TZ Limited Annual Report 2012

Plain-text annual report

TZ Limited ABN 26 073 979 272 12 November 2012 Lodged by ASX Online The Manager Company Announcements Office ASX Limited Level 4, 20 Bridge Street Sydney, NSW 2000 Dear Sir/Madam 2012 ANNUAL REPORT TZ Limited (the "Company") advises that the attached 2012 annual report was dispatched to shareholders on 25 October 2012. Yours faithfully, TZ LIMITED Kenneth Ting Executive Director and Company Secretary TZ Limited | Level 11, 1Chifley Square, Sydney, NSW 2000 Australia Phone: +612 9222 8890 Fax: +612 8208 9937 Limited 2012 annual report Connecting People to people, things to things, countries to countries, insights to action. Contents SECTION ONE Chairman’s Welcome 01 A message from Mark Bouris, Executive Chairman, TZ Limited. Directors’ Report Operational Review Telezygology, Inc. Infrastructure Protection Packaged Asset Delivery Product Development Technologies Case Studies NEXTDC Macquarie Telecom 03 05 07 09 13 15 17 SECTION TWO 19 2012 Financial Statements Chairman’s Welcome Notwithstanding a slow start, TZ Limited has ended the 2012 ﬁscal year very strongly. We can’t lose sight of the fact that being involved in proof of concept and doing it successfully positions us as a global last mile delivery provider for what could be a great growth segment in the retail market. Winning supply tenders for organisations such as Singapore Post conﬁrms that we are not only on the short list of suppliers, but that we are considered by some as number one in terms of manufacturing, pricing and technology. Shareholders should take great pride in this slowly evolving achievement. The development of the solution to ‘last mile’ fulﬁllment in Australia for online purchasing has many parts. In order to position TZ well in this environment, we have had to undertake various initiatives and close off our involvement in various planks to leverage ourselves as an e-commerce player. The ﬁrst plank is that a company like TZ needs access to real estate for our lockers to reside as footprint is a necessary but insufﬁcient variable in the e-commerce game. Our agreement with ParcelPoint is therefore an important milestone in achieving that necessary step with 500 locations currently and many more planned in the near future. The second plank to build the economics of an e-commerce business is delivery, as there is no point in footprint without a guarantee in terms of logistics ﬂow. Your company has made this a focus over the past six months, which has come to fruition through our agreement with Temando, the preeminent aggregation business for parcel delivery in Australia. The strategic alliances formed in 2012 along with our proof of conception and our agreement with Singapore Post place us strongly coming into 2013. We are currently receiving enquiries from other parts of the world which shows that the online retail business will continue to grow at a rapid rate. This proves that postal and general logistics providers will all need the same solution – a default location to deliver packages securely with sophisticated technology to manage those assets. Infrastructure Protection (IXP) has been our quiet achiever this year with solid growth and consistent implementation within leading data centres around the world. Our IXP technology is a standout globally and unlike the more contended parcel delivery environment, data cabinet security is far less competitive but with much larger potential for market growth. Cloud based computing will undoubtedly encourage heightened data security as handheld devices and cloud economics create greater demand and cost efﬁciencies respectively. TZ has many deployments across North America and Australia which offer us a competitive advantage, and we will continue to build a structure for this exciting market. Whilst this past year has been arduous, we have been purposefully executing two applications for TZ technology to build a reputation not just as a supplier but as a valuable participant in these growing markets. I’d like to thank our management, our shareholders and our suppliers for their support, commitment, patience and dedication during this period. Regards Mark Bouris, Executive Chairman 1 “ The result brought new partnerships our way and enabled us to truly show our capability.” Mark Bouris, Executive Chairman Directors ’ Report Review Of Operations TZ Limited (TZL) revenue for the ﬁscal year was approximately 8% down on last year’s performance with a year-end total of AUD$21.7 million. Overall proﬁtability of the Group was impacted as a result of Product Development Technologies, Inc. (PDT) delivering an overall year-end loss due to high implementation costs last year. To undertake several large and complex development projects, PDT invested heavily in building software resources and engineering infrastructure and to establishing a solid Android knowledge platform to support engagement on major military and defence sectors opportunities. The TZI business achieved solid sales growth with a strong base of reference customers and early adopters continuing to validate the strong proposition of the IXP and PAD technology offerings. While the Board had expected that a number of targeted project opportunities would come to fruition this period, several of these infrastructure projects that the Company has aggressively pursued have pushed out to 2013 ﬁnancial year. Nonetheless, over the year, both the PAD and IXP businesses grew signiﬁcantly. PAD sales grew fourfold from around USD$300,000 last year to over USD$1.2M. IXP sales also grew to over USD$1.4M (with about USD$400,000 coming from existing Anixter stock). Considering the stock movement and direct project sales this year, the IXP business grew by over three fold. Pleasingly both TZI business units achieved their targeted gross margins and demonstrated increased adoption within their chosen market segments with a growing list of high proﬁle, repeat purchase corporate customers. The Board has also focused on achieving operating cost reductions across both the TZI and PDT businesses this year. An overall 7% reduction in annual operating costs was achieved this year although the bulk of the restructuring occurred late in the year at least to the TZI business. The full cost beneﬁt of the restructuring should reﬂect in the 2013 ﬁnancial year. The Board is conﬁdent that the restructuring measures taken during the year will see a return to proﬁtability of the PDT business with more structured and managed growth. While early into the new ﬁscal year, PDT is tracking proﬁtably and well. The Board also maintains a high degree of conﬁdence that the TZI pipeline and enabling conditions that have been implemented over the last few years will support on-going strong and sustainable revenue growth for the TZI business. To support the Group’s operating needs, TZL successfully raised an additional AUD$4.5M through a placement in February 2012. 3 “ Pleasingly both TZI business units achieved their targeted gross margins.” Images from top – bottom: Dickory Rudduck, Director, Founder & Inventor Kenneth Ting, Executive Director & Company Secretary 35 TZI Telezygology, Inc. Over the last twelve months, TZI has continued to focus on building a sustainable business and to establishing its position as a world class technology leader in its PAD and IXP business. Speciﬁcally, the team has worked hard to achieve the following objectives: (cid:1) (cid:116)(cid:1) (cid:38)(cid:89)(cid:81)(cid:66)(cid:79)(cid:69)(cid:1)(cid:78)(cid:66)(cid:83)(cid:76)(cid:70)(cid:85)(cid:1)(cid:70)(cid:79)(cid:72)(cid:66)(cid:72)(cid:70)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1)(cid:67)(cid:70)(cid:90)(cid:80)(cid:79)(cid:69)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:70)(cid:89)(cid:74)(cid:84)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:79)(cid:70)(cid:77)(cid:1)(cid:83)(cid:70)(cid:77)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:73)(cid:74)(cid:81)(cid:84)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:1) (cid:1) Pitney Bowes and Anixter by recruiting and training a regional network of certiﬁed integrators. The Certiﬁed Integrator Program which was implemented in early 2012 is designed to establish long term relationships between TZI, qualiﬁed system integrators and end user customers and to support the promotion, sale, installation and servicing of Infrastructure Protection (IXP) and Packaged Asset Delivery (PAD) solutions in the market. TZI currently have an accredited network of over 20 integrators across the US. Similar programs are being implemented in Europe and Australia. (cid:1) (cid:116)(cid:1) (cid:39)(cid:80)(cid:68)(cid:86)(cid:84)(cid:1)(cid:80)(cid:79)(cid:1)(cid:84)(cid:85)(cid:83)(cid:66)(cid:85)(cid:70)(cid:72)(cid:74)(cid:68)(cid:1)(cid:84)(cid:66)(cid:77)(cid:70)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:84)(cid:70)(cid:68)(cid:86)(cid:83)(cid:70)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1)(cid:80)(cid:71)(cid:1)(cid:78)(cid:86)(cid:77)(cid:85)(cid:74)(cid:14)(cid:90)(cid:70)(cid:66)(cid:83)(cid:1)(cid:84)(cid:86)(cid:81)(cid:81)(cid:77)(cid:90)(cid:1)(cid:66)(cid:72)(cid:83)(cid:70)(cid:70)(cid:78)(cid:70)(cid:79)(cid:85)(cid:84)(cid:1)(cid:1) with targeted end customers to provide TZI with a solid base of recurring revenue. TZI has successfully secured a number of supply contracts for both IXP and PAD with leading organisations in the industries and vertical markets targeted. Most visible are the multi-year supply contracts with NEXTDC Limited and Macquarie Telecom Limited in the Australia market. (cid:1) (cid:116)(cid:1) (cid:38)(cid:84)(cid:85)(cid:66)(cid:67)(cid:77)(cid:74)(cid:84)(cid:73)(cid:1)(cid:84)(cid:85)(cid:83)(cid:66)(cid:85)(cid:70)(cid:72)(cid:74)(cid:68)(cid:1)(cid:81)(cid:66)(cid:83)(cid:85)(cid:79)(cid:70)(cid:83)(cid:84)(cid:73)(cid:74)(cid:81)(cid:84)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:77)(cid:70)(cid:66)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1)(cid:42)(cid:53)(cid:1)(cid:42)(cid:79)(cid:71)(cid:83)(cid:66)(cid:84)(cid:85)(cid:83)(cid:86)(cid:68)(cid:85)(cid:86)(cid:83)(cid:70)(cid:1)(cid:48)(cid:38)(cid:46)(cid:8)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:1) (cid:1) market leaders in the industries in which TZI participates. This includes the establishment of direct sales relationships and partnerships with cabinet manufacturers, access control companies such as S2 and smart data centre solution providers like Red Wood Systems for our IXP business. To drive more disciplined sales execution, the business has implemented new processes, procedures and tools to improve sales conversion, increase organisational productivity and provide enhanced customer service and support to industry partners. These processes have allowed the sales team to identify target customers based on a set of industry, customer and market-need criteria to target accounts and more effectively closeout opportunities. Over the year, the business has established a solid track record of repeat sales successes globally into Colocation Data Centres, MSPs, Cloud Service Providers, Healthcare, Government and Education, Finance, Telecommunication, Technology, Entertainment and Utilities companies. With current repeat sales commitments, management believe that a solid revenue platform of over $2M has been established providing a solid base for growth for this new ﬁscal year. Additionally, TZI has continued to make product enhancements and maintain a focus on new product introductions driven by customer feedback and market demand. Of note, is the launch of the 8 and 70 device variants of the Centurion Bridge, API and SNMP integration into leading smart data centre solutions as well as software enhancements and upgrades to both the PAD Asset Manager and IXP Centurion Server software suites. These product upgrades and enhancements demonstrate a commitment to better meet the needs of customers, OEM’s and strategic partners and to address emerging new opportunities by providing solutions to satisfy unmet needs in the marketplace. IXP Infrastructure Protection With an increasing number of external forces mandating security, compliance and governance in the IT environment, IXP is making solid progress in providing customers with an end-to-end solution that delivers proven micro-level security far beyond that offered by traditional physical security systems. To date, TZ Slidehandles are protecting more than 3,000 cabinets globally. It is estimated that the global rack market is growing at over 2,000,000 new cabinets each year. Therefore, the scope for market penetration is signiﬁcant. Of note, TZI has established a solid position in the Australian market with supply contracts to NEXTDC and Macquarie Telecom. The year saw supply to NEXTDC’s Brisbane and Melbourne facilities, with Brisbane now fully deployed and Melbourne still underway. TZI also saw initial sales to NEXTDC’s Canberra facility as NEXTDC expanded IXP supply to their new sites. Macquarie Telecom is also in deployment mode with the ﬁrst few hundred cabinets being installed at their IntelliCentre 2 facility. Additional trials are underway with other DC operators and government agencies which should help to continue IXP sales growth in the Australian market. IXP sales in the US remain consistent with adopters continuing to roll-out at their sites. Over the year, the business completed many deployments with established market players, several with repeat purchases as customers expand their operations. Good progress is being made on developing strategic partnerships with leading IT infrastructure relationships including partnerships with cabinet manufacturers to support and grow TZ Ready cabinet offerings, alliances with access control companies such as S2, and bundled offerings with smart data centre solution providers such as Red Wood Systems. Overall sales cycles have proven to be longer than the business had initially anticipated driven by capital appropriation constraints and the time taken to trial and prove the technology. Nevertheless, the IXP business continues to expand with new engagements and pilot programs with some of the world’s largest eCommerce, telecommunications and global IT solution providers. Many of these engagements should translate into multi-year accounts. With the strategic and OEM relationships that are being cultivated along with the certiﬁed integrator network and customer successes, IXP business is building its proﬁle as the leading micro security solution globally. 7 3119 PAD Packaged Asset Delivery TZI’s PAD solution automates the “last mile delivery” of package and express deliveries to commercial and residential locations. The business offers solutions to large enterprises, small to medium enterprises, out-of-home consumer delivery locations, and multi-unit residential buildings with secure, efﬁcient and convenient drop off and pick up of almost any packaged asset including vital documents, valuable merchandise, sensitive materials, perishables and critical parts and components. In each of these segments, TZI has achieved sales success over the year. The traditional Corporate PAD business continues to develop strongly with supply agreements with early adopters now ﬁnalised for 2012/2013 which should ﬁrm up revenue expectations for the next ﬁscal year. Successful trials that were completed this year with other corporates and government agencies should shore up sales potential in 2013 as they pursue their roll-out strategies. New trials are also underway with a number of other well respected high proﬁle corporate organisations on the East and West Coast of the USA. No part of the business beneﬁted more from focusing on multi-year strategic accounts then our PAD business into enterprise accounts. The business was successful in closing multi-year volume purchase agreements with two fortune 100 companies in the US. Management expects to at least double the number of PAD deployments this ﬁscal year compared to last year. The business is also pursuing a number of strategic initiatives in the smart locker space in the US and Canada across a number of sectors including the following programs: (cid:1) (cid:1) (cid:116)(cid:1) (cid:56)(cid:80)(cid:83)(cid:76)(cid:74)(cid:79)(cid:72)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:66)(cid:79)(cid:1)(cid:80)(cid:79)(cid:14)(cid:77)(cid:74)(cid:79)(cid:70)(cid:1)(cid:72)(cid:83)(cid:80)(cid:68)(cid:70)(cid:83)(cid:90)(cid:1)(cid:83)(cid:70)(cid:85)(cid:66)(cid:74)(cid:77)(cid:70)(cid:83)(cid:1)(cid:85)(cid:80)(cid:1)(cid:77)(cid:70)(cid:87)(cid:70)(cid:83)(cid:66)(cid:72)(cid:70)(cid:1)(cid:53)(cid:59)(cid:42)(cid:8)(cid:84)(cid:1)(cid:84)(cid:86)(cid:68)(cid:68)(cid:70)(cid:84)(cid:84)(cid:71)(cid:86)(cid:77) deployments in the Australian market with Coles Supermarket, whose refrigerated lockers are scheduled for market launch later this year (cid:116)(cid:1) (cid:56)(cid:80)(cid:83)(cid:76)(cid:74)(cid:79)(cid:72)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:66)(cid:79)(cid:1)(cid:74)(cid:79)(cid:69)(cid:86)(cid:84)(cid:85)(cid:83)(cid:90)(cid:1)(cid:77)(cid:70)(cid:66)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1)(cid:80)(cid:87)(cid:70)(cid:83)(cid:79)(cid:74)(cid:72)(cid:73)(cid:85)(cid:1)(cid:69)(cid:70)(cid:77)(cid:74)(cid:87)(cid:70)(cid:83)(cid:90)(cid:1)(cid:68)(cid:66)(cid:83)(cid:83)(cid:74)(cid:70)(cid:83)(cid:1)(cid:85)(cid:80)(cid:1)(cid:67)(cid:83)(cid:74)(cid:79)(cid:72)(cid:1)(cid:66)(cid:79)(cid:1)(cid:70)(cid:79)(cid:69)(cid:14)(cid:85)(cid:80)(cid:14)(cid:1) end logistics solution to the market. TZI’s technology is currently being tested for use with their software solution with a plan to begin ﬁeld testing in the near future. Despite the loss of the parcel locker tender in Australia, postal organisations continue to be an area of focus for the business. In September 2012, TZI was awarded a tender to design and manufacture lockers for Singapore Post. Singapore Post is Singapore’s designated Public Postal Licensee (PPL) in the domestic market and the company provides postal and digital mail delivery across 220 countries worldwide. This win provides TZI with great credibility as the Directors understand that the tender was aggressively contested by the major postal locker suppliers. Since this win TZI has been approached by other postal organisations to tender for the deployment of their smart locker network. The business-to-consumer segment is a key growth area and a strategic area of focus for TZI and PAD. With e-commerce and home deliveries increasing rapidly each year led by on-line retailers such as Amazon.com, eBay, Apple in the US and DealsDirect and Catch Of The Day in Australia, the physical distribution of goods is becoming more and more critical to consumers and a good customer experience is driving customer satisfaction and loyalty. Consumers rate choice of delivery options as an important feature of their on-line shopping experience and a large percentage of these say they would shop more on-line if a greater choice of delivery options was provided. As a result of these trends, the Company will break new ground in Australia by establishing its own community locker network to provide consumers with a range of convenient and public locker locations for parcel collection and goods return. Teaming agreements with freight aggregator Temando, and parcel collection point business Parcel Point, are the ﬁrst of a number of enabling relationships to be formalised. TZI has also shored up its supply chain by establishing preferred supply relationships with key supply partners such as Dexion Limited to lower the overall cost of manufacturing and supporting greater fabrication ﬂexibility. Signiﬁcant product development has been undertaken on the PAD product suite with the Company now able to supply extremely ﬂexible and modular solutions for both indoor and outdoor deployments including metal and wood ﬁnished together with a full range of technology solutions including smart cards, biometrics, keypads, QR and Barcode readers and the acceptance of credit cards. 11 Human Toolz Mobile iPad Stand 13 PDT Product Development Technologies PDT top line performance was within 5% of planned expectations this year despite slower sales traction at the start of the ﬁscal year. The securing of large and complex Medical and Defence programs over the last two years, have necessitated PDT to scale its software capability rapidly to serve the needs of these client programs. The investment in these resources and to building robust software engineering infrastructure and processes has been a signiﬁcant undertaking with a high cost of implementation. The restructuring program implemented by the Board has focused on improving operational efﬁciencies including cost reductions through right sizing and general program management process improvements. Software development services are an important component in the PDT suite of offerings as clients increasingly demand seamless creation and integration of embedded software in parallel with product design to enable efﬁcient and accurate device development. To better support the on-going business, initiatives are underway to build PDT’s low cost Ukrainian team with a higher complement of software engineers to enable more cost effective implementation of software projects. As part of the initiative, PDT Ukraine recently relocated to a more modern facility closer to high technology businesses and to talent pools to support future recruitment drives. The new ﬁscal year is off to a strong start with PDT meeting its planned target for July and August. Work in progress is high and the sales pipeline is strong, with interest from large prime contractors in the Defence and Military sector, major players in the Medical Device arena and well known Consumer companies. PDT has also recently won contracts in the Android based cell phone space as well as projects requiring the development of very sophisticated, cutting edge medical devices. Both sectors represent good margin return. Together with strong retention of PDT’s long term customer base and high level of repeat development work, PDT is managing growth and aligning itself with its customer’s evolving needs. The Board remains conﬁdent in the business prospects for the Company and look forward to stronger performance and revenue growth in the new year. Case Study NEXTDC Limited NEXTDC is one of the leading data centre organisations in Australia, delivering premium facilities and cutting edge solutions to their extensive list of corporate, government and wholesale customers. In a little over two years, NEXTDC has built over 18,000 square metres of technical space in Australia’s ﬁve major cities. NEXTDC is rapidly cementing its place as a key player in the Australian and New Zealand data centre space through the establishment of unique, independent facilities that offer high availability, connectivity, ﬂexibility and most of all, security. NEXTDC’s range of data storage solutions enables customers to choose from a number of scalable, energy efﬁcient options that ensure unsurpassed data protection and overall peace of mind. NEXTDC began discussions with TZ Limited after identifying that a critical piece of infrastructure was needed as part of their data centre implementation to provide micro-protection for their customers whilst still offering convenience and ease of use. Another requirement was the implementation of a modular system that could grow and evolve as the popularity of cloud computing continues to increase in the Australia and New Zealand markets. Additionally, NEXTDC required a cabinet level security solution that was built on an open network, could operate through a web-based interface and could scale and be deployed based on an established infrastructure module. In September 2011, TZ Limited entered into an agreement with NEXTDC as a preferred supply partner for their cabinet level micro-protection needs. TZ Limited’s Centurion™ system was adopted as the implementation platform and deployed initially at the Brisbane facility, the ﬁrst of ﬁve locations to be built and commissioned. Additionally, TZ supported the development of NEXTDC’s mobile data center management application, ONEDC, which was created along with a web-based customer portal to enable full control of the racks throughout the facilities. “The technical development capability and responsiveness of the TZ team to meet our needs really differentiated them from the competition,” said NEXTDC Deputy Chairman Bevan Slattery. “One of the critical drivers in considering the development of our data center facilities was to not only deliver high quality data center infrastructure solutions and services to our customers, but to also meet the efﬁcient management of capital expenditure through the employment of a modular technical ﬁt out design. To us, the TZ solution is the only system that ticks all the boxes.” The TZ Centurion™ System has now been successfully deployed across NEXTDC’s data centres in Brisbane, Melbourne and Canberra with over 1,000 racks now live. Further installations are planned for the Sydney and Perth sites as they are brought on line in early 2013, together with expansion within the Melbourne and Canberra sites. 15 1 “The technical development capability and responsiveness of the TZ team to meet our needs really differentiated them from the competition” 17 Case Study Maquarie Telecom As Australia’s only integrated Managed Hosting, Cloud and business-only telecommunications company, Macquarie Telecom recently opened its world-class $60m Intellicentre 2 data centre in North Ryde, Sydney. In recognition of its exemplary design and implementation, Intellicentre 2 was the ﬁrst data centre in Australia to receive Tier III Design Certiﬁcation for 100% uptime during maintenance; the data centre also boasts global top-tier levels of service and cyber-security with certiﬁcations including ISO27001, ASIO T4, and DSD Gateway Certiﬁcation. Macquarie Telecom’s emphasis on delivering superior customer service, through developments like its $5m Sydney-based MacquarieHub contact centre, has seen it receive numerous international accolades including “Best Customer Care” at the 2008 World Communication Awards. Intellicentre 2 was designed to allow 24/7 accessibility for ultimate customer accessibility; however, the granting and organising of physical right-of-entry remained a manual process. Macquarie Telecom employed TZ’s Centurion™ System as a solution platform for cost-effective, highly efﬁcient and secure customer access, with the commitment to roll-out TZ’s solution on at least 95% of Intellicentre 2’s total cabinet deployment. The TZ Centurion™ System provides access control for physical security and environmental monitoring, offering users the ability to manage systems remotely based on each asset’s unique IP address. With the support of TZ, Macquarie Telecom integrated TZ Centurion™ into their MacquarieView customer portal, extending customers’ ability to manage their IT infrastructure with real-time performance visibility to include physical access, monitoring and reporting at a granular level. With the integration of TZ’s solution, customers are now able to remotely audit and schedule visits to their cabinets. The solution also supports Intellicentre 2’s rigorous on-site security procedures for true end-to-end electronic management, including dual- factor biometric man-traps and key-only access to locked server racks. Operating in conjunction with the Lenel Building Access Control system, the upgrade to the networked and centrally-controlled TZ system has also simpliﬁed operational process and procedures used to manage independent locks. “Our emphasis on data security has already seen us granted ASIO T4 and DSD Gateway Protected status as one of the country’s most secure hosting providers,” said James Mystakidis, General Manager of Hosting, Macquarie Telecom. “Intellicentre 2 employs multiple security measures to enhance physical and cyber-security, and we see the TZ Centurion solution as a critical part of this portfolio. TZ Centurion’s resilient reputation met our highest standards of accredited security needed for critical application hosting and the protection of IT infrastructure and intellectual assets.” Since opening of the Intellicentre 2 facility in early June, over 200 racks have already been deployed with TZ SlideHandles. Given the size of the facility, TZ is looking forward to signiﬁcant deployments over the next 12 to 24 months. With the successful implementation of the system, Macquarie Telecom is now exploring the potential to retroﬁt the TZ solution at their existing facilities across Australia. 2012 ﬁnancial statements 19 TZ Limited ABN 26 073 979 272 Annual Report - 30 June 2012 TZ Limited Corporate directory 30 June 2012 R%;/9,*;5 b$;U Y*7;%5 " P=$%;#$( f/((/,= 0%(< R%9U*;> e73379U P*#6$(> 5/9;/,$;> f/((/,= 0%(< N*,%9/ *) $((7$& 3(/> JI TdP*((/&& M,;//, M>3(/> NMO JLLL? W75,;$&%$ EL'LL Wb O/3(/53$> J] N*@/#8/; JLEJ 2/@/& EE? 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Directors 0=/ )*&&*:%(< 6/;5*(5 :/;/ 3%;/9,*;5 *) 01 2%#%,/3 37;%(< ,=/ :=*&/ *) ,=/ )%($(9%$& >/$; $(3 76 ,* ,=/ 3$,/ *) ,=%5 ;/6*;,? 7(&/55 *,=/;:%5/ 5,$,/3' b$;U Y*7;%5 " P=$%;#$( f/((/,= 0%(< R%9U*;> e73379U Principal activities R7;%(< ,=/ )%($(9%$& >/$; ,=/ 6;%(9%6$& 9*(,%(7%(< $9,%@%,%/5 *) ,=/ 9*(5*&%3$,/3 /(,%,> 9*(5%5,/3 *)' (cid:1) ,=/ 3/@/&*6#/(, *) %(,/&&%5,/#5 ,=$, /($8&/ ,=/ 9*##/;9%$&%5$,%*( *) =$;3:$;/ $(3 5*),:$;/ 5*&7,%*(5 )*; ,=/ #$($<*&*<> S(9. $(3 01S W75,;$&%$ Q,> 2%#%,/3 Z401S4\i $(3 6;*@%3%(< $ )// )*; 5/;@%9/ 6;*379, 3/5%<( $(3 /(<%(//;%(< 9*(57&,%(< Z5/;@%9/5\ R/@/&*6#/(, 0/9=(*&*<%/5 S(9.? Z4QR04\. ,=;*7<= Q;*379, (cid:1) W&& *) ,=/ *6/;$,%*(5 *) ,=/ 9*(5*&%3$,/3 /(,%,> $;/ 8$5/3 %( W75,;$&%$? ,=/ V(%,/3 M,$,/5 *) W#/;%9$? V(%,/3 f%(<3*# $(3 VU;$%(/. Dividends 0=/;/ :/;/ (* 3%@%3/(35 6$%3 *; 3/9&$;/3 37;%(< ,=/ 97;;/(, *; 6;/@%*75 )%($(9%$& >/$;. Review of operations 0=/ &*55 )*; ,=/ 9*(5*&%3$,/3 /(,%,> $),/; 6;*@%3%(< )*; %(9*#/ ,$B $#*7(,/3 ,* hEJ?FDE?LLL ZFL ^7(/ JLEE' h]?I]H?LLL\. A7;,=/; %()*;#$,%*( *( ,=/ ;/@%/: *) *6/;$,%*(5? )%($(9%$& 6*5%,%*( $(3 )7,7;/ 5,;$,/<%/5 %5 3/,$%&/3 %( M/9,%*( T(/ *) ,=/ W((7$& e/6*;,. Significant changes in the state of affairs 0=/;/ :/;/ (* 5%<(%)%9$(, 9=$( 37;%(< ,=/ )%($(9%$& >/$;. Matters subsequent to the end of the financial year T( EH M/6,/#8/; JLEJ? ,=/ 9*#6$(> $((*7(9/3 %, =$3 8//( $:$;3/3 ,=/ 9*(,;$9, )*; ,=/ 5766&>? 3/&%@/;>? 3/5%<(? 3/@/&*6#/(,? %(5,$&&$,%*(? ,/5,%( ,* 3/#*(5,;$,/ ,* ,=/ :*;&3 ,=/ 9*(5*&%3$,/3 /(,%,>d5 Q$9U$ ,/9=(*&*<>. ,=/ 9*#6$(> $&5* $((*7(9/3 $ 6;*";$,$ ;/(*7(9/$8&/ /(,%,&/#/(, *))/; ,* ;$%5/ T( EH M/6,/#8/; JLEJ? $66;*B%#$,/&> hH?DLL?LLL 8/)*;/ 9$6%,$& ;$%5%(< /B6/(5/5. 0=/ 6;*9//35 ;$%5/3 :%&& $55%5, %( )7(3%(< 9$6%,$& ;/X7%;/#/(,5 ,* #//, ,=/ 9*(,;$9, :%,= M%(<$6*;/ Q*5,. V(3/; ,=/ /(,%,&/#/(, *))/;? /&%<%8&/ 5=$;/=*&3/;5 :%&& 8/ /(,%,&/3 ,* $9X7%;/ *(/ (/: *;3%($;> 5=$;/ )*; /@/;> ,=;// *;3%($;> 5=$;/5 =/&3 $, $ 6;%9/ *) EL 9/(,5 6/; *;3%($;> 5=$;/. W&& 6$;,%9%6$(,5 :%&& $&5* ;/9/%@/ *(/ );// $,,$9=%(< e%<=,5 *6,%*( /B/;9%5$8&/ $, EH 9/(,5 $, $(> ,%#/ *( *; 8/)*;/ FE T9,*8/; JLEF? )*; /@/;> ,:* (/: 5=$;/5 %557/3. TZ Limited Directors' report 30 June 2012 0=/ ja0 A7(35 ,=$, =*&3 9*(@/;,%8&/ (*,/5 9*(@/;,%8&/ %(,* 5=$;/5 %( ,=/ 9*(5*&%3$,/3 /(,%,> =$@/ $<;//3 ,=$, ,=/ 9*(@/;5%*( 6;%9/ *) FK 9/(,5 $66&>%(< ,* ,=/ 5/;%/5 S 9*(@/;,%8&/ (*,/5 $(3 5/;%/5 SSS 9*(@/;,%8&/ (*,/5 $(3 ,=/ 9*(@/;5%*( 6;%9/ *) HJ 9/(,5 $66&>%(< ,* ,=/ 5/;%/5 SSSY 9*(@/;,%8&/ (*,/5 $(3 ,=/ 5/;%/5 Sa 9*(@/;,%8&/ (*,/5 Z5,%&& ,* 8/ %557/3? 578k/9, ,* 5=$;/=*&3/; $66;*@$&\? :%&& (*, 8/ ;/379/3 8> ,=/ (/: 5=$;/5 8/%(< %557/3 $, ,=/ ;%<=,5 %557/ (*; 8> $(> *) ,=/ *6,%*(5 8/%(< /B/;9%5/3 $, EH 9/(,5. N* *,=/; #$,,/; *; 9%;97#5,$(9/ =$5 $;%5/( 5%(9/ FL ^7(/ JLEJ ,=$, =$5 5%<(%)%9$(,&> $))/9,/3? *; #$> 5%<(%)%9$(,&> $))/9, ,=/ 9*(5*&%3$,/3 /(,%,>45 *6/;$,%*(5? ,=/ ;/57&,5 *) ,=*5/ *6/;$,%*(5? *; ,=/ 9*(5*&%3$,/3 /(,%,>45 5,$,/ *) $))$%;5 %( )7,7;/ )%($(9%$& >/$;5. Likely developments and expected results of operations S()*;#$,%*( *( &%U/&> 3/@/&*6#/(,5 %( ,=/ *6/;$,%*(5 *) ,=/ 9*(5*&%3$,/3 /(,%,> $(3 ,=/ /B6/9,/3 ;/57&,5 *) *6/;$,%*(5 =$@/ (*, 8//( %(9&73/3 %( ,=%5 ;/6*;, 8/9$75/ ,=/ 3%;/9,*;5 8/&%/@/ %, :*7&3 8/ &%U/&> ,* ;/57&, %( 7(;/$5*($8&/ 6;/k73%9/ ,* ,=/ 9*(5*&%3$,/3 /(,%,>. Environmental regulation 0=/ 9*(5*&%3$,/3 /(,%,> %5 (*, 578k/9, ,* $(> 5%<(%)%9$(, /(@%;*(#/(,$& ;/<7&$,%*( 7(3/; W75,;$&%$( P*##*(:/$&,= *; M,$,/ &$:. Information on directors N$#/' 0%,&/' j7$&%)%9$,%*(5' !B6/;%/(9/ $(3 /B6/;,%5/' T,=/; 97;;/(, 3%;/9,*;5=%65' b$;U Y*7;%5 !B/97,%@/ P=$%;#$( YP*# ZVNMO\? bP*# ZVNMO\? g*(RY75 ZVNMO\? g*(R2%,, ZVOM\? A.P.W. b$;U Y*7;%5 =$5 *@/; JK >/$;54 /B6/;%/(9/ %( ,=/ 875%(/55? )%($(9/ $(3 6;*6/;,> 5/9,*;5. g/ %5 97;;/(,&> ,=/ !B/97,%@/ P=$%;#$( *) _/&&*: Y;%9U e*$3 g*&3%(<5 2%#%,/3? $ &%5,/3 )%($(9%$& 5/;@%9/5 9*#6$(> ,=$, *))/;5 6;*379,5 $(3 5/;@%9/5 )*; =*#/ &*$(5? )%($(9%$& 6&$((%( *) N/: M*7,= O$&/5 Z4VNMO4\ W75,;$&%$( M9=**& *) Y75%(/55 $(3 5%,5 *( ,=/ VNMO W75,;$&%$( M9=**& *) Y75%(/55 W3@%5*;> P*7(9%& Y*$;3. g/ %5 $&5* $ #/#8/; *) R/67,> Q;%#/ b%(%5,/; O$>(/ M:$(d5 A%($(9%$& M/9,*; W3@%5*;> P*7(9%&. b$;U %5 ,=/ $7,=*; *) O/$&,= O%-$;3 $(3 0=/ _/&&*: Y;%9U e*$3 ,* _*7; A%($(9%$& M/97;%,>? $(3 =/ :;%,/5 $ (7#8/; *) )%($(9%$& 9*&7#(5 )*; 5*#/ *) W75,;$&%$d5 #*5, ;/9*<(%5/3 678&%9$,%*(5. g/ =*5,5 P=$((/& Gd5 0=/ W66;/(,%9/ W75,;$&%$ $(3 P/&/8;%,> W66;/(,%9/ W75,;$&%$. !B/97,%@/ P=$%;#$( *) _/&&*: Y;%9U e*$3 g*&3%(<5 2%#%,/3 ZWM[' _Ye\? P=$%;#$( *) W(,/* R%$<(*5,%95 2%#%,/3 ZWM[' WRT\? P=$%;#$( *) M/;/($ e/5*7;9/5 2%#%,/3 $(3 Y*$;3 b/#8/; *) ,=/ M>3(/> e**5,/;5. A*;#/; 3%;/9,*;5=%65 Z%( ,=/ &$5, F >/$;5\' M6/9%$& ;/56*(5%8%&%,%/5' S(,/;/5,5 %( 5=$;/5' S(,/;/5,5 %( *6,%*(5' N*(/ N*(/ E?]]I?GDI *;3%($;> 5=$;/5 F?LLL?LLL *6,%*(5 *@/; *;3%($;> 5=$;/5 ! TZ Limited Directors' report 30 June 2012 N$#/' 0%,&/' j7$&%)%9$,%*(5' !B6/;%/(9/ $(3 /B6/;,%5/' T,=/; 97;;/(, 3%;/9,*;5=%65' A*;#/; 3%;/9,*;5=%65 Z%( ,=/ &$5, F >/$;5\' M6/9%$& ;/56*(5%8%&%,%/5' S(,/;/5,5 %( 5=$;/5' S(,/;/5,5 %( *6,%*(5' N$#/' 0%,&/' !B6/;%/(9/ $(3 /B6/;,%5/' f/((/,= 0%(< !B/97,%@/ R%;/9,*; $(3 P*#6$(> M/9;/,$;> Y$9=/&*; *) P*##/;9/ $(3 Y$9=/&*; *) 2$: ZA%;5, P&$55 g*(*7;5\ $(3 $ #/#8/; *) ,=/ S(5,%,7,/ *) P=$;,/;/3 W99*7(,$(,5. f/((/,= 0%(< =$5 $ 8$9U<;*7(3 %( $99*7(,%( $(3 678&%9 $(3 6;%@$,/ /X7%,> ;$%5%(<5. f/((/,= k*%(/3 R/7,59=/ Y$(U %( EGGI $),/; H >/$;5 $, Q;%9/:$,/;=*75/P**6/;5 P*;6*;$,/ A%($(9/ $(3 0$B 3%@%5%*(. g/ :$5 a%9/ Q;/5%3/(, *) 0/9=(*&*<> S(@/5,#/(, Y$(U%(< $, R/7,59=/ Y$(U $(3 :*;U/3 %( R/7,59=/ Y$(U45 M>3(/>? 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R%9U*;> /5,$8&%5=/3 $(3 87%&, $ 5799/55)7& M>3(/> 8$5/3 %(375,;%$& $;9=%,/9,7;$& 6;$9,%9/ *@/; $ JL">/$; 9*(57&,%(< 9$;//;. g/ %5 ;/9*<(%5/3 $5 $ ;/56/9,/3 %(375,;%$& $(3 %(,/;%*; 3/5%<(/;. 0=/ 5799/55 *) =%5 9*(57&,%(< 6;$9,%9/ /($8&/3 b; e73379U ,* )*975 *( =%5 %(,/;/5, %( %((*@$,%*( $(3 %(@/(,%*(? /5,$8&%5=%(< S(,/&&/9,7$& !B9=$( 2,3 %( EGGD? :%,= ,=/ *8k/9,%@/ *) 3/@/&*6%(< %(,/&&/9,7$& 6;*6/;,> :%,= <&*8$& ;/&/@$(9/ $(3 $66&%9$,%*(. M%(9/ ,=/(? =/ =$5 5799/55)7&&> 9*##/;9%$&%5/3 #$(> *) =%5 9;/$,%*(5? ,=/ #*5, &79;$,%@/ 8/%(< 6$,/(,/3 )7;(%,7;/ 5>5,/#5 :%,= ;/@/(7/5 %( /B9/55 *) hHL #%&&%*(. g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ompany secretary f/((/,= 0%(< %5 ,=/ 9*#6$(> 5/9;/,$;> $(3 $&5* $ 3%;/9,*; *) ,=/ 9*#6$(>. M// 4S()*;#$,%*( *( 3%;/9,*;54. " TZ Limited Directors' report 30 June 2012 Meetings of directors 0=/ (7#8/; *) #//,%(<5 *) ,=/ 9*#6$(>45 Y*$;3 *) R%;/9,*;5 =/&3 37;%(< ,=/ >/$; /(3/3 FL ^7(/ JLEJ? $(3 ,=/ (7#8/; *) #//,%(<5 $,,/(3/3 8> /$9= 3%;/9,*; :/;/' b Y*7;%5 f 0%(< R e73379U A7&& Y*$;3 W,,/(3/3 EE EE EE g/&3 EE EE EE g/&3' ;/6;/5/(,5 ,=/ (7#8/; *) #//,%(<5 =/&3 37;%(< ,=/ ,%#/ ,=/ 3%;/9,*; =/&3 *))%9/. Remuneration report (audited) 0=/ ;/#7(/;$,%*( ;/6*;,? :=%9= =$5 8//( $73%,/3? *7,&%(/5 ,=/ 3%;/9,*; $(3 U/> #$($ $(3 ,=/ 9*#6$(>? %( $99*;3$(9/ :%,= ,=/ ;/X7%;/#/(,5 *) ,=/ P*;6*;$,%*(5 W9, JLLE $(3 %,5 e/<7&$,%*(5. 0=/ ;/#7(/;$,%*( ;/6*;, %5 5/, *7, 7(3/; ,=/ )*&&*:%(< #$%( =/$3%(<5' W Y P R ! 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V(3/; ,=/ R%;/9,*; $(3 !B/97,%@/ !X7%,> Q&$(? ,=/ (7#8/; *) ;%<=,5 $(3 *6,%*(5 ,=$, #$> 8/ %557/3 ,* $ Q$;,%9%6$(, $(3 ,=/ 6/;)*;#$(9/ 9;%,/;%$ $(3 =7;3&/5 ,* 8/ #/, 6;%*; ,* ,=/ %557/ *; /B/;9%5/ *) 579= e%<=,5 $(3 T6,%*(5 %5 ,* 8/ 5/, 8> ,=/ 8*$;3 *) 3%;/9,*;5 *) ,=/ 9*#6$(> %( ;/&%$(9/ *( ,=/ $3@%9/ *) $( %(3/6/(3/(, ;/#7(/;$,%*( 9*(57&,$(,. Non-executive directors remuneration A//5 $(3 6$>#/(,5 ,* (*("/B/97,%@/ 3%;/9,*;5 ;/)&/9, ,=/ 3/#$(35 :=%9= $;/ #$3/ *(? $(3 ,=/ ;/56*(5%8%&%,%/5 *)? ,=/ 3%;/9,*;5. N*("/B/97,%@/ 3%;/9,*;54 )//5 $(3 6$>#/(,5 $;/ ;/@%/:/3 $((7$&&> 8> ,=/ Y*$;3. 0=/ Y*$;3 9*(5%3/;5 $3@%9/ );*# 5=$;/=*&3/;5? $(3 ,$U/5 %(,* $99*7(, ,=/ )//5 6$%3 ,* (*(l/B/97,%@/ 3%;/9,*;5 *) 9*#6$;$8&/ 9*#6$(%/5? :=/( 7(3/;,$U%(< ,=/ $((7$& ;/@%/: 6;*9/55. N*("/B/97,%@/ 3%;/9,*;5 3* (*, ;/9/%@/ 5=$;/ *6,%*(5 *; *,=/; %(9/(,%@/5. # TZ Limited Directors' report 30 June 2012 WM[ &%5,%(< ;7&/5 ;/X7%;/ ,=$, ,=/ $<<;/<$,/ (*("/B/97,%@/ 3%;/9,*;5 ;/#7(/;$,%*( 5=$&& 8/ 3/,/;#%(/3 6/;%*3%9$&&> 8> $ 5=$;/=*&3/;5 $(3 ,=/ #$((/; %( :=%9= %, %5 $66*;,%*(/3 $#*(<5, 3%;/9,*;5 %5 ;/@%/:/3 $((7$&&>. 0=/ #*5, ;/9/(, 3/,/;#%($,%*( :$5 $, ,=/ W`b =/&3 *( FL N*@/#8/; JLLD? :=/;/ ,=/ 5=$;/=*&3/;5 $66;*@/3 $( $<<;/<$,/ ;/#7(/;$,%*( *) hKLL?LLL. Executive remuneration 0=/ 9*(5*&%3$,/3 /(,%,> $(3 9*#6$(> $%#5 ,* ;/:$;3 /B/97,%@/5 :%,= $ &/@/& $(3 #%B *) ;/#7(/;$,%*( 8$5/3 *( ,=/%; 6*5%,%*( $(3 ;/56*(5%8%&%,>? :=%9= %5 8*,= )%B/3 $(3 @$;%$8&/. 0=/ /B/97,%@/ ;/#7(/;$,%*( $(3 ;/:$;3 );$#/:*;U =$5 )*7; 9*#6*(/(,5' (cid:1) 8$5/ 6$> $(3 (*("#*(/,$;> 8/(/)%,5 5=*;,",/;# 6/;)*;#$(9/ %(9/(,%@/5 5=$;/"8$5/3 6$>#/(,5 *,=/; ;/#7(/;$,%*( 579= $5 576/;$((7$,%*( $(3 &*(< 5/;@%9/ &/$@/ (cid:1) (cid:1) (cid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fQS4\ 8/%(< $9=%/@/3. fQSd5 %(9&73/ 6;*)%, 9*(,;%87,%*(? 975,*#/; 5$,%5)$9,%*(? &/$3/;5=%6 9*(,;%87,%*( $(3 6;*379, #$($#/(,5. W5 (*,/3 $8*@/? $ R%;/9,*; $(3 !B/97,%@/ !X7%,> Q&$( =$5 8//( 5/, 76 ,* ;/:$;3 /B/97,%@/5 8$5/3 *( &*(< ,/;# %(9/(,%@/ #/$57;/5 %( ,=/ )*;# *) *6,%*(5 $(3 ;%<=,5. 0=/5/ %(9&73/ %(9;/$5/ %( 5=$;/=*&3/;5 @$&7/ ;/&$,%@/ ,* ,=/ /(,%;/ #$;U/, $(3 ,=/ %(9;/$5/ 9*#6$;/3 ,* ,=/ 9*(5*&%3$,/3 /(,%,>45 3%;/9, 9*#6/,%,*;5. Consolidated entity performance and link to remuneration e/#7(/;$,%*( )*; 9/;,$%( %(3%@%37$&5 %5 3%;/9,&> &%(U/3 ,* ,=/ 6/;)*;#$(9/ *) ,=/ 9*(5*&%3$,/3 /(,%,>. !B/97,%@/5 $(3 *,=/; /#6&*>//5 9$( 8/ %557/3 :%,= *6,%*(5 $(3 ;%<=,5 ,* $9X7%;/ 5=$;/5 %( ,=/ 9*(5*&%3$,/3 /(,%,>. 0=/ (7#8/; $(3 ,=/ ,/;#5 *) ,=/ *6,%*(5 $(3 ;%<=,5 %557/3 $;/ 3/,/;#%(/3 8> ,=/ 3%;/9,*;5 $),/; 9*(5%3/;$,%*( *) ,=/ /#6&*>//45 6/;)*;#$(9/ $(3 ,=/%; $8%&%,> ,* 9*(,;%87,/ ,* ,=/ $9=%/@/#/(, *) ,=/ 9*(5*&%3$,/3 /(,%,>45 *8k/9,%@/5. e/)/; ,* 5/9,%*( ! *) ,=/ ;/#7(/;$,%*( ;/6*;, )*; 3/,$%&5 *) ,=/ &$5, )%@/ >/$;5 /$;(%(<5 $(3 ,*,$& 5=$;/=*&3/;5 ;/,7;(. W5 ,=/ *6,%*(5 $(3 ;%<=,5 9*()/; $ ;%<=, 87, (*, $( *8&%<$,%*( *( ,=/ ;/9%6%/(, *) ,=/ *6,%*(5? ,=/ 3%;/9,*;5 3* (*, 9*(5%3/; %, (/9/55$;> ,* /5,$8&%5= $ 6*&%9> %( ;/&$,%*( ,* ,=/ 6/;5*( &%#%,%(< =%5 *; =/; /B6*57;/ ,* ;%5U $5 $ 9*(5/X7/(9/ *) *:(%(< ,=/ *6,%*(5 *; ;%<=,5. Use of remuneration consultants R7;%(< ,=/ )%($(9%$& >/$; /(3/3 FL ^7(/ JLEJ? ,=/ 9*#6$(> 3%3 (*, /(<$/$; /(3/3 FL ^7(/ JLEE. 0=/ 9*#6$(> 3%3 (*, ;/9/%@/ $(> 56/9%)%9 )//38$9U $, ,=/ W`b ;/<$;3%(< %,5 ;/#7(/;$,%*( 6;$9,%9/5. $ TZ Limited Directors' report 30 June 2012 B Details of remuneration Amounts of remuneration R/,$%&5 *) ,=/ ;/#7(/;$,%*( *) ,=/ 3%;/9,*;5? *,=/; U/> #$($ $(3 ;/56*(5%8%&%,> )*; 6&$((%(\ $(3 56/9%)%/3 /B/97,%@/5 *) 01 2%#%,/3 $;/ 5/, *7, %( ,=/ )*&&*:%(< ,$8&/5. 0=/ U/> #$($ 9*(5%5,/3 *) ,=/ 3%;/9,*;5 *) 01 2%#%,/3 $(3 ,=/ )*&&*:%(< /B/97,%@/5' (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) b$;U M9=:$;,- " P=%/) !B/97,%@/ T))%9/; *) QR0 S(9. Q$7& P$5/> " N*("!B/97,%@/ R%;/9,*; *) QR0 S(9. O%&&%$# 2/*(< " a%9/ Q;/5%3/(, *) T6/;$,%*(5 *) 0/&/-><*&*<> S(9. 0%#*,=> f*/=&/; " P=%/) A%($(9%$& T))%9/; *) 0/&/-><*&*<> S(9. ^*=( O%&5*( " A*;#/; P=%/) !B/97,%@/ T))%9/; *) 0/&/-><*&*<> S(9. Z;/5%<(/3 FL b$> JLEJ\ 2012 N$#/ Executive Directors: b Y*7;%5 f 0%(< R e73379U Other Key Management Personnel: b M9=:$;,- Q P$5/> O 2/*(< 0 f*/=&/; ^ O%&5*( Z;/5%<(/3 FL b$> JLEJ\ n M=*;,",/;# 8/(/)%,5 Q*5," /#6&*>#/(, 8/(/)%,5 M=$;/"8$5/3 6$>#/(,5 P$5= 5$&$;> $(3 )//5 h T,=/; h N*(" #*(/,$;> h M76/;" $((7$,%*( h T6,%*(5 h e%<=,5 h 0*,$& h HHL?GEI FHD?HFK JLJ?FJ] EL?JLL D?LLL " " " ]?LL] " " " HFG?DHE FJG?IFL " FDG?LIG GD?]IE EHK?FLI EFH?HLG " " " " EL?JIL " G?GGJ D?KDI I?EJL " F?DFJ F?FDL " " " " HLI?LLL J?EHJ?FHD " ED?JLL " FH?]FI " EH?EEJ " IDG?FIE " " " " " " " " " ]GL?IK] D]J?EDK JEL?FFD F]D?HDG GD?]IE EK]?GFE EHH?FFD HLI?LLL J?GID?]DD n ^*=( O%&5*( ;/5%<(/3 );*# =%5 ;*&/ $5 P!T FL b$> JLEJ? =*:/@/;? =/ =$5 9*(,%(7/3 %( $ 9*(57&,%(< 9$6$9%,> % TZ Limited Directors' report 30 June 2012 2011 N$#/ Executive Directors: b Y*7;%5 f 0%(< R e73379U Other Key Management Personnel: b M9=:$;,- Q P$5/> Z$66*%(,/3 EJ b$> JLEE\ n ^ O%&5*( O 2/*(< Z$66*%(,/3 E T9,*8/; JLEL\ 0 f*/=&/; M=*;,",/;# 8/(/)%,5 Q*5," /#6&*>#/(, 8/(/)%,5 M=$;/"8$5/3 6$>#/(,5 P$5= 5$&$;> $(3 )//5 h T,=/; h N*(" #*(/,$;> h M76/;" $((7$,%*( h T6,%*(5 h e%<=,5 h 0*,$& h FD]?DHI J]G?DKE JE]?IDH EL?JLL D?LLL " " " " " " " ]HF?EIK DFJ?F]E " HIJ?DLE FKH?HKE " E?DGH?DJF E?J]J?H]F JE]?IDH FDH?]GL FLJ D?GHI D?GGH ]F?DKI FGL?LLL " " " " " " " " " " FIG?EFF " " ]F?DKI FGL?LLL EHE?HIG EJE?DFL E?GI]?IE] J]F EIH ED?GKG D?GHI K?GDD EG?]DL J?EJJ F?LHE EJ?EKI " " E?HIK?KKD " " ]JI?LKJ EKL?]FE EFL?]EE H?FFL?FLJ n Q P$5/>45 ;/#7(/;$,%*( %(9&73/5 hIE?KDI %( 5=*;, ,/;# 8/(/)%,5 ;/9/%@/3 )*; ,=/ 6/;%*3 6;%*; ,* =%5 $66*%(,#/(, $5 $ N*("!B/97,%@/ R%;/9,*; *) QR0 S(9. 0=/ 6;*6*;,%*( *) ;/#7(/;$,%*( &%(U/3 ,* 6/;)*;#$(9/ $(3 ,=/ )%B/3 6;*6*;,%*( $;/ $5 )*&&*:5' N$#/ Executive Directors: b Y*7;%5 f 0%(< R e73379U Other Key Management Personnel: b M9=:$;,- Q P$5/> ^ O%&5*( O 2/*(< 0 f*/=&/; A%B/3 ;/#7(/;$,%*( JLEJ JLEE W, ;%5U " M0S W, ;%5U " 20S JLEJ JLEE JLEJ JLEE " m " m " m " m " m " m " m " m " m " m " m " m " m " m " m " m HGm H]m " m " m " m " m " m " m I]m IIm " m " m " m " m " m " m KEm KJm ELLm ELLm ELLm ELLm ELLm ELLm JJm JFm ELLm ELLm ELLm ELLm ELLm ELLm & TZ Limited Directors' report 30 June 2012 C Service agreements e/#7(/;$,%*( $(3 *,=/; ,/;#5 *) /#6&*>#/(, )*; U/> #$($ e73379U !B/97,%@/ R%;/9,*; E ^7(/ JLEE J >/$;5 :%,= $7,*#$,%9 ;/(/:$& 6/;%*35 *) *(/ >/$;. Y$5/ 5$&$;> *) VMRhJEL?LLL 6/; $((7# :%,= $ (*,%9/ 6/;%*3 *) FL 3$>5. b$;U M9=:$;,- P=%/) !B/97,%@/ T))%9/; *) QR0 S(9. E R/9/#8/; JLEE N* )%B/3 ,/;# Y$5/ 5$&$;> *) VMhFGD?LLL $(3 (*,%9/ 6/;%*3 8> (/<*,%$,%*(. Q$7& P$5/> N*("!B/97,%@/ R%;/9,*; *) QR0 S(9. EJ b$> JLEE N* )%B/3 ,/;# Y$5/ 5$&$;> *) VMhEKL?LLL $(3 (*,%9/ 6/;%*3 8> (/<*,%$,%*(. O%&&%$# 2/*(< a%9/ Q;/5%3/(, T6/;$,%*(5 *) 0/&/-><*&*<> S(9. E T9,*8/; JLEL N* )%B/3 ,/;# Y$5/ 5$&$;> *) VMhEKL?LLL $(3 (*,%9/ 6/;%*3 8> (/<*,%$,%*(. 0%# f*/=&/; P=%/) A%($(9%$& T))%9/; *) 0/&/-><*&*<> S(9. JJ ^7&> JLEE N* )%B/3 ,/;# Y$5/ 5$&$;> *) VMhEHL?LLL $(3 (*,%9/ 6/;%*3 8> (/<*,%$,%*(. f/> #$($#/(,5 %( ,=/ /@/(, *) ;/#*@$& )*; #%59*(379,. D Share-based compensation Issue of shares 0=/;/ :/;/ (* 5=$;/5 %557/3 ,* 3%;/9,*;5 $(3 *,=/; U/> #$($/$; /(3/3 FL ^7(/ JLEJ. Options 0=/;/ :/;/ (* *6,%*(5 %557/3 ,* 3%;/9,*;5 $(3 *,=/; U/> #$($/$; /(3/3 FL ^7(/ JLEJ. ' TZ Limited Directors' report 30 June 2012 R/,$%&5 *) *6,%*(5 *@/; *;3%($;> 5=$;/5 %557/3 ,* 3%;/9,*;5 $(3 *,=/; U/> #$($/$; /(3/3 FL ^7(/ JLEJ $;/ 5/, *7, 8/&*:' N$#/ b Y*7;%5 f 0%(< N7#8/; *) *6,%*(5 <;$(,/3 37;%(< ,=/ >/$; N7#8/; *) *6,%*(5 @/5,/3 37;%(< ,=/ >/$; JLEJ JLEE JLEJ JLEE " " " " E?LLL?LLL IKL?LLL E?LLL?LLL IKL?LLL Vesting conditions for options granted as compensation in prior years 0=/ *6,%*(5 $;/ 5/6$;$,/3 %(,* ,=;// ,;$(9=/5 $(3 /B/;9%5/ 6/;%*35' Z%\ 0=/ )%;5, ,;$(9=/ *) E?IKL?LLL *6,%*(5 ZE?LLL?LLL b$;U Y*7;%5 $(3 IKL?LLL f/((/,= 0%(<\ :%&& 8/ /B/;9%5$8&/ %( ,=/ 6/;%*3 );*# E ^7&> JLEE Z*;? %) 5/97;%,%/5 %( ,=/ 9*#6$(> *; $(> ;/&$,/3 8*3> 9*;6*;$,/ *) ,=/ 9*#6$(> $;/ &%5,/3 *( ,=/ NWMRWj 6;%*; ,* E ^7&> JLEE? ,=/ 3$,/ ,=$, %5 FL 3$>5 $),/; ,=/ 3$,/ *) ,=$, &%5,%(<\ ,* $(3 %(9&73%(< FL ^7(/ JLED? $, $( /B/;9%5/ 6;%9/ *) hE.LL 6/; *6,%*(. Z%%\ 0=/ 5/9*(3 ,;$(9=/ *) E?IKL?LLL *6,%*(5 ZE?LLL?LLL b$;U Y*7;%5 $(3 IKL?LLL f/((/,= 0%(<\ :%&& 8/ /B/;9%5$8&/ %( ,=/ 6/;%*3 );*# E ^7&> JLEJ Z*;? %) 5/97;%,%/5 %( ,=/ 9*#6$(> *; $(> ;/&$,/3 8*3> 9*;6*;$,/ *) ,=/ 9*#6$(> $;/ &%5,/3 *( ,=/ NWMRWj 6;%*; ,* E ^7&> JLEJ? ,=/ 3$,/ ,=$, %5 FL 3$>5 $),/; ,=/ 3$,/ *) ,=$, &%5,%(<\ ,* $(3 %(9&73%(< FL ^7(/ JLEI? $, $( /B/;9%5/ 6;%9/ *) hJ.LL 6/; *6,%*(. Z%%%\ 0=/ ,=%;3 ,;$(9=/ *) E?IKL?LLL *6,%*(5 ZE?LLL?LLL b$;U Y*7;%5 $(3 IKL?LLL f/((/,= 0%(<\ :%&& 8/ /B/;9%5$8&/ %( ,=/ 6/;%*3 );*# E ^7&> JLEF Z*;? %) 5/97;%,%/5 %( ,=/ 9*#6$(> *; $(> ;/&$,/3 8*3> 9*;6*;$,/ *) ,=/ 9*#6$(> $;/ &%5,/3 *( ,=/ NWMRWj 6;%*; ,* E ^7&> JLEF? ,=/ 3$,/ ,=$, %5 FL 3$>5 $),/; ,=/ 3$,/ *) ,=$, &%5,%(<\ ,* $(3 %(9&73%(< FL ^7(/ JLE]? $, $( /B/;9%5/ 6;%9/ *) hF.LL 6/; *6,%*(. 0=/ *6,%*(5 <;$(,/3 $;/ (*, 578k/9, ,* ,=/ 5$,%5)$9,%*( *) 6/;)*;#$(9/ 9*(3%,%*(5. 0=/ <;$(,5 :/;/ #$3/ 7(3/; ,=/ R%;/9,*; $(3 !B/97,%@/ !X7%,> Q&$( ,* $,,;$9,? ;/,$%(? #*,%@$,/ $(3 ;/:$;3 5/(%*; /B/97,%@/5 $(3 R%;/9,*;5 Z%(9&73%(< (*("/B/97,%@/ 3%;/9,*;5\ *) ,=/ 9*#6$(>. 0=/ *6,%*(5 :%&& &$65/ %) (*, /B/;9%5/3 8> ,=/ ;/56/9,%@/ /B6%;> 3$,/ *; %) /#6&*>#/(, 9/$5/5 Z$6$;, );*# %) 37/ ,* 3/$,=? %(9$6$9%,> *; ;/37(3$(9>\. 0=/;/ $;/ (* *,=/; @/5,%(< 9*(3%,%*(5 %( ;/56/9, *) ,=/5/ *6,%*(5. Performance rights 0=/ ,/;#5 $(3 9*(3%,%*(5 *) /$9= <;$(, *) 6/;)*;#$(9/ ;%<=,5 $))/9,%(< ;/#7(/;$,%*( *) 3%;/9,*;5 $(3 *,=/; U/> #$($/$; *; )7,7;/ ;/6*;,%(< >/$;5 $;/ $5 )*&&*:5' `;$(, 3$,/ a/5,%(< 3$,/ $(3 /B/;9%5$8&/ 3$,/ !B6%;> 3$,/ M=$;/ 6;%9/ ,$; JLEL E^7&> JLEE FL ^7(/ JLEJ hL.LL hL.]HL Q/;)*;#$(9/ ;%<=,5 <;$(,/3 9$;;> (* 3%@%3/(3 *; @*,%(< ;%<=,5. R/,$%&5 *) 6/;)*;#$(9/ ;%<=,5 *@/; *;3%($;> 5=$;/5 %557/3 ,* 3%;/9,*;5 $(3 *,=/; U/> #$($/$; /(3/3 FL ^7(/ JLEJ $;/ 5/, *7, 8/&*:' N$#/ b Y*7;%5 f 0%(< N7#8/; *) ;%<=,5 <;$(,/3 37;%(< ,=/ >/$; N7#8/; *) ;%<=,5 @/5,/3 37;%(< ,=/ >/$; JLEJ JLEE JLEJ JLEE " " " " " " ]LL?LLL DLL?LLL ( TZ Limited Directors' report 30 June 2012 E Additional information 0=/ /$;(%(<5 *) ,=/ 9*(5*&%3$,/3 /(,%,> )*; ,=/ )%@/ >/$;5 ,* FL ^7(/ JLEJ $;/ 57##$;%5/3 8/&*:' M$&/5 ;/@/(7/ !YS0RW !YS0 2*55 $),/; %(9*#/ ,$B JLL] h4LLL JLLG h4LLL JLEL h4LLL JLEE h4LLL JLEJ h4LLL EH?GIF ZG?I]I\ ZEE?LIF\ ZEJ?FFE\ EI?DGD ZE]?JII\ ZJL?FEI\ ZJH?HL]\ EI?FL] ZEG?JDH\ ZJE?D]J\ ZJD?FHI\ JJ?FGG ZF?LGH\ ZH?FEF\ Z]?I]H\ JE?EI] ZK?]FI\ ZI?DLK\ ZEJ?FDE\ 0=/ )$9,*;5 ,=$, $;/ 9*(5%3/;/3 ,* $))/9, ,*,$& 5=$;/=*&3/;5 ;/,7;( Z40Me4\ $;/ 57##$;%5/3 8/&*:' JLL] JLLG JLEL JLEE JLEJ M=$;/ 6;%9/ $, )%($(9%$& >/$; /(3 ZhW\ Y$5%9 /$;(%(<5 6/; 5=$;/ Z9/(,5 6/; 5=$;/\ F.KK ZJG.LH\ L.GD ZKL.LL\ L.HH ZHG.HD\ L.JH ZG.LE\ L.EL ZG.DL\ This concludes the remuneration report, which has been audited. Shares under option V(%557/3 *;3%($;> 5=$;/5 *) 01 2%#%,/3 7(3/; *6,%*( $, ,=/ 3$,/ *) ,=%5 ;/6*;, $;/ $5 )*&&*:5' `;$(, 3$,/ JD A/8;7$;> JLEL JD A/8;7$;> JLEL JD A/8;7$;> JLEL EG A/8;7$;> JLL] n JH R/9/#8/; JLEL n !B6%;> 3$,/ FL ^7(/ JLED FL ^7(/ JLEI FL ^7(/ JLE] EG A/8;7$;> JLEF EG A/8;7$;> JLEF !B/;9%5/ 6;%9/ N7#8/; 7(3/; *6,%*( hE.LL hJ.LL hF.LL hE.LL hL.HJ E?IKL?LLL E?IKL?LLL E?IKL?LLL F?LLL?LLL F?LLL?LLL EE?JKL?LLL n 0=/5/ *6,%*(5 :/;/ <;$(,/3 ,* ja0? $ =/3 ;%<=, 8> @%;,7/ *) ,=/ *6,%*( ,* 6$;,%9%6$,/ %( $(> 5=$;/ %557/ *) ,=/ 9*#6$(> *; *) $(> *,=/; 8*3> 9*;6*;$,/. Shares issued on the exercise of options 0=/;/ :/;/ (* 5=$;/5 *) 01 2%#%,/3 %557/3 *( ,=/ /B/;9%5/ *) *6,%*(5 37;%(< ,=/ >/$; /(3/3 FL ^7(/ JLEJ. Shares issued on the exercise of performance rights 0=/ )*&&*:%(< *;3%($;> 5=$;/5 *) 01 2%#%,/3 :/;/ %557/3 37;%(< ,=/ >/$; /(3/3 FL ^7(/ JLEJ *( ,=/ /B/;9%5/ *) 6/;)*;#$(9/ ;%<=,5 <;$(,/3' R$,/ 6/;)*;#$(9/ ;%<=,5 <;$(,/3 JD A/8;7$;> JLEL !B/;9%5/ 6;%9/ N7#8/; *) 5=$;/5 %557/3 hL.LL E?HLL?LLL ) TZ Limited Directors' report 30 June 2012 Indemnity and insurance of officers 0=/ 9*#6$(> =$5 %(3/#(%)%/3 ,=/ 3%;/9,*;5 $(3 /B/97,%@/5 *) ,=/ 9*#6$(> )*; 9*5,5 %(97;;/3? %( ,=/%; 9$6$9%,> $5 $ 3%;/9,*; *; /B/97,%@/? )*; :=%9= ,=/> #$> 8/ =/&3 6/;5*($&&> &%$8&/? /B9/6, :=/;/ ,=/;/ %5 $ &$9U *) <**3 )$%,=. R7;%(< ,=/ )%($(9%$& >/$;? ,=/ 9*#6$(> 6$%3 $ 6;/#%7# %( ;/56/9, *) $ 9*(,;$9, ,* %(57;/ ,=/ 3%;/9,*;5 $(3 /B/97,%@/5 *) ,=/ 9*#6$(> $<$%(5, $ &%$8%&%,> ,* ,=/ /B,/(, 6/;#%,,/3 8> ,=/ P*;6*;$,%*(5 W9, JLLE. 0=/ 9*(,;$9, *) %(57;$(9/ 6;*=%8%,5 3%59&*57;/ *) ,=/ ($,7;/ *) &%$8%&%,> $(3 ,=/ $#*7(, *) ,=/ 6;/#%7#. Indemnity and insurance of auditor 0=/ 9*#6$(> =$5 (*,? 37;%(< *; 5%(9/ ,=/ )%($(9%$& >/$;? %(3/#(%)%/3 *; $<;//3 ,* %(3/#(%)> ,=/ $73%,*; *) ,=/ 9*#6$(> *; $(> ;/&$,/3 /(,%,> $<$%(5, $ &%$8%&%,> %(97;;/3 8> ,=/ $73%,*;. R7;%(< ,=/ )%($(9%$& >/$;? ,=/ 9*#6$(> =$5 (*, 6$%3 $ 6;/#%7# %( ;/56/9, *) $ 9*(,;$9, ,* %(57;/ ,=/ $73%,*; *) ,=/ 9*#6$(> *; $(> ;/&$,/3 /(,%,>. Proceedings on behalf of the company N* 6/;5*( =$5 $66&%/3 ,* ,=/ P*7;, 7(3/; 5/9,%*( JFI *) ,=/ P*;6*;$,%*(5 W9, JLLE )*; &/$@/ ,* 8;%(< 6;*9//3%(<5 *( 8/=$&) *) ,=/ 9*#6$(>? *; ,* %(,/;@/(/ %( $(> 6;*9//3%(<5 ,* :=%9= ,=/ 9*#6$(> %5 $ 6$;,> )*; ,=/ 67;6*5/ *) ,$U%(< ;/56*(5%8%&%,> *( 8/=$&) *) ,=/ 9*#6$(> )*; $&& *; 6$;, *) ,=*5/ 6;*9//3%(<5. Non-audit services 0=/;/ :/;/ (* (*("$73%, 5/;@%9/5 6;*@%3/3 37;%(< ,=/ )%($(9%$& >/$; 8> ,=/ $73%,*;. Officers of the company who are former audit partners of Grant Thornton Audit Pty Ltd 0=/;/ $;/ (* *))%9/;5 *) ,=/ 9*#6$(> :=* $;/ )*;#/; $73%, 6$;,(/;5 *) `;$(, 0=*;(,*( W73%, Q,> 2,3. Rounding of amounts 0=/ 9*#6$(> %5 *) $ U%(3 ;/)/;;/3 ,* %( P&$55 T;3/; G]oELL? %557/3 8> ,=/ W75,;$&%$( M/97;%,%/5 $(3 S(@/5,#/(,5 P*##%55%*(? ;/&$,%(< ,* 4;*7(3%(<"*))4. W#*7(,5 %( ,=%5 ;/6*;, =$@/ 8//( ;*7(3/3 *)) %( $99*;3$(9/ :%,= ,=$, P&$55 T;3/; ,* ,=/ (/$;/5, ,=*75$(3 3*&&$;5? *; %( 9/;,$%( 9$5/5? ,=/ (/$;/5, 3*&&$;. Auditor's independence declaration W 9*6> *) ,=/ $73%,*;45 %(3/6/(3/(9/ 3/9&$;$,%*( $5 ;/X7%;/3 7(3/; 5/9,%*( FLIP *) ,=/ P*;6*;$,%*(5 W9, JLLE %5 5/, *7, *( ,=/ )*&&*:%(< 6$ 2,3 :$5 $66*%(,/3 $73%,*;5 %( ^7(/ JLEJ $(3 9*(,%(7/5 %( *))%9/ %( $99*;3$(9/ :%,= 5/9,%*( FJI *) ,=/ P*;6*;$,%*(5 W9, JLLE. 0=%5 ;/6*;, %5 #$3/ %( $99*;3$(9/ :%,= $ ;/5*&7,%*( *) 3%;/9,*;5? 67;57$(, ,* 5/9,%*( JG]ZJ\Z$\ *) ,=/ P*;6*;$,%*(5 W9, JLLE. T( 8/=$&) *) ,=/ 3%;/9,*;5 pppppppppppppppppppppppppppppppp b$;U Y*7;%5 R%;/9,*; pppppppppppppppppppppppppppppppp f/((/,= 0%(< R%;/9,*; J] M/6,/#8/; JLEJ M>3(/> TZ Limited Corporate Governance Statement 30 June 2012 This 2012 Corporate Governance Statement sets out the corporate governance principles adopted by the board of directors (the ‘Board’) in governing TZ Limited (the ‘Company’) and its subsidiaries (collectively, the ‘Consolidated Entity’) and reflects the corporate governance principles which have been adopted during the financial year ended 30 June 2012. In adopting the principles the Board formally reviewed the Corporate Governance Principles and Recommendations issued by the ASX Corporate Governance Council. The Company is a small company and accordingly the Board considers that many of the corporate governance guidelines intended to apply to larger companies are not practical. The Company's position on those recommendations is set out below. Principle 1: Lay solid foundations for management and oversight The Board's primary responsibility is to oversee the Company's business activities and management for the benefit of Company's shareholders which it accomplishes by: setting objectives, goals and strategic direction with a view to maximise shareholder value; • establishing corporate governance, and ethical business standards; • • approving and monitoring budgets and major investments; • ensuring adequate internal controls exist and are appropriately monitored; • ensuring significant business risks are identified and appropriately managed; and • appointing senior executives and monitoring their performance. The Board has delegated responsibilities and authorities to management to enable management to conduct the Company's day to day activities. Matters which are not covered by these delegations, such as approvals which exceed certain limits, require Board approval. Apart from the statements on responsibility above, the Company has not formalised the functions reserved to the Board and those delegated to management due to the relatively small size of the Company. Similarly, the Company has not adopted a formal process for evaluating the performance of senior executives for the reasons outlined above. The performance of senior executives takes place at meetings of the Board and occurred during the current reporting period. Principle 2: Structure the board to add value Directors appointed by the Board by reason of a vacancy are subject to re-election by the Company's shareholders at the following annual general meeting. Directors are subject to re-election by rotation at least every three years. The names of the directors in office at the date of this Report, the date they were appointed, the date of their most recent re-election by the Company's shareholders and their status as non-executive, executive or independent directors are set out in the table below: Director Mark Bouris Kenneth Ting Dickory Rudduck Appointed 18 June 2009 18 June 2009 14 May 2010 Re-Elected 17 November 2010 22 November 2011 17 November 2010 Non-Executive No No No Independent No No No Mr Dickory Rudduck is standing for re-election by rotation at the 2012 annual general meeting. The skills and experience of each director are set out in the Director’s Report in the Company's 2012 Annual Report. The Company's directors are appointed based on the specific governance skills required by the Company, including an appropriate blend of relevant experience appropriate to the Company's field of operations, accounting and financial management and following consideration of the Company's objectives with respect to diversity. " TZ Limited Corporate Governance Statement 30 June 2012 The areas of divergence with recommended principles are set out below: • The majority of directors are not independent as they are all executive directors. • The Chairman is not independent and is an executive director. • As the whole Board only consists of three directors, the Company does not have a formally constituted Nomination Committee as the Board believes it would not be a more efficient mechanism than the full Board focussing the Company on specific issues. Currently, the Board as a whole performs the roles and functions of a Nomination Committee. These roles and functions include: devising criteria for Board membership; regularly reviewing the need for various skills and experience on the Board; considering the Company's objectives with respect to diversity when selecting candidates; and indentifying specific individuals for nomination as directors. The Board also oversees management succession plans and evaluates the Chairman's and the Board's performance and makes recommendations for the appointment and removal of directors. When a vacancy exists on the Board or where it is considered that a director with particular skills or experience is required, the Board selects a panel of candidates with the appropriate expertise and experience from which the most suitable candidate is appointed on merit. • The Company does not have a formal process for evaluating the performance of the Board and the individual directors, other than as set out above. The above areas of divergence are due to the relatively small size of the Company and its operations. Each director of the Company has the right to seek independent professional advice at the expense of the Company. Principle 3: Promote ethical and responsible decision making Board members, executive management and Company officers are made aware of the requirements to follow corporate policies and procedures, to obey the law and to maintain appropriate standards of honesty and integrity at all times. The Company does not have a formal written code of conduct to guide compliance with legal and other obligations. This reflects the Company's size which makes its legal compliance a less onerous task than with larger companies. The Board continues to review the situation to determine the most appropriate and effective operational procedures. The Board is committed to an inclusive workplace that embraces and promotes diversity. The Company is committed to setting measurable objectives for attracting and engaging women at the Board level, in senior management positions and across the Consolidated Entity as a whole. Progress against set diversity related targets will be included in future annual reports. The gender representation profile of the Company and the Consolidated Entity as a whole is as follows: • Board Level: • Key management personnel: • Consolidated Entity as a whole: 0 % 0 % 16 % Principle 4: Safeguard integrity in financial reporting The Company was not a company required by ASX Listing Rule 12.7 to have an Audit Committee during the year. The Board has determined that, due to the relatively small size of the Company, it would not be efficient to appoint a formal audit committee. Nevertheless, the Board has adopted procedures to adequately address issues related to the integrity of the Company’s financial reporting and to oversee the independence of the external auditors. The procedures include the following main responsibilities: • Monitor the integrity of the financial statements of the Company and review significant financial reporting changes; • Review the Company’s internal financial control system and risk management systems; • Appoint the external auditor and to approve the remuneration and terms of engagement of the external auditor; • Monitor and review the external auditor’s independence, objectivity and effectiveness, taking into consideration relevant professional and regulatory requirements; and • Develop and implement policy on the engagement of the external auditor to supply non-audit services, taking into account relevant ethical guidance regarding the provision of non-audit services by the external audit firm. The skills and experience of each director is set out in the Director’s Report in the Annual Report for the year ended 30 June 2012. # TZ Limited Corporate Governance Statement 30 June 2012 Principle 5: Make timely and balanced disclosure The Company and its directors are aware of continuous disclosure requirements under the Listing Rules and Corporations Act and operate in an environment where strong emphasis is placed on full and appropriate disclosure. The Company has formal written policies regarding disclosure which is publicly available on the Company’s website. Principle 6: Respects the rights of shareholders The Company does not have a communications strategy to promote effective communication with shareholders, as it believes this is excessive for small companies. The Company maintains a website which is used in conjunction with timely announcements to the ASX to ensure shareholders are kept fully informed. The Company also aims to ensure that the shareholders are informed of all major developments through: • despatch of the annual and half yearly financial reports; • despatch of all notices of meetings of shareholders; and • submitting to a vote of shareholders proposed major changes in the consolidated entity which may impact on share ownership rights. The Board encourages full participation of shareholders at the annual general meeting to ensure high level of accountability and identification of the consolidated entity's strategic goals. Important issues are presented to the shareholders as single resolutions. The Company requests the external auditor to attend the general meeting. Principle 7: Recognise and manage risk The Board has adopted the role of identification, assessment, monitoring and managing the significant areas of risk applicable to the consolidated entity and its operations. The Board has not established a separate committee to deal with these matters as the directors consider the size of the Company and its operations does not warrant a separate committee at this time. The directors have identified the significant areas of risk applicable to the consolidated entity and its operations and the Board considers the matter of risk management as a standing agenda item at board meetings. For the reasons set out above the Company has not established formal policies on risk management. The Board endeavours to mitigate any risks by continually reviewing the activities of the Company in order to identify key business and operational risks and ensuring that they are appropriately assessed and managed. The Company has received assurances from the chief financial officer (or equivalents) and chief executive officer (or equivalents) of the Consolidated Entity that the declaration under section 295A of the Corporations Act is founded on a system of risk management and internal control which is operating effectively in all material respects in relation to financial reporting risks. Principle 8: Remunerate fairly and responsibly Because of the relatively small size of the Company and its operations, the Board does not consider it appropriate, at this time, to form a separate committee to deal with executive remuneration. Accordingly, the Company does not have a remuneration committee made up of a majority of independent members, chaired by an independent member as recommended by the ASX Corporate Governance Council. Instead, the Board as a whole establishes and reviews annually the remuneration of the executive directors and senior executives, as well as superannuation arrangements, the remuneration framework for all directors and remuneration by gender. Details of the Company's policy for determining the nature and amount of emoluments of Board members and key management personnel of the Company are contained in the Directors' Report. In accordance with Corporations Act requirements, the Company discloses the fees or salaries paid to all directors, and executive officers of the Company. $ TZ Limited Financial report 30 June 2012 Contents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egistered office 2/@/& EE? E P=%)&/> MX7$;/ M>3(/> NMO JLLL Principal place of business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imited Statement of comprehensive income For the year ended 30 June 2012 Revenue T,=/; %(9*#/ Expenses e$: #$,/;%$&5 $(3 9*(57#$8&/5 75/3 M789*(,;$9,*;5 9*5,5 !#6&*>// 8/(/)%,5 /B6/(5/ T9976$(9> /B6/(5/ R/6;/9%$,%*( $(3 $#*;,%5$,%*( /B6/(5/ 2*55 *( 5$&/ *) k*%(, @/(,7;/ P*##7(%9$,%*(5 /B6/(5/ Q;*)/55%*($& $(3 9*;6*;$,/ 5/;@%9/5 0;$@/& $(3 $99*##*3$,%*( /B6/(5/ R/@/&*6#/(, 9*5,5 M=$;/ *) (/, &*55/5 *) k*%(, @/(,7;/ $99*7(,/3 )*; 75%(< ,=/ /X7%,> #/,=*3 T,=/; /B6/(5/5 A%($(9/ 9*5,5 Loss before income tax expense S(9*#/ ,$B /B6/(5/ Note Consolidated 2012 $'000 2011 $'000 H K D D I JJ?FGL JF?HIL F?DLK D?]LL ZE?KLH\ Z]?FHD\ ZEF?DFI\ Z]E]\ ZE?ID]\ ZF]D\ ZFL]\ ZJ?KHI\ ZE?JF]\ ZI]K\ ZEDE\ ZE?GII\ ZH?]DJ\ ZE?HIE\ ZI?]FF\ ZEH?KGG\ ZIDI\ ZE?]KD\ " ZFHG\ ZF?FJJ\ ZE?KLH\ ZGLH\ ZJEI\ ZJ?LJK\ ZH?LG]\ ZEJ?FHJ\ Z]?DIK\ ZEG\ ZELG\ Loss after income tax expense for the year attributable to the owners of TZ Limited JG ZEJ?FDE\ Z]?I]H\ Other comprehensive income A*;/%<( 97;;/(9> ,;$(5&$,%*( T,=/; 9*#6;/=/(5%@/ %(9*#/ )*; ,=/ >/$;? (/, *) ,$B ]IF ]IF ZH?LHF\ ZH?LHF\ Total comprehensive income for the year attributable to the owners of TZ Limited ZEE?H]]\ ZEJ?]JI\ Y$5%9 /$;(%(<5 6/; 5=$;/ R%&7,/3 /$;(%(<5 6/; 5=$;/ Cents Cents HH HH ZG.DL\ ZG.DL\ ZG.LE\ ZG.LE\ The above statement of comprehensive income should be read in conjunction with the accompanying notes & TZ Limited Statement of financial position As at 30 June 2012 Assets Current assets P$5= $(3 9$5= /X7%@$&/(,5 0;$3/ $(3 *,=/; ;/9/%@$8&/5 S(@/(,*;%/5 S(@/5,#/(, %( 5=*;, ,/;# 3/6*5%, 0*,$& 97;;/(, $55/,5 Non-current assets S(@/5,#/(,5 $99*7(,/3 )*; 75%(< ,=/ /X7%,> #/,=*3 Q;*6/;,>? 6&$(, $(3 /X7%6#/(, S(,$(<%8&/5 R/)/;;/3 ,$B T,=/; 0*,$& (*("97;;/(, $55/,5 Total assets Liabilities Current liabilities 0;$3/ $(3 *,=/; 6$>$8&/5 Y*;;*:%(<5 R/;%@$,%@/ )%($(9%$& %(5,;7#/(,5 Q;*@%5%*(5 T,=/; 0*,$& 97;;/(, &%$8%&%,%/5 Non-current liabilities Y*;;*:%(<5 R/;%@$,%@/ )%($(9%$& %(5,;7#/(,5 R/)/;;/3 ,$B Q;*@%5%*(5 T,=/; 0*,$& (*("97;;/(, &%$8%&%,%/5 Total liabilities Net assets Equity P*(,;%87,/3 /X7%,> e/5/;@/5 W997#7&$,/3 &*55/5 Total equity Note Consolidated 2012 $'000 2011 $'000 ] G EL EE EJ EF EH EK ED EI E] EG JL JE JJ JF JH JK JD JI J] JG GLH K?KHH FHJ " D?IGL " E?KIK EG?KKF GHJ E]D JJ?JKD E?EHD H?GEF FFE K?KLL EE?]GL E]I E?]]H EG?IKL IKE EIG JJ?IKE JG?LHD FH?DHE K?KGJ EL?F]E H] GJ HFI ED?KKL F?IJL IKG E?EHH ED HDJ D?ELE H?KIK IJG " EED FD] K?I]] EL?JLD H?HEE GHK " KLI ED?LDG JJ?DKE JE?]KI D?FGK EJ?I]H EKF?HHF ZD?EJH\ ZEHL?GJH\ EHG?EEF ZD?GGI\ ZEJG?FFJ\ D?FGK EJ?I]H The above statement of financial position should be read in conjunction with the accompanying notes ' TZ Limited Statement of changes in equity For the year ended 30 June 2012 Consolidated Y$&$(9/ $, E ^7&> JLEL 2*55 $),/; %(9*#/ ,$B /B6/(5/ )*; ,=/ >/$; T,=/; 9*#6;/=/(5%@/ %(9*#/ )*; ,=/ >/$;? (/, *) ,$B 0*,$& 9*#6;/=/(5%@/ %(9*#/ )*; ,=/ >/$; Transactions with owners in their capacity as owners: M=$;/"8$5/3 6$>#/(,5 P*(,;%87,%*(5 *) /X7%,> P*(@/;5%*( *) 9*(@/;,%8&/ (*,/5 P*(@/;5%*( *) &%$8%&%,%/5 ,* /X7%,> 2/55' ,;$(5$9,%*( 9*5,5 *( 5=$;/5 %557/3 0;$(5)/; ,* 9*(,;%87,/3 /X7%,> 76*( %557/ *) 5=$;/5 Contributed equity $'000 Other contributed equity $'000 $'000 Reserves $'000 Accumulated losses $'000 Total equity $'000 EJK?GLI H?ID] ZJ?GKH\ ZEJJ?]KE\ H?]IL " " " " " EJ?]LD K?LG] E?EFG ZDLK\ " " " " " " " " H?ID] ZH?ID]\ " Z]?I]H\ Z]?I]H\ ZH?LHF\ " ZH?LHF\ ZH?LHF\ Z]?I]H\ ZEJ?]JI\ " " " " " " J?FLF " J?FLF EJ?]LD " " " " K?LG] E?EFG ZDLK\ " Y$&$(9/ $, FL ^7(/ JLEE " EHG?EEF " ZD?GGI\ ZEJG?FFJ\ EJ?I]H Contributed equity $'000 Contributed equity $'000 Other contributed equity $'000 Reserves $'000 Accumulated losses $'000 Total equity $'000 Consolidated Y$&$(9/ $, E ^7&> JLEE 2*55 $),/; %(9*#/ ,$B /B6/(5/ )*; ,=/ >/$; T,=/; 9*#6;/=/(5%@/ %(9*#/ )*; ,=/ >/$;? (/, *) ,$B 0*,$& 9*#6;/=/(5%@/ %(9*#/ )*; ,=/ >/$; Transactions with owners in their capacity as owners: M=$;/"8$5/3 6$>#/(,5 P*(,;%87,%*(5 *) /X7%,> 2/55' ,;$(5$9,%*( 9*5,5 *( 5=$;/5 %557/3 " " EHG?EEF " " " H?KKJ ZJJJ\ Y$&$(9/ $, FL ^7(/ JLEJ " EKF?HHF " " " " " " " " ZD?GGI\ ZEJG?FFJ\ EJ?I]H " ZEJ?FDE\ ZEJ?FDE\ ]IF " ]IF ]IF ZEJ?FDE\ ZEE?H]]\ " " " IDG " " IDG H?KKJ ZJJJ\ ZD?EJH\ ZEHL?GJH\ D?FGK The above statement of changes in equity should be read in conjunction with the accompanying notes ( TZ Limited Statement of cash flows For the year ended 30 June 2012 Cash flows from operating activities e/9/%6,5 );*# 975,*#/;5 Z%(9&75%@/ *) `M0\ Q$>#/(,5 ,* 5766&%/;5 $(3 /#6&*>//5 Z%(9&75%@/ *) `M0\ S(,/;/5, ;/9/%@/3 T,=/; ;/@/(7/ S(,/;/5, $(3 *,=/; )%($(9/ 9*5,5 6$%3 S(9*#/ ,$B/5 6$%3 Note Consolidated 2012 $'000 2011 $'000 JE?JG] ZFL?]HF\ JE?EFL ZJG?FJG\ ZG?KHK\ EJK F]] ZIJI\ ZEG\ Z]?EGG\ JDH KEH ZDE\ ZIE\ N/, 9$5= 75/3 %( *6/;$,%(< $9,%@%,%/5 HF ZG?II]\ ZI?KKF\ Cash flows from investing activities Q$>#/(,5 )*; (/: k*%(, @/(,7;/ 9$6%,$& %(@/5,/3 Q$>#/(,5 )*; 6;*6/;,>? 6&$(, $(3 /X7%6#/(, Q$>#/(,5 )*; %(,$(<%8&/5 S(@/5,#/(, %( 5=*;, ,/;# 3/6*5%,5 Q;*9//35 );*# 5=*;, ,/;# 3/6*5%,5 Q;*9//35 );*# 5$&/ *) 6;*6/;,>? 6&$(, $(3 /X7%6#/(, N/, 9$5= );*#oZ75/3 %(\ %(@/5,%(< $9,%@%,%/5 Cash flows from financing activities Q;*9//35 );*# %557/ *) 5=$;/5 0;$(5$9,%*( 9*5,5 *( 5=$;/5 %557/3 Q;*9//35 );*# 8*;;*:%(<5 e/6$>#/(, *) 8*;;*:%(<5 N/, 9$5= );*# )%($(9%(< $9,%@%,%/5 N/, %(9;/$5/oZ3/9;/$5/\ %( 9$5= $(3 9$5= /X7%@$&/(,5 P$5= $(3 9$5= /X7%@$&/(,5 $, ,=/ 8/<%((%(< *) ,=/ )%($(9%$& >/$; !))/9,5 *) /B9=$(/$; ] GLH E?EHD The above statement of cash flows should be read in conjunction with the accompanying notes !) TZ Limited Notes to the financial statements 30 June 2012 Note 1. Significant accounting policies 0=/ 6;%(9%6$& $99*7(,%(< 6*&%9%/5 $3*6,/3 %( ,=/ 6;/6$;$,%*( *) ,=/ )%($(9%$& 5,$,/#/(,5 $;/ 5/, *7, 8/&*:. 0=/5/ 6*&%9%/5 =$@/ 8//( 9*(5%5,/(,&> $66&%/3 ,* $&& ,=/ >/$;5 6;/5/(,/3? 7(&/55 *,=/;:%5/ 5,$,/3. New, revised or amending Accounting Standards and Interpretations adopted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mendments to Australian Accounting Standards 0=/ 9*(5*&%3$,/3 /(,%,> =$5 $66&%/3 WWMY JLLG"EJ );*# E ^7&> JLEE. 0=/5/ $#/(3#/(,5 #$U/ (7#/;*75 /3%,*;%$& $#/(3#/(,5 ,* $ ;$( ,* /B/;9%5/ k73 =$5 $66&%/3 WWMY JLEL"H $#/(3#/(,5 );*# E ^7&> JLEE. 0=/ $#/(3#/(,5 #$3/ (7#/;*75 (*("7; $#/(3#/(,5 ,* $ ;$( 9$( 6;/5/(, $( $($&>5%5 *) *,=/; 9*#6;/=/(5%@/ %(9*#/ )*; /$9= 9*#6*(/(, *) /X7%,>? /%,=/; %( ,=/ 5,$,/#/(, *) 9=$( *; %( ,=/ (*,/5 %( $99*;3$(9/ :%,= WWMY ELE 4Q;/5/(,$,%*( *) A%($(9%$& S(5,;7#/(,54i $(3 6;*@%3/3 <7%3$(9/ *( ,=/ 3%59&*57;/ *) 5%<(%)%9$(, /@/(,5 $(3 ,;$(5$9,%*(5 %( WWMY EFH 4S(,/;%# A%($(9%$& e/6*;,%(<4. S(5,;7#/(,5' R%59&*57;/54? AASB 2010-5 Amendments to Australian Accounting Standards 0=/ 9*(5*&%3$,/3 /(,%,> =$5 $66&%/3 WWMY JLEL"K $#/(3#/(,5 );*# E ^7&> JLEE. 0=/ $#/(3#/(,5 #$3/ (7#/;*75 /3%,*;%$& $#/(3#/(,5 ,* $ ;$( ,=/ S(,/;($,%*($& W99*7(,%(< M,$(3$;35 Y*$;3. AASB 124 Related Party Disclosures (December 2009) 0=/ 9*(5*&%3$,/3 /(,%,> =$5 $66&%/3 WWMY EJH Z;/@%5/3\ );*# E ^7&> JLEE. 0=/ ;/@%5/3 5,$(3$;3 5%#6&%)%/3 ,=/ 3/)%(%,%*( *) $ ;/&$,/3 6$;,> 8> 9&$;%)>%(< %,5 %(,/(3/3 #/$(%(< $(3 /&%#%($,%(< %(9*(5%5,/(9%/5 );*# ,=/ 3/)%(%,%*(. W 5785%3%$;> $(3 $( $55*9%$,/ :%,= ,=/ 5$#/ %(@/5,*; $;/ ;/&$,/3 6$;,%/5 *) /$9= *,=/;i /(,%,%/5 5%<(%)%9$(,&> %()&7/(9/3 8> *(/ 6/;5*( $(3 /(,%,%/5 5%<(%)%9$(,&> %()&7/(9/3 8> $ 9&*5/ #/#8/; *) ,=/ )$#%&> *) ,=$, 6/;5*( $;/ (* &*( =$5 8*,= k*%(, 9*(,;*& *@/; $ 5/9*(3 /(,%,> $(3 k*%(, 9*(,;*& *; 5%<(%)%9$(, %()&7/(9/ *@/; $ ,=%;3 6$;,>? ,=/ 5/9*(3 $(3 ,=%;3 /(,%,%/5 $;/ ;/&$,/3 ,* /$9= *,=/;. AASB 2010-6 Amendments to Australian Accounting Standards - Disclosures on Transfers of Financial Assets 0=/ 9*(5*&%3$,/3 /(,%,> =$5 $66&%/3 WWMY JLEL"D $#/(3#/(,5 );*# E ^7&> JLEE. 0=/5/ $#/(3#/(,5 $33 $(3 $#/(3/3 3%59&*57;/ ;/X7%;/#/(,5 %( WWMY I $8*7, ,;$(5)/; *) )%($(9%$& $55/,5? %(9&73%(< ,=/ ($,7;/ *) ,=/ )%($(9%$& $55/,5 %(@*&@/3 $(3 ,=/ ;%5U5 $55*9%$,/3 :%,= ,=/#. W33%,%*($& 3%59&*57;/5 $;/ (*: ;/X7%;/3 :=/( Z%\ $( $55/, %5 ,=/ 9*(5*&%3$,/3 /(,%,> =$5 $ ,;$(5)/;;/3 87, 9*(,%(7%(< /B6*57;/ ,* ,=/ $55/, $),/; ,=/ 5$&/. %5 (*, 3/;/9*<(%5/3i $(3 Z%%\ :=/( $55/,5 $;/ 3/;/9*<(%5/3 87, ! TZ Limited Notes to the financial statements 30 June 2012 Note 1. Significant accounting policies (continued) AASB 1054 Australian Additional Disclosures 0=/ 9*(5*&%3$,/3 /(,%,> =$5 $66&%/3 WWMY ELKH );*# E ^7&> JLEE. 0=/ 5,$(3$;3 5/,5 *7, ,=/ W75,;$&%$("56/9%)%9 3%59&*57;/5 $5 $ ;/57&, *) Q=$5/ S *) ,=/ 0;$(5"0$5#$( P*(@/; =$5 $66&%/3 WWMY JLEE"E $#/(3#/(,5 );*# E ^7&> JLEE. 0=/5/ $#/(3#/(,5 #$3/ 9=$( *) 3;$),%(< :%,= SAeM5 87, :%,=*7, $(> %(,/(,%*( ,* 9=$(d5 $))$%;5 %(9&73%(d5 )%($(9%$& 6*5%,%*( )*; ,=/ )%($(9%$& >/$; /(3/3 FL ^7(/ JLEJi q M%<(%)%9$(, /@/(,5 $(3 ,;$(5$9,%*(5 ,=/ 9*(5*&%3$,/3 /(,%,> =$5 /(,/;/3 %(,* 5%(9/ FL ^7(/ JLEJi q 0=/ 9$5= )&*: )*;/9$5, )*; ,=/ 9*(5*&%3$,/3 /(,%,> )*; ,=/ 6/;%*3 76 ,* FL M/6,/#8/; JLEFi q M$&/5 $(3 6;*)%,$8%&%,> )*;/9$5,5 )*; ,=/ 9*(5*&%3$,/3 /(,%,> )*; (*, *(&> ,=/ (/B, )%($(9%$& >/$;? 87, 8/>*(3 FL ^7(/ JLEFi $(3 q 0=/ 9*(,%(7/3 5766*;, *) ,=/ 9*(5*&%3$,/3 /(,%,>d5 5=$;/=*&3/;5 $(3 &/(3/;5. b$($ *( E] A/8;7$;> JLEF *) P*(@/;,%8&/ (*,/5 :%,= $ )$9/ @$&7/ *) hEJ?LLL?LLL. 0=/ 9*(5*&%3$,/3 /(,%,> =$5 (/<*,%$,/3 $ ,:/&@/ #*(,= /B,/(5%*( *) ,=%5 #$,7;%,> 3$,/ :%,= ,=/ &/(3/; ja0 A7(35? :=%9= %5 578k/9, ,* 5=$;/=*&3/; $66;*@$& $, ,=/ JLEJ W((7$& `/(/;$& b//,%(<. V(&/55 ,=*5/ (*,/5 $;/ 9*(@/;,/3 ,* 5=$;/5 8> ,=/ =*&3/; 6;%*; ,* #$,7;%,>? ,=/ 6;%(9%6$& $(3 %(,/;/5, *7,5,$(3%(< *( #$,7;%,>? :%&& 8/ 6$>$8&/ %( 9$5= 8> ,=/ 9*(5*&%3$,/3 /(,%,>. b$($ ,* 9*(,%(7/ $5 $ <*%(< 9*(9/;( %5 ,=/ 9*#6$(>d5 $8%&%,> ,* $((*7(9/3 $ ,/(3/; 9*(,;$9, :%,= M%(<$6*;/ Q*5,. 0=/ 9*(5*&%3$,/3 /(,%,> $&5* $((*7(9/3 $ 6;*";$,$ ;/(*7(9/$8&/ /(,%,&/#/(, *))/; ,* ;$%5/ $66;*B%#$,/&> hH?DLL?LLL 8/)*;/ 9$6%,$& ;$%5%(< /B6/(5/5. 0=/ 6;*9//35 ;$%5/3 :%&& $55%5, %( )7(3%(< 9$6%,$& ;/X7%;/#/(,5 ,* #//, ,=/ 9*(,;$9, :%,= M%(<$6*;/ Q*5,. W, FL ^7(/ JLEJ ,=/ 9*(5*&%3$,/3 /(,%,>d5 97;;/(, &%$8%&%,%/5 /B9//3/3 97;;/(, $55/,5 8> hG?IDL?LLL. A*; ,=/ >/$; /(3/3 FL ^7(/ JLEJ ,=/ 9*(5*&%3$,/3 /(,%,> %(97;;/3 &*55/5 $),/; %(9*#/ ,$B *) hEJ?FDE?LLL $(3 (/, 9$5= *7,)&*:5 );*# *6/;$,%(< $9,%@%,%/5 *) hG?II]?LLL. S( #$U%(< %,5 $55/55#/(,? #$($ *) ,=/ 9*(5*&%3$,/3 /(,%,> ,* 9*(,%(7/ $5 $ <*%(< 9*(9/;( %5 3/6/(3/(, *( ,=/ ,=/ W75,;$&%$( W99*7(,%(< M,$(3$;35 Y*$;3 Z4WWMY4\ $(3 ,=/ P*;6*;$,%*(5 W9, JLLE? $5 $66;*6;%$,/ )*;"6;*)%, *;%/(,/3 /(,%,%/5. 0=/5/ )%($(9%$& 5,$,/#/(,5 $&5* 9*#6&> :%,= S(,/;($,%*($& A%($(9%$& e/6*;,%(< M,$(3$;35 $5 %557/3 8> ,=/ S(,/;($,%*($& W99*7(,%(< M,$(3$;35 Y*$;3 Z4SWMY4\. Historical cost convention 0=/ )%($(9%$& 5,$,/#/(,5 =$@/ 8//( 6;/6$;/3 7(3/; ,=/ =%5,*;%9$& 9*5, 9*(@/(,%*(? /B9/6, )*; 3/;%@$,%@/ )%($(9%$& %(5,;7#/(,5 $, )$%; @$&7/. !! TZ Limited Notes to the financial statements 30 June 2012 Note 1. Significant accounting policies (continued) Critical accounting estimates 0=/ 6;/6$;$,%*( *) ,=/ )%($(9%$& 5,$,/#/(,5 ;/X7%;/5 ,=/ 75/ *) 9/;,$%( 9;%,%9$& $99*7(,%(< /5,%#$,/5. S, $&5* ;/X7%;/5 #$($%(< ,=/ 9*(5*&%3$,/3 /(,%,>45 $99*7(,%(< 6*&%9%/5. 0=/ $;/$5 %(@*&@%(< $ =%<=/; 3/<;// *) k73? *; $;/$5 :=/;/ $557#6,%*(5 $(3 /5,%#$,/5 $;/ 5%<(%)%9$(, ,* ,=/ )%($(9%$& 5,$,/#/(,5? $;/ 3%59&*5/3 %( (*,/ J. Parent entity information S( $99*;3$(9/ :%,= ,=/ P*;6*;$,%*(5 W9, JLLE? ,=/5/ )%($(9%$& 5,$,/#/(,5 6;/5/(, ,=/ ;/57&,5 *) ,=/ 9*(5*&%3$,/3 /(,%,> *(&>. M766&/#/(,$;> %()*;#$,%*( $8*7, ,=/ 6$;/(, /(,%,> %5 3%59&*5/3 %( (*,/ FG. Principles of consolidation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k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e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perating segments T6/;$,%(< 5/<#/(,5 $;/ 6;/5/(,/3 75%(< ,=/ 4#$($. Foreign currency transactions A*;/%<( 97;;/(9> ,;$(5$9,%*(5 $;/ ,;$(5&$,/3 %(,* W75,;$&%$( 3*&&$;5 75%(< ,=/ /B9=$(/$;"/(3 /B9=$( $55/,5 $(3 &%$8%&%,%/5 3/(*#%($,/3 %( )*;/%<( 97;;/(9%/5 $;/ ;/9*<(%5/3 %( 6;*)%, *; &*55. Foreign operations 0=/ $55/,5 $(3 &%$8%&%,%/5 *) )*;/%<( *6/;$,%*(5 $;/ ,;$(5&$,/3 %(,* W75,;$&%$( 3*&&$;5 75%(< ,=/ /B9=$( ;/5/;@/ %( /X7%,>. 0=/ )*;/%<( 97;;/(9> ;/5/;@/ %5 ;/9*<(%5/3 %( 6;*)%, *; &*55 :=/( ,=/ )*;/%<( *6/;$,%*( *; (/, %(@/5,#/(, %5 3%56*5/3 *). Revenue recognition e/@/(7/ %5 ;/9*<(%5/3 :=/( %, %5 6;*8$8&/ ,=$, ,=/ /9*(*#%9 8/(/)%, :%&& )&*: ,* ,=/ 9*(5*&%3$,/3 /(,%,> $(3 ,=/ ;/@/(7/ 9$( 8/ ;/&%$8&> #/$57;/3. e/@/(7/ %5 #/$57;/3 $, ,=/ )$%; @$&7/ *) ,=/ 9*(5%3/;$,%*( ;/9/%@/3 *; ;/9/%@$8&/. Sale of goods M$&/ *) <**35 ;/@/(7/ %5 ;/9*<(%5/3 $, ,=/ 6*%(, *) 5$&/? :=%9= %5 :=/;/ ,=/ 975,*#/; =$5 ,$U/( 3/&%@/;> *) ,=/ <**35? ,=/ ;%5U5 $(3 ;/:$;35 $;/ ,;$(5)/;;/3 ,* ,=/ 975,*#/; $(3 ,=/;/ %5 $ @$&%3 5$&/5 9*(,;$9,. W#*7(,5 3%59&*5/3 $5 ;/@/(7/ $;/ (/, *) 5$&/5 ;/,7;(5 $(3 ,;$3/ 3%59*7(,5. Rendering of services e/@/(7/ );*# /(<%(//;%(< 3/5%<( 5/;@%9/5 %5 ;/9*<(%5/3 %( $99*;3$(9/ :%,= ,=/ 6/;9/(,$ ;/)/;/(9/ ,* &$8*7; =*7;5 %(97;;/3 ,* 3$,/ $5 $ 6/;9/(,$ /5,%#$,/3? ;/@/(7/ %5 *(&> ;/9*<(%5/3 ,* ,=/ /B,/(, *) ,=/ ;/9*@/;$8&/ 9*5,5 %(97;;/3 ,* 3$,/. Interest S(,/;/5, ;/@/(7/ %5 ;/9*<(%5/3 $5 %(,/;/5, $99;7/5 75%(< ,=/ /))/9,%@/ %(,/;/5, #/,=*3. 0=%5 %5 $ #/,=*3 *) 9$&97&$,%(< ,=/ $#*;,%5/3 9*5, *) $ )%($(9%$& $55/, $(3 $&&*9$,%(< ,=/ %(,/;/5, %(9*#/ *@/; ,=/ ;/&/@$(, 6/;%*3 75%(< ,=/ /))/9,%@/ %(,/;/5, ;$,/? :=%9= %5 ,=/ ;$,/ ,=$, /B$9,&> 3%59*7(,5 /5,%#$,/3 )7,7;/ 9$5= ;/9/%6,5 ,=;*7<= ,=/ /B6/9,/3 &%)/ *) ,=/ )%($(9%$& $55/, ,* ,=/ (/, 9$;;>%(< $#*7(, *) ,=/ )%($(9%$& $55/,. Other revenue T,=/; ;/@/(7/ %5 ;/9*<(%5/3 :=/( %, %5 ;/9/%@/3 *; :=/( ,=/ ;%<=, ,* ;/9/%@/ 6$>#/(, %5 /5,$8&%5=/3. !# TZ Limited Notes to the financial statements 30 June 2012 Note 1. Significant accounting policies (continued) Income tax 0=/ %(9*#/ ,$B /B6/(5/ *; 8/(/)%, )*; ,=/ 6/;%*3 %5 ,=/ ,$B 6$>$8&/ *( ,=$, 6/;%*345 ,$B$8&/ %(9*#/ 8$5/3 *( ,=/ $66&%9$8&/ %(9*#/ ,$B ;$,/ )*; /$9= k7;%53%9,%*( $3k75,/3 8> 9=$( 3%))/;/(9/5 $(3 7(75/3 ,$B &*55/5 $(3 ,=/ $3k75,#/(, ;/9*<(%5/3 )*; 6;%*; 6/;%*35? :=/;/ $66&%9$8&/. R/)/;;/3 ,$B $55/,5 $(3 &%$8%&%,%/5 $;/ ;/9*<(%5/3 )*; ,/#6*;$;> 3%))/;/(9/5 $, ,=/ ,$B ;$,/5 /B6/9,/3 ,* $66&> :=/( ,=/ $55/,5 $;/ ;/9*@/;/3 *; &%$8%&%,%/5 $;/ 5/,,&/3? 8$5/3 *( ,=*5/ ,$B ;$,/5 ,=$, $;/ /($9,/3 *; 5785,$(,%@/&> /($9,/3? /B9/6, )*;' (cid:1) O=/( ,=/ 3/)/;;/3 %(9*#/ ,$B $55/, *; &%$8%&%,> $;%5/5 );*# ,=/ %(%,%$& ;/9*<(%,%*( *) <**3:%&& *; $( $55/, *; &%$8%&%,> %( $ ,;$(5$9,%*( ,=$, %5 (*, $ 875%(/55 9*#8%($,%*( $(3 ,=$,? $, ,=/ ,%#/ *) ,=/ ,;$(5$9,%*(? $))/9,5 (/%,=/; ,=/ $99*7(,%(< (*; ,$B$8&/ 6;*)%,5i *; O=/( ,=/ ,$B$8&/ ,/#6*;$;> 3%))/;/(9/ %5 $55*9%$,/3 :%,= %(@/5,#/(,5 %( 5785%3%$;%/5? $55*9%$,/5 *; %(,/;/5,5 %( k*%(, @/(,7;/5? $(3 ,=/ ,%#%(< *) ,=/ ;/@/;5$& 9$( 8/ 9*(,;*&&/3 $(3 %, %5 6;*8$8&/ ,=$, ,=/ ,/#6*;$;> 3%))/;/(9/ :%&& (*, ;/@/;5/ %( ,=/ )*;/5//$8&/ )7,7;/. (cid:1) R/)/;;/3 ,$B $55/,5 $;/ ;/9*<(%5/3 )*; 3/379,%8&/ ,/#6*;$;> 3%))/;/(9/5 $(3 7(75/3 ,$B &*55/5 *(&> %) %, %5 6;*8$8&/ ,=$, )7,7;/ ,$B$8&/ $#*7(,5 :%&& 8/ $@$%&$8&/ ,* 7,%&%5/ ,=*5/ ,/#6*;$;> 3%))/;/(9/5 $(3 &*55/5. 0=/ 9$;;>%(< $#*7(, *) ;/9*<(%5/3 $(3 7(;/9*<(%5/3 3/)/;;/3 ,$B $55/,5 $;/ ;/@%/:/3 /$9= ;/6*;,%(< 3$,/. R/)/;;/3 ,$B $55/,5 ;/9*<(%5/3 $;/ ;/379/3 ,* ,=/ /B,/(, ,=$, %, %5 (* &*(%(< $#*7(, ,* 8/ ;/9*@/;/3. Q;/@%*75&> 7(;/9*<(%5/3 3/)/;;/3 ,$B $55/,5 $;/ ;/9*<(%5/3 ,* ,=/ /B,/(, ,=$, %, %5 6;*8$8&/ ,=$, ,=/;/ $;/ )7,7;/ ,$B$8&/ 6;*)%,5 $@$%&$8&/ ,* ;/9*@/; ,=/ $55/,. R/)/;;/3 ,$B $55/,5 $(3 &%$8%&%,%/5 $;/ *))5/, *(&> :=/;/ ,=/;/ %5 $ &/<$&&> /()*;9/$8&/ ;%<=, ,* *))5/, 97;;/(, ,$B $55/,5 $<$%(5, 97;;/(, ,$B &%$8%&%,%/5 $(3 3/)/;;/3 ,$B $55/,5 $<$%(5, 3/)/;;/3 ,$B &%$8%&%,%/5i $(3 ,=/> ;/&$,/ ,* ,=/ 5$#/ ,$B$8&/ $7,=*;%,> *( /%,=/; ,=/ 5$#/ ,$B$8&/ /(,%,> *; 3%))/;/(, ,$B$8&/ /(,%,>45 :=%9= %(,/(3 ,* 5/,,&/ 5%#7&,$(/*75&>. Cash and cash equivalents P$5= $(3 9$5= /X7%@$&/(,5 %(9&73/5 9$5= *( =$(3? 3/6*5%,5 =/&3 $, 9$&& :%,= )%($(9%$& %(5,%,7,%*(5? *,=/; 5=*;,",/;#? =%<=&> &%X7%3 %(@/5,#/(,5 :%,= *;%<%($& #$,7;%,%/5 *) ,=;// #*(,=5 *; &/55 ,=$, $;/ ;/$3%&> 9*(@/;,%8&/ ,* U(*:( $#*7(,5 *) 9$5= $(3 :=%9= $;/ 578k/9, ,* $( %(5%<(%)%9$(, ;%5U *) 9=$( ;/9*<(%5/3 $, )$%; @$&7/ $(3 5785/X7/(,&> #/$57;/3 $, $#*;,%5/3 9*5, 75%(< ,=/ /))/9,%@/ %(,/;/5, #/,=*3? &/55 $(> 6;*@%5%*( )*; %#6$%;#/(,. 0;$3/ ;/9/%@$8&/5 $;/ 37/ )*; 5/,,&/#/(, :%,=%( FL 3$>5. P*&&/9,$8%&%,> *) ,;$3/ ;/9/%@$8&/5 %5 ;/@%/:/3 *( $( *(<*%(< 8$5%5. R/8,5 :=%9= $;/ U(*:( ,* 8/ 7(9*&&/9,$8&/ $;/ :;%,,/( *)) 8> ;/379%(< ,=/ 9$;;>%(< $#*7(, 3%;/9,&>. W 6;*@%5%*( )*; %#6$%;#/(, *) ,;$3/ ;/9/%@$8&/5 %5 ;$%5/3 :=/( ,=/;/ %5 *8k/9,%@/ /@%3/(9/ ,=$, ,=/ 9*(5*&%3$,/3 /(,%,> :%&& (*, 8/ $8&/ ,* 9*&&/9, $&& $#*7(,5 37/ $99*;3%(< ,* ,=/ *;%<%($& ,/;#5 *) ,=/ ;/9/%@$8&/5. M%<(%)%9$(, )%($(9%$& 3%))%97&,%/5 *) ,=/ 3/8,*;? 6;*8$8%&%,> ,=$, ,=/ 3/8,*; :%&& /(,/; 8$(U;76,9> *; )%($(9%$& ;/*;<$(%5$,%*( $(3 3/)$7&, *; 3/&%(X7/(9> %( 6$>#/(,5 Z#*;/ ,=$( DL 3$>5 *@/;37/\ $;/ 9*(5%3/;/3 %(3%9$,*;5 ,=$, ,=/ ,;$3/ ;/9/%@$8&/ #$> 8/ %#6$%;/3. 0=/ $#*7(, *) ,=/ %#6$%;#/(, $&&*:$(9/ %5 ,=/ 3%))/;/(9/ 8/,://( ,=/ $55/,d5 9$;;>%(< $#*7(, $(3 ,=/ 6;/5/(, @$&7/ *) /5,%#$,/3 )7,7;/ 9$5= )&*:5? 3%59*7(,/3 $, ,=/ *;%<%($& /))/9,%@/ %(,/;/5, ;$,/. P$5= )&*:5 ;/&$,%(< ,* 5=*;,",/;# ;/9/%@$8&/5 $;/ (*, 3%59*7(,/3 %) ,=/ /))/9, *) 3%59*7(,%(< %5 %##$,/;%$&. T,=/; ;/9/%@$8&/5 $;/ ;/9*<(%5/3 $, $#*;,%5/3 9*5,? &/55 $(> 6;*@%5%*( )*; %#6$%;#/(,. !$ TZ Limited Notes to the financial statements 30 June 2012 Note 1. Significant accounting policies (continued) Inventories S(@/(,*;%/5 $;/ 5,$,/3 $, ,=/ &*:/; *) 9*5, $(3 (/, ;/$&%5$8&/ @$&7/. P*5, 9*#6;%5/5 $&& 3%;/9, #$,/;%$&5? 3%;/9, &$8*7; $(3 $( $66;*6;%$,/ 6*;,%*( *) @$;%$8&/ $(3 )%B/3 *@/;=/$35. A%B/3 *@/;=/$35 $;/ $&&*9$,/3 *( ,=/ 8$5%5 *) (*;#$& *6/;$,%(< 9$6$9%,>. P*5,5 $;/ $55%<(/3 ,* %(@/(,*;%/5 75%(< ,=/ :/%<=,/3 $@/;$ 9*7;5/ *) 875%(/55? &/55 ,=/ /5,%#$,/3 5/&&%(< 9*5, *) 9*#6&/,%*( $(3 5/&&%(< /B6/(5/5. Work in progress O*;U %( 6;*<;/55 %5 ;/9*<(%5/3 %( $99*;3$(9/ :%,= ;/@/(7/ ;/9*<(%,%*( 6*&%9%/5 $(3 %5 8$5/3 *( ,=/ 6/;9/(,$ ;/9*<(%5/3 $, )$%; @$&7/ *( ,=/ 3$,/ $ 3/;%@$,%@/ 9*(,;$9, %5 /(,/;/3 %(,* $(3 $;/ 5785/X7/(,&> ;/#/$57;/3 ,* ,=/%; )$%; @$&7/ $, /$9= ;/6*;,%(< 3$,/. 0=/ $99*7(,%(< )*; 5785/X7/(, 9=$( ,:* *; #*;/ 6$;,%/5 7(3/;,$U/ $( /9*(*#%9 $9,%@%,> ,=$, %5 578k/9, ,* k*%(, 9*(,;*&. S(@/5,#/(,5 %( k*%(, @/(,7;/5 $;/ $99*7(,/3 )*; 75%(< ,=/ /X7%,> #/,=*3. V(3/; ,=/ /X7%,> #/,=*3? ,=/ 5=$;/ *) ,=/ 6;*)%,5 *; &*55/5 *) ,=/ k*%(, @/(,7;/ %5 ;/9*<(%5/3 %( 6;*)%, *; &*55 $(3 ,=/ 5=$;/ *) ,=/ #*@/#/(,5 %( /X7%,> %5 ;/9*<(%5/3 %( *,=/; 9*#6;/=/(5%@/ %(9*#/. S(9*#/ /$;(/3 );*# k*%(, @/(,7;/ /(,%,%/5 %5 ;/9*<(%5/3 $5 $ ;/379,%*( %( ,=/ 9$;;>%(< $#*7(, *) ,=/ %(@/5,#/(,. Investments and other financial assets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oans and receivables 2*$(5 $(3 ;/9/%@$8&/5 $;/ (*("3/;%@$,%@/ )%($(9%$& $55/,5 :%,= )%B/3 *; 3/,/;#%($8&/ 6$>#/(,5 ,=$, $;/ (*, X7*,/3 %( $( $9,%@/ #$;U/,. 0=/> $;/ 9$;;%/3 $, $#*;,%5/3 9*5, 75%(< ,=/ /))/9,%@/ %(,/;/5, ;$,/ #/,=*3. `$%(5 $(3 &*55/5 $;/ ;/9*<(%5/3 %( 6;*)%, *; &*55 :=/( ,=/ $55/, %5 3/;/9*<(%5/3 *; %#6$%;/3. Impairment of financial assets 0=/ 9*(5*&%3$,/3 /(,%,> $55/55/5 $, ,=/ /(3 *) /$9= ;/6*;,%(< 6/;%*3 :=/,=/; ,=/;/ %5 $(> *8k/9,%@/ /@%3/(9/ ,=$, $ )%($(9%$& $55/, *; <;*76 *) )%($(9%$& $55/,5 %5 %#6$%;/3. T8k/9,%@/ /@%3/(9/ %(9&73/5 5%<(%)%9$(, )%($(9%$& 3%))%97&,> *) ,=/ %557/; *; *8&%<*;i $ 8;/$9= *) 9*(,;$9, 579= $5 3/)$7&, *; 3/&%(X7/(9> %( 6$>#/(,5i ,=/ &/(3/; <;$(,%(< ,* $ 8*;;*:/; 9*(9/55%*(5 37/ ,* /9*(*#%9 *; &/<$& ;/$5*(5 ,=$, ,=/ &/(3/; :*7&3 (*, *,=/;:%5/ 3*i %, 8/9*#/5 6;*8$8&/ ,=$, ,=/ 8*;;*:/; :%&& /(,/; 8$(U;76,9> *; *,=/; )%($(9%$& ;/*;<$(%5$,%*(i ,=/ 3%5$66/$;$(9/ *) $( $9,%@/ #$;U/, )*; ,=/ )%($(9%$& $55/,i *; *85/;@$8&/ 3$,$ %(3%9$,%(< ,=$, ,=/;/ %5 $ #/$57;$8&/ 3/9;/$5/ %( /5,%#$,/3 )7,7;/ 9$5= )&*:5. 0=/ $#*7(, *) ,=/ %#6$%;#/(, $&&*:$(9/ )*; &*$(5 $(3 ;/9/%@$8&/5 9$;;%/3 $, $#*;,%5/3 9*5, %5 ,=/ 3%))/;/(9/ 8/,://( ,=/ $55/,d5 9$;;>%(< $#*7(, $(3 ,=/ 6;/5/(, @$&7/ *) /5,%#$,/3 )7,7;/ 9$5= )&*:5? 3%59*7(,/3 $, ,=/ *;%<%($& /))/9,%@/ %(,/;/5, ;$,/. S) ,=/;/ %5 $ ;/@/;5$& *) %#6$%;#/(,? ,=/ ;/@/;5$& 9$((*, /B9//3 ,=/ $#*;,%5/3 9*5, ,=$, :*7&3 =$@/ 8//( =$3 ,=/ %#6$%;#/(, (*, 8//( ;/9*<(%5/3 $(3 %5 ;/@/;5/3 ,* 6;*)%, *; &*55. !% TZ Limited Notes to the financial statements 30 June 2012 Note 1. Significant accounting policies (continued) Property, plant and equipment Q&$(, $(3 /X7%6#/(, %5 5,$,/3 $, =%5,*;%9$& 9*5, &/55 $997#7&$,/3 3/6;/9%$,%*( $(3 %#6$%;#/(,. g%5,*;%9$& 9*5, %(9&73/5 /B6/(3%,7;/ ,=$, %5 3%;/9,&> $,,;%87,$8&/ ,* ,=/ $9X7%5%,%*( *) ,=/ %,/#5. 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P=$( 8> 9=$(<%(< ,=/ $#*;,%5$,%*( #/,=*3 *; 6/;%*3. Goodwill O=/;/ $( /(,%,> *; *6/;$,%*( %5 $9X7%;/3 %( $ 875%(/55 9*#8%($,%*(? ,=/ %3/(,%)%$8&/ (/, $55/,5 $9X7%;/3 $;/ #/$57;/3 $, )$%; @$&7/. 0=/ /B9/55 *) ,=/ )$%; @$&7/ *) ,=/ 9*5, *) ,=/ $9X7%5%,%*( *@/; ,=/ )$%; @$&7/ *) %3/(,%)%$8&/ (/, $55/,5 $9X7%;/3 %5 8;*7<=, ,* $99*7(, $5 <**3:%&&. `**3:%&& %5 ,/5,/3 $((7$&&> )*; %#6$%;#/(,? *; #*;/ );/X7/(,&> %) /@/(,5 *; 9=$( ;/@/;5/3. %5 (*, $#*;,%5/3. S(5,/$3? <**3:%&& !& TZ Limited Notes to the financial statements 30 June 2012 Note 1. Significant accounting policies (continued) Trade names 0;$3/ ($#/5 =$@/ $( %(3/)%(%,/ 75/)7& &%)/ $(3 $;/ 9$;;%/3 $, 9*5, &/55 $997#7&$,/3 %#6$%;#/(, &*55/5. 0;$3/ ($#/5 $;/ ;/@%/:/3 )*; %#6$%;#/(, $((7$&&>? *; #*;/ );/X7/(,&> %) /@/(,5 *; 9=$(%(< @$&7/ #$> 8/ %#6$%;/3. 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W( %#6$%;#/(, &*55 %5 ;/9*<(%5/3 )*; ,=/ $#*7(, 8> :=%9= ,=/ $55/,45 9$;;>%(< $#*7(, /B9//35 %,5 ;/9*@/;$8&/ $#*7(,. e/9*@/;$8&/ $#*7(, %5 ,=/ =%<=/; *) $( $55/,d5 )$%; @$&7/ &/55 9*5,5 ,* 5/&& $(3 @$&7/"%("75/. 0=/ @$&7/"%("75/ %5 ,=/ 6;/5/(, @$&7/ *) ,=/ /5,%#$,/3 )7,7;/ 9$5= )&*:5 ;/&$,%(< ,* ,=/ $55/, 75%(< $ 6;/",$B 3%59*7(, ;$,/ 56/9%)%9 ,* ,=/ $55/, *; 9$5=" 6;%*; ,* ,=/ /(3 *) ,=/ )%($(9%$& >/$; $(3 :=%9= $;/ 7(6$%3. R7/ ,* ,=/%; 5=*;,",/;# ($,7;/ ,=/> $;/ #/$57;/3 $, $#*;,%5/3 9*5, $(3 $;/ (*, 3%59*7(,/3. 0=/ $#*7(,5 $;/ 7(5/97;/3 $(3 $;/ 757$&&> 6$%3 :%,=%( FL ,* DL 3$>5 *) ;/9*<(%,%*(. !' TZ Limited Notes to the financial statements 30 June 2012 Note 1. Significant accounting policies (continued) Borrowings 2*$(5 $(3 8*;;*:%(<5 $;/ %(%,%$&&> ;/9*<(%5/3 $, ,=/ )$%; @$&7/ *) ,=/ 9*(5%3/;$,%*( ;/9/%@/3? (/, *) ,;$(5$9,%*( 9*5,5. 0=/> $;/ 5785/X7/(,&> #/$57;/3 $, $#*;,%5/3 9*5, 75%(< ,=/ /))/9,%@/ %(,/;/5, #/,=*3. 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W&& 9=$( $;/ ;/9*<(%5/3 %( 6;*)%, *; &*55. 0=/ 7&,%#$,/ 9*5, *) 9$5="5/,,&/3 ,;$(5$9,%*(5 %5 ,=/ 9$5= 6$%3 ,* 5/,,&/ ,=/ &%$8%&%,>. b$;U/, 9*(3%,%*(5 $;/ ,$U/( %(,* 9*(5%3/;$,%*( %( 3/,/;#%(%(< )$%; @$&7/. 0=/;/)*;/ $(> $:$;35 578k/9, ,* #$;U/, 9*(3%,%*(5 $;/ 9*(5%3/;/3 ,* @/5, %;;/56/9,%@/ *) :=/,=/; *; (*, ,=$, #$;U/, 9*(3%,%*( =$5 8//( #/,? 6;*@%3/3 $&& *,=/; 9*(3%,%*(5 $;/ 5$,%5)%/3. ") TZ Limited Notes to the financial statements 30 June 2012 Note 1. Significant accounting policies (continued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ontributed equity T;3%($;> 5=$;/5 $;/ 9&$55%)%/3 $5 /X7%,>. S(9;/#/(,$& 9*5,5 3%;/9,&> $,,;%87,$8&/ ,* ,=/ %557/ *) (/: 5=$;/5 *; *6,%*(5 $;/ 5=*:( %( /X7%,> $5 $ 3/379,%*(? (/, *) ,$B? );*# ,=/ 6;*9//35. Business combinations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k75,5 ,=/ 6;*@%5%*($& $#*7(,5 ;/9*<(%5/3 $(3 $&5* ;/9*<(%5/5 $33%,%*($& $55/,5 *; &%$8%&%,%/5 37;%(< ,=/ #/$57;/#/(, 6/;%*3? 8$5/3 *( (/: %()*;#$,%*( *8,$%(/3 $8*7, ,=/ )$9,5 $(3 9%;97#5,$(9/5 ,=$, /B%5,/3 $, ,=/ $9X7%5%,%*("3$,/. 0=/ #/$57;/#/(, 6/;%*3 /(35 *( /%,=/; ,=/ /$;&%/; *) Z%\ EJ #*(,=5 );*# ,=/ 3$,/ *) ,=/ $9X7%5%,%*( *; Z%%\ :=/( ,=/ $9X7%;/; ;/9/%@/5 $&& ,=/ %()*;#$,%*( 6*55%8&/ ,* 3/,/;#%(/ )$%; @$&7/. " TZ Limited Notes to the financial statements 30 June 2012 Note 1. Significant accounting policies (continued) Earnings per share Basic earnings per share Y$5%9 /$;(%(<5 6/; 5=$;/ %5 9$&97&$,/3 8> 3%@%3%(< ,=/ 6;*)%, $,,;%87,$8&/ ,* ,=/ *:(/;5 *) 01 2%#%,/3? /B9&73%(< $(> 9*5,5 *) 5/;@%9%(< /X7%,> *,=/; ,=$( *;3%($;> 5=$;/5? 8> ,=/ :/%<=,/3 $@/;$ 5=$;/5 *7,5,$(3%(< 37;%(< ,=/ )%($(9%$& >/$;? $3k75,/3 )*; 8*(75 /&/#/(,5 %( *;3%($;> 5=$;/5 %557/3 37;%(< ,=/ )%($(9%$& >/$;. Diluted earnings per share R%&7,/3 /$;(%(<5 6/; 5=$;/ $3k75,5 ,=/ )%<7;/5 75/3 %( ,=/ 3/,/;#%($,%*( *) 8$5%9 /$;(%(<5 6/; 5=$;/ ,* ,$U/ %(,* $99*7(, ,=/ $),/; %(9*#/ ,$B /))/9, *) %(,/;/5, $(3 *,=/; )%($(9%(< 9*5,5 $55*9%$,/3 :%,= 3%&7,%@/ 6*,/(,%$& *;3%($;> 5=$;/5 $(3 ,=/ :/%<=,/3 $@/;$ 5=$;/5. Goods and Services Tax ('GST') and other similar taxes e/@/(7/5? /B6/(5/5 $(3 $55/,5 $;/ ;/9*<(%5/3 (/, *) ,=/ $#*7(, *) $55*9%$,/3 `M0? 7(&/55 ,=/ `M0 %(97;;/3 %5 (*, ;/9*@/;$8&/ );*# ,=/ ,$B $7,=*;%,>. S( ,=%5 9$5/ %, %5 ;/9*<(%5/3 $5 6$;, *) ,=/ 9*5, *) ,=/ $9X7%5%,%*( *) ,=/ $55/, *; $5 6$;, *) ,=/ /B6/(5/. e/9/%@$8&/5 $(3 6$>$8&/5 $;/ 5,$,/3 %(9&75%@/ *) ,=/ $#*7(, *) `M0 ;/9/%@$8&/ *; 6$>$8&/. 0=/ (/, $#*7(, *) `M0 ;/9*@/;$8&/ );*#? *; 6$>$8&/ ,*? ,=/ ,$B $7,=*;%,> %5 %(9&73/3 %( *,=/; ;/9/%@$8&/5 *; *,=/; 6$>$8&/5 %( ,=/ 5,$,/#/(, *) )%($(9%$& 6*5%,%*(. P$5= )&*:5 $;/ 6;/5/(,/3 *( $ <;*55 8$5%5. 0=/ `M0 9*#6*(/(,5 *) 9$5= )&*:5 $;%5%(< );*# %(@/5,%(< *; )%($(9%(< $9,%@%,%/5 :=%9= $;/ ;/9*@/;$8&/ );*#? *; 6$>$8&/ ,* ,=/ ,$B $7,=*;%,>? $;/ 6;/5/(,/3 $5 *6/;$,%(< 9$5= )&*:5. P*##%,#/(,5 $(3 9*(,%($8&/ ,*? ,=/ ,$B $7,=*;%,>. Rounding of amounts 0=/ 9*#6$(> %5 *) $ U%(3 ;/)/;;/3 ,* %( P&$55 T;3/; G]oELL? %557/3 8> ,=/ W75,;$&%$( M/97;%,%/5 $(3 S(@/5,#/(,5 P*##%55%*(? ;/&$,%(< ,* 4;*7(3%(<"*))4. W#*7(,5 %( ,=%5 ;/6*;, =$@/ 8//( ;*7(3/3 *)) %( $99*;3$(9/ :%,= ,=$, P&$55 T;3/; ,* ,=/ (/$;/5, ,=*75$(3 3*&&$;5? *; %( 9/;,$%( 9$5/5? ,=/ (/$;/5, 3*&&$;. New Accounting Standards and Interpretations not yet mandatory or early adopted W75,;$&%$( W99*7(,%(< M,$(3$;35 $(3 S(,/;6;/,$,%*(5 ,=$, =$@/ ;/9/(,&> 8//( %557/3 *; $#/(3/3 87, $;/ (*, >/, #$(3$,*;>? =$@/ (*, 8//( /$;&> $3*6,/3 8> ,=/ 9*(5*&%3$,/3 /(,%,> )*; ,=/ $((7$& ;/6*;,%(< 6/;%*3 /(3/3 FL ^7(/ JLEJ. 0=/ 9*(5*&%3$,/3 /(,%,>45 $55/55#/(, *) ,=/ %#6$9, *) ,=/5/ (/: *; $#/(3/3 W99*7(,%(< M,$(3$;35 $(3 S(,/;6;/,$,%*(5? #*5, ;/&/@$(, ,* ,=/ 9*(5*&%3$,/3 /(,%,>? $;/ 5/, *7, 8/&*:. "! TZ Limited Notes to the financial statements 30 June 2012 Note 1. Significant accounting policies (continued) AASB 9 Financial Instruments, 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 and 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 and AASB 2012-6 Amendments to Australian Accounting Standards – Mandatory Effective Date of AASB 9 and Transition Disclosures 0=%5 5,$(3$;3 $(3 %,5 9*(5/X7/(,%$& $#/(3#/(,5 $;/ $66&%9$8&/ ,* $((7$& ;/6*;,%(< 6/;%*35 8/<%((%(< *( *; $),/; E ^$(7$;> JLEK $(3 9*#6&/,/5 6=$5/ S *) ,=/ SWMY45 6;*k/9, ,* ;/6&$9/ SWM FG Z8/%(< ,=/ %(,/;($,%*($& /X7%@$&/(, ,* WWMY EFG 4A%($(9%$& S(5,;7#/(,5' e/9*<(%,%*( $(3 b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d5 *:( 9;/3%, ;%5U %5 ,* 8/ 6;/5/(,/3 %( *,=/; 9*#6;/=/(5%@/ %(9*#/ 7(&/55 %, :*7&3 9;/$,/ $( $99*7(,%(< #%5#$,9=. 0=/ 9*(5*&%3$,/3 /(,%,> :%&& $3*6, ,=%5 5,$(3$;3 );*# E ^7&> JLEK 87, ,=/ %#6$9, *) %,5 $3*6,%*( %5 >/, ,* 8/ $55/55/3 8> ,=/ 9*(5*&%3$,/3 /(,%,>. AASB 10 Consolidated Financial Statements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d5 ;/,7;(5 Z/.<. *6/;$,%(< 6*&%9%/5? 9$6%,$& 3/9%5%*(5? $66*%(,#/(, *) U/> #$($ :%&& (*, *(&> =$@/ ,* 9*(5%3/; %,5 =*&3%(<5 $(3 ;%<=,5 87, $&5* ,=/ =*&3%(<5 $(3 ;%<=,5 *) *,=/; 5=$;/=*&3/;5 %( *;3/; ,* 3/,/;#%(/ :=/,=/; %, =$5 ,=/ (/9/55$;> 6*:/; )*; 9*(5*&%3$,%*( 67;6*5/5. 0=/ $3*6,%*( *) ,=%5 5,$(3$;3 );*# E ^7&> JLEF #$> =$@/ $( %#6$9, :=/;/ ,=/ 9*(5*&%3$,/3 /(,%,> =$5 $ =*&3%(< *) &/55 ,=$( KLm %( $( /(,%,>? =$5 3/ )$9,* 9*(,;*&? $(3 %5 (*, 97;;/(,&> 9*(5*&%3$,%(< ,=$, /(,%,>. AASB 11 Joint Arrangements 0=%5 5,$(3$;3 %5 $66&%9$8&/ ,* $((7$& ;/6*;,%(< 6/;%*35 8/<%((%(< *( *; $),/; E ^$(7$;> JLEF. 0=/ 5,$(3$;3 3/)%(/5 :=%9= /(,%,%/5 X7$&%)> $5 k*%(, @/(,7;/5 $(3 ;/#*@/5 ,=/ *6,%*( ,* $99*7(, )*; k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isclosure of Interests in Other Entities 0=%5 5,$(3$;3 %5 $66&%9$8&/ ,* $((7$& ;/6*;,%(< 6/;%*35 8/<%((%(< *( *; $),/; E ^$(7$;> JLEF. S, 9*(,$%(5 ,=/ /(,%;/ 3%59&*57;/ ;/X7%;/#/(, $55*9%$,/3 :%,= *,=/; /(,%,%/5? 8/%(< 5785%3%$;%/5? $55*9%$,/5 $(3 k*%(, @/(,7;/5. 0=/ 3%59&*57;/ ;/X7%;/#/(,5 =$@/ 8//( 5%<(%)%9$(,&> /(=$(9/3 :=/( 9*#6$;/3 ,* ,=/ 3%59&*57;/5 6;/@%*75&> &*9$,/3 %( WWMY EJI 4P*(5*&%3$,/3 $(3 M/6$;$,/ A%($(9%$& M,$,/#/(,54? WWMY EJ] 4S(@/5,#/(,5 %( W55*9%$,/54? WWMY EFE 4S(,/;/5,5 %( ^*%(, a/(,7;/54 $(3 S(,/;6;/,$,%*( EEJ 4P*(5*&%3$,%*( " M6/9%$& Q7;6*5/ !(,%,%/54. 0=/ $3*6,%*( *) ,=%5 5,$(3$;3 );*# E ^7&> JLEF :%&& 5%<(%)%9$(,&> %(9;/$5/ ,=/ $#*7(, *) 3%59&*57;/5 ;/X7%;/3 ,* 8/ <%@/( 8> ,=/ 9*(5*&%3$,/3 /(,%,> 579= $5 5%<(%)%9$(, k73 $(3 ,=/ ,>6/ *) (*("9*(,;*&&%(< %(,/;/5, $(3 ,=/ ($,7;/ $(3 ;%5U5 %(@*&@/3. "" TZ Limited Notes to the financial statements 30 June 2012 Note 1. Significant accounting policies (continued) AASB 13 Fair Value Measurement and AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 0=%5 5,$(3$;3 $(3 %,5 9*(5/X7/(,%$& $#/(3#/(,5 $;/ $66&%9$8&/ ,* $((7$& ;/6*;,%(< 6/;%*35 8/<%((%(< *( *; $),/; E ^$(7$;> JLEF. 0=/ 5,$(3$;3 6;*@%3/5 $ 5%(<&/ ;*875, #/$57;/#/(, );$#/:*;U? :%,= 9&/$; #/$57;/#/(, *8k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mployee Benefits (September 2011) and AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September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mendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirement 0=/5/ $#/(3#/(,5 $;/ $66&%9$8&/ ,* $((7$& ;/6*;,%(< 6/;%*35 8/<%((%(< *( *; $),/; E ^7&> JLEF? :%,= /$;&> $3*6,%*( (*, 6/;#%,,/3. 0=/> $#/(3 WWMY EJH 4e/&$,/3 Q$;,> R%59&*57;/54 8> ;/#*@%(< ,=/ 3%59&*57;/ ;/X7%;/#/(,5 )*; %(3%@%37$& U/> #$($ JLEF :%&& ;/#*@/ ,=/ 376&%9$,%*( *) %()*;#$,%*( ;/&$,%(< ,* %(3%@%37$& fbQ %( ,=/ (*,/5 ,* ,=/ )%($(9%$& 5,$,/#/(,5 $(3 ,=/ 3%;/9,*;5 ;/6*;,. W5 ,=/ $<<;/<$,/ 3%59&*57;/5 $;/ 5,%&& ;/X7%;/3 8> WWMY EJH $(3 37;%(< ,=/ ,;$(5%,%*($& 6/;%*3 ,=/ ;/X7%;/#/(,5 #$> 8/ %(9&73/3 %( ,=/ P*;6*;$,%*(5 W9, *; *,=/; &/<%5&$,%*(? %, %5 /B6/9,/3 ,=$, ,=/ $#/(3#/(,5 :%&& (*, =$@/ $ #$,/;%$& %#6$9, *( ,=/ 9*(5*&%3$,/3 /(,%,>. AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards 0=/ $#/(3#/(,5 $;/ $66&%9$8&/ ,* $((7$& ;/6*;,%(< 6/;%*35 8/<%((%(< *( *; $),/; E ^$(7$;> JLEF. 0=/ $#/(3#/(,5 #$U/ (7#/;*75 9*(5/X7/(,%$& 9=$( JLEF :%&& (*, =$@/ $ #$,/;%$& %#6$9, *( ,=/ 9*(5*&%3$,/3 /(,%,>. AASB 2011-9 Amendments to Australian Accounting Standards - Presentation of Items of Other Comprehensive Income 0=/5/ $#/(3#/(,5 $;/ $66&%9$8&/ ,* $((7$& ;/6*;,%(< 6/;%*35 8/<%((%(< *( *; $),/; E ^7&> JLEJ. 0=/ $#/(3#/(,5 ;/X7%;/5 <;*76%(< ,* :%&& /@/(,7$&&> 8/ 4;/9>9&/34 ,* ,=/ 6;*)%, *; &*55 Z;/9&$55%)%9$,%*( $3k75,#/(,5\. 0=/ 9=$( $8*7, ,=/ ($,7;/ *) %,/#5 6;/5/(,/3 $5 *,=/; 9*#6;/=/(5%@/ %(9*#/ $(3 ,=/ ;/&$,/3 ,$B 6;/5/(,$,%*(. 0=/ $3*6,%*( *) ,=/ ;/@%5/3 5,$(3$;3 );*# E ^7&> JLEJ :%&& %#6$9, ,=/ 9*(5*&%3$,/3 /(,%,>d5 6;/5/(,$,%*( *) %,5 5,$,/#/(, *) 9*#6;/=/(5%@/ %(9*#/. AASB 2012-2 Amendments to Australian Accounting Standards - Disclosures - Offsetting Financial Assets and Financial Liabilities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imited Notes to the financial statements 30 June 2012 Note 1. Significant accounting policies (continued) AASB 2012-3 Amendments to Australian Accounting Standards - Offsetting Financial Assets and Financial Liabilities 0=/ $#/(3#/(,5 $;/ $66&%9$8&/ ,* $((7$& ;/6*;,%(< 6/;%*35 8/<%((%(< *( *; $),/; E ^$(7$;> JLEH. 0=/ $#/(3#/(,5 $33 $66&%9$,%*( <7%3$(9/ ,* $33;/55 %(9*(5%5,/(9%/5 %( ,=/ $66&%9$,%*( *) ,=/ *))5/,,%(< 9;%,/;%$ %( WWMY EFJ 4A%($(9%$& S(5,;7#/(,5' Q;/5/(,$,%*(4? 8> 9&$;%)>%(< ,=/ #/$(%(< *) r97;;/(,&> =$5 $ &/<$&&> /()*;9/$8&/ ;%<=, *) 5/,"*))ri $(3 9&$;%)%/5 ,=$, 5*#/ <;*55 5/,,&/#/(, 5>5,/#5 #$> 8/ 9*(5%3/;/3 ,* 8/ /X7%@$&/(, ,* (/, 5/,,&/#/(,. 0=/ $3*6,%*( *) ,=/ $#/(3#/(,5 );*# E ^7&> JLEH :%&& (*, =$@/ $ #$,/;%$& %#6$9, *( ,=/ 9*(5*&%3$,/3 /(,%,>. AASB 2012-5 Amendments to Australian Accounting Standards arising from Annual Improvements 2009-2011 Cycle 0=/ $#/(3#/(,5 $;/ $66&%9$8&/ ,* $((7$& ;/6*;,%(< 6/;%*35 8/<%((%(< *( *; $),/; E ^$(7$;> JLEF. 0=/ $#/(3#/(,5 $))/9, )%@/ W75,;$&%$( W99*7(,%(< M,$(3$;35 $5 )*&&*:5' P*()%;#$,%*( ,=$, ;/6/$, $66&%9$,%*( *) WWMY E ZSAeM E\ 4A%;5," ,%#/ W3*6,%*( *) W75,;$&%$( W99*7(,%(< M,$(3$;354 %5 6/;#%,,/3i P&$;%)%9$,%*( *) 8*;;*:%(< 9*5, /B/#6,%*( %( WWMY Ei P&$;%)%9$,%*( *) 9*#6;/=/(5%@/ %()*;#$,%*( ;/X7%;/#/(,5 :=/( $( /(,%,> 6;*@%3/5 $ ,=%;3 8$&$(9/ 5=//, %( $99*;3$(9/ :%,= WWMY ELE 4Q;/5/(,$,%*( *) A%($(9%$& M,$,/#/(,54i P&$;%)%9$,%*( ,=$, 5/;@%9%(< *) /X7%6#/(, %5 9*@/;/3 8> WWMY EED 4Q;*6/;,>? Q&$(, $(3 !X7%6#/(,4? %) 579= /X7%6#/(, %5 75/3 )*; #*;/ ,=$( *(/ 6/;%*3i WWMY EFJ 4A%($(9%$& S(5,;7#/(,5' Q;/5/(,$,%*(4 P&$;%)%9$,%*( *) %5 ;/9*<(%5/3 %( ,=/ %(9*#/ 5,$,/#/(,i $(3 9&$;%)%9$,%*( *) ,=/ )%($(9%$& ;/6*;,%(< ;/X7%;/#/(,5 %( WWMY EFH 4S(,/;%# A%($(9%$& e/6*;,%(<4 $(3 ,=/ 3%59&*57;/ ;/X7%;/#/(,5 *) 5/<#/(, $55/,5 $(3 &%$8%&%,%/5. 0=/ $3*6,%*( *) ,=/ $#/(3#/(,5 );*# E ^7&> JLEF :%&& (*, =$@/ $ #$,/;%$& %#6$9, *( ,=/ 9*(5*&%3$,/3 /(,%,>. ,=/ ,$B /))/9, *) 3%5,;%87,%*(5 ,* =*&3/;5 *) $( /X7%,> %(5,;7#/(, Note 2. Critical accounting judgements, estimates and assumptions 0=/ 6;/6$;$,%*( *) ,=/ )%($(9%$& 5,$,/#/(,5 ;/X7%;/5 #$($ /@$&7$,/5 %,5 k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rovision for impairment of receivables 0=/ 6;*@%5%*( )*; %#6$%;#/(, *) ;/9/%@$8&/5 $55/55#/(, ;/X7%;/5 $ 3/<;// *) /5,%#$,%*( $(3 k73 ,$U%(< %(,* $99*7(, ,=/ ;/9/(, 5$&/5 /B6/;%/(9/? ,=/ $ 3/,/;#%(/5 ,=/ /5,%#$,/3 75/)7& &%@/5 $(3 ;/&$,/3 3/6;/9%$,%*( $(3 $#*;,%5$,%*( 9=$;? 6&$(, $(3 /X7%6#/(, $(3 )%(%,/ &%)/ %(,$(<%8&/ $55/,5. 0=/ 75/)7& &%@/5 9*7&3 9=$( $5 $ ;/57&, *) ,/9=(%9$& %((*@$,%*(5 *; 5*#/ *,=/; /@/(,. 0=/ 3/6;/9%$,%*( $(3 $#*;,%5$,%*( 9=$; /5,%#$,/3 &%@/5? *; ,/9=(%9$&&> *85*&/,/ *; (*("5,;$,/<%9 $55/,5 ,=$, =$@/ 8//( $8$(3*(/3 *; 5*&3 :%&& 8/ :;%,,/( *)) *; :;%,,/( 3*:(. "$ TZ Limited Notes to the financial statements 30 June 2012 Note 2. Critical accounting judgements, estimates and assumptions (continued) Goodwill and other indefinite life intangible assets 0=/ 9*(5*&%3$,/3 /(,%,> ,/5,5 $((7$&&>? *; #*;/ );/X7/(,&> %) /@/(,5 *; 9=$( %#6$%;#/(,? %( $99*;3$(9/ :%,= ,=/ $99*7(,%(< 6*&%9> 5,$,/3 %( (*,/ E. 0=/ ;/9*@/;$8&/ $#*7(,5 *) 9$5=" $55/55/5 %#6$%;#/(, *) (*(")%($(9%$& $55/,5 *,=/; ,=$( <**3:%&& $(3 *,=/; %(3/)%(%,/ &%)/ %(,$(<%8&/ $55/,5 $, /$9= ;/6*;,%(< 3$,/ 8> /@$&7$,%(< 9*(3%,%*(5 56/9%)%9 ,* ,=/ 9*(5*&%3$,/3 /(,%,> $(3 ,* ,=/ 6$;,%97&$; $55/, ,=$, #$> &/$3 ,* %#6$%;#/(,. S) $( %#6$%;#/(, ,;%< /5,%#$,/5 $(3 $557#6,%*(5. Income tax 0=/ 9*(5*&%3$,/3 /(,%,> %5 578k/9, ,* %(9*#/ ,$B/5 %( ,=/ k7;%53%9,%*(5 %( :=%9= %, *6/;$,/5. M%<(%)%9$(, k73 ,;$(5$9,%*(5 $(3 9$&97&$,%*(5 7(3/;,$U/( 37;%(< ,=/ *;3%($;> 9*7;5/ *) 875%(/55 )*; :=%9= ,=/ 7&,%#$,/ ,$B 3/,/;#%($,%*( %5 7(9/;,$%(. 0=/ 9*(5*&%3$,/3 /(,%,> ;/9*<(%5/5 &%$8%&%,%/5 )*; $(,%9%6$,/3 ,$B $73%, %557/5 8$5/3 *( ,=/ 9*(5*&%3$,/3 /(,%,>d5 97;;/(, 7(3/;5,$(3%(< *) ,=/ ,$B &$:. O=/;/ ,=/ )%($& ,$B *7,9*#/ *) ,=/5/ #$,,/;5 %5 3%))/;/(, );*# ,=/ 9$;;>%(< $#*7(,5? 579= 3%))/;/(9/5 :%&& %#6$9, ,=/ 97;;/(, $(3 3/)/;;/3 ,$B 6;*@%5%*(5 %( ,=/ 6/;%*3 %( :=%9= 579= 3/,/;#%($,%*( %5 #$3/. Recovery of deferred tax assets R/)/;;/3 ,$B $55/,5 $;/ ;/9*<(%5/3 )*; 3/379,%8&/ ,/#6*;$;> 3%))/;/(9/5 *(&> %) ,=/ 9*(5*&%3$,/3 /(,%,> 9*(5%3/;5 %, %5 6;*8$8&/ ,=$, )7,7;/ ,$B$8&/ $#*7(,5 :%&& 8/ $@$%&$8&/ ,* 7,%&%5/ ,=*5/ ,/#6*;$;> 3%))/;/(9/5 $(3 &*55/5. Valuation of embedded derivatives and convertible note debt portion 0=/ ,/;#5 *) ,=/ P*(@/;,%8&/ N*,/ M7859;%6,%*( R//3 $;/ 579= ,=$, ,=/ (*,/ =*&3/;5 $;/ $8&/ ,* 9*(@/;, ,* /X7%,> $, ,=/ 9*(@/;5%*( 3$,/ $, ,=/ &*:/; *)' Z$\ ,=/ $<;//3 9*(@/;5%*( 6;%9/i $(3 Z8\ ,=/ %557/ 6;%9/ *) $(> 5785/X7/(, 5=$;/ %557/ 37;%(< ,=/ ,/;# *) ,=/ ,/;# *) ,=/ 9*(@/;,%8&/ (*,/. 0=/ 9*(@/;,%8&/ (*,/5? $5 $ ;/57&, *) ,=%5 9&$75/ :=%9= /&%#%($,/5 ,=/ (*,/ =*&3/;45 /X7%,> ;%5U? $;/ ,=/;/)*;/ 3/8, %(5,;7#/(,5 :=%9= =*5, $( /#8/33/3 3/;%@$,%@/ %( $99*;3$(9/ :%,= WWMY EFJ 4A%($(9%$& S(5,;7#/(,5' Q;/5/(,$,%*(4. V6*( %(9/6,%*(? ,=/ 3/;%@$,%@/ /&/#/(, *) ,=/ 9*(@/;,%8&/ (*,/5 %5 5/6$;$,/3 $(3 @$&7/3 %( $99*;3$(9/ :%,= WWMY EFG 4A%($(9%$& S(5,;7#/(,5' e/9*<(%,%*( $(3 b/$57;/#/(,4. 0=/;/$),/; ,=/ 3/;%@$,%@/ %5 3/5%<($,/3 $5 )$%; @$&7/ ,=;*7<= 6;*)%, $(3 &*55? $(3 $99*;3%(<&> %5 )$%; @$&7/3 $, ,=/ /(3 *) /$9= ;/6*;,%(< 6/;%*3? :%,= $(> #*@/#/(, %( )$%; @$&7/ ;/6*;,/3 ,=;*7<= 6;*)%, $(3 &*55. 0=/ 9*(@/;,%8&/ (*,/ 3/8, 6*;,%*( %5 #/$57;/3 $, )$%; @$&7/ *( %(9/6,%*( $(3 5785/X7/(,&> #/$57;/3 $, $#*;,%5/3 9*5,. 0* @$&7/ ,=/ 3/;%@$,%@/ ,=/ 9*#6$(> /(<$ 2%#%,/3. W b*(,/ P$;&* 5%#7&$,%*( :$5 9*(379,/3 :=/;/8> $ ;$(3*# (7#8/; :%,=%( $ (*;#$& 3%5,;%87,%*( :$5 7,%&%5/3 ,* 5%#7&$,/ ,=/ 5=$;/ 6;%9/ ;/,7;( $, $ 3/)%(/3 6*%(, %( ,%#/. S( $;;%@%(< $, ,=/%; @$&7$,%*(? k73. 0=/ 9$;;>%(< @$&7/5 $, FL ^7(/ JLEJ *) ,=/ 3/;%@$,%@/ $(3 9*(@/;,%8&/ (*,/ &%$8%&%,%/5 $;/ h]LI?LLL $(3 hEF?EFK?LLL ;/56/9,%@/&> ZJLEE' 3/;%@$,%@/ hH?HEE?LLL $(3 9*(@/;,%8&/ (*,/ hEL?JLD?LLL\ $5 3/,$%&/3 %( (*,/5 E]? EG? JJ $(3 JF. "% TZ Limited Notes to the financial statements 30 June 2012 Note 3. Operating segments Identification of reportable operating segments 0=/ 9*(5*&%3$,/3 /(,%,> %5 *;<$(%5/3 %(,* ,:* *6/;$,%(< 5/<#/(,5. 0=/5/ *6/;$,%(< 5/<#/(,5 $;/ 8$5/3 *( ,=/ %(,/;($& ;/6*;,5 ,=$, $;/ ;/@%/:/3 $(3 75/3 8> ,=/ /B/97,%@/ #$($ 8$5%5. Types of products and services 0=/ 6;%(9%6$& 6;*379,5 $(3 5/;@%9/5 *) /$9= *) ,=/5/ *6/;$,%(< 5/<#/(,5 $;/ $5 )*&&*:5' QR0 g*&3%(<5 S(9.? Z4QR04\ 0/&/-><*&*<> S(9. $(3 01S W75,;$&%$ Q,> 2%#%,/3 Z401S4\ QR0 `;*76 *6/;$,/5 %,5 /(<%(//;%(< $(3 3/5%<( 3%@%5%*( 6;/3*#%($(,&> %( ,=/ VMW? :=%&5, #$%(,$%(%(< $ 6;/5/(9/ %( ,=/ Vf $(3 ,=/ VU;$%(/. 01Sd5 6;%#$;> ;*&/ %5 ,=/ 3/@/&*6#/(, $(3 9*##/;9%$&%5$,%*( *) =$;3:$;/ $(3 5*),:$;/ 6;*379,5 6;%#$;%&> %( ,=/ VM? W75,;$&%$( $(3 W5%$( #$;U/,5. Intersegment transactions S(,/;5/<#/(, ,;$(5$9,%*(5 :/;/ #$3/ $, #$;U/, ;$,/5. S(,/;5/<#/(, ,;$(5$9,%*(5 $;/ /&%#%($,/3 *( 9*(5*&%3$,%*(. Intersegment receivables, payables and loans S(,/;5/<#/(, &*$(5 $;/ %(%,%$&&> ;/9*<(%5/3 $, ,=/ 9*(5%3/;$,%*( ;/9/%@/3. S(,/;5/<#/(, &*$(5 ;/9/%@$8&/ $(3 &*$(5 6$>$8&/ ,=$, /$;( *; %(97; (*("#$;U/, %(,/;/5, ;$,/5. S(,/;5/<#/(, &*$(5 $;/ /&%#%($,/3 *( 9*(5*&%3$,%*(. %(,/;/5, $;/ (*, $3k75,/3 ,* )$%; @$&7/ 8$5/3 *( #$;U/, Major customers R7;%(< ,=/ >/$; /(3/3 FL ^7(/ JLEJ $66;*B%#$,/&> HE.GKm ZJLEE' FK.ELm\ *) ,=/ 9*(5*&%3$,/3 /(,%,>45 /B,/;($& ;/@/(7/ :$5 3/;%@/3 );*# 5$&/5 ,* *(/ 975,*#/; *) QR0. Segment information M/<#/(, %()*;#$,%*( %5 6;/5/(,/3 75%(< $ 4#$($ ,=/ PTRb. "& TZ Limited Notes to the financial statements 30 June 2012 Note 3. Operating segments (continued) Operating segment information 2012 $'000 PDT (USA) $'000 PDT (USA) $'000 TZI (USA & AUST) $'000 Intersegment eliminations/ unallocated Consolidated $'000 $'000 19,127 368 19,495 10 19,505 2,051 - 2,051 116 2,167 - (368) (368) 4,691 4,323 (630) (6,468) - 21,178 - 21,178 4,817 25,995 (7,098) 4,691 (3,305) (1,768) (4,862) (12,342) (19) (12,361) PDT (USA) $'000 TZI (USA) $'000 Intersegment eliminations/ unallocated Consolidated $'000 $'000 21,229 275 21,504 21 21,525 1,152 225 1,377 203 1,580 - - 7,165 7,165 1,391 (5,837) - 22,381 500 22,881 7,389 30,270 (4,446) 7,552 (5,827) (1,856) (4,098) (8,675) (109) (8,784) - - - - - - Revenue Sales to external customers Intersegment sales Total sales revenue Other revenue Total revenue EBITDA Head office revenue / income Head office costs Depreciation and amortisation Interest expenses Loss before income tax expense Income tax expense Loss after income tax expense 2011 $'000 $'000 - - - - - - Revenue Sales to external customers Intersegment sales Total sales revenue Other revenue Total revenue EBITDA Head office revenue / income Head office costs Depreciation and amortisation Interest expenses Loss before income tax expense Income tax expense Loss after income tax expense - - - - - - - - - - - - ! TZ Limited Notes to the financial statements 30 June 2012 Note 3. Operating segments (continued) Geographical information O<2/15;65 @.6/0=$M/5/02$7:$O8016N5 @.6/0=$A6.4=78 I5.5=5 30/C01;5.=2 A7105 L0.851K B/C01$F Sales to external customers 2012 $'000 2011 $'000 Geographical non-current assets 2012 2011 $'000 $'000 ! "#$ %!&(&$ ,()$ ! "&$ $'$$ ##$ "*$ #,&$ %&$ %!#%)$ ),"$ #!)%"$ )($ $'$$ #"&$ #)$ "%$ * !"+&$ *( $ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ *%!(&)$ # %$ $'$$ $'$$ $'$$ $'$$ $'$$ * ! %&$ **!#& $ **!*()$ *%!"+#$ GC0 407415PC6N5; .7.'N<110./ 5220/2 5>790 510 0DN;<2690 7:! HC010 5PP;6N5>;0! :6.5.N65; 6.2/1<80./2! =0:0110= /5D 5220/2!$P72/$08P;7J80./$>0.0:6/2$5220/2$5.=$164C/2$<.=01$6.2<15.N0$N7./15N/2R F$$$$$$B/C01$10;5/02$/7$G56H5.!$IC6.5!$-/5;J!$?<2265!$-10;5.=$$5.=$G<1K0J Note 4. Revenue Sales revenue M5;02$5.=$20196N02$1090.<0 Other revenue E5.54080./$:002 -./0102/ ?7J5;/J B/C01$1090.<0 ?090.<0 Note 5. Other income 30/$456.$7.$=62P725;$7:$P17P01/J!$P;5./$5.=$0Q<6P80./ 30/$456.$7.$622<0$7:$2C5102$/7$0D/6.4<62C$;65>6;6/602 30/$456.$7.$879080./$6.$:561$95;<0$7:$=01695/690$;65>6;6/602 $'$$ $'$$ $'$$ $'$$ Consolidated 2012 $'000 2011 $'000 * ! %&$ **!#""$ $'$$ *($ &$ ")"$ !* *$ &$ *),$ &"$ % +$ !+% $ **!#"+$ *#!,%+$ Consolidated 2012 $'000 2011 $'000 $'$$ $'$$ #!)+($ #$ "+$ )!)+%$ B/C01$6.N780 $'$$ $'$$ #!)+($ )!&++$ " TZ Limited Notes to the financial statements 30 June 2012 Note 6. Expenses T722$>0:710$6.N780$/5D$6.N;<=02$/C0$:7;;7H6.4$2P0N6:6N$ 0DP0.202U Depreciation T0520C7;=$68P179080./2 X;5./$5.=$0Q<6P80./ B::6N0$0Q<6P80./ G7/5;$=0P10N65/67. Amortisation ?0'5NQ<610=$164C/$V-./0965$T6N0.N0W B/C01$6./5.46>;0$5220/2 G7/5;$5871/625/67. G7/5;$=0P10N65/67.$5.=$5871/625/67. Cost of sales L610N/$85/0165; L610N/$08P;7J80./$10;5/0=$0DP0.202 M<>N7./15N/712 I78P5.J$7901C05=2 B/C01$N72/$7:$25;02 Consolidated 2012 $'000 2011 $'000 * &$ *()$ * ($ )&"$ )*&$ ,( $ *+*$ *" $ ),$ )(%$ )(&$ (, $ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ !+%"$ ! ""$ !%)&$ !&()$ "*+$ %!+,%$ &!#,)$ ,)+$ &#*$ !+)&$ )!&# $ %!&##$ ,)%$ ,+#$ G7/5;$N72/$7:$25;02 $'$$ $'$$ %!)+($ )!)+*$ Finance costs -./0102/$5.=$:6.5.N0$NC51402$P56=SP5J5>;0 Net foreign exchange loss 30/$:71064.$0DNC5.40$;722 Superannuation expense L0:6.0=$N7./16>520=$P5J80./2$0DP0.20 $ ,!&)*$ ,!+"&$ $'$$ $ #))$ ($ %)"$ *!#+#$ #$ TZ Limited Notes to the financial statements 30 June 2012 Note 7. Income tax expense Income tax expense I<110./$/5D L0:0110=$/5D$'$71646.5/67.$5.=$1090125;$7:$/08P7151J$ =6::010.N02 @.=01$P1796267.$:71$P1671$J0512 O441045/0$6.N780$/5D$0DP0.20 L0:0110=$/5D$6.N;<=0=$6.$6.N780$/5D$0DP0.20$N78P16202U -.N10520$6.$=0:0110=$/5D$5220/2$V.7/0$ (W -.N10520$6.$=0:0110=$/5D$;65>6;6/602$V.7/0$*,W L0:0110=$/5D$'$71646.5/67.$5.=$1090125;$7:$/08P7151J$ =6::010.N02 Numerical reconciliation of income tax expense and tax at the statutory rate T722$>0:710$6.N780$/5D$0DP0.20 G5D$5/$/C0$2/5/5.K Consolidated 2012 $'000 2011 $'000 "+,$ ! ,)$ #% TZ Limited Notes to the financial statements 30 June 2012 Note 9. Current assets - trade and other receivables G15=0$10N0695>;02 T022U$X1796267.$:71$68P56180./$7:$10N0695>;02 B/C01$10N0695>;02 [77=2$5.=$20196N02$/5D$10N0695>;0 X10P5J80./2 $'$$ $'$$ Consolidated 2012 $'000 2011 $'000 #!)*($ V&)W #!(#"$ !%"#$ #)$ %)$ #!"%%$ V )(W #!& *$ &,*$ ,&$ * $ $'$$ $'$$ (!(,,$ ,!" #$ Impairment of receivables GC0$5406.4$7:$/C0$68P5610=$10N0695>;02$P1796=0=$:71$5>790$510$52$:7;;7H2U X52/$=<0$#+$=5J2 X52/$=<0$)+$'$"+$=5J2 X52/$=<0$"+$=5J2$\ E79080./2$6.$/C0$P1796267.$:71$68P56180./$7:$10N0695>;02$510$52$:7;;7H2U $'$$ $'$$ BP0.6.4$>5;5.N0 O==6/67.5;$P1796267.2$10N74.620= Z71064.$0DNC5.40 ?0N0695>;02$H16//0.$7::$=<16.4$/C0$J051$52$<.N7;;0N/5>;0 I;726.4$>5;5.N0 $'$$ $'$$ Consolidated 2012 $'000 2011 $'000 (,$ &$ *,$ &)$ $'$$ $'$$ )($ )($ Consolidated 2012 $'000 2011 $'000 )($ *,#$ %$ V#*"W &)$ (#$ **$ V*%W V&#W )($ #& TZ Limited Notes to the financial statements 30 June 2012 Note 9. Current assets - trade and other receivables (continued) Past due but not impaired I<2/78012 H6/C >5;5.N02 P52/ =<0 >;02 587<./ /7 ^,,#!+++ 52 5/ #+ _<.0$*+ *$V^%,&!+++$52$5/$#+$_<.0$*+ WR GC0 N7.27;6=5/0= 0./6/J =6= .7/ N7.26=01 5 N10=6/ 162K 7. /C0 5441045/0 >5;5.N02 5:/01 10960H6.4 N10=6/ /0182 7: N<2/78012$>520=$7.$10N0./$N7;;0N/67.$P15N/6N02R GC0$5406.4$7:$/C0$P52/$=<0$>;02$510$52$:7;;7H2U X52/$=<0$+$'$#+$=5J2 X52/$=<0$#+$'$)+$=5J2 X52/$=<0$)+$'$"+$=5J2 X52/$=<0$"+$=5J2$\ Note 10. Current assets - inventories $'$$ $'$$ -.90./71602 Note 11. Current assets - investment in short term deposit G018$=0P726/2 Note 12. Non-current assets - investments accounted for using the equity method -.902/80./$6.$]76./$90./<10$'$-./5.795$X/J$T686/0= ?0:01$/7$.7/0$, $:71$:<1/C01$6.:7185/67.$7.$6./0102/2$6.$]76./$90./<102R Consolidated 2012 $'000 2011 $'000 **"$ ,$ (*$ ,&$ ,,#$ ,+"$ (%$ #*$ (+$ %,&$ Consolidated 2012 $'000 2011 $'000 #,*$ ## $ Consolidated 2012 $'000 2011 $'000 $'$$ (!(++$ Consolidated 2012 $'000 2011 $'000 $'$$ &%$ # TZ Limited Notes to the financial statements 30 June 2012 Note 13. Non-current assets - property, plant and equipment T0520C7;=$68P179080./2$'$5/$N72/ T022U$ONN<8<;5/0=$=0P10N65/67. X;5./$5.=$0Q<6P80./$'$5/$N72/ T022U$ONN<8<;5/0=$=0P10N65/67. B::6N0$0Q<6P80./$'$5/$N72/ T022U$ONN<8<;5/0=$=0P10N65/67. Consolidated 2012 $'000 2011 $'000 !% #$ V ! +(W )+&$ !", $ V !#+"W )#*$ "+)$ V(% W ##($ !)+&$ V&"#W % ($ !) ($ V&&)W %*"$ ""&$ V((&W ,,+$ !(%($ !&&,$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ Reconciliations ?0N7.N6;65/67.2 7: /C0 H16//0. =7H. 95;<02 5/ /C0 >046..6.4 5.= 0.= 7: /C0 N<110./ 5.= P10967<2 :6.5.N65; J051 510 20/ 70;7HU $$ $$ ^`+++ $$ $$ ^`+++ T0520C7;= 68P179080./2 ^`+++ X;5./$5.= 0Q<6P80./ ^`+++ B::6N0 0Q<6P80./ ^`+++ G7/5; ^`+++ "#&$ *+ $ $'$$ V***W V*+*W % ($ ,*$ )"$ V* &W )+&$ )&%$ #),$ V,W V*%W V*" W %*"$ ##$ *)$ V*()W )#*$ #( $ #&($ $'$$ V #*W V ),W ,,+$ #,$ V*,W V* (W !"%)$ "(+$ V,W V#& W V)(%W !&&,$ #+"$ % $ V)&"W ##($ !(%($ Consolidated b5;5.N0$5/$ $_<;J$*+ + O==6/67.2 L62P725;2 aDNC5.40$=6::010.N02 L0P10N65/67.$0DP0.20 b5;5.N0$5/$#+$_<.0$*+ O==6/67.2 aDNC5.40$=6::010.N02 L0P10N65/67.$0DP0.20 b5;5.N0$5/$#+$_<.0$*+ * $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ ## TZ Limited Notes to the financial statements 30 June 2012 Note 14. Non-current assets - intangibles [77=H6;;$'$5/$N72/ G15=0$.5802$'$5/$N72/ ?0'5NQ<610=$164C/$V-./0965$T6N0.N0W$'$5/$N72/ T022U$ONN<8<;5/0=$5871/625/67. X5/0./2$'$5/$N72/ T022U$ONN<8<;5/0=$5871/625/67. L090;7P80./$N72/2$'$5/$N72/ T022U$ONN<8<;5/0=$5871/625/67. I<2/7801$10;5/67.2C6P2$'$5/$N72/ T022U$ONN<8<;5/0=$5871/625/67. Consolidated 2012 $'000 2011 $'000 "!#*)$ "!#*)$ ! "+$ ! "+$ "!+(%$ V#!"(+W (! +%$ !,(,$ V#*&W ! *)$ !%"*$ V, *W !#&+$ #!*#($ V !& W !,*,$ &!", $ &!", $ ! ,)$ ! ,)$ &!%* $ V#! "(W (!(*)$ !##,$ V**"W ! +($ !%#($ V*%%W !,(&$ #! + $ V !(*%W !(%,$ "!((#$ "!%(+$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ Reconciliations ?0N7.N6;65/67.2 7: /C0 H16//0. =7H. 95;<02 5/ /C0 >046..6.4 5.= 0.= 7: /C0 N<110./ 5.= P10967<2 :6.5.N65; J051 510 20/ 70;7HU Consolidated b5;5.N0$5/$ $_<;J$*+ + O==6/67.2 aDNC5.40$=6::010.N02 O871/625/67.$0DP0.20 b5;5.N0$5/$#+$_<.0$*+ O==6/67.2 aDNC5.40$=6::010.N02 O871/625/67.$0DP0.20 b5;5.N0$5/$#+$_<.0$*+ * $$ $$ ^`+++ $$ [77=H6;; ^`+++ G15=0 .5802 ^`+++ ?0'5NQ<610= 164C/ ^`+++ B/C01 6./5.46>;02 ^`+++ G7/5; ^`+++ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ $'$$ +!&,&$ $'$$ V !"+%W $'$$ &!", $ $'$$ #&($ $'$$ !#,*$ ($ V*++W V W ! ,)$ $'$$ ,($ V W %!,*)$ $'$$ V !*,*W V)(&W (!(*)$ $'$$ *+"$ V)*&W ,!"*"$ (%#$ V&*(W V(,+W ,! #%$ )($ %&$ V,(+W *,!(,($ (%&$ V,! %,W V ! ""W "!%(+$ )($ & %$ V !+%"W "!#*)$ ! "+$ (! +%$ #!"#+$ "!((#$ F$$$$B/C01$6./5.46>;02$6.$/C0$5>790$10N7.N6;65/67.$6.N;<=02$X5/0./2!$L090;7P80./$N72/2$5.=$I<2/7801$10;5/67.2C6P2R #' TZ Limited Notes to the financial statements 30 June 2012 Note 14. Non-current assets - intangibles (continued) Impairment testing of cash-generating units containing goodwill [77=H6;;! /15=0 .5802! 10'5NQ<610= 164C/ 5.= 7/C01 6./5.46>;0 5220/2 C590 >00. 5;;7N5/0= /7 /C0 :7;;7H6.4 N52C' 40.015/6.4$<.6/2U Goodwill '$XLG$d7;=6.42$-.NR$V`XLG`W '$G0;0eJ47;74J$-.NR$5.=$Gc-$O<2/15;65$X/J$T686/0=$V`Gc-`W Trade names '$XLG '$Gc- Re-acquired right '$Gc- Other intangible assets '$XLG '$Gc- Consolidated 2012 $'000 2011 $'000 (!*##$ ,!+"#$ ! %)$ ,$ (!+ )$ #!"*($ ! #,$ *$ (! +%$ (!(*)$ !(" $ *!##"$ !&*&$ *!#+"$ "!((#$ "!%(+$ GC0 10N79015>;0 587<./ 7: 5;; N52C'40.015/6.4 <.6/2 62 >520= 7. 95;<0'6.'<20 N5;N<;5/67.2 HC6NC <20 N52C :;7H P17]0N/67.2 >520= 7. ><=40/2 5PP1790= >J 85.54080./ N79016.4 5 ( J051 P0167= 6. /C0 N520 7: XLG 5.= 5 & J051 P0167= 6. /C0 N520 7: Gc-R GC0 417H/C 15/0 <20= 6. /C020 ><=40/2 =702 .7/ 0DN00= /C0 ;7.4'/018 5901540 417H/C 15/0 :71$/C0$><26.022$6.$HC6NC$N52C'40.015/6.4$<.6/2$7P015/0R PDT Holdings Inc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imited Notes to the financial statements 30 June 2012 Note 14. Non-current assets - intangibles (continued) Telezygology Inc. and TZI Australia Pty Limited ('TZI') A0J$522<8P/67.2$:71$95;<0'6.'<20$N5;N<;5/67.2$:71$Gc-$510$52$:7;;7H2U '$L62N7<./$15/0$'$ %R&#Y$V*+ U$ )R)YW '$[1722$85146.2$'$><=40/0=$41722$P17:6/$85146.2$510$>0/H00.$#,Y$5.=$#&Y!$C62/716N5;$41722$85146.2$15.40=$>0/H00.$ ,&Y$/7$),Y ' ?090.<0 417H/C 15/02 ' *+ # V*# YW! *+ , V"(YW! *+ ( V%#YW! *+ ) V,)YW! *+ % V "YW! *+ & V&YW! *+ " 5.= *+*+$V YWR GC0 :710N52/0= 5.= P17]0N/0= 1090.<02 :71 790 HC5/ Gc- C52 0DP0160.N0= P10967<2;JR GC010 510 209015; :5N/712 N7./16>0;7HU f Gc-`2 P17=<26.022 <.6/2 C590 7.;J 10N0./;J >00. N78801N65;620=! H6/C 25;02 6. /C0 ;52/ /H7 :62N5;$J0512$10P1020./6.4$;7H01$;090;2$/C5/$510$5NN<2/780=$/7$.0H$P17=0 5 ^ R( >6;;67. 851K0/ /C5/ H6;; 417H 5/ ,Y ' )Y 5..<5;;J 6. /C0$.051$/018R f$I78801N65;$P51/.012C6P2$H6/C$/C0$264.6.4$7:$K0J$=62/16>0J7.=R E5.54080./ >0;60902 /C020 417H/C 15/02 510 5NC6095>;0 5.= /C0J 510 N7.:6=0./ /C0 :710N52/0= 1090.<0 417H/C N5. >0$5NC6090=R E5.54080./ =0/0186.0= ><=40/0= 41722 85146. 62 >520= 7. 0DP0N/5/67.2 :71 /C0 :;0 5220/2 7: Gc- 62 GC0 10N79015>;0 587<./ 7: 02/685/0= /7 >0 ^ )!##&!%&" V*+ U ^**!++,!"%)W HC6NC 0DN00=2 /C0 N511J6.4 587<./ 5/ #+ _<.0 *+ * >J ^,!%&(!%&" V*+ U ^ +!*#*!"%)WR -: 5 =62N7<./ 15/0 7: *,R%Y H52 <20= 6.2/05= 7: %R&#Y! /C0 10N79015>;0 587<./ 7: 477=H6;;! /15=0$.5802!$10'5NQ<610=$164C/$5.=$7/C01$6./5.46>;0$5220/2$H7<;=$0Q<5;$/C0$N511J6.4$587<./R Note 15. Non-current assets - deferred tax Deferred tax asset comprises temporary differences attributable to: O87<./2$10N74.620=$6.$P17:6/$71$;722U G5D$;72202 X17P01/J!$P;5./$5.=$0Q<6P80./ L7<>/:<;$=0>/2 ?02051NC$5.=$=090;7P80./$N10=6/ B/C01$;65>6;6/602 L0:0110=$/5D$5220/ Movements: BP0.6.4$>5;5.N0 I10=6/0=$/7$P17:6/$71$;722$V.7/0$%W I;726.4$>5;5.N0 $'$$ $'$$ #) Consolidated 2012 $'000 2011 $'000 , $ *#%$ *$ $'$$ *&*$ ",*$ %( $ " $ ",*$ ,#$ *++$ ),$ *)$ # &$ %( $ )#($ )$ %( $ TZ Limited Notes to the financial statements 30 June 2012 Note 16. Non-current assets - other M0N<16/J$=0P726/2 Note 17. Current liabilities - trade and other payables G15=0$P5J5>;02 a8P;7J00$0DP0.20$P5J5>;02 T0520$6.N0./690$;65>6;6/J -./0102/$P5J5>;0 B/C01$P5J5>;02 Consolidated 2012 $'000 2011 $'000 &)$ %"$ Consolidated 2012 $'000 2011 $'000 *!+#&$ #&$ )&$ *!)"&$ )(+$ !%#"$ %#$ ) $ &""$ !%+#$ ?0:01$/7$.7/0$#*$:71$:<1/C01$6.:7185/67.$7.$:6.5.N65;$6.2/1<80./2R $'$$ $'$$ (!("*$ ,!(%($ #! TZ Limited Notes to the financial statements 30 June 2012 Note 18. Current liabilities - borrowings -./0"12./3 42/56789:16"/2863"N.D.:16")"X67963"` Consolidated 2012 $'000 2011 $'000 !!" %&'(" ")"" ")"" '*%+,'" #$ " ")"" #$ " Bank loans F<6 >2BN./D ;.3 9/ :76.>< 2= 8<6 F./I9:16 V68 a278< :./09/I >256/./8 .8 +* b?/6 $*'$% <2;6567 8<93 ;.3 76B6A96A";98<"8<6":./0"9/"O?I?38"$*'$";<6/"8<6"=.>9198D";.3"6J86/A6AE Convertible notes - Series I F<6 >2/56789:16 /2863 ;676 933?6A ?/A67 8<6 867B3 2= . 42/56789:16 V286 ./A WN892/ X?:3>79N892/ U66A A.86A $& U6>6B:67 $**#E $&%*** /2863 ;676 933?6A 6.>< ;98< . =.>6 5.1?6 2= @'%***E F<6 /2863 <.56 . ( D6.7 867B% .76 >2/56789:16 .8 8<6 12;67 2=Y Z.[ 8<6 .I766A >2/567392/ N79>6\ ./A Z:[ 8<6 933?6 N79>6 2= ./D 3?:36]?6/8 3<.76 933?6 A?79/I 8<6 867B3 2= 8<6 >2/56789:16 /2863E O8 8<6 89B6 2= 933?6 8<6 >2/567392/ N79>6 ;.3 @&E** N67 3<.76E F<6 /2863 N.D"9/867638".8"."7.86"2="'*^E F<6 $&%*** >2/56789:16 /2863 ;676 7627I./936A 32 8<.8 8<6 >2/567392/ N79>6 ;.3 76A?>6A =72B @&E** N67 27A9/.7D 3<.76 9/ 8<6 >2BN./D 82 @'E** N67 27A9/.7D 3<.76 =27 '$%*** >2/56789:16 /2863 ./A 82 @'E$* N67 27A9/.7D 3<.76 =27 8<6 76B.9/9/I"'$%***"/2863";<9><";.3".NN7256A":D"8<6">2BN./D_3"3<.76<21A673".8"8<6"$** ".//?.1"I6/67.1"B6689/IE 42/56789:16 /2863 ;98< . =.>6 5.1?6 2= @'$%***%*** .76 A?6 82 B.8?76 2/ ', C6:7?.7D $*'+E FG H9B986A <.3 /6I289.86A . 8;6156 B2/8< 6J86/392/ 2= 8<93 B.8?798D A.86 ;98< 8<6 16/A67 KLF% ;<9>< 93 3?:M6>8 82 3<.76<21A67 .NN725.1 .8 8<6 $*'$ OPQE R/1633 8<236 /2863 .76 >2/56786A 82 3<.763 :D 8<6 <21A67 N7927 82 B.8?798D% 8<6 N79/>9N.1 ./A"9/867638"2?838./A9/I"2/"B.8?798D";911":6"N.D.:16"9/">.3<":D"FG"H9B986AE" S6=67 82 /286 $$ =27 =?78<67 9/=27B.892/ 2/ .33683 N16AI6A .3 36>?798D ./A =9/./>9/I .77./I6B6/83 ./A /286 +$ =27 =?78<67"9/=27B.892/"2/"=9/./>9.1"9/387?B6/83E Note 19. Current liabilities - derivative financial instruments U6795.8956"9/387?B6/8"19.:9198963 S6=67"82"/286"+$"=27"=?78<67"9/=27B.892/"2/"=9/./>9.1"9/387?B6/83E Note 20. Current liabilities - provisions TBN12D66":6/6=983 #" Consolidated 2012 $'000 2011 $'000 &," ")"" Consolidated 2012 $'000 2011 $'000 $" ''!" TZ Limited Notes to the financial statements 30 June 2012 Note 21. Current liabilities - other U6=6776A"7656/?6 Note 22. Non-current liabilities - borrowings 42/56789:16"/2863"N.D.:16")"X67963"```"./A"```- S6=67"82"/286"+$"=27"=?78<67"9/=27B.892/"2/"=9/./>9.1"9/387?B6/83E Total secured liabilities F<6"828.1"36>?76A"19.:9198963"Z>?776/8"./A"/2/)>?776/8[".76".3"=2112;3Y -./0"12./3 Consolidated 2012 $'000 2011 $'000 &+#" +!," Consolidated 2012 $'000 2011 $'000 +%#$*" '*%$*!" Consolidated 2012 $'000 2011 $'000 !!" #$ " O8 +* b?/6 $*'$ 8<6 >76A98 =.>9198D <.A . 19B98 2= RX@ ,+%++& Z$*''Y RX@'%$**%***[% <2;6567% 8<6 >.N.>98D 93 A6>76.36A .3 8<6 .B2?/8 2= 36>?798D A6>76.363 :612; 8<6 RX@ ,+%++& Z$*''Y RX@'%$**%***[E F<6 >76A98 =.>9198D >2/39383 2= . S652159/I H9/6 2= 476A98 ./A . F67B H2./E X6>?798D >2/39383 2= .>>2?/83 76>695.:16 1633 8<./ !* A.D3 21A% ./A 619I9:16 76>695.:163 .76 3?:M6>8 82 . $*^ 76A?>892/ 9/ 5.1?6E O :76.0A2;/ 2= 8<6 >76A98 =.>9198D 93 3<2;/ 9/ 8<6 =9/./>9/I".77./I6B6/8"8.:16":612;E Assets pledged as security F<6":./0"12./3".76"36>?76A":D"."B278I.I6"2567"8<6".33683"2="cUF"`/>E%"P72?NE '$ TZ Limited Notes to the financial statements 30 June 2012 Note 22. Non-current liabilities - borrowings (continued) Financing arrangements -.610469J412"3JJ100"E30"3B39>3C>1"34"451"6178649.:"2341"48"451"<8>>8E9.:">9.10"8<"J61294P I843>"<3J9>94910 !"#$%&'%()$*"+ O9Y12"416G">83. -012"34"451"6178649.:"2341 !"#$%&'%()$*"+ O9Y12"416G">83. -./012"34"451"6178649.:"2341 !"#$%&'%()$*"+ O9Y12"416G">83. Consolidated 2012 $'000 2011 $'000 ! """"""""""""""#$#%&" "'"" #!#" () """"""""""""""#$#%&" !*""""""""""""""""" &(" #!#" "'"" ())""""""""""""""""" &(" &" "'"" &" +,%" "'"" +,%" "'"" "'"" "'"" "'"" "'"" "'"" Series II ;0"8<"%,"=/.1"&,#&$"3>>"451"?16910"@@"A8.B1649C>1"D8410"E161">F"61211G12H Series III #$ #+ ?16910 @@@ J8.B1649C>1 .8410 E945 3 <3J1 B3>/1 8< L#$,,, 13J5 E161 900/12 /.216 451 416G0 8< 3. @00/1 3.2 ;G1.2G1.4 K112 E945 MNI O/.20 23412 &% ;769> &,#,H I51 .8410 53B1 3 <9B1 F136 416G 3.2 361 J8.B1649C>1 34 3 B3693C>1 6341$ C19.: 451 >10016 8

1 .8410H @.416104 E9>> 3JJ6/1 8. 13J5 ?16910 @@@ .841 34 #,U 716 3../G$ 73F3C>1 8. %# K1J1GC16 13J5 F136H Series IIIB +$& * ?16910 @@@V J8.B1649C>1 .8410 E945 3 <3J1 B3>/1 8< L#$,,, 13J5 E161 900/12 8. &+ K1J1GC16 &,#, 30 3 610/>4 8< 0536158>2160W 37768B3> 8< X108>/498. * 34 451 J8G73.FW0 &,#, 3../3> :1.163> G1149.: 51>2 8. # D8B1GC16 &,#,H I51 .8410 53B1 3 <9B1 F136 416G 3.2 361 J8.B1649C>1 34 3 B3693C>1 6341$ C19.: 451 >10016 8

8E104 900/1 769J1 8< 3.F 0/C01T/1.4 05361 900/10 2/69.: 451 416G 8< 451 J8.B1649C>1 .8410H @.416104 E9>> 3JJ6/1 8. 13J5 ?16910"@@@V".841"34"#,U"716"3../G$"73F3C>1"8."%#"K1J1GC16"13J5"F136H -.216 451 416G0 8< 451 J8.B1649C>1 .8410$ 451 J/661.4 J8.B16098. 769J1 90 L,H%* 716 05361 <86 ?16910 @ Z @@@ 3.2 L,H+& 716"05361"<86"?16910"@@@V"C3012"8."451"G804"61J1.4"05361"900/10"8<"I["\9G9412H Note 23. Non-current liabilities - derivative financial instruments Consolidated 2012 $'000 2011 $'000 *(" +$+##" K169B349B1"9.046/G1.4">93C9>94910 X1<16"48".841"%&"<86""9.046/G1.40H '% TZ Limited Notes to the financial statements 30 June 2012 Note 24. Non-current liabilities - deferred tax Deferred tax liability comprises temporary differences attributable to: O87<./2$10N74.620=$6.$P17:6/$71$;722U [77=H6;; B/C01$6./5.46>;02 L0:0110=$/5D$;65>6;6/J Movements: BP0.6.4$>5;5.N0 IC5140=$/7$P17:6/$71$;722$V.7/0$%W Consolidated 2012 $'000 2011 $'000 "&%$ (%$ ! ,,$ ",($ ""$ & ($ #+$ ",($ &*"$ )$ ",($ I;726.4$>5;5.N0 $'$$ $'$$ ! ,,$ Note 25. Non-current liabilities - provisions a8P;7J00$>0.0:6/2 Note 26. Non-current liabilities - other T0520$6.N0./690$;65>6;6/J Note 27. Equity - contributed equity Consolidated 2012 $'000 2011 $'000 )$ $'$$ Consolidated 2012 $'000 2011 $'000 ,)*$ (+%$ B1=6.51J$2C5102$'$:<;;J$P56= (cid:1)(cid:2)(cid:3)(cid:4)(cid:2)(cid:5)(cid:6)(cid:4)(cid:7)(cid:8)(cid:9)(cid:10) (cid:1)(cid:9)(cid:9)(cid:4)(cid:11)(cid:2)(cid:1)(cid:4)(cid:1)(cid:9)(cid:2)(cid:10) (#!,,#$ ,"! #$ Consolidated Consolidated 2012 Shares 2011 Shares 2012 $'000 2011 $'000 '& TZ Limited Notes to the financial statements 30 June 2012 Note 27. Equity - contributed equity (continued) Movements in ordinary share capital Details Date No of shares Issue price $'000 b5;5.N0 -22<0$7:$2C5102 -22<0$7:$2C5102$7.$N7.901267.$7:$N7.901/6>;0$ .7/0 -22<0$7:$2C5102$7.$0D01N620$7:$164C/2 -22<0$7:$2C5102$7.$N7.901267.$7:$N7.901/6>;0$ .7/0 G15.2:01$/7$N7./16>;0$ .7/0 -22<0$7:$2C5102 -22<0$7:$2C5102$7.$N7.901267.$7:$;65>6;6/602$/7$ 0Q<6/J G15.2:01$/7$N7./16>01$*+ + *+$37908>01$*+ + *($37908>01$*+ + * $L0N08>01$*+ + ,$OP16;$*+ *,$E5J$*+ #+$_<.0$*+ *&$BN/7>01$*+ **$Z0>1<51J$*+ * (cid:6)(cid:9)(cid:4)(cid:3)(cid:7)(cid:3)(cid:4)(cid:2)(cid:11)(cid:2)(cid:10) (cid:2)(cid:5)(cid:11)(cid:4)(cid:1)(cid:7)(cid:7)(cid:10) (cid:1)(cid:8)(cid:4)(cid:8)(cid:8)(cid:8)(cid:4)(cid:12)(cid:9)(cid:7)(cid:10) (cid:1)(cid:4)(cid:7)(cid:3)(cid:8)(cid:4)(cid:8)(cid:8)(cid:8)(cid:10) (cid:9)(cid:9)(cid:3)(cid:4)(cid:3)(cid:2)(cid:6)(cid:10) (cid:1)(cid:4)(cid:1)(cid:12)(cid:3)(cid:4)(cid:1)(cid:12)(cid:6)(cid:10) (cid:3)(cid:4)(cid:8)(cid:12)(cid:1)(cid:4)(cid:7)(cid:7)(cid:6)(cid:10) (cid:9)(cid:4)(cid:8)(cid:7)(cid:3)(cid:4)(cid:7)(cid:2)(cid:1)(cid:10) (cid:9)(cid:3)(cid:4)(cid:8)(cid:6)(cid:12)(cid:4)(cid:2)(cid:1)(cid:12)(cid:10) (cid:2)(cid:4)(cid:11)(cid:12)(cid:5)(cid:4)(cid:1)(cid:9)(cid:1)(cid:10) (cid:7)(cid:4)(cid:6)(cid:1)(cid:2)(cid:4)(cid:2)(cid:2)(cid:2)(cid:10) (cid:1)(cid:9)(cid:9)(cid:4)(cid:11)(cid:2)(cid:1)(cid:4)(cid:1)(cid:9)(cid:2)(cid:10) (cid:1)(cid:4)(cid:7)(cid:8)(cid:8)(cid:4)(cid:8)(cid:8)(cid:8)(cid:10) (cid:1)(cid:7)(cid:4)(cid:9)(cid:9)(cid:5)(cid:4)(cid:9)(cid:11)(cid:12)(cid:10) b5;5.N0 #+$_<.0$*+ * (cid:1)(cid:2)(cid:3)(cid:4)(cid:2)(cid:5)(cid:6)(cid:4)(cid:7)(cid:8)(cid:9)(cid:10) ^+R,* ^+R,* ^+R++ ^+R,* ^+R&, ^+R#( ^+R#" ^+R#( ^+R*% ^+R&, ^+R++ ^+R#* *(!"+%$ (+$ ,!*++$ $'$$ ")$ !++%$ *!&#*$ &+*$ "!&*,$ !+*($ #!&%($ V)+(W ,"! #$ $'$$ ,!((*$ V***W (#!,,#$ Ordinary shares B1=6.51J 2C5102 0./6/;0 /C0 C7;=01 /7 P51/6N6P5/0 6. =696=0.=2 5.= /C0 P17N00=2 7. /C0 H6.=6.4

01$7:$5.=$587<./2$P56=$7.$/C0$2C5102$C0;=R$GC0$:<;;J$P56=$71=6.51J$2C5102$C590$.7$P51$95;<0R B. 5 2C7H 7: C5.=2 0901J 808>01 P1020./ 5/ 5 800/6.4 6. P0127. 71 >J P17DJ 2C5;; C590 7.0 97/0 5.= 5NKR Unquoted options and rights O/ #+ _<.0 *+ * /C010 H010 !*(+!+++ V*+ U *!,# !)))W 7P/67.2R a5NC 7P/67. 0./6/;02 /C0 C7;=01 /7 2<>2N16>0 :71 7.0 :<;;J P56= 2C510 6. /C0 N78P5.J 5/ /C0 0D01N620 P16N0 P01 2C510 5/ 5.J /680 :178 /C0 =5/0 7: 622<0 <./6; 0DP61J 7: /C0$7P/67.2$2<>]0N/$/7$95167<2$902/6.4$=5/02R O/ #+ _<.0 *+ * /C010 H010 .7 V*+ U !,++!+++W P01:7185.N0 164C/2 72N16>0 :71 7.0 :<;;J P56= 2C510 6. /C0 N78P5.J 5/ /C0 0D01N620 P16N0 7: ^.6; P01 2C510 5/ 5.J /680 :178 /C0 =5/0$/C0$P01:7185.N0$C<1=;0$C52$>00.$5NC6090=R ' TZ Limited Notes to the financial statements 30 June 2012 Note 27. Equity - contributed equity (continued) Capital risk management GC0 N7.27;6=5/0= 0./6/J 87.6/712 N5P6/5; 7. /C0 >5262 7: /C0 40516.4 15/67R GC62 15/67 62 N5;N<;5/0= 52 .0/ =0>/ =696=0= >J /7/5; N5P6/5;R 30/ =0>/ 62 N5;N<;5/0= 52 /7/5; >7117H6.42 V6.N;<=6.4 `/15=0 5.= 7/C01 P5J5>;02` 5.= `>7117H6.42` 52 2C7H. 6. /C0 2/5/080./ 7: :6.5.N65; P726/67.W ;022 `N52C 5.= N52C 0Q<695;0./2` 52 2C7H. 6. /C0 2/5/080./ 7: :6.5.N65; P726/67.R G7/5; N5P6/5; 62 N5;N<;5/0= 52 `/7/5; 0Q<6/J` 52 2C7H. 6. /C0 2/5/080./ 7: :6.5.N65; P726/67. V6.N;<=6.4 .7.' N7./17;;6.4$6./0102/W$P;<2$.0/$=0>/R GC0$40516.4$15/67$5/$/C0$10P71/6.4$=5/0$H52$52$:7;;7H2U I<110./$;65>6;6/602$'$/15=0$5.=$7/C01$P5J5>;02$V.7/0$ %W I<110./$;65>6;6/602$'$>7117H6.42$V.7/0$ &W 37.'N<110./$;65>6;6/602$'$>7117H6.42$V.7/0$**W G7/5;$>7117H6.42 I<110./$5220/2$'$N52C$5.=$N52C$0Q<695;0./2$V.7/0$&W 30/$=0>/ G7/5;$0Q<6/J G7/5;$N5P6/5; [0516.4$15/67 Consolidated 2012 $'000 2011 $'000 (!("*$ +!#& $ #!%*+$ "!)"#$ V"+,W &!%&"$ )!#"($ *(! &,$ ,!(%($ %*"$ +!*+)$ (!( +$ V ! ,)W ,!#),$ *!%&,$ *%! ,&$ %(Y (#Y $'$$ $'$$ $'$$ $'$$ +Y $'$$ $'$$ $'$$ $'$$ +Y GC0 40516.4 15/67 C52 6.N10520= 52 5 102<;/ 7: V5W /C0 6.N10520 6. /15=0 5.= 7/C01 ;65>6;6/602g V>W /C0 =0N10520 6. N52C 5/ >5.Kg VNW /C0 5NN1<5; 7: 6./0102/ 7. /C0 N7.901/6>;0 .7/02 :71 /C0 J051g 5.= V=W /C0 6.N10520 7: 5NN<8<;5/0= ;72202 5/ /C0$:6.5.N65;$J051$0.=R GC010$510$.7$0D/01.5;;J$68P720=$N5P6/5;$10Q<61080./2$/C0$N7.27;6=5/0=$0./6/J$C52$/7$N78P;J$H6/CR Note 28. Equity - reserves Z71064.$N<110.NJ$1020190 Consolidated 2012 $'000 2011 $'000 V)! *,W V)!""%W ?095;<5/67. 2<1P;<2 ^`+++ O956;5>;0' :71'25;0 ^`+++ MC510'>520= P5J80./2 ^`+++ Z71064. N<110.NJ ^`+++ G7/5; ^`+++ ^`+++ Consolidated b5;5.N0$5/$ $_<;J$*+ + Z71064.$N<110.NJ$/15.2;5/67. b5;5.N0$5/$#+$_<.0$*+ Z71064.$N<110.NJ$/15.2;5/67. b5;5.N0$5/$#+$_<.0$*+ * $'$$ $'$$ $'$$ $'$$ '# V*!"(,W V,!+,#W V)!""%W &%#$ V*!"(,W V,!+,#W V)!""%W &%#$ V)! *,W V)! *,W $'$$ $'$$ $'$$ $'$$ TZ Limited Notes to the financial statements 30 June 2012 Note 28. Equity - reserves (continued) Foreign currency reserve 2,' 1'+'14' /+ "+'( &* 1'!*6-/+' '8!,%-6' (/..'1'-!'+ %1/+/-6 .1*# &1%-+$%&/*- *. &,' ./-%-!/%$ +&%&'#'-&+ *. .*1'/6- *5'1%&/*-+ &* "+&1%$/%- (*$$%1+7 9& /+ %$+* "+'( &* 1'!*6-/+' 6%/-+ %-( $*++'+ *- ,'(6'+ *. &,' -'& /-4'+&#'-&+ /- .*1'/6-)*5'1%&/*-+7 Note 29. Equity - accumulated losses Consolidated 2012 $'000 2011 $'000 !!"#"$%&'()$*++'+)%&)&,')<'6/--/-6)*.)&,')./-%-!/%$)0'%1 =*++)%.&'1)/-!*#')&%8)'85'-+').*1)&,')0'%1 21%-+.'1).1*#)+,%1')<%+'()5%0#'-&+)1'+'14' !!"#"$%&'()$*++'+)%&)&,')'-()*.)&,')./-%-!/%$)0'%1 $'$$ $'$$ $'$$ V *"!##*W V *!#) W %)"$ V **!&( W V&!%&,W *!#+#$ $'$$ V ,+!"*,W V *"!##*W Note 30. Equity - dividends 2,'1')3'1')-*)(/4/('-(+)5%/()*1)('!$%1'()("1/-6)&,')!"11'-&)*1)51'4/*"+)./-%-!/%$)0'%17 Note 31. Performance rights Performance rights ;5'-/-6)<%$%-!' :8'1!/+'( I;726.4$>5;5.N0 Consolidated 2012 $'000 2011 $'000 !,++$ V !,++W *!&&+$ V !,&+W $'$$ $'$$ $'$$ !,++$ -. 5NN71=5.N0 H6/C 1027;520= 5;5.N0 7: !,++!+++ H52 2<>]0N/ /7 /C0 25/62:5N/67. 7: 5 X01:7185.N0 d<1=;0 5.= 0D01N625>;0 :178 5.= 6.N;<=6.4 _<;J *+ /7 #+ _<.0 *+ *R GC0 X01:7185.N0 d<1=;0 H52 80/ 5.= /C0 164C/2 H010 0D01N620=$6.$/C0$N<110./$J051R TZ Limited Notes to the financial statements 30 June 2012 Note 32. Financial instruments Financial risk management objectives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arket risk Foreign currency risk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rice risk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imited Notes to the financial statements 30 June 2012 Note 32. Financial instruments (continued) +)%&)&,')1'5*1&/-6)(%&'B)&,')!*-+*$/(%&'()'-&/&0),%()&,').*$$*3/-6)4%1/%<$')1%&')!%+,)%-()<*11*3/-6+)*"&+&%-(/-6@ Consolidated H%+,)%-()!%+,)'D"/4%$'-&+ O%-?)$*%-+ _'&)'85*+"1')&*)!%+,).$*3)/-&'1'+&)1%&')1/+? 2012 2011 Weighted average interest rate % I7VL) I7LZ) Weighted average interest rate % I7MY) Y7LZ) Balance $'000 WJX) AWYYC AYLC Balance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h`2B 2R =/#/&'( /+ 1'D"/1'( &* 61*++ "5 &,' /-&'1'+& 5%0#'-&+ +"!, &,%& h`2 1'!'/4'+ &,' +%#' %#*"-& *. /-&'1'+& &,%& 3*"$( ,%4' <''- 1'!'/4'( /. 3/&,,*$(/-6 &%8 3%+ -*& %55$/!%<$'7 Q"1&,'1#*1'B &,' P''( 51*4/('+ &,%& /- &,' '4'-& &,%& h`2 1'!'/4'+)%)<'-'./&B)/-)&,').*1#)*.)%)&%8)!1'(/&B)h`2)3/$$)1'/#<"1+')2R)=/#/&'().*1)&,/+)%#*"-&7 Note 36. Contingent liabilities 2,')!*-+*$/(%&'()'-&/&0)(*'+)-*&),%4')%-0)!*-&/-6'-&)$/% 1'5*1&7 ! TZ Limited Notes to the financial statements 30 June 2012 Note 38. Related party transactions (continued) Transactions with related parties 2,').*$$*3/-6)&1%-+%!&/*-+)*!!"11'()3/&,)1'$%&'()5%1&/'+@ S%0#'-&).*1)*&,'1)'85'-+'+@ !!*"-&/-6).''+)!,%16'()<0)i'$$*3)O1/!?)N*%() !!*"-&/-6) %-()d'%$&,)T%-%6'#'-&)S&0)=/#/&'(B)%)!*#5%-0)/-)3,/!,) T%1?)O*"1/+)/+)%)(/1'!&*17 N'-&)%-()+'14/!'()*../!')'85'-(/&"1')5%/()&*)F&%&')H%5/&%$) S1*5'1&0)S&0)=/#/&'(B)%)!*#5%-0)/-)3,/!,)T%1?)O*"1/+)/+)%) (/1'!&*17 P/1'!&*1+)%-();../!'1+)9-+"1%-!')S*$/!0)3%+)%11%-6'()<0) i'$$*3)O1/!?)N*%()d'%$&,)T%-%6'#'-&)S&0)=/#/&'() A.*1#'1$0)iON)^'-'1%$)9-+"1%-!')O1*?'1+)S&0)=/#/&'(CB)%) !*#5%-0)/-)3,/!,)T%1?)O*"1/+)/+)%)(/1'!&*17 2*&%$)<**?/-6).''+)5%/()&*)2,')F"1.)21%4'$)H*#5%-0) j*$(/-6+)S&0)=&(B)%)!*#5%-0)/-)3,/!,)T%1?)O*"1/+)/+)%-) %++*!/%&'7 (#/-/+&1%&/*-).''+)%-()+&*1%6')!*+&+)5%/()&*)iON) F'14/!'+)S&0)=&(B)%)!*#5%-0)/-)3,/!,)T%1?)O*"1/+)/+)%) (/1'!&*17 T%1?'&/-6)'85'-+'+)5%/()&*)i'$$*3)O1/!?)N*%()^1*"5)S&0) =/#/&'(B)%)!*#5%-0)/-)3,/!,)T%1?)O*"1/+)/+)%)(/1'!&*17 Consolidated 2012 $ 2011 $ I[YBXMV) XIMBYWW) MXMBMMM) MLVBXJ[) MJJ) VBZJJ) )G)) IYJ) XIBIVL) IWBYVJ) MLJBJJJ) MJJBJJJ) Receivable from and payable to related parties 2,').*$$*3/-6)<%$%-!'+)%1')*"&+&%-(/-6)%&)&,')1'5*1&/-6)(%&')/-)1'$%&/*-)&*)&1%-+%!&/*-+)3/&,)1'$%&'()5%1&/'+@ Consolidated 2012 $ 2011 $ ZMBIMZ) IYBM[I) MIBWYM) XVBM[I) IBWVY) MMBJJJ) )G)) )G)) H"11'-&)5%0%<$'+@ !!*"-&/-6).''+)5%0%<$')&*)i'$$*3)O1/!?)N*%() !!*"-&/-6) %-()d'%$&,)T%-%6'#'-&)S&0)=&(B)%)!*#5%-0)/-)3,/!,) T%1?)O*"1/+)/+)%)(/1'!&*17 N'-&B)+'14/!'()*../!')'85'-(/&"1')%-()1'#%/-/-6)1'-&%$) <*-()5%0%<$')&*)F&%&')H%5/&%$)S1*5'1&0)S&0)=/#/&'(B)%) !*#5%-0)/-)3,/!,)T%1?)O*"1/+)/+)%)(/1'!&*17 (#/-/+&1%&/*-).''+)%-()+&*1%6')!*+&+)5%0%<$')&*)iON) F'14/!'+)S&0)=&(B)%)!*#5%-0)/-)3,/!,)T%1?)O*"1/+)/+)%) (/1'!&*17 T%1?'&/-6)'85'-+'+)5%0%<$')&*)i'$$*3)O1/!?)N*%()^1*"5) S&0)=/#/&'(B)%)!*#5%-0)/-)3,/!,)T%1?)O*"1/+)/+)%)(/1'!&*17 Loans to/from related parties 2,'1')3'1')-*)$*%-+)&*)*1).1*#)1'$%&'()5%1&/'+)%&)&,')!"11'-&)%-()51'4/*"+)1'5*1&/-6)(%&'7 Terms and conditions $$)&1%-+%!&/*-+)3'1')#%(')*-)-*1#%$)!*##'1!/%$)&'1#+)%-()!*-(/&/*-+)%-()%&)#%1?'&)1%&'+7 !! TZ Limited Notes to the financial statements 30 June 2012 Note 39. Parent entity information F'&)*"&)<'$*3)/+)&,')+"55$'#'-&%10)/-.*1#%&/*-)%<*"&)&,')5%1'-&)'-&/&07 Statement of comprehensive income =*++)%.&'1)/-!*#')&%8 2*&%$)!*#51','-+/4')/-!*#' Statement of financial position 2*&%$)!"11'-&)%++'&+ 2*&%$)%++'&+ 2*&%$)!"11'-&)$/%2R9>CB i%&%+ *5'1%&/*-+B &,' 1'+"$&+ *. &,*+' *5'1%&/*-+B *1 &,' !*-+*$/(%&'( '-&/&0>+ +&%&' *. %..%/1+ /-)."&"1')./-%-!/%$)0'%1+7 !$ TZ Limited Notes to the financial statements 30 June 2012 Note 43. Reconciliation of loss after income tax to net cash used in operating activities =*++)%.&'1)/-!*#')&%8)'85'-+').*1)&,')0'%1 )G)) )G)) AMLBIYMC A[BV[XC Consolidated 2012 $'000 2011 $'000 (e"+&#'-&+).*1@ P'51'!/%&/*-)%-()%#*1&/+%&/*- F,%1'G<%+'()5%0#'-&+ 9-&'1'+&)%!!1"'()*-)!*-4'1&/<$')-*&'+ _'&).%/1)4%$"')$*++aA6%/-C)*.)('1/4%&/4'+ =*++)*-)+%$')*.)e*/-&)4'-&"1' =*++aA6%/-C)*-)('<&).*1)'D"/&0)+3%5 H,%-6')/-)*5'1%&/-6)%++'&+)%-()$/%P::S>C 3%+ %551*4'( <0 +,%1',*$('1+ %& LJJW --"%$ ^'-'1%$ T''&/-6 &,%& 3%+ ,'$( *- LY Q'<1"%10 LJMJ7 9& 6/4'+ (/1'!&*1+ %-( +'-/*1 '8'!"&/4'+ &,' *55*1&"-/&0 &* 5%1&/!/5%&' /- &,' 5$%-7 2,'1' 3'1' &,1'' &1%-!,'+ *. *5&/*-+ %-( &3* &1%-!,'+ *. 1/6,&+ 61%-&'( &* &,' (/1'!&*1+ /- 51/*1 0'%1+7 :%!, &1%-!,' *.)*5&/*-+),%()%)./8'()-"#<'1)61%-&'()3/&,)4'+&/-6)5'1/*(+).1*#)M)&*)I)0'%1+7 2,' 1/6,&+ 61%-&'( &* &,' (/1'!&*1+ 3'1' %& % c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aJ[GJ[aJ[)))))))LZaJ[aMM LXaMJaJ[))))))))))))LXaMJaMM LXaMJaJ[))))))))))))LXaMJaMM MZaJZaJW))))))))))))MZaJZaML LYaJLaMJ))))))))))))IJaJYaMY LYaJLaMJ))))))))))))IJaJYaMV LYaJLaMJ))))))))))))IJaJYaM[ :8'1!/+' 51/!' O%$%-!')%& &,')+&%1&)*. &,')0'%1 ^1%-&'( :8'1!/+'( :85/1'(a .*1.'/&'(a *&,'1 O%$%-!')%& &,')'-()*. &,')0'%1 \Y7JJ \L7ZJ \L7ZJ \L7ZJ \M7JJ \L7JJ \I7JJ MMYBYYY) [ZJBJJJ) MZJBJJJ) YZBJJJ) MBVZJBJJJ) MBVZJBJJJ) MBVZJBJJJ) YBXIMBYYY) )G)) )G)) )G)) )G)) )G)) )G)) )G)) )G)) )G)) )G)) )G)) )G)) )G)) )G)) )G)) )G)) AMMYBYYYC A[ZJBJJJC AMZJBJJJC AYZBJJJC )G)) )G)) )G)) AMBM[MBYYYC )G)) )G)) )G)) )G)) MBVZJBJJJ) MBVZJBJJJ) MBVZJBJJJ) ZBLZJBJJJ) "& TZ Limited Notes to the financial statements 30 June 2012 Note 45. Share-based payments (continued) 2011 ^1%-&)(%&'))))))))):85/10)(%&' JLaJVGJMaJ[)))))))IMaJZaMM JMaJ[GJ[aJ[)))))))LZaJ[aMM)g JMaJ[GMMaJ[)))))))MMaMMGMLaMM JMaJMaJ[))))))))))))IMaMLaMJ M[aJMaJ[))))))))))))M[aJMaMM M[aJMaJ[))))))))))))MWaJMaMM LJaJMaJ[))))))))))))LJaJMaMM J[aJLaJ[))))))))))))JVaJLaMM LXaMJaJ[))))))))))))LXaMJaMM)g LXaMJaJ[))))))))))))LXaMJaMM)g MZaJZaJW))))))))))))MZaJZaML)g LYaJLaMJ))))))))))))IJaJYaMY LYaJLaMJ))))))))))))IJaJYaMV LYaJLaMJ))))))))))))IJaJYaM[ JZaJIaMJ))))))))))))JZaJIaMM :8'1!/+' 51/!' 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LYaJLaMJ)))))))))))IJaJYaML \J7JJ 2011 ^1%-&)(%&'))))))))):85/10)(%&' :8'1!/+' 51/!' LYaJLaMJ)))))))))))IJaJYaML \J7JJ O%$%-!')%& &,')+&%1&)*. &,')0'%1 MBXJJBJJJ) MBXJJBJJJ) O%$%-!')%& &,')+&%1&)*. &,')0'%1 LB[[JBJJJ) LB[[JBJJJ) ^1%-&'( :8'1!/+'( :85/1'(a .*1.'/&'(a *&,'1 O%$%-!')%& &,')'-()*. &,')0'%1 )G)) )G)) AMBXJJBJJJC AMBXJJBJJJC )G)) )G)) )G)) )G)) ^1%-&'( :8'1!/+'( :85/1'(a .*1.'/&'(a *&,'1 O%$%-!')%& &,')'-()*. &,')0'%1 )G)) )G)) AMBX[JBJJJC AMBX[JBJJJC )G)) )G)) MBXJJBJJJ) MBXJJBJJJ) 2,' 3'/6,&'( %4'1%6' 1'#%/-/-6 !*-&1%!&"%$ $/.' *. 5'1.*1#%-!' 1/6,&+ *"&+&%-(/-6 %& &,' '-( *. &,' ./-%-!/%$ 0'%1 3%+)-/$)0'%1)ALJMM@)M)0'%1C7 "' TZ Limited Notes to the financial statements 30 June 2012 Note 45. Share-based payments (continued) 2,').*$$*3/-6)&%<$'),/6,$/6,&+)&,')+,%1'G<%+'()5%0#'-&)'85'-+')5'1)!%&'6*1/'+@ Share-based payment expense recognised during the financial year: ;5&/*-+)/++"'()"-('1)P/1'!&*1)%-():8'!"&/4'):D"/&0)S$%- N/6,&+)/++"'()"-('1)P/1'!&*1)%-():8'!"&/4'):D"/&0)S$%- Consolidated 2012 $'000 2011 $'000 )G)) )G)) VYW) )G)) VYW) MBXVY) [LV) LBIJI) "( TZ Limited Directors' declaration 9-)&,')(/1'!&*1+>)*5/-/*-@ (cid:1) (cid:1) (cid:1) (cid:1) &,' %&&%!,'( ./-%-!/%$ +&%&'#'-&+ %-( -*&'+ &,'1'&* !*#5$0 3/&, &,' H*15*1%&/*-+ !& LJJMB &,' !!*"-&/-6 F&%-(%1(+B)&,')H*15*1%&/*-+)N'6"$%&/*-+)LJJM)%-()*&,'1)#%-(%&*10)51*.'++/*-%$)1'5*1&/-6)1'D"/1'#'-&+f) &,' %&&%!,'( ./-%-!/%$ +&%&'#'-&+ %-( -*&'+ &,'1'&* !*#5$0 3/&, 9-&'1-%&/*-%$ Q/-%-!/%$ N'5*1&/-6 F&%-(%1(+ %+ /++"'( <0 &,' 9-&'1-%&/*-%$ !!*"-&/-6 F&%-(%1(+ O*%1( %+ ('+!1/<'( /- -*&' M &* &,' ./-%-!/%$ +&%&'#'-&+f &,' %&&%!,'( ./-%-!/%$ +&%&'#'-&+ %-( -*&'+ &,'1'&* 6/4' % &1"' %-( .%/1 4/'3 *. &,' !*-+*$/(%&'( '-&/&0>+ ./-%-!/%$)5*+/&/*-)%+)%&)IJ)K"-')LJML)%-()*.)/&+)5'1.*1#%-!').*1)&,')./-%-!/%$)0'%1)'-('()*-)&,%&)(%&'f)%-( &,'1' %1' 1'%+*-%<$' 61*"-(+ &* <'$/'4' &,%& &,' !*#5%-0 3/$$ <' %<$' &* 5%0 /&+ ('<&+ %+ %-( 3,'- &,'0 <'!*#')("')%-()5%0%<$'7 2,')(/1'!&*1+),%4')<''-)6/4'-)&,')('!$%1%&/*-+)1'D"/1'()<0)+'!&/*-)LWZ )*.)&,')H*15*1%&/*-+) !&)LJJM7 ) F/6-'()/-)%!!*1(%-!')3/&,)%)1'+*$"&/*-)*.)(/1'!&*1+)#%(')5"1+"%-&)&*)+'!&/*-)LWZAZC)*.)&,')H*15*1%&/*-+) !&)LJJM7 ) ;-)<',%$.)*.)&,')(/1'!&*1+ ) ) kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk T%1?)O*"1/+ P/1'!&*1 ) L[)F'5&'#<'1)LJML F0(-'0 kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk b'--'&,)2/-6 P/1'!&*1 ") TZ Limited Shareholder information 30 June 2012 2,')+,%1',*$('1)/-.*1#%&/*-)+'&)*"&)<'$*3)3%+)%55$/!%<$')%+)%&)Z)F'5&'#<'1)LJML7 Distribution of equitable securities -%$0+/+)*.)-"#<'1)*.)'D"/&%<$')+'!"1/&0),*$('1+)<0)+/c')*.),*$(/-6@ )))))))))))M)&*)))))MBJJJ ))))MBJJM)&*)))))ZBJJJ ))))ZBJJM)&*)))MJBJJJ ))MJBJJM)&*)MJJBJJJ MJJBJJM)%-()*4'1 j*$(/-6)$'++)&,%-)%)#%1?'&%<$')5%1!'$ Equity security holders Twenty largest quoted equity security holders 2,')-%#'+)*.)&,')&3'-&0)$%16'+&)+'!"1/&0),*$('1+)*.)D"*&'()'D"/&0)+'!"1/&/'+)%1')$/+&'()<'$*3@ Number of holders of ordinary shares [II) [[J) IJM) ZZX) MVZ) LBVXI) MBZ[V) P'"&+!,')O%-?) ^)=*-(*- _%&/*-%$)_*#/-''+)=/#/&'( P'"&+!,')O%-?) ^)=*-(*-)lh`2)Q"-()=S) aHm jFOH)H"+&*(0)_*#/-''+)A "+&1%$/%C)=/#/&'( _^S)9-4'+&#'-&+)A_*)LC)S&0)=/#/&'( F"1.$*(6')S&0)=&( T1)P%4/()Q1'('1/!?);%?$'0 T1)K*,-)T/!,%'$)O*"#%-)n)T+) #%-(%)=*"/+')T/&!,'$$ T%1?)='/6,)O*"1/+ T1)b'--'&,)2/-6 T1)S%&1/!?)H,'3 j%11*$(+)%&)2**1%?)S&0)=&( P'"&+!,')O%-?) ^)=*-(*-)lh"/-&'++'-!')Q"-()=S) aHm S'1+,/-6) "+&1%$/%)_*#/-''+)S&0)=&()l 16*-%"&) !!*"-&m T1):(3%1()F%8*-)N''4')n)T+)P'<

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