Orion Engineered Carbons S.A. Annual Report 2010

FY2010 Annual Report · Orion Engineered Carbons S.A.
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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

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Auditor’s Independence Declaration .

Income Statements 

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Statements of Comprehensive Income 

Statements of Changes in Equity .

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Statements of Cashﬂows .

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Notes to the Financial Statements 

Directors’ Declaration .

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Independent Auditors Report .

Shareholding Details .

Ofﬁces and Ofﬁcers .

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Inside Back Cover

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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)

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(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)

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(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)

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(cid:8)(cid:65)(cid:9)(cid:0)

(cid:8)(cid:65)(cid:9)(cid:0)

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(cid:8)(cid:65)(cid:9)(cid:0)

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(cid:8)(cid:65)(cid:9)(cid:0)

(cid:8)(cid:65)(cid:9)(cid:0)

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(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)

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(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