cid:69)(cid:82)(cid:77) (cid:68)(cid:69)(cid:80)(cid:79)(cid:83)(cid:73)(cid:84)(cid:83) (cid:82)(cid:69)(cid:80)(cid:82)(cid:69)(cid:83)(cid:69)(cid:78)(cid:84)(cid:83) (cid:84)(cid:69)(cid:82)(cid:77) (cid:68)(cid:69)(cid:80)(cid:79)(cid:83)(cid:73)(cid:84)(cid:83) (cid:87)(cid:73)(cid:84)(cid:72) (cid:108)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76) (cid:73)(cid:78)(cid:83)(cid:84)(cid:73)(cid:84)(cid:85)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83) (cid:70)(cid:79)(cid:82) (cid:80)(cid:69)(cid:82)(cid:73)(cid:79)(cid:68)(cid:83) (cid:71)(cid:82)(cid:69)(cid:65)(cid:84)(cid:69)(cid:82) (cid:84)(cid:72)(cid:65)(cid:78) (cid:25)(cid:16) (cid:68)(cid:65)(cid:89)(cid:83) (cid:65)(cid:78)(cid:68) (cid:76)(cid:69)(cid:83)(cid:83) (cid:84)(cid:72)(cid:65)(cid:78) (cid:19)(cid:22)(cid:21) (cid:68)(cid:65)(cid:89)(cid:83) (cid:69)(cid:65)(cid:82)(cid:78)(cid:73)(cid:78)(cid:71) (cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:65)(cid:84) (cid:84)(cid:72)(cid:69) (cid:82)(cid:69)(cid:83)(cid:80)(cid:69)(cid:67)(cid:84)(cid:73)(cid:86)(cid:69) (cid:84)(cid:69)(cid:82)(cid:77) (cid:68)(cid:69)(cid:80)(cid:79)(cid:83)(cid:73)(cid:84) (cid:82)(cid:65)(cid:84)(cid:69)(cid:83) (cid:65)(cid:84) (cid:84)(cid:73)(cid:77)(cid:69) (cid:79)(cid:70) (cid:76)(cid:79)(cid:68)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:14) (cid:36)(cid:85)(cid:69) (cid:84)(cid:79) (cid:84)(cid:72)(cid:69) (cid:83)(cid:72)(cid:79)(cid:82)(cid:84) (cid:84)(cid:69)(cid:82)(cid:77) (cid:78)(cid:65)(cid:84)(cid:85)(cid:82)(cid:69) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:68)(cid:69)(cid:80)(cid:79)(cid:83)(cid:73)(cid:84)(cid:83) (cid:67)(cid:65)(cid:82)(cid:82)(cid:89)(cid:73)(cid:78)(cid:71) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69) (cid:65)(cid:80)(cid:80)(cid:82)(cid:79)(cid:88)(cid:73)(cid:77)(cid:65)(cid:84)(cid:69)(cid:83) (cid:70)(cid:65)(cid:73)(cid:82) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69)(cid:14) (cid:51)(cid:72)(cid:79)(cid:82)(cid:84) (cid:84)(cid:69)(cid:82)(cid:77) (cid:68)(cid:69)(cid:80)(cid:79)(cid:83)(cid:73)(cid:84)(cid:83) (cid:65)(cid:82)(cid:69) (cid:79)(cid:78)(cid:76)(cid:89) (cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:69)(cid:68) (cid:87)(cid:73)(cid:84)(cid:72) (cid:65) (cid:77)(cid:65)(cid:74)(cid:79)(cid:82) (cid:108)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76) (cid:73)(cid:78)(cid:83)(cid:84)(cid:73)(cid:84)(cid:85)(cid:84)(cid:73)(cid:79)(cid:78) (cid:84)(cid:79) (cid:77)(cid:73)(cid:78)(cid:73)(cid:77)(cid:73)(cid:83)(cid:69) (cid:84)(cid:72)(cid:69) (cid:82)(cid:73)(cid:83)(cid:75) (cid:79)(cid:70) (cid:68)(cid:69)(cid:70)(cid:65)(cid:85)(cid:76)(cid:84) (cid:79)(cid:70) (cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:69)(cid:82)(cid:80)(cid:65)(cid:82)(cid:84)(cid:73)(cid:69)(cid:83)(cid:14) 14. TRADE AND OTHER RECEIVABLES Current (cid:52)(cid:82)(cid:65)(cid:68)(cid:69) (cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:65)(cid:66)(cid:76)(cid:69)(cid:83)(cid:0) (cid:33)(cid:76)(cid:76)(cid:79)(cid:87)(cid:65)(cid:78)(cid:67)(cid:69) (cid:70)(cid:79)(cid:82) (cid:73)(cid:77)(cid:80)(cid:65)(cid:73)(cid:82)(cid:77)(cid:69)(cid:78)(cid:84) (cid:76)(cid:79)(cid:83)(cid:83) (cid:8)(cid:65)(cid:9)(cid:0) (cid:33)(cid:67)(cid:67)(cid:82)(cid:85)(cid:69)(cid:68) (cid:82)(cid:79)(cid:89)(cid:65)(cid:76)(cid:84)(cid:73)(cid:69)(cid:83)(cid:0) (cid:33)(cid:67)(cid:67)(cid:82)(cid:85)(cid:69)(cid:68) (cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84)(cid:0) (cid:52)(cid:65)(cid:88)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:73)(cid:78)(cid:83)(cid:84)(cid:65)(cid:76)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0) (cid:47)(cid:84)(cid:72)(cid:69)(cid:82) (cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:65)(cid:66)(cid:76)(cid:69)(cid:83)(cid:0) (cid:48)(cid:82)(cid:69)(cid:80)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0) (a) Allowance for impairment loss (cid:20)(cid:12)(cid:17)(cid:19)(cid:24) (cid:8)(cid:17)(cid:17)(cid:22)(cid:9)(cid:0) (cid:20)(cid:12)(cid:16)(cid:18)(cid:18) (cid:23)(cid:19)(cid:20) (cid:13) (cid:17)(cid:20)(cid:17) (cid:23)(cid:17) (cid:17)(cid:17)(cid:22) (cid:21)(cid:12)(cid:16)(cid:24)(cid:20) (cid:20)(cid:12)(cid:23)(cid:23)(cid:23) (cid:8)(cid:18)(cid:19)(cid:16)(cid:9) (cid:20)(cid:12)(cid:21)(cid:20)(cid:23) (cid:19)(cid:20)(cid:20) (cid:17)(cid:17) (cid:13) (cid:22)(cid:25) (cid:17)(cid:16)(cid:25) (cid:21)(cid:12)(cid:16)(cid:24)(cid:16) (cid:52)(cid:82)(cid:65)(cid:68)(cid:69) (cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:65)(cid:66)(cid:76)(cid:69)(cid:83) (cid:65)(cid:82)(cid:69) (cid:78)(cid:79)(cid:78)(cid:13)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:66)(cid:69)(cid:65)(cid:82)(cid:73)(cid:78)(cid:71) (cid:65)(cid:78)(cid:68) (cid:65)(cid:82)(cid:69) (cid:71)(cid:69)(cid:78)(cid:69)(cid:82)(cid:65)(cid:76)(cid:76)(cid:89) (cid:79)(cid:78) (cid:19)(cid:16)(cid:13)(cid:22)(cid:16) (cid:68)(cid:65)(cid:89) (cid:84)(cid:69)(cid:82)(cid:77)(cid:83)(cid:14) (cid:33)(cid:78) (cid:65)(cid:76)(cid:76)(cid:79)(cid:87)(cid:65)(cid:78)(cid:67)(cid:69) (cid:70)(cid:79)(cid:82) (cid:73)(cid:77)(cid:80)(cid:65)(cid:73)(cid:82)(cid:77)(cid:69)(cid:78)(cid:84) (cid:76)(cid:79)(cid:83)(cid:83) (cid:73)(cid:83) (cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68) (cid:87)(cid:72)(cid:69)(cid:78) (cid:84)(cid:72)(cid:69)(cid:82)(cid:69) (cid:73)(cid:83) (cid:79)(cid:66)(cid:74)(cid:69)(cid:67)(cid:84)(cid:73)(cid:86)(cid:69) (cid:69)(cid:86)(cid:73)(cid:68)(cid:69)(cid:78)(cid:67)(cid:69) (cid:84)(cid:72)(cid:65)(cid:84) (cid:65)(cid:78) (cid:73)(cid:78)(cid:68)(cid:73)(cid:86)(cid:73)(cid:68)(cid:85)(cid:65)(cid:76) (cid:84)(cid:82)(cid:65)(cid:68)(cid:69) (cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:65)(cid:66)(cid:76)(cid:69) (cid:73)(cid:83) (cid:73)(cid:77)(cid:80)(cid:65)(cid:73)(cid:82)(cid:69)(cid:68)(cid:14) (cid:33)(cid:78) (cid:73)(cid:77)(cid:80)(cid:65)(cid:73)(cid:82)(cid:77)(cid:69)(cid:78)(cid:84) (cid:65)(cid:76)(cid:76)(cid:79)(cid:87)(cid:65)(cid:78)(cid:67)(cid:69) (cid:65)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84) (cid:79)(cid:70) (cid:4)(cid:17)(cid:17)(cid:22)(cid:12)(cid:16)(cid:16)(cid:16) (cid:8)(cid:18)(cid:16)(cid:16)(cid:25)(cid:26) (cid:4)(cid:18)(cid:19)(cid:16)(cid:12)(cid:16)(cid:16)(cid:16)(cid:9) (cid:72)(cid:65)(cid:83) (cid:66)(cid:69)(cid:69)(cid:78) (cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68) (cid:66)(cid:89) (cid:84)(cid:72)(cid:69) (cid:39)(cid:82)(cid:79)(cid:85)(cid:80) (cid:65)(cid:84) (cid:66)(cid:65)(cid:76)(cid:65)(cid:78)(cid:67)(cid:69) (cid:68)(cid:65)(cid:84)(cid:69)(cid:14) (cid:45)(cid:79)(cid:86)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84) (cid:73)(cid:78) (cid:84)(cid:72)(cid:73)(cid:83) (cid:65)(cid:76)(cid:76)(cid:79)(cid:87)(cid:65)(cid:78)(cid:67)(cid:69) (cid:65)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84) (cid:72)(cid:65)(cid:83) (cid:66)(cid:69)(cid:69)(cid:78) (cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:69)(cid:68) (cid:73)(cid:78) (cid:84)(cid:72)(cid:69) (cid:79)(cid:84)(cid:72)(cid:69)(cid:82) (cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:83)(cid:69)(cid:83) (cid:73)(cid:84)(cid:69)(cid:77)(cid:14) (cid:45)(cid:79)(cid:86)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83) (cid:73)(cid:78) (cid:84)(cid:72)(cid:69) (cid:65)(cid:76)(cid:76)(cid:79)(cid:87)(cid:65)(cid:78)(cid:67)(cid:69) (cid:70)(cid:79)(cid:82) (cid:73)(cid:77)(cid:80)(cid:65)(cid:73)(cid:82)(cid:77)(cid:69)(cid:78)(cid:84) (cid:76)(cid:79)(cid:83)(cid:83) (cid:87)(cid:69)(cid:82)(cid:69) (cid:65)(cid:83) (cid:70)(cid:79)(cid:76)(cid:76)(cid:79)(cid:87)(cid:83)(cid:26) (cid:33)(cid:84) (cid:17) (cid:42)(cid:85)(cid:76)(cid:89) (cid:55)(cid:82)(cid:73)(cid:84)(cid:69)(cid:13)(cid:66)(cid:65)(cid:67)(cid:75)(cid:15)(cid:8)(cid:67)(cid:72)(cid:65)(cid:82)(cid:71)(cid:69)(cid:9) (cid:70)(cid:79)(cid:82) (cid:84)(cid:72)(cid:69) (cid:89)(cid:69)(cid:65)(cid:82)(cid:0) (cid:33)(cid:77)(cid:79)(cid:85)(cid:78)(cid:84)(cid:83) (cid:87)(cid:82)(cid:73)(cid:84)(cid:84)(cid:69)(cid:78) (cid:79)(cid:70)(cid:70)(cid:0) (cid:33)(cid:84) (cid:19)(cid:16) (cid:42)(cid:85)(cid:78)(cid:69) (cid:33)(cid:84) (cid:19)(cid:16) (cid:42)(cid:85)(cid:78)(cid:69)(cid:12) (cid:84)(cid:72)(cid:69) (cid:65)(cid:71)(cid:69)(cid:73)(cid:78)(cid:71) (cid:65)(cid:78)(cid:65)(cid:76)(cid:89)(cid:83)(cid:73)(cid:83) (cid:79)(cid:70) (cid:84)(cid:82)(cid:65)(cid:68)(cid:69) (cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:65)(cid:66)(cid:76)(cid:69)(cid:83) (cid:73)(cid:83) (cid:65)(cid:83) (cid:70)(cid:79)(cid:76)(cid:76)(cid:79)(cid:87)(cid:83)(cid:26) (cid:8)(cid:18)(cid:19)(cid:16)(cid:9)(cid:0) (cid:17)(cid:17)(cid:20) (cid:13) (cid:8)(cid:17)(cid:17)(cid:22)(cid:9)(cid:0) (cid:8)(cid:20)(cid:18)(cid:24)(cid:9) (cid:8)(cid:17)(cid:23)(cid:20)(cid:9) (cid:19)(cid:23)(cid:18) (cid:8)(cid:18)(cid:19)(cid:16)(cid:9) (cid:0) Total (cid:16)(cid:13)(cid:19)(cid:16)(cid:0) days (cid:19)(cid:17)(cid:13)(cid:22)(cid:16)(cid:0) days (cid:0) (cid:22)(cid:17)(cid:13)(cid:25)(cid:16)(cid:0) days (cid:48)(cid:36)(cid:46)(cid:41)(cid:10)(cid:0) (cid:11)(cid:25)(cid:17)(cid:0) days (cid:48)(cid:36)(cid:46)(cid:41)(cid:10)(cid:0) (cid:11)(cid:25)(cid:17) days (cid:35)(cid:41)(cid:10) (cid:20)(cid:12)(cid:17)(cid:19)(cid:24) (cid:18)(cid:12)(cid:20)(cid:25)(cid:20) (cid:17)(cid:12)(cid:16)(cid:16)(cid:25) (cid:20)(cid:12)(cid:23)(cid:23)(cid:23) (cid:19)(cid:12)(cid:20)(cid:18)(cid:17) (cid:22)(cid:16)(cid:25) (cid:20)(cid:17)(cid:25) (cid:19)(cid:24) (cid:17)(cid:16)(cid:16) (cid:20)(cid:23)(cid:25) (cid:17)(cid:17)(cid:22) (cid:18)(cid:19)(cid:16) (cid:18)(cid:16)(cid:17)(cid:16) (cid:35)(cid:79)(cid:78)(cid:83)(cid:79)(cid:76)(cid:73)(cid:68)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25) (cid:35)(cid:79)(cid:78)(cid:83)(cid:79)(cid:76)(cid:73)(cid:68)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0) (cid:10)(cid:0) (cid:48)(cid:65)(cid:83)(cid:84) (cid:68)(cid:85)(cid:69) (cid:78)(cid:79)(cid:84) (cid:73)(cid:77)(cid:80)(cid:65)(cid:73)(cid:82)(cid:69)(cid:68) (cid:8)(cid:64)(cid:48)(cid:36)(cid:46)(cid:41)(cid:7)(cid:9) (cid:0) (cid:35)(cid:79)(cid:78)(cid:83)(cid:73)(cid:68)(cid:69)(cid:82)(cid:69)(cid:68) (cid:73)(cid:77)(cid:80)(cid:65)(cid:73)(cid:82)(cid:69)(cid:68) (cid:8)(cid:64)(cid:35)(cid:41)(cid:7)(cid:9) (cid:50)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:65)(cid:66)(cid:76)(cid:69)(cid:83) (cid:80)(cid:65)(cid:83)(cid:84) (cid:68)(cid:85)(cid:69) (cid:66)(cid:85)(cid:84) (cid:78)(cid:79)(cid:84) (cid:67)(cid:79)(cid:78)(cid:83)(cid:73)(cid:68)(cid:69)(cid:82)(cid:69)(cid:68) (cid:73)(cid:77)(cid:80)(cid:65)(cid:73)(cid:82)(cid:69)(cid:68) (cid:65)(cid:82)(cid:69) (cid:4)(cid:21)(cid:17)(cid:25)(cid:12)(cid:16)(cid:16)(cid:16) (cid:8)(cid:18)(cid:16)(cid:16)(cid:25)(cid:26)(cid:4)(cid:21)(cid:17)(cid:23)(cid:12)(cid:16)(cid:16)(cid:16)(cid:9)(cid:14) (cid:48)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84) (cid:84)(cid:69)(cid:82)(cid:77)(cid:83) (cid:79)(cid:78) (cid:84)(cid:72)(cid:69)(cid:83)(cid:69) (cid:65)(cid:77)(cid:79)(cid:85)(cid:78)(cid:84)(cid:83) (cid:72)(cid:65)(cid:86)(cid:69) (cid:78)(cid:79)(cid:84) (cid:66)(cid:69)(cid:69)(cid:78) (cid:82)(cid:69)(cid:13)(cid:78)(cid:69)(cid:71)(cid:79)(cid:84)(cid:73)(cid:65)(cid:84)(cid:69)(cid:68)(cid:14) (cid:45)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84) (cid:72)(cid:65)(cid:83) (cid:66)(cid:69)(cid:69)(cid:78) (cid:73)(cid:78) (cid:67)(cid:79)(cid:78)(cid:84)(cid:65)(cid:67)(cid:84) (cid:87)(cid:73)(cid:84)(cid:72) (cid:69)(cid:65)(cid:67)(cid:72) (cid:82)(cid:69)(cid:76)(cid:69)(cid:86)(cid:65)(cid:78)(cid:84) (cid:68)(cid:69)(cid:66)(cid:84)(cid:79)(cid:82) (cid:65)(cid:78)(cid:68) (cid:73)(cid:83) (cid:83)(cid:65)(cid:84)(cid:73)(cid:83)(cid:108)(cid:69)(cid:68) (cid:84)(cid:72)(cid:65)(cid:84) (cid:80)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84) (cid:87)(cid:73)(cid:76)(cid:76) (cid:66)(cid:69) (cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:69)(cid:68) (cid:73)(cid:78) (cid:70)(cid:85)(cid:76)(cid:76)(cid:14) (cid:47)(cid:84)(cid:72)(cid:69)(cid:82) (cid:66)(cid:65)(cid:76)(cid:65)(cid:78)(cid:67)(cid:69)(cid:83) (cid:87)(cid:73)(cid:84)(cid:72)(cid:73)(cid:78) (cid:84)(cid:82)(cid:65)(cid:68)(cid:69) (cid:65)(cid:78)(cid:68) (cid:79)(cid:84)(cid:72)(cid:69)(cid:82) (cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:65)(cid:66)(cid:76)(cid:69)(cid:83) (cid:68)(cid:79) (cid:78)(cid:79)(cid:84) (cid:67)(cid:79)(cid:78)(cid:84)(cid:65)(cid:73)(cid:78) (cid:73)(cid:77)(cid:80)(cid:65)(cid:73)(cid:82)(cid:69)(cid:68) (cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83) (cid:65)(cid:78)(cid:68) (cid:65)(cid:82)(cid:69) (cid:78)(cid:79)(cid:84) (cid:80)(cid:65)(cid:83)(cid:84) (cid:68)(cid:85)(cid:69)(cid:14) (cid:41)(cid:84) (cid:73)(cid:83) (cid:69)(cid:88)(cid:80)(cid:69)(cid:67)(cid:84)(cid:69)(cid:68) (cid:84)(cid:72)(cid:65)(cid:84) (cid:84)(cid:72)(cid:69)(cid:83)(cid:69) (cid:79)(cid:84)(cid:72)(cid:69)(cid:82) (cid:66)(cid:65)(cid:76)(cid:65)(cid:78)(cid:67)(cid:69)(cid:83) (cid:87)(cid:73)(cid:76)(cid:76) (cid:66)(cid:69) (cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:69)(cid:68) (cid:87)(cid:72)(cid:69)(cid:78) (cid:68)(cid:85)(cid:69)(cid:14) 46 Annual Report 2010 Orbital 14. TRADE AND OTHER RECEIVABLES (continued) (b) Fair value and credit risk (cid:36)(cid:85)(cid:69) (cid:84)(cid:79) (cid:84)(cid:72)(cid:69) (cid:83)(cid:72)(cid:79)(cid:82)(cid:84) (cid:84)(cid:69)(cid:82)(cid:77) (cid:78)(cid:65)(cid:84)(cid:85)(cid:82)(cid:69) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69)(cid:83)(cid:69) (cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:65)(cid:66)(cid:76)(cid:69)(cid:83)(cid:12) (cid:84)(cid:72)(cid:69)(cid:73)(cid:82) (cid:67)(cid:65)(cid:82)(cid:82)(cid:89)(cid:73)(cid:78)(cid:71) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69) (cid:73)(cid:83) (cid:65)(cid:83)(cid:83)(cid:85)(cid:77)(cid:69)(cid:68) (cid:84)(cid:79) (cid:65)(cid:80)(cid:80)(cid:82)(cid:79)(cid:88)(cid:73)(cid:77)(cid:65)(cid:84)(cid:69) (cid:70)(cid:65)(cid:73)(cid:82) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69)(cid:14) (cid:52)(cid:72)(cid:69) (cid:77)(cid:65)(cid:88)(cid:73)(cid:77)(cid:85)(cid:77) (cid:69)(cid:88)(cid:80)(cid:79)(cid:83)(cid:85)(cid:82)(cid:69) (cid:84)(cid:79) (cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84) (cid:82)(cid:73)(cid:83)(cid:75) (cid:73)(cid:83) (cid:84)(cid:72)(cid:69) (cid:70)(cid:65)(cid:73)(cid:82) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69) (cid:79)(cid:70) (cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:65)(cid:66)(cid:76)(cid:69)(cid:83)(cid:14) (cid:35)(cid:79)(cid:76)(cid:76)(cid:65)(cid:84)(cid:69)(cid:82)(cid:65)(cid:76) (cid:73)(cid:83) (cid:78)(cid:79)(cid:84) (cid:72)(cid:69)(cid:76)(cid:68) (cid:65)(cid:83) (cid:83)(cid:69)(cid:67)(cid:85)(cid:82)(cid:73)(cid:84)(cid:89)(cid:14) (c) Foreign exchange and interest rate risk (cid:36)(cid:69)(cid:84)(cid:65)(cid:73)(cid:76) (cid:82)(cid:69)(cid:71)(cid:65)(cid:82)(cid:68)(cid:73)(cid:78)(cid:71) (cid:70)(cid:79)(cid:82)(cid:69)(cid:73)(cid:71)(cid:78) (cid:69)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69) (cid:65)(cid:78)(cid:68) (cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:82)(cid:65)(cid:84)(cid:69) (cid:82)(cid:73)(cid:83)(cid:75) (cid:69)(cid:88)(cid:80)(cid:79)(cid:83)(cid:85)(cid:82)(cid:69) (cid:73)(cid:83) (cid:68)(cid:73)(cid:83)(cid:67)(cid:76)(cid:79)(cid:83)(cid:69)(cid:68) (cid:73)(cid:78) (cid:78)(cid:79)(cid:84)(cid:69) (cid:20)(cid:14) (cid:35)(cid:47)(cid:46)(cid:51)(cid:47)(cid:44)(cid:41)(cid:36)(cid:33)(cid:52)(cid:37)(cid:36) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16) 15. INVENTORIES (cid:45)(cid:65)(cid:84)(cid:69)(cid:82)(cid:73)(cid:65)(cid:76)(cid:83) (cid:65)(cid:78)(cid:68) (cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78) (cid:83)(cid:85)(cid:80)(cid:80)(cid:76)(cid:73)(cid:69)(cid:83) (cid:13) (cid:65)(cid:84) (cid:76)(cid:79)(cid:87)(cid:69)(cid:82) (cid:79)(cid:70) (cid:67)(cid:79)(cid:83)(cid:84) (cid:65)(cid:78)(cid:68) (cid:78)(cid:69)(cid:84) (cid:82)(cid:69)(cid:65)(cid:76)(cid:73)(cid:83)(cid:65)(cid:66)(cid:76)(cid:69) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69)(cid:0) (cid:19)(cid:12)(cid:23)(cid:18)(cid:18) (cid:19)(cid:12)(cid:16)(cid:24)(cid:20) (a) Inventory expense (cid:41)(cid:78)(cid:86)(cid:69)(cid:78)(cid:84)(cid:79)(cid:82)(cid:73)(cid:69)(cid:83) (cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68) (cid:65)(cid:83) (cid:65)(cid:78) (cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:83)(cid:69) (cid:70)(cid:79)(cid:82) (cid:84)(cid:72)(cid:69) (cid:89)(cid:69)(cid:65)(cid:82) (cid:69)(cid:78)(cid:68)(cid:69)(cid:68) (cid:19)(cid:16) (cid:42)(cid:85)(cid:78)(cid:69) (cid:18)(cid:16)(cid:17)(cid:16) (cid:84)(cid:79)(cid:84)(cid:65)(cid:76)(cid:76)(cid:69)(cid:68) (cid:4)(cid:20)(cid:12)(cid:22)(cid:16)(cid:23)(cid:12)(cid:16)(cid:16)(cid:16) (cid:8)(cid:18)(cid:16)(cid:16)(cid:25)(cid:26) (cid:4)(cid:20)(cid:12)(cid:24)(cid:25)(cid:23)(cid:12)(cid:16)(cid:16)(cid:16)(cid:9) (cid:70)(cid:79)(cid:82) (cid:84)(cid:72)(cid:69) (cid:39)(cid:82)(cid:79)(cid:85)(cid:80)(cid:14) (cid:52)(cid:72)(cid:73)(cid:83) (cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:83)(cid:69) (cid:72)(cid:65)(cid:83) (cid:66)(cid:69)(cid:69)(cid:78) (cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:69)(cid:68) (cid:73)(cid:78) (cid:84)(cid:72)(cid:69) (cid:41)(cid:78)(cid:67)(cid:79)(cid:77)(cid:69) (cid:51)(cid:84)(cid:65)(cid:84)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84) (cid:65)(cid:83) (cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:83) (cid:73)(cid:78) (cid:73)(cid:78)(cid:86)(cid:69)(cid:78)(cid:84)(cid:79)(cid:82)(cid:73)(cid:69)(cid:83) (cid:65)(cid:78)(cid:68) (cid:82)(cid:65)(cid:87) (cid:77)(cid:65)(cid:84)(cid:69)(cid:82)(cid:73)(cid:65)(cid:76)(cid:83) (cid:65)(cid:78)(cid:68) (cid:67)(cid:79)(cid:78)(cid:83)(cid:85)(cid:77)(cid:65)(cid:66)(cid:76)(cid:69)(cid:83) (cid:85)(cid:83)(cid:69)(cid:68)(cid:14) 16. INVESTMENT IN ASSOCIATE (a) Interest in Synerject LLC (cid:47)(cid:78) (cid:19)(cid:17) (cid:45)(cid:65)(cid:82)(cid:67)(cid:72) (cid:18)(cid:16)(cid:16)(cid:25) (cid:84)(cid:72)(cid:69) (cid:39)(cid:82)(cid:79)(cid:85)(cid:80) (cid:83)(cid:79)(cid:76)(cid:68) (cid:65)(cid:78) (cid:24)(cid:5) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:79)(cid:70) (cid:51)(cid:89)(cid:78)(cid:69)(cid:82)(cid:74)(cid:69)(cid:67)(cid:84) (cid:44)(cid:44)(cid:35) (cid:84)(cid:79) (cid:35)(cid:79)(cid:78)(cid:84)(cid:73)(cid:78)(cid:69)(cid:78)(cid:84)(cid:65)(cid:76) (cid:35)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:14) (cid:52)(cid:72)(cid:69) (cid:83)(cid:65)(cid:76)(cid:69) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:84)(cid:79) (cid:35)(cid:79)(cid:78)(cid:84)(cid:73)(cid:78)(cid:69)(cid:78)(cid:84)(cid:65)(cid:76) (cid:35)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:82)(cid:69)(cid:83)(cid:85)(cid:76)(cid:84)(cid:69)(cid:68) (cid:73)(cid:78) (cid:65) (cid:76)(cid:79)(cid:83)(cid:83) (cid:79)(cid:70) (cid:74)(cid:79)(cid:73)(cid:78)(cid:84) (cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:79)(cid:76) (cid:79)(cid:70) (cid:51)(cid:89)(cid:78)(cid:69)(cid:82)(cid:74)(cid:69)(cid:67)(cid:84)(cid:12) (cid:65)(cid:83) (cid:83)(cid:85)(cid:67)(cid:72) (cid:84)(cid:72)(cid:69) (cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84) (cid:73)(cid:83) (cid:78)(cid:79)(cid:87) (cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68) (cid:65)(cid:78)(cid:68) (cid:68)(cid:73)(cid:83)(cid:67)(cid:76)(cid:79)(cid:83)(cid:69)(cid:68) (cid:65)(cid:83) (cid:65)(cid:78) (cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84) (cid:73)(cid:78) (cid:65)(cid:78) (cid:65)(cid:83)(cid:83)(cid:79)(cid:67)(cid:73)(cid:65)(cid:84)(cid:69)(cid:14) (cid:52)(cid:72)(cid:69) (cid:80)(cid:82)(cid:73)(cid:78)(cid:67)(cid:73)(cid:80)(cid:65)(cid:76) (cid:65)(cid:67)(cid:84)(cid:73)(cid:86)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83) (cid:79)(cid:70) (cid:51)(cid:89)(cid:78)(cid:69)(cid:82)(cid:74)(cid:69)(cid:67)(cid:84) (cid:44)(cid:44)(cid:35) (cid:65)(cid:82)(cid:69) (cid:84)(cid:72)(cid:69) (cid:77)(cid:65)(cid:82)(cid:75)(cid:69)(cid:84)(cid:73)(cid:78)(cid:71)(cid:12) (cid:83)(cid:65)(cid:76)(cid:69) (cid:65)(cid:78)(cid:68) (cid:77)(cid:65)(cid:78)(cid:85)(cid:70)(cid:65)(cid:67)(cid:84)(cid:85)(cid:82)(cid:69)(cid:12) (cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:73)(cid:78)(cid:71) (cid:82)(cid:69)(cid:83)(cid:69)(cid:65)(cid:82)(cid:67)(cid:72) (cid:65)(cid:78)(cid:68) (cid:68)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84) (cid:73)(cid:78) (cid:84)(cid:72)(cid:69) (cid:65)(cid:82)(cid:69)(cid:65) (cid:79)(cid:70) (cid:69)(cid:78)(cid:71)(cid:73)(cid:78)(cid:69) (cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84) (cid:83)(cid:89)(cid:83)(cid:84)(cid:69)(cid:77)(cid:83) (cid:65)(cid:78)(cid:68) (cid:67)(cid:79)(cid:77)(cid:80)(cid:79)(cid:78)(cid:69)(cid:78)(cid:84)(cid:83) (cid:73)(cid:78) (cid:84)(cid:72)(cid:69) (cid:77)(cid:65)(cid:82)(cid:73)(cid:78)(cid:69)(cid:12) (cid:82)(cid:69)(cid:67)(cid:82)(cid:69)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:12) (cid:77)(cid:79)(cid:84)(cid:79)(cid:82)(cid:67)(cid:89)(cid:67)(cid:76)(cid:69) (cid:65)(cid:78)(cid:68) (cid:85)(cid:84)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89) (cid:77)(cid:65)(cid:82)(cid:75)(cid:69)(cid:84)(cid:83)(cid:14) (cid:52)(cid:72)(cid:69) (cid:39)(cid:82)(cid:79)(cid:85)(cid:80) (cid:65)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:83) (cid:70)(cid:79)(cid:82) (cid:84)(cid:72)(cid:69) (cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84) (cid:73)(cid:78) (cid:51)(cid:89)(cid:78)(cid:69)(cid:82)(cid:74)(cid:69)(cid:67)(cid:84) (cid:85)(cid:83)(cid:73)(cid:78)(cid:71) (cid:84)(cid:72)(cid:69) (cid:69)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89) (cid:77)(cid:69)(cid:84)(cid:72)(cid:79)(cid:68)(cid:14) (cid:52)(cid:72)(cid:69) (cid:39)(cid:82)(cid:79)(cid:85)(cid:80) (cid:72)(cid:65)(cid:83) (cid:84)(cid:72)(cid:69) (cid:70)(cid:79)(cid:76)(cid:76)(cid:79)(cid:87)(cid:73)(cid:78)(cid:71) (cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84)(cid:83) (cid:73)(cid:78) (cid:51)(cid:89)(cid:78)(cid:69)(cid:82)(cid:74)(cid:69)(cid:67)(cid:84)(cid:26)(cid:0) Name Principal activities Country of Financial 30 June Ownership incorporation Year end 2010 2009 (cid:51)(cid:89)(cid:78)(cid:69)(cid:82)(cid:74)(cid:69)(cid:67)(cid:84) (cid:44)(cid:44)(cid:35)(cid:0) (cid:45)(cid:65)(cid:78)(cid:85)(cid:70)(cid:65)(cid:67)(cid:84)(cid:85)(cid:82)(cid:69) (cid:79)(cid:70) (cid:69)(cid:78)(cid:71)(cid:73)(cid:78)(cid:69) (cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84) (cid:83)(cid:89)(cid:83)(cid:84)(cid:69)(cid:77)(cid:83) (cid:53)(cid:51)(cid:33) (cid:0) (cid:19)(cid:17) (cid:36)(cid:69)(cid:67)(cid:69)(cid:77)(cid:66)(cid:69)(cid:82)(cid:0) (cid:20)(cid:18)(cid:5)(cid:0) (cid:20)(cid:18)(cid:5) (cid:51)(cid:85)(cid:77)(cid:77)(cid:65)(cid:82)(cid:73)(cid:83)(cid:69)(cid:68) (cid:108)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76) (cid:73)(cid:78)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:82)(cid:69)(cid:76)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71) (cid:84)(cid:79) (cid:51)(cid:89)(cid:78)(cid:69)(cid:82)(cid:74)(cid:69)(cid:67)(cid:84) (cid:65)(cid:84) (cid:19)(cid:16) (cid:42)(cid:85)(cid:78)(cid:69) (cid:18)(cid:16)(cid:17)(cid:16) (cid:73)(cid:83) (cid:65)(cid:83) (cid:70)(cid:79)(cid:76)(cid:76)(cid:79)(cid:87)(cid:83)(cid:26)(cid:0) (cid:19)(cid:16) (cid:42)(cid:85)(cid:78)(cid:69) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:19)(cid:16) (cid:42)(cid:85)(cid:78)(cid:69) (cid:18)(cid:16)(cid:16)(cid:25)(cid:0) Orbital Total Total (cid:50)(cid:69)(cid:86)(cid:69)(cid:78)(cid:85)(cid:69)(cid:83)(cid:0) (cid:48)(cid:82)(cid:79)(cid:108)(cid:84)(cid:0) (cid:33)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83)(cid:0) (cid:44)(cid:73)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83) (cid:0) (cid:46)(cid:69)(cid:84) (cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83) (cid:8)(cid:17)(cid:16)(cid:16)(cid:5)(cid:9)(cid:0) (cid:8)(cid:17)(cid:16)(cid:16)(cid:5)(cid:9)(cid:0) (cid:8)(cid:17)(cid:16)(cid:16)(cid:5)(cid:9)(cid:0) (cid:8)(cid:17)(cid:16)(cid:16)(cid:5)(cid:9) (cid:0) (cid:8)(cid:17)(cid:16)(cid:16)(cid:5)(cid:9) (cid:53)(cid:51)(cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:53)(cid:51)(cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:53)(cid:51)(cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:53)(cid:51)(cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:53)(cid:51)(cid:4)(cid:7)(cid:16)(cid:16)(cid:16) (cid:25)(cid:16)(cid:12)(cid:19)(cid:23)(cid:21) (cid:20)(cid:12)(cid:23)(cid:20)(cid:20) (cid:20)(cid:22)(cid:12)(cid:16)(cid:23)(cid:17) (cid:18)(cid:25)(cid:12)(cid:22)(cid:24)(cid:24) (cid:17)(cid:22)(cid:12)(cid:19)(cid:24)(cid:19) (cid:23)(cid:20)(cid:12)(cid:22)(cid:19)(cid:21) (cid:19)(cid:12)(cid:22)(cid:22)(cid:18) (cid:19)(cid:24)(cid:12)(cid:24)(cid:25)(cid:18) (cid:18)(cid:21)(cid:12)(cid:16)(cid:22)(cid:25) (cid:17)(cid:19)(cid:12)(cid:24)(cid:18)(cid:19) 2010 Annual Report 47 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2010 16. INVESTMENT IN ASSOCIATE (continued) Share of Synerject’s net proﬁt recognised A$’000 Total Assets (100%) A$’000 Total Liabilities (100%) A$’000 Net assets as reported by Synerject (100%) A$’000 Share of Synerject’s net assets equity accounted A$’000 Revenues (100%) A$’000 Proﬁt (100%) A$’000 30 June 2010 104,323 5,476 1,874 53,478 34,461 19,017 11,534 30 June 2009 102,198 5,014 1,846 47,551 30,650 16,901 11,264 (b) Movements in the carrying amount of the Group’s interest in Synerject Beginning of year Share of proﬁts after tax Share of reserves Dividends received Sale of interest Unrealised foreign exchange movements End of year (c ) Results of Synerject Share of Synerject’s proﬁt before income tax Share of income tax expense Share of Synerject’s net proﬁt - as disclosed by Synerject Adjustments: - dissimilar accounting treatment with respect to revenue recognition - dissimilar accounting treatment with respect to development expenditure - dissimilar accounting treatment with respect to intangibles Share of jointly controlled entity’s net proﬁt accounted for using the equity method (d) Commitments Share of Synerject’s capital commitments contracted but not provided for or payable: Within one year One year or later and no later than ﬁve years Later than 5 years (e) Gain on sale of interest in Synerject Proceeds on disposal Carrying value of investment in Synerject disposed of Gain on sale of interest CONSOLIDATED 2010 $’000 2009 $’000 11,264 1,874 (357) (677) - (570) 13,109 1,846 (318) (4,577) (2,253) 3,457 11,534 11,264 2,363 (87) 2,276 (402) (354) 354 1,874 2,322 (293) 2,029 - (477) 294 1,846 649 1,349 741 2,739 618 1,603 1,190 3,411 - - - 5,931 ( 2,253) 3,678 48 Annual Report 2010 Orbital 17. DEFERRED TAX ASSETS AND LIABILITIES Recognised deferred tax assets and liabilities (cid:36)(cid:69)(cid:70)(cid:69)(cid:82)(cid:82)(cid:69)(cid:68) (cid:84)(cid:65)(cid:88) (cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83) (cid:65)(cid:78)(cid:68) (cid:76)(cid:73)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83) (cid:65)(cid:82)(cid:69) (cid:65)(cid:84)(cid:84)(cid:82)(cid:73)(cid:66)(cid:85)(cid:84)(cid:65)(cid:66)(cid:76)(cid:69) (cid:84)(cid:79) (cid:84)(cid:72)(cid:69) (cid:70)(cid:79)(cid:76)(cid:76)(cid:79)(cid:87)(cid:73)(cid:78)(cid:71)(cid:26)(cid:0) (cid:0) (cid:35)(cid:79)(cid:78)(cid:83)(cid:79)(cid:76)(cid:73)(cid:68)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0) Deferred Deferred (cid:52)(cid:65)(cid:88) (cid:33)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83)(cid:0) (cid:52)(cid:65)(cid:88) (cid:44)(cid:73)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:0) (cid:46)(cid:69)(cid:84) (cid:0) (cid:0) (cid:0) (cid:0) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25)(cid:0) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25)(cid:0) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16) (cid:52)(cid:65)(cid:88) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69) (cid:79)(cid:70) (cid:53)(cid:51) (cid:76)(cid:79)(cid:83)(cid:83) (cid:67)(cid:65)(cid:82)(cid:82)(cid:89)(cid:13)(cid:70)(cid:79)(cid:82)(cid:87)(cid:65)(cid:82)(cid:68)(cid:83) (cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68)(cid:0) (cid:21)(cid:12)(cid:18)(cid:17)(cid:21) (cid:21)(cid:12)(cid:16)(cid:21)(cid:20) (cid:13) (cid:13) (cid:21)(cid:12)(cid:18)(cid:17)(cid:21) (cid:21)(cid:12)(cid:16)(cid:21)(cid:20) (cid:47)(cid:84)(cid:72)(cid:69)(cid:82) (cid:78)(cid:69)(cid:84) (cid:84)(cid:69)(cid:77)(cid:80)(cid:79)(cid:82)(cid:65)(cid:82)(cid:89) (cid:68)(cid:73)(cid:70)(cid:70)(cid:69)(cid:82)(cid:69)(cid:78)(cid:67)(cid:69)(cid:83)(cid:0) (cid:46)(cid:69)(cid:84) (cid:84)(cid:65)(cid:88) (cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83)(cid:0) (cid:18)(cid:12)(cid:17)(cid:25)(cid:23) (cid:18)(cid:17)(cid:23) (cid:8)(cid:18)(cid:12)(cid:17)(cid:25)(cid:23)(cid:9)(cid:0) (cid:8)(cid:18)(cid:17)(cid:23)(cid:9)(cid:0) (cid:13) (cid:13) (cid:23)(cid:12)(cid:20)(cid:17)(cid:18) (cid:21)(cid:12)(cid:18)(cid:23)(cid:17) (cid:8)(cid:18)(cid:12)(cid:17)(cid:25)(cid:23)(cid:9)(cid:0) (cid:8)(cid:18)(cid:17)(cid:23)(cid:9)(cid:0) (cid:21)(cid:12)(cid:18)(cid:17)(cid:21) (cid:21)(cid:12)(cid:16)(cid:21)(cid:20) Unrecognised deferred tax assets (cid:36)(cid:69)(cid:70)(cid:69)(cid:82)(cid:82)(cid:69)(cid:68) (cid:84)(cid:65)(cid:88) (cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83) (cid:72)(cid:65)(cid:86)(cid:69) (cid:78)(cid:79)(cid:84) (cid:66)(cid:69)(cid:69)(cid:78) (cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68) (cid:73)(cid:78) (cid:82)(cid:69)(cid:83)(cid:80)(cid:69)(cid:67)(cid:84) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:70)(cid:79)(cid:76)(cid:76)(cid:79)(cid:87)(cid:73)(cid:78)(cid:71) (cid:73)(cid:84)(cid:69)(cid:77)(cid:83)(cid:26)(cid:0) (cid:0) (cid:0) (cid:0) (cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65) (cid:8)(cid:78)(cid:69)(cid:84) (cid:65)(cid:84) (cid:19)(cid:16)(cid:5)(cid:9) (cid:52)(cid:65)(cid:88) (cid:76)(cid:79)(cid:83)(cid:83)(cid:69)(cid:83)(cid:0) (cid:52)(cid:73)(cid:77)(cid:73)(cid:78)(cid:71) (cid:68)(cid:73)(cid:70)(cid:70)(cid:69)(cid:82)(cid:69)(cid:78)(cid:67)(cid:69) (cid:70)(cid:82)(cid:79)(cid:77) (cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:83)(cid:73)(cid:79)(cid:78) (cid:70)(cid:79)(cid:82) (cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76) (cid:76)(cid:79)(cid:83)(cid:83) (cid:79)(cid:78) (cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0) (cid:47)(cid:84)(cid:72)(cid:69)(cid:82) (cid:78)(cid:69)(cid:84) (cid:84)(cid:69)(cid:77)(cid:80)(cid:79)(cid:82)(cid:65)(cid:82)(cid:89) (cid:68)(cid:73)(cid:70)(cid:70)(cid:69)(cid:82)(cid:69)(cid:78)(cid:67)(cid:69)(cid:83) (cid:8)(cid:65)(cid:9)(cid:0) (cid:53)(cid:78)(cid:73)(cid:84)(cid:69)(cid:68) (cid:51)(cid:84)(cid:65)(cid:84)(cid:69)(cid:83) (cid:79)(cid:70) (cid:33)(cid:77)(cid:69)(cid:82)(cid:73)(cid:67)(cid:65) (cid:8)(cid:78)(cid:69)(cid:84) (cid:65)(cid:84) (cid:19)(cid:20)(cid:5)(cid:9) (cid:52)(cid:65)(cid:88) (cid:76)(cid:79)(cid:83)(cid:83)(cid:69)(cid:83)(cid:0) (cid:47)(cid:84)(cid:72)(cid:69)(cid:82) (cid:78)(cid:69)(cid:84) (cid:84)(cid:69)(cid:77)(cid:80)(cid:79)(cid:82)(cid:65)(cid:82)(cid:89) (cid:68)(cid:73)(cid:70)(cid:70)(cid:69)(cid:82)(cid:69)(cid:78)(cid:67)(cid:69)(cid:83)(cid:0) (a) Other net temporary differences (cid:33)(cid:78)(cid:78)(cid:85)(cid:65)(cid:76) (cid:76)(cid:69)(cid:65)(cid:86)(cid:69)(cid:0) (cid:44)(cid:79)(cid:78)(cid:71) (cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:69) (cid:76)(cid:69)(cid:65)(cid:86)(cid:69)(cid:0) (cid:51)(cid:84)(cid:65)(cid:70)(cid:70) (cid:66)(cid:79)(cid:78)(cid:85)(cid:83)(cid:0) (cid:50)(cid:69)(cid:86)(cid:69)(cid:78)(cid:85)(cid:69) (cid:73)(cid:78) (cid:65)(cid:68)(cid:86)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0) (cid:47)(cid:84)(cid:72)(cid:69)(cid:82)(cid:0) (cid:39)(cid:79)(cid:86)(cid:69)(cid:82)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84) (cid:76)(cid:79)(cid:65)(cid:78)(cid:0) (cid:33)(cid:67)(cid:67)(cid:69)(cid:76)(cid:69)(cid:82)(cid:65)(cid:84)(cid:69)(cid:68) (cid:68)(cid:69)(cid:80)(cid:82)(cid:69)(cid:67)(cid:73)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:26) (cid:80)(cid:76)(cid:65)(cid:78)(cid:84) (cid:6) (cid:69)(cid:81)(cid:85)(cid:73)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0) (cid:0) (cid:0) (cid:35)(cid:79)(cid:78)(cid:83)(cid:79)(cid:76)(cid:73)(cid:68)(cid:65)(cid:84)(cid:69)(cid:68) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:17)(cid:24)(cid:12)(cid:17)(cid:21)(cid:16) (cid:17)(cid:12)(cid:25)(cid:19)(cid:20) (cid:8)(cid:25)(cid:24)(cid:18)(cid:9)(cid:0) (cid:17)(cid:25)(cid:12)(cid:17)(cid:16)(cid:18) (cid:17)(cid:19)(cid:12)(cid:22)(cid:21)(cid:18) (cid:21)(cid:12)(cid:16)(cid:23)(cid:21) (cid:17)(cid:24)(cid:12)(cid:23)(cid:18)(cid:23) (cid:18)(cid:21)(cid:25) (cid:20)(cid:16)(cid:17) (cid:17)(cid:23)(cid:19) (cid:17)(cid:24)(cid:25) (cid:17)(cid:25)(cid:19) (cid:8)(cid:18)(cid:12)(cid:16)(cid:18)(cid:19)(cid:9)(cid:0) (cid:8)(cid:17)(cid:23)(cid:20)(cid:9)(cid:0) (cid:8)(cid:25)(cid:24)(cid:18)(cid:9)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16) (cid:17)(cid:23)(cid:12)(cid:19)(cid:17)(cid:17) (cid:17)(cid:12)(cid:25)(cid:19)(cid:20) (cid:17)(cid:12)(cid:24)(cid:20)(cid:20) (cid:18)(cid:17)(cid:12)(cid:16)(cid:24)(cid:25) (cid:17)(cid:20)(cid:12)(cid:21)(cid:18)(cid:24) (cid:21)(cid:12)(cid:22)(cid:20)(cid:23) (cid:18)(cid:16)(cid:12)(cid:17)(cid:23)(cid:21) (cid:19)(cid:17)(cid:16) (cid:19)(cid:25)(cid:16) (cid:13) (cid:17)(cid:12)(cid:19)(cid:22)(cid:17) (cid:8)(cid:25)(cid:23)(cid:9) (cid:13) (cid:8)(cid:17)(cid:18)(cid:16)(cid:9) (cid:17)(cid:12)(cid:24)(cid:20)(cid:20) (cid:0) (cid:53)(cid:78)(cid:68)(cid:69)(cid:82) (cid:84)(cid:72)(cid:69) (cid:84)(cid:65)(cid:88) (cid:76)(cid:65)(cid:87)(cid:83) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:53)(cid:78)(cid:73)(cid:84)(cid:69)(cid:68) (cid:51)(cid:84)(cid:65)(cid:84)(cid:69)(cid:83)(cid:12) (cid:84)(cid:65)(cid:88) (cid:76)(cid:79)(cid:83)(cid:83)(cid:69)(cid:83) (cid:84)(cid:72)(cid:65)(cid:84) (cid:67)(cid:65)(cid:78)(cid:78)(cid:79)(cid:84) (cid:66)(cid:69) (cid:70)(cid:85)(cid:76)(cid:76)(cid:89) (cid:85)(cid:84)(cid:73)(cid:76)(cid:73)(cid:83)(cid:69)(cid:68) (cid:70)(cid:79)(cid:82) (cid:84)(cid:65)(cid:88) (cid:80)(cid:85)(cid:82)(cid:80)(cid:79)(cid:83)(cid:69)(cid:83) (cid:68)(cid:85)(cid:82)(cid:73)(cid:78)(cid:71) (cid:84)(cid:72)(cid:69) (cid:67)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:84) (cid:89)(cid:69)(cid:65)(cid:82) (cid:77)(cid:65)(cid:89) (cid:66)(cid:69) (cid:67)(cid:65)(cid:82)(cid:82)(cid:73)(cid:69)(cid:68) (cid:70)(cid:79)(cid:82)(cid:87)(cid:65)(cid:82)(cid:68)(cid:12) (cid:83)(cid:85)(cid:66)(cid:74)(cid:69)(cid:67)(cid:84) (cid:84)(cid:79) (cid:83)(cid:79)(cid:77)(cid:69) (cid:83)(cid:84)(cid:65)(cid:84)(cid:85)(cid:84)(cid:79)(cid:82)(cid:89) (cid:76)(cid:73)(cid:77)(cid:73)(cid:84)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:12) (cid:84)(cid:79) (cid:82)(cid:69)(cid:68)(cid:85)(cid:67)(cid:69) (cid:84)(cid:65)(cid:88)(cid:65)(cid:66)(cid:76)(cid:69) (cid:73)(cid:78)(cid:67)(cid:79)(cid:77)(cid:69) (cid:73)(cid:78) (cid:70)(cid:85)(cid:84)(cid:85)(cid:82)(cid:69) (cid:89)(cid:69)(cid:65)(cid:82)(cid:83)(cid:14) (cid:33)(cid:84) (cid:19)(cid:16) (cid:42)(cid:85)(cid:78)(cid:69) (cid:18)(cid:16)(cid:17)(cid:16)(cid:12) (cid:84)(cid:72)(cid:69) (cid:65)(cid:86)(cid:65)(cid:73)(cid:76)(cid:65)(cid:66)(cid:76)(cid:69) (cid:84)(cid:65)(cid:88) (cid:67)(cid:65)(cid:82)(cid:82)(cid:89) (cid:70)(cid:79)(cid:82)(cid:87)(cid:65)(cid:82)(cid:68) (cid:76)(cid:79)(cid:83)(cid:83)(cid:69)(cid:83) (cid:79)(cid:70) (cid:53)(cid:51)(cid:4)(cid:20)(cid:21)(cid:12)(cid:16)(cid:19)(cid:20)(cid:12)(cid:24)(cid:19)(cid:20) (cid:8)(cid:18)(cid:16)(cid:16)(cid:25)(cid:26) (cid:53)(cid:51)(cid:4)(cid:20)(cid:23)(cid:12)(cid:17)(cid:16)(cid:22)(cid:12)(cid:23)(cid:23)(cid:17)(cid:9) (cid:69)(cid:88)(cid:80)(cid:73)(cid:82)(cid:69) (cid:66)(cid:69)(cid:84)(cid:87)(cid:69)(cid:69)(cid:78) (cid:84)(cid:72)(cid:69) (cid:89)(cid:69)(cid:65)(cid:82)(cid:83) (cid:18)(cid:16)(cid:17)(cid:16) (cid:65)(cid:78)(cid:68) (cid:18)(cid:16)(cid:18)(cid:20)(cid:14) Movement in temporary differences during the year (cid:52)(cid:65)(cid:88) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69) (cid:79)(cid:70) (cid:76)(cid:79)(cid:83)(cid:83) (cid:67)(cid:65)(cid:82)(cid:82)(cid:89)(cid:13)(cid:70)(cid:79)(cid:82)(cid:87)(cid:65)(cid:82)(cid:68)(cid:83) (cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68)(cid:0) (cid:46)(cid:69)(cid:84) (cid:84)(cid:65)(cid:88) (cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83)(cid:0) (cid:52)(cid:65)(cid:88) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69) (cid:79)(cid:70) (cid:76)(cid:79)(cid:83)(cid:83) (cid:67)(cid:65)(cid:82)(cid:82)(cid:89)(cid:13)(cid:70)(cid:79)(cid:82)(cid:87)(cid:65)(cid:82)(cid:68)(cid:83) (cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68)(cid:0) (cid:46)(cid:69)(cid:84) (cid:84)(cid:65)(cid:88) (cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83)(cid:0) (cid:35)(cid:79)(cid:78)(cid:83)(cid:79)(cid:76)(cid:73)(cid:68)(cid:65)(cid:84)(cid:69)(cid:68) (cid:34)(cid:65)(cid:76)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0) (cid:50)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68)(cid:0) (cid:50)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68)(cid:0) (cid:34)(cid:65)(cid:76)(cid:65)(cid:78)(cid:67)(cid:69) (cid:17)(cid:13)(cid:42)(cid:85)(cid:76)(cid:13)(cid:16)(cid:24)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:21)(cid:12)(cid:20)(cid:25)(cid:20) (cid:21)(cid:12)(cid:20)(cid:25)(cid:20) (cid:73)(cid:78) (cid:73)(cid:78)(cid:67)(cid:79)(cid:77)(cid:69)(cid:0) (cid:73)(cid:78) (cid:69)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89)(cid:0) (cid:19)(cid:16)(cid:13)(cid:42)(cid:85)(cid:78)(cid:13)(cid:16)(cid:25) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16) (cid:8)(cid:17)(cid:12)(cid:23)(cid:19)(cid:17)(cid:9)(cid:0) (cid:8)(cid:17)(cid:12)(cid:23)(cid:19)(cid:17)(cid:9)(cid:0) (cid:17)(cid:12)(cid:18)(cid:25)(cid:17) (cid:17)(cid:12)(cid:18)(cid:25)(cid:17) (cid:21)(cid:12)(cid:16)(cid:21)(cid:20) (cid:21)(cid:12)(cid:16)(cid:21)(cid:20) (cid:35)(cid:79)(cid:78)(cid:83)(cid:79)(cid:76)(cid:73)(cid:68)(cid:65)(cid:84)(cid:69)(cid:68) (cid:34)(cid:65)(cid:76)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0) (cid:50)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68)(cid:0) (cid:50)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68)(cid:0) (cid:34)(cid:65)(cid:76)(cid:65)(cid:78)(cid:67)(cid:69) (cid:17)(cid:13)(cid:42)(cid:85)(cid:76)(cid:13)(cid:16)(cid:25)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:21)(cid:12)(cid:16)(cid:21)(cid:20) (cid:21)(cid:12)(cid:16)(cid:21)(cid:20) (cid:73)(cid:78) (cid:73)(cid:78)(cid:67)(cid:79)(cid:77)(cid:69)(cid:0) (cid:73)(cid:78) (cid:69)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89)(cid:0) (cid:19)(cid:16)(cid:13)(cid:42)(cid:85)(cid:78)(cid:13)(cid:17)(cid:16) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16) (cid:20)(cid:17)(cid:23) (cid:20)(cid:17)(cid:23) (cid:8)(cid:18)(cid:21)(cid:22)(cid:9)(cid:0) (cid:8)(cid:18)(cid:21)(cid:22)(cid:9)(cid:0) (cid:21)(cid:12)(cid:18)(cid:17)(cid:21) (cid:21)(cid:12)(cid:18)(cid:17)(cid:21) (cid:8)(cid:66)(cid:9)(cid:0) (cid:52)(cid:72)(cid:69) (cid:65)(cid:77)(cid:79)(cid:85)(cid:78)(cid:84)(cid:83) (cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68) (cid:84)(cid:72)(cid:82)(cid:79)(cid:85)(cid:71)(cid:72) (cid:69)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89) (cid:82)(cid:69)(cid:80)(cid:82)(cid:69)(cid:83)(cid:69)(cid:78)(cid:84) (cid:84)(cid:72)(cid:69) (cid:70)(cid:79)(cid:82)(cid:69)(cid:73)(cid:71)(cid:78) (cid:69)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69) (cid:68)(cid:73)(cid:70)(cid:70)(cid:69)(cid:82)(cid:69)(cid:78)(cid:67)(cid:69)(cid:83) (cid:65)(cid:82)(cid:73)(cid:83)(cid:73)(cid:78)(cid:71) (cid:79)(cid:78) (cid:84)(cid:72)(cid:69) (cid:84)(cid:82)(cid:65)(cid:78)(cid:83)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:70)(cid:79)(cid:82)(cid:69)(cid:73)(cid:71)(cid:78) (cid:83)(cid:85)(cid:66)(cid:83)(cid:73)(cid:68)(cid:73)(cid:65)(cid:82)(cid:89)(cid:14) Orbital 2010 Annual Report 49 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2010 18. PROPERTY, PLANT AND EQUIPMENT Freehold land (cid:33)(cid:84) (cid:67)(cid:79)(cid:83)(cid:84)(cid:0) Buildings (cid:33)(cid:84) (cid:67)(cid:79)(cid:83)(cid:84)(cid:0) (cid:44)(cid:69)(cid:83)(cid:83)(cid:26) (cid:65)(cid:67)(cid:67)(cid:85)(cid:77)(cid:85)(cid:76)(cid:65)(cid:84)(cid:69)(cid:68) (cid:68)(cid:69)(cid:80)(cid:82)(cid:69)(cid:67)(cid:73)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) Plant and equipment (cid:33)(cid:84) (cid:67)(cid:79)(cid:83)(cid:84)(cid:0) (cid:44)(cid:69)(cid:83)(cid:83)(cid:26) (cid:65)(cid:67)(cid:67)(cid:85)(cid:77)(cid:85)(cid:76)(cid:65)(cid:84)(cid:69)(cid:68) (cid:68)(cid:69)(cid:80)(cid:82)(cid:69)(cid:67)(cid:73)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:35)(cid:47)(cid:46)(cid:51)(cid:47)(cid:44)(cid:41)(cid:36)(cid:33)(cid:52)(cid:37)(cid:36) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16) (cid:0) (cid:0) (cid:17)(cid:12)(cid:16)(cid:25)(cid:17) (cid:17)(cid:12)(cid:16)(cid:25)(cid:17) (cid:19)(cid:12)(cid:16)(cid:21)(cid:23) (cid:8)(cid:17)(cid:12)(cid:17)(cid:19)(cid:23)(cid:9)(cid:0) (cid:17)(cid:12)(cid:25)(cid:18)(cid:16) (cid:19)(cid:12)(cid:16)(cid:21)(cid:23) (cid:8)(cid:17)(cid:12)(cid:16)(cid:21)(cid:21)(cid:9) (cid:18)(cid:12)(cid:16)(cid:16)(cid:18) (cid:18)(cid:18)(cid:12)(cid:19)(cid:19)(cid:22) (cid:18)(cid:16)(cid:12)(cid:25)(cid:25)(cid:18) (cid:8)(cid:17)(cid:23)(cid:12)(cid:20)(cid:19)(cid:22)(cid:9)(cid:0) (cid:8)(cid:17)(cid:22)(cid:12)(cid:22)(cid:24)(cid:24)(cid:9) (cid:20)(cid:12)(cid:25)(cid:16)(cid:16) (cid:20)(cid:12)(cid:19)(cid:16)(cid:20) (cid:52)(cid:79)(cid:84)(cid:65)(cid:76) (cid:80)(cid:82)(cid:79)(cid:80)(cid:69)(cid:82)(cid:84)(cid:89)(cid:12) (cid:80)(cid:76)(cid:65)(cid:78)(cid:84) (cid:65)(cid:78)(cid:68) (cid:69)(cid:81)(cid:85)(cid:73)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84) (cid:13) (cid:78)(cid:69)(cid:84) (cid:66)(cid:79)(cid:79)(cid:75) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69)(cid:0) (cid:23)(cid:12)(cid:25)(cid:17)(cid:17) (cid:23)(cid:12)(cid:19)(cid:25)(cid:23) Reconciliations (cid:50)(cid:69)(cid:67)(cid:79)(cid:78)(cid:67)(cid:73)(cid:76)(cid:73)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:67)(cid:65)(cid:82)(cid:82)(cid:89)(cid:73)(cid:78)(cid:71) (cid:65)(cid:77)(cid:79)(cid:85)(cid:78)(cid:84)(cid:83) (cid:70)(cid:79)(cid:82) (cid:69)(cid:65)(cid:67)(cid:72) (cid:67)(cid:76)(cid:65)(cid:83)(cid:83) (cid:79)(cid:70) (cid:80)(cid:82)(cid:79)(cid:80)(cid:69)(cid:82)(cid:84)(cid:89)(cid:12) (cid:80)(cid:76)(cid:65)(cid:78)(cid:84) (cid:65)(cid:78)(cid:68) (cid:69)(cid:81)(cid:85)(cid:73)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84) (cid:65)(cid:82)(cid:69) (cid:83)(cid:69)(cid:84) (cid:79)(cid:85)(cid:84) (cid:66)(cid:69)(cid:76)(cid:79)(cid:87)(cid:26) Freehold land (cid:35)(cid:65)(cid:82)(cid:82)(cid:89)(cid:73)(cid:78)(cid:71) (cid:65)(cid:77)(cid:79)(cid:85)(cid:78)(cid:84) (cid:65)(cid:84) (cid:66)(cid:69)(cid:71)(cid:73)(cid:78)(cid:78)(cid:73)(cid:78)(cid:71) (cid:79)(cid:70) (cid:89)(cid:69)(cid:65)(cid:82)(cid:0) (cid:35)(cid:65)(cid:82)(cid:82)(cid:89)(cid:73)(cid:78)(cid:71) (cid:65)(cid:77)(cid:79)(cid:85)(cid:78)(cid:84) (cid:65)(cid:84) (cid:69)(cid:78)(cid:68) (cid:79)(cid:70) (cid:89)(cid:69)(cid:65)(cid:82)(cid:0) Buildings (cid:35)(cid:65)(cid:82)(cid:82)(cid:89)(cid:73)(cid:78)(cid:71) (cid:65)(cid:77)(cid:79)(cid:85)(cid:78)(cid:84) (cid:65)(cid:84) (cid:66)(cid:69)(cid:71)(cid:73)(cid:78)(cid:78)(cid:73)(cid:78)(cid:71) (cid:79)(cid:70) (cid:89)(cid:69)(cid:65)(cid:82)(cid:0) (cid:36)(cid:69)(cid:80)(cid:82)(cid:69)(cid:67)(cid:73)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:35)(cid:65)(cid:82)(cid:82)(cid:89)(cid:73)(cid:78)(cid:71) (cid:65)(cid:77)(cid:79)(cid:85)(cid:78)(cid:84) (cid:65)(cid:84) (cid:69)(cid:78)(cid:68) (cid:79)(cid:70) (cid:89)(cid:69)(cid:65)(cid:82)(cid:0) Plant and equipment (cid:35)(cid:65)(cid:82)(cid:82)(cid:89)(cid:73)(cid:78)(cid:71) (cid:65)(cid:77)(cid:79)(cid:85)(cid:78)(cid:84) (cid:65)(cid:84) (cid:66)(cid:69)(cid:71)(cid:73)(cid:78)(cid:78)(cid:73)(cid:78)(cid:71) (cid:79)(cid:70) (cid:89)(cid:69)(cid:65)(cid:82)(cid:0) (cid:33)(cid:68)(cid:68)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83) (cid:65)(cid:78)(cid:68) (cid:84)(cid:82)(cid:65)(cid:78)(cid:83)(cid:70)(cid:69)(cid:82)(cid:83)(cid:0) (cid:33)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83) (cid:85)(cid:78)(cid:68)(cid:69)(cid:82) (cid:67)(cid:79)(cid:78)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:36)(cid:73)(cid:83)(cid:80)(cid:79)(cid:83)(cid:65)(cid:76)(cid:83)(cid:0) (cid:36)(cid:69)(cid:80)(cid:82)(cid:69)(cid:67)(cid:73)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:35)(cid:65)(cid:82)(cid:82)(cid:89)(cid:73)(cid:78)(cid:71) (cid:65)(cid:77)(cid:79)(cid:85)(cid:78)(cid:84) (cid:65)(cid:84) (cid:69)(cid:78)(cid:68) (cid:79)(cid:70) (cid:89)(cid:69)(cid:65)(cid:82)(cid:0) Total (cid:35)(cid:65)(cid:82)(cid:82)(cid:89)(cid:73)(cid:78)(cid:71) (cid:65)(cid:77)(cid:79)(cid:85)(cid:78)(cid:84) (cid:65)(cid:84) (cid:66)(cid:69)(cid:71)(cid:73)(cid:78)(cid:78)(cid:73)(cid:78)(cid:71) (cid:79)(cid:70) (cid:89)(cid:69)(cid:65)(cid:82)(cid:0) (cid:35)(cid:65)(cid:82)(cid:82)(cid:89)(cid:73)(cid:78)(cid:71) (cid:65)(cid:77)(cid:79)(cid:85)(cid:78)(cid:84) (cid:65)(cid:84) (cid:69)(cid:78)(cid:68) (cid:79)(cid:70) (cid:89)(cid:69)(cid:65)(cid:82)(cid:0) (cid:17)(cid:12)(cid:16)(cid:25)(cid:17) (cid:17)(cid:12)(cid:16)(cid:25)(cid:17) (cid:17)(cid:12)(cid:16)(cid:25)(cid:17) (cid:17)(cid:12)(cid:16)(cid:25)(cid:17) (cid:18)(cid:12)(cid:16)(cid:16)(cid:18) (cid:8)(cid:24)(cid:18)(cid:9)(cid:0) (cid:17)(cid:12)(cid:25)(cid:18)(cid:16) (cid:20)(cid:12)(cid:19)(cid:16)(cid:20) (cid:17)(cid:12)(cid:19)(cid:25)(cid:20) (cid:13) (cid:8)(cid:19)(cid:9)(cid:0) (cid:8)(cid:23)(cid:25)(cid:21)(cid:9)(cid:0) (cid:20)(cid:12)(cid:25)(cid:16)(cid:16) (cid:18)(cid:12)(cid:16)(cid:24)(cid:19) (cid:8)(cid:24)(cid:17)(cid:9) (cid:18)(cid:12)(cid:16)(cid:16)(cid:18) (cid:18)(cid:12)(cid:20)(cid:17)(cid:18) (cid:18)(cid:18)(cid:20) (cid:19)(cid:12)(cid:16)(cid:16)(cid:19) (cid:8)(cid:19)(cid:18)(cid:18)(cid:9) (cid:8)(cid:17)(cid:12)(cid:16)(cid:17)(cid:19)(cid:9) (cid:20)(cid:12)(cid:19)(cid:16)(cid:20) (cid:23)(cid:12)(cid:19)(cid:25)(cid:23) (cid:23)(cid:12)(cid:25)(cid:17)(cid:17) (cid:21)(cid:12)(cid:21)(cid:24)(cid:22) (cid:23)(cid:12)(cid:19)(cid:25)(cid:23) (cid:33)(cid:76)(cid:76) (cid:80)(cid:82)(cid:79)(cid:80)(cid:69)(cid:82)(cid:84)(cid:89)(cid:12) (cid:80)(cid:76)(cid:65)(cid:78)(cid:84) (cid:65)(cid:78)(cid:68) (cid:69)(cid:81)(cid:85)(cid:73)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:39)(cid:82)(cid:79)(cid:85)(cid:80) (cid:65)(cid:82)(cid:69) (cid:83)(cid:85)(cid:66)(cid:74)(cid:69)(cid:67)(cid:84) (cid:84)(cid:79) (cid:109)(cid:79)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71) (cid:67)(cid:72)(cid:65)(cid:82)(cid:71)(cid:69)(cid:83) (cid:70)(cid:82)(cid:79)(cid:77) (cid:84)(cid:72)(cid:69) (cid:39)(cid:82)(cid:79)(cid:85)(cid:80)(cid:7)(cid:83) (cid:66)(cid:65)(cid:78)(cid:75)(cid:69)(cid:82) (cid:8)(cid:83)(cid:69)(cid:69) (cid:78)(cid:79)(cid:84)(cid:69) (cid:18)(cid:18)(cid:9) (cid:65)(cid:78)(cid:68) (cid:70)(cid:82)(cid:79)(cid:77) (cid:84)(cid:72)(cid:69) (cid:39)(cid:79)(cid:86)(cid:69)(cid:82)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84) (cid:79)(cid:70) (cid:55)(cid:69)(cid:83)(cid:84)(cid:69)(cid:82)(cid:78) (cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65) (cid:8)(cid:83)(cid:69)(cid:69) (cid:78)(cid:79)(cid:84)(cid:69) (cid:18)(cid:22)(cid:9)(cid:14) 50 Annual Report 2010 Orbital 19. INTANGIBLES AND GOODWILL (cid:39)(cid:79)(cid:79)(cid:68)(cid:87)(cid:73)(cid:76)(cid:76) (cid:65)(cid:67)(cid:81)(cid:85)(cid:73)(cid:82)(cid:69)(cid:68) (cid:73)(cid:78) (cid:66)(cid:85)(cid:83)(cid:73)(cid:78)(cid:69)(cid:83)(cid:83) (cid:67)(cid:79)(cid:77)(cid:66)(cid:73)(cid:78)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:35)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:73)(cid:83)(cid:69)(cid:68) (cid:68)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84) (cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0) Reconciliations (cid:50)(cid:69)(cid:67)(cid:79)(cid:78)(cid:67)(cid:73)(cid:76)(cid:73)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:67)(cid:65)(cid:82)(cid:82)(cid:89)(cid:73)(cid:78)(cid:71) (cid:65)(cid:77)(cid:79)(cid:85)(cid:78)(cid:84)(cid:83) (cid:70)(cid:79)(cid:82) (cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:73)(cid:83)(cid:69)(cid:68) (cid:68)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84) (cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69) (cid:35)(cid:65)(cid:82)(cid:82)(cid:89)(cid:73)(cid:78)(cid:71) (cid:65)(cid:77)(cid:79)(cid:85)(cid:78)(cid:84) (cid:65)(cid:84) (cid:66)(cid:69)(cid:71)(cid:73)(cid:78)(cid:78)(cid:73)(cid:78)(cid:71) (cid:79)(cid:70) (cid:89)(cid:69)(cid:65)(cid:82)(cid:0) (cid:33)(cid:68)(cid:68)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83) (cid:65)(cid:78)(cid:68) (cid:84)(cid:82)(cid:65)(cid:78)(cid:83)(cid:70)(cid:69)(cid:82)(cid:83)(cid:0) (cid:33)(cid:77)(cid:79)(cid:82)(cid:84)(cid:73)(cid:83)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:35)(cid:65)(cid:82)(cid:82)(cid:89)(cid:73)(cid:78)(cid:71) (cid:65)(cid:77)(cid:79)(cid:85)(cid:78)(cid:84) (cid:65)(cid:84) (cid:69)(cid:78)(cid:68) (cid:79)(cid:70) (cid:89)(cid:69)(cid:65)(cid:82)(cid:0) Goodwill (cid:52)(cid:72)(cid:69) (cid:71)(cid:79)(cid:79)(cid:68)(cid:87)(cid:73)(cid:76)(cid:76) (cid:65)(cid:82)(cid:79)(cid:83)(cid:69) (cid:79)(cid:78) (cid:84)(cid:72)(cid:69) (cid:65)(cid:67)(cid:81)(cid:85)(cid:73)(cid:83)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:34)(cid:79)(cid:82)(cid:65)(cid:76) (cid:33)(cid:76)(cid:84)(cid:69)(cid:82)(cid:78)(cid:65)(cid:84)(cid:73)(cid:86)(cid:69) (cid:38)(cid:85)(cid:69)(cid:76) (cid:51)(cid:89)(cid:83)(cid:84)(cid:69)(cid:77)(cid:83) (cid:79)(cid:78) (cid:18)(cid:22) (cid:42)(cid:85)(cid:78)(cid:69) (cid:18)(cid:16)(cid:16)(cid:24)(cid:14) (cid:0) (cid:0) (cid:35)(cid:47)(cid:46)(cid:51)(cid:47)(cid:44)(cid:41)(cid:36)(cid:33)(cid:52)(cid:37)(cid:36) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:19)(cid:22)(cid:19) (cid:17)(cid:12)(cid:17)(cid:22)(cid:18) (cid:17)(cid:12)(cid:21)(cid:18)(cid:21) (cid:17)(cid:23)(cid:16) (cid:17)(cid:12)(cid:17)(cid:18)(cid:24) (cid:8)(cid:17)(cid:19)(cid:22)(cid:9)(cid:0) (cid:17)(cid:12)(cid:17)(cid:22)(cid:18) (cid:18)(cid:16)(cid:16)(cid:25) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16) (cid:19)(cid:22)(cid:19) (cid:17)(cid:23)(cid:16) (cid:21)(cid:19)(cid:19) (cid:13) (cid:17)(cid:23)(cid:16) (cid:13) (cid:17)(cid:23)(cid:16) (cid:33)(cid:70)(cid:84)(cid:69)(cid:82) (cid:73)(cid:78)(cid:73)(cid:84)(cid:73)(cid:65)(cid:76) (cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:12) (cid:71)(cid:79)(cid:79)(cid:68)(cid:87)(cid:73)(cid:76)(cid:76) (cid:65)(cid:67)(cid:81)(cid:85)(cid:73)(cid:82)(cid:69)(cid:68) (cid:73)(cid:78) (cid:65) (cid:66)(cid:85)(cid:83)(cid:73)(cid:78)(cid:69)(cid:83)(cid:83) (cid:67)(cid:79)(cid:77)(cid:66)(cid:73)(cid:78)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:73)(cid:83) (cid:77)(cid:69)(cid:65)(cid:83)(cid:85)(cid:82)(cid:69)(cid:68) (cid:65)(cid:84) (cid:67)(cid:79)(cid:83)(cid:84) (cid:76)(cid:69)(cid:83)(cid:83) (cid:65)(cid:78)(cid:89) (cid:65)(cid:67)(cid:67)(cid:85)(cid:77)(cid:85)(cid:76)(cid:65)(cid:84)(cid:69)(cid:68) (cid:73)(cid:77)(cid:80)(cid:65)(cid:73)(cid:82)(cid:77)(cid:69)(cid:78)(cid:84) (cid:76)(cid:79)(cid:83)(cid:83)(cid:69)(cid:83)(cid:14) (cid:39)(cid:79)(cid:79)(cid:68)(cid:87)(cid:73)(cid:76)(cid:76) (cid:73)(cid:83) (cid:78)(cid:79)(cid:84) (cid:65)(cid:77)(cid:79)(cid:82)(cid:84)(cid:73)(cid:83)(cid:69)(cid:68) (cid:66)(cid:85)(cid:84) (cid:73)(cid:83) (cid:83)(cid:85)(cid:66)(cid:74)(cid:69)(cid:67)(cid:84) (cid:84)(cid:79) (cid:73)(cid:77)(cid:80)(cid:65)(cid:73)(cid:82)(cid:77)(cid:69)(cid:78)(cid:84) (cid:84)(cid:69)(cid:83)(cid:84)(cid:73)(cid:78)(cid:71) (cid:79)(cid:78) (cid:65)(cid:78) (cid:65)(cid:78)(cid:78)(cid:85)(cid:65)(cid:76) (cid:66)(cid:65)(cid:83)(cid:73)(cid:83) (cid:79)(cid:82) (cid:87)(cid:72)(cid:69)(cid:78)(cid:69)(cid:86)(cid:69)(cid:82) (cid:84)(cid:72)(cid:69)(cid:82)(cid:69) (cid:73)(cid:83) (cid:65)(cid:78) (cid:73)(cid:78)(cid:68)(cid:73)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:73)(cid:77)(cid:80)(cid:65)(cid:73)(cid:82)(cid:77)(cid:69)(cid:78)(cid:84)(cid:14) (cid:53)(cid:83)(cid:73)(cid:78)(cid:71) (cid:65) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69) (cid:73)(cid:78) (cid:85)(cid:83)(cid:69) (cid:67)(cid:65)(cid:76)(cid:67)(cid:85)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:66)(cid:65)(cid:83)(cid:69)(cid:68) (cid:79)(cid:78) (cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:7)(cid:83) (cid:84)(cid:72)(cid:82)(cid:69)(cid:69) (cid:89)(cid:69)(cid:65)(cid:82) (cid:70)(cid:79)(cid:82)(cid:69)(cid:67)(cid:65)(cid:83)(cid:84)(cid:12) (cid:84)(cid:72)(cid:69)(cid:82)(cid:69) (cid:73)(cid:83) (cid:78)(cid:79) (cid:73)(cid:77)(cid:80)(cid:65)(cid:73)(cid:82)(cid:77)(cid:69)(cid:78)(cid:84) (cid:79)(cid:70) (cid:71)(cid:79)(cid:79)(cid:68)(cid:87)(cid:73)(cid:76)(cid:76) (cid:65)(cid:84) (cid:66)(cid:65)(cid:76)(cid:65)(cid:78)(cid:67)(cid:69) (cid:68)(cid:65)(cid:84)(cid:69)(cid:14) (cid:46)(cid:79) (cid:82)(cid:69)(cid:65)(cid:83)(cid:79)(cid:78)(cid:65)(cid:66)(cid:76)(cid:89) (cid:80)(cid:79)(cid:83)(cid:83)(cid:73)(cid:66)(cid:76)(cid:69) (cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:83) (cid:73)(cid:78) (cid:84)(cid:72)(cid:69) (cid:75)(cid:69)(cid:89) (cid:73)(cid:78)(cid:80)(cid:85)(cid:84)(cid:83) (cid:87)(cid:79)(cid:85)(cid:76)(cid:68) (cid:76)(cid:69)(cid:65)(cid:68) (cid:84)(cid:79) (cid:73)(cid:77)(cid:80)(cid:65)(cid:73)(cid:82)(cid:77)(cid:69)(cid:78)(cid:84)(cid:14) Capitalised development expenditure (cid:37)(cid:88)(cid:80)(cid:69)(cid:78)(cid:68)(cid:73)(cid:84)(cid:85)(cid:82)(cid:69) (cid:79)(cid:78) (cid:68)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84) (cid:65)(cid:67)(cid:84)(cid:73)(cid:86)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83) (cid:82)(cid:69)(cid:76)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71) (cid:84)(cid:79) (cid:78)(cid:69)(cid:88)(cid:84) (cid:71)(cid:69)(cid:78)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:44)(cid:48)(cid:39) (cid:70)(cid:85)(cid:69)(cid:76) (cid:83)(cid:89)(cid:83)(cid:84)(cid:69)(cid:77)(cid:83) (cid:72)(cid:65)(cid:86)(cid:69) (cid:66)(cid:69)(cid:69)(cid:78) (cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:73)(cid:83)(cid:69)(cid:68) (cid:65)(cid:83) (cid:84)(cid:72)(cid:69) (cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84) (cid:73)(cid:83) (cid:84)(cid:69)(cid:67)(cid:72)(cid:78)(cid:73)(cid:67)(cid:65)(cid:76)(cid:76)(cid:89) (cid:65)(cid:78)(cid:68) (cid:67)(cid:79)(cid:77)(cid:77)(cid:69)(cid:82)(cid:67)(cid:73)(cid:65)(cid:76)(cid:76)(cid:89) (cid:70)(cid:69)(cid:65)(cid:83)(cid:73)(cid:66)(cid:76)(cid:69) (cid:65)(cid:78)(cid:68) (cid:84)(cid:72)(cid:69) (cid:39)(cid:82)(cid:79)(cid:85)(cid:80) (cid:72)(cid:65)(cid:83) (cid:83)(cid:85)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:84) (cid:82)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83) (cid:84)(cid:79) (cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:69)(cid:84)(cid:69) (cid:68)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84)(cid:14) 20. TRADE PAYABLES AND OTHER LIABILITIES Current (cid:52)(cid:82)(cid:65)(cid:68)(cid:69) (cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84)(cid:79)(cid:82)(cid:83) (cid:65)(cid:78)(cid:68) (cid:65)(cid:67)(cid:67)(cid:82)(cid:85)(cid:65)(cid:76)(cid:83)(cid:0) (cid:50)(cid:69)(cid:86)(cid:69)(cid:78)(cid:85)(cid:69)(cid:83) (cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:69)(cid:68) (cid:73)(cid:78) (cid:65)(cid:68)(cid:86)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0) (a) Fair value (cid:18)(cid:12)(cid:16)(cid:20)(cid:23) (cid:22)(cid:18)(cid:25) (cid:18)(cid:12)(cid:22)(cid:23)(cid:22) (cid:18)(cid:12)(cid:16)(cid:22)(cid:19) (cid:17)(cid:12)(cid:23)(cid:23)(cid:24) (cid:19)(cid:12)(cid:24)(cid:20)(cid:17) (cid:36)(cid:85)(cid:69) (cid:84)(cid:79) (cid:84)(cid:72)(cid:69) (cid:83)(cid:72)(cid:79)(cid:82)(cid:84) (cid:84)(cid:69)(cid:82)(cid:77) (cid:78)(cid:65)(cid:84)(cid:85)(cid:82)(cid:69) (cid:79)(cid:70) (cid:84)(cid:82)(cid:65)(cid:68)(cid:69) (cid:80)(cid:65)(cid:89)(cid:65)(cid:66)(cid:76)(cid:69)(cid:83) (cid:65)(cid:78)(cid:68) (cid:79)(cid:84)(cid:72)(cid:69)(cid:82) (cid:76)(cid:73)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:12) (cid:84)(cid:72)(cid:69)(cid:73)(cid:82) (cid:67)(cid:65)(cid:82)(cid:82)(cid:89)(cid:73)(cid:78)(cid:71) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69) (cid:73)(cid:83) (cid:65)(cid:83)(cid:83)(cid:85)(cid:77)(cid:69)(cid:68) (cid:84)(cid:79) (cid:65)(cid:80)(cid:80)(cid:82)(cid:79)(cid:88)(cid:73)(cid:77)(cid:65)(cid:84)(cid:69) (cid:84)(cid:72)(cid:69)(cid:73)(cid:82) (cid:70)(cid:65)(cid:73)(cid:82) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69)(cid:14) (b) Interest rate, foreign exchange and liquidity risk (cid:41)(cid:78)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:82)(cid:69)(cid:71)(cid:65)(cid:82)(cid:68)(cid:73)(cid:78)(cid:71) (cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:82)(cid:65)(cid:84)(cid:69)(cid:12) (cid:70)(cid:79)(cid:82)(cid:69)(cid:73)(cid:71)(cid:78) (cid:69)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69) (cid:65)(cid:78)(cid:68) (cid:76)(cid:73)(cid:81)(cid:85)(cid:73)(cid:68)(cid:73)(cid:84)(cid:89) (cid:82)(cid:73)(cid:83)(cid:75) (cid:69)(cid:88)(cid:80)(cid:79)(cid:83)(cid:85)(cid:82)(cid:69) (cid:73)(cid:83) (cid:83)(cid:69)(cid:84) (cid:79)(cid:85)(cid:84) (cid:73)(cid:78) (cid:78)(cid:79)(cid:84)(cid:69) (cid:20)(cid:14) Orbital 2010 Annual Report 51 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2010 21. INTEREST BEARING LOANS AND BORROWINGS (cid:35)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:84) (cid:44)(cid:79)(cid:65)(cid:78)(cid:83) (cid:65)(cid:78)(cid:68) (cid:65)(cid:68)(cid:86)(cid:65)(cid:78)(cid:67)(cid:69)(cid:83) (cid:13) (cid:83)(cid:69)(cid:67)(cid:85)(cid:82)(cid:69)(cid:68) (cid:8)(cid:65)(cid:9)(cid:0) (a) Security (cid:35)(cid:47)(cid:46)(cid:51)(cid:47)(cid:44)(cid:41)(cid:36)(cid:33)(cid:52)(cid:37)(cid:36) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16) (cid:0) (cid:0) (cid:18)(cid:12)(cid:16)(cid:21)(cid:22) (cid:17)(cid:12)(cid:21)(cid:18)(cid:16) (cid:33) (cid:108)(cid:82)(cid:83)(cid:84) (cid:82)(cid:65)(cid:78)(cid:75)(cid:73)(cid:78)(cid:71) (cid:77)(cid:79)(cid:82)(cid:84)(cid:71)(cid:65)(cid:71)(cid:69) (cid:68)(cid:69)(cid:66)(cid:69)(cid:78)(cid:84)(cid:85)(cid:82)(cid:69) (cid:87)(cid:73)(cid:84)(cid:72) (cid:108)(cid:88)(cid:69)(cid:68) (cid:65)(cid:78)(cid:68) (cid:109)(cid:79)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71) (cid:67)(cid:72)(cid:65)(cid:82)(cid:71)(cid:69)(cid:83) (cid:79)(cid:86)(cid:69)(cid:82) (cid:84)(cid:72)(cid:69) (cid:87)(cid:72)(cid:79)(cid:76)(cid:69) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83) (cid:72)(cid:65)(cid:83) (cid:66)(cid:69)(cid:69)(cid:78) (cid:71)(cid:82)(cid:65)(cid:78)(cid:84)(cid:69)(cid:68) (cid:84)(cid:79) (cid:84)(cid:72)(cid:69) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:78)(cid:89)(cid:7)(cid:83) (cid:66)(cid:65)(cid:78)(cid:75)(cid:69)(cid:82) (cid:70)(cid:79)(cid:82) (cid:84)(cid:72)(cid:69) (cid:69)(cid:83)(cid:84)(cid:65)(cid:66)(cid:76)(cid:73)(cid:83)(cid:72)(cid:77)(cid:69)(cid:78)(cid:84) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83) (cid:65)(cid:78)(cid:68) (cid:70)(cid:79)(cid:82)(cid:87)(cid:65)(cid:82)(cid:68) (cid:69)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69) (cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:65)(cid:67)(cid:84)(cid:83) (cid:84)(cid:79)(cid:84)(cid:65)(cid:76)(cid:76)(cid:73)(cid:78)(cid:71) (cid:4)(cid:19)(cid:12)(cid:24)(cid:16)(cid:16)(cid:12)(cid:16)(cid:16)(cid:16) (cid:8)(cid:18)(cid:16)(cid:16)(cid:25)(cid:26) (cid:4)(cid:20)(cid:12)(cid:22)(cid:16)(cid:21)(cid:12)(cid:16)(cid:16)(cid:16)(cid:9)(cid:14) (b) Maturity (cid:33)(cid:76)(cid:76) (cid:76)(cid:79)(cid:65)(cid:78)(cid:83) (cid:65)(cid:78)(cid:68) (cid:65)(cid:68)(cid:86)(cid:65)(cid:78)(cid:67)(cid:69)(cid:83) (cid:72)(cid:65)(cid:86)(cid:69) (cid:65) (cid:77)(cid:65)(cid:84)(cid:85)(cid:82)(cid:73)(cid:84)(cid:89) (cid:79)(cid:70) (cid:78)(cid:79) (cid:71)(cid:82)(cid:69)(cid:65)(cid:84)(cid:69)(cid:82) (cid:84)(cid:72)(cid:65)(cid:78) (cid:17)(cid:24)(cid:16) (cid:68)(cid:65)(cid:89)(cid:83)(cid:14) (c) Interest (cid:41)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:67)(cid:65)(cid:76)(cid:67)(cid:85)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83) (cid:65)(cid:82)(cid:69) (cid:66)(cid:65)(cid:83)(cid:69)(cid:68) (cid:79)(cid:78) (cid:108)(cid:88)(cid:69)(cid:68) (cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:82)(cid:65)(cid:84)(cid:69)(cid:83) (cid:65)(cid:80)(cid:80)(cid:76)(cid:73)(cid:67)(cid:65)(cid:66)(cid:76)(cid:69) (cid:65)(cid:84) (cid:84)(cid:72)(cid:69) (cid:68)(cid:65)(cid:84)(cid:69) (cid:79)(cid:70) (cid:68)(cid:82)(cid:65)(cid:87)(cid:68)(cid:79)(cid:87)(cid:78) (cid:65)(cid:78)(cid:68) (cid:80)(cid:65)(cid:89)(cid:65)(cid:66)(cid:76)(cid:69) (cid:79)(cid:78) (cid:77)(cid:65)(cid:84)(cid:85)(cid:82)(cid:73)(cid:84)(cid:89)(cid:14) (cid:52)(cid:72)(cid:69) (cid:65)(cid:86)(cid:69)(cid:82)(cid:65)(cid:71)(cid:69) (cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:82)(cid:65)(cid:84)(cid:69) (cid:79)(cid:78) (cid:66)(cid:79)(cid:82)(cid:82)(cid:79)(cid:87)(cid:73)(cid:78)(cid:71)(cid:83) (cid:79)(cid:85)(cid:84)(cid:83)(cid:84)(cid:65)(cid:78)(cid:68)(cid:73)(cid:78)(cid:71) (cid:65)(cid:84) (cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)(cid:73)(cid:78)(cid:71) (cid:68)(cid:65)(cid:84)(cid:69) (cid:73)(cid:83) (cid:24)(cid:14)(cid:16)(cid:16)(cid:5) (cid:8)(cid:18)(cid:16)(cid:16)(cid:25)(cid:26) (cid:22)(cid:14)(cid:23)(cid:18)(cid:5)(cid:9)(cid:14) (d) Fair value (cid:36)(cid:85)(cid:69) (cid:84)(cid:79) (cid:84)(cid:72)(cid:69) (cid:83)(cid:72)(cid:79)(cid:82)(cid:84) (cid:84)(cid:69)(cid:82)(cid:77) (cid:78)(cid:65)(cid:84)(cid:85)(cid:82)(cid:69) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69)(cid:83)(cid:69) (cid:76)(cid:79)(cid:65)(cid:78)(cid:83)(cid:12) (cid:84)(cid:72)(cid:69)(cid:73)(cid:82) (cid:67)(cid:65)(cid:82)(cid:82)(cid:89)(cid:73)(cid:78)(cid:71) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69) (cid:73)(cid:83) (cid:65)(cid:83)(cid:83)(cid:85)(cid:77)(cid:69)(cid:68) (cid:84)(cid:79) (cid:65)(cid:80)(cid:80)(cid:82)(cid:79)(cid:88)(cid:73)(cid:77)(cid:65)(cid:84)(cid:69) (cid:84)(cid:72)(cid:69)(cid:73)(cid:82) (cid:70)(cid:65)(cid:73)(cid:82) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69)(cid:14) (e) Interest rate, foreign exchange and liquidity risk (cid:41)(cid:78)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:82)(cid:69)(cid:71)(cid:65)(cid:82)(cid:68)(cid:73)(cid:78)(cid:71) (cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:82)(cid:65)(cid:84)(cid:69)(cid:12) (cid:70)(cid:79)(cid:82)(cid:69)(cid:73)(cid:71)(cid:78) (cid:69)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69) (cid:65)(cid:78)(cid:68) (cid:76)(cid:73)(cid:81)(cid:85)(cid:73)(cid:68)(cid:73)(cid:84)(cid:89) (cid:82)(cid:73)(cid:83)(cid:75) (cid:69)(cid:88)(cid:80)(cid:79)(cid:83)(cid:85)(cid:82)(cid:69) (cid:73)(cid:83) (cid:83)(cid:69)(cid:84) (cid:79)(cid:85)(cid:84) (cid:73)(cid:78) (cid:78)(cid:79)(cid:84)(cid:69) (cid:20)(cid:14) 22. FINANCING ARRANGEMENTS (cid:52)(cid:72)(cid:69) (cid:67)(cid:79)(cid:78)(cid:83)(cid:79)(cid:76)(cid:73)(cid:68)(cid:65)(cid:84)(cid:69)(cid:68) (cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:89) (cid:72)(cid:65)(cid:83) (cid:83)(cid:84)(cid:65)(cid:78)(cid:68)(cid:66)(cid:89) (cid:65)(cid:82)(cid:82)(cid:65)(cid:78)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83) (cid:87)(cid:73)(cid:84)(cid:72) (cid:55)(cid:69)(cid:83)(cid:84)(cid:80)(cid:65)(cid:67) (cid:34)(cid:65)(cid:78)(cid:75)(cid:73)(cid:78)(cid:71) (cid:35)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:84)(cid:79) (cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:69) (cid:83)(cid:85)(cid:80)(cid:80)(cid:79)(cid:82)(cid:84) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:26) Total facilities available (cid:38)(cid:79)(cid:82)(cid:87)(cid:65)(cid:82)(cid:68) (cid:69)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69) (cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:65)(cid:67)(cid:84)(cid:83) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0) (cid:52)(cid:82)(cid:65)(cid:68)(cid:69) (cid:108)(cid:78)(cid:65)(cid:78)(cid:67)(cid:69) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0) (cid:35)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:69) (cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84) (cid:67)(cid:65)(cid:82)(cid:68) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0) (cid:45)(cid:85)(cid:76)(cid:84)(cid:73)(cid:13)(cid:79)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78) (cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0) Facilities utilised at balance date (cid:38)(cid:79)(cid:82)(cid:87)(cid:65)(cid:82)(cid:68) (cid:69)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69) (cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:65)(cid:67)(cid:84)(cid:83) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0) (cid:52)(cid:82)(cid:65)(cid:68)(cid:69) (cid:108)(cid:78)(cid:65)(cid:78)(cid:67)(cid:69) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0) (cid:35)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:69) (cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84) (cid:67)(cid:65)(cid:82)(cid:68) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0) (cid:45)(cid:85)(cid:76)(cid:84)(cid:73)(cid:13)(cid:79)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78) (cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0) Facilities not utilised at balance date (cid:38)(cid:79)(cid:82)(cid:87)(cid:65)(cid:82)(cid:68) (cid:69)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69) (cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:65)(cid:67)(cid:84)(cid:83) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0) (cid:52)(cid:82)(cid:65)(cid:68)(cid:69) (cid:108)(cid:78)(cid:65)(cid:78)(cid:67)(cid:69) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0) (cid:35)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:69) (cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84) (cid:67)(cid:65)(cid:82)(cid:68) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0) (cid:45)(cid:85)(cid:76)(cid:84)(cid:73)(cid:13)(cid:79)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78) (cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0) (cid:19)(cid:21)(cid:16) (cid:18)(cid:12)(cid:21)(cid:16)(cid:16) (cid:18)(cid:16)(cid:16) (cid:23)(cid:21)(cid:16) (cid:19)(cid:12)(cid:24)(cid:16)(cid:16) (cid:13) (cid:18)(cid:12)(cid:16)(cid:21)(cid:22) (cid:18)(cid:25) (cid:13) (cid:17)(cid:23)(cid:16) (cid:19)(cid:12)(cid:21)(cid:16)(cid:16) (cid:17)(cid:24)(cid:21) (cid:23)(cid:21)(cid:16) (cid:20)(cid:12)(cid:22)(cid:16)(cid:21) (cid:13) (cid:17)(cid:12)(cid:21)(cid:18)(cid:16) (cid:19)(cid:18) (cid:13) (cid:18)(cid:12)(cid:16)(cid:24)(cid:21) (cid:17)(cid:12)(cid:21)(cid:21)(cid:18) (cid:19)(cid:21)(cid:16) (cid:20)(cid:20)(cid:20) (cid:17)(cid:23)(cid:17) (cid:23)(cid:21)(cid:16) (cid:17)(cid:12)(cid:23)(cid:17)(cid:21) (cid:17)(cid:23)(cid:16) (cid:17)(cid:12)(cid:25)(cid:24)(cid:16) (cid:17)(cid:21)(cid:19) (cid:23)(cid:21)(cid:16) (cid:19)(cid:12)(cid:16)(cid:21)(cid:19) (cid:33) (cid:108)(cid:82)(cid:83)(cid:84) (cid:82)(cid:65)(cid:78)(cid:75)(cid:73)(cid:78)(cid:71) (cid:77)(cid:79)(cid:82)(cid:84)(cid:71)(cid:65)(cid:71)(cid:69) (cid:68)(cid:69)(cid:66)(cid:69)(cid:78)(cid:84)(cid:85)(cid:82)(cid:69) (cid:87)(cid:73)(cid:84)(cid:72) (cid:108)(cid:88)(cid:69)(cid:68) (cid:65)(cid:78)(cid:68) (cid:109)(cid:79)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71) (cid:67)(cid:72)(cid:65)(cid:82)(cid:71)(cid:69)(cid:83) (cid:79)(cid:86)(cid:69)(cid:82) (cid:84)(cid:72)(cid:69) (cid:87)(cid:72)(cid:79)(cid:76)(cid:69) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83) (cid:72)(cid:65)(cid:83) (cid:66)(cid:69)(cid:69)(cid:78) (cid:71)(cid:82)(cid:65)(cid:78)(cid:84)(cid:69)(cid:68) (cid:84)(cid:79) (cid:84)(cid:72)(cid:69) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:78)(cid:89)(cid:7)(cid:83) (cid:66)(cid:65)(cid:78)(cid:75)(cid:69)(cid:82) (cid:70)(cid:79)(cid:82) (cid:84)(cid:72)(cid:69) (cid:69)(cid:83)(cid:84)(cid:65)(cid:66)(cid:76)(cid:73)(cid:83)(cid:72)(cid:77)(cid:69)(cid:78)(cid:84) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83) (cid:65)(cid:78)(cid:68) (cid:70)(cid:79)(cid:82)(cid:87)(cid:65)(cid:82)(cid:68) (cid:69)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69) (cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:65)(cid:67)(cid:84)(cid:83) (cid:84)(cid:79)(cid:84)(cid:65)(cid:76)(cid:76)(cid:73)(cid:78)(cid:71) (cid:4)(cid:19)(cid:12)(cid:24)(cid:16)(cid:16)(cid:12)(cid:16)(cid:16)(cid:16) (cid:8)(cid:18)(cid:16)(cid:16)(cid:25)(cid:26) (cid:4)(cid:20)(cid:12)(cid:22)(cid:16)(cid:21)(cid:12)(cid:16)(cid:16)(cid:16)(cid:9)(cid:14) 52 Annual Report 2010 Orbital 23. EMPLOYEE BENEFITS (a) Current (b) Non-Current CONSOLIDATED 2010 $’000 2009 $’000 2,420 1,033 455 1,302 (c) Aggregate Liability for employee entitlements 2,875 2,335 The present value of employee entitlements not expected to be settled within twelve months of balance date have been calculated using the following weighted averages: Assumed rate of increase in wage and salary rates Discount rate at 30 June Settlement term (years) Number of employees Number of employees at year end 24. DEFERRED REVENUE (a) Current Deferred revenue for operation of heavy duty engine testing facility (b) Movement in deferred revenue At 1 July Transferred from government grants (see note 27) Released to the income statement At 30 June 3.5% 5.2% 10 2.5% 5.7% 10 102 93 316 - 512 (196) 316 - - - - - In June 2008 the Group received funding of $2,760,000 from the Commonwealth of Australia through the Alternative Fuels Conversion Program administered by the Department of the Environment, Water, Heritage and the Arts towards the construction of a heavy duty engine test facility. The terms of the Grant included providing the Commonwealth with preferential access to the facility at a discount to the commercial rate. This discount to commercial rates of $512,000 has been transferred from government grants (see note 27) and recorded as deferred revenue. The deferred revenue will be recognised as income over the periods in which the Commonwealth utilises the Heavy Duty Engine Testing Facility at discounted rates. Orbital 2010 Annual Report 53 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2010 25. OTHER PROVISIONS (a) Current Warranties Other (b) Reconciliations Reconciliations of the carrying amounts for each class of provisions are set out below: Warranties - current Carrying amount at beginning of year Arising during the year Utilised Carrying amount at end of year Other provisions - current Carrying amount at beginning of year Provision made during the year Carrying amount at end of year 26. LONG TERM BORROWINGS Non-Current Loans and advances - secured (a) CONSOLIDATED 2010 $’000 2009 $’000 119 54 173 92 67 (40) 119 - 54 54 92 - 92 90 33 (31) 92 36 (36) - 7,604 7,604 14,873 14,873 (a) The Government of Western Australia had previously provided the company with a fully utilised loan facility of $19,000,000 under the terms of a “Development Agreement”. During the year Orbital reached agreement with the WA Government through the Department of Commerce for the Restructure of the Non-Interest Bearing Loan. Under the agreed restructure the original loan has been terminated and replaced by a new loan of $14,346,000 with the following terms and conditions. (cid:115)(cid:0) (cid:52)(cid:69)(cid:82)(cid:77) (cid:110) (cid:18)(cid:16)(cid:17)(cid:16) (cid:84)(cid:79) (cid:18)(cid:16)(cid:18)(cid:21)(cid:14) (cid:115)(cid:0) (cid:50)(cid:69)(cid:80)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83) (cid:13) (cid:35)(cid:79)(cid:77)(cid:77)(cid:69)(cid:78)(cid:67)(cid:73)(cid:78)(cid:71) (cid:45)(cid:65)(cid:89) (cid:18)(cid:16)(cid:17)(cid:16) (cid:65)(cid:84) (cid:4)(cid:18)(cid:16)(cid:16)(cid:12)(cid:16)(cid:16)(cid:16) (cid:80)(cid:69)(cid:82) (cid:65)(cid:78)(cid:78)(cid:85)(cid:77)(cid:14) (cid:115)(cid:0) (cid:50)(cid:69)(cid:80)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83) (cid:13) (cid:41)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:73)(cid:78)(cid:71) (cid:65)(cid:78)(cid:78)(cid:85)(cid:65)(cid:76)(cid:76)(cid:89) (cid:84)(cid:79) (cid:65) (cid:77)(cid:65)(cid:88)(cid:73)(cid:77)(cid:85)(cid:77) (cid:79)(cid:70) (cid:4)(cid:18)(cid:12)(cid:17)(cid:16)(cid:16)(cid:12)(cid:16)(cid:16)(cid:16) (cid:80)(cid:69)(cid:82) (cid:65)(cid:78)(cid:78)(cid:85)(cid:77) (cid:73)(cid:78) (cid:18)(cid:16)(cid:18)(cid:19)(cid:14) (cid:115)(cid:0) (cid:41)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:70)(cid:82)(cid:69)(cid:69)(cid:14) The restructured loan’s net fair value at 27 January 2010 utilising a market interest rate of 6.52% was $7,558,000 which compares to the carrying value of the old loan of $15,253,000 at that date. In accordance with the Accounting Standards, the beneﬁt of the interest free government loan amounting to $7,695,000 has been accounted for as a government grant. This loan facility is secured by way of a second ranking ﬂoating debenture over the whole of the assets and undertakings of the Company. The non-interest bearing loan from the Government of Western Australia was initially recognised at fair value and subsequently stated at amortised cost with any difference between cost and repayment value being recognised in the income statement over the period of the borrowings on an effective interest basis. (cid:52)(cid:72)(cid:69) (cid:70)(cid:65)(cid:73)(cid:82) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:76)(cid:79)(cid:65)(cid:78) (cid:18)(cid:16)(cid:17)(cid:16)(cid:26) (cid:4)(cid:23)(cid:12)(cid:17)(cid:24)(cid:20)(cid:12)(cid:16)(cid:20)(cid:17) (cid:8)(cid:18)(cid:16)(cid:16)(cid:25)(cid:26)(cid:4)(cid:17)(cid:20)(cid:12)(cid:23)(cid:24)(cid:25)(cid:12)(cid:23)(cid:25)(cid:23)(cid:9) (cid:73)(cid:83) (cid:67)(cid:65)(cid:76)(cid:67)(cid:85)(cid:76)(cid:65)(cid:84)(cid:69)(cid:68) (cid:66)(cid:89) (cid:68)(cid:73)(cid:83)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:73)(cid:78)(cid:71) (cid:84)(cid:72)(cid:69) (cid:69)(cid:88)(cid:80)(cid:69)(cid:67)(cid:84)(cid:69)(cid:68) (cid:70)(cid:85)(cid:84)(cid:85)(cid:82)(cid:69) (cid:67)(cid:65)(cid:83)(cid:72) (cid:109)(cid:79)(cid:87)(cid:83) at the prevailing market interest rate at reporting date 2010: 7.17% (2009: 5.22%) 54 Annual Report 2010 Orbital 27. GOVERNMENT GRANTS Current liabilities (cid:41)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84) (cid:71)(cid:82)(cid:65)(cid:78)(cid:84) (cid:70)(cid:79)(cid:82) (cid:67)(cid:79)(cid:78)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:72)(cid:69)(cid:65)(cid:86)(cid:89) (cid:68)(cid:85)(cid:84)(cid:89) (cid:69)(cid:78)(cid:71)(cid:73)(cid:78)(cid:69) (cid:84)(cid:69)(cid:83)(cid:84)(cid:73)(cid:78)(cid:71) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0) (cid:18)(cid:18)(cid:21) (cid:13) (cid:35)(cid:47)(cid:46)(cid:51)(cid:47)(cid:44)(cid:41)(cid:36)(cid:33)(cid:52)(cid:37)(cid:36) (cid:0) (cid:0) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16) Non-current liabilities (cid:41)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84) (cid:71)(cid:82)(cid:65)(cid:78)(cid:84) (cid:70)(cid:79)(cid:82) (cid:67)(cid:79)(cid:78)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:72)(cid:69)(cid:65)(cid:86)(cid:89) (cid:68)(cid:85)(cid:84)(cid:89) (cid:69)(cid:78)(cid:71)(cid:73)(cid:78)(cid:69) (cid:84)(cid:69)(cid:83)(cid:84)(cid:73)(cid:78)(cid:71) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:0) Total government grants deferred (a) Movement in government grants (cid:33)(cid:84) (cid:17) (cid:42)(cid:85)(cid:76)(cid:89)(cid:0) (cid:50)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:69)(cid:68) (cid:68)(cid:85)(cid:82)(cid:73)(cid:78)(cid:71) (cid:84)(cid:72)(cid:69) (cid:89)(cid:69)(cid:65)(cid:82)(cid:0) (cid:52)(cid:82)(cid:65)(cid:78)(cid:83)(cid:70)(cid:69)(cid:82)(cid:82)(cid:69)(cid:68) (cid:84)(cid:79) (cid:68)(cid:69)(cid:70)(cid:69)(cid:82)(cid:82)(cid:69)(cid:68) (cid:82)(cid:69)(cid:86)(cid:69)(cid:78)(cid:85)(cid:69)(cid:0) (cid:50)(cid:69)(cid:76)(cid:69)(cid:65)(cid:83)(cid:69)(cid:68) (cid:84)(cid:79) (cid:84)(cid:72)(cid:69) (cid:73)(cid:78)(cid:67)(cid:79)(cid:77)(cid:69) (cid:83)(cid:84)(cid:65)(cid:84)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0) (cid:33)(cid:84) (cid:19)(cid:16) (cid:42)(cid:85)(cid:78)(cid:69)(cid:0) (cid:17)(cid:12)(cid:24)(cid:23)(cid:20) (cid:18)(cid:12)(cid:16)(cid:25)(cid:25) (cid:18)(cid:12)(cid:23)(cid:22)(cid:16) (cid:13) (cid:8)(cid:21)(cid:17)(cid:18)(cid:9)(cid:0) (cid:8)(cid:17)(cid:20)(cid:25)(cid:9)(cid:0) (cid:18)(cid:12)(cid:23)(cid:22)(cid:16) (cid:18)(cid:12)(cid:23)(cid:22)(cid:16) (cid:13) (cid:18)(cid:12)(cid:23)(cid:22)(cid:16) (cid:13) (cid:13) (cid:18)(cid:12)(cid:16)(cid:25)(cid:25) (cid:18)(cid:12)(cid:23)(cid:22)(cid:16) (cid:41)(cid:78) (cid:42)(cid:85)(cid:78)(cid:69) (cid:18)(cid:16)(cid:16)(cid:24) (cid:84)(cid:72)(cid:69) (cid:39)(cid:82)(cid:79)(cid:85)(cid:80) (cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:69)(cid:68) (cid:70)(cid:85)(cid:78)(cid:68)(cid:73)(cid:78)(cid:71) (cid:79)(cid:70) (cid:4)(cid:18)(cid:12)(cid:23)(cid:22)(cid:16)(cid:12)(cid:16)(cid:16)(cid:16) (cid:70)(cid:82)(cid:79)(cid:77) (cid:84)(cid:72)(cid:69) (cid:35)(cid:79)(cid:77)(cid:77)(cid:79)(cid:78)(cid:87)(cid:69)(cid:65)(cid:76)(cid:84)(cid:72) (cid:79)(cid:70) (cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65) (cid:84)(cid:72)(cid:82)(cid:79)(cid:85)(cid:71)(cid:72) (cid:84)(cid:72)(cid:69) (cid:33)(cid:76)(cid:84)(cid:69)(cid:82)(cid:78)(cid:65)(cid:84)(cid:73)(cid:86)(cid:69) (cid:38)(cid:85)(cid:69)(cid:76)(cid:83) (cid:35)(cid:79)(cid:78)(cid:86)(cid:69)(cid:82)(cid:83)(cid:73)(cid:79)(cid:78) (cid:48)(cid:82)(cid:79)(cid:71)(cid:82)(cid:65)(cid:77) (cid:65)(cid:68)(cid:77)(cid:73)(cid:78)(cid:73)(cid:83)(cid:84)(cid:69)(cid:82)(cid:69)(cid:68) (cid:66)(cid:89) (cid:84)(cid:72)(cid:69) (cid:36)(cid:69)(cid:80)(cid:65)(cid:82)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:37)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:12) (cid:55)(cid:65)(cid:84)(cid:69)(cid:82)(cid:12) (cid:40)(cid:69)(cid:82)(cid:73)(cid:84)(cid:65)(cid:71)(cid:69) (cid:65)(cid:78)(cid:68) (cid:84)(cid:72)(cid:69) (cid:33)(cid:82)(cid:84)(cid:83) (cid:84)(cid:79)(cid:87)(cid:65)(cid:82)(cid:68)(cid:83) (cid:84)(cid:72)(cid:69) (cid:67)(cid:79)(cid:78)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:65) (cid:72)(cid:69)(cid:65)(cid:86)(cid:89) (cid:68)(cid:85)(cid:84)(cid:89) (cid:69)(cid:78)(cid:71)(cid:73)(cid:78)(cid:69) (cid:84)(cid:69)(cid:83)(cid:84) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:14) (cid:52)(cid:72)(cid:69) (cid:39)(cid:82)(cid:79)(cid:85)(cid:80) (cid:87)(cid:73)(cid:76)(cid:76) (cid:70)(cid:85)(cid:78)(cid:68) (cid:84)(cid:72)(cid:69) (cid:77)(cid:65)(cid:73)(cid:78)(cid:84)(cid:69)(cid:78)(cid:65)(cid:78)(cid:67)(cid:69) (cid:65)(cid:78)(cid:68) (cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89) (cid:85)(cid:78)(cid:84)(cid:73)(cid:76) (cid:65)(cid:84) (cid:76)(cid:69)(cid:65)(cid:83)(cid:84) (cid:108)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76) (cid:89)(cid:69)(cid:65)(cid:82) (cid:18)(cid:16)(cid:17)(cid:20)(cid:15)(cid:18)(cid:16)(cid:17)(cid:21) (cid:65)(cid:78)(cid:68) (cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:69) (cid:84)(cid:72)(cid:69) (cid:35)(cid:79)(cid:77)(cid:77)(cid:79)(cid:78)(cid:87)(cid:69)(cid:65)(cid:76)(cid:84)(cid:72) (cid:87)(cid:73)(cid:84)(cid:72) (cid:80)(cid:82)(cid:69)(cid:70)(cid:69)(cid:82)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76) (cid:65)(cid:67)(cid:67)(cid:69)(cid:83)(cid:83) (cid:84)(cid:79) (cid:84)(cid:72)(cid:69) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:14) (cid:52)(cid:72)(cid:69) (cid:84)(cid:69)(cid:82)(cid:77)(cid:83) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:39)(cid:82)(cid:65)(cid:78)(cid:84) (cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:69)(cid:68) (cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:73)(cid:78)(cid:71) (cid:84)(cid:72)(cid:69) (cid:35)(cid:79)(cid:77)(cid:77)(cid:79)(cid:78)(cid:87)(cid:69)(cid:65)(cid:76)(cid:84)(cid:72) (cid:87)(cid:73)(cid:84)(cid:72) (cid:80)(cid:82)(cid:69)(cid:70)(cid:69)(cid:82)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76) (cid:65)(cid:67)(cid:67)(cid:69)(cid:83)(cid:83) (cid:84)(cid:79) (cid:84)(cid:72)(cid:69) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89) (cid:65)(cid:84) (cid:65) (cid:68)(cid:73)(cid:83)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84) (cid:84)(cid:79) (cid:84)(cid:72)(cid:69) (cid:67)(cid:79)(cid:77)(cid:77)(cid:69)(cid:82)(cid:67)(cid:73)(cid:65)(cid:76) (cid:82)(cid:65)(cid:84)(cid:69)(cid:14) (cid:52)(cid:72)(cid:73)(cid:83) (cid:68)(cid:73)(cid:83)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84) (cid:84)(cid:79) (cid:67)(cid:79)(cid:77)(cid:77)(cid:69)(cid:82)(cid:67)(cid:73)(cid:65)(cid:76) (cid:82)(cid:65)(cid:84)(cid:69)(cid:83) (cid:79)(cid:70) (cid:4)(cid:21)(cid:17)(cid:18)(cid:12)(cid:16)(cid:16)(cid:16) (cid:72)(cid:65)(cid:83) (cid:66)(cid:69)(cid:69)(cid:78) (cid:84)(cid:82)(cid:65)(cid:78)(cid:83)(cid:70)(cid:69)(cid:82)(cid:82)(cid:69)(cid:68) (cid:84)(cid:79) (cid:68)(cid:69)(cid:70)(cid:69)(cid:82)(cid:82)(cid:69)(cid:68) (cid:82)(cid:69)(cid:86)(cid:69)(cid:78)(cid:85)(cid:69) (cid:8)(cid:83)(cid:69)(cid:69) (cid:78)(cid:79)(cid:84)(cid:69) (cid:18)(cid:20)(cid:9) (cid:65)(cid:78)(cid:68) (cid:82)(cid:69)(cid:67)(cid:79)(cid:82)(cid:68)(cid:69)(cid:68) (cid:65)(cid:83) (cid:68)(cid:69)(cid:70)(cid:69)(cid:82)(cid:82)(cid:69)(cid:68) (cid:82)(cid:69)(cid:86)(cid:69)(cid:78)(cid:85)(cid:69)(cid:14) (cid:52)(cid:72)(cid:69) (cid:71)(cid:79)(cid:86)(cid:69)(cid:82)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84) (cid:71)(cid:82)(cid:65)(cid:78)(cid:84) (cid:87)(cid:73)(cid:76)(cid:76) (cid:66)(cid:69) (cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69)(cid:68) (cid:65)(cid:83) (cid:73)(cid:78)(cid:67)(cid:79)(cid:77)(cid:69) (cid:79)(cid:86)(cid:69)(cid:82) (cid:84)(cid:72)(cid:69) (cid:80)(cid:69)(cid:82)(cid:73)(cid:79)(cid:68)(cid:83) (cid:65)(cid:78)(cid:68) (cid:73)(cid:78) (cid:84)(cid:72)(cid:69) (cid:80)(cid:82)(cid:79)(cid:80)(cid:79)(cid:82)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83) (cid:73)(cid:78) (cid:87)(cid:72)(cid:73)(cid:67)(cid:72) (cid:68)(cid:69)(cid:80)(cid:82)(cid:69)(cid:67)(cid:73)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:78) (cid:84)(cid:72)(cid:69) (cid:72)(cid:69)(cid:65)(cid:86)(cid:89) (cid:68)(cid:85)(cid:84)(cid:89) (cid:69)(cid:78)(cid:71)(cid:73)(cid:78)(cid:69) (cid:84)(cid:69)(cid:83)(cid:84) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89) (cid:73)(cid:83) (cid:67)(cid:72)(cid:65)(cid:82)(cid:71)(cid:69)(cid:68)(cid:14) 28. SHARE CAPITAL (cid:47)(cid:82)(cid:68)(cid:73)(cid:78)(cid:65)(cid:82)(cid:89) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0) (cid:45)(cid:79)(cid:86)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84) (cid:73)(cid:78) (cid:79)(cid:82)(cid:68)(cid:73)(cid:78)(cid:65)(cid:82)(cid:89) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83) (cid:79)(cid:78) (cid:73)(cid:83)(cid:83)(cid:85)(cid:69)(cid:0) (cid:33)(cid:84) (cid:17) (cid:42)(cid:85)(cid:76)(cid:89) (cid:18)(cid:16)(cid:16)(cid:24)(cid:0) (cid:51)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83) (cid:73)(cid:83)(cid:83)(cid:85)(cid:69)(cid:68) (cid:80)(cid:85)(cid:82)(cid:83)(cid:85)(cid:65)(cid:78)(cid:84) (cid:84)(cid:79) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:80)(cid:76)(cid:65)(cid:78)(cid:83)(cid:0) (cid:35)(cid:65)(cid:78)(cid:67)(cid:69)(cid:76)(cid:76)(cid:69)(cid:68) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76) (cid:8)(cid:65)(cid:9)(cid:0) (cid:33)(cid:84) (cid:19)(cid:16) (cid:42)(cid:85)(cid:78)(cid:69) (cid:18)(cid:16)(cid:16)(cid:25)(cid:0) (cid:51)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83) (cid:73)(cid:83)(cid:83)(cid:85)(cid:69)(cid:68) (cid:80)(cid:85)(cid:82)(cid:83)(cid:85)(cid:65)(cid:78)(cid:84) (cid:84)(cid:79) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:80)(cid:76)(cid:65)(cid:78)(cid:83)(cid:0) (cid:33)(cid:84) (cid:19)(cid:16) (cid:42)(cid:85)(cid:78)(cid:69) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:17)(cid:25)(cid:12)(cid:18)(cid:22)(cid:17) (cid:17)(cid:25)(cid:12)(cid:16)(cid:21)(cid:21) (cid:0) (cid:46)(cid:85)(cid:77)(cid:66)(cid:69)(cid:82)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16) (cid:20)(cid:23)(cid:20)(cid:12)(cid:21)(cid:22)(cid:19)(cid:12)(cid:17)(cid:25)(cid:18) (cid:18)(cid:18)(cid:21)(cid:12)(cid:23)(cid:18)(cid:16) (cid:20)(cid:12)(cid:19)(cid:18)(cid:17)(cid:12)(cid:24)(cid:21)(cid:24) (cid:19)(cid:19)(cid:21) (cid:13) (cid:8)(cid:18)(cid:16)(cid:23)(cid:12)(cid:16)(cid:16)(cid:16)(cid:9) (cid:20)(cid:23)(cid:24)(cid:12)(cid:24)(cid:24)(cid:21)(cid:12)(cid:16)(cid:21)(cid:16) (cid:17)(cid:25)(cid:12)(cid:16)(cid:21)(cid:21) (cid:19)(cid:12)(cid:16)(cid:24)(cid:24)(cid:12)(cid:24)(cid:25)(cid:20) (cid:20)(cid:24)(cid:17)(cid:12)(cid:25)(cid:23)(cid:19)(cid:12)(cid:25)(cid:20)(cid:20) (cid:18)(cid:16)(cid:22) (cid:17)(cid:25)(cid:12)(cid:18)(cid:22)(cid:17) (cid:40)(cid:79)(cid:76)(cid:68)(cid:69)(cid:82)(cid:83) (cid:79)(cid:70) (cid:79)(cid:82)(cid:68)(cid:73)(cid:78)(cid:65)(cid:82)(cid:89) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83) (cid:65)(cid:82)(cid:69) (cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:76)(cid:69)(cid:68) (cid:84)(cid:79) (cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:69) (cid:68)(cid:73)(cid:86)(cid:73)(cid:68)(cid:69)(cid:78)(cid:68)(cid:83) (cid:65)(cid:83) (cid:68)(cid:69)(cid:67)(cid:76)(cid:65)(cid:82)(cid:69)(cid:68) (cid:70)(cid:82)(cid:79)(cid:77) (cid:84)(cid:73)(cid:77)(cid:69) (cid:84)(cid:79) (cid:84)(cid:73)(cid:77)(cid:69) (cid:65)(cid:78)(cid:68) (cid:65)(cid:82)(cid:69) (cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:76)(cid:69)(cid:68) (cid:84)(cid:79) (cid:79)(cid:78)(cid:69) (cid:86)(cid:79)(cid:84)(cid:69) (cid:80)(cid:69)(cid:82) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:65)(cid:84) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:72)(cid:79)(cid:76)(cid:68)(cid:69)(cid:82)(cid:83)(cid:7) (cid:77)(cid:69)(cid:69)(cid:84)(cid:73)(cid:78)(cid:71)(cid:83)(cid:14) (cid:41)(cid:78) (cid:84)(cid:72)(cid:69) (cid:69)(cid:86)(cid:69)(cid:78)(cid:84) (cid:79)(cid:70) (cid:87)(cid:73)(cid:78)(cid:68)(cid:73)(cid:78)(cid:71) (cid:85)(cid:80) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:78)(cid:89)(cid:12) (cid:79)(cid:82)(cid:68)(cid:73)(cid:78)(cid:65)(cid:82)(cid:89) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:72)(cid:79)(cid:76)(cid:68)(cid:69)(cid:82)(cid:83) (cid:82)(cid:65)(cid:78)(cid:75) (cid:65)(cid:70)(cid:84)(cid:69)(cid:82) (cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84)(cid:79)(cid:82)(cid:83) (cid:65)(cid:78)(cid:68) (cid:65)(cid:82)(cid:69) (cid:70)(cid:85)(cid:76)(cid:76)(cid:89) (cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:76)(cid:69)(cid:68) (cid:84)(cid:79) (cid:65)(cid:78)(cid:89) (cid:80)(cid:82)(cid:79)(cid:67)(cid:69)(cid:69)(cid:68)(cid:83) (cid:79)(cid:70) (cid:76)(cid:73)(cid:81)(cid:85)(cid:73)(cid:68)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:14) Orbital 2010 Annual Report 55 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2010 28. SHARE CAPITAL (continued) (a) Cancelled share capital (cid:33)(cid:84) (cid:84)(cid:72)(cid:69) (cid:33)(cid:78)(cid:78)(cid:85)(cid:65)(cid:76) (cid:39)(cid:69)(cid:78)(cid:69)(cid:82)(cid:65)(cid:76) (cid:45)(cid:69)(cid:69)(cid:84)(cid:73)(cid:78)(cid:71) (cid:79)(cid:70) (cid:51)(cid:72)(cid:65)(cid:82)(cid:69)(cid:72)(cid:79)(cid:76)(cid:68)(cid:69)(cid:82)(cid:83) (cid:72)(cid:69)(cid:76)(cid:68) (cid:79)(cid:78) (cid:18)(cid:18) (cid:47)(cid:67)(cid:84)(cid:79)(cid:66)(cid:69)(cid:82) (cid:18)(cid:16)(cid:16)(cid:24)(cid:12) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:72)(cid:79)(cid:76)(cid:68)(cid:69)(cid:82)(cid:83) (cid:65)(cid:80)(cid:80)(cid:82)(cid:79)(cid:86)(cid:69)(cid:68) (cid:84)(cid:72)(cid:69) (cid:82)(cid:69)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76) (cid:79)(cid:70) (cid:4)(cid:18)(cid:16)(cid:23)(cid:12)(cid:16)(cid:16)(cid:16)(cid:12)(cid:16)(cid:16)(cid:16) (cid:66)(cid:89) (cid:87)(cid:65)(cid:89) (cid:79)(cid:70) (cid:65) (cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84) (cid:70)(cid:82)(cid:79)(cid:77) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76) (cid:84)(cid:79) (cid:65)(cid:67)(cid:67)(cid:85)(cid:77)(cid:85)(cid:76)(cid:65)(cid:84)(cid:69)(cid:68) (cid:76)(cid:79)(cid:83)(cid:83)(cid:69)(cid:83) (cid:84)(cid:79) (cid:82)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:83)(cid:69) (cid:84)(cid:72)(cid:65)(cid:84) (cid:84)(cid:72)(cid:69) (cid:65)(cid:67)(cid:67)(cid:85)(cid:77)(cid:85)(cid:76)(cid:65)(cid:84)(cid:69)(cid:68) (cid:76)(cid:79)(cid:83)(cid:83)(cid:69)(cid:83) (cid:87)(cid:69)(cid:82)(cid:69) (cid:80)(cid:69)(cid:82)(cid:77)(cid:65)(cid:78)(cid:69)(cid:78)(cid:84)(cid:76)(cid:89) (cid:76)(cid:79)(cid:83)(cid:84)(cid:14) (b) Capital management (cid:55)(cid:72)(cid:69)(cid:78) (cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:73)(cid:78)(cid:71) (cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:12) (cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:7)(cid:83) (cid:79)(cid:66)(cid:74)(cid:69)(cid:67)(cid:84)(cid:73)(cid:86)(cid:69) (cid:73)(cid:83) (cid:84)(cid:79) (cid:69)(cid:78)(cid:83)(cid:85)(cid:82)(cid:69) (cid:84)(cid:72)(cid:69) (cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:89) (cid:67)(cid:79)(cid:78)(cid:84)(cid:73)(cid:78)(cid:85)(cid:69)(cid:83) (cid:65)(cid:83) (cid:65) (cid:71)(cid:79)(cid:73)(cid:78)(cid:71) (cid:67)(cid:79)(cid:78)(cid:67)(cid:69)(cid:82)(cid:78) (cid:65)(cid:83) (cid:87)(cid:69)(cid:76)(cid:76) (cid:65)(cid:83) (cid:84)(cid:79) (cid:77)(cid:65)(cid:73)(cid:78)(cid:84)(cid:65)(cid:73)(cid:78) (cid:79)(cid:80)(cid:84)(cid:73)(cid:77)(cid:65)(cid:76) (cid:82)(cid:69)(cid:84)(cid:85)(cid:82)(cid:78)(cid:83) (cid:84)(cid:79) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:72)(cid:79)(cid:76)(cid:68)(cid:69)(cid:82)(cid:83) (cid:65)(cid:78)(cid:68) (cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84)(cid:83) (cid:70)(cid:79)(cid:82) (cid:79)(cid:84)(cid:72)(cid:69)(cid:82) (cid:83)(cid:84)(cid:65)(cid:75)(cid:69)(cid:72)(cid:79)(cid:76)(cid:68)(cid:69)(cid:82)(cid:83)(cid:14) (cid:45)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84) (cid:65)(cid:76)(cid:83)(cid:79) (cid:65)(cid:73)(cid:77)(cid:83) (cid:84)(cid:79) (cid:77)(cid:65)(cid:73)(cid:78)(cid:84)(cid:65)(cid:73)(cid:78) (cid:65) (cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76) (cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:85)(cid:82)(cid:69) (cid:84)(cid:72)(cid:65)(cid:84) (cid:69)(cid:78)(cid:83)(cid:85)(cid:82)(cid:69)(cid:83) (cid:84)(cid:72)(cid:69) (cid:76)(cid:79)(cid:87)(cid:69)(cid:83)(cid:84) (cid:67)(cid:79)(cid:83)(cid:84) (cid:79)(cid:70) (cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:12) (cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:69)(cid:83) (cid:65) (cid:83)(cid:84)(cid:82)(cid:79)(cid:78)(cid:71) (cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76) (cid:66)(cid:65)(cid:83)(cid:69) (cid:83)(cid:79) (cid:65)(cid:83) (cid:84)(cid:79) (cid:77)(cid:65)(cid:73)(cid:78)(cid:84)(cid:65)(cid:73)(cid:78) (cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:79)(cid:82)(cid:12) (cid:67)(cid:82)(cid:69)(cid:68)(cid:73)(cid:84)(cid:79)(cid:82) (cid:65)(cid:78)(cid:68) (cid:77)(cid:65)(cid:82)(cid:75)(cid:69)(cid:84) (cid:67)(cid:79)(cid:78)(cid:108)(cid:68)(cid:69)(cid:78)(cid:67)(cid:69) (cid:65)(cid:78)(cid:68) (cid:84)(cid:79) (cid:83)(cid:85)(cid:83)(cid:84)(cid:65)(cid:73)(cid:78) (cid:70)(cid:85)(cid:84)(cid:85)(cid:82)(cid:69) (cid:68)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:66)(cid:85)(cid:83)(cid:73)(cid:78)(cid:69)(cid:83)(cid:83)(cid:14) (cid:45)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84) (cid:68)(cid:69)(cid:108)(cid:78)(cid:69)(cid:83) (cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76) (cid:65)(cid:83) (cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:73)(cid:66)(cid:85)(cid:84)(cid:69)(cid:68) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:72)(cid:79)(cid:76)(cid:68)(cid:69)(cid:82) (cid:69)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89) (cid:65)(cid:78)(cid:68) (cid:72)(cid:65)(cid:83) (cid:78)(cid:79) (cid:67)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:84) (cid:80)(cid:76)(cid:65)(cid:78)(cid:83) (cid:84)(cid:79) (cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69) (cid:84)(cid:72)(cid:69) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:14) 29. RETAINED PROFITS/(ACCUMULATED LOSSES) AND RESERVES (a) Movements in retained proﬁts/(accumulated losses) were as follows: (cid:35)(cid:47)(cid:46)(cid:51)(cid:47)(cid:44)(cid:41)(cid:36)(cid:33)(cid:52)(cid:37)(cid:36) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16) (cid:0) (cid:0) (cid:8)(cid:19)(cid:12)(cid:18)(cid:18)(cid:20)(cid:9)(cid:0) (cid:8)(cid:18)(cid:16)(cid:23)(cid:12)(cid:23)(cid:23)(cid:19)(cid:9) (cid:13) (cid:18)(cid:16)(cid:23)(cid:12)(cid:16)(cid:16)(cid:16) (cid:20)(cid:12)(cid:21)(cid:17)(cid:22) (cid:17)(cid:12)(cid:18)(cid:25)(cid:18) (cid:8)(cid:18)(cid:12)(cid:20)(cid:21)(cid:17)(cid:9) (cid:8)(cid:19)(cid:12)(cid:18)(cid:18)(cid:20)(cid:9) (cid:0) (cid:37)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69)(cid:0) (cid:38)(cid:79)(cid:82)(cid:69)(cid:73)(cid:71)(cid:78) (cid:37)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89) (cid:0) (cid:34)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84)(cid:83)(cid:0) (cid:50)(cid:69)(cid:83)(cid:69)(cid:82)(cid:86)(cid:69)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:35)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:67)(cid:89)(cid:0) (cid:35)(cid:65)(cid:83)(cid:72) (cid:38)(cid:76)(cid:79)(cid:87) (cid:52)(cid:82)(cid:65)(cid:78)(cid:83)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0) (cid:50)(cid:69)(cid:83)(cid:69)(cid:82)(cid:86)(cid:69)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:40)(cid:69)(cid:68)(cid:71)(cid:69) (cid:50)(cid:69)(cid:83)(cid:69)(cid:82)(cid:86)(cid:69)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:52)(cid:79)(cid:84)(cid:65)(cid:76) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16) (cid:24)(cid:25)(cid:22) (cid:18)(cid:19)(cid:22) (cid:8)(cid:18)(cid:20)(cid:24)(cid:9)(cid:0) (cid:13) (cid:24)(cid:24)(cid:20) (cid:24)(cid:24)(cid:20) (cid:18)(cid:21)(cid:16) (cid:8)(cid:17)(cid:17)(cid:23)(cid:9)(cid:0) (cid:13) (cid:17)(cid:12)(cid:16)(cid:17)(cid:23) (cid:8)(cid:19)(cid:12)(cid:18)(cid:24)(cid:17)(cid:9)(cid:0) (cid:8)(cid:23)(cid:18)(cid:9)(cid:0) (cid:8)(cid:18)(cid:12)(cid:20)(cid:21)(cid:23)(cid:9) (cid:13) (cid:13) (cid:19)(cid:12)(cid:22)(cid:24)(cid:16) (cid:19)(cid:25)(cid:25) (cid:19)(cid:25)(cid:25) (cid:13) (cid:13) (cid:8)(cid:17)(cid:12)(cid:17)(cid:22)(cid:25)(cid:9)(cid:0) (cid:8)(cid:23)(cid:23)(cid:16)(cid:9)(cid:0) (cid:13) (cid:13) (cid:23)(cid:18) (cid:13) (cid:13) (cid:13) (cid:13) (cid:13) (cid:13) (cid:18)(cid:19)(cid:22) (cid:8)(cid:18)(cid:20)(cid:24)(cid:9) (cid:19)(cid:12)(cid:23)(cid:21)(cid:18) (cid:17)(cid:12)(cid:18)(cid:24)(cid:19) (cid:17)(cid:12)(cid:18)(cid:24)(cid:19) (cid:18)(cid:21)(cid:16) (cid:8)(cid:17)(cid:17)(cid:23)(cid:9) (cid:8)(cid:17)(cid:12)(cid:17)(cid:22)(cid:25)(cid:9) (cid:18)(cid:20)(cid:23) (cid:0) (cid:34)(cid:65)(cid:76)(cid:65)(cid:78)(cid:67)(cid:69) (cid:17) (cid:42)(cid:85)(cid:76)(cid:89)(cid:0) (cid:0) (cid:35)(cid:65)(cid:78)(cid:67)(cid:69)(cid:76)(cid:76)(cid:69)(cid:68) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0) (cid:0) (cid:46)(cid:69)(cid:84) (cid:80)(cid:82)(cid:79)(cid:108)(cid:84)(cid:15)(cid:8)(cid:76)(cid:79)(cid:83)(cid:83)(cid:9)(cid:0) (cid:0) (cid:34)(cid:65)(cid:76)(cid:65)(cid:78)(cid:67)(cid:69) (cid:19)(cid:16) (cid:42)(cid:85)(cid:78)(cid:69)(cid:0) (b) Other reserves (cid:35)(cid:79)(cid:78)(cid:83)(cid:79)(cid:76)(cid:73)(cid:68)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0) (cid:34)(cid:65)(cid:76)(cid:65)(cid:78)(cid:67)(cid:69) (cid:17) (cid:42)(cid:85)(cid:76)(cid:89) (cid:18)(cid:16)(cid:16)(cid:24)(cid:0) (cid:37)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89)(cid:13)(cid:83)(cid:69)(cid:84)(cid:84)(cid:76)(cid:69)(cid:68) (cid:84)(cid:82)(cid:65)(cid:78)(cid:83)(cid:65)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:13)(cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0) (cid:52)(cid:82)(cid:65)(cid:78)(cid:83)(cid:70)(cid:69)(cid:82) (cid:84)(cid:79) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0) (cid:47)(cid:84)(cid:72)(cid:69)(cid:82) (cid:67)(cid:79)(cid:77)(cid:80)(cid:82)(cid:69)(cid:72)(cid:69)(cid:78)(cid:83)(cid:73)(cid:86)(cid:69) (cid:73)(cid:78)(cid:67)(cid:79)(cid:77)(cid:69)(cid:0) (cid:34)(cid:65)(cid:76)(cid:65)(cid:78)(cid:67)(cid:69) (cid:65)(cid:84) (cid:19)(cid:16) (cid:42)(cid:85)(cid:78)(cid:69) (cid:18)(cid:16)(cid:16)(cid:25)(cid:0) (cid:34)(cid:65)(cid:76)(cid:65)(cid:78)(cid:67)(cid:69) (cid:17) (cid:42)(cid:85)(cid:76)(cid:89) (cid:18)(cid:16)(cid:16)(cid:25)(cid:0) (cid:37)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89)(cid:13)(cid:83)(cid:69)(cid:84)(cid:84)(cid:76)(cid:69)(cid:68) (cid:84)(cid:82)(cid:65)(cid:78)(cid:83)(cid:65)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:13)(cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0) (cid:52)(cid:82)(cid:65)(cid:78)(cid:83)(cid:70)(cid:69)(cid:82) (cid:84)(cid:79) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0) (cid:47)(cid:84)(cid:72)(cid:69)(cid:82) (cid:67)(cid:79)(cid:77)(cid:80)(cid:82)(cid:69)(cid:72)(cid:69)(cid:78)(cid:83)(cid:73)(cid:86)(cid:69) (cid:73)(cid:78)(cid:67)(cid:79)(cid:77)(cid:69)(cid:0) (cid:34)(cid:65)(cid:76)(cid:65)(cid:78)(cid:67)(cid:69) (cid:65)(cid:84) (cid:19)(cid:16) (cid:42)(cid:85)(cid:78)(cid:69) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) 56 Annual Report 2010 Orbital 29. RETAINED PROFITS/(ACCUMULATED LOSSES) AND RESERVES (continued) (c) Nature and purpose of reserves (cid:37)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69) (cid:69)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89) (cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84)(cid:83) (cid:82)(cid:69)(cid:83)(cid:69)(cid:82)(cid:86)(cid:69) (cid:52)(cid:72)(cid:69) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69) (cid:69)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89) (cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84)(cid:83) (cid:82)(cid:69)(cid:83)(cid:69)(cid:82)(cid:86)(cid:69) (cid:73)(cid:83) (cid:85)(cid:83)(cid:69)(cid:68) (cid:84)(cid:79) (cid:82)(cid:69)(cid:67)(cid:79)(cid:82)(cid:68) (cid:84)(cid:72)(cid:69) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69) (cid:79)(cid:70) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:66)(cid:65)(cid:83)(cid:69)(cid:68) (cid:80)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83) (cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:69)(cid:68) (cid:84)(cid:79) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69)(cid:83)(cid:12) (cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:73)(cid:78)(cid:71) (cid:43)(cid:45)(cid:48)(cid:7)(cid:83)(cid:12) (cid:65)(cid:83) (cid:80)(cid:65)(cid:82)(cid:84) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69)(cid:73)(cid:82) (cid:82)(cid:69)(cid:77)(cid:85)(cid:78)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:14) (cid:50)(cid:69)(cid:70)(cid:69)(cid:82) (cid:84)(cid:79) (cid:78)(cid:79)(cid:84)(cid:69) (cid:19)(cid:21) (cid:70)(cid:79)(cid:82) (cid:70)(cid:85)(cid:82)(cid:84)(cid:72)(cid:69)(cid:82) (cid:68)(cid:69)(cid:84)(cid:65)(cid:73)(cid:76)(cid:83) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69)(cid:83)(cid:69) (cid:80)(cid:76)(cid:65)(cid:78)(cid:83)(cid:14) (cid:38)(cid:79)(cid:82)(cid:69)(cid:73)(cid:71)(cid:78) (cid:67)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:67)(cid:89) (cid:84)(cid:82)(cid:65)(cid:78)(cid:83)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:82)(cid:69)(cid:83)(cid:69)(cid:82)(cid:86)(cid:69) (cid:52)(cid:72)(cid:69) (cid:70)(cid:79)(cid:82)(cid:69)(cid:73)(cid:71)(cid:78) (cid:67)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:67)(cid:89) (cid:84)(cid:82)(cid:65)(cid:78)(cid:83)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:82)(cid:69)(cid:83)(cid:69)(cid:82)(cid:86)(cid:69) (cid:73)(cid:83) (cid:85)(cid:83)(cid:69)(cid:68) (cid:84)(cid:79) (cid:82)(cid:69)(cid:67)(cid:79)(cid:82)(cid:68) (cid:69)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69) (cid:68)(cid:73)(cid:70)(cid:70)(cid:69)(cid:82)(cid:69)(cid:78)(cid:67)(cid:69)(cid:83) (cid:65)(cid:82)(cid:73)(cid:83)(cid:73)(cid:78)(cid:71) (cid:70)(cid:82)(cid:79)(cid:77) (cid:84)(cid:72)(cid:69) (cid:84)(cid:82)(cid:65)(cid:78)(cid:83)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:108)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76) (cid:83)(cid:84)(cid:65)(cid:84)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83) (cid:79)(cid:70) (cid:70)(cid:79)(cid:82)(cid:69)(cid:73)(cid:71)(cid:78) (cid:83)(cid:85)(cid:66)(cid:83)(cid:73)(cid:68)(cid:73)(cid:65)(cid:82)(cid:73)(cid:69)(cid:83)(cid:14) (cid:35)(cid:65)(cid:83)(cid:72) (cid:109)(cid:79)(cid:87) (cid:72)(cid:69)(cid:68)(cid:71)(cid:69) (cid:82)(cid:69)(cid:83)(cid:69)(cid:82)(cid:86)(cid:69) (cid:52)(cid:72)(cid:73)(cid:83) (cid:82)(cid:69)(cid:83)(cid:69)(cid:82)(cid:86)(cid:69) (cid:82)(cid:69)(cid:67)(cid:79)(cid:82)(cid:68)(cid:83) (cid:84)(cid:72)(cid:69) (cid:39)(cid:82)(cid:79)(cid:85)(cid:80)(cid:7)(cid:83) (cid:80)(cid:79)(cid:82)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:51)(cid:89)(cid:78)(cid:69)(cid:82)(cid:74)(cid:69)(cid:67)(cid:84) (cid:44)(cid:44)(cid:35)(cid:7)(cid:83) (cid:71)(cid:65)(cid:73)(cid:78) (cid:79)(cid:82) (cid:76)(cid:79)(cid:83)(cid:83) (cid:79)(cid:78) (cid:65) (cid:72)(cid:69)(cid:68)(cid:71)(cid:73)(cid:78)(cid:71) (cid:73)(cid:78)(cid:83)(cid:84)(cid:82)(cid:85)(cid:77)(cid:69)(cid:78)(cid:84) (cid:73)(cid:78) (cid:65) (cid:67)(cid:65)(cid:83)(cid:72) (cid:109)(cid:79)(cid:87) (cid:72)(cid:69)(cid:68)(cid:71)(cid:69) (cid:84)(cid:72)(cid:65)(cid:84) (cid:73)(cid:83) (cid:68)(cid:69)(cid:84)(cid:69)(cid:82)(cid:77)(cid:73)(cid:78)(cid:69)(cid:68) (cid:84)(cid:79) (cid:66)(cid:69) (cid:65)(cid:78) (cid:69)(cid:70)(cid:70)(cid:69)(cid:67)(cid:84)(cid:73)(cid:86)(cid:69) (cid:72)(cid:69)(cid:68)(cid:71)(cid:69)(cid:14) 30. CONSOLIDATED ENTITY Ultimate Parent Entity (cid:13) (cid:47)(cid:82)(cid:66)(cid:73)(cid:84)(cid:65)(cid:76) (cid:35)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68) Controlled Entities, incorporated and carrying on business in: Australia (cid:13) (cid:47)(cid:82)(cid:66)(cid:73)(cid:84)(cid:65)(cid:76) (cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65) (cid:48)(cid:84)(cid:89) (cid:44)(cid:84)(cid:68)(cid:0) (cid:13) (cid:47)(cid:82)(cid:66)(cid:73)(cid:84)(cid:65)(cid:76) (cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65) (cid:45)(cid:65)(cid:78)(cid:85)(cid:70)(cid:65)(cid:67)(cid:84)(cid:85)(cid:82)(cid:73)(cid:78)(cid:71) (cid:48)(cid:84)(cid:89) (cid:44)(cid:84)(cid:68)(cid:0) (cid:13) (cid:47)(cid:37)(cid:35) (cid:48)(cid:84)(cid:89) (cid:44)(cid:84)(cid:68)(cid:0) (cid:13) (cid:51) (cid:52) (cid:45)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84) (cid:48)(cid:84)(cid:89) (cid:44)(cid:84)(cid:68)(cid:0) (cid:13) (cid:47)(cid:38)(cid:52) (cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65) (cid:48)(cid:84)(cid:89) (cid:44)(cid:84)(cid:68)(cid:0) (cid:13) (cid:41)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84) (cid:36)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84) (cid:38)(cid:85)(cid:78)(cid:68)(cid:73)(cid:78)(cid:71) (cid:48)(cid:84)(cid:89) (cid:44)(cid:84)(cid:68)(cid:0) (cid:13) (cid:48)(cid:79)(cid:87)(cid:69)(cid:82) (cid:41)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84) (cid:38)(cid:85)(cid:78)(cid:68)(cid:73)(cid:78)(cid:71) (cid:48)(cid:84)(cid:89) (cid:44)(cid:84)(cid:68)(cid:0) (cid:13) (cid:47)(cid:82)(cid:66)(cid:73)(cid:84)(cid:65)(cid:76) (cid:37)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:65)(cid:76) (cid:48)(cid:84)(cid:89) (cid:44)(cid:84)(cid:68)(cid:0) (cid:13) (cid:47)(cid:82)(cid:66)(cid:73)(cid:84)(cid:65)(cid:76) (cid:51)(cid:72)(cid:65)(cid:82)(cid:69) (cid:48)(cid:76)(cid:65)(cid:78) (cid:48)(cid:84)(cid:89) (cid:44)(cid:84)(cid:68)(cid:0) United States of America (cid:13) (cid:47)(cid:82)(cid:66)(cid:73)(cid:84)(cid:65)(cid:76) (cid:40)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:83) (cid:8)(cid:53)(cid:51)(cid:33)(cid:9) (cid:41)(cid:78)(cid:67)(cid:14)(cid:0) (cid:13) (cid:47)(cid:82)(cid:66)(cid:73)(cid:84)(cid:65)(cid:76) (cid:38)(cid:76)(cid:85)(cid:73)(cid:68) (cid:52)(cid:69)(cid:67)(cid:72)(cid:78)(cid:79)(cid:76)(cid:79)(cid:71)(cid:73)(cid:69)(cid:83) (cid:41)(cid:78)(cid:67)(cid:14)(cid:0) (cid:13) (cid:47)(cid:82)(cid:66)(cid:73)(cid:84)(cid:65)(cid:76) (cid:37)(cid:78)(cid:71)(cid:73)(cid:78)(cid:69) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:78)(cid:89) (cid:8)(cid:53)(cid:51)(cid:33)(cid:9) (cid:41)(cid:78)(cid:67)(cid:14)(cid:0) United Kingdom (cid:13) (cid:47)(cid:82)(cid:66)(cid:73)(cid:84)(cid:65)(cid:76) (cid:37)(cid:78)(cid:71)(cid:73)(cid:78)(cid:69) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:78)(cid:89) (cid:8)(cid:53)(cid:43)(cid:9) (cid:44)(cid:84)(cid:68)(cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:46)(cid:79)(cid:84)(cid:69)(cid:0) (cid:35)(cid:76)(cid:65)(cid:83)(cid:83) (cid:79)(cid:70)(cid:0) (cid:51)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83)(cid:0) (cid:35)(cid:79)(cid:78)(cid:83)(cid:79)(cid:76)(cid:73)(cid:68)(cid:65)(cid:84)(cid:69)(cid:68) (cid:37)(cid:78)(cid:84)(cid:73)(cid:84)(cid:89) (cid:41)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:5)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25) (cid:5) (cid:47)(cid:82)(cid:68)(cid:0) (cid:47)(cid:82)(cid:68)(cid:0) (cid:47)(cid:82)(cid:68)(cid:0) (cid:47)(cid:82)(cid:68)(cid:0) (cid:47)(cid:82)(cid:68)(cid:0) (cid:47)(cid:82)(cid:68)(cid:0) (cid:47)(cid:82)(cid:68)(cid:0) (cid:47)(cid:82)(cid:68)(cid:0) (cid:47)(cid:82)(cid:68)(cid:0) (cid:47)(cid:82)(cid:68)(cid:0) (cid:47)(cid:82)(cid:68)(cid:0) (cid:47)(cid:82)(cid:68)(cid:0) (cid:47)(cid:82)(cid:68)(cid:0) (cid:17)(cid:16)(cid:16)(cid:0) (cid:17)(cid:16)(cid:16)(cid:0) (cid:17)(cid:16)(cid:16)(cid:0) (cid:17)(cid:16)(cid:16)(cid:0) (cid:17)(cid:16)(cid:16)(cid:0) (cid:17)(cid:16)(cid:16)(cid:0) (cid:17)(cid:16)(cid:16)(cid:0) (cid:17)(cid:16)(cid:16)(cid:0) (cid:17)(cid:16)(cid:16)(cid:0) (cid:17)(cid:16)(cid:16)(cid:0) (cid:17)(cid:16)(cid:16)(cid:0) (cid:17)(cid:16)(cid:16)(cid:0) (cid:17)(cid:16)(cid:16)(cid:0) (cid:17)(cid:16)(cid:16) (cid:17)(cid:16)(cid:16) (cid:17)(cid:16)(cid:16) (cid:17)(cid:16)(cid:16) (cid:17)(cid:16)(cid:16) (cid:17)(cid:16)(cid:16) (cid:17)(cid:16)(cid:16) (cid:17)(cid:16)(cid:16) (cid:17)(cid:16)(cid:16) (cid:17)(cid:16)(cid:16) (cid:17)(cid:16)(cid:16) (cid:17)(cid:16)(cid:16) (cid:17)(cid:16)(cid:16) (cid:8)(cid:65)(cid:9)(cid:0) (cid:8)(cid:65)(cid:9)(cid:0) (cid:8)(cid:65)(cid:9)(cid:0) (cid:8)(cid:65)(cid:9)(cid:0) (cid:8)(cid:65)(cid:9)(cid:0) (cid:8)(cid:65)(cid:9)(cid:0) (cid:8)(cid:66)(cid:9)(cid:0) (cid:8)(cid:65)(cid:9)(cid:0) (cid:8)(cid:65)(cid:9)(cid:0) (cid:8)(cid:65)(cid:9)(cid:0) (cid:8)(cid:65)(cid:9)(cid:0) (cid:36)(cid:79)(cid:82)(cid:77)(cid:65)(cid:78)(cid:84) (cid:70)(cid:79)(cid:82) (cid:84)(cid:72)(cid:69) (cid:89)(cid:69)(cid:65)(cid:82)(cid:83) (cid:69)(cid:78)(cid:68)(cid:69)(cid:68) (cid:19)(cid:16) (cid:42)(cid:85)(cid:78)(cid:69) (cid:18)(cid:16)(cid:17)(cid:16) (cid:65)(cid:78)(cid:68) (cid:19)(cid:16) (cid:42)(cid:85)(cid:78)(cid:69) (cid:18)(cid:16)(cid:16)(cid:25)(cid:14) (cid:8)(cid:66)(cid:9)(cid:0) (cid:47)(cid:82)(cid:66)(cid:73)(cid:84)(cid:65)(cid:76) (cid:51)(cid:72)(cid:65)(cid:82)(cid:69) (cid:48)(cid:76)(cid:65)(cid:78) (cid:48)(cid:84)(cid:89) (cid:44)(cid:84)(cid:68) (cid:87)(cid:65)(cid:83) (cid:69)(cid:83)(cid:84)(cid:65)(cid:66)(cid:76)(cid:73)(cid:83)(cid:72)(cid:69)(cid:68) (cid:79)(cid:78) (cid:18)(cid:18) (cid:51)(cid:69)(cid:80)(cid:84)(cid:69)(cid:77)(cid:66)(cid:69)(cid:82) (cid:18)(cid:16)(cid:16)(cid:24) (cid:65)(cid:78)(cid:68) (cid:65)(cid:67)(cid:84)(cid:83) (cid:65)(cid:83) (cid:84)(cid:72)(cid:69) (cid:84)(cid:82)(cid:85)(cid:83)(cid:84)(cid:69)(cid:69) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:47)(cid:82)(cid:66)(cid:73)(cid:84)(cid:65)(cid:76) (cid:37)(cid:88)(cid:69)(cid:67)(cid:85)(cid:84)(cid:73)(cid:86)(cid:69) (cid:44)(cid:79)(cid:78)(cid:71) (cid:52)(cid:69)(cid:82)(cid:77) (cid:51)(cid:72)(cid:65)(cid:82)(cid:69) (cid:48)(cid:76)(cid:65)(cid:78)(cid:83)(cid:14) Orbital 2010 Annual Report 57 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2010 31. INFORMATION RELATING TO ORBITAL CORPORATION LIMITED (cid:35)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:84) (cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83)(cid:0) (cid:52)(cid:79)(cid:84)(cid:65)(cid:76) (cid:65)(cid:83)(cid:83)(cid:69)(cid:84)(cid:83)(cid:0) (cid:35)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:84) (cid:76)(cid:73)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:0) (cid:52)(cid:79)(cid:84)(cid:65)(cid:76) (cid:76)(cid:73)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:0) (cid:41)(cid:83)(cid:83)(cid:85)(cid:69)(cid:68) (cid:67)(cid:65)(cid:80)(cid:73)(cid:84)(cid:65)(cid:76)(cid:0) (cid:50)(cid:69)(cid:84)(cid:65)(cid:73)(cid:78)(cid:69)(cid:68) (cid:80)(cid:82)(cid:79)(cid:108)(cid:84)(cid:83)(cid:15)(cid:8)(cid:65)(cid:67)(cid:67)(cid:85)(cid:77)(cid:85)(cid:76)(cid:65)(cid:84)(cid:69)(cid:68) (cid:76)(cid:79)(cid:83)(cid:83)(cid:69)(cid:83)(cid:9)(cid:0) (cid:37)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69) (cid:69)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89) (cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84)(cid:83) (cid:82)(cid:69)(cid:83)(cid:69)(cid:82)(cid:86)(cid:69)(cid:0) (cid:52)(cid:79)(cid:84)(cid:65)(cid:76) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:72)(cid:79)(cid:76)(cid:68)(cid:69)(cid:82)(cid:83)(cid:7) (cid:69)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89)(cid:0) (cid:48)(cid:82)(cid:79)(cid:108)(cid:84) (cid:79)(cid:82) (cid:76)(cid:79)(cid:83)(cid:83) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:80)(cid:65)(cid:82)(cid:69)(cid:78)(cid:84) (cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:89)(cid:0) (cid:52)(cid:79)(cid:84)(cid:65)(cid:76) (cid:67)(cid:79)(cid:77)(cid:80)(cid:82)(cid:69)(cid:72)(cid:69)(cid:78)(cid:83)(cid:73)(cid:86)(cid:69) (cid:73)(cid:78)(cid:67)(cid:79)(cid:77)(cid:69) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:80)(cid:65)(cid:82)(cid:69)(cid:78)(cid:84) (cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:89)(cid:0) Guarantee (cid:0) (cid:0) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:18)(cid:18) (cid:20)(cid:17)(cid:12)(cid:20)(cid:25)(cid:20) (cid:13) (cid:18)(cid:16)(cid:12)(cid:22)(cid:25)(cid:20) (cid:17)(cid:25)(cid:12)(cid:18)(cid:22)(cid:17) (cid:21)(cid:18)(cid:18) (cid:17)(cid:12)(cid:16)(cid:17)(cid:23) (cid:18)(cid:16)(cid:12)(cid:24)(cid:16)(cid:16) (cid:20)(cid:12)(cid:18)(cid:23)(cid:16) (cid:20)(cid:12)(cid:18)(cid:23)(cid:16) (cid:18)(cid:16)(cid:16)(cid:25) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16) (cid:21)(cid:17)(cid:23) (cid:20)(cid:20)(cid:12)(cid:21)(cid:21)(cid:16) (cid:17)(cid:19)(cid:12)(cid:21)(cid:20)(cid:25) (cid:18)(cid:24)(cid:12)(cid:20)(cid:18)(cid:18) (cid:17)(cid:25)(cid:12)(cid:16)(cid:21)(cid:21) (cid:8)(cid:19)(cid:12)(cid:24)(cid:17)(cid:17)(cid:9) (cid:24)(cid:24)(cid:20) (cid:17)(cid:22)(cid:12)(cid:17)(cid:18)(cid:24) (cid:19)(cid:17)(cid:21) (cid:19)(cid:17)(cid:21) (cid:47)(cid:82)(cid:66)(cid:73)(cid:84)(cid:65)(cid:76) (cid:35)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:44)(cid:73)(cid:77)(cid:73)(cid:84)(cid:69)(cid:68) (cid:72)(cid:65)(cid:83) (cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:69)(cid:68) (cid:65) (cid:71)(cid:85)(cid:65)(cid:82)(cid:65)(cid:78)(cid:84)(cid:69)(cid:69) (cid:84)(cid:79) (cid:55)(cid:69)(cid:83)(cid:84)(cid:80)(cid:65)(cid:67) (cid:34)(cid:65)(cid:78)(cid:75)(cid:73)(cid:78)(cid:71) (cid:35)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:70)(cid:79)(cid:82) (cid:65)(cid:76)(cid:76) (cid:76)(cid:73)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83) (cid:65)(cid:78)(cid:68) (cid:79)(cid:66)(cid:76)(cid:73)(cid:71)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83) (cid:79)(cid:70) (cid:47)(cid:82)(cid:66)(cid:73)(cid:84)(cid:65)(cid:76) (cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65) (cid:48)(cid:84)(cid:89) (cid:44)(cid:84)(cid:68)(cid:14) (cid:51)(cid:69)(cid:69) (cid:78)(cid:79)(cid:84)(cid:69) (cid:18)(cid:18) (cid:70)(cid:79)(cid:82) (cid:68)(cid:69)(cid:84)(cid:65)(cid:73)(cid:76)(cid:83) (cid:79)(cid:70) (cid:47)(cid:82)(cid:66)(cid:73)(cid:84)(cid:65)(cid:76) (cid:33)(cid:85)(cid:83)(cid:84)(cid:82)(cid:65)(cid:76)(cid:73)(cid:65) (cid:48)(cid:84)(cid:89) (cid:44)(cid:84)(cid:68)(cid:7)(cid:83) (cid:79)(cid:85)(cid:84)(cid:83)(cid:84)(cid:65)(cid:78)(cid:68)(cid:73)(cid:78)(cid:71) (cid:76)(cid:73)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83) (cid:84)(cid:79) (cid:55)(cid:69)(cid:83)(cid:84)(cid:80)(cid:65)(cid:67) (cid:34)(cid:65)(cid:78)(cid:75)(cid:73)(cid:78)(cid:71) (cid:35)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:14) 32. RELATED PARTIES (a) Identity of related parties (cid:52)(cid:72)(cid:69) (cid:39)(cid:82)(cid:79)(cid:85)(cid:80) (cid:72)(cid:65)(cid:83) (cid:65) (cid:82)(cid:69)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:72)(cid:73)(cid:80) (cid:87)(cid:73)(cid:84)(cid:72) (cid:73)(cid:84)(cid:83) (cid:83)(cid:85)(cid:66)(cid:83)(cid:73)(cid:68)(cid:73)(cid:65)(cid:82)(cid:73)(cid:69)(cid:83) (cid:8)(cid:83)(cid:69)(cid:69) (cid:78)(cid:79)(cid:84)(cid:69) (cid:19)(cid:16)(cid:9)(cid:12) (cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84) (cid:65)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:69)(cid:68) (cid:70)(cid:79)(cid:82) (cid:85)(cid:83)(cid:73)(cid:78)(cid:71) (cid:84)(cid:72)(cid:69) (cid:69)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89) (cid:77)(cid:69)(cid:84)(cid:72)(cid:79)(cid:68) (cid:8)(cid:83)(cid:69)(cid:69) (cid:78)(cid:79)(cid:84)(cid:69) (cid:17)(cid:22)(cid:9)(cid:12) (cid:65)(cid:78)(cid:68) (cid:87)(cid:73)(cid:84)(cid:72) (cid:73)(cid:84)(cid:83) (cid:75)(cid:69)(cid:89) (cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84) (cid:80)(cid:69)(cid:82)(cid:83)(cid:79)(cid:78)(cid:78)(cid:69)(cid:76) (cid:8)(cid:82)(cid:69)(cid:70)(cid:69)(cid:82) (cid:84)(cid:79) (cid:68)(cid:73)(cid:83)(cid:67)(cid:76)(cid:79)(cid:83)(cid:85)(cid:82)(cid:69)(cid:83) (cid:70)(cid:79)(cid:82) (cid:75)(cid:69)(cid:89) (cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84) (cid:80)(cid:69)(cid:82)(cid:83)(cid:79)(cid:78)(cid:78)(cid:69)(cid:76)(cid:12) (cid:83)(cid:69)(cid:69) (cid:78)(cid:79)(cid:84)(cid:69) (cid:19)(cid:19)(cid:9)(cid:14) (b) Controlled Entities (cid:36)(cid:69)(cid:84)(cid:65)(cid:73)(cid:76)(cid:83) (cid:79)(cid:70) (cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:73)(cid:78) (cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:79)(cid:76)(cid:76)(cid:69)(cid:68) (cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83) (cid:65)(cid:82)(cid:69) (cid:83)(cid:69)(cid:84) (cid:79)(cid:85)(cid:84) (cid:73)(cid:78) (cid:46)(cid:79)(cid:84)(cid:69) (cid:19)(cid:16)(cid:14) (c) Other Related Parties (cid:36)(cid:69)(cid:84)(cid:65)(cid:73)(cid:76)(cid:83) (cid:79)(cid:70) (cid:68)(cid:69)(cid:65)(cid:76)(cid:73)(cid:78)(cid:71)(cid:83) (cid:87)(cid:73)(cid:84)(cid:72) (cid:79)(cid:84)(cid:72)(cid:69)(cid:82) (cid:82)(cid:69)(cid:76)(cid:65)(cid:84)(cid:69)(cid:68) (cid:80)(cid:65)(cid:82)(cid:84)(cid:73)(cid:69)(cid:83)(cid:12) (cid:66)(cid:69)(cid:73)(cid:78)(cid:71) (cid:74)(cid:79)(cid:73)(cid:78)(cid:84) (cid:86)(cid:69)(cid:78)(cid:84)(cid:85)(cid:82)(cid:69) (cid:69)(cid:78)(cid:84)(cid:73)(cid:84)(cid:89) (cid:51)(cid:89)(cid:78)(cid:69)(cid:82)(cid:74)(cid:69)(cid:67)(cid:84) (cid:44)(cid:44)(cid:35)(cid:12) (cid:65)(cid:82)(cid:69) (cid:83)(cid:69)(cid:84) (cid:79)(cid:85)(cid:84) (cid:66)(cid:69)(cid:76)(cid:79)(cid:87)(cid:26) (i) Receivables and Payables (cid:52)(cid:72)(cid:69) (cid:65)(cid:71)(cid:71)(cid:82)(cid:69)(cid:71)(cid:65)(cid:84)(cid:69) (cid:65)(cid:77)(cid:79)(cid:85)(cid:78)(cid:84)(cid:83) (cid:82)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:65)(cid:66)(cid:76)(cid:69) (cid:70)(cid:82)(cid:79)(cid:77)(cid:15)(cid:80)(cid:65)(cid:89)(cid:65)(cid:66)(cid:76)(cid:69) (cid:84)(cid:79) (cid:51)(cid:89)(cid:78)(cid:69)(cid:82)(cid:74)(cid:69)(cid:67)(cid:84) (cid:44)(cid:44)(cid:35) (cid:66)(cid:89) (cid:84)(cid:72)(cid:69) (cid:39)(cid:82)(cid:79)(cid:85)(cid:80) (cid:65)(cid:84) (cid:66)(cid:65)(cid:76)(cid:65)(cid:78)(cid:67)(cid:69) (cid:68)(cid:65)(cid:84)(cid:69) (cid:65)(cid:82)(cid:69)(cid:26) (cid:50)(cid:69)(cid:67)(cid:69)(cid:73)(cid:86)(cid:65)(cid:66)(cid:76)(cid:69)(cid:83)(cid:0) (cid:35)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:84)(cid:0) (cid:48)(cid:65)(cid:89)(cid:65)(cid:66)(cid:76)(cid:69)(cid:83) (cid:35)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:84)(cid:0) (ii) Transactions (cid:19) (cid:17)(cid:17)(cid:16) (cid:17)(cid:20) (cid:13) (cid:36)(cid:85)(cid:82)(cid:73)(cid:78)(cid:71) (cid:84)(cid:72)(cid:69) (cid:89)(cid:69)(cid:65)(cid:82) (cid:84)(cid:72)(cid:69) (cid:39)(cid:82)(cid:79)(cid:85)(cid:80) (cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:69)(cid:68) (cid:69)(cid:78)(cid:71)(cid:73)(cid:78)(cid:69)(cid:69)(cid:82)(cid:73)(cid:78)(cid:71) (cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:69)(cid:83) (cid:84)(cid:79) (cid:51)(cid:89)(cid:78)(cid:69)(cid:82)(cid:74)(cid:69)(cid:67)(cid:84) (cid:44)(cid:44)(cid:35) (cid:79)(cid:70) (cid:4)(cid:78)(cid:73)(cid:76) (cid:8)(cid:18)(cid:16)(cid:16)(cid:25)(cid:26) (cid:4)(cid:24)(cid:17)(cid:12)(cid:16)(cid:16)(cid:16)(cid:9) (cid:65)(cid:78)(cid:68) (cid:80)(cid:85)(cid:82)(cid:67)(cid:72)(cid:65)(cid:83)(cid:69)(cid:68) (cid:71)(cid:79)(cid:79)(cid:68)(cid:83) (cid:65)(cid:78)(cid:68) (cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:69)(cid:83) (cid:84)(cid:79) (cid:84)(cid:72)(cid:69) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69) (cid:79)(cid:70) (cid:4)(cid:17)(cid:25)(cid:16)(cid:12)(cid:16)(cid:16)(cid:16) (cid:8)(cid:18)(cid:16)(cid:16)(cid:25)(cid:26) (cid:4)(cid:17)(cid:20)(cid:16)(cid:12)(cid:16)(cid:16)(cid:16)(cid:9) (cid:70)(cid:82)(cid:79)(cid:77) (cid:51)(cid:89)(cid:78)(cid:69)(cid:82)(cid:74)(cid:69)(cid:67)(cid:84) (cid:44)(cid:44)(cid:35)(cid:14) (cid:33)(cid:76)(cid:76) (cid:84)(cid:82)(cid:65)(cid:78)(cid:83)(cid:65)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83) (cid:65)(cid:82)(cid:69) (cid:73)(cid:78) (cid:84)(cid:72)(cid:69) (cid:79)(cid:82)(cid:68)(cid:73)(cid:78)(cid:65)(cid:82)(cid:89) (cid:67)(cid:79)(cid:85)(cid:82)(cid:83)(cid:69) (cid:79)(cid:70) (cid:66)(cid:85)(cid:83)(cid:73)(cid:78)(cid:69)(cid:83)(cid:83) (cid:65)(cid:78)(cid:68) (cid:79)(cid:78) (cid:78)(cid:79)(cid:82)(cid:77)(cid:65)(cid:76) (cid:67)(cid:79)(cid:77)(cid:77)(cid:69)(cid:82)(cid:67)(cid:73)(cid:65)(cid:76) (cid:84)(cid:69)(cid:82)(cid:77)(cid:83) (cid:65)(cid:78)(cid:68) (cid:67)(cid:79)(cid:78)(cid:68)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:14) 58 Annual Report 2010 Orbital 33. KEY MANAGEMENT PERSONNEL (cid:52)(cid:72)(cid:69) (cid:70)(cid:79)(cid:76)(cid:76)(cid:79)(cid:87)(cid:73)(cid:78)(cid:71) (cid:87)(cid:69)(cid:82)(cid:69) (cid:75)(cid:69)(cid:89) (cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84) (cid:80)(cid:69)(cid:82)(cid:83)(cid:79)(cid:78)(cid:78)(cid:69)(cid:76) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:39)(cid:82)(cid:79)(cid:85)(cid:80) (cid:65)(cid:84) (cid:65)(cid:78)(cid:89) (cid:84)(cid:73)(cid:77)(cid:69) (cid:68)(cid:85)(cid:82)(cid:73)(cid:78)(cid:71) (cid:84)(cid:72)(cid:69) (cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)(cid:73)(cid:78)(cid:71) (cid:80)(cid:69)(cid:82)(cid:73)(cid:79)(cid:68) (cid:65)(cid:78)(cid:68) (cid:85)(cid:78)(cid:76)(cid:69)(cid:83)(cid:83) (cid:79)(cid:84)(cid:72)(cid:69)(cid:82)(cid:87)(cid:73)(cid:83)(cid:69) (cid:73)(cid:78)(cid:68)(cid:73)(cid:67)(cid:65)(cid:84)(cid:69)(cid:68) were key management personnel for the entire period: Non-executive directors (cid:45)(cid:82) (cid:55)(cid:48) (cid:36)(cid:65)(cid:89) (cid:8)(cid:35)(cid:72)(cid:65)(cid:73)(cid:82)(cid:80)(cid:69)(cid:82)(cid:83)(cid:79)(cid:78)(cid:9) (cid:45)(cid:82) (cid:42)(cid:39) (cid:57)(cid:79)(cid:85)(cid:78)(cid:71) (cid:36)(cid:82) (cid:45)(cid:52) (cid:42)(cid:79)(cid:78)(cid:69)(cid:83) (cid:36)(cid:82) (cid:54) (cid:34)(cid:82)(cid:65)(cid:65)(cid:67)(cid:72)(cid:13)(cid:45)(cid:65)(cid:75)(cid:83)(cid:86)(cid:89)(cid:84)(cid:73)(cid:83) Executive directors (cid:45)(cid:82) (cid:52)(cid:36) (cid:51)(cid:84)(cid:73)(cid:78)(cid:83)(cid:79)(cid:78) (cid:8)(cid:45)(cid:65)(cid:78)(cid:65)(cid:71)(cid:73)(cid:78)(cid:71) (cid:36)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82) (cid:6) (cid:35)(cid:72)(cid:73)(cid:69)(cid:70) (cid:37)(cid:88)(cid:69)(cid:67)(cid:85)(cid:84)(cid:73)(cid:86)(cid:69) (cid:47)(cid:70)(cid:108)(cid:67)(cid:69)(cid:82)(cid:9) Executives (cid:45)(cid:82) (cid:43)(cid:33) (cid:40)(cid:65)(cid:76)(cid:76)(cid:73)(cid:87)(cid:69)(cid:76)(cid:76) (cid:8)(cid:35)(cid:72)(cid:73)(cid:69)(cid:70) (cid:38)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76) (cid:47)(cid:70)(cid:108)(cid:67)(cid:69)(cid:82)(cid:9) (cid:45)(cid:82) (cid:34)(cid:33) (cid:38)(cid:73)(cid:84)(cid:90)(cid:71)(cid:69)(cid:82)(cid:65)(cid:76)(cid:68) (cid:8)(cid:36)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82) (cid:79)(cid:70) (cid:51)(cid:65)(cid:76)(cid:69)(cid:83) (cid:6) (cid:45)(cid:65)(cid:82)(cid:75)(cid:69)(cid:84)(cid:73)(cid:78)(cid:71)(cid:9) (cid:36)(cid:82) (cid:39)(cid:48) (cid:35)(cid:65)(cid:84)(cid:72)(cid:67)(cid:65)(cid:82)(cid:84) (cid:8)(cid:36)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82) (cid:79)(cid:70) (cid:37)(cid:78)(cid:71)(cid:73)(cid:78)(cid:69)(cid:69)(cid:82)(cid:73)(cid:78)(cid:71) (cid:6) (cid:47)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:9) Key management personnel compensation (cid:52)(cid:72)(cid:69) (cid:75)(cid:69)(cid:89) (cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84) (cid:80)(cid:69)(cid:82)(cid:83)(cid:79)(cid:78)(cid:78)(cid:69)(cid:76) (cid:67)(cid:79)(cid:77)(cid:80)(cid:69)(cid:78)(cid:83)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:69)(cid:68) (cid:73)(cid:78) (cid:64)(cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69) (cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84)(cid:83) (cid:69)(cid:88)(cid:80)(cid:69)(cid:78)(cid:83)(cid:69)(cid:7) (cid:8)(cid:83)(cid:69)(cid:69) (cid:78)(cid:79)(cid:84)(cid:69) (cid:25)(cid:9) (cid:65)(cid:82)(cid:69) (cid:65)(cid:83) (cid:70)(cid:79)(cid:76)(cid:76)(cid:79)(cid:87)(cid:83)(cid:26) (cid:51)(cid:72)(cid:79)(cid:82)(cid:84)(cid:13)(cid:84)(cid:69)(cid:82)(cid:77) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69) (cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84)(cid:83)(cid:0) (cid:48)(cid:79)(cid:83)(cid:84)(cid:13)(cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84) (cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84)(cid:83)(cid:0) (cid:37)(cid:81)(cid:85)(cid:73)(cid:84)(cid:89) (cid:67)(cid:79)(cid:77)(cid:80)(cid:69)(cid:78)(cid:83)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84)(cid:83)(cid:0) Individual directors and executives compensation disclosures (cid:35)(cid:47)(cid:46)(cid:51)(cid:47)(cid:44)(cid:41)(cid:36)(cid:33)(cid:52)(cid:37)(cid:36) (cid:18)(cid:16)(cid:17)(cid:16)(cid:0) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16)(cid:0) (cid:18)(cid:16)(cid:16)(cid:25) (cid:4)(cid:7)(cid:16)(cid:16)(cid:16) (cid:0) (cid:0) (cid:17)(cid:12)(cid:21)(cid:24)(cid:23)(cid:12)(cid:18)(cid:23)(cid:21) (cid:17)(cid:12)(cid:18)(cid:19)(cid:19)(cid:12)(cid:23)(cid:25)(cid:24) (cid:17)(cid:19)(cid:18)(cid:12)(cid:22)(cid:16)(cid:21) (cid:18)(cid:18)(cid:21)(cid:12)(cid:23)(cid:19)(cid:23) (cid:17)(cid:18)(cid:25)(cid:12)(cid:20)(cid:25)(cid:17) (cid:17)(cid:22)(cid:21)(cid:12)(cid:25)(cid:17)(cid:24) (cid:17)(cid:12)(cid:25)(cid:20)(cid:21)(cid:12)(cid:22)(cid:17)(cid:23) (cid:17)(cid:12)(cid:21)(cid:18)(cid:25)(cid:12)(cid:18)(cid:16)(cid:23) (cid:46)(cid:79) (cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82) (cid:72)(cid:65)(cid:83) (cid:69)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:68) (cid:73)(cid:78)(cid:84)(cid:79) (cid:65) (cid:77)(cid:65)(cid:84)(cid:69)(cid:82)(cid:73)(cid:65)(cid:76) (cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:65)(cid:67)(cid:84) (cid:87)(cid:73)(cid:84)(cid:72) (cid:84)(cid:72)(cid:69) (cid:39)(cid:82)(cid:79)(cid:85)(cid:80) (cid:83)(cid:73)(cid:78)(cid:67)(cid:69) (cid:84)(cid:72)(cid:69) (cid:69)(cid:78)(cid:68) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:80)(cid:82)(cid:69)(cid:86)(cid:73)(cid:79)(cid:85)(cid:83) (cid:108)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76) (cid:89)(cid:69)(cid:65)(cid:82) (cid:65)(cid:78)(cid:68) (cid:84)(cid:72)(cid:69)(cid:82)(cid:69) (cid:87)(cid:69)(cid:82)(cid:69) (cid:78)(cid:79) (cid:77)(cid:65)(cid:84)(cid:69)(cid:82)(cid:73)(cid:65)(cid:76) (cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:65)(cid:67)(cid:84)(cid:83) (cid:73)(cid:78)(cid:86)(cid:79)(cid:76)(cid:86)(cid:73)(cid:78)(cid:71) (cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83)(cid:7) (cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:65)(cid:84) (cid:89)(cid:69)(cid:65)(cid:82)(cid:13)(cid:69)(cid:78)(cid:68)(cid:14) Loans to key management personnel and their related parties. (cid:52)(cid:72)(cid:69) (cid:39)(cid:82)(cid:79)(cid:85)(cid:80) (cid:72)(cid:65)(cid:86)(cid:69) (cid:78)(cid:79)(cid:84) (cid:77)(cid:65)(cid:68)(cid:69) (cid:65)(cid:78)(cid:89) (cid:76)(cid:79)(cid:65)(cid:78)(cid:83) (cid:84)(cid:79) (cid:75)(cid:69)(cid:89) (cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84) (cid:80)(cid:69)(cid:82)(cid:83)(cid:79)(cid:78)(cid:78)(cid:69)(cid:76) (cid:79)(cid:82) (cid:84)(cid:72)(cid:69)(cid:73)(cid:82) (cid:82)(cid:69)(cid:76)(cid:65)(cid:84)(cid:69)(cid:68) (cid:80)(cid:65)(cid:82)(cid:84)(cid:73)(cid:69)(cid:83) (cid:83)(cid:73)(cid:78)(cid:67)(cid:69) (cid:84)(cid:72)(cid:69) (cid:69)(cid:78)(cid:68) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:80)(cid:82)(cid:69)(cid:86)(cid:73)(cid:79)(cid:85)(cid:83) (cid:108)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76) (cid:89)(cid:69)(cid:65)(cid:82) (cid:65)(cid:78)(cid:68) (cid:84)(cid:72)(cid:69)(cid:82)(cid:69) (cid:87)(cid:69)(cid:82)(cid:69) (cid:78)(cid:79) (cid:76)(cid:79)(cid:65)(cid:78)(cid:83) (cid:84)(cid:79) (cid:65)(cid:78)(cid:89) (cid:75)(cid:69)(cid:89) (cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84) (cid:80)(cid:69)(cid:82)(cid:83)(cid:79)(cid:78) (cid:79)(cid:82) (cid:84)(cid:72)(cid:69)(cid:73)(cid:82) (cid:82)(cid:69)(cid:76)(cid:65)(cid:84)(cid:69)(cid:68) (cid:80)(cid:65)(cid:82)(cid:84)(cid:73)(cid:69)(cid:83) (cid:65)(cid:84) (cid:89)(cid:69)(cid:65)(cid:82)(cid:13)(cid:69)(cid:78)(cid:68) Orbital 2010 Annual Report 59 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2010 33. KEY MANAGEMENT PERSONNEL (continued) Movements in shares The movement during the reporting period in the number of ordinary shares in Orbital Corporation Limited held, directly, indirectly or beneﬁcially, by each key management person, including their related parties, is as follows: Non-executive directors Mr WP Day Mr JG Young Dr V Braach-Maksvytis Dr MT Jones Executive directors Mr TD Stinson (c) Executives Mr KA Halliwell Mr BA Fitzgerald Dr GP Cathcart Non-executive directors Mr WP Day Mr JG Young Dr V Braach-Maksvytis Dr MT Jones Mr JR Marshall Executive directors Mr TD Stinson Executives Mr KA Halliwell Mr BA Fitzgerald Dr GP Cathcart Held at Granted as compensation Held at 1-Jul-09 Purchases ESP #1 ELTSP Sales Other(a) 30-Jun-10 100,000 748,537 - 180,000 - - - - 1,201,000 1,100,000 - - - - - - - - - - - - - - - - - - 100,000 748,537 - 180,000 - (120) 2,300,880 941,890 675,174 303,464 - - - 16,246 409,200 16,246 341,000 16,246 161,200 - - - - 1,367,336 - 1,032,420 - 480,910 Held at Granted as compensation Held at 1-Jul-09 Purchases ESP #1 ELTSP Sales Other(a) 30-Jun-10 100,000 - 248,537 500,000 - - - 180,000 66,880 - - 1,201,000 - - - - - - - - - - - - 499,656 304,940 167,230 - - - 19,234 423,000 19,234 351,000 19,234 117,000 - - - - - - - - - - - - - 100,000 748,537 - 180,000 (66,880) - - 1,201,000 - - - 941,890 675,174 303,464 (a) As a result of a change to the ratio of ADRs to ordinary shares the equivalent ordinary shares of Mr Stinson were rounded down to the nearest multiple of 160. (b) Represents shareholding at time that Mr JR Marshall ceased to be a Director. (c) Mr Stinson’s shareholding of 2,300,880 is represented by 6,618 ADRs and 1,242,000 ordinary shares. 60 Annual Report 2010 Orbital 33. KEY MANAGEMENT PERSONNEL (contiued) Movements in ELTSP rights The movement during the reporting period in the number of ELTSP rights to ordinary shares in Orbital Corporation Limited held, directly, indirectly or beneﬁcially, by each key management person, including their related parties, is as follows: Executive directors Mr TD Stinson Executives Mr KA Halliwell Mr BA Fitzgerald Dr GP Cathcart Executive directors Mr TD Stinson Executives Mr KA Halliwell Mr BA Fitzgerald Dr GP Cathcart Held at 1-Jul-09 Offered Forfeited Vested Expired 30-Jun-10 Held at 1,300,000 5,250,000 1,630,000 2,665,000 1,420,000 2,460,000 830,000 1,995,000 - - - - - - 6,550,000 (409,200) (250,800) 3,635,000 (341,000) (209,000) 3,330,000 (161,200) (98,800) 2,565,000 Held at 1-Jul-08 Offered Forfeited Vested Expired 30-Jun-09 Held at - 1,300,000 1,400,000 700,000 1,110,000 700,000 560,000 400,000 - - - - - - 1,300,000 (423,000) (47,000) 1,630,000 (351,000) (39,000) 1,420,000 (117,000) (13,000) 830,000 Movements in performance rights The movement during the reporting period in the number of performance rights to ordinary shares in Orbital Corporation Limited held, directly, indirectly or beneﬁcially, by each key management person, including their related parties, is as follows: Executive directors Mr TD Stinson Executive directors Mr TD Stinson Held at 1-Jul-09 Offered Forfeited Vested Expired 30-Jun-10 Held at 11,500,000 - - - - 11,500,000 Held at 1-Jul-08 Offered Forfeited Vested Expired 30-Jun-09 Held at - 11,500,000 - - - 11,500,000 Orbital 2010 Annual Report 61 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2010 34. NOTES TO THE STATEMENTS OF CASH FLOWS Reconciliation of cash ﬂows from operating activities Proﬁt/(loss) after income tax Adjustments for: (Proﬁt)/Loss on sale of property, plant and equipment Depreciation Amortisation Amortisation of deferred revenue and government grants Allowance for doubtful debts Bad debts written off Amortisation of non-interest bearing loans Gain on restructure of non-interest bearing loans Amounts set aside to warranty and other provisions Proﬁt on sale of interest in equity accounted investment Share of net proﬁt of equity accounted investment Employee compensation expense Non cash changes in tax balances Net foreign exchange (gains)/losses Net cash provided by/(used in) operating activities before changes in assets and liabilities Changes in assets and liabilities during the year: Decrease/(increase) in receivables Decrease/(increase) in inventories Increase in intangibles (Decrease)/increase in payables (Decrease)/increase in employee provisions Net cash used in operating activities 35. SHARE-BASED PAYMENT PLANS (a) Recognised share-based payment expenses NOTE CONSOLIDATED 2010 $’000 2009 $’000 4,516 (2,451) 8 18 19 26 16(e) 16(c) (41) 877 136 (345) (114) - 626 (7,695) (133) - (1,874) 339 (417) 97 322 1,094 - - 174 (372) 722 - (34) (3,678) (1,846) 323 2,697 (564) (4,028) (3,613) 28 (638) - (951) 540 (1,021) (5,049) 2,316 (1,387) (12) 654 (55) 1,516 (2,097) The expense recognised for employee services received during the year is shown below: Expense arising from equity-settled share-based payment transactions 339 323 The share-based payment plans are described below. The performance hurdles for the Executive Long Term Share Plan were changed during the current year. Entitlements to shares are based 50% of Total Shareholder Return and 50% on Earnings Per Share. Prior to the current year the performance hurdles were based 100% on Total Shareholder Return. (b) Employee share Plan No. 1 Under Employee Share Plan No. 1 each eligible employee is offered fully paid ordinary shares to the value of $1,000 per annum. During the year there were 1,445,894 (2009: 1,673,358) shares issued under Plan 1 to eligible employees at a market value on the day of issue of $89,000 (2009: $87,000). 62 Annual Report 2010 Orbital 35. SHARE-BASED PAYMENT PLANS (contiued) (c) Executive Long Term Share Plan (“ELTSP”) Executives may also be offered shares in the Company’s Executive Long Term Share Plan under which offered shares will be granted subject to the satisfaction of performance conditions over a 3 year period or subject to Board discretion for other qualifying reasons. The number of shares that the executive actually receives depends on two performance hurdles, as set out below: (a) 50% of the shares offered will be issued depending on the performance of the Company relative to a group of selected peers (being the 50 smallest companies by market capitalisation (other than resource companies and property and investment trust companies) within the S&P / ASX 300 Index). The peer group is ranked in terms of Total Shareholder Return (“TSR”). TSR is the percentage increase in a company’s share price plus reinvested dividends over a three year period commencing on 1 September 2009 and ending on 31 August 2012 (“Performance Period”). The following table sets out the relevant percentages of an executive’s Personal Allotment which will be issued at the conclusion of the Performance Period based on the TSR ranking of the Company relative to the peer group: Company Performance (TSR Ranking) % of Personal Allotment issued to each executive Up to the 50th percentile 0% At or above the 50th percentile but below the 75th percentile 50% to 99% (on a straight-line basis). At or above the 75th percentile but below the 90th percentile At or above the 90th percentile 100% 125% (b) 50% of the shares offered will be issued if the Company achieves earnings in excess of 1.5 cents per share for the year ending 30 June 2012. No shares will be granted unless the Company’s TSR is at or above the 50th percentile. In 2010 1,643,000 (2009: 2,648,500) rights were issued in accordance with the terms of the plan. At the Company’s Annual General Meeting in October 2009, shareholders approved the above plan in relation to the ongoing remuneration of Executive Directors and senior executives. During the year, a total of 14,360,000 rights under the plan were offered to 7 executives (2009: 4,100,000 rights offered to 10 executives). Summary of rights granted under the ELTSP Outstanding at the beginning of the year Granted during the year Forfeited during the year Vested during the year and shares issued Expired during the year Outstanding at the end of the year 2010 No. 2009 No. 7,800,000 7,435,000 14,360,000 4,100,000 (960,000) (907,500) (1,643,000) (2,648,500) (1,007,000) (179,000) 18,550,000 7,800,000 The outstanding balance as at 30 June 2010 is represented by: (cid:115)(cid:0) (cid:25)(cid:19)(cid:21)(cid:12)(cid:16)(cid:16)(cid:16) (cid:82)(cid:73)(cid:71)(cid:72)(cid:84)(cid:83) (cid:87)(cid:73)(cid:84)(cid:72) (cid:65) (cid:70)(cid:65)(cid:73)(cid:82) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69) (cid:65)(cid:84) (cid:71)(cid:82)(cid:65)(cid:78)(cid:84) (cid:68)(cid:65)(cid:84)(cid:69) (cid:79)(cid:70) (cid:4)(cid:16)(cid:14)(cid:17)(cid:23)(cid:19) (cid:84)(cid:72)(cid:65)(cid:84) (cid:87)(cid:73)(cid:76)(cid:76) (cid:80)(cid:79)(cid:84)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76)(cid:76)(cid:89) (cid:86)(cid:69)(cid:83)(cid:84) (cid:73)(cid:78) (cid:33)(cid:85)(cid:71)(cid:85)(cid:83)(cid:84) (cid:18)(cid:16)(cid:17)(cid:16)(cid:27) (cid:115)(cid:0) (cid:19)(cid:12)(cid:25)(cid:21)(cid:16)(cid:12)(cid:16)(cid:16)(cid:16) (cid:82)(cid:73)(cid:71)(cid:72)(cid:84)(cid:83) (cid:87)(cid:73)(cid:84)(cid:72) (cid:65) (cid:70)(cid:65)(cid:73)(cid:82) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69) (cid:65)(cid:84) (cid:71)(cid:82)(cid:65)(cid:78)(cid:84) (cid:68)(cid:65)(cid:84)(cid:69) (cid:79)(cid:70) (cid:4)(cid:16)(cid:14)(cid:16)(cid:21)(cid:24) (cid:84)(cid:72)(cid:65)(cid:84) (cid:87)(cid:73)(cid:76)(cid:76) (cid:80)(cid:79)(cid:84)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76)(cid:76)(cid:89) (cid:86)(cid:69)(cid:83)(cid:84) (cid:73)(cid:78) (cid:33)(cid:85)(cid:71)(cid:85)(cid:83)(cid:84) (cid:18)(cid:16)(cid:17)(cid:17)(cid:27) (cid:65)(cid:78)(cid:68) (cid:115)(cid:0) (cid:17)(cid:19)(cid:12)(cid:22)(cid:22)(cid:21)(cid:12)(cid:16)(cid:16)(cid:16) (cid:82)(cid:73)(cid:71)(cid:72)(cid:84)(cid:83) (cid:87)(cid:73)(cid:84)(cid:72) (cid:65) (cid:70)(cid:65)(cid:73)(cid:82) (cid:86)(cid:65)(cid:76)(cid:85)(cid:69) (cid:65)(cid:84) (cid:71)(cid:82)(cid:65)(cid:78)(cid:84) (cid:68)(cid:65)(cid:84)(cid:69) (cid:79)(cid:70) (cid:4)(cid:16)(cid:14)(cid:16)(cid:20)(cid:22) (cid:84)(cid:72)(cid:65)(cid:84) (cid:87)(cid:73)(cid:76)(cid:76) (cid:80)(cid:79)(cid:84)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76)(cid:76)(cid:89) (cid:86)(cid:69)(cid:83)(cid:84) (cid:73)(cid:78) (cid:33)(cid:85)(cid:71)(cid:85)(cid:83)(cid:84) (cid:18)(cid:16)(cid:17)(cid:18)(cid:14) Orbital 2010 Annual Report 63 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2010 35. SHARE-BASED PAYMENT PLANS (continued) Fair value of rights on grant date The following factors and assumptions were used in determining the fair value of rights on grant date: Grant Date 31-Aug-07 31-Aug-08 31-Aug-09 Life 3 years 3 years 3 years Fair Value per share 17.3 cents 5.8 cents 3.8 cents Exercise Price nil nil nil Price of shares on grant date 22.0 cents 7.9 cents 5.5 cents Expected volatility 45.40% 62.70% 65.00% Risk free interest rate 6.20% 5.68% 5.03% (d) Performance Rights Plan The Company also introduced a Performance Rights Plan as part of its long-term incentive arrangements for senior executives, which was approved by shareholders in October 2009. Under the Performance Rights Plan, performance rights will only be issued if the terms and conditions detailed below are satisﬁed. A performance right is a right to acquire one fully paid ordinary share in the Company. Until they are exercised, performance rights: (cid:8)(cid:65)(cid:9)(cid:0) (cid:68)(cid:79) (cid:78)(cid:79)(cid:84) (cid:71)(cid:73)(cid:86)(cid:69) (cid:84)(cid:72)(cid:69) (cid:72)(cid:79)(cid:76)(cid:68)(cid:69)(cid:82) (cid:65) (cid:76)(cid:69)(cid:71)(cid:65)(cid:76) (cid:79)(cid:82) (cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:67)(cid:73)(cid:65)(cid:76) (cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84) (cid:73)(cid:78) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69)(cid:83) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:78)(cid:89)(cid:27) (cid:65)(cid:78)(cid:68) (b) do not enable participating executives to receive dividends, rights on winding up, voting rights or other shareholder beneﬁts. Performance rights issued under the Performance Rights Plan will be exercisable if: (cid:8)(cid:65)(cid:9)(cid:0) (cid:65) (cid:80)(cid:69)(cid:82)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:78)(cid:67)(cid:69) (cid:72)(cid:85)(cid:82)(cid:68)(cid:76)(cid:69) (cid:73)(cid:83) (cid:77)(cid:69)(cid:84) (cid:79)(cid:86)(cid:69)(cid:82) (cid:84)(cid:72)(cid:69) (cid:80)(cid:69)(cid:82)(cid:73)(cid:79)(cid:68)(cid:83) (cid:83)(cid:80)(cid:69)(cid:67)(cid:73)(cid:108)(cid:69)(cid:68) (cid:66)(cid:89) (cid:84)(cid:72)(cid:69) (cid:34)(cid:79)(cid:65)(cid:82)(cid:68)(cid:27) (cid:79)(cid:82) (cid:8)(cid:66)(cid:9)(cid:0) (cid:84)(cid:72)(cid:69) (cid:34)(cid:79)(cid:65)(cid:82)(cid:68) (cid:65)(cid:76)(cid:76)(cid:79)(cid:87)(cid:83) (cid:69)(cid:65)(cid:82)(cid:76)(cid:89) (cid:69)(cid:88)(cid:69)(cid:82)(cid:67)(cid:73)(cid:83)(cid:69) (cid:79)(cid:78) (cid:67)(cid:69)(cid:83)(cid:83)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84) (cid:8)(cid:83)(cid:69)(cid:69) (cid:104)(cid:35)(cid:69)(cid:83)(cid:83)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:118) (cid:66)(cid:69)(cid:76)(cid:79)(cid:87)(cid:9)(cid:27) (cid:79)(cid:82) (c) it is determined by the Board in light of speciﬁc circumstances. The Terms and conditions of the offer of Performance Rights made during the year ended 30 June 2009 are as follows: (cid:8)(cid:65)(cid:9)(cid:0) (cid:45)(cid:82) (cid:52) (cid:36) (cid:51)(cid:84)(cid:73)(cid:78)(cid:83)(cid:79)(cid:78) (cid:87)(cid:73)(cid:76)(cid:76) (cid:66)(cid:69) (cid:65)(cid:87)(cid:65)(cid:82)(cid:68)(cid:69)(cid:68) (cid:17)(cid:17)(cid:12)(cid:21)(cid:16)(cid:16)(cid:12)(cid:16)(cid:16)(cid:16) (cid:80)(cid:69)(cid:82)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:78)(cid:67)(cid:69) (cid:82)(cid:73)(cid:71)(cid:72)(cid:84)(cid:83)(cid:27) (b) the grant of performance rights will be in seven tranches, each tranche with a different speciﬁed share price target as set out below: Tranche Number of performance rights Share price target $ Fair Value at grant date $ 1 2 3 4 5 6 7 2,000,000 2,000,000 2,000,000 2,000,000 1,250,000 1,250,000 1,000,000 $0.25 $0.50 $0.75 $1.00 $2.00 $3.00 $5.00 94,000 70,000 56,000 46,000 16,250 11,250 5,000 64 Annual Report 2010 Orbital 35. SHARE-BASED PAYMENT PLANS (continued) (c) the acquisition price and exercise price of the performance rights will be nil. (d) Mr T D Stinson will only be permitted to exercise a performance right if: (cid:115)(cid:0) (cid:115)(cid:0) (e) (cid:84)(cid:72)(cid:69) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:78)(cid:89) (cid:65)(cid:84)(cid:84)(cid:65)(cid:73)(cid:78)(cid:83) (cid:84)(cid:72)(cid:69) (cid:83)(cid:80)(cid:69)(cid:67)(cid:73)(cid:108)(cid:69)(cid:68) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:80)(cid:82)(cid:73)(cid:67)(cid:69) (cid:84)(cid:65)(cid:82)(cid:71)(cid:69)(cid:84) (cid:8)(cid:83)(cid:69)(cid:69) (cid:84)(cid:65)(cid:66)(cid:76)(cid:69) (cid:65)(cid:66)(cid:79)(cid:86)(cid:69)(cid:9) (cid:87)(cid:73)(cid:84)(cid:72)(cid:73)(cid:78) (cid:69)(cid:73)(cid:71)(cid:72)(cid:84) (cid:89)(cid:69)(cid:65)(cid:82)(cid:83) (cid:70)(cid:82)(cid:79)(cid:77) (cid:84)(cid:72)(cid:69) (cid:68)(cid:65)(cid:84)(cid:69) (cid:79)(cid:70) (cid:71)(cid:82)(cid:65)(cid:78)(cid:84) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69) (cid:80)(cid:69)(cid:82)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:78)(cid:67)(cid:69) (cid:82)(cid:73)(cid:71)(cid:72)(cid:84)(cid:27) (cid:65)(cid:78)(cid:68) (cid:84)(cid:72)(cid:69) (cid:83)(cid:80)(cid:69)(cid:67)(cid:73)(cid:108)(cid:69)(cid:68) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:80)(cid:82)(cid:73)(cid:67)(cid:69) (cid:84)(cid:65)(cid:82)(cid:71)(cid:69)(cid:84) (cid:73)(cid:83) (cid:65)(cid:76)(cid:83)(cid:79) (cid:65)(cid:67)(cid:72)(cid:73)(cid:69)(cid:86)(cid:69)(cid:68) (cid:65)(cid:84) (cid:84)(cid:72)(cid:69) (cid:69)(cid:78)(cid:68) (cid:79)(cid:70) (cid:84)(cid:87)(cid:79) (cid:89)(cid:69)(cid:65)(cid:82)(cid:83) (cid:70)(cid:82)(cid:79)(cid:77) (cid:84)(cid:72)(cid:69) (cid:68)(cid:65)(cid:84)(cid:69) (cid:84)(cid:72)(cid:69) (cid:84)(cid:65)(cid:82)(cid:71)(cid:69)(cid:84) (cid:73)(cid:83) (cid:108)(cid:82)(cid:83)(cid:84) (cid:65)(cid:67)(cid:72)(cid:73)(cid:69)(cid:86)(cid:69)(cid:68) (cid:8)(cid:104)(cid:54)(cid:69)(cid:83)(cid:84)(cid:73)(cid:78)(cid:71) (cid:36)(cid:65)(cid:84)(cid:69)(cid:118)(cid:9) (cid:66)(cid:65)(cid:83)(cid:69)(cid:68) (cid:79)(cid:78) (cid:84)(cid:72)(cid:69) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:78)(cid:89)(cid:7)(cid:83) (cid:65)(cid:86)(cid:69)(cid:82)(cid:65)(cid:71)(cid:69) (cid:67)(cid:76)(cid:79)(cid:83)(cid:73)(cid:78)(cid:71) (cid:83)(cid:72)(cid:65)(cid:82)(cid:69) (cid:80)(cid:82)(cid:73)(cid:67)(cid:69) (cid:79)(cid:86)(cid:69)(cid:82) (cid:65) (cid:25)(cid:16) (cid:68)(cid:65)(cid:89) (cid:80)(cid:69)(cid:82)(cid:73)(cid:79)(cid:68) (cid:85)(cid:80) (cid:84)(cid:79) (cid:65)(cid:78)(cid:68) (cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:73)(cid:78)(cid:71) (cid:84)(cid:72)(cid:69) (cid:54)(cid:69)(cid:83)(cid:84)(cid:73)(cid:78)(cid:71) (cid:36)(cid:65)(cid:84)(cid:69)(cid:27) If the speciﬁed share price target is either not achieved within eight years from the date of grant, or if so achieved, not also achieved at the end of the Vesting Date, the performance right will lapse. No performance rights were granted during the year ended 30 June 2010. 36. DEFINED CONTRIBUTION SUPERANNUATION FUND The Group contributes to a deﬁned contribution plan for the provision of beneﬁts to Australian employees on retirement, death or disability. Employee and employer contributions are based on various percentages of gross salaries and wages. Apart from the contributions required under superannuation legislation, there is no legally enforceable obligation on the Company or its controlled entities to contribute to the superannuation plan. CONSOLIDATED 2010 $’000 2009 $’000 37. COMMITMENTS (a) Operating leases Non-cancellable future operating lease rentals not provided for in the ﬁnancial statements and payable: - Not later than one year - Later than one year but not later than ﬁve years - later than ﬁve years 184 3 - 187 182 165 3 350 The Group leases plant & equipment under operating leases. The plant & equipment leases typically run for a period of 5 years and the lease payments are ﬁxed. None of the leases include contingent rentals. During the ﬁnancial year ended 30 June 2010, $171,081 was recognised as an expense in the income statement in respect of operating leases (2009:$75,240). (b) Other In June 2008 the Group received funding of $2,760,000 from the Commonwealth of Australia through the Alternative Fuels Conversion Program administered by the Department of the Environment, Water, Heritage and the Arts towards the construction of a heavy duty engine test facility. The Group will fund the maintenance and operation of the facility until at least ﬁnancial year 2014/2015 and provide the Commonwealth with preferential access to the facility, as follows: Operational commitment to the running of the heavy duty engine testing facility not provided for in the ﬁnancial statements and payable: - Not later than one year - Later than one year but not later than ﬁve years 391 1,073 1,464 391 1,464 1,855 Orbital 2010 Annual Report 65 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2010 38. CONTINGENT LIABILITIES The details and estimated maximum amounts of contingent liabilities that may become payable are set out below. The directors are not aware of any circumstance or information that would lead them to believe that these liabilities will crystallise. In the event of the Company terminating the employment of the Chief Executive Ofﬁcer (other than by reason of serious misconduct or material breach of his service agreement), an equivalent of 12 months remuneration is payable to the CEO. There are no other contingent liabilities for termination beneﬁts under the service agreements with Directors or other persons who take part in the management of any entity within the Group. 39. SUBSEQUENT EVENTS There has not arisen in the interval between the end of the ﬁnancial year and the date of this report any item, transaction or event of a material and unusual nature that is likely, in the opinion of the Directors of the Company, to signiﬁcantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in subsequent ﬁnancial years. 40. REMUNERATION OF AUDITORS Amounts received or due and receivable for audit services by: Auditors of the Company - Audit and review of ﬁnancial reports Amounts received or due and receivable for taxation services by: Auditors of the Company Amounts received or due and receivable for other services by: Auditors of the Company Total auditors’ remuneration The Auditors of the Group in 2010 and 2009 were Ernst & Young. CONSOLIDATED 2010 $m. 2009 $m. 374,420 278,950 10,055 10,000 5,627 49,726 390,102 338,676 66 Annual Report 2010 Orbital Directors’ Declaration FOR THE YEAR ENDED 30 JUNE 2010 1. In the opinion of the Directors of Orbital Corporation Limited (“the Company”): (a) the ﬁnancial statements and notes and the additional disclosures included in the Directors’ Report designated as audited, of the Group are in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the ﬁnancial position of the Group as at 30 June 2010 and of their performance, as (cid:82)(cid:69)(cid:80)(cid:82)(cid:69)(cid:83)(cid:69)(cid:78)(cid:84)(cid:69)(cid:68) (cid:66)(cid:89) (cid:84)(cid:72)(cid:69) (cid:82)(cid:69)(cid:83)(cid:85)(cid:76)(cid:84)(cid:83) (cid:79)(cid:70) (cid:84)(cid:72)(cid:69)(cid:73)(cid:82) (cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83) (cid:65)(cid:78)(cid:68) (cid:84)(cid:72)(cid:69)(cid:73)(cid:82) (cid:67)(cid:65)(cid:83)(cid:72) (cid:109)(cid:79)(cid:87)(cid:83)(cid:12) (cid:70)(cid:79)(cid:82) (cid:84)(cid:72)(cid:69) (cid:89)(cid:69)(cid:65)(cid:82) (cid:69)(cid:78)(cid:68)(cid:69)(cid:68) (cid:79)(cid:78) (cid:84)(cid:72)(cid:65)(cid:84) (cid:68)(cid:65)(cid:84)(cid:69)(cid:27) (cid:65)(cid:78)(cid:68) (ii) complying with Accounting Standards in Australia and the Corporations Regulations 2001. (b) the ﬁnancial statements and notes also comply with International Financial Reporting Standards as disclosed in note 2(a). (c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. 2. This declaration has been made after receiving the declarations required to be made to the Directors in accordance with Section 295A of the Corporations Act 2001, from the chief executive ofﬁcer and chief ﬁnancial ofﬁcer for the ﬁnancial year 30 June 2010. Signed in accordance with a resolution of Directors: W P DAY Chairman T D STINSON Managing Director Dated at Perth, Western Australia this 26th day of August 2010 Orbital 2010 Annual Report 67 Independent Audit Report FOR THE YEAR ENDED 30 JUNE 2010 Independent auditor’s report to the members of Orbital Corporation Limited Report on the Financial Report We have audited the accompanying ﬁnancial report of Orbital Corporation Limited, which comprises the statement of ﬁnancial position as at 30 June 2010, and the income statement, statement of comprehensive income, statement of changes in equity and statement of cash ﬂows for the year ended on that date, a summary of signiﬁcant accounting policies, other explanatory notes 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 and fair presentation of the ﬁnancial report in accordance with the Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the ﬁnancial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. In Note 2(a), the directors also state that the ﬁnancial report, comprising the ﬁnancial statements and notes, complies with International Financial Reporting Standards as issued by the International Accounting Standards Board. 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. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance 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 our 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, we consider 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 met the independence requirements of the Corporations Act 2001. We have given to the directors of the company a written Auditor’s Independence Declaration. In addition to our audit of the ﬁnancial report, we were engaged to undertake the services disclosed in the notes to the ﬁnancial statements. The provision of these services has not impaired our independence. Auditor’s Opinion In our opinion: 1. the ﬁnancial report of Orbital Corporation 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 at 30 June 2010 and of its performance for the year ended on that date; and complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001. 2. the ﬁnancial report also complies with International Financial Reporting Standards as issued by the International Accounting Standards Board. Report on the Remuneration Report We have audited the Remuneration Report included in pages 13 to 19 of the directors’ report for the year ended 30 June 2010. 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. Auditor’s Opinion In our opinion the Remuneration Report of Orbital Corporation Limited for the year ended 30 June 2010, complies with section 300A of the Corporations Act 2001. Ernst & Young G Lotter, Partner Perth 26 August 2010 68 Annual Report 2010 Liability limited by a scheme approved under Professional Standards Legislation GL;HG;ORBITAL;063 Orbital Shareholding Details Class of Shares and Voting Rights As at 31 July 2010 there were 5,550 shareholders of the ordinary shares of the Company. The voting rights attaching to the ordinary shares, set out in Article 8 of the Company’s Constitution, subject to any rights or restrictions for the time being attached to any class or classes of shares, are:- a) at meetings of members or class of members, each member entitled to vote may vote in person or by proxy or representative; and b) on a show of hands every person present who is a member has one vote, and on a poll every person present in person or by proxy or representative has one vote for each ordinary share held. Substantial Shareholders and Holdings as at 31 July 2010 Equity Trustees Limited SGH PI Smaller Co’s (as notiﬁed on 13 June 2007) Distribution of Shareholdings as at 31 July 2010 1-1,000 1,001-5,000 5,001-10,000 10,001-100,000 100,001 and over 29,332,832 6.20% 545 1,706 958 1,902 439 5,550 Total Shares on Issue 481,973,944 Number of shareholders holding less than a marketable parcel 3,660 Top 20 Shareholders as at 31 July 2010 NAME NUMBER OF SHARES HELD % OF SHARES National Nominees Limited* Equity Trustees Limited SGH PI Smaller Co’s Colbern Fiduciary Nominees Pty Limited Bond Street Custodians Limited Morgan Stanley Australia Securities (Nominee) Pty Limited Hotlake Pty Ltd Equity Trustees Limited SGH Tiger A/C Mr Christopher Ian Wallin & Ms Fiona Kay Wallin Nefco Nominees Pty Limited Twokind Pty Ltd Ms Barbara Lynn Gallisath Annapurna Pty Limited Mr Darryl James Smalley Dr Colin Rose Mr Michael William Ford & Mrs Nina Bette Ford Texas Holdings Pty Ltd Mr Murray Gordon Scott Ms Kerry Moran Mr David John Massey Kongming Investments Limited 112,332,425 32,036,625 9,654,964 8,476,500 8,347,700 8,000,000 7,929,005 6,892,000 6,764,999 5,750,000 4,419,298 4,200,000 4,000,000 3,134,067 3,113,092 2,982,608 2,576,730 2,400,000 2,133,333 2,000,000 237,143,346 23.31% 6.65% 2.00% 1.76% 1.73% 1.66% 1.65% 1.43% 1.40% 1.19% 0.92% 0.87% 0.83% 0.65% 0.65% 0.62% 0.53% 0.50% 0.44% 0.41% 49.20% The twenty largest shareholders hold 49.20% of the ordinary shares of the Company. * Denotes The Bank of New York Mellon nominee company for United States American Depository Receipts. This nominee company is the main representative body for Orbital’s 9,000 (approx) US shareholders. On-market buy-back There is no current on-market buy-back. 2010 Annual Report REGISTERED AND PRINCIPAL OFFICE SHARE REGISTRY 4 Whipple Street Balcatta, Western Australia, 6021 CONTACT DETAILS Australia - Telephone: 61 (0) 8 9441 2311 Facsimile: 61 (0) 8 9441 2111 INTERNET ADDRESS http://www.orbitalcorp.com.au Email: info@orbitalcorp.com.au DIRECTORS Peter Day - Chairman Terry Stinson - Chief Executive Ofﬁcer Grahame Young Mervyn Jones Vijoleta Braach-Maksvytis COMPANY SECRETARY Ian Veitch Computershare Investor Services Pty Ltd Level 2, Reserve Bank Building 45 St Georges Terrace Perth, Western Australia, 6000 Telephone: 61 (0) 8 9323 2000 Facsimile: 61 (0) 8 9323 2033 ADR FACILITY The Bank of New York Mellon 101 Barclay Street New York, NY, 10286 United States of America Telephone: 1 (212) 815 2218 Facsimile: 1 (212) 571 3050 SHARE TRADING FACILITIES Australian Stock Exchange Limited (Code "OEC") OTC Bulletin Board (Code "OBTMY") AUDITORS Ernst & Young The Ernst & Young Building 11 Mounts Bay Road Perth, Western Australia, 6000

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