Document X71e0LDVXwmGj0KoaRr2MMw8R

r Annual Report for the year ended 31 March 1991 IX i a -t )* <m4 '+ * * + * * M rW f' tar Shares begin trading ex dividend Books close for final dividend Annual general meeting -- Final dividend paid ____ Last day for trading partly-paid shares Half year end. ~~ .. Last day for final instalment of $A150 a share to be paid for partly-paid ---- 'shares to become fully paid. Interest paid on SA4.00 y--____ convertible notes -- 4 November Interim dividend announced 21 November Shares begin trading ex dividend 25 November Half-yearly profit announced 27 November Books close for interim dividend 18 December Interim dividend paid. - Half-yearly results summary mailed-- 1992 28 February 31 March Conversion date for $A4.00 convertible notes Year end. Interest paid on $A4.00 convertible notes m m * t*. 3^=75% of asoets are in businesses supplying ^p-^boilding and construction ^- industries *. What we are .Where we are going lifts CSR.was founded in Sydney in 1855 as a sugar CSR is clearly focussed on the manvtfacture mdV..3g>^ g company and began manufacturing building-------marketing ofbuilding and construction matgriaig and in 1940. CSR was incorporated as a public company in 1887 and has made an operating profit" ^*i^dal3ividiabVerrvear since incon>oratioii.a....................................... --------- .. - . . ----------- -f - - .^-J^rTnatrnals businesses in Australia and overseas, and CSR is now one of the worid's largest budding and . --sugar fiusihessesln AustraUaTThese are businesses construction materials cbmpanies*and harsubstantiri !i^^weknow and undefs~tan3Cand where ounnanageitienf operations in Australia, Noth America, New Zealand ^^Slrills can add value and sustain growth in returns to~^ and South-East Asia. -------- - _ -- ^^^^-j^rshareholders over the longer term. refined sugar.and hasjnyestmcntsini>auxitt,alumina - ^That position will be maintained by bring jnnoyath aid aluminium production. " by differentiating our brands from those of ^ Building materials include plasterboard, insulation, bricks, pavers, rooftiles, clay pipjmd^oncrete^ Jlocks. ..... ' ' - -H-^cmnpetitors through quality products, superior ^lcustomer service and the initiative of our people. :In building and construction materials we will Construction materialsinclude aggregates, sand,' and geographic spread of end markets. , asphalt, concrete pipes ^We will maintain prudent financial poliriesand make ed Tim"b-e--r-p--r-odu&mblude sawn softwood timber, ~~ wood i n"T assets earn returns that place CSR amonglhe best performing industrial companies in Australia. .. -^feCSR's organisation centres on business unitsand Sugar operations include milling, refining, providing ^ encourages sound management ofeach business. marketing and related services to the Queensland The company has a simple, no-nonsense management sugar industry, ethanol production and shipping. 71 style that encourages and rewards employees who _ provide superior customer service and achieve CSR's sales exceed $A4J billion yearly. Total assets /."increased value for shareholders. -------- ; .are $A6.2 billion of which nearly a third are outside . Australia, mostly in the United States. CSR employs . CSR is responsive to the attitudes and expectations of_ 20 000 people worldwide at over 700 locations. . .. tire communities in which it operates and places strong ^emphasis on achieving a sustainable balance between development and protection of the environment. Directors' report Highlights Net profit before abnormal items was SA325.9 million, down 20%. Pre-tax operating profit of SA564.7 million was down 24%. __ The recommended final dividend is reduced from 24 cents to 16 cents a share, fully franked, bringing the full year dividend to 32 cents a share, fully franked, --compared to 40 cents last year. The final dividend will be paid on 7 August. Building and construction activity fell about 10% in Australia and 15% in the ~ United Stares. World sugar prices fell 20% and world aluminium prices fell 6%. CSR strengthened its competitive position through cost reductions and productivity improvements in all operations. Capital investment totalled $A453 million, down 70%. Investment was directed mainly atenhancing and expanding CSR's building and construction materials businesses in Australia and the United Stares. There were no large acquisitions. Divestment proceeds totalled SA341 million. Major divestments were: d this sale ofCSR's investments in Austral Brick and Redland Plasterboard the sale ofnon-strategic assets in the United States. CSR remains financially strong: n net borrowings were reduced by SA293 million gearing fell from 32.9% to 27.9% cash flow (funds from operations) was $A712 million interest was covered 4.6 times by earnings before interest and tax. CSR limited Directors' report Profit was the second highest on record Net profit before abnormal items Dividend CSR Financial summary Ytgmded 31 March <SA million unkti mdicedl Gross revenue - including sales made as agent `'Group revenue Trading revenue ' ** - Operating profit before interest, foreign exchange and income tax Net interest expense Net foreign exchange gain Income tax expense --------- --__ Minority interests' profit proportion Net profit before abnormal items Abnormal items Extraordinary items Operating profit after abnormal and extraordinary items Earnings pershare on issue at 31 March (cents) Jftddcihds per share (cents) ^ i on shareholders' funds at 31 March (%) ~ * ' at 31 March ' shareholders' funds at 31 March ^r^di^iifflrent creditors and borrowings at 31 March Cash flow (funds from operations) Gearing at 31 March (%) Total assets at 31 March Capital investment Divestments Net tangible assets (book value) per share at 31 March ($A) Net assets (book value) per share at 31 March (SA) mi 1990 5599.9 5664.7 4979.5 4892.3 4566.5 4516.1 671.3 793.7 123.7 - 60.0 5.7 190.2 289.9 31.5 42.6 325.9 (2.4) - 406.9 - 0.5 323.5 407.4 42.0 55.0 32.0 40.0 11.6 16.1 777.8 735.0 2797.8 2532.8 1219.2 1413.5 712.1 902.7 27.9 32.9 6220.2 6299.2 452.7 1508.1 340.8 272.1 3.11 2.89 3.60 3.45 * dunce -1 2 1 -15 -- - -34 -26 -20 - -21 -24 -20 - 6 10 -14 -21 - -1 -70 25 8 4 CSR Limited Directors* report Managing Director's statement CSR is a strong company with sound businesses. Costs are tightly controlled and marketing and production effectiveness have been improved. Last year was a struggle, especially the second haH, when markets were in recession and, in some cases, deep recession. Building and construction activity fell about 10% in Australia and 15% in the United States. World sugar prices fell 20% and world aluminium prices 6%. Profit was SA325.9 million. We would obviously have preferred to have done better. But, given the circumstances, we believe the result was satisfactory. The final dividend, if approved at the annual general meeting, will be 16 cents a share and fully franked for Australian taxation purposes. This will bring the full year dividend to 32 cents a share or $A247 million. Looking back we, and many others, underestimated the severity and length of the recession and were a little slow to fully adjust to it. On the other hand, the company has-been significantly strengthened by the hard times. CSR's general management team: Ian Burgess, BillBennett, Geoffrey Kells, Don Harden andKeith Barton. CSR is a strong company with first class assets spread mainly between Australis and North America. The company has a significant presence in nearly all markets in which it competes. CSR has excellent long-term quarry reserves, and sugar mills and aluminium investments which are among the most competitive in the world. CSR is financially sound, with strong cash flows and modest debt. Its technology is generally up to international best practice. The company's financial performance is subject to the cycles in building and construction activity in Australia and the United States and variations in world sugar and aluminium prices. There will be years when all are favourable and results for shareholders excellent, as occurred in the year ended March 1990. There will be other times when they vary at random. Sometimes, when all markets are depressed, as we are currently experiencing, results will be significantly lower. In addition, profits will generally be higher in CSR's September half year than the March half. The March half year is affected by the Christmas shut down of the building and construction industry in Australia and by winter weather that normally shuts down activity in parts of the United States over the period December to February. Rewards for shareholders through dividends are also likely to fluctuate with CSR's fortunes. Focus, or concentration of effort is of vital importance to companies such as CSR. We have worked hard at nanowing the focus of the activities the company manages to building and construction materials and sugar. Aluminium and related products are an investment in internationally competitive assets. This focus is not likely to change. Capital and management resources are being committed to strengthen all activities. The result will be progressively more competitive operations. In, say five years, we see the company having much the same focus although it will be larger and more competitive. It will probably have expanded its presence in other major world markets. CSR's building and construction materials businesses in Australia are now much stronger. Managers are working hard to make their businesses more efficient and more competitive. Much was achieved last year and more will be achieved this year. However, all our building and construction materials businesses in Australia and New Zealand were affected by the recession. CSR United Director*' report * spread nearly all ellent ind le most 'lows and to 3ject to the in ns in and id in the times nail wer. in CSR's e March own of stralia jwn period are also lance to iat pany als and n ets. d to g much more its ?sses in working ind more i more wilding ralia and our building and construction materials --^^rinesses. other than cement, earned smaller profits. 1 Markets are unlikely to improve much this year. 4 -- ^ ^ meantime, our people, from senior management m the shop floor, are improving the profitability of their businesses through productivity increases, ^tttelective expansion and a greater commitment to -VyJ-customer service. - - Oar businesses in the United States are very competitive. . --rThey have relatively large market shares in the areas " where they operate. Management is effective and . ..efficient - Our US businesses will improve steadily, but returns - will vary with the building and construction cycle. We are adding to them as opportunities arise, to make - '"J-'ajh**" stronger. Recent acquisitions have improved our * ^ZHepinpetitive position in several areas. __ We do not view the US operations - and must not - ..view them - in a short term context There is need for : ---^massive infrastructure replacement and building in _~^the United States. As this proceeds, CSR will be part T"-*-ofit. The precise timetable for this rebuilding is not I _ known. -The timber operations in Australia ware a particular problem last year. They were hard hit by an -^abnormally large market downturn, by government royalties on plantation softwood that are high by ^"international standards and by imports. We cannot hold out the prospect of good results from these assets this year, but we can expect that much better results will be achieved in the longer term. Much has been done to improve their competitiveness in the i - --- abnormal circumstances ofdeep recession. CSR's sugar businesses are the origin of the company and have weathered many changes over the past 138 years. Our raw sugar mills crush about 35% of the sugarcane in Queensland. They are low cost, world-scale mills and have significant scope for further growth. Arrangements have been negotiated with sugarcane growers and employees to introduce continuous?crushing, which will enable a significant increasefafproduction, with minimal capital mvestratS&.C We are adopting a cautious approach to rationalising our refineries. The replacement of the embargo on sugar imports into Australia with a tariff, in June 1989, gave the New South Wales raw sugar industry a significant economic incentive and competitive advantage to convert to the production of refined sugar for the domestic market. As a result we have lost about 200 000 tonnes, or 25%, of market share. However, tariff levels are being progressively reduced and are presently the subject of an Industry Commission inquiry. Our mills and refineries continue to improve their competitiveness, but profitability is largely determined by world raw and refined sugar prices and exchange rates; factors outside our control. Our aluminium interests are low cost and internationally competitive. Expansion of production capacity at the Gove bauxite/alumina project and construction of the third potline at the Tomago aluminium smelter will further improve competitiveness. Lower world aluminium and alumina prices reduced profits last year and will have an even greater impact this year. But the production expansion and productivity improvements at Gove and Tomago will ensure both investments continue to produce good returns for CSR over the longer term. The outlook for this year is uncertain and does not give causa for optimism. Quite simply, we do not know what the state of the Australian and United States economies will be. It is reasonable to expect a modest improvement in the second half of 1991 if lower housing interest rates lead to increased demand for building and construction materials. Sugar and aluminium prices are equally hard to predict, although we are fairly pessimistic in the short jerm. Our sugar and aluminium businesses contributed SA120 million of profit after tax last year. If prices remain at the levels that have prevailed in the first two months of this year, their after tax contribution will be about $A50 million less than last year. This year is, therefore, likely to be particularly difficult. Nevertheless, our situation is far from unique and we are doing all possible to improve productivity. Productivity is, of course, a complex matter in an industrial company. The term embraces costs of all kinds, quality in all its dimensions, as well as efficiency and effectiveness measured on a scale of time. Improving the productivity of a company the size of CSR is a large task. It involves considerable effort and is sometimes painful. But it must be done. Fortunately, CSR has the right people with the drive to achieve the goal. As a result, CSR is in a sound position to cope with the current recession and will be extremely strong in its aftermath. Ian Burgess Managing Director CSR limited Directors'report Operations summary Profit Significant events Building and construction materials Profit fell 13% to SA144.9 million. Returns from cement investments increased due, mainly, to one-off factors. All other businesses made lower profits. Building and construction activity in Australia fell about 10%. $A132 million was invested in expanding and improving Australian quarrying and concrete operations. A glasswool insulation plant and a clay roof tile plant began production in Australia. CSR sold its 50% investment in Austral Brick and its 49% investment in Redland Plasterboard. Cost reductions and productivity improvements were achieved by all businesses. Construction materials USA Profit rose 33% to SA35.5 million, The increase reflected the first full year's contribution from the ARC America subsidiaries. All businesses were profitable. Profit from Rinker Materials fell. Construction activity in the United States fell about 15%. SA100 million was invested in expanding and improving quarrying and concrete operations. Divestment of surplus land and non-strategic assets yielded SA5Q million. All businesses reduced costs and improved productivity; employee numbers were reduced by over 1000. Timber products A loss of SA5.5 million was incurred compared with a profit of SA37.1 million the previous year. Formica New Zealand and radiata pine plantation operations made small profits. All other businesses incurred small losses. The market for timber products in Australia fell 20% and imports increased. 14 wood panel distribution centres were opened or acquired, improving customer service. A moulded flbreboard door panel plant and a components factory started production in Queensland. Productivity was improved by reducing factory costs, overheads and stocks, and rationalising production capacity. Export began of 250 000 tonnes a year of plantation pine chips. I I ; j > Sugar Profit fell 16% to SA86.1 million. Milling profits were reduced by lower world sugar pricesand a smaller sugarcane crop. Australian refining profits were afftctedbythe first full year's , cttopetjtftm-frwn Manildra |gggg, Harwoc^Sugars. New Zealand refining operations improved profits. The 1990 sugarcane crop was lower due to poor weather, and world raw sugar prices fell 20%. Invicta Mill successfully introduced continuous sugarcane crushing. Refining operations improved productivity by increasing automation and adopting more efficient wort; practices. The sugar refinery in Adelaide was closed. A plan was released for the long-term redevelopment of CSR's land on Pyrmont Peninsula, Sydney. Aluminium Profit fell 27% to SA34.1 million. The fall mainly resulted from lower aluminium and alumina prices and higher production costs. World aluminium prices fell 6%. A new 20-year bauxite export agreement was negotiated with the Commonwealth and Northern Territory governments. A long-term contract was concluded to supply 100 000 tonnes a year of alumina to Canada. Expansion of Gove alumina refinery progressed. Construction of Tomago Aluminium's third potline began. 6 CSR Limited Directors'report : fel1 abou' improving e plant and its 497 iwere Bnmkn product range, especially ,--fconcrete products and pUsteitoard. Make add-on acquisitions in j -^Banying and concrete. 1 Expand cement production ; _ pcity and distribution capability. ' Continue to improve productivity j lByf customer service. Demand for building and construction materials is likely to remain at current levels for most of 1991. A modest recovery in home building is expected by early 1992, with a return to normal levels in 1993. Acquisitions and new plants should add to revenue and profits. Plasterboard sales and profits will be affected by a new competitor. bout 157c. mproving >sets yielded Continue to improve all aspects of 4he businesses, by streamlining organisation, upgrading production j^aaethodSi reducing costs and Juctivitv: -.--- /Acquire high-yielding add-on ! -lousinesses. ^rEErDivest surplus and 4 "funder-performingassets. The US construction industry is expected to remain depressed in 1991. Demand for construction materials should improve by early 1992. The longer-term outlook is favourable because of the need for large expenditure on infrastructure. Acquisitions and new plants and quarries should add to revenue and profits. 20% and or mponents costs, on capacity, don pine "Continue to broaden product range, i particularly of high value-added I products. Reduce costs and increase j ^productivity at all operations, t "nationalise production capacity. ,__Persuade governments to reduce ' log royalties to international levels. Demand for timber and timber products is likely to remain at current levels for most of 1991. Increased productivity, reduced costs and increased sales from improved customer service should return CSR's timber products operations to profitability this year. weather. sugarcane ;rea$ing tctices. nentof rotiated le began. Implement continuous crushing of sugarcane when crops increase. Continue to reduce costs and improve customer service to meet competition in the refined sugar market. Lower world sugar prices and weather-affected crops are expected to reduce this year's milling profits. Longer term, CSR's mills are well placed to benefit from planned increases in Queensland sugar production. CSR's share of the refined sugar market should remain around current levels. Complete expansion of capacity at Gove and Tomago. Continue improving productivity and lowering costs at Gove and Tomago. Increase sales of high value-added aluminium products. World aluminium prices are expected to remain depressed this year. Gove Aluminium's profits will also reflect a reduced share of bauxite exports and higher aluminium and alumina production costs. The longer-term outlook for aluminium is favourable because of its strength, lightness and recyclability. CSR limited Directors'report Building and construction materials CSR's building and construction materials businesses were affected by the recession, but will benefit when demand improves. Profit foil 13% to SA144.9 million. Revenue was 7% lower. Returns from CSR's cement investments increased. Profits from all other businesses fell. Profits were down because of the impact of the recession on the Australian building and construction industry. --=-------- CSR is continuing to strengthen its competitive position by tightly controlling manufacturing costs, reducing overheads, maintaining awareness of customer needs and by making low-risk additions to its existing businesses. The Readymix Group strengthened its competitive position by investing SA132 million in expanding and improving operations. The group extended its market coverage throughout eastern Australia. Major growth initiatives included the opening of a large quarry near Melbourne, acquisition of two Sydney pre-mixed concrete companies and acquisition of quarrying and sand operations in Queensland. An asphalt plant was opened in Melbourne and approval was gained for the development of a large quarry south of Sydney. Profit fell and revenue declined despite growth by acquisition during the year. Market shares were . maintained despite strong competition. Australian house building and commercial construction fell 14% as a result of high interest rates during the first half of the year and reduced economic activity. Civil construction rose 4% because of continued high levels ofroad and highway building. Demand for most of CSR's building and construction materials was relatively steady in New South Wales and Queensland and much weaker in Victoria and Western Australia. AkcBrennan; Lindsay Thomas, DirectorLendLease Corporation; andBrent Baker. Civil A Civic, a LendLease subsidiary, is a major Australian construction company end a large customerfor CSRpre-mixed concrete andplasterboard. Sales volumes for most products declined from the -record levels in the previous year. The fall was most severe for pre-mixed concrete resulting from the decline in the commercial construction and housing sectors of the market Demand for civil engineering products was marginally higher than in the previous year. Operational efficiency continued to improve. Overhead costs, working capital and overtime were reduced. A number of quarries, pre-mixed concrete plants and concrete products plants were closed to match production capacity to the reduced demand. Construction of a concrete pipe factory in Victoria began in August 1990. Advanced technology developed by the group will reduce production costs and improve product quality. The factory will start supplying the market in late 1991. The Humes concrete pipe business in Fiji was sold. The Readymix Group is successfully applying the principles of Total Quality Management in all businesses. Attention was focussed at all levels on the importance ofcontinuous improvement in customer service and in methods of production. Dividends from Australian Cement Holdings {50% CSR) increased 133% to SA17.0 million. The increase resulted from the sale of surplus assets, the payment of previous years' dividends and the first full year's contribution from Goliath Cement (100% Australian Cement). Overall, revenue fell because of weak demand in Victoria. This was partly offset by increases in market share in New South Wales and South Australia. s CSR limited Director*' report CSR itive ig costs, sof ditions to ive position 'proving overage ] initiatives mixed Tying and plant was ned for the ney. wthby vere rom the vas most nthe housing ineering previous ne were oncrete >sed to .-mand. ictoria y on costs I) start es 7. Australian Cement is improving its competitive ^ESSSon. Goliath Cement's production is being jocreased[.at a cost of $A83 million, from 570 000 to 930000 tonnes a year. Australian dwelling completions ThouMnd 150 Australian non-dwelling construction* Distribution capability is being increased. is 000 tonne capacity bulk cement ship is to be 1 Additional cement distribution facilities are ' ifeteing established in Sydney, Newcastle and Adelaide, ^^iHowtng much greater access to markets and ~ ^froviding increased flexibility and lower distribution "Costs. -- 120 Australian Cement acquired the outstanding 50% of Cement Carters, Victoria, and increased its - --shareholding in Melcann, Australia's largest "^^stributor of bagged cement, to 50.3%. rboard profits and revenue were'lower in a weaker at CSR Gyprock's profitability was affected by fan in Australian home building and commercial tion. Market share was maintained, but sales lurries"arid margins fell _ atiw'group reduced overhead costs. Improvements in | plasterboard production technology continued. |~==Cost savings will be achieved from new waste j- recycling at the Sydney plant. VM1t7WMaOMJlMM (9 CanraftilbuMing wtd ewi cwwurtcn in cmaffi MMflS pricn. Sales of CSR Hebei's (86.1% CSR) autoclaved aerated concrete blocks and reinforced panels, introduced to the Australian market in March 1990, grew steadily despite the depressed market An expected small loss was incurred. The business should operate profitably this year. ITM-A third plasterboard manufacturer is expected to start j~"^rproduction in Australia in September 1991. ,-<-CSR's market share is expected to decline. CSR's North American plasterboard accessories --businesses improved their operational efficiency and intensified their marketing efforts. Profitability of the " Canadian business rose, as did the US business despite a depressed market. TieReadymix Croup's large, new, Oaklands Junction Quarry in Melbourne supplies high quality aggregate to the construction industry in Victoria. Russel Wilson andDavidJohnson as thefinal screening house. ng the J1 els on the jstomer f o CSR) resulted of aar's istralian aak V as and CSRLimited Directors'report 9 Building and construction materials (continued) CSR's 49% interest in the European plasterboard joint venture was sold in September 1990 for SA113.8 million, incurring an abnormal loss of SA36.0 million. The sale avoided further losses in weakening markets already severely affected by over capacity and price discounting. Sales of clay roof tiles were maintained at last year's level. Sales of concrete roof tiles fell, in line with the housing industry downturn. Monier Roofing's (51 % CSR) profits were lower, particularly in Victoria and Western Australia. Margins improved for clay roof tiles but were lower for concrete roof tiles. The company reduced production and overhead costs in line with falling demand. Plants were upgraded and marketing efforts intensified. Monier acquired the Summerland Roof Tile distribution business in northern New South Wales. J A new clay roof tile factory, near Melbourne, started. production. Its range of high quality tiles gained ready acceptance in the market. Profits from the PGH brick business (51% CSR) fell. Revenue declined because of reduced house building and margins were lower. Improved production technology at several plants lowered unit costs. A brick plant in South Australia was closed and production transferred to another plant. Profits from the New Zealand brick and tile business were similar to the previous year despite reduced housing construction. CSR's 50% interest in Austral Brick was sold in September 1990 for $A 142.2 million. Loans from CSR to Austral of $A19 million were also repaid. The sale yielded an abnormal profit of SA36.4 million aftertax. Bradford Insulation rationalised production. `Revenue in Australia was lower and profits fell. Reduced demand in industrial and commercial .markets resulted in a marginal fall in sales of all .products. All factories achieved cost reductions. A $A69 million glasswool insulation plant near Sydney started production in October 1990. The increased range of high quality products from the factory has been well accepted in the market. As planned, the older glasswool insulation plants in Sydney and Melbourne were closed. 10 CSR Limited Directors'report ilding rrom imilar n m id. million !1 om the us i F CSR The Malaysian rockwool business (70% CSR) increased profitability. Improved contributions came from all market segments and the outlook is good. The Canadian rockwool insulation business again incurred a loss, but there was an improvement following cost reductions, productivity improvements and increased sales. CSR increased its shareholding in the business from 70% to 100%. There will be further cost reductions and productivity improvements this year. Outlook The Australian economy is expected to come out of recession in late 1991 or early 1992 and this should lead to an increase in house building. A recovery in commercial construction is not expected until excess office space and hotel accommodation are absorbed over the next two or three years. Civil construction should continue to grow modestly, underpinned by increased expenditure on infrastructure. GeoffSquires: Jim Masterton. Managing Director Masterton Homes: Stan Droder; and Peter Bowen. CSR rooftiles. insulation, bricks and pavers are used extensively by Masterton Homes, a major home builder in New South Wales. GeoffSquirts, BEc, MBA, age 42, General Manager Monier - Roofing Lid (31% CSR). joined Monier Ltd in 1970 nd the CSR Group in 1989. Stan Droder, FCA, age 54, General Manage Bradford Insulation Group, joined CSR in 1963. "T5rPer Bowen, BEngTPhD, age 46, General Manager PGH Ltd _ 151*.CSR),joined CSR in 1962._________________ Six-year performance Yearended 31 March (SA million unless indicated) mi 1990 1989 1968 1967 1986 Trading revenue 1753 1878 1247 954 646 Profit before interest. foreign exchange, tax 2934 360.1 244.6 156.9 101.0 Gross margin (%) 16.7 194 19.6 16.4 15.6 Net profit before abnormal items 1444 165.8 1394 77.6 494 Shareholders' funds at 31 March 931 890 800 604 243 Return on shareholders'funds (%) 154 18.6 174 12.8 204 Funds employed at 31 March 1879 1963 1626 897 425 Total assets at 31 March 2159 2261 1884 995 528 Return on assets (%) 6.7 73 7.4 7.8 9.4 Capital investment 2244 458.1 672.9 403.8 87.4 Depreciation 864 77.6 46.4 32.8 29.4 643 93.1 144 543 201 27.0 380 466 11.6 53.1 28.1 Business profile Year ended 31 March - - : mi 1990 -Saks by end market (SA million) dwellings _ tmi construction : ^Commercial buildings Other _^ -ys-'! T~ ,| 749-"ir777.:".';----- -- --------- 448" "^544 - 30 1753 ~^TJ878_____ Plants at 31 March - Quarries and sand*b ""Pre-mixed concrete* Concrete productsc -Cementd Asphalt ^Plasterboard and accessories 'Autoclaved aerated concrete1 ^Bricks, payers and clay pipes1 ..Rooftiles1. fSnsulation* .... --|3i--------- _ii4 232 31 -4 22 234 46 24 Reserves proven and probable (Mt) - Hard rock -------------- Sand Sand and grave] Gypsumd 196 81 ' 380 "90 M""77 300 '`Dividends received (SA million) Australian Cement Holdings Pty Ltd4 Other --17.0-------- -~73 74 14.4 244 21.7 Employees at 31 March 8757 / 9421 CSK Groat uadesmta in Auwalia and other coumrie* include ABM.Atodec. Anted Aqoaehek. Aquastop. Aquatex. Aquatbene. Arch Device. Atoete. Aneaocbecfc. Atteaaiiser, Beede*. Bcbo. Bildaboard 8Iack*eal MSB. Bradcorc. Bradfilm. Bntdflex. Bradfod Bradford Baus. Bradseal. Bricktnaken. Cokirtooe. Cnfutooe, Cri*.Ductel. Energia*, Eserok. Eoertek, Exaeto 8oard Exvacia-Be*. Fabriflex. Ftshiomooe. Ftbretex, Fibrcuoc. FVxiUi.Flexmtt, Flenkin. Froco. Fresh. Fyrcheck.Goidbood, Growoot, Gypeove.Cyprock. Handitube. Hett-a-wnp. Hume. Humeeore, Homes. Humes Dwattncr. HumesPtaRiltne, Homespun. HumeLie, Insulbatt. Insulfotl. Iwultile. lmultooe, Insutwooi. Isodec. bealeeve. Kotdboard Kopex, UnksFab. Unacoustic Lodift, Maritime. Microfume, Mini Crete. Mini Mix. Monier, MuRitel. Papenooe. PGH. PGH Slimbriek. Potyfoat,Quietel. Readybinder, Readyflow, Readyfoam. Readymix. Readypave, Reliance. Rearnag. Rip. RMC, Rokard RoUax. ShaftwalL Sonodec. SpedteL Styleplai, Superior, Supcmpray. SupertH, Sysco. Tberaadad TbennauL Thennobar. Tbermofitai, TbermotedThernsoknft. TbermopUtt, Tbensoetop, Themo-sud, Thermotuff. Tuff-skin.Ultratei. Unicuhen. Vapour Foil, VentOex, Weapon. Wempave. Wtrispcnona. Zacuba.* i * * a tadudes Penrith Lakes Development Corp(40% CSR) uad and grave] deposit in Sydney, b Excludes mobile plants not in use. c Includes threeconcrete block factories (50% CSR). d 50% CSR. c Indudes piems in UK.Sweden. France, Norwayand Netherlands; whte were sold f- 86.1% CSR. g 13 factories in Australia and ooe inNewZealand (all 51% CSR). h Includes six factories in Australia (50% CSR); wfaicb were sold i 51% CSR. j Includes ooe factory io Malaysia (70% CSR). _______________________________ Ml million tonnes. CSRUmitad Directors'report 1 Construction materials USA US operations were affected by reduced construction activity, particularly in Florida. Corrective action strengthened the group. Profit rose 33% to SA35.5 million. CSR America's (100% CSR) revenue increased 52% to $A947 million, reflecting the first full year's contribution from the ARC America subsidiaries. All businesses made profits, but those of Rinker Materials fell. Divestment of surplus land and non-strategic operations yielded SA49.7 million. However, because of the depressed state of the real estate market, sales of surplus land were below expectations. US construction activity declined, particularly in the second half of the year as the recession deepened. The value of residential building fell 21%, commercial (non-residendal) building fell 14% and civil (non-building) construction fell 1%. Most of CSR America's markets experienced lower levels of activity, particularly Florida, the company's largest market. Markets in Texas continued to recover Three ofCSR America's senior managers: Peter James, David Clarke and GeoffHarris. Bs,'Dip'Ed,a$e44, ftet&fit and Cliie^ExecotiveOfficier J JuftfijHjipnrfign,joined'the.1CSttptguJSi 1969.' from a very low level while those in the Midwest states were unchanged. Markets in Southern California and Nevada deteriorated rapidly in the second half of the year. Major cost reductions were possible. Employee numbers were reduced by over 1000, mostly in Rinker Materials. Productivity was increased in the ARC America subsidiaries by upgrading equipment, restructuring organisation and improving management methods. The group invested $A38 million in add-on acquisitions, widening geographic and product spread. A 25% fall in Florida's construction activity lowered Rinker Materials' revenue and profits. Previous overbuilding and a credit squeeze which started early last year, dramatically slowed building construction. A funding crisis in the Florida Department of Transport substantially reduced expenditure on roads and bridges and it was not until January 1991 that a new petrol tax came into effect to relieve the situation. Sales of all products fell, especially concrete blocks and pre-mixed concrete. Despite difficult trading conditions, prices and market shares were generally maintained. Margins suffered with the reduced volumes. Housing starts in Florida fell 22%. Expenditure on commercial building fell 21% and expenditure on civil construction, including roads and bridges, fell 38%. A number of actions were taken to improve profitability. Plants and districts were combined into larger business units. Plants were automated and computerised management systems introduced. Overhead staffing was reduced by about 50%. Employee numbers in Rinker Materials were reduced by 716 (27%). Transport costs were reduced. Rinker now carries 50% of its cement sales in its own fleet of 45 tankers and trucks, and more than 90% of its aggregate requirements. Rinker expanded into the large Tampa market in south-west Florida with the acquisition of three pre-mixed concrete plants and a block plant. These will soon be followed by a further four pre-mixed concrete plants and another block plant The plants will be supplied with Rinker's aggregates, giving the company a strong position in this important market A large sand quany, Rinker's first in Florida, was acquired near Orlando. It has substantial reserves and will supply about 60% of Rinker's needs. Ice, DipEng, age 47, Erwideni and OUefEaecttive ^ kerMaterial*Cofporadon and Chairman Sombra Cocstny.,j<>med the CSR Group in I966.-.-,r.g^^^S^ gpSwffHinfk age43, &eskfcaand.ChiefExecative"Oftor'-", American Aggregates Corpocilidii.jouiedthe'CSR Groupin 1963. ~ 12 CSR United Directors'report CSR Southern Aggregates' business in Georgia and South bought west of Cincinnati. Acquisition of additional Carolina was steady. The recession had little impact on quarries and sand and gravel plants is planned. the business and sales volumes were similar to the previous year. A concrete block plant began Associated Sand & Gravel's profit and revenue were production and satisfactory sales in this new market satisfactory, despite abnormal wet weather in the were achieved. Productivity improved with a 10% north-west of Washington state. The state economy reduction in employee numbers. continues to be one of the strongest in the United States. Wet weather reduced demand for some it. American Aggregates' margins were increased and profits products, but the strong local economy maintained exceeded expectations. The good performance demand for other products. resulted because the company operates in regions of Associated Sand & Gravel strengthened its the United States that have been less harmed by the recession. American Aggregates' concentration on competitive position by building a gravel crushing plant and a pre-mixed concrete plant at Arlington. iker the commercial building and civil construction markets also contributed to its good performance. It also acquired more concrete trucks. The company is increasing production capacity and improving Productivity improvements and cost reductions were efficiency by installing computerised systems for mg achieved. Non-strategic assets were sold, the central batching and despatching concrete. . w workshop in Ohio was closed, the former head office in Greenville was sold, employee numbers were reduced, plant and equipment were upgraded and the organisation was restructured. A concrete pipe plant at Portland, Oregon, was transferred from Hydro Conduit to Associated Sand & Gravel. Production and marketing strategies will be combined with those of the existing pipe plant in .$ Average unit cost of production was reduced by 16%. Washington. Both plants are being upgraded. Mild winter weather allowed greater construction Associated Sand & Gravel successfully tendered for y activity, increasing demand for American the supply of a large quantity of pre-mixed concrete Aggregates' limestone, sand and gravel for the Boeing Company's expansion in Everett Since the end of last year, American Aggregates' this year. competitive position in the important Columbus market has improved with the acquisition of a large limestone quarry. A sand and gravel quarry was Negotiations to secure additional gravel reserves are progressing. CSR Limited Director'report 13 Construction materials USA (continued) WMK Transit Mix was affected by a severe fall in construction in las Vegas. Hotel and casino construction declined sharply, although the level of civil construction was similar to the previous year. Intense competition reduced sales volumes and margins for all products, particularly pre-mixed concrete. A small profit was earned. To improve market cover, WMK built a pre-mixed concrete plant and an aggregate crushing plant in Las Vegas and expanded its truck fleet The company replaced or upgraded its three concrete block machines in Las Vegas and improved productivity and product quality at its gravel crushing plants in Las Vegas and Bullhead City, Arizona. A lightweight aggregate crushing plant is being commissioned in Las Vegas. WMK moved its headquarters to better located premises and the former site is being sold. Hydro Conduit's revenue and profits were affected by reduced construction activity in most markets. Demand for concrete pipes fell for the second successive year with total sales down 10%.-The worst affected regions for Hydro Conduit were Florida and Washington DC/Baitimore. Market shares were maintained although margins deteriorated because of severe competition, particularly in Florida and parts of Texas. Production of concrete pipes fell 9%. But production of pre-stressed concrete products rose 28%. Hydro Conduit expects lower levels of production this year. Additions to Hydro Conduit's manufacturing capacity enhanced its competitive position and market coverage. This included four pipe and pre-cast concrete product plants in the New England region and a pipe plant in New Mexico. Construction began 14 CSR Limited Director*' report by :nand evear regi>ons on re fTexas. uction ydro syear. apacity gion began US dwelling completions US commercial building* US civil construction* 17 M 19 K) SI YwrtnMSI 0cMr te1rh7 MrtSIIOt KMM19r 90 91 tocttwtm 1117 ?**. -- *tacsett*nt19t7pncn. CSR on a pre-stressed concrete products plant in Denver, - - ^Sbc-year paiformance Colorado. Two pipe plants are being built, one at an American Aggregates' quarry in Indianapolis, -tfir'taxcoded31 Much mtUksualeaifidieaicd) -J -.1990___ 1989 . 1988 - 1987 1986 Indiana, and the other in San Diego, California, -An unprofitable pipe plant was sold, and another closed. Other action by Hydro Conduit to improve .---T-^TiSding revenue ------------------947-- 621--450-54 -- 6 ^Profit before interest, - foreign exchange, tax ------- -llD SO. i92~"23 -_____- ^Gross margin (%) 1L7 8.7 119 _4J -- - -- sUet profit before abnormal items 3&5 26.7- 26.6 111 - Shareholders'funds at 31 March * 961 923 388 95 20 - - profitability included simplifying the organisational -=gOfturo on shareholders' funds 2.9^"~65~23----------- structure, rationalising engineering services and . improving concrete technology. employed at 31 March --1612'1668 695 117 38 - __l(gTA.i assets at 31 March .^=^1739.1818 . 757^. 126- 41 Retum on assets (%) --- 15"-3'j^-^1.7 ---------------- - =---Capital investment --"-- 993 877.9 684.8 81J 36.4 Outlook . ____ ___ __gDepredation ______ __6&8 36.4 _ 263 -51-- 2.0 - - Total US construction activity is forecast to fall 7% in 1991, with a gradual recovery in the second half of " the year. Residential building is expected to fall 12%, ^commercial building 4% and civil construction by2%. Total construction activity in Florida is expected to decline 4% in 1991. Housing starts should be similar to last year and commercial building is expected to be 20% lower because ofoverbuilding and continued funding problems. Civil construction should increase by 10% as a-result of improved funding from a new petrol tax. / *$ Z * / Midwest rpagk|ts &re expected to remain at last year's levels. Mai^pip;Washington state should continue to be strong and Nevada is expected to recover. Demand for construction materials in the mid-Atlantic states and Southern California is expected to weaken. hi the longer term, demand for construction materials will benefit from an underlying need for large expenditure on US infrastructure. ^Business profile SXSuftde43t Much W ~aks by end market ($A miHi<wy------- ----s***u*~rc*+- - Civil construction " --- --357 . .. dwellings . ^Commercial buildings _ - 323. . 2*3 = 553 252 m rPhnU at 31 March _Quames and sand SPre-mixed concrete gCoscreteblocks . 61 **"i"66 ' T'...... ITS _______ 72 ------*---1-^1^70 ^Pre-stressed concrete products 4 ^Cement _ ______________ - 1 SAsphaft ________ ^ ~ 8 Asphalt recycling :1 Slag --- 2- 4 1 -ts--*2 Reserve* proven and probable (Mt) Ltmestone/hard rock =5and and gravel jSHi Sand . .. 1119 * 1142 . 484 500 32 .---.1 13 ^Employees at 31 March aO&oa toancs. -------4794 5718 CSR limited Directors'report 15 Timber products After major restructuring and productivity improvements, the timber products businesses should return to profitability this year. Timber products businesses incurred e loss of SA5.5 million, compered with a SA37.1 million profit the previous year. Revenue fell 12%. Reduced demand from the housing and furniture industries, increased timber imports, one-off retrenchment costs and higher finance charges contributed to the disappointing result A thorough review of operations, overhead costs, marketing strategies and organisational structure revealed opportunities for improved performance. Action taken is already producing positive results and CSR's timber products businesses are expected to return to profitability this year. Wood Panels Group incurred a loss for the full year. A small profit was earned in the second half. Revenue and margins fell. Australian operations incurred a loss because demand for all products fell, except for John Purdie-Smith (left) andHenry Pens (right) with Clive McKechnie, GeneralManager ofBums Philp's Builders Merchants Group, a major distributor ofCSR's timber products. fibronTM medium density fibreboard. Formica New Zealand's profitability was maintained despite reduced demand. Reduced demand in die housing and furniture markets resulted in lower sales of flooring and surface-finished particleboard. Most plants operated below capacity throughout the year. Market shares were largely maintained despite difficult trading conditions. As part of its intensified marketing effort. Wood Panels Group opened or acquired 14 distribution centres in Queensland, New South Wales and Victoria. Production efficiency at each of the group's factories in Australia and New Zealand was improved. The group closed production lines with low profitability and re-allocated production to more efficient units. Overheads were cut and employee numbers reduced. The Sydney cane-iteTM plant was closed, as was a Victorian factory producing particleboard and laminate. CSR sold the formicaTM laminate factory site in Sydney and will lease it for five years, prior to relocating the plant to more suitable premises. New products with a high value-added component were introduced, including flame retardant structural board hmdTM and a range of do-it-yourself products. Sales from the $A16 million moulded fibreboard door panel plant in Queensland started in April 1991. Sales of fibronTM medium density fibreboard more than doubled, reflecting the first full year's operation of the Oberon, New South Wales, factory and improved market acceptance for this product. CSR will begin production of Australia's first thin medium density fibreboard at Oberon in June 1991. This new product will enable the company to replace imports, and to export to markets in Mia, where demand exceeds supply. A $A6 million components factory at Geebung, Queensland, started production in August 1990. Output is increasing to meet strong demand. -- Softwood operations incurred a small loss. Radiata pine plantations made a modest profit Sawmilling operations incurred a small loss, mainly because of a low level ofhouse building, particularly in Victoria, the Softwoods Group's largest market. Revenue was slightly lower and margins fell. Market shares were maintained despite intense competition from imported structural timber. CSR Limited Directors* report CSR a despite * e markets )perated shares Jing 'ood ition .d factories i. nore >ioyee was a :id factory s, prior to ;s. ponent ,T Doard door 991. d more operation nd A ret thin ne 1991. to replace /here ung, 990. 1. diata pine ng cause of a Victoria, enue was res were m imported Action taken to improve productivity and profitability included reducing overhead costs, restructuring the organisation into four regional profit centres, selling surplus land, and installing new computerised management systems. Employee numbers were reduced. Greater emphasis was placed on providing superior customer service. The group expanded its specialised do-it-yourself retail distribution network for treated pine products in South Australia. A $A10 million upgrade of the sawmill at Caboolture, near Brisbane, improved productivity and increased log handling capacity by over 50%. 4 million tonnes over 15 years from well-established plantations in Queensland being cleared for housing development. Low-cost innovative processing enables sales to be made at competitive prices. Exports began in February 1991. Outlook CSR's timber products businesses should benefit from the recovery in house building anticipated in late 1991 or early 1992. As consumer confidence returns, an improvement in sales to furniture and kitchen manufacturers, which have been particularly affected by the recession, should result Improvements in Rationalisation of sawmilling capacity continued as part of a plan to make CSR's larger mills ? ---^internationally competitive by-increased throughput ~^A sawmill was acquired in South Australia. Two . small sawmills, in Queensland and South Australia, ^ were sold. production efficiency will continue, increasing competitiveness compared with imported softwoods and timber products. _ j-jlx-year performance 9BEE25^K9fr'~s:rt' t - State government log royalties remain well above ~~z:: --> - rl?90^-il9r-^i9W those in New Zealand and North America. This cost - * disadvantage enables large quantities of imports to -- - -472 538 493 229 replace Australian timber in the local market - ^foreign exchange, tax 86.9 953T24.1 Negotiations are continuing with state government TGross margin (%) 165"19.4^105 forest services to provide logs at internationally 'Net profitbefore abnormal items <5*5> 37.1 47.8 -103 competitive prices. --' ^Shareholders' funds at 31 March --449 - 375 _ 343~356 Return on shareholders' funds (%) <L2) 9.9 13.9 2.9 --- --------- spumfa gmpirtywt lit 31 March CSR is producing slash pine chips in Queensland for ,4 export to Japan. The company will supply about . aTotai assets at 31 March ~ ton assets (%) '779 730 -596--537 <07) .55.-.-&0:r 50 jital investment -- _____ ^Depreciation 1W- M8fc 132 04 165 123 153 135 108 75 60 28 18.0 27.9 99 . 48 111 58 9.7 13.4 255 35 85 6JO ThefUIly automated log merchandiser at CSRSoftwoods' recently upgradedsawmill complex at Caboolture, near Brisbane. The mill's substantially increased logprocessing capacity improves customer service and reducesproduction costs. ftmines* profile '^Yearaded31 March tm t990 `^Silesbyend market (iAmwion) ^Dwellings -- Commercial buildings -Furniture/kitchens 'Other ^Plmtfsat 31 March -- Particleboard -- Medium density fibreboard -fibreboard , Components/specialtyproducts -JHigh pressure laminates Sawmills "Plywood gTunber remanufacturing -,fssa Pbntattais (km2) ---- 240 190 Employees at 31 March 3513 4074 CS>Cro^fradimir*mAiBgaliaiadbcrcwiatrteeipcfade AlfcccccB. BractHot, Caaenle, ' Craftttooe, Durabond, Fibre*, FiaeHae, Gtanacere, Glaatapyoe. HeseeL Hydraarakh, --HyAepaael, Hydrotin*. Maaooiia, Paiadis*.Pmm*-l0f. Fyneboard. Radex,tteadifix. Struoafler, StnctawoodL Texpaa. Ultima, Uaifura tad Weatbettex. lie Formica trademark it mad uader ^fceaca ia Australia, New Zealand, Fiji, Fapoa New Guinea andeome ottw South Pacific Uaad cbuntriea. The Lamiaex trademark is useduaderBeeaceiB New Zealaad. Papua New Gurnee aad ----------------------------- - ' ' ................................. square kilometres. CSR Limited Directors' report 1 Sugar Sugar profits were down on last year's record, but it was a strong performance in adverse markets. Profit fell 16% to SA86.1 million. Revenue fell 7%. Milling profits were reduced by lower world sugar prices and a smaller sugarcane crop. Australian refining profits fell because of loss of market to Maniidra Harwood Sugars' refinery in northern New South Wales. New Zealand refining improved profitability. -- Sugar milting operations were affected by poor weather and lower world sugar prieas. Revenue and profit fell. Raw sugar production from CSR's eight mills in Queensland declined 7%. Drought early in the growing season and floods at the end were the John Noble; PhilScanlon, Executive Director Coca-Cola Amatil; and Peter Currie. Coca-Cola Amanl is a major customerfor CSR's refinedsugar. main causes of the reduction. The floods caused minor damage to CSR's milling operations. The New York spot price for raw sugar averaged 11.09 US cents a pound, down 2.75 cents on the previous year. World sugar supplies exceeded demand for the first time in five years and stocks rose. Prices continued to decline and die New York spot price averaged 8.21 cents a pound in April/May 1991. Invicta Mill successfully introduced seven-day-a-week crushing, considerably improving productivity. The reduced crop made it unnecessary to introduce continuous crushing at other CSR mills. Hambledon Mill near Cairns will close at the end of the 1991 season, following continued loss of cane land to urban development From the 1992 season, sugarcane previously crushed by Hambledon Mill will be crushed by die neighbouring Mulgrave Mill. The Queensland Sugar Industry Act, which consolidates and replaces all current sugar industry legislation, is expected to become law in July 1991. Refined sugar sales and profits fell. CSR's share of - Australian sugar sales fell from 84% to 70% reflecting the first full year's operation of Maniidra Harwood Sugars'refinery. Because of this loss of market share, CSR closed its sugar refineiy in Adelaide in April 1991. The South Australian market is now supplied from the company's refinery in Melbourne. Productivity improvements were achieved through automation and more efficient work practices at refineries. The increase in refining costs was kept below the rate of inflation. Margins improved. Exports of refined sugar by CSR increased threefold to a record 35 000 tonnes. A decision on constructing a large sugar refinery in northern Queensland has been deferred. The project is being kept under review. Planning is progressing for the long-term redevelopment of CSR's extensive landholding on the Pyrmont Peninsula in Sydney. New Zealand Sugar Company's profits improved. Sales of refined sugar rose marginally. Intensified marketing efforts, a high raw/white sugar price differential and increased sugar exports contributed to the result Market share improved at the expense of imports. CSR's action against Bennett & Fisher for the losses suffered in connection with CSR's purchase of Anchor Foods in 1987 has yet to be heard in court CSR Limited Directors' report CSR id :ed , le ;ks rose, spot iy 1991. roving essary to lills. end of :ane ison. Mill will 11. iustry 1991. of nildra sedits from the xrngh .at kept 1. reefold lery in project is ng on the wed. .ified ce ibuted to mse of e losses of court World raw sugar price World raw/white sugar price differential Six*year performance Year coded 3i March (SA million ml indicated) --- im 1990 1969 1988 1967 1986 17 18 It YWrendedSl Mereh 87 18 St Yserended 31 Mireft Profits from distilling operations fell marginally because of reduced demand and increased imports. Sales of ethanol in Australia were lower in depressed trading conditions, particularly in Victoria and Queensland. Sales in New South Wales were steady. Exports rose strongly. Competition from two new distilleries, one in New South Wales and one in Queensland, will reduce CSR's share of the Australian ethanol market from this year. Trading revenue Profit before interest. 1988 foreign exchange, tax 1616 Gross margin (%) US Net profit before abnormal items 86.1 Shareholders' funds at 31 March 381 Return on shareholders' funds (%) 224 Funds employed at 31 March 699 Total assets at 31 March 842 Return on assets (%) 104 Capital investment ' '34.7 Depreciation 314 1169 191.1 163 1023 370 27.7 732 891 113 37.9 310 813 117.4 14.4 68.3 381 17.9 654 804 83 51.1 29.6 756 . 583 1044 84.4 13.8 143 44.4 313 486 364 9.1 8.7 677 .576. 859 677 54 4.7 141.9 263 283 253 521 ... 43.4 83 18.1 339 53 624 693 16 317 218 ---------- -- ~=rz~ ~ -' .r Business profile Year ended 3! March 8wpf from CSR's eight,mini* i crushed (kt)"_; 5qCSb (Australian industry average)7 Production (kt - 94 net titre6) *1 ~~ `Crushing rate (kt/hour) ' ` 1991 *1990 "S=M44015)^i3.9 1135)-- ' 1266-^*^364^" 3jCT 36. -36. Refined sugar ales ' _ from CSR's sixd refineries* ($A million) --------------- Australia fjew Zealand Ethanol sales (ML) Australia exports -Csgoes canted by 2 shipsmanaged by CSR (kt) 1149 Employees at 31 March 2829 (SB's shipping business operated profitably. Sugar and - Year ended 31 December 1998 gypsum continued to be the main commodities .. Australian raw sugar exports by CSR as agent --transported. CSR Shipping Group successfully tendered to arrange the construction of a 15 000 tonne --HbrTfre Sugar Board* (kt-raw value) -~ Japan Malaysia capacity bulk cement ship for Australian Cement _ Canada ^ Holdings (50% CSR). .. ........... -- "Republicof Korea ----- USSR"....... . The People's Republic of China- Outlook Singapore USA World sugar production is forecast to exceed New Zealand Venezuela consumption in 1991, resulting in higher stocks and Egyp* continued depressed prices. Queensland's 1991 sugar crop has been seriously affected by unusual weather and is uitfikd&to exceed die 1990 level. CSI& miUin|pprofits are expected to fall further. CSR's refmojsugar sales in Australia and New Zealand$f|&id remain at around last year's Year coded 32 Augua World sugar market21 (Mt - raw value) Production "~ .Consumption Final stocks 1991* U24 1094 334 1989 -jor.r 1990 --109.0 -- 1084 30.1 levels. Profits from refining will depend largely on the raw/white sugar price differential, which is * expected to be satisfactory although lower than last year. -CSRGcnepttedeaMta a Aotnlia tad other tsantrieemdudeBrinecoi. Chelae*.Ftetsl Fetnnoi tad Propel -- - a CSR't net beneficial iaterettfrom raw topr tmitisg it about 13% of the pooled reveaoeof the Qocentlind raw tngar aduary. Until 30 Jane 1969. C5R toll refined tugtroo behalf of - the Qucemltnd Government. Since deregulation of the doencctictuger market on 1 Juljr 1969, CSR't refinetiet have been operating on a regular coauneidal bona CSR provide* marketing end related tervioet to the QueentUod raw tugar mduatry for fee* negotiated under a eootraO with He Sugar Board. . . T-- b The percentage of rugarcane recoverable as pore sugar. The approximate percentage ofrefined sugar recoverable from n sugar, d CSR't refinery in Adelaide doted in April 1991. e_ Twelve mootbt as an independent refiner. __ - f Nine monthsas an independent refiner, three months as a toBtefiner. g Estimate. __ -_r-l h. .Source: F O Licht. Worid Sugir Balances H February 1991- kt thousand tonnes. ML miDioo litres. Mt million tonnes. CSR Limited Directors' report IS Aluminium Expansion of Tomago aluminium smelter and Gove alumina refinery will increase competitiveness. Profit fell 27% to $A34.1 million. Revenue fell marginally. Higher production costs, mainly for fuel oil and caustic soda, lower prices for aluminium and alumina, and lower bauxite exports affected the result The world aluminium marketweakened. Supply exceeded demand for the second successive year. Stocks rose and prices fell. The London Metal Exchange three-month price averaged US$1638 a tonne, down 6%. In April/May 1991 it averaged US$1375. expired in January 1991. The Commonwealth and Northern Territory governments approved Gove Aluminium and Swiss Aluminium exporting a further 40 million tonnes over the next 20 years. This will be shared 30:70 in line with the parties' joint venture interests. In addition, Gove Aluminium has the right to export 2.8 million tonnes carried over from the previous agreement Gove Aluminium's share of bauxite exports will accordingly be about 50% for the next three years. Outlook World aluminium supply is expected to continue to exceed demand, leading to higher stocks and prices remaining weak. No improvement will occur until world economic activity recovers and some high-cost smelter capacity is closed. "The longer-term outlook for aluminium is favourable because of the metal's strength, lightness and recyclability. Construction of the Tomago aluminium smelter's third potline began. The project (24.5% CSR), to cost around $A700 million, will increase capacity by 140 000 tonnes to 380 000 tonnes a year, providing economies of scale and improved competitiveness. The project will be completed by mid 1993. Alumina sales rose 5%, but prices fell slightly. Expansion of Gove refinery (21% CSR) capacity by 10%, to 1.6 million tonnes a year, will be completed by July 1991. The expansion will improve efficiency, reliability and safety. Bauxite sales by Gove fell 11%. Gove Aluminium's exports fell to 2.4 million tonnes. The 20-year agreement, under which Gove Aluminium had the right to export up to 40 million tonnes of bauxite. _ Six-year performance -- -- - --Year ended 31 March (SA million aaleae indicated) 1991 1990 19S9 1968 1967 1966 _ -Tradingrevenue "364 306 303 " 288 2*2w6*.. _ _ 1_89_ i I 1 1 foreign exchange, tax 88.7 111.1 115.1 94.4 333 "Gross margin (%) .. 29.2 363 383 - 323 . 15.0 --------- ... . .. (1.4) (0.7> ahtwifflial items "34J Shareholders' funds -"T-it 31 March Return on shareholders' funds (%) 373 Funds employed . at 31 March ______ 306 Total assets at 31 March 350 Return on assets (%) 9.7 Capital investment Depredation 444 242 46.9 66 71.1 290 330 143 123 24.1 45.9 283""33 (03) 65"--96~-49---31" 70.6 29.7 16.9 (0.6) 289 326 14.1 8.6 243 315 341 8.4 4.7 25.9 341 397 2.1 163 8.6 266 336 (0.1) 103 73 Peter Lovell (right) at Tomago aluminium smelter with CSR's Tokyo representative David Green, a metallurgist, who liaises on important technical matters with customers inJapan. Business profits Year coded 31 March 1991 ---------- --------- 1990 CSR beneficial intereatl991 Quantity % GoveAlmlafami Bauxite sales (kt) 2391 Bauxite recoverable reserves* (Mt) proven 163 Alumina (kt) sales 255 transfers forTomago 153 Aluminium sales (kt) 85 2689 169 244 170 82 1674 36 179 107 60 70 22 70 70 70 Employee* at 31 March 17 16 Year ended 31 Match 1991 1990 1969 1988 1967 World aluminium price (USS/t) 1638 1749 2362 1691 1171 a Prepared by NabalcoPty Ltd. oanafcr of the Gove joint vesture. kt tbouaaadtome*. Mt million tonrtet. t tonnet. CSR United Dirsctore'report Finance CSR ih and ;ove r a further is will be ;nture ;he right m the re of )% for the iinue to i prices r until high-cost tvourable d 1987 1986 226 189 33.8 ' (1.4) 15.0 Am 83 (02) 49 -31- 16.9 (0.6) 34f "266 397 2.1. 163 8.6 336 (0.1) 108 73 CSRbwfid*! iattnsti991 jutatity % ._70 1674 36 22 179 70 107 70 60 70 1W 1987 1691 1171 CSR is very strong financially despite reduced earnings. Return on shareholders' funds fell from 16.1% to 11.6%, following seven successive years of improvement Earnings per share fell from 55 cents to 42 cents because of lower profits earned on issued capital. Gearing was reduced from 323% to 273%. (See table on Not profit before abnormal items was 20% lower at SA32S.9 million. Pre-tax operating profit of SA564.7 million was 24% lower. Operating profit and extraordinary items after income tax was $A323 516559. page 24). CSR continues to have substantial long-term borrowing capacity. Borrowings could be increased by around $A470 million without increasing gearing beyond CSR's long-term target maximum gearing ratio of 35%. At the date of this report, CSR has over $A700 million of undrawn Abnormal items contributed a loss of SA2.4 million after -- tax and minorities. A major abnormal profit arose from the sale ofCSR's 50% interest in Austral Brick - committed standby facilities and substantial unused 'borrowing capacity under short-term commercial paper programs. ($A36.4 million). Major abnormal losses arose from Nst borrowings were reduced by SA2S3 million. --the sale of CSR's 49% interest in Redland iTotal borrowings were reduced by $A222 million. --Plasterboard ($A36.0 million) and the closure of fog -^ti$A348 million of long-term debt facilities were "sugar refinery in Adelaide (SA10.8 million). repaid. Debt repayments during the year included There were no extraordinary items. - --~ $A98 million of convertible notes issued in 1980, --. .......... .......... _ $A40 million of Eurobonds issued in 1985 and ' ~ Directors recommend a final dividend of 16 cents a share', US$133 million of committed bank borrowings, fully franked. The final dividend, if approved by the annual general meeting, will bring the total dividend ~ CSR arranged S^M mtUion of long-term debt to 32 cents a share, fully franked. This compares with - 5 lncludm* US$154 m,1Il0n ofcommitted a total dividend of 40 cents a share, fully franked, the_ aak knowings. - previous year. The final dividend is payable on Scheduled long-term debt repayments this year total -- 7 August ~~^?-^-US$225 million of committed bank borrowings. tssuod capitaHncreasod by 42 million to 782 million $A1 shares, including partly-paid shares. The increase CSR aims to maintain a reasonable spread of debt maturities and a diversity of lending sources. included the issue of 35 million shares under the____ r shareholder and employee share purchase plans. '-t Details of all issues are shown on page 48. Cash flow (funds from operations) fall 21% to SA712.1 million. The fall was mainly due to weaker markets for all products. CSR's strong cash flow, conservative gearing and its access to committed Shareholders' funds, including minority interests, rose 9%~" '1 standby facilities place the company in a strong --~ .to SA3.1 billion. The increase was mainly the result of . liquidity position. the issue of shares under CSR's share purchase plans' (see page 48 for details) together with profits retained in CSR's businesses. Net interest expense increased from $A60 million to IA123.7 million. The increase was due to the full year Total assets were relatively unchanged at SA6220.2 million. effect of the increase in borrowings associated with the acquisition of the ARC America companies, and lower interest income. Interest cover decreased from intangible^ .balance of goodwill was - SA497.8 .hffer accumulated amortisation of $A483 mi^^The balance ofpatents and trademail^^l^l8Z8 million at 31 March 1991. No amortii&Sf&i hasbeen provided on patents and trademarks. 9.5 to 4.6 times. CSR continues to keep a balance of fixed and floating interest rates, consistent with its financial risk policies. Foreign exchange. Management of foreign exchange exposures achieved an average SA/USS exchange rate on revenues of 76.0 cents last year. Foreign currency Net tangible asset backing per share increased 22 cents to 8A3.11. Total net asset backing per share increased -- 15 cents to $A3.60. liabilities decreased by SA72.8 million to the equivalent of $A1634 million; these are more than matched by the value of business assets outside Australia. L CSRUmittd Oimctora' report 21 Financelcominuedl Operating profit before interest foreign exchange and tax fell 15%. S*aioo 7JJ.7 CSR shareholders' funds rose bySA2S5 million. Total assets fell marginally. Cash flow from operations fell to SA712 million. 17 M M K 91 VHttnMSMtatth 97 M n to II YKtWiMSIMtfth 17 N 'tartndtOI Mtrtfc CSR * credit retings ere: Shortterm Longienn Oivestments totalled SA340.8 million. The sale of CSR's Moody's P-1 A2 50% investment in Austral Brick (SA142.2 million), Standard & Poor's A-l -- 49% investment in Redland Plasterboard Australian Ratings ($A113.8 million) and non-strategic or (from 1 October 1991) ~ A.l A under-performing assets in the United Stated (SA49.7 million) accounted for most of the proceeds. I CSR has maintained its P-1 and A-l short-term ' ratings from the international rating agencies since Risk management CSR's risk management |; they were assigned in 1985. The new ratings assigned arrangements encourage businesses to practise \ by Australian Ratings reflect the standardisation of its effective loss control and to provide safe work places. i rating scale to that of its parent. Standard & Poor's. An in-house insurance company with access to ' CSR's ratings and its conservative gearing enable the international reinsurance markets provides protection ! company to continue to borrow at competitive rates against major risks. Since introduction of this risk ! from domestic and international markets. management program in 1987, reserves of $A7.1 million have accumulated from savings on ! Working capital. Current assets were similar to last insurance premiums. year. Current liabilities declined by SA63.9 million. The provision for doubtful trade debtors fell by SA10.7 million to SA24.6 million following a write off of SA17.8 million in bad debts compared to SA9.1 million the previous year. Reconciliation with US accounting principles. To assist shareholders and analysts outside Australia, a reconciliation of CSR's financial results and shareholders' equity prepared in accordance with Capital investment was reduced by 70% to SA452.7 million. Investment was directed mainly at strengthening CSR's building and construction materials businesses in Australia and the United States. United States* generally accepted accounting principles (US GAAP) is on page 55. Under US GAAP, CSR's net profit after abnormal and extraordinary items would be SA350.9 million, compared with SA323.5 million under Australian Capital investment planned or committed this year is accounting methods. about SA520 million. About SA250 million will be invested in maintaining production capability and improving the efficiency ofexisting businesses. Senior management Most of the balance will be spent on the third potline Don Murden, FCPA. FCIS. FCIM, age 54, Chief Financial Officer at the Tomago aluminium smelter, the expansion of and Company Secretary, joined CSR in 1958. quanying and concrete operations in the United States and Australia, and increasing sugar milling capacity. 22 CSR limited Directors* report rations T5 1 I0S3 0 91 :sr's lion). ceeds. places. ection isk on tssist s an CSR Return on shareholders' funds fell to 116%. Ill m Earnings per share* fell to 42 cents. 17 M M 1 YMfOMa*31 March *7 MB Iber ended31 March 10 *SaaedenweigMad average eaeiM adjuaadfartaiae. SI Gearing was reduced to 279%. Capital investment was IA453 million. financial profile YetresdedH March (SA miUtoa actor indicated) im 1990 % change Balance sbeet at 31 March Paid up capital ($A1 shares) Total assets Current assets CSR shareholders' funds Gearing (%) Non-current creditors and borrowings Current creditors and borrowings Standby credit undrawn Current ratio ms 62202 1587.8 1797.8 27.9 1219.2 8433 782.7 tl7 735.0 62993 15743 25323 32.9 14133 907.4 670.4 1.03 Interest expense income net expense Interest cover (times) 1713 473 123.7 43 140.0 80.0 60.0 93 Exchange rate SA/USS (cents) at 31 March 773 average for year 783 75.1 773 ProfitabBity Trading revenue Operatingprofit before interest, foreign .. exchange and income tax as a % of trading revenue funds employed Netprofit before abnormal items as a % of CSR shareholders' funds trading revenue total assets Avenge income tax nte, excluding abnormal items (%) 45663 4516.1 8713 147 123 3253 113 73 53 793.7 17.6 14.1 406.9 16.1 9.0 63 35 39 Performance per share on bsoc at 31 March Earnings (cents) Dividends (cents) Net tangible assets (book value) (SA) Net assets (book value) (SA) Value added ($A) 423 323 3.11 330 231 553 403= 239 3.45 2.41 6 -1 1 10 -14 -7 17 - _ _ - - 3 2 1 -15 _ _ -20 _ _ - -24 -20 8 4 -4 Currency conversion at 31 March* SA1* New Zealand dollar Pound sterling United States dollar Canadian dollar 13184 03451 0.7743 03978 13984 0.4566 0.7505 0.8794 Exchange rates ored 10 convert CSR`i non-Australian financial results into Australian dollars. Segment analysts Ycareaded3Ilted|k (SA motion artiestigKMMll Operatingprofit fewmhMttM.- hwiait and andtaooetax^ allocation* tm im im 1990 Income tax tm 1990 Met profit before abnormal Mtattat tan* tm 1990 1991 1990 Building andcouinictii materials Gmstroctido ' materials USA ' Timber products Sugar Aluminium Unallocated* Group 2933 360,1 57.8 49.7 75.0 1243 16.6 20.1 144.9 16S.8 *-s - 1113 543 523 1S.1 22.9 12.4 _ - 353 26.7 333 86.9 413 24.0 (1.8) 25.8 - (53) 37.1 162.6 191.1 30.4 24.3 46.1 64.3 _ 86.1 102.5 88.7 111.1 13 (2-3) 37.9 44.0 14.9 22.5 34.1 46.9 (18.6) (9.7) (593) (36.5) 10.1 18.9 ____- 303 27.9 6713 793.7 123.7 54.3 190.2 289.9 313 42.6 325.9 406.9 * Segmental profits include *n allocation offinance con bated on the fitndeistMed ineach segment, b Unallocated headquarters overheads. unallocated oat and divested opetaoona. Hading icvcnos 1991 1990 1753 1878 947 621 472 538 1088 1169 304 306 ____ 2 ____ 4 4566 4516 CSR tarehoiden' tad* 1991 1990 1991 1990 (Streets) 931 890 15.6 18.6 961 449 381 91 (15) 923 3.7 2.9 375 (13) 9.9 370 22.6 27.7 66 373 71.1 (91) ____- ___ 2 2798 2533 11.6 16.1 CSR limited Directors'report Finance (continued) End-market analysis of trading revenue Capital investment Year ended 31 Much 1991 U^he Building and construction materials Dwellings Australia international Civil construction Australia international Commercial buildings Australia Other international 679 70 495 22 412 36 39 1753 1990 % SAmjiboq 14.9 14 104 04 9.0 04 0.9 384 725 52 509 18 499 45 30 1878 % 16.0 12 114 0.4 11.0 1.0 0.7 41.6 Construction materials USA Civil construction international Dwellings international Commercial buildings international Other 367 84 323 7.1 243 S3 14 04 158 34 252 5.6 211 4.6 -- 947 20.7 621 13.7 - Umber products -- - --~ -------- Dwellings -^Australia a 1 -- '-;il66' - 54'----- 323- 74*! .. . , . _ . , buildings Australia -- - -.118 24 , 100 22- . ... Fumiture/kitchens Australia -- 61 14 82 - 1.8- Other ="'-27 04., 33 0.7- 472 104 538 11.9 Year ended 31 March (SA miilioo) Building and construction materials conaete, quarrying, cement insulation plasterboard bricks, roof tiles major acquisitions other 1991 1424 274 17.7 154 214 2244 Construction materials USA --- concrete, quarrying, cement 734 concrete pipes 26.1 major acquisitions -- other 04 994 Timber products wood panels sawn timber 384 204 584 - Sugar SSZ- T* miBs* refineries distillenes other .... ~ ===484 --m 24 . 14 ------------------------- ------------ 34.7- -Aluminium - -- 444 1990 148.6 52.4 45.9 77.1 84.4 49.7 458.1 40.7 04 8344 2.4 877.9 106.7 18.6 1254 17.1 15.4 4.6 0.8 37.9 112 -Sugar Food ' r~ - -- Other - Australia 520 New Zealand --------103 other international 381 - 84 1088 114 24 84 14 234 -* 593 --98 412 66 1169 13.1 "22" 9.1 14- 25.9_ Aluminium international ___ 304 6.7 306- 64 ^ ^Corporate ------------------------------------- ... (94) (34) -Total capital investment "4517 1508.1 'Divestment _,_gfoce*ds --- brick investments plasterboard investment US assets l--"--------- --------- other* .. ... 1412 1134 49.7 351 69.7 _ 14.0 188.4 . _ Unallocated Australia _____ 2 ._04 4_. 0.1?~ ------------- A. -------------------- -- 3404 2711 Trading revenue Australia "--= -2553 International 1863 Mixed Australia and international 150 -- -- 4566 56 41 3 100 2835 1552 129 4516 ** 63^ 34 3 100 --1 Non-strstepc assets and MMtrateficiBvesawnts. ------ --^Value added -YWcatted 31 Msrcfc ___ 1991 Udot ~ --- iwo % SAmilboe % Gearing analysis Year coded 31 Much (SA miffioo) Borrowings Short-term debt Current maturities ofloog-term debt Long-term deft Cash and sboct-tem lending Cash Short-term lemfing Loans to the Queensland sugar industry Net borrowings Total shareholders' equity Total liabilities Gearing ratios (%) Long-term debt: equity plus long-term debt Total borrowings less cash and short-term lending: equity Long-term debt; equity tm 2014 1354 12194 15554 134 276.7 2904 12649 31464 30734 274 404 384 1990 190.4 173.7 14134 1777.6 4.7 217.1 (2.1) 219.7 1557.9 28854 3413.7 * _ 324 - 53.9 49.0 Source Trading revenue and dividends Less purchases of materials - and services* '.Total value added available for distribution 4591 100 4540 100 2792 61 2774 61 1799 39 1766 39 Distribution To employees in wages, salaries and -- payments to retirement funds To governments in taxation6 839 47 276 15 756 43 349 20 To providers of capital ar- " - interest paid on loans 124 7 60 3 dividends paid to shareholders - including minority interests 284 16 318 18 Reinvested in business depreciation6 and amortisation profit retained from operations 236 13 40 2 194 11. 89 5 1799 100 1766 100 Includes amounts pcid to tovcmaeatsts rail freight,pon tecs, sties t*jc.impoft and excue duties, and the eoct of services ptiidursed from government department*, b Includes company income tax. payroll ux. fringe bcMGtstas.royaltiet.loen] government rates, tecs charged such ts licence feet, sump duty and financial duties, c Straight line depreciation it used at rates based oc the espcqtd economic life of non-current assets. 24 CSR Limited Directors'report CSR in the community CSR 1990 148.6 52.4 45.9 77.1 84.4 49.7 458.1 40.7 03 834.5 2.4 877.9 106.7 18.6 1253 17.1 15.4 4.6 0.8 37.9 122 (33) 1508.1 69.7 14.0 188.4 272.1 > % ) too 4 61 6 39 6 43 9 20 73 i 18 4 11 9 _5 6 100 mpon MTUDeatt. cal 3*1 duties. Ueot CSR values its reputation as a good corporate citizen, concerned for the environment, and contributing to the community. CSR is committed to high standards of environmental protection. The company's environmental policy was formalised in 1983. During the year environmental performance was reviewed. The CSR Board established an Environment, Occupational Health and Safety Committee. Its role is to monitor the group's performance in these areas. With over 700 plants and 20 000 employees worldwide, the company invests much time and money to ensure emissions are controlled and spillages prevented, as well as to preserve our surroundings. But accidents do happen: people make mistakes and machines develop faults. The tasks facing CSR include the need to heighten all employees' environmental awareness, to minimise the number of environment threatening accidents, and to ensure that the impact of accidents on people and the environment is minimal. As part of the environmental monitoring and control process, each business unit carries out regular environmental audits. Revised environmental reporting procedures were established during the year. A hazardous chemicals register is maintained to ' ensure a better understanding and control of potential problems. The company's actions to protect the environment cover a wide range. The Readymix Group's Oaklands Junction Quarry near Melbourne, opened last year, illustrates CSR's long-term approach to environmental issues. Hundreds of hectares of native bushland were planted by CSR at the site over IS years ago;Jbiy old eucalypt trees have been preserved. The^uarry surroundings have been landscaped, the aggregate plant is shielded to control dust, and the quarried areas will be progressively `rehabilitated. Bradford Insulation's new glasswool plant near Sydney is one of the world's most environmentally sophisticated insulation plants. Advanced technology reduces waste air emissions to substantially below those generally permitted by Australian and overseas regulations. In some cases CSR benefits directly from investment in environmentally sensitive actions. A new recycling plant keeps the Gyprock Group's Sydney factory well ahead of accepted standards of waste disposal. Reducing costly waste disposal by reclaiming gypsum from factory waste and reject plasterboard saves SA400 000 a year. CSR's sugar mills in Queensland have, for many years, used crushed sugarcane fibre to fuel their boilers. Major energy savings result. Enough electrical power is produced for the mills to be net exporters of power to the Queensland electricity grid. CSR's 200 square kilometres of radiata pine plantations, which supply timber for the company's wood panel factories, absorb considerable quantities of carbon dioxide. Over 200 000 more trees are planted by CSR each year than are harvested. C$R*s most significant contribution to the community is the operation of profitable businesses which employ people, buy goods and services and pay taxes. Last year, CSR added value of $A1799 million to the SA2792 million of goods and services purchased. Of the added value, $A839 million went to employees and $A276 million to governments. Financial support is given to local community organisations in areas where CSR operates. Support is also given to national educational and charitable organisations. CSR has combined with other quarry companies in the Penrith Scheme (40% CSR) in Western Sydney. The scheme is progressively rehabilitating the quarry which provides Sydney with 50% ofits sand and gravel. Covering an area 6 kilometres by 53 kilometres, the project is providing lakes and landfor wildlife andpublic recreation, as well as some urban land. I CSR Limited Directors'report People The main task for CSR's people is achieving international competitiveness. CSR's people era improving the competitiveness of their businesses. Costs are being reduced and productivity unproved. There is an increased emphasis on satisfying customer needs. Only by taking these steps will CSR succeed in the increasingly competitive markets of the 1990s. Achieving international competitiveness means becoming more efficient and effective. This involves redesigning jobs, changing the way we work and changing the way our businesses are operated. When combined with the sharply reduced demand for many of CSR's products last year, these actions led, inevitably, to fewer jobs in the company. Meet of CSR's awards and industrial agreements in Australia ware restructured. More flexible working arrangements at work sites have been negotiated. Managers and employees can now agree to alter working arrangements to more effectively meet the changing needs ofindividual businesses. The number oTteople employed at 31 March 1991 was 2377 fewerthan at the same time last year. Of the 19 996 people in CSR, 5888 (29%) were employed outside Australia, mostly in the United States. 1739 people had to be retrenched. The company provided these people with appropriate termination payments and other forms of assistance, in accordance with long-standing practice. Training is essential for improving people's effectiveness. CSR provides training for employees at all levels. Business groups are responsible for training their own people. For example, during the year, some 420 people, from senior managers to supervisors, in The Readymix Group participated in training programs designed to apply the principles of Total Quality Management In MonierPGH 350 people participated in training and development programs covering management, sales and technical skills. Efforts to improve workplace safety were successful. CSR is committed to preventing injury and illness by providing a safe working environment Lost time or alternative work accidents were reduced by 12%. CSR's serious injury frequency rate fell. Major reductions were achieved by several businesses, including The Readymix Group, MonierPGH, Rinker Materials, American Aggregates, Hydro Conduit, CSR Softwoods and New Zealand Sugar. Management of workplace chemical substances improved. The computer-based register of hazardous substances in Australia was upgraded. ! : | ! [ f f * j Mott employees In Australia benefit from the management of workers' compensation claims under CSR's self insurance schemes. Compensation payments and rehabilitation are provided promptly to injured employees. In addition, CSR benefits from cost savings resulting from operating its own self insurance schemes. ( CSR America's subsidiaries are mostly unionised. 61% of CSR's hourly work force in the United States belong to unions. There are presently 63 labour contracts in place, of which 24 expire this year. It is expected that all contracts will be satisfactorily renegotiated. j ! i Edwin Enriques, MufHussain andIsmail Kanli in the distribution area ofBradfordInsulation's modern glasswoolfactory in Sydney. A new range ofintegratedpack designs supportsBradfordsmarketing program. CSR Wood Panels' Judy Mackellar, Planning and Logistics Manager, with NeilLowndes, Commercial Manager, and Jenny Whalley, Personnel Manager. Theplanning and logisticsfunction is improving customer service and saving several million dollars yearly by coordinating production, distribution and warehousing between the group'sfactories. 2S CSRUnuttd Directors'report ness. own al is sby or .inker ious sreent rates ily <r. rsonnel !er lories. CSR All CSR employees in Australia have access to superannuation which is competitive by community standards. CSR has a long standing commitment to occupational superannuation. (Details of CSR's Australian superannuation funds are on page 58.) Employee numbers fell by 2377 mainly because of retrenchments. The serious injury frequency rate* was reduced. Frequencyme ff 31 Most of CSR's employees In the United States are members of a retirement income plan. Retirement plans are of two types: company-sponsored and union-sponsored. Both types provide benefits on a defined benefit or defined contribution basis and are competitive by community standards. Equal employment opportunity is central to CSR's personnel practices. CSR's recruitment, training, promotion and reward practices, as well as its organisation and management processes, are designed to attract the best people and to allow them to develop to the full extent of their aptitudes and skills. 17 38 N tter ended 31 Mirth SO SI *tow-dweeneiamiWi'Worfciccidenu per nifion eaptoyee hewn worked. In Australia, compliance with affirmative action legislation includes the submission of annual reports by all CSR's business units to the Commonwealth Government's Affirmative Action Agency. Employment of women in CSR's middle management is gradually increasing. Employee and executive share plans. 6250 employees ^Employee information --Veerended 31 March ^"Employees* at 31 March ^Australia =AJSA New Zealand _Other countries -- __ .. mi ten %chasee 19996 14108 4793 537 558 22373 13234 S826 560 753 -11 - -7 -18 -4 -26 participated in the Employee Share Plan last year, .Male each buying 100 or 200 shares. Under the Executive --r^pttnjJes 17780 19879 -11 --------- ----------- ------ 2216 ~~2194_ __-=ll_--; Share/Option Plan, 329 participants acquired 1.2 million partly-paid shares at full market prices. Total shares issued to-date under the two plans represent 1.7% of issued capital. __28ftw university graduates reendted ^Engineering and science ..Commerce and economics ^Dther ----------- 24 --44 * 17 28 ---------- 6------------ 6------------------ -- Regrettably, issues under both share plans are being 47 78 deferred because of the uncertain and onerous provisions of complying with the prospectus requirements of the new Corporations Law. A decision on the future of the plans is expected to be made this year. Angel Crespo. Tony Valdes andDoyle Roundtree at Rinker Materials' FEC Quarry near Miami. Florida, surveya sitefor recovery oflimestone aggregates. Rinker Materials' quarriesare well located to supply customers throughoutFlorida. yr*r ' "TAppreatfces employed at 31 March ^Serious injury frequency rate Building and construction materials -Construction materials USA ^Timber products . Sugar v Aluminium -Group including corporate 384 461 ' - ------- - * -- ------- 33 41 21 25 50 50 38 ' 27 --- 33-----------36 ^ Financial performance ^Trading revenue per employee ($A thousand) 228 rNet profit before abnormal items fc per employee (SA) 16 298 Wages, salaries and payments to retirement _ funds per employee (SA) Value added per employee ($A) Total CSR contributions to CSR superannuation funds (SA million) 41958 89968 262 202 18187 33791 78934 29.8 Iodide* employee* it partly-owned subcidiarie*. CSR Limited Director*'report 27 Directors CSR's twelve directors have extensive business experience. Eight, including the chairman, are external directors. Bryan Kalman, AO. CBE, BEng, FTS, age 65. Appointed to the CSR Board in 1973. Formerly chief executive of CSR, having joined the company in 1966. Chairman of Jennings Industries Ltd and Simon Engineering (Aust) Ltd. Mr Kelman's directorships include Macquarie Bank Ltd, Prudential Assurance Company of Australia and New Zealand Ltd, Homestake Gold of Australia Ltd and Spotless Services Ltd. Alan Coates, AO, DSc (Hon), fah. FAlM, age 66. Appointed to the CSR Board in 1986. Chairman since 1989. Formerly chief executive and a director of the Australian Mutual Provident Society. Chairman of Brambles Industries Ltd, his directorships include CRA Ltd, Chase AMPBank Ltd, Pacific Dunlop Ltd, The Australian Gas Light Co, Mitsubishi Motors Australia Ltd and the Queensland " Treasury Corporation's Investment Advisory Board. " Emeritus Professor Sir Rupert Myers, KBE, MSc. PhD, DSc (Hon), DEng (Hon), LLD (Hon). DLitt (Hon), FTS, age 70. Appointed to the CSR Board in 1981. Formerly vice-chancellor and principal of the University of New South Wales. He is chairman of Unisearch Ltd and a director of Energy Resources of Australia Ltd. Sir Rupert is president of the Australian -Academy of Technological Sciences and Engineering - and is a director of several charitable foundations. David Voss, BA, LLB. QC, age 58. Appointed to the CSR Board in 1973. __ Formerly a barrister, he is chairman of Sandoz Australia Pty Ltd. His directorships include Perpetual Trustees Australia Ltd, Computer Sciences of Australia Pty Ltd and the New South Wales Board of Advice of the Australian Mutual Provident Society. dim Scully, AO, BA, age 63. Appointed to the CSR Board in 1984. Formerly head of a number of Commonwealth Government departments responsible for trade and resources. Chairman of Seabridge Australia Pty Ltd and the Japan Australia Venture Capital Fund, his directorships include Westpac Banking Corporation "and Tubemakers of Australia Ltd. j I [ * t CSR United Directors'report ithe rieso man's iential land less J.DSc 70. nof :es of .tralian eering is. ind Ltd lis ition CSR Ben Macdonald, age 58. Appointed to the CSR Board in 1985. Formerly managing director of Macdonald Hamilton & Co Pty Ltd. Chairman of Perpetual Trustees Queensland Ltd and the Queensland Cotton Corporation, his directorships include Perpetual Trustees Australia Ltd, Allgas Energy Ltd, AP Group Ltd and Placer Pacific Ltd. Mr Macdonald is a member of the Queensland Board of Advice of the Australian Mutual Provident Society, the Board of Advice of Carlton & United Breweries Ltd, the Queensland Treasury Corporation's Investment Advisory Board and the Queensland Board of Advice of MGICALtd. Jim Kirk, ac. aasa, CPA, age 70. Appointed to the CSR Board in 1985. Formerly chairman and managing director of Esso Australia Ltd. He is chairman of Landcare Australia Ltd and a director of Macquarie Bank Ltd. " Ian Burgess, BSc, FTS, age 59. Appointed to the CSR Board in 1986. Managing director of CSR since 1987, having joined the company in 1951. He is a director of the Australian Mutual Provident Society, chairman of Business in the Community Ltd and a member of the Australian Public Service Management Advisory Board. Bill Bennett, BEng, MSc, age 54. Appointed to the CSR Board in 1986. Deputy managing director of CSR since 1989, having joined the company in 1959. He is the executive director responsible for sugar milling, raw sugar export marketing, aluminium and human resources. Mr Bennett is a director of Brambles Industries Ltd. John Gough, AO, OBE, LLD (Hon), Dip Tex Ind, age 62. Appointed to the CSR Board in 1989. Formerly managing director of Pacific Dunlop Ltd. Chairman of Pacific Dunlop Ltd and deputy chairman ofNewcrest Mining Ltd. His directorships include Amcor Ltd, Australia and New Zealand Banking Group Ltd, TbeBrofcen Hill Proprietary Co Ltd and ICI Australu|^|\Mr Gough is a member of the General MotQ&Australian Advisory Council and is a Medical Rese&felk He is chairman of the Graduate School of Management at the University of 'Melbourne. Keith Barton, BSc, PhD, age 51. Appointed to the CSR Board in 1990. He is the executive director responsible for CSR's construction materials operations in the United States. Dr Barton joined CSR in 1979. Geoffrey Kells, BCom. MEc, age 47. Appointed to the CSR Board in 1990. He is the executive director responsible for CSR's building and construction materials and timber products operations in Australia, New Zealand and South-East Asia. Mr Kells joined CSR in 1964. Board committees Audit Non-executive directors: David Voss (chairman), John Gough and Jim Kirk. Environment Occupational Health and Safety Non-executive directors: Sir Rupert Myers (chairman), Alan Coates and Jim Scully. Remuneration Non-executive directors: Alan Coates (chairman), John Gough and Bryan Kelman. Olrectors fees paid to non-executive directors totalled $A402 000 last year. Details are on page 40. Total fees to be paid this year to current non-executive directors are expected to be about SA430 000. Directors are also reimbursed for expenses they incur in performing their duties. Non-executive directors have agreements with CSR which conform to the provisions of die company's Articles of Association in respect of entitlements to retirement and termination payments. Executive directors have agreements with CSR in respect of their employment as senior executives and receive remuneration as employees of the company. No director has received or become entitled to receive any other additional benefit, other than those mentioned here, by reason of a contract made by CSR or a related party with the director, or with a firm of which he is a member, or with a company in which he has a substantial financial interest. As at the date of this report no director has any interest in a contract or proposed contract with CSR and none have been entered into since the previous year. Details of directors' holdings of CSR shares are on page 58. CSR Limited Directors'report 29 Organisation and management IG Burgess Managing Director \______ _) W A Bennett Oeputy Managing Director \______ _) --------------- ------------- V Raw sugar PJ Noble Genaral Manager Sugar J E Burroae General Manager Raw Sugar Marketing Group Aluminium PHTLovetl General Manager Gove Aluminium ltd (70% CSB) Human resources R H Beardmore General Manager Personnel v_________________ , /--------- ---------- \-------------------------- --.....-V f \ ----------^ Refined sugar PG Currie General Manager Sugar R 6 Lowndes Managing Director NewZealand Sugar Co ltd SM Hughes Chief Manager Shipping Group BM Muttra General Manager Distilleries Group Construction materials USA DV Clerics President (linker Materials Corp Chairman Southern Aggregates Co M 0 Donohoe President Associated Sand & Gravel Co Inc Chairman WMKTrensitMix GC Harris President American Aggregates Corp Building and construction materials B G Baker General Manager Gyprock Group PJ Bowen General Manager PGH Ltd(51% CSR) A N Brennan General Manager The Readymix Group S J Droder General Manager Bradford Insulation Group Finance ER Beers Group Manager Information Systems J B Bolen Manager Group Taxation A B Carlton Treasurer' R A Humphries Chief Group Auditor RKPhilp Group Chief Accountant \______________ ) v_________________ , PG James President Hydro Conduit Corp V_________________ / 6 W Squires General Manager Monier Roofing Ltd (51% CSR) Timber products /-------------------------^ Corporate services PJDadswtll Manager Corporate and Investor Relations HFPens General Manager Softwoods Group J Purdie-Smhh General Manager Wood Panels Group FBGill Chief Corporate Lawyer \______________ ) V_________________ ) -------------------------- \ Major associated compeny A R Arnold Chief Executive Officer Australian Cement Holdings Pty Ltd (50% CSR) V._ _ _ _ _ _ _ _ _ _ _ ) 30 CSR Limited Directors* report Additional statutory information CSR Various statutory requirements not covered elsewhere are reported in this section. Payment of recommended dividend. Directors recommend the dividend of 16 cents be paid on -- 7 August, or otherwise dealt with under the Share ~ Purchase and Employee Share plans, to shareholders entitled to receive dividends and registered on 17 July 1991. Duly completed transfers received by CSR up to 5 pm on 17 July will be registered before dividend entitlements are determined. Statutory information Year eaded 31 March on 1990 Dividend ($A) Interim 22 December 1989 19 December 1990 Final 1 August 1990 7 August 1991 recommended Books close for dividend entitlement 114394276* 122038067 _ 177581299 12501000* 17 July 11 July Options held on CSR shares $A4.00 8% convertible unsecured notes6 SA380 option bonds (prepaid to SA0.01) outstanding at 17 May 1991d 311924 237167 393423 296163 At 17 May 1991 Maturity date latcnatrate Amount owmaadfoe (SAtbowaad) CSR United Convertible notes Optionbon& 31 March 1997* ^ 8.00 1248 11 December 1992* ~ ^ rr*,r ~ "2 ______ ______________________________________________________ 1250 Options are held on CSR shares through convertible -- notes and option bonds. For details see the table on this page. ardtepooed in the 1990 annual report. --p--mm; ~ . b For shares on issue at 17 Miyl99irplus$A0.16 ashinv'oashares' to be issued in June and July 1991 in reject ofcashcomributko* __ (received by 28 June 1991) under the'Share Purchase Plan, and oa " No contingent or other liability of the CSR Group has -- become enforceable or is likely to become -- enforceable this year which will or may substantially affect the ability of the group to meet its due obligations. We are not aware of any circumstances, not otherwise --dealt with in this annual report, which would render misleading any amount stated in the reportr-- ~ ''^shares issued as a result of optiooborelrconverted,'Executive'". VShare/Option Plan shares which become fully paid priorto 5 pm on 17 July 1991, and 1986 partly-paid dices which become ------ --folly paid prior to 3 pro on 3 July 1991 r Ct6 232 402 notes were issued in August and September 19S7 f pr ------ratoe SA4.00 each. The notes are convertible, at holder's option. ----------on 28 February every year until 1997 at 100 notes to 100 ordinary __CSR $A1 shares (adjusted for bonus issues). Notes oot converted "WU be repaid at par together with the final interest payment on ----3l-Mrrh 1997. The notes are listed on the Australian Stock -- _-- -. ==xchange. ------- ------- ----------------- ^Eadtaptiaoboodiscunentlyccmvertibieto 10Z6797 ordinary CSR ~'4A1 shares on payment of SA379.99 per option bond anytime until -- Unusual Hems have been covered. The state of affairs of _ the group has not been, in our opinion, substantially affected by any material or unusual matter otherwise --41 December 1992. The conversion rate is adjustable in accordance ___jATth the anti-dilution provisions under the terms of the issue. "The option bonds were issued by CSRT2mSS'm'DecOTbrI985 " a* part of CSR Finance Limited's (100% CSR) issue of than as referred to in this report. US$100 million 7.5% Guaranteed Eurobonds, each of US$5000, --maturing in 1995. The option bonds are listed on die Australian and Matters arising since the balance date have been - ^ntaodon stock exchanges. , -- r.TTrr-- ; " --covered in the appropriate sections of this report Further developments by the time of the annual general meeting will, as appropriate, be reported in the chairman's address to that meeting. results have b^feo^edas appropriate. Further information o^y3^^(!hsvel(^merus in the operations of the group^in|||Hhgthe expected results of those operations in spsequ^rt financial years, would in our opinion preji^e|$b mtmsts of your company and has therefore not teen included in this report. Signed in accordance with a resolution of directors of CSR Limited. ------- ^2-- Ian Burgess .Managing Director 3 June 1991 i-- tr Alan Coates Chairman CSR limited Directors'report 31 Eleven-year performance Year aided 31 March mi 1990 19S9 1988 1987 1986 1983 1984 I9S3 19S2 1981 Profit and lore (SA million) Gross revenue - group revenue plus sales made as agent Trading revenue ------- 5600 5665 4980 4892 4566 - 4516 5265 4444 3438 4658 3942 2672 3209 2418 2077 3648 3003 2212 2796 2183 2074 2704 2044 1852 2506 1936 1757 2679 1763 1603 2932 1828 1652 Depreciation Earnings before long-term inrerest and tax before net interest, foreign exchange and tax Interest on long-term borrowings Income tax expense 236 194 164 145 119 125 120 1)0 109 89 83 703 - 827 621 501 334 286 242 227 189 183 239 671 794 605 421 349 250 229 219 183 154 221 152 . 87 78 112 108 74 73 67 73 53 .......41 190 290 212 190 67 81 68 57 30 35 72 Net profit Before abnormal and extraordinary hems applicable to --CSR shareholders --- for six months to 30 September - for six months to 31 March Afteraboonnal and extraordinary items applicable to " CSR shareholders ____Dividends . 326 -1 407 306 185 150 125 92 92 206 234 147 80 58 55 49 44 120 - 173 159 105 92 70 43 48 324 - 407- 307 186 110 (80) (63) 92 247 291 220 115 102 90 64 64 75 82 112 43 42 61 32 40 _ 51 81~ 81 60 47 127 46 Balance sheet ($A millioo) Curat assets - --"="Propeny, plant and equipment --------- Interests in joint ventures and partnerships "^Investments ^H=%DcBainvestment ==---rFoture income tax benefits 1588 1574 1609 1525 1002 858 796 796 663 771 840 . . -3559--3450 2507 1998 1519 1285 1003 919 996 1016 831 __-- 470 476 496 447 386 272 366 167 156 169 206 194 122 153 r-SS^ - - - 984 1101 271 249 161 147 - ------- - 408 260 82 79 42 - - 34 96 103 133 109 36 37"T 775 -"51 - 31 --^-=136fc 192 168 190 162 249 274 171 89 - 69 57 Current creditors and borrowings Current provisions Non-current crediton and borrowings Deferred income tax and other noo-cuirat provisions Deferredforeign exchange gains Total liabilities Net areata Paid up capital Other reserves Profits retained -------- -- ' --^------ CSR shareholders' funds (capital and reserves) Interest of minority shareholders Total CSR shareholders' fluids (capital and reserves) <228 -6299 ^2.844.^ 907 - 618 1219 1414 - 581 475 3074 3414 3146 2885 778 735 --------- 21465 _1318 555 -121 2798 2533 -348 352 3146 2885 5046 1040 502 596 348 - 2486 2560 697 1164 364 7774 335 2560 4418 772 428 816 294 - 2310 2108 658 1108 278 2044 64 2108 3972 613 165 1007 320 3 2108 1864 619 1003 206 1828 36 1864 3752 775 127 916 310 ____7 2115 1617 533 854 197 1584 33 1617 3116 2960 2710 2660 2298 686 574 393 527 418 128" 132 " 130 "147---m 558 494 568 444 405 326 281 225, 217 185 ___ - ___ - ___ -- 1698 1481 1314 1335 1141 1418 1479 1394; 1325 1157 359 353 338 315 259 628 558 515 495 . 398 367 496 466 442 410 1354 1407 1319 1252 1067 64 72-- 75 ' -73 90 1418 1479 1394 1325 1157 Share information Share issues rights private placements . Shares issued (million) for cash_____ .... I ... ____ '..acquisitions l>ud up capital in SAfshares at'31 Match (SA million) per share (cents) - on issue at 31 Match adjusted for issues* ` "42* - s4B' Dividends per share (cents) fully-paid shares adjusted for issues* 310 400 310 400 Share price adjusted for issues* (SA) high 556 5.78 low .... faj Nettangibleassets (book value) (SA) per CSR share6 442 3.90 536-5.04 341* . 189 Katkaand atatMcs adjusted forissues* 170 150 acwwcsr Renan (ft)on CSR shareholders' funds at 31 March total assets re 31 March , - 54--; ;: 65 < grouprevenue Payout reria (ft) Interestcovar (rises) Getting* (ft) - ... 65 85 76T' 72 . 44"": 95 '273 ~ 319 Cunentrstio U7 1.03 General Group capita] investment (SA million) Group divestments (SA millioo) Shareholders (thousand) 341 272 115 105 Employees (thousand) Wages, salaries and payments to retirement funds (SA miUkxt) Trading revenue per employee (SA thousand) 204 839 220 214 756 202 Profit aftertax per employee (SA thousand) Value added per employee (SA thousand) .165 184 90 79 -- 13 _ 697 44.0 31.4 32.0 32.0 5.06 3.60 4.00 2.88 2.71 13.8 6.1 6.9 72 8.0 18.9 1.04 1538 918 99 183 565 188 16.8 74 - 10 30 658 28.4 28.3 20.0 20.0 4.90 2.60 3.75 2.96 2.81 i-for-10 PP 118 - 619 243 25.6 19.0 19.0 4.40 233 432 3.19 3.01 t-te>3 - 129 44 533 233 253 18.0 173 3.77 2.61 3.07 335 3.06 9.1 4.2 4.7 62 4.5 27.9 1.27 83 3.8 63 68 33 35.1 139 7.9 33 43 72 3.9 363 0.95 1176 336 226 1138 197 695 102 102 101 16.1 13.4 133 480 411 428 166 155 164 113 113 93 66 68 62 6 _ 359 25.7 233 183 173 3.60 2.45 2.86 4.13 335 63 3.0 43 70 33 283 0.98 201 38 102 143 418 145 6.4 57 - PP 15 _ 353 26.0 243 18.0 16.4 4.05 2.41 3.48 4.19 3.69 'm+T. Mart* I-larJ PP - . 23 50 43 5 -l~-4 338 315 259 22.1 26.6 433 213 273 383 18.0 183 18.0 163 16.1 15.7 332 6.35 6.96 233 2.47 4.05 2.45 2.75 5.97 4.08 436 431 3.62 3.68 3.74 pr*- -- 63 3.143 69 3.4 25.0 1.13 5.7- -63 . 2.7-- - 3.1 "35 "5.7" 81 57 2.6 - .33 . 28.9 25.1 137 1.14 103 4.9 6H 42 5.8 26.0 133 247 350 545 226 126 116 89 109 97 97 89 78 143 14.9 16.0 16.1 406 413 378 313 128 118 100 103 63 5.0 5.1 7.0 54 52 41 39 Baaed oo approximately 777 million *h*e which iacJodea penly-peid thins adjuned for Uaprepeatim of their paid-upvalue to fteirwuepiea. b f> jVpmmwn nt the Auttralim Sinefc Fjrftjnyg iSimmI acnf n^ifhied rmtt ofthart* oo ittue idjutted for ntfcO inuet. 1991 fipgp tmed on prelimingy profit nrenuni. c Rnt* ax bcaefitt. deferred turra<rU>OM.tMdwUl.paieats and StdonirkiMt treated taimeiMes.idjufled for minorities d Eeninp before lon*-tenn iatoes. forcijn exeiunfe and tax divided by inures on Icef-wm bonowinp. . KMioofnoB-aeTwxaeditonml borrewieptoiiCtaldartboMen1 fund*phnacooinmcmdiaon andborrowinft. _______ _________ _____________ 32 CSRUmitad Diractors'report li 19*1 '9 2932 3 1828 )3 1652 9 ' 83 3 239 4 221 3 41 5 72 2 112 2 61 -0 51 I 127 7 46 1 840 831 386 133 _J1 57 .2298 -418 133 -405 --183 1141 1137 239 398 410 rjm ---90 1137 J.fcr-5 43 --- 4 --259 435 --385 18.0 15.7 6.96 4.0$ 3.97 451 3.74 6 105 .1 4.9 7 6.1 7 42 5 53 1 26.0 4 153 -5 226 9 109 9 78 .0 16.1 8 313 0 103 1 7.0 I 39 .iS-- --Aii'C.. . .------:-----: ft--- S' CSR -.cry. 1/Vr,jyrLmyju ___ --- V rirrr--^tit'ii" 1 CSflUrmtad financial fttttmtrti 33 Profit and loss statement forth# year ended 31 March 1991 CSR Limited and subsidiaries Operating profit before abnormal items and income tax --Profit (loss) on abnormal items SA million Note 1-8 9 Operating profit before income tax Income tax expense attributable to operating profit 10 Operating profit after income tax Profit (loss) on extraordinary items Income tax benefit attributable to extraordinary items 10 Profit (loss) on extraordinary items afterincome tax ---- 11 Operating profit and extraordinary Hems after income tax Minority interests in operating profit and extraordinary items after income tax ** > *.*2# TZ^TlliOpeniting profit and extraordinary items after income tax attributable to members of CSR Limited "Retained profits at tbe beginning of the year .. Total available for appropriation Dividends provided for or paid 12 Retained profits at tbe end of the year Operating profit and extraordinary Hems after income tax - attributable to members of CSR Limited consists of: Net profit before abnormal irons Net loss on abnormal items Net profit (loss) on extraordinary items Ait.. . Note* lo and tamiDgpHt of the account are amend. 1991 547.6 17.1 1990 739.4 - 564.7 209.7 739.4 289.9 355.0 _ - 449.5 0.5 - - 03 3554) 31.5 450.0 42.6 323.5 480.2 407.4 364.0 803.7 2483 771.4 2913 5552 4803 325.9 (2A) - 3233 406.9 - 0.5 407.4 Parent 1991 1990 340.9 (11.4) 496.5 - 3293 863 496.5 155.2 243.0 341.3 (113) -- - (113) 243.0 330.0 2434) 137.0 330.0 983 380.0 2484 4283 2913 131.T 137.0 2312 (82) - 243.0 3413 -- (113) 330.0 n&stti.-:- 34 CSA United Financial statements Balance sheet as at 31 March 1991 it 1990 CSR Limited and subsidiaries 496.5 496.5 155.2 341.3 (113) (113) 330.0 Current assets L Cash Receivables Investments Inventories Other | Total current assets ----Non-current assets " Receivables Investments Inventories Property, plant and equipment Intangibles ----Other - tt--iT^rrrr- 330.0 983 fatal non-current assets ^~iToUlassets ------------1 SA million Now CoasoUdaud 1991 1990 CSR Pirnt 1991 1990 -' 13 2903 221.8 1143 1033 14 6633 7733 1221.0 1256.0 _15 - 203 16 611.1 539.4 205.0 208.1 17 23.0 193 12.7 103 ------ - ------------------------- ; ____ _ 18 19 20 21.22 23 ---------------- 15873 15743 1553.0 1577.9 -- 92.0 1673 15.9 3558.6 6804 1183 - 158:7 ------------- 13034 ' 17293 305.7 9593 903.8 I8;r' 9.0 93 34503 8083 747.7 695.7 124 13.1 ""T'48-9 46324--4724.7------- ---31593 - 3452.1 ; 62203 6299^^^47123 5030.0 4283 2913 137.0 ~--Current liabilities il. Creditors and borrowings ------- Provisions ___ Total current liabilities Zf23 " 26 S433_ -9074! 7. . . 9163 "10453 5104 TM617.9 3184 - 396.6 13533 15253 *'" 1235.1 1442.1 3413 (113) 330.0 ^aruNon-current liabilities ~r- Creditors and borrowings ____ Provisions Total non-current liabilities , -------------_ ------- Total liabilities ...................... - ! "127 .28 12193 5003 14133 474.9 9524 '1254.8 188.0 186.0 1720.0 1888.4 11404 1440.8 30733 ^'3411727; ^ 2375.1 2882.9 Net assets 31463 28853 23373 2147.1 Shareholders' equity Share capital _--------- ' Reserves' Retained profits||p - v ; . .. .. ................ Shareholder*' ^^| attributable to members of CSk Limited Minority dtard^^i.^utest in subsidiaries 29 7773 735.0 7773 735.0 30 14643 1317.6 14273 1275.1 5553 4803 1313 137.0 27973 3483 2532.8 352.7 2337.1 2147.1 TJotal shareholders' equity Nows to and fonainf put of the accounts *re annexed. 31463 28853 2337.1 2147.1 CSRLimitad financial statements 35 Significant accounting policies used in the CSR Group Basis of accounting. These accounts are based on historical cost accounting conventions as practised in Australia. The accounts have been made out in accordance with the requirements in Schedule 5 to the Corporations Regulations and comply with Statements of Accounting Concepts and applicable accounting standards. Principles of consolidation. The consolidated financial statements give a view ofthe group as a whole. The group consolidates the accounts of all companies in which it holds or controls more than half the issued ordinary or voting share capital or in which it controls the composition of the board of directors. The consolidation process eliminates all inter-company accounts and transactions. In these accounts: To arrive at tax payable, adjustments to income tax expense are made for items which have been included in time periods for accounting purposes which differ from those specified by income tax legislation. The extent to which these timing differences give rise to income tax becoming payable earlier than is indicated by accounting treatment is recorded in the balance sheet as an addition to future income tax benefits. The extent to which timing differences give rise to income tax becoming payable later than is indicated by accounting treatment is recorded in the balance sheet as provision for deferred income tax. Future income tax benefits arising from timing differences and tax losses are not recognised as an asset if there is uncertainty as to whether income will be derived of a nature and an amount sufficient to ensure their realisation. results of subsidiaries which the group acquired or - -^==Valaatioa of non-carreot assets. Certain non-current assets disposed of during the year are included from the date have been revalued at various times and are shown at their ofacquisition or to the date ofdisposal; --~~ ..^Jatest valuation. " ' _____-.~r~- ........... shareholdings in listed and unlisted companies which are not subsidiaries are treated as investments. Only the dividend income from these investments is included in --The basis for revaluations, unless otherwise indicated, is tite value to the company as a going concern. ------------- profit; All non-current assets which have not been revalued are interests in joint ventures are recorded in the accounts shown at cost. ---------- ---------- by including the company's share of assets employed, the share of liabilities incurred, and the share of any expenses incurred in relation to joint ventures in their respective categories; and Increments in the value of a class of assets arising from a --revaluation are taken directly to the asset revaluation reserve. Decrements are either offset against previous "increments relating to the same class of assetor charged interests in partnerships are recorded as pan of ^Ktgainstprofit. " Investments. ~ Companies in the CSR Group are under no obligation to accept responsibility for liabilities of other companies within the group except where such an obligation has been specifically undertaken. mm i \l! `--a.. _zLOepreciatioR (including amortisation and depletion). Assets other than quarry and other raw material reserves*are depreciated at rates based upon their expected useful__ -- economic lives, using the straight-line method. Snap rovtnoo is the total of: Quany and other raw material reserves are depleted over *~-------------------------- ---------the shorter of forty years or the life of the quarry after O trading revenue, including sales (net of discounts,'TM 'kiting into account the estimated residual value. Depletion returns and allowances), fees for services as agent, -------is determined by production for the year as a proportion of rents, royalties and interest on long-term loans; total recoverable reserves. non-trading revenue, including dividend income and proceeds from the disposal of non-cuirent assets; and . The liability method oftax effect led throughout the group. Disposal of non-currant assets. Where a significant business is disposed of any surplus or deficiency is shown as an extraordinary item. Surpluses and deficiencies on the disposal of other businesses and non-current assets are reflected in operating profit or loss. focoroe^^^^xpetee for the year is based on pre-tax accoun^^rt^adjusted far items which, as a result of treatment undfrincome rax legislation, create permanent differences between pre-tax accounting profit and taxabl - income. Leased assets. Assets acquired under finance leases are capitalised. The initial amount of the leased asset and corresponding lease liability is the present value of the minimum lease payments. The assets are amortised over die life of the relevant lease or, where ownership of the asset is likely to be obtained, the life of the asset Lease payments are allocated between interest expense and lease liability. The interest component is charged against profit when paid. Operating leases are expensed as incurred. 36 CSfl limited Financial atatamant* d in >m ' to x ting ion to come anting nfor ences is i ation. >ets t their i,is are oma t ts ged its i over St oletion don of tiness an e ire ire .d the :lease >ned* nse and :ainst CSR Afforestation. Forests are initially shown at cost at the time of acquisition by the group. The increase or decrease in the total volume oftimber in the forests is calculated each year at commercial rates, after making allowances for some loss in the harvesting of timber and calamities such as fire and pestilence. The amount of this gain or loss is recognised as profit or loss for the period. Log licences are recorded at cost and are amortised over the lives of the licences. Expenses related to growing timber are charged against profit as incurred. ____ Transactions such as cross currency swaps and forward foreign exchange contracts which do not give rise to separate assets and liabilities are not recognised in the balance sheet. Contributions to superannuation funds. The CSR Group participates in several superannuation funds which provide benefits upon the disability, retirement or death of employees. Contributions to these funds are expensed as incurred. Additional details on the group's superannuation funds are "^provided in note 41. ----- Inventories including work in progress are valued at the lower of cost and net realisable value. Overheads directly related to production are included when calculating Associated companies are those in which the group has a material investment and has capacity to significantly influence their financial and/or operating policies. inventory costs. - information on associated companies is riot The value of inventory is derived,by the method most included in the profit and loss statement or balance sheet appropriate to each particular class of inventory. The major--- prepared in accordance with the Corporations Law.lt is ~ portion is valued on either a first-in-first-out or average ~"^shown by way ofsupplementary information'in note 38. -- cost basis. _- !"" *'! ___ ___ ~ ^Intangibles. Goodwill acquired or arising on consolidation ^ Foreign currency. .. ;Tjs included in non-current assetsand systematically Translation of foreign currency transactions. Foreign =-^amortised to profit and loss over the period in which the currency transactions are converted to Australian dollars ^>eae^ ^ expected to arise. The period over which at exchange rates ruling at the dates of those - .. -- goodwill is amortised does not exceed twenty years. ~ ' transactions. Amounts payable and receivable in foreign 7fa> ^namortised balance of intangibles is reviewed at each currency at balance date are converted to Australian balance date and charged to profit and loss to the extent dollars at exchange rates ruling on that date. ^future benefits are no longer probable. -Exchange differences arising from the conversion of and trademarks are included in the acrounts at the amounts payable and receivable in foreigoiurrencies ^ of acquisition. No amortisation is provided until an g* are treated as operating revenue and expenses in me -^'event occurs which results in a loss or limitation ofthe period in which they arise. --useful life of the asset. Translation ef foreign c^ncyfinamriajttatMaents. Assets and liabilities of overseas branches and subsidiaries are translated at currency conversion rates ruling at balance date. Revenue and expense items of overseas branches and subsidiaries are translated at the rates ruling at Rounding amounts to noarestSA 0.1 million. Unless otherwise shown in the accounts amounts have been rounded to the TvOearest tenth of a million dollars and are shown by---------- end of each month. Exchange differences arising on these translations are recorded in the foreign currency translation reserve. Hedging of foreign currency conwrtwm*. Exchange ^GSR Limited is a company of a kind referred to in _ Schedule A of the National Companies and Securities ~ "Commission Class Order No 630. ~ differences on the specific hedging of revenue and --All rounding has been conducted in accordance with that expense items are deferred until the date of purchase or class order. sale at which time they are included in the measurement of the transactions to which they relate. and thehedging of amounts payable and receivs^^rare jnduded in profit and loss in die period in which isiegv - - Exchange differences on transactions which hedge a net investment in overseas branches and subsidiaries are transferred on consolidation from profit and loss to the foreign currency translation reserve together with the applicable amount of income tax. Costs or gains arising at the time of entering into hedge transactions are accounted for separately and brought to account in profit and loss over the lives of the hedge transactions. CSR Limited Financial statements Consolidated statement of source and application of funds for the year ended 31 March 1991 CSR Limited and subsidiaries Source of funds Operations Trading revenue Less outgoings after adjustment for non-fund items Dividend income Fuads from operations Proceeds from disposals of non-current assets Ordinary and abnormal items Extraordinary items Proceeds from share issues CSR shareholders Minority shareholders in subsidiaries Term debtors Repayments Less new debtors Increase in term creditors 1991 SA million 1990 SA million 4566.5 3S79A 340.8 - 687.4 24.7 712.1 340.8 10.8 23 195.6 0.1 8J 2.6 1259.5 4516.1 3637.5 228.2 43.9 5.0 0.2 878.6 24.1 902.7 272.1 166.2 3.8 4.8 2.6 1352.2 Application of foods Non-current assets acquired* Property, plant and equipment Intangibles Shares in new subsidiaries Additional shares in existing subsidiaries Other investments Long-term loans Made Less matured and repaid Capital expenditure Long-term borrowings Received Less repayments and borrowing costs Movement in operating working capital Inventories Receivables and other current assets Creditors Increase in deferred costs Income tax paid Dividends paid CSR shareholders Minority shareholders in subsidiaries Increase in liquidity* ~ ..w-.v .wpr'- a TVacquilfciep and disposal ofsubsidiariesare reflected in shares acquired and procsadltaai divestments respectively. TVrefore the assets aid liabilities of linn iiiiagTliiiii in not inrlnilnit slifr Inn 1 41L8 15.4 512 478.4 476.5 293 839.8 1.0 137.0 1483.8 55.7 81.4 (53231) 734J (25.7) 452.7 201.4 40.1 15.8 24.3 1508.1 (962.9) 175.7 (787.2) 73.9 (132.7) 35.3 (23J) 14.0 2S0J 129.4 (47.4) (17.9) 64.1 23 188.6 299.6 36.0 335.6 12303 29.0 12593 239.5 27.1 266.6 1242.7 109.5 1352.2 b Liquidity comprises cash, short-term loans and current investments less bank overdrafts and short-term bonowings and is adjusted for balances with the Queensland sugar industry. TVdisposal afVbridiartes affected the group acconms as follows: Ntfaroets Property, plant and equipment Inventories Receivables Non-currentcreditors and borrowings Provisions Disposed of $A million 3.7 2.1 0.8 (0.3) (0.1) Consideration Cash for shirts in subsidiaries Set profit on disposal before income tax 6.0 6.4 (0.4) Faadsfrom operations comprises: Opening profit Depreciation Transfers to provisions Payments from prov isions Surplus on disposals of non-currem assets Net foreign exchange losses i gains) Other 199! $A million 5474 236.3 129.7 (176.7) (214) 04 (3.7) 712.1 1990 SA million 739.4 194.4 142.1 (1S1.4) (234) 03) 4.0 902.7 38 CSR United Financial statements Notes to and forming part of the accounts CSR Limited and subsidiaries 1 Operating profit Group revenue Less: interest income from short-term deposits non-trading revenue Trading revenue Operating costs Depreciation Trading profit Dividend income Surplus on disposals of non-current assets Operating profit before net interest, foreign exchange and income tax Net interest expense Net foreign exchange gain Operating profit before abnormal items and income tax SA million 2 Interest income from short-term deposits Interest income from: subsidiaries others Interest income included in group revenue Less interest income from long-term loans Note 2 3 4 5 6 3 Non-trading revenue Dividend income from: subsidiaries others Proceeds from disposals of non-current assets: ordinary and abnormal extraordinary----------- * ____ 4 Opereting costs Cost of sales Warehouse and distribution costs Selling costs Administration and other costs - Total operating costs The above amounts include transfers to (from) provisions for: Annual and sick leave Contract losses Diminution in valuerf investments v Doubtful debts: trid^i . Fringe benefits Long-service teaw*|'i ; Plant overhaul' ' Uninsured lossesa^&ture claims Other costs , Operating costs also include: Contribution to employee retirement funds (refer note 41) Mining royalties paid to government Operating lease and rental payments (No government subsidies were received or receivable) ___ __ .. . Consolidated 1991 1990 CSR Parent 1991 1990 4979.5 47.5 365.5 4566.5 3705.1 236.3 625.1 24.7 21.5 4892.3 80.0 296.2 4516.1 3575.6 194.4 746.1 24.1 23.5 671.3 123.7 - 547.6 793.7 60.0 (5.7) 739.4 22343 303 1293 2074.1 1743.6 683 262.0 120.7 LI 2479.1 55.7 172.0 2251.4 17723 61.9 417.3 142.4 5.4 3833 433 (0.9) 340.9 565.1 83.4 (14.8) 4963 *-- . ------------- 50.4 50.4 2.9 47.5 " -- sy.9 85.9 5.9 80.0 16.1 ------------- 223 393 83 303 _________ 23.6 58.9 823 26.8 55.7 24.7 340.8 - 365.5 24.1 2283 43.9 2963 120.7 _ .- 8.9 - 1293 142.1 03 223 7.1 172.0 2920.8 137.8 373.7 272.8 3705.1 2846.8 993 331.8 2973 3575.6 58.0 83 (8.1) 5.4 (2.2) 4J) 9.6 113 31.7 113 129.7 56.4 0.1 7.8 17.6 2.3 3.4 113 12.4 173 13.3 142.1 263 2.0 343 29.8 23 253 13553 663 1613 1593 1743.6 1388.7 603 171.6 151.4 1772.2 293 8.4 103 13 (23) 23 6.7 93 113 11.7 883 28.8 _ _ 113 (03) 2.1 83 10.1 9.0 83 77.6 12.0 03 273 18.4 0.7 18.0 CSti United financial statements Notes aend taming pearnt of the accounts CSR Limited and subsidiaries 5 Depreciation Amounts charged for depredation, amortisation and depletion of: leased assets other property, plant and equipment goodwill SA million ConoUdatcd 1991 1990 2.4 216.4 17.5 236.3 2.7 \T!2 14.5 194.4 Paarretant 1991 1990 0.7 66.8 1.0 68.5 0.7 60.3 0.9 61.9 6 Net interest expense Interest paid or payable on: long-term debt to: subsidiaries others short-term debt to: subsidiaries others Finance leases Total interest expense Less interest income on short-term deposits (note 2) Net interest expense charged against profit ........... ____ __ ......................... $A thousand 7 - Auditors'remuneration Amounts received or due and receivable by auditors for auditing tbe accounts other services Induded above are amounts received or due and receivable by auditors other than the auditor of CSR Limited for auditing the accounts other services 150.1 19.1 2.0 171.2 47.5 . 123.7 84.1 52.7 32 140.0 80.0 60.0 CmmIMiM 1991 1990 3345 1610 2904 828 951 616 552 596 47.0 12.1 12-3 23 0.6 743 30.5 43.8 75.8 18.6 39.9 3.7 1.1 139.1 55.7 83.4 1991 1990 1784^ 90S* 1662 274 8 Directors' and executives' remuneration Aggregate income received or due and receivable by: directors of: CSR Limited subsidiaries ~ Australian executives whose total income equals or exceeds S100 000 Amounts paid to superannuation funds in respect of the directors' and executives* retirement* 2302 3479 5781 6461 348 1927 3061 4988 5187 339 2302 2302 5997 - 1927 1927 4845 177 Consolidated 1M1 1990 Parent 1991 1990 Consolidated 1991 1990 Parent 1991 1990 The number ofdirectors and Australian executives whose total income fell within the following bands: Directors ' $10000$*9999^ $300001^^^ $400001^^99^?:- $60000to999U $noocniiil99s& . '- t $250000 to $259 999 AustraBan executives $100 000 to $109 999 $110 000 to $119 999 $120 000 to $129 999 $130 000 to $139 999 $140 000 to $149 999 $150 000 to $159 999 $160 000 to $169 999 $170 000 to $179 999 $180 000 to $189 999 $190 000 to $199 999 45 49 63 42 23 13 11 5 22 11 Directors 1 $280 000 to $289 999 7 $350 000 to $359 999 7 ... $380 000to$389 999 1 $460 000 to $469 999 1 1 $480 000 to $489 999 $540 000 to $549 999 1 $610 000 to $619 999 Australian executives 45 49 $200 000 to $209 999 $240 000 to $249 999 53 42 $250 000 to $259 999 $280 000 to $289 999 22 13 1 $310 000 to $319 999 $350 000 to $359 999 $380 000 to $389999 4 22 1 $460 000 to S469 999 $480 000 to S489 999 $610000 to S619999 I 1 1 1 1 1 1 1 1 1 a The dnctoB believe the provisionof full particulars would be unreasonable having regard to the number of persons to whom those particulars relate. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 CSRLimited financial statements Notes to and forming put ot the accounu CSR Limited and subsidiaries $ Abnormal items Loss on disposal of associated company Profit on disposal of associated company Income tax expense Provision for plant closure Income tax benefit Writeback of provisions relating to prior business disposals Income tax expense Abnormal items net of income tax SA million 10 Tax effect accounting Income tax expense Reconciliation of income tax expense charged in the profit and loss statement with income tax calculated on operating profit and extraordinary items. Operating profit and extraordinary items ........ Income tax expense calculated at 39 cents in the dollar -------. ---- Increase (decrease) in tax expense due to: non tax deductible: depreciation ____ ---- loss on disposal of associated company provision for diminution in value of investments provision for loss on business disposals provision for product liability of businesses closed other expenditure reassessment of future income tax benefits ---------- prior year capital losses recognised excess of net tangible assets over consideration for subsidiary acquired non-taxable surplus on disposals of assets rebates on dividends received overseas tax rate differential other items Income tax expense on current year's operating profit and - extraordinary Hems -- ------Income tax underprovided in previous years -------- Total income tax expense on operating profit and extraordinary items Total income tax expense comprises additions to: (novision for current tax provision for deferred tax -------- -- future tax benefits ' ------ Future income tax benefits attributable to tax losses carried forward as an asset Future income tax benefits not taken to account Balance at beginning ofyear Adjustments for subsidiaries acquired and disposed of Benefits (recognised) not recognised^-rv- Balance at end qf^ea#^ __ _______ j_________________________ __ Mr Consolidated 1991 1990 CSR Paieat 1991 t990 (36.0) 56.7 (20.3) (14.0) 3.2 10.4 (2.4) (2.4) - .. - - (1.6) * (14.0) 3.2 4.2 - (8-2) _ - 564.7 2202 739.9 288.6 122 13.4 (3.4) _ 5.1 (2.7) (142) - (11.4) (9.6) (02) (02) 12.4 3.4 5.1 5.9 - (82) (17.7) (9.4) (0.8) (32) 2082 1.4 209.7 286.6 3.3 289.9 1922 322 (152) 209.7 267.1 27.6 (4.8) 289.9 16.0 72 13.1 42 (172) - 42 (4.2) 13.1 13.1 329.5 485.2 2282 - 1892 32 32 3.9 22 _. 5.1 3.5 (7.4) t _- (02) ? (47.1) ........... 22 (1.1) ' (552) 32 862 0.4 -862 147.9 72 - 155.2 792 12.0 (42) 862 134.2 222 (12) 1552 _ 0.7 72 - (72) - _ 7.2 72 CSR Limited Financial statements Noes to and forming pmoftte accounts CSR Limited and subsidiaries SA million 11 Extraordinary hems Surplus on business disposals Provision for loss on business disposals Excess of net tangible assets over consideration for subsidiary acquired Provision for product liability of businesses closed Asbestos: provision for claims legal and other costs Extraordinary items net of income tax 12 Dividends Interim dividend paid fully franked Final dividend proposed ftilly franked 13 Cash ... Cash at banks and oq band .............. .........._M_. Short-term Joans and deposit* ~~------- --- 14 Current receivables Tradedebtors "5'"" ' Provision for doubtful debts Amounts owing by subsidiaries Provision for doubtful debts ______ Provision fordoubtful debts _ _-- Bad debts written off against provisions . Trade debtors Other debtors _____ 15 Current investments' (^nttd on stock exchanges at cost Debentures Government stock ............ ................ ...................~ Mmfat value ofqraad investioeatsiaeqDai to cost value. ~ - -- r ** Cooeottdeted 1991 1990 - 20.5 - (28.4) - 21.4 - (54) - (6.1) - (1.4) -- 0.5 Parent 1991 1990 -- 6.0 - (4.3) -- - (S3) - (6.1) - (1.4) - (11.3) 122.0 126.5 248-5 114.2 177.0 291.2 122.0 114.2 126.5 _ .177.0 248.5 2912 133 276.7 2904 _______ 7.774.7 . 217.1 - --^=306.7- -,,- r99.9 -221.8-------- 1144- 1034 6024 (244) 5774 728.0 (353) 692.7 884 (24) 854 6632 . 96.9 (16.1) 80.8 7733 174 7J . 9.1 3014; (143 2874- 8954 (6.7) 8884 --H6-4 (LI) 454 1221.0 366.9 (23.6) 343.3 . 885.8 (1.1) 884.7 -i-29.6 (14) 28.0 1256.0 104 4.8 ____ 0.1 _______ - 16.4 4.1 204 CSRUmkad financial statements Notes io ana torminc pan oi me accounts CSR Limned and subsidiaries 16 Current inventories Raw and process materials and stores Provision for diminution in vaiue Work in progress Finished goods Livestock $A million 17 Other current assets Prepayments 18 Non-current receivables Amounts owing by subsidiaries Loans to employees* Directors of group companies* Other staff Other loans Provision for doubtful debts Term debtors ------- -- t includes loans to directors of CSR limited. Amount before rounding S0.033 million (1990 S0.033 million). There are no louts to non-executive directors, b Amounts before rounding - consolidated 51.239 million < 1990 51378 millioa). parent SI 339 million (1990S1.378 million). 19 Non-current investments ___ Shares in subsidiaries - not quoted on stock exchanges At directors' valuation 1967* At cost Provision for losses in subsidiaries Shares in other companies - not quoted on stock exchanges At directors' valuation 1978* At cost Provision for diminution in value Shares in other companies -quoted on stock exchanges* Atcost Total shares in otfyircompanies Debentures and gtgggrgroent stock - not quoted on Stock exchanges (at cost) Interests in partn^^ips (atcost) a Shares not quoted on sock exchanges woe revalued by the director* by reference to the tangible .assets of ihe respective investee companies, b QuoiedmarketvalueS13.9million(l990Sml). c Details of the group's significant investment is shown in note 38. Consolidated 1991 1990 235.4 (23) 232.9 41.4 336.2 0.6 611.1 225.0 (2.8) 222.2 31.6 284.9 0.7 539.4 CSR Parent 199! 1990 87.7 (0.6) 87.1 13.0 1043 0.6 205.0 108.9 (0.4) 108.5 10.3 88.6 0.7 208.1 23.0 19.3 12.7 10.3 1.2 184 585 (3.9) 74.2 17.8 92.0 1.4 16.4 120.8 (5.8) 132.8 25.9 158.7 1242.0 ' 13 184 263 - 16274 _ 1.4 163 61.1 (1.9) 12884 15.0 17043 25.0 13034 1729.3 03 1403 (2.1) 138.1 1383 03 3034 (103) 293.1 293.6 16.0 154.6 0.1 123 1673 -- 293.6 0.1 12.0 305.7 0.1 957.0 957.1 (103) 946.9 0.1 8913 8913 (0.1) 8913 03 - 03 - 03 0.1 123 9593 03 0.1 12.0 903.8 CSR limited financial statements Notes to and forming pan of the accounts CSR Limited and subsidiaries *4 20 Non-current inventories Raw and process materials and stores Finished goods i Livestock 't SA million Consolidated 1991 1990 13.8 u 1.0 15.9 14.1 3:0 1.0 18.1 Parent 199! 1990 6.9 5.3 LI 3.0 1.0 1.0 9.0 9.3 21 Property, plant and equipment Land and buildings* Quarry and other raw material reserves Plant and equipment Growing timber and log licences Total property, plant and equipment (details given below) Land and buildings At directors' valuation 1984 1985 At independent valuation 1985 1987 Accumulated depreciation At cost Accumulated depreciation Quarrv and other raw material reserves At cost Accumulated depletion -- Plant and equipment At directors' valuation 1962 1985 At independent valuation 1985 1987 At assessed value - leased assets 'Accumulated: depreciation-valuation amortisation-leased assets At cost Accumulated depreciation Growtagtti&ber and k>g Bcences . Growing tlratrtfcost AccurnuUMEyaiueof increase in timber volume AjS^a!^i'S?2 v' Log licences at cost Accumulated amortisation Total property, plant and equipment a The group obtains a current value for its interest inland and buildings every 3 years. The values as 3! March 1990 were SI 164.8 million (consolidated). $383.8 million (patent). Fluctuations in value may have occurred since this date. 875.1 622.0 1931.6 129.9 3558.6 890.6 644.3 1791.7 123.9 3450.5 2.0 9.0 81.4 12.1 104.5 (11.1) 93.4 875.9 <94.2) 781.7 875.1 2.0 9.0 86.2 123 1093 (9.6) 99.9 8713 (80.8) 790.7 890.6 65U (293) 622.0 664.9 (20.6) 644.3 10.0 13.5 89.4 8.7 263 147.9 (54.2) (18.4) 753 3040.9 (1184.6) 18563 19313 10.6 133 89.6 8.9 273 150.1 (49.3) (18.8) 82.0 27593 (1049.8) 1709.7 1791.7 793 19.7 983 343 (33) 31.0 129.9 35583 792 12.9 92.1 34.6 (2.8) 31.8 123.9 34503 192.0 29.6 586.7 - 8083 173.8 40.7 533.2 - 747.7 2JO 9.0 78.1 - 89.1 (10.1) 79.0 140.0 (27.0) 113.0 192.0 2.0 9.0 82.8 - 93.8 (8.8) 85.0 110.6 (21.8) 88.8 173.8 32.7 (3.1) 29.6 453 (4.8) 40.7 9.9 133 89.4 143 127.0 (463) (8.6) 72.1 872.7 (358.1) 5143 586.7 103 133 89.6 0.1 14.4 128.1 (41.3) (8.1) 78.7 770.1 (315.6) 4543 533.2 -.. 8083 747.7 44 CSR limited Financial statements 'arcnt 3.0 l0 173.8 40.7 533.2 - 747.7 2.0 9.0 82.8 _ (8.8) 85.0 110.6 (21.8) as $ 173.8 45.5 (4.8) 40.7 103 133 0.1 14.4 (8.1) 78.7 770.1 (313.6) 454.5 Notes to and forming pan ot the accounts CSR Limited and subsidiaries SA million ! 22 Movements in consolidated property. plant and equipment Gross book value Balance at beginning of year Assets: acquired disposed of in subsidiaries disposed of Foreign currency movements Increase in timber volume Revaluations and reclassifications Balance at end of year Depredation and other provisions Balance at beginning of year - Provisions raised Depreciation on assets: - disposed of r in subsidiaries disposed of - Foreign currency movements Revaluations and reclassifications ... ___ - -rr.- Balance at end of year Net book value of assets at end ofyear 23 Intangibles -- Goodwill at cost Accumulated amortisation Patents andtrademarks at cost 24 Other non-current assets Future income tax benefits Deferred costs Other --- Land and buildings Quarry and other raw material reserves CSR Plant and equipment Growing timber and log licences Total 981.0 19.2 (46.7) (2.7) (12.6) - 42.2 980.4 90.4 14.7 (1.0) (0.1) (1.4) 2.7 105.3 875.1 $A million 664.9 1.8 (6.4) - (15.1) - 6.1 651.3 2909.6 390.8 (513) (2.1) (20.6) - (37.4) 3188.8 20.6 8.9 - - (0.2) - 29.3 622.0 1117.9 1943 (43.0) - 0.0) (9.7) (13) 1257.2 1931.6 CtwsoUdued 1991 1990 126.7 _ (0.3) -- 6.8 - 1333 4682.2 411.8 (104.9) (4.8) (48.3) 6.8 10.9 4953.7 2.8 1231.7 1.0 218.8 - ~ ,_** - (03) 3.3 129.9 (44.0) VS" (1.1) (113) 1.0 1395.1 3558.6 Fiirett 1991 1990 546.1 554.2 173 16.4 _ (483) (31.0) (43) (3.4) 4973 1823 5233 1723 123 03 13.0 0.1 680.6 695.7 123 13.1 883 273 2.4 1183 80.5 133 2.3 96.0 53.1 133- - 663 48.9 _____.. - 48.9 747.7 * A CSR limited Financial statements Notes to and forming pm of the armmn CSR Limited snd subsidiaries 25 Current creditors end borrowings Current maturities of long-term loans Secured Debentures* Finance lease liabilities6 Other Unsecured Bank Notes6 Other Bank overdraft: secured* unsecured Short-term loans - secured* Bank Other Other short-term loans - unsecured Creditors Trade Other Amounts owing to subsidiaries SA million Current maturities oflong-term loans are repayable in the following currencies: (Australian dollar equivalents are shown) Australian dollars United States dollars Other currencies -- _ _____ a Debentures were recured by a floating charge over certain assets of CSR Limited and the b Secured by acharge overthe leased assets, c Includes convertible notes. Refer to note 29 for details. d St-eMgrf hy riurp Hw MOH rrferrttin mlwiHify rowptiM> c! I O' ! 26 Current provisions Annual and sick leave Asbestos claims and costs Contract losses Dividend Fringe benefits tax Income tax Long-service leave _ Loss on bu&pip disposaii Quarry sheTmpatiotf Pension ant^riOS.aSowances Plant ovhK^;?^p::...' Kantclosuri^^vKf:*k.' Other 1 Consolidated 1991 1990 Parent 1991 1990 _ 33 0.6 129.8 0.6 0.8 135.1 2.9 17.4 203 1.7 _ 179.1 1803 3933 113.7 5073 8433 17.0 4.5 0.8 1.1 138.7 11.6 173.7 6.7 23.2 29.9 3.7 0.8 156.0 1603 4483 94.8 543.3 907.4 8.3 1.7 1.7 - 0.4 98.0 - 0.3 1.7 108.7 _ 9.0 17.8 9.0 17.8 ___ -- _ _ 2.7 ^w 33 - 2.7' ..............33 1424 733 6873 9023 9163% 176.9 18.7 719.9 9153 10453 23 132.7 03 135.1 1593 14.0 03 173.7 0.1 107.0 13 1.7 --- 1.7 1083 51.9 93 73 125.1 13 2263 15.0 03 4.1 2.4 23 14.0 313 18.1 510.4 53.8 8.7 0.1 1763 13 289.0 24.8 11.1 4.8 4.0 3.7 15.1 25.4 617.9 263 93 73 125.1 03 103.7 113 _ 1.4 13 13 144 94 73 318.9 263 8.7 176.2 0.8 143.1 18.7 _ 13 1.6 1.7 73 10.8 396.6 48 CSR Limited Financial statements Parent J07.0 1.7 ~108.7 umJ forming pan of lite accounts 5R Limited and subsidianes Non-current creditors and borrowings j^oBg^enn loans ""Secured Bank* Finance lease liabilities3 Other5 --.Unsecured Loans from subsidiaries ----i-Bank Notes 1-- Other r-Term creditors CSR convertible notes - unsecured0 -T_- -- Non-current creditors and borrowings are repayable in the =~ following currencies: (Australian dollar equivalents are shown) . . Australian dollars United States dollars =*'-**? Other currencies SA million --Total non-current creditors and borrowings will mature as follows: Year ending March 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 and after Creditors and borrowings without fixed maturity date CSR convertible notes a Refer to note 25 for deoils of security. b Secured by a charge over subsidiary company asaets. .. c indudes convertible notes and option bonds. Refer to note 29 fordetails. 28 Non-current provisions Annual and sick leave Deferred income tax Long-service leave Loss on business disposals Quarry site restoration. ,, Pension and retiring allowances ^ ' Product iiabil^ofbusinesses closed Uninsured lossefrand future claims* Other ;% a Consolidated 1991 1990 5.0 2.8 13.4 16.4 7.7 10.9 904.4 255.9 18.6 12.9 14 1219a 1014.6 340.3 16.2 10.7 1.6 14134 125.5 10884 4.9 I2I9.2 119.7 1284.5 9.3 14134 266.7 138.0 174.7 219.9 3784 6.6 19.7 04 02 11.0 12154 2.1 14 12192 2.7 370.7 444 274 164 14 19.4 74 104 5004 2.0 344.2 334 274 14.6 1.8 30.1 9.8 11.4 474.9 CSR Parent 1991 1990 - 4.4 _ 938.7 _ 7.6 14 952.0 _ 6.2 1.2 1245.3 04 1.6 1254.8 9504 14 - 952.0 1248.6 62 - 1254.8 724 354 04 1364 > 9.7 ; 62 l 194 - 2814 6694 14 952.0 24 118.7 314 - 04 194 74 8.7 188.0 1.7 107.0 234 74 _ 0.3 30.1 8.1 8.1 186.0 I CSR Limited Financial statements Notes to and forming pan of die accounts CSR Limited and subsidiaries SA million 29 Share capital Authorised capital 2 000 000 000 ordinary shares of $1 each {1990 - 2 000 000 000) Less: unissued capital over which options are held* other unissued and uncalled capital Paid-up capital Paid-up capital comprises: 776 498 003 ordinary shares of $1 each fully paid (1990 - 732 281 904) 1 769 727 ordinary shares of $1 each partly paid to $0.50 (1990 - 4 794 795) 4 075 000 ordinary shares of $1 each partly paid to $0.10 (1990 - 3 127 000) 782 342 730 ordinary shares on issue (1990 - 740 203 699) a O 6 232 402 notes were issued August *nd September 1987 at par value SA4.00: the notes art convertible, at holder's option, on 28 February every ye* anal 1997. Notes not convened will be repaid at par on 31 March 1997. Number of notes not converted 311924 (1990-393423). Options held on ordinary shares 311 924(1990 - 393423). O 340 000 option bonds of SA3S0 each paid to $0.0! were issued December 1985: each option bond is convertible to 102.68 ordinary CSR SI shares at any time until 11 December 1991 Numberof option bonds not convened 237 167(1999-296163). Options heldon ordinary shares 24353263(1990 - 30409927). /I ------... Particulars ofshares issued during the year by CSR Limited On Issue 31 March 1990 Share Purchase Plan reinvested dividends cash contributions Employee Share Plan Executive Share/Option Plan Convertible notes convened Option bonds converted Partly paid to fully paid -----------____ __ . Total movements during year -------- On issue 31 March 1991 Issued from 1 April to 17 May 1991 Partly paid to fully paid -- Particulars ofshares issued during the year to minority shareholders in a subsidiary company Bradford Enercon Inc Consolidated 199! 1990 Parent 1991 " 1990 2000.0 24.7 1197.5 777.8 2000.0 30.8 1234.2 735.0 776.5 0.9 0.4 ina 732.3 2.4 0.3 735.0 2000.0 24.7 1197.5 777.8 2000.0 30.8 1234.2 735.0 776.5 0.9 0.4 777.8 1323 2.4 0.3 735.0 Ordinary SA1 shoes Partly paid - : '. Fully paid ----- Issue price SA ------ Equity hmds $A million 7 921 795 732 281 904 948 000 (3025 068) (2 077 068) 5 844 727 (86 932) 29 884439 --3663 610 1 222800 281000 81499 6057683 3025068 44216099 776498 003 -398299 86932 4.80 4.73 5.18 5.18 4.00 3.70 2.50 , 143-5 173 6.3 1.3 0.3 22.4 4.5 195.6 5.08 3.85 Numberof shares issued Class of Issue price Purpose of shares SA___ . issue 60 Preferred A SCAN 1000 At par Refinance 48 CSfl Limited financial ttataroont* >0.0 *0.8 '5.0 '2.3 2.4 03 ;nds lion 3.5 7.3 6.3 1.3 0.3 2.4 -of sue ice -- Notes to and lormtng pan of the accounts CSR Limned and subsidiaries 30 Reserves Share premium Capital Foreign currency translation Total reserves Movements in share premium reserve Balance at beginning of year Premium on shares issued Balance at end of year ! Movements in foreign currency translation reserve ! Balance at beginning of year Exchange differences relating to overseas net assets: net (loss) gain on translation net gain (loss) on hedge transactions Reserves of subsidiaries disposed of Balance at end of year SA million 31 Contracted capital expenditure, lease and hire expenditure Contracted capital expenditure Estimated capital expenditure contracted for at balance date but not provided for, payable within 1 year Contracted (ease and hire expenditure commitments not otherwise provided for in the accounts: land and buildings quarry and other raw material reserves plant and equipment Contracted lease and hire expenditure comprises: Operating leases Non-cancellable payable: within I year between I and 2 years between 2 and 5 years after 5 years Other payable: within 1 year between 1 and 2 years between 2 and 5 years after 5 years - Total operating lease and hire expenditure Finance leases payable: . ^ within 1 year between l and 2 years between land 5 years after5yea , Total mimmtsnfihance lease payments Less amount*providedfor in the accounts: current feaiseiiabilrtres non-current lease liabilities -^Finance lease expenditure not otherwise provided for in the accounts Total contracted lease and hire expenditure not otherwise provided for in the accounts Consolidated 1991 1990 1329.3 149.1 (13.6) 1464.8 1176.5 149.1 (8.0) 1317.6 1176.5 152.8 1329.3 1048.5 128.0 1176.5 (8.0) 03) 1.6 0.1 (13.6) (33.1) 34.8 (10.2) 0.5 (8.0) GSR Parent 1991 1990 13293 98.4 0.1 14273 11763 98.4 0.2 1275.1 11763 1523 13293 10483 128.0 11763 0.2 (0.1) - - 0.2 - 0.1 0.2 - - --. 32.8 27.9 137.4 27.4 37.0 201.8 76.1 12A 22.0 110.5 19.2 17.0 37.7 64.6 138.5 1U 9.6 14.4 25.2 60.6 199.1 4.9 73 7.0 19.4 33 13.4 2.7 201.8 10.9 10.4 12.7 34.4 68.4 5.6 4.5 11.8 16.6 38.5 106.9 6.8 5.7 10.9 1.1 24.5 43 16.4 3.6 1103 4.7 6.9 109.9 ' 143 163 71.0 123 17.6 141.6 100.9 15.1 123 25.4 563 109.0 63 53 9.6 103 32.1 141.1 2.0 43 -- 6.6 1.7 4.4 03 1413 113 10.4 13.0 26.7 61.3 5.4 4.7 113 14.9 36.6 97.9 23 23 5.9 - 10.9 1.7 63 3,0 100.9 CSR Limited financial statement* Notes to and forming pan of the accounts CSR Limitedand subsidiaries 32 Contingent liabilities Contingent liabilities, capable ofestimation, arise in respect of the following categories: CSR Limited Various performance and other guarantees provided to third parties Subsidiary companies Guarantees given by CSR Limited in respect of: amounts borrowed by CSR Finance Ltd and CSR America. Inc leverage lease commitment ofAustocean Pty Ltd Other SA million Other persons Other contingent liabilities Liability as self-insurer - the parent company acts as an authorised self-insurer in New South Wales, Victoria, Western Australia, Australian Capital Territory and South Australia for workers' compensation insurance. Adequate provision has been made for potential claims. . The maximum contingent liability of the parent company and its subsidiaries for termination benefits under service agreements with directors and persons who take part in the management of the company is S3.7 million. _ A provision for CSR Limited non-executive directors' retirement benefits of $0.4 million is included in the accounts. CAlNftlUilNt 199! 1990 5.9 4.9 6.1 6.1 - 12.0 2.5 2.5 9.8 17.2 ... ---- ------ 33 Interests in joint ventures Interests in joint ventures are included in tbe accounts in the following categories: Current assets Receivables Inventories ___ Non-current assets Inventories -- Property, plant and equipment Other * Total assets employed in joint ventures Current liabilities Creditors and borrowings Provisions Non-current liabilities Provisions Tomago Gove iture ofjolnt venture production after delivery costs Mat veuve Principal activities Details ofinterests injoint ventures Tomago aluminium Gove bauxite, alumina Total interests in joint ventures % Interest 35 30 SA million IS 36.0 38^ IS 23.7 25.2 2.9 242.1 10.5 255.5 294.0 4.2 222.4 11.5 238.1 263.3 28.7 2.7 31.4 20?7 3.6 24.3 4S 4S 35.9 258.1 35.0 3.9 3.9 28.2 235.1 _ 95.2 94.2 87.0 85.7 Cooaotltfued 1991 1990 193.7 64.4 258.1 201.9 33.2 235.1 Parent 1991 1990 5.9 4.9 1515.0 3J 0.5 1518.8 - 1524.7 1587.5 4.4 - 1591.9 2.6 1599.4 -..... -- - Parent 1991 1990 SO CSR Limited Financial statements rent 1990 s 4.9 1587.5 4.4 1591.9 2.6 1599.4 _ -- --- ---- ------ I _ -- CSR Notes 10 and forming pan of the accounts CSR Limned and subsidiaries 34 Related party information Identity of related parties Interests held in subsidiary and associated companies are identified in notes 35 and 38. Interests held in joint ventures are identified in note 33. All directors holding office throughout the year ended 31 March 1991 are identified in note 42 * In addition the group holds a number of immaterial investments in associated companies which are not separately disclosed in note 38. These include the following with which there are material related party transactions: Gypsum Resources Australia Ltd (50%) Ready Mixed Industries Pty Ltd (50%) Penrith Lakes Development Corporation (40%) SA million Consolidated 1991 1990 Partat 1991 1990 Amounts receivable from related parties ' Current Directors of group companies Associated companies r Other related parties Non-current -- Directors of group companies _ Associated companies Amounts payable to related parties Current Directors ofpartly owned subsidiaries Associated companies Other related parties Material transactions with related parties6 Interest revenue Associated companies Dividend revenue Associated companies 0.1 25 0.1 1.2 3551 2.8 - 1.4 81.2 OJ 5.8 4.5 0.4 5.3 1.2 23.2 4.5 19.6 0.1 2.4 0.1 12 21.0 2.1 - 1.4 46.0 SJ& - - 43 02 - 43 --- " Groupcompany transacting Related puny* Transaction type Consolidated Parent 1991 1990 SA million 1991 1990 CSR Limited Australian Cement Holdings Pty Ltd A - Gypsum Resources Australia Ltd B Penrith Lakes Development Corporation C Ready Mixed Industries Pty Ltd D Ready Mixed Industries Pty Ltd E The Austral Brick Co Pty Ltd E CSR Gypsum Products (UK) Ltd Redland Plasterboard Holdings E Transaction type: A Purchases ofcement from related party. B Purchases of gypsum from related party. C Management fees paid to reiaed?aity during the year. D Sale rita^ds and services to related patty. E Loansfrepardby) advanced to related party during the year, a Trattactioriswytjitactcn are dhcicsod in note* 8 and b AH tranjaaioorwOTrelated panto are made oo normal commercial terms and conditions except loan tt asttd^eoaptiifcSQf$2S.7million (1990-$27.3 raiilioni ut non-interest bearing. C i*lW ptfy WM> mmiml cnmptii** 59.2 9A 82 S3 25 (19.0) (28.8) 59.8 15.3 - 7.1 7.4 10.0 8.4 515 9.4 82 S3 23 (19.0) - 58.1 15.3 - 7.1 7.4 10.0 - 1990 I- I CSR Limited financial statements Jt Notes to and forming pan of the accounts CSR Limitedand subsidiaries Country of SA million incorporation 35 Particulars relating to group companies Except where shown all subsidiaries are wholly owned by the CSR Group and are investments of CSR Limited. Corporate Cosure Ltd" CSR Conoacting Pty Ltd (Ord A. B A C) CSR Finance Ltd CSR Insurance Pie Limited"* CSR International Pty Ltd CSR Investments (Asia) Pie Ltd*1 CSR Investments Australia Ltd CSR Portfolio Investments Pty Limited CSR Investments Overseas Ltd DuinlandB.V* CSR Investments Pty Ltd CSR Travel Pty Ltd Fairer Properties Landed MidaJco Pty Ltd SeltsamLtd _____ _ anlMI| ffyt . BI (Australia) Pty Ltd (Ord A &B) _____ Bt Holdings Australia Pty Limited' Bradford Insulation industries Pty Ltd Bradford Insulation <M) Sdn Bhdf/ Bradford Insulation (SA) Pty Lid --- 81 (Contracting) Pty Ltd Bradford Rockwool (M) Sdn Bhd (70% CSR Groups Bradford Sales & Engineering (M) Sdn Bhd**_________ Bradford Rockwool (Thailand)Company Ltd*1 Canberra Asphahen Pty Ltd - .. CSR Bricks Limited Monier PGH Limited (51% CSR Group) Monier Roofing Limited (51% CSR Group) MonterColovniie Pty Ltd (51%CSR Group) . Variety Engineering Pty Lad (Old A B >51% CSR Group) Monier Management Pty Ltd (51% CSR Group) Reliance RoofTiles Pty Ltd (51%CSR Group) ------- PGH Limited (51% CSR Group) Rivard Pty Limited (51% CSR Group) MonierBrickmakers Limited (51% CSR Group)"* ZacubaPty Ud(51% CSR Group) CSR Investments OverseasLtd* Beadex Holding Inc*4 Beadex Manufacturing Company Inc"]* __p_> Beadex Foreign Sales Corporation*4 Bradford Holdings Inc (Ord A A B)n Bradford Eneroon Inc** Bradford Insulation (S) Pte Ltd* CSR (UX) Holdings** CSR Building Materials (UK)Ltd*" CSR Gypsum Products (UK) Ltd*" Hume Pipe Group Limited (UK)*" ------ Hume Pipe Limited** Hume Pipe (Scotland) Ltd*" Hume Pipe (Wales) Ltd*" Duirdand B.V.* CSRNethedandiB.V.^ ULprtAPref)*' ofCnadaLtd1 MftiiHfiiHiilljd* Huael Farley 41 FALtQW)PtyUd(OrtAAB) GftSSPtyLtd Gyprock Holdings Pty Limited CSR Hebei Australia Pty Limited (82.5% CSR Group) Keneen Pty Ltd NAP Building Wholesale Pty Ltd Premier Metal & Gravel Pty Ltd4 Ready Mixed Concrete Ltd Australian Blue Metal Ltd The Readymix Group (Australia) Ltd Bell Basic Industries (Qld) Pty Ltd CSR Humes Pty Limited CSR Readymix Pty Ltd Spuncon Pty Ltd Diesel Motors (Readymix) Ltd4 Australia Australia Australia Singapore Australia Singapore Australia Australia Australis Netherlands Australia Australia Australia Australis Australia ._ Australis Aumlis ------ Australis Malaysia Australis Australis Malaysia Malaysia Thailand Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia New Zealand Australia USA USA USA _ _Canada Canada Singapore UK UK UK UK UK UK UK Netherlands Netherlands Cauda r*uH Canada Canada Fiji Australia Australia Australia Australit Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia 52 CSR Limited Financial statements Contribution to group operating profit and extraordinary items after income tax MM 1990 Book value of investment 1991 J990 4 - M 1.0 - - - 0.4 (IRS) 33J) - - - > (03) _ - - - 1.4 - - (03) 46.0 1.1 U 43 0.1 (1) 24 0.9 - 03 "4.1 03 - 23 (203) (13) - 04 _ 1.8 1.8 - 0.4 (12.6) - (0.8) 619 - 214 - --------"------- _* 53 0.7 -t -t 618.6 1394* 1303 O.t 03 _ 53t *-- (0.1) _ - - _ (03) 143 0.7 103 - . - 74 - 0.2 -.33 .. - -t 13t ................. _t 24* 0.1* lJ3t 3+ -t 2673* as* .7t - 0.1* 4S* 30.7* - 33+ .25.7+ 1.3 - (33) (7.5) 03 (0.5) (8.9) 0.7 - 45* 45* -+ 1143+ 11.7+ 13t 93t -t -t 33* 13* Ut 03t 25+ 5.3 0.7 -+ 100.5+ SS2.8 150.0t 130.3 0.1 03 5.8+ -t 1.3+ 14t 0.1+ 13.9t -+ -t 0.7+ - 2675+ 619+ 0.7+ -t 0.1+ 4.9t 30.7+ - 3.0+ 25.7t 45+ 4.5+ -t 4.9t 6.4+ 1.3+ &3-0+ -t -t 3.0+ 13+ 1.1+ 03+ 24 - <L7) 54 (M) 0.1 03 (03) - - (24) - -- - 16.1 _ - - 15.1 23 - _ 23 (45) 83 05) 0.1 03 (OJ) - - 03) - - - ,(O.t) _ 0.1 - 12.1 0.4 - - 213+ 173+ -+ Mt RTt 43+ S24+ 83+ IJt -t 283+ -t -+ 2493* 8.4+ 23+ -t 1854+ 415+ -t 21.3+ 7.4+ -+ -t 0.7t 45+ 510+ 83+ 1.3+ -t 28.2+ -+ -t 12+ 1023+ 8.4+ 2.3t -t -+ -t _+ 0 8* jeof .m 1990^ 2.5+ 5.3 0.7 lOO.St 552.8 ISO.Ot I30J 0.1 02 5.8t 12+ 14+ O.lt 13.9+ -t -+ 07+ -t 2672+ 62.9+ 0.7+ -+ O.lt 4.9t 30.7t -t 3.0+ 25.7t 42+ 4.5+ -+ 4.9+ 6.4+ 1.3+ 83.0+ 3.0+ lit t.lt 0.2+ 21.3+ 7.4+ 07+ 42+ 52.0+ 82+ 1.3+ 282t -+ 22+ >2.2+ 8.4+ 2.3+ -t -t -t 0.8+ I4 i4 Notes to end forming pan of the accounts CSR Limited and subsidiaries Country of SA million incorporation 35 Particulars relating to group companies (continued) Building and construction materials (continued) Ready Mixed Concrete Ltd (continued) Readymix (SA) Pty Ltd Centralian Industries Pty Limited Darwin Crushed Metal Pty Limited Ready Mix Concrete (NT) Ptv Ltd RGL Services N.V. (Ord A Pref)1* River Sand A Gravel Pty Ltd Sellars Holdings Limited Brimik Pty Ltd Sunrock Quarries Pty Ltd West Moreton Industries Pty Ltd West Moreton Contractors Pty Ltd* Resource Industries Asia Pty Ltd (Ord A A B)* Skewes Ready Mix Pty Ltd* Suspended Products (Manufacturing) Pty Ltd1 Synkotoid Drywall Products Pty Ltd* Territory Aggregate Supplies Pty Ltd Trafamadore Pty Limited (formerly Territory Asphalt Roadways Pty Ltd) Topmix Pty Ltd (66% CSR Group) Valdosta Investments Pty Ltd (liquidated 1990) WA Gravel A Paving Pty Limited (Ord A&B-69.4% CSR Group) Waterford Sands Pty Ltd Australia Australia Australia Australia Neth Antilles Australia Australia Ausnalia Australia Ausnalia Australia Ausnalia Australia Australia Australia Australia Australia Ausnalia Australia Ausnalia Australia Construction materials USA CSR Investments Overseas Ltd* CSR America. Inc** CSR Construction MaterialstUSA) Inc * ARCA Acquisition Co+p*4 American Aggregates Corporation** Dredging & Hauling. Inc4 Ernst Aggregates. Inc 4 Parkland Properties. Inc*4 Permacrete Products Corporation1*4 Portable Aggregate Producets. Inc 4 ARC Materials Corporation 4 CSR Concrete Pipes (USA) Inc*4 ARC Transportation Company 4 HydroConduit Corporation 4 Associated Sand A Gravel Company. Inc*4 Rinker Materials Corporation*4 Made Industries. Inc (sold 1990)*4 Rinker Cen-Con Corp*4 Rinker Realty Corporation 4 Rinker Transport Corporation*4 Southern Aggregates Company*4 USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA Timber products Hardboards Australia Ltd Pyneboard Pty Lid British Trading Pty Ltd (Ord A A B) Softwood Holdings Limited (Ord A > 100%CSR Group; Red Cum Pref-59% CSR Group) FormicaAusnalia Pty Lid Softwood ResearchdDevelopmentCompany Proprietary Limited* SoftwoodsAdpfridePty Limited Softwoods DMBtetoprictlfy.UmM SoftwoodPjWiiiflMPiyUBUted Softwoods ParigWartPtyLimited Softwoods PotMRtmUmiteds-: Penna-LoflCftKnaiWLld . -- Soudi QljeeitiifiSdwresttftyLld S.Q. Logging Pty Ltd Perma-Log Products Pty Ltd Perma-Log Products (NSW) Pty Ltd Softwoods SE Land Pty Limited* The Forestry PulpA Paper Company of Australia Proprietary Limited Timber Holdings Ltd Aistergren Pty Ltd (Ord A. B A O Bendigo Holdings Pty Ltd* Northern Victoria Hardware Pty Ltd* Brodribb Sawmilling Co Pty Ltd Wangaratta Building Supplies Pry Ltd* CSR Softwoods (Queensland) Pty Ltd Dimone Pty Ltd* Ruoak Timbers Pty Ltd* RGL Services N.V. (Ord A Pref) 9 Glumapyne Inc 4 Woodland Ltd (Ord S1A A S0.70B) Australia Ausnalia Australia Australia Ausnalia Ausnalia Ausnalia Australia Ausnalia Ausnalia Australia Australia Australia Australia Australia Ausnalia Australia Ausnalia Australia Australia Ausnalia Australia Australia Ausnalia Ausnalia Ausnalia Australia Australia USA Australia Contribution to group operating profit and extraordinary items after income ux 1991 1990 CSR Book value of investment 1991 1990 (0.5) (02) 02 1.1 0.4 (0.4) - 0.9 - (0.7) - (02) - (0.4) (02) - 0.3 - 0.1 0.8 - 3.4 - (0.8) (0.6) 1.1 02 - 02 - (02) - (02) (0.1) 02 -t 22+ 2+ 0.7+ 92+ 02+ 202t -+ 32+ 42+ -t Ut 02+ 0.1+ 02t 12 -t 22 0.4+ 0.7+ 92+ 02+ 202+ -t 32+ 42+ -+ -t 0.6+ -t -t l.lt 02+ 0.1+ 12+ 12 (15.1) 11.1 - 12 - 53 43 (42) - 12 43 (252) - (5.0) - (0.1) - 0.1 (1.0) 28.0 3.8 - (02) - 4.0 (02) 31 (0.1) 2.7 22 (12) (12) 42 (0.1) (.1) (02) _ - - 02 - - - - (02) - (0.1) - (0.1) - (12) (0.7) (42) 0.1 4.0 32 0.7 1.1 22 62 0.1 0.1 02 - - - - (42) 6.1 3.1 - - - - (0.4) 4562+ 1302+ L372+ 1372+ 1.1+ 122+ 02t 42t 522+ 802+ -+ 1472+ 312t 472+ 3912+ 130.4+ a 435.7t 43S.7t l.lt 122+ 02t 10t 42+ 666+ 802t -t 3150+ 332t 413.7t -+ 22+ 22+ 242t -t 16+ -t 242+ 82+ 242t -+ 2672+ 322+ 02+ 382t 702+ 02t 2.1+ 172+ 3.1+ -t -t 1.7t -t 02+ 612t 242+ 02+ 02t .+ 52+ 7.9t 24Jit 02+ 275.6t 3S.lt - 12t 02+ 382+ 702+ aot lit -172t 3-lt -t -t 1.7t -t 1.9+ oat 61.9t 24.6+ 12+ oat oat -t 02t -t 02t -t 7.4t CSR Lunited financial statements tlfr'VMTIMi Un f i r Notes to and forming part of the accounts CSR Limited and subsidiaries Country of SA million incorporation 35 Particulars relating to group companies (continued) Sugar Amalgamated Sugar Mills Ptv Ltd Austocean Ptv Ltd CSR Investments Overseas Ltd* Chelsea Investments Ltd** Chelsea Nominee* Ltd* CSR Timber Products tN'Zl Limited (formerly Credit Leveque Limited) * Formica (NZ) Limited1 Chelsea Retirement Fund Nominees Ltd * New Zealand Sugar Co Ltd * CSR Distilleries Investments Ptv Ltd* Agency Products Pty Limited8 CSR Distilleries Operations Ptv Ltd Havelock Food Products Pty Ltd J W Edwards Ptv Ltd" Piooeer SugarMills Limited Australia Australia New Zealand New Zealand New Zealand New Zealand New Zealand New Zealand Australia Australia Australia Australia Australia Australia Plane Creek Central Mill Company Limited Queensland Harvesting Co Ptv-Ltd - . - ==-- RogerClarke Packaging Pty Lid* The Haughton Sugar Co Pty Ltd _________ --...... Australia Aunraiia Australia Australia Aluminium Gove Aluminium Ltd (Ord. Non-red 7.75% pref-70% CSR Group) Gove Aluminium Finance Ltd (Ord. Red pref- 70% CSR Group) Australia Australia Resources OH and Gas Richter Drilling Pty Ltd Shelf Drilling Pty Ltd Coal Buchanan Borehole Collieries Pty Ltd Hail Creek Coal Pty Ltd Tfciess Holdings Ltd (Ord A &B>` Biloela Callide Open Cut Pty Ltd? Thiess Bros Pry Ltd Thiess Properties Pty Ltd Minerals Blaire Company Limited*** Warrock Company Limited**1 -------------- ....................................... ------- Australia Australia Australia Australia Australia Australia Australia Australia Hong Kong Hong Kong Totalsubsidiary companies plus: parent company profit provision forsubsidiarycompany losses other consolidaricc adjustment less: inter-companydividends -------- -Operating profit and eatraoi dbaty Hews tor year attributable to CSR shareholders .. Contribution to group operating prolit and extraordinary items after income tax 1991 1990 Book value of investment 1991 1990 1.1 04 04 _ (04) 1.0 _ 104 _ 04 (0.1) _ 7$ 14 ... X2 1.8 84t 0.3 14 _ _ 1.7 _ 7.6 _ 04 _ _ 234 6.0 - - -n i r _ - 4.7 44+ -t 123+ 21.lt -t 12.lt 14t Q4t 1904 514t 444t ------------------_.t . 8.0+ 4.4* 12.3+ 21.lt -t 12.1+ 3.0t _t 1.8+ 03+ 04+ 200.9 513+ 444+ -+ -0.4+ 1.9+ 374 (24) 50.9 " 1.4 - 30.lt 33.9t 30.lt 353+ . (02) ' (0.8) -t -t _ --_ 84 0.1 (24) 3.9 - 2.9+ _ 402.9+ -t 2423+ I4t -- -----------"-- .. ----------------... 183.0 243.1 10.1 04 120.7 3234 235.0 330.0 '(154) 142.1 4074 ...... -+ _+ 2.9+ 377.6+ -+ 242.1+ 14t -t -* Carries on business in New Zealand, b Carrie* on business in Netherlands, c Carrie* on business in Netherlands Antilles, d Carrie* on business in USA. f Carrie* oo busine* in Malaysia. - I Canies on button* to Hong JCeog. ' b Carrie* aa button* * &>!*?**j Came*cobu*iqttoFi, _ k Carries on bufetn to Gnadh. ' m Carrie*on binf^MmUnnedlCiRgdoA / r. 38 Disposal of subsidiaries Subsidiaries disposed ofduring the year CSR Netherlands B.V. Hume Industries (South Seas) Ltd Permacrete Products Corporation n Carries on business in Thailand. p Statutory detail* are reported under Building and construction materials, r Subsidiary incorporated during trie year, f b voluntary liquidation. * Subsidiary liquidated during the year. t Statutory details reported under Corporate. T All shares were sold during trie year. Refer note 36 for full details, i Audited by firms other than Oekritte Ross Tohtnatsu. * Audited fry associated faros of Delortte Ross Tohtnatsu. t Investment by other group companies. SA million Net tangible assets Profit on sale 1.4 0.4 4.6 54 - CSR Limited Financial statements CSR value of 'imem .1990 Notestotad forming put of the accounts CSR Limited nd subsidiaries Explanatory note 1 37 United States generally accepted accounting principles (US GAAP) information SA nation 1991 StiS bUBoo* 1991 8.0* 4.4+ _+ 12.3+ 2U+ _+ 121+ 3.0+ 1.8* 03+ 0.4+ 200.9 31.3+ 443+ -t 0.4t 1.9+ 30.1+ 353+ -+ 29+ Provided below is a summary ofthe differences between net profit and shareholders' equity disclosed in these accounts and that which would be reported if the accounts were prepared in accordance with US GAAP. This summary is not intended to be a comprehensive US GAAP report Net profit Operating profit and extraordinary items after income tax attributable to members of CSR Limited Share of associated company profits Depreciation on revalued property, plant and equipment Superannuation expense adjustment Increase in timber volume Amortisation of goodwill Amortisation of patents and trademarks Future income tax benefits attributable to tax losses US GAAP net profit Shareholders' equity Shareholders' equity attributable to members ofCSR Limited Share ofassociated company shareholders' equity Elimination ofasset revaluation reserves Superannuation expense adjustment Accumulated value of increase in timber volume Accumulated amortisation ofgoodwill Accumulated amortisation ofpatents and trademarks Future income tax benefits attributable to tax losses Investment in shares in other companies Employees' share plan loans Final dividend provision A B C D E F G A B C D E F G H I J 323.5 (1.0) 4.7 36.0 (6.8) 3.8 (4.6) (S3) 350.9 27973 103 (833) 36.6 (19.7) 9.8 (12J) (6.4) (2.1) (14.6) 126.5 250.5 (0.8) 3.6 283 (S3) 2.9 (3.6) (4.1) 271.5 2166.3 73 (64S) 283 (1S3) 7.6 (9.7) (5.0) (13) (113) 973 377.6+ - 2421+ 13+ -+ -t Profit on file US GAAP shareholders' equity 28423 2200.6 1 Explanatory notes: A Financial information on associated companies is not included D Forests are initially shown at cost at the time of acquisition by in the group profit and loss statement or balance sheet prepared the group. The change in the total volume oftimber in the in accordance with the Corporations Law. It is shown by way forests is calculated each year and recognised in net profit for ofsupplementary information in note 38. the period. US GAAP does not permit the upward revaluation B Revaluation ofproperty, plant and equipment is not permitted of assets. * under US GAAP. The depreciation charge on the revaluation E The group systematically amortises goodwill over the period, recrement ofrevalued assets has been reversed. When revalued not exceeding 20 years, during which the benefits are expected assets are sold any revaluation increment realised is reflected in to arise. US GAAP allows amortisation cm a straight line basis net profit. over a period not exceeding 40 years. C CSR's superannuation arrangements are detailed in note 41. The only defined benefit fund ofsignificance is the CSR Staff F Under US GAAP purchased patents and trademarks are amortised over a period not exceeding 40 years. Superannuation Fund. This Fund has a surplus which has been No amortisation is provided by the group on these assets until calculated in accordance with the requirements of SFAS 87 an event occurs which results in a loss or limitation of the 1 Employers* Accounting for Pensions. The company has no legal enritlejneqtldthis surplus and may not withdraw excess useful life ofthe asset G The group recognises future income tax benefits of tax tosses assets.^f^^^atthe Tmstee's &scretion, contributions have where realisation ofthe benefits through future income is been suspgaljffimdexcess assets are being transferred to the virtually certain. Under US GAAP future income is not taken Accum^^n^^siaa accounts overtime, which is permitted into account in the consideration of the likely recoupment of under dK^pUidftiw trust deed. The following information in tax losses. Adjustment has been made to reverse benefits raised rdationu^p^^Fmtd is glven forinformation purposes: for tax losses except where offset by deferred income tax SA sus liabilities. Bullion million H Non-current investments in shares in other companies quoted Service cost Interest cost Actual return on assets Net amortisation and deferral i Net periodic pension income (2.2) (9.6) 22.1 42.0 523 (1.7) (7.4) 17.1 32.5 40.5 on stock exchanges are recorded at cost No revaluation decrement or provision for diminution is recorded unless, in the opinion of the directors, a permanent diminution in value has occurred. US GAAP requires that any temporary declines in value be deducted from shareholders' equity. Transfer to Accumulation Division (15.7) (12.2) I Loans advanced to employees under share plan loans are offset Superannuation expense adjustment Fasd status at 31 March 1991: !|- Fair value of assets Projected benefit obligation Asset not yet recognised 36.6 377.8 90.6 273.1 28.3 292.5 70.2 211.5 against shareholders' equity for the purposes of US GAAP. J Dividends declared by CSR Limited after the end ofthe financial year are recorded in the year to which they relate. Under US GAAP dividends are recorded in the period in which they are declared. CoavenioQ me - SA 1.00* SUS0.7743. < CSR Limited Financial statements Notes to and forming part of the accounts CSR Limited and subsidiaries 38 Equity accounting information Investment in associated companies0 Australian Cement Holdings Pty Ltd4 cement manufacture (holding company) Other companies Associate's year end* % Interest6 31 Mar 91 50.0 SA million Profit and loss statement Operating profit before abnormal items and income tax Profit on abnormal items _. -- Operating profit before income tax Income tax attributable to operating profit _____ Operating profit after income tax Profit on extraordinary items after income tax Operating profit and extraordinary items after income tax Minority interests in operating profit (loss) and___ extraordinary items after income tax Operating profit and extraordinary items after income tax attributable to members ofCSR Limited Retained profits (losses) at the beginning of the year Adjustment to retained profits fon associated companies sold dividend income from associated companies Dividends provided for or paid ........ ............ Other movements Retained profits (losses) at the end ofUse yew Consolidated 1991 1990 547.6 739.4 17.x __ -- 564.7 209.7 *739.4 289.9 355.0 449.5 - -- 0.5 355.0 3L3 450.0 42.6 323.5 480.2 407.4 364.0 2482 - 5552 291-2 - 480.2 Balance sheet Investment in associated companies At cost or valuation Retained losses---------------------Post-acquisition reserves Aggregate carrying amount Othernon-curreni investments Total non-current investments Other assets Total assetsTotal! Netasseor Share Reserves Retained profits (losses) Minority shareholders' interest in subsidiaries r- Total shareholders' equity 128.6 2792 128.6 38.4 167.0 60532 62202 30732 31462 7772 14642 5552 3482 31462 2792 262 305.7 59932 62992 3413.7 28852 735.0 1317.6 4802 352.7 2885.5 a The group is not aware ofany significant events or transactions which have occurredafter the year end of Che associated ctxnpaay which ccuid materially affect the financial position or operating performance ofthe company, h AO shares held are ordinary. c The Austral Brick Co Pty Ltd. Redland Plasterboard Holdings and Redland Plasterboard BV which were associated companies were sold during the year, d Formerly Cement industries Pty Ltd. e Figures forcurrent year profits and retained profits are derived by deducting dividend income from associatedcompanies from the consolidated figures and adding die share ofproflu of companies. Losses of associated companies are provided for in the consolidated accounu. Therefore no adjustment to consolidated figures is required. Book value of shares held $A million Value of loans and advances to associate SA million Share of associate's profit and extraordinary items after tax SA million Dividends received SA million 128.6 38.4 167.0 9.5 Share ofassociated companies 1991 1990 11.1 17.0 7.7 247 Consolidation and share of associated companies* 1991 1990 15.7 18.2 ... _ . 5462 22J) 15.7 4.8 - 18.2 9.5 5682 2142 10.9 8.7 3532 - .._-Ll__ ._______- 749.6 - 749.6 299.4 450.2 1.6 10.9 (02) 9.8 0.1 3532 451.8 312 - 42.7 11.1 (102) 4.9 (17.0) 11.0 (02) 9.7 (8.3) (16.8) 5.1 -002) 3222 469.9 409.1 355.7 2482 11.0 -554.9 _ 291.2 (3.7) 469.9 (02) 102 102 102 - 102 - 102 102 (02) - 102 .. (102) 14.0 3.7 3.7 - 3.7 - 3.7 14.0 (102) - 3.7 128.6 (02) 102 1382 382 1772 60532 6230.4 3073.9 31562 7772 14752 554.9 3482 31562 279.5 (10.3) 14.0 283.2 26.2 309.4 5993.5 6302.9 3413.7 2889.2 735.0 1331.6 469.9 352.7 2889.2 SB CSRUmitMl Bnanctaiststementt CSR Dividends received 17.0 77 24.7 ssociated 1990 749.6 - 749.6 299.4 450.2 1.6 451.8 42.7 409.1 355.7 _ (3.7) 469.9 279.5 (10.3) 14.0 283.2 26.2 309.4 993.5 102.9 U3 7 189.2 735.0 131.6 >89.2 Nous io and forming part of the accounts CSR Limited and subsidiaries 4- SA million Segment revenue1 1991 1990 Operating profit before abnormal items, interest, foreign exchange and income tax 1991 1990 Total assets 1991 1990 39 Segment information Industry segments Building and construction materials Construction materials USA Timber products Sugar Aluminium Segment totals Unallocated items 1777.6 947.4 472.1 1088.3 304.0 4589.4 1.8 4591.2 1900.0 620.9 537.6 1168.7 306.3 4533.5 6.7 4540.2 293.5 111.2 33.9 162.6 88.7 689.9 (18.6) 671.3 360.1 54.2 86.9 191.1 111.1 803.4 (9.7) 793.7 2159.0 17393 7793 8413 3493 5869.1 351.1 62203 2261.3 1817.6 729.8 890.9 329.9 6029.5 269.7 6299.2 Geographical segments Australia North America New Zealand ; Europe i Others 3424.7 1011.7 117.1 18.9 18.8 4591.2 3712.1 682.0 113.6 17.0 15.5 4540.2 543.1 104.7 163 3.9 33 6713 731.0 55.3 13.4 (9.1) 3.1 793.7 4156.7 1908.7 114.7 9.1 31.0 62203 4152.7 1885.6 89.3 142.3 293 62993 Products and services w Building and construction materials aggregates and sand: pre-mixed concrete: asphalt; concrete pipes. blocks and other pre-cast concrete products: cement; clay bricks. pavers and pipes; concrete and clay roof tiles: plasterboard and plasterboard accessories; autoclaved aerated concrete; fibre concrete: giasswool, rockwool and foil insulation; air handling products - Construction materials USA - aggregates and sand; pre-mixed concrete; asphalt; concrete pipes and blocks: pre-stressed concrete products: cement Segment revenue includes dividend income. Imer-tegment sales e negligible. -- a Timber products wood panel products; sawn timber products; high pressure laminates; furniture components; plywood Suear raw and refined sugar, ethanol; sugar industry services: shnxnna Aluminium bauxite, alumina, aluminium $A million CoeaotMated 1991 1990 Parent 1991 1990 4 .-- - ** _ <*t*- 1 ,t _ 40 Non-hedged foreign currency balances The Australian dollar equivalents of non-hedged foreign currency .. balances are included in the accounts as follows: United States dollars Current assets Non-current assets Current liabilities Non-current liabilities New Zealand dollars Current assets0 Noo-cunentwet* Current liabilities Non-currezfrflabitides Canadian dollar* Current assets Non-current assets Current liabilities Non-current liabilities i Other currencies Current assets Non-current assets Current liabilities Non-current liabilities 289.1 15153 (3783) (1184.9) 2413 293.9 1541.0 (327.9) (1302.0) 205.0 663 303 (24.4) (13) 70.6 42.0 29.3 (93) (23) 593 53 533 (16.4) (113) 30.7 93 44.1 (25.1) (20.1) 8.2 26.6 143 (17.1) (0.1) 23.9 293 106.1 (18.5) (1.4) 115.7 . 113 - (101.9) (157.4) (2473) 103.8 19.9 (169.2) (160.3) (205.8) - (173) - (17.6) - - (183) .. - (183) ----- -- 1.1 - (1-1) - - 0.1 - (37.8) (21.2) (58.9) CSR limited Financial statements Nores to and forming pan of the accounts CSR limited and subsidiaries 41 Superannuation commitments The CSR Group participates in a number of superannuation funds in Australia, New Zealand and other countries where it operates. Most were established and are sponsored by the group. The funds provide benefits either on a defined benefit or cash accumulation basis for employees or their dependants on retirement, resignation, total and permanent disablement or death. The members and the group make contributions as specified in the rules ofthe respective funds. The assets ofall funds were sufficient to satisfy all benefits which would have been vested in the event of tennination of the fund, or in the event of the voluntary or compulsory tennination of the employment of each employee. From 1 April 1990, the name of the CSR Officers' Provident Fund (OPF) was altered to CSR Staff Superannuation Fund (SSF). SSF has two divisions, a Defined Benefit Division and an Accumulation Division. Membership of the Defined Benefit Division comprises previous OPF members, pensioners and spouse pensioners. Membership of the Accumulation Division comprises members of CSR Staff Cash Accumulation Retirement Fund who transferred to the Division with effect from 1 April 1990 and those new employees who are eligible to be admitted to the Division. Due to an actuarial surplus, the group's contributions to the SSF Defined Benefit Division have been suspended since July 1987. This suspension was confirmed by the hind's current actuary Mr Geoffrey F Burgess FIAA in June 1989 and is subject to review following future actuarial valuations of the Fund. The group's major funds as at 31 March 1991 are summarised below. ....... . CSR SafTSuperannuation Fuad DefinedBenefit Division - Accamdatioa Division - CSR Employees'Retirement Fund Type of benefit" _ . Defined benefits (lump sum and pension) Basis ofcontributions Such amount as is determined by the Trustee from time to time upon the advice of the actuary Group legal obligation to contribute Enforceable obligation to contribute such amount as to ensure that the fund has assets of not Jess than 120 percent of the amount required to meet the actuarial liabilities of the Division but otherwise subject to a right to reduce or discontinue contributions on six months' notice to tile Trustee Last actuarial assessment Completed as at 30 June 1989 by Mr Geoffrey F Burgess FIAA Cash accumulation benefits (lump sum) . Cash accumulation benefits (lump sum) Percentage ofmember's salary contributed by member and the group --Percentage ofmember's wage contributed by member and the group Enforceable obligation subject to a right to reduce or discontinue contributions on six months' notice to the Trustee Enforceable obligation subject to a right to reduce or discontinue contributions on six months' notice to the Trustee ------- Not applicable Not applicable Stares Oddis st 3 June 1991 ------ -------- 42 Interests of directors (CSR Group)* AW Coates* DKVoss B N Kelman RH Myers J Scully B W Macdowjd JFKiffc:^^fa^;- f R RmiehraeS'''" IGBurgesRsp^V WABetme^. R K Bartons?^'5' GV Kells ... -- a No interests were held in the share capital of related companies, b Beneficially owned shares are held 5CK*. Fully paid_______ Personally Beneficially 2 000 8 514 102843 18577 8504 2 200 5628 11212 4 283 10837 1 365 2 836 83440 6052 15000 Partly paid Personally Beneficially * *' 180000 129000 109000 130000 ----------19*1 ' --1990 85440 14566 102 843 18577 8 504 2 200 5628 26 212 184 283 139 837 110 365 132 836 85 440 14566 102 843 17 114 7 387 2 200 5 184 20329 133769 104 637 75 139 97494 58 CSR Limited Financial statements fit d rement be : SSF 987. O' 0 sed d ts ber -or on * 1990 85 440 14 566 02 843 17 114 7 387 2 200 5 184 20 329 33 769 04 637 75 139 97 494 Share information CSR Listed Fully paid shares -full voting rights Shareholders % Shares Partly paid shares- full voting rights % Shareholden % Shares % Distribution ofshareholders and shareholding as at 17 May 1991 Registered address Australia New Zealand United Kingdom ii Other | 103 063 5 556 1471 887 110977 92.9 5.0 1.3 0.8 100.0 740814 981 14 284 631 4 500 734 15 140988 774 741 334 95.6 1.8 0.6 2.0 100.0 5 566 510 107 50 6233 89.3 8.2 1.7 0.8 100.0 1 586 764 115 754 33 333 7-944 1 743 795 91.0 6.6 1.9 05 100.0 j Class of holder Individuals , Companies j 91 596 19381 110977 82.5 17.5 100.0 167 268 565 607 472 769 774 741 334 21.6 78.4 100.0 5 256 977 6 233 84.3 15.7 100.0 837 788 906 007 1 743 795 48.0 52.0 100.0 Size of holding i 1-99 i 100-1000 1001-5000 5001-10000 10001 and over * Unlisted Registered address Australia Other Class of holder Individuals Size of holding 100-1000 1001-5000 * 5001-10000 10001 and over - 6 963 54310 38 929 6669 4 106 6.3 302 327 48.9 25 579 340 35.1 88 381 632 6.0 46490593 3.7 613 987 442 110977 100.0 774 74 ! 334 -- Fully paid shares -full voting rights Shareholden % Shares 6 843 391 7 234 7 234 7234 94.6 "5.4 100.0 100.0 100.0 2 119 000 122 900 2 241 900 2 241 900 - 2241 900 7 234 100.0 2 241 900 3.3 11.4 6.0 79.3 100.0 % 94.5 5.5 100.0 3 876 2154 174 10 19 62.2 345 2.8 0.2 0.3 136 553 615 249 343 985 74 492 573 516 6233 100.0 :* 1743795 . ,------ Rutty paid shares -novoting rights Shareholden % Shares -- ... .. ------- 353 95.9 3 732 000 15 4.1 282000, 368 100.0 4 014 000 $ 7.8 35.3 19.7 4.3 32.9 100.0 % --- 93.0 7.0 100.0 100.0 368 100.0 4014 000 100.0 100.0 51 145 --61 111 100.0 368 13.9 39.4 16.6 30.1 100.0 - 51000 438 000 474000 3 051 000 4014000 -13 10.9 11.8 76.0 100.0 ii ----------------------------------- ---------------------------- | ' 20 largest shareholders as at 17 May 1991 (ranked for fully paid)* Australian Mutual Provident Society Queensland Treasury Corporation i - Pendal Nominees Pty Limited Bank of New South Wales Nominees Pty Ltd ; , ANZ Nominees Limited ' National Nominees Ltd; National MunialLife Association ofAustralasia Ltd j*` State j^th^^^^^iuinuationBoanl^ * Toyota Motor^gMrttior , * Chase AMPlSl^roae^ Limited Perpetual Tre^^^mnyes Limited ! j Superannuation Ftmdinvestment Trast Permanent Trustee Company Ltd . Colonial Mutual Life Assurance Society Ltd Devrossi Pty Ltd Perpetual Trustee Company Ltd ^ MLC Life Limited CTB Nominees Limited Jaminigo Pty Ltd a Substantia] shareholders in CSR Limited - The Australian Mutual Provident Society has a relevant interest in 117.86 million fully paid ordinary shares representing 15.05% of the company's total issued capital of S778 million; BT Australia Limited has a relevant interest in 39.45 million fully paid ordinary shares representing 5.04% of the company's total issued capital of S778 million. The shares are held in a number of nominees. OrdinarySl shares (million) Fully paid Partly paid 115.96 34.05 3355 29.43 25.34 21.47 17.15 14.97 14.87 13.14 1058 9.91 9.84 9.70 9.48 8.68 837 836 7.64 6.60 409.09 -- _ 0.04 0.03 0.02 _ _ _ 0.02 _ -- _ -- 0.03 _ - 0.14 % oftotal shares 782.7 millkM 14.82 4.35 4.29 3.77 3.24 2.74 2.19 1.91 1.90 1.68 1.35 136 1.26 1.24 1.21 1.11 1.07 1.07 0.98 0.84 52.28 CSR Umited Financial statements Directors'statement Auditors' report Statement by directors on the accounts set out on pages 34 to 58. In the opinion of the directors of CSR Limited: (a) the profit and loss statement is drawn up so as to give a true and fair view of the results of the company for the financial year ended 31 March 1991; (b) the balance sheet is drawn up so as to give a true and fair view of the state of affairs for the company as at 31 March 1991; (c) at the date of this statement, there are reasonable grounds to believe that the company will be able to pay its debts as and when they fall due; and (d) the accompanying group accounts are drawn up so as to give a true and fair view of: (i) the results of the company and its subsidiaries for the financial year ended 31 March 1991; and (ii) the state of affairs of the company and its subsidiaries as at 31 March 1991 so far as they concern members of the company. The accounts and group accounts have been made out in accordance with Statements of Accounting Concepts and applicable accounting standards. The accounts of the company have been properly prepared by a competent person. Signed in accordance with a resolution of the directors. Auditors' reportto the members of CSR Limited. We have audited 60 in accordance the accounts set with Australian out on pages 34 to 58 Auditing Standards. and In our opinion: the accounts of CSR Limited and the group accounts are properly drawn up in accordance with the provisions of the Corporations Law and so as to give a true and fair view of* (a) the state of affairs of the company and of the group as at 31 March 1991 and of the results of the company and of the group for the year ended on that date so far as they concern members of the company; (b) the other matters required by Division 4 of Part 3.6 of that Law to be dealt with in the accounts and in the group accounts: and are in accordance with Statements of Accounting Concepts and applicable accounting standards. The names of the subsidiaries of which we have not acted as auditors have been'indicated in note 35. $/&-- 1G Burgess Managing Director Partner Chartered Accountants 3 June 1991 3 June 1991 CSR Limited financial statement* Investor information CSR ' Sbereboldar inquiries. Shareholders with questions CSR publications. The annual report is the main source and jbout their shareholding, dividend payments or the _==L_SharelPurchase Plan, should telephone CSR's ofinformation for investors. Other publications supplement it: --=-- --external share registry Deloitte Ross Tohmatsu on ~ (02) 2814822 or, if calling from outside Sydney, a die annual results summary promptly informs investors of the highlights of the year he - - (008) 252 350. International calls should be made to 4612 2814822, or facsimile +612 2819590. a the report of the annual general meeting updates die annual report sat a the half-yearly results summary reviews the ' Dividends. The final dividend of 16 cents per share, September half year ..... if approved at the annual general meeting on 29 July, "will be paid on 7 August 1991. The dividend will be fully franked for Australian tax purposesVOverseas -shareholders will benefit by having no Australian ^withholding tax deducted from their dividends. a two facts books, providing detailed information on alTCSR's operations and bh'CSR!s.operations.in.; _ the United States, are available on request These publications are available from the Corporate and Investor Relations Group, telephone Sydney Direct paymentto investors* accounts. Dividends mayJot `^-paiddirectlytcrb5Bfc~buflding societvorcraiit union ^accountsinAustraliaTThese^ :onfinrii by mailed payment advice's. -- : Change of address. Shareholders whohave.changed address should advise CSR's share registry in writing: (02) 235 8412, facsimile702) 2358642* - rStock oxchango listings. CSR^sharesareTlsted on_ Australian, New ZealandrtorfcmjffitdFrankfintstock r^xchangesrCSR's convertible unsecured notes and4 optionbonds are listed oh theAustrahan Stockf^-;^-^ Exchange. The option bonds are also listed on the' " London exchange. -- ' "Deloitte Ross Tohmatsu ^Securities Registry Services, "TO Box 152------------------ uny Hills-NSW -2010 ustralia acsuhile (02) 2819590 International +6T228F9590. American Depositary Receipts. CSR shares are traded in : sponsored American Depositary Receipt form on the - over-the-counter market in the United States. -- ADR holders receive information sent to ^shareholders. Inquiries about ADR holdings should be made to the Depositary, Morgan Guaranty Trust 7" ^ Company in New York. Their New York telephone numbefis(212)6483143. Removal from annual report mailing list Investors who --do not want to receive the annual report should advise --CSR's share registry in writing. - --- Investor information. Financial and operating information about CSR is available from the Manager Investor Relations^ telephone Sydney (02) 235 8368, facsimile (02) 235 8642.-------- 7."".-- _CSR*t shareholders. At the date of this report. CSRJtas 115 600 shareholders. Of the 782J million shares on ~~ issuej-52% are held by the 20 largest registered holders, compared with 53% the previous year.__ There are 107 400 shareholders with registered addresses in Australia, 5700 in New Zealand, and 2500 elsewhere, mostly in the United Kingdom. ' About 85% of shares are beneficially held in Australia. Share Purchase ftmtCSR's plan offers two ways to increase a shareholding in the company: ~ o Dividendreinvestment Shareholders may arrange - to buy CSRl&irts, using all or part of their dividends, at an average market price less 5% with no brokerage or other costs. Last year 34 531 shareholders reinvested 48% of dividends this way. -............. ---------- o Cash contributions. Shareholders may also --contribute up to SA2400 each year ending 30 June to buy shares. Shares are priced and issued on a monthly basis. Monthly purchases can be arranged -- through an automatic bank transfer. Last year 9000 shareholders bought shares this way. Additional share information. Share capital, shares__-- issued, shareholder and shareholding distribution, and the 20 largest shareholders are listed on pages 48 and 59. ^ TVir-it^ riiiiiri t --^=r~f r*--*~r--r*~i{-htn,*a>*-----* CSR limited Level 35 Grosvenor Place 225 George Street Sydney NSW 2000 Australia GPO Box 483 Sydney NSW 2001 Australia Telephone (021235 8000 International + 61 2 2358000 Facsimile 102) 2358555 International + 61 2 2358555 m