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CSR Annual Report 1990 Financial lumnury * 3 Managing directors ttatcmem a Finance -6 Busses environment to Operations sumauiy Budding and construction matenah 12 14 Cooetnieuoo materials USA 18 Timber products 22 Sittar 24 26 Daecrors 27 % People 28 i Orpmsoon and manages** 30 Investor m/ofiBKioa Additioni sanaory intonniiwo 31 32 Fmagcal suicmcna 33 SbuowfeRnamn 4A39 Eleven- year performance imidebscs raver 5 Financial calendar 27 June 5 July U July IS July i August 13 September 30 September 5 November 14 November 22 November 26 November 23 November 19 December Final instalment of SA150 share to be paid for paruv paio snares to become entitled to futai dividend Shares begin trading ex dividend Books dose fOT final dmdead Annual general meeting Final dividend pad Books close for interest entitlements on debentures and convertible notes Half year end. Interest paid on debentures and convertible notes. Debentures mature and are repaid Interim dividend announced Final instalment of SA150 a share to be paid for partly-paid shares to become entitled to interim dividend Shares begin trading ex dividend Half-yeariy profit announced Books dose for interim dividend Interim dividend paid and half-yearly results summary mailed 193t 15 March 31 March Books dose for interest entitlements on convertible notes Year end. Interest paid on convertible notes. SA&25 convertible notes mature and are repaid. Annual general meeting 1030 am Wednesday IS July 1990 Grand ballroom Sheraton-WentM-orth Hotel 61 Phillip Street Sydney, A notice of meeting and a proxy form are included with this repon to shareholders. O.'. . , .VO-,.. '.\. nngtofbuildini: unit ceum*w. m, I it CJR What we are ; CSR is a leading Australian building and construction materials company, with substantial operations in Australia. New Zealand. North Amend and Europe. CSR is also Australia's largest producer of raw and refined sugar and has investments in bauxite, alumina and aluminium. Building materials indude plasterboard, insulation products, bricks, pavers, rooftiles, day pipes and concrete blocks. Construction materials include aggregates, sand, cement, pre-mixed concrete, asphalt and concrete pipes. Timber products indude sawn softwood timber, wood based panels and decorative laminates. Sugar operadons indude milling, refining, providing marketing and distribution services to the Queensland sugar industry, ethanol production and shipping. CSR's sales exceed SA4.S billion yearly. Total assets are SA63 billion, of which a third are overseas,mostly in the United States. CSR employs over 22 COO people worldwide. CSR. founded as a sugar refining company in 1855 and incorporated as a public company in 1887. began manufacturing building materials in 1940. CSR has made an operating profit and paid a dividend everyyear since incorporation. Where we are going CSR is dearly focussed on the manufacture and marketing of buSding and ffHKmirrinn mafffiafo tiiaar We will continue to develop the company's building and construction materials businesses in Australiaand overseas, and oursugar businesses m Australia. These are businesses we know and understand, and where our management skills can add value and sunaln growth in returns to shareholders. Our businesses have strong market share. That positionwill be maintained by being innovative and by differentiator our brands from those of competitors through quality products, superiorcustomerservice and the initiative of our people. In building and construction materials we will maintain diversity of product and induscv segment, and geographic spread of end markets. We wiii maintain prudent financial polices and make our assets earn returns that place CSR among the best perfonaag industrial companies in Australia CSR's organisation centres on business units and encourages strong profit performance from each business. The company has a simple, no-nonsense management style that encourages and rewards employees who provide -astonw'-i^ ' -nd^hicte iac*i x- . ae f v ' :rrh' ,-Iers. CSR <s fesponsive to the attitudes and exoenauons of the communities in Directors' report Highlights Net profit before abnormal items increased 33% to SA406.9 million. Pre-tax profit rose 36%. The recommended final dividend is increased from 18 cents to 24 cents a share, fully franked, bringing the full year dividend to 40 cents, fully franked. Return on shareholders' hinds rose from 13.8% to 16.1%. Earnings per share increased 23%. from 44 cents to 55 cents. Trading revenue increased 31% to SA4.5 billion. Cash flow (gross funds from operations) increased 30% to SA903 million. SAU billion was invested in developing and strengthening CSR's businesses. The major developments were: c acquisition of the ARC America Corporation subsidiaries in the United States c expansion of quarrying and concrete operations in Australia c acquisition of Goliath Cement (50% CSR) in Tasmania c acquisition of a medium density fibreboard plant in New South Wales a construction of a fibreglass insulation factory in New South Wales. Net profit oefore iei*.rmoi items Dividend Financial summary Viirnin)l Vila itAimninmw wnim im -V* *. COMM* Cross revenue - including sales made as agent 5664.7 5265.4 8 Croup revenue 4892J 4444.0 10 Trading revenue 4516.1 3438.2 31 Operating profit before interest foreign exchange and incometax Net intetest expense 793.7 60ja 604.6 67.4 31 - Net foreign exchange gain 5.7 6.6 - Income tax expense 2895 211.7 - Minority interests* profit proportion Net profit before abnormal items 42.6 406.9 25.7 3C6.4 33 Abnormal items - (97.4) - Extraordinary items 0-5 93.0 - Operating profit after abnormal and extraordinary items 407.4 307.0 33 Earnings per share on issue at 31 March (cents! 555 44.0 25 Dividends per share (cents)` 40.0 32-0 25 Return on shareholders' funds at 31 March (?c) 16.1 13.8 - Paid up capital at 31 March 735.0 696.6 6 CSR shareholders* funds at 31 March 25325 2225.1 14 Non-current creditors and,borrowings at 31 March 1413-5 ;?;.9 137 Cash flow (gross funds from operations) 902.7 695.4 30 Gearing a: 31 March (d) 32.9 S.9 - Teal assets at 31 March 62995 5046.i 25 Capital investment 1508.1 153"" -2 Divestments 272.1 9*5.4 -70 Net tangible assets (book value) per share at 31 March <SA1i 159 Total net assets fbook value) per share at 1 * M?xh <$A) 3.4S 2.SS 120 si . Managing director's statement Maitatw< director la" Burette (centra. dtpiirv manaftnf dirrewr Bill Bennett rlfih ana external board metnnrn of CSR Amenta tubudtana .WonAatf Ci*r. Armando Codtna and MarfhaU McDonald.* CSR made a record profit and expanded construction materials operations in the United States. The year ended March 1990 was another very good one for CSR. Markets were generally better than anticipated a year ago. The company's operating results were much improved.The businesses grew strongly and operations in the United States were substantially expanded. Net profit before abnormal item increased 33% to SA40&9 million. This continues the profit improvement of the past five years during which CSR achieved a 34% compound annual growth in net profit. The profit from sugar operations increased by 50%. building and construction materials'profit in'Australia increased by 19% and aluminium by 2%. The profit fromconstruction materials USA rose marginally. Timber products' profit fell 22%. Saks increased to SA45 billion. Cash fiow rose to SA9G3 million, return on shareholders' funds was much higher and earnings pershare rose to 25 cents. The dividend is increased from 32 cents, fully franked, to 40 cents, fully franked. These improvements follow a record performance the previous year. They demonstrate the value of resmictunng the company's operations and focussing on businessesthat we understand and in which we have skills - making and marketing bulling and construction materials and sugar. CSR is financially sound and is wall positioned for profit growth in the 1990s. Our businesses have strong market positions, gearing is prudent and we have a robust cash fiow. CSR's underlying strength, improved performance and sound prospects have been recognised by investor. Between 3 April 1989 and 1 June 1990 CSR's share price Increased 305%. This compares with a 15% fall m the Australian Slock Exchange's All Industrials share index over the same period. Expansion was achitvtd by acquiring busioasses sad building factories. We substantially expanded the construction materials operations in the United States with the acquisition of the subsidiaries of the ARC America Corporation. CSR is now one of (he largest construction materials companies in the US and is well positioned for funher growth in North America. There is much to be done to improve the profitability of these new businesses. A lot will be achieved this year, but a substantial profit contribution from them is not expected until next year. In Australia, cement operations were expanded with the acquisition of Goliath Cement by Cement Industries (50% CSR). Quarrying and concrete operations were also expanded and strengthened. A medium density fibreboard plant was bought in NewSouth Wales. CSR also built plants. In the United Kingdom. Redland Plasterocard (49% CSR) comp'iete'd construction of a large plasterboard plant. In Australia, we completed the construction of an autoclaved aerated concrete plant in New South Wales and an ethanol distillery ir. Queensland. Nearing completion in Sydney is a fibreglass insulation factory and Austral Brick's (50% CSR) brick factory and. hi Queensland, a moulded door panel plant. All will contnbute to profits this year. 3SR is new building nd construction materials aad ragar company. The restrucnmne of the company was completed during the year. CSR's last coal investment was sold, as was Anchor Foods and the shareholding in Stick & Pipe Industries. At the end of March 1990: 1 76% of CSR's total assets were in building and construction materials businesses, of which: -- 32% were in building and construction materials in Australia -- 11% were in timberproducts in Australia -- 33% were in building and construction materials outside Australia,mainly in the United States 3 14% of assets were in sugaractivities 3 3% of assets were in aluminium investments. (hi main tasks this year are to consolidate recent acquisitions, to improve efficiency, to continue to drive down costs and to carefully manage cash. growth will continue to be largely focussed on ouilding and construction materials. We will also expand the production capacity of our sugar mills and svaluate options to rationalise sugar refining activities. these strategies wiil ensure CSR remains a strong and profitable company than : is dearly focussed on businesses in which its people excel 3 is market driven * is very competitive j has a no-nonsense management style, with a smcil headquarters and short reporting lines and 1 has conservative financial policies. Profit growth this yearwill be more difficult to achieve in the face of a slowdown in world economic growth, ugh interest rates, reduced consumerconfidence and hr lower lev.1 ot housing coniin^on in Australia, ajm&uteuw.-.vv'< 'cn.' -lx. Much of last year's profit growth flowed from the first full year's contribution from recently acquired businesses, in particular Rinker Materials Corporation. Monier PGH. Humes Concrete Produce and Sellars Holdings, and from higher earnings from sugar and aluminium. Profits from CSR's aluminium investment will be lower because of the fall in world prices. Higher world sugarprices will, to some extent offset these factors. Nevertheless, our target is to continue the progress of the past five yean and improve on last year's results. CSR is a long established and conservative manufacturing company. The company has the performance to justify it being a sound, long-term investment forshareholders. We have the people, the manufacturing facilities and the natural resources to take the company successfully through the 1990s and into the next century. B c^y--a Ian Burgess Managing director External board member* ol CSR America lac subsidiaries Marshall Cristr. LUL chairmen. Lawyerandformer presidentofthe University ofFiot-Ja. Armando Codina. president of Tnt Codina Croup and immediate pastchairman ofthe Ctaxer Miami Chamber of Commerce. Marshalt McDonald. LLB. MBA Immediate pest chairman -r-fit FPL C'-'i'" .....mrl [ I'pht ", open*. Finance CSR's financial performance improved strongly. the group's profits will continue to bear Australian tax and thereby generate franking credits which will be available to shareholders through dividends. Net profit before ebnotmsi and extraordinary itemswas 33% higher at SA40&S million. Accounting standards under which CSR reports were changed during the year. Some items previously classified as extraordinary have been reclassified as ordinary or abnormal. The previous year's results have been restated for comparative purposes. The major effect of the restatement has been to redassify as abnormal items some of die previous year's extraordinary items. Nefprofit before extraordinaryand abnormal items, and operating profit after extraordinary and abnormal items have remained relatively unchanged. Restated comparative figures are shown on page 34 and in the accompanying notes. Pre-tax profit was 36% higherat SA739.4 million. Operating profit and extraordinary items after income tax was3A407 424412. Directors recommend a final dividend of 24 cents a share, fully franked. The final dividend, ifapproved by the annual general meeting, will increase the total dividend to 40 cents a share, fully Cranked. This compares with a total dividend of 32 cents a share, fully franked, the previous year. The final dividend, if approved, will be payable on l August 1990. As a guiding principle, directors believe that the benefits of Cranking credits should be passed on to shareholders. Although about a third of CSR's assets are now outside Australia, a significant proportion of Issued capital increased by 36 million to 740 million SA1 shares, including partly-paid shares. The increase included the issue of 28 million shares under the shareholder and employee share purchase plans. Details of all issues are shown on page 43. Shareholders' funds, including minority interests, rose by 13% to SA2.3 billion. The increase was mainiy due to the issue of shares under CSR's share purchase plans (see page 48 for details of issue prices) together with profits retained in the business. Total assets increased 25% to SA62332 million. Current assets fell SA348 million to SA15743 million, largely due to a reduction in short-term lending and the sale of CSR's 182% interest in Brick & Pipe Industries. These decreases were offset by an increase tn stocks and debtors mainly associated with deregulation of the Australian sugar industry and acquisition of the subsidiaries of the ARC America Corporation. Nettangible asset backing per share was marginally higher at SA2.83. Total net asset backing per share increased by SA0.25 to$A3.45. Cash flow /gross funds fremoperationst increased 30% to SA902? miUion.Th* ability to generate funds internally continues to be one of CSR's most significant financial strengths. The increase in cash flow was mainiy due to the high level of building and construction materials salesin Australia and increasedworld sugar prices. Return on shareholders' funds increased (tom 13.8% to 161% "re s^veo:-- n'ccessi r; .* i eve?- . . '* .hsm.c-iS'i.ainWc*. U000012 Cash flew from operations tncromd to SA903 million. Return on shareholders' funds increased to 111%. Earnings per share* increased Or 10.4 cents. CSR shareholders' hinds increased by SA308 million. II w tl <> 4 U M iBWMumwww fiiuiwu M 41 u it n tji uin Extraordinary items cootribotod a profitof SAILS miilioo after tax end SAILS million after minorities. Major extraordinary pronu arose from the excess of net tangible assets over the consideration for acquisitions (SA21.4 million) and surplus on disposal of business segments (SA2Q.5 million). Extraordinary losses included a provision for losses on business disposals (SA2S.4 million) and a provision relating to businesses previously divested Intangibles. CSR's accounts comply with the Australian standard in accounting for goodwill in calculating the profit, which requires goodwill be capitalised and amortised, with unamonised balances being reviewed at each balance date. The value of goodwill on the balance sheet at 31 March 1990 was SA523.2 million after charging accumulated amortisation of SA3U) million. During the year, trademarks valued at SA34J3 million were acquired, bringing the total value of these items on the balance sheet to 5A17L5 million at 31 March 1990. No amcrusadon has been provided on these items. Gearing rose from 18.3% lo 313%, which continues to be conservative. (See tabic on page 9.) The main reason for the increase was the USS530 million of bank borrowings to fund the acquisition of the subsidiaries of the ARC America Corporation. Other major funding arrangements during the year included: 0 the establishment of USS2S0 million of committed standby bank facilities, pan of which was used to fund the acquisition of the subsidiaries of the ARC 1 America Corporation O USS53 million of private placement borrowings O the establishment of a USS400 million Euro Commercial Pacer croeram. finencial profile YtVMMJIMtna 11A <aafaM wwuuimimi im IMS tiinu Balance sheet at 31 March PiidupcsptullSAl shares) 7310 Total assets 6299.2 Current assets 15745 CSRshareboiden* fund* 25324 Cearutg(%) 324 Noo-currcnt crediton sod borrowings 14134 Cumnt credicon and borrowings 9074 Owing (to) by (he Australian sugar industry (24> Suadbyerode undraw* Current noo 6704 143 Interest expense 1404 income 804 net espense 604 Interest cover(times) 94 EschaagcnteSAsL'SS(cenu) *c31 March 75.1 average (or year 77.2 Profitability Trading revenue 4516.1 Operating profit before interest, foreign exchangeaad incometax 793.7 ts*%of trading revenue 174 foods employed 144 Met profit before abnormal items 4064 asa%of CSR shareholders'funds 164 trading revenue 94 total assets 64 Average income tax rate, excluding abnormal items (%) 39 Performance peeshare on issue at 31 March Earatnts teems) 554 Dividend* leetusi 404 Net tangible assets (book value) (SA) 249 Tout net assets tbooc value) tSA) 345 Value aoded(SA) 241 6964 3046.1 16094 wet 184 5934 10394 594 339.4 1.04 1274 604 67.4 84 *?S SU 34384 6044 17.6 14.1 306.4 134 8.9 6.1 39 u.O 310 158 310 1.95 6 25 -2 t4 137 13 a _ _ -9 5 31 31 - 33 _ - 3 ~ Capital imntmtn etmwtfy pianni oreomtmttid this yr totals about 5A500 million. About SA250 million will be invested to maintain the production capabilities and efficiency of current businesses. Most of the balance wiU be spent completing major projess commenced last year, such as the insulation dan: in Sydney ana vinous particleboard manufacturing facilities. Actual expencaure could be higher depending on whether other mvestment opportunities, currently being evaluated or contemplated, are realised. Qhesoaems yielded SAZ72.1 tniilioo. The sale of CSR*s 182% interest in Brick &. Pipe Industries (SA69.7 miilior.i. Anchor Foods (SA30 million i and other non strategic assets and investments accounted for most of the proceeds. Risk management CSR has effective risk management to achieve safe daces of work and minanise insurance claims. The company's risk control program identifies and eEminates potentialhazards to people and property. Following the introduction of a new program three years ago. reserves of SA6.1 million have beet accumulated fromsavings on insurance premiums. An In-house insurance company, with access to international reinsurance markets, provides protection against major risks. Minor losses are self insured. i Risk management consultants assistwhere specialist skills are required Senior management Don Murdert. SASA. CPA PCS. FCIM. aye S3, chieffinancial officer and companysecretary, joined CSR 1958. Capital investment Tnriwn Ji Mxco JA MliMl Buiidiataad CMstracno* matcnab concrete r-armng and cement ferrets act ifwulane* pusterrtir: jeputs::.-.-; other Consiructioe oasertals USA concrete, s-rrany and cement .niwraee. uusoa otber Timber projects wood pans.: sawn tiir-tr otter Saftr - mills refiaenes distillenes other Aluminium Rtwerta Corporate Total capital investment OItmmm proceed* bride investaem retail foods otltadgu coal mtserais otter *tw nmi|M mth in< mi itmi|ii i uu im 14*4 77.1 <24 15.9 54.4 40.7 45a.t !** 56.7 44 :ro -.4 7 531.1 390 672.9 4L0 uu 24 1713 34 0 t>504 6444 106.1 116 DA 12SJ 53.4 5.4 5.6 944 ira lit 44 04 373 154 114 214 11 51.1 122 8.6 - 7*0 (3J) (0.1) 1504.1 1537.7 69.7 344 194 24m 159J4 2724 _ 134.9 467J M.9 227J 4 918.4 i < ! { ; j 1 ! 1 I , fairing analyst* TwwllMiiailAwi tm lW Bwmmp Short-term debt Current maturitiesA long-term debt Loaf-term dcht 1904 175.7 14134 17774 Cash sad short-ttnattndinp Cash Short-term lending ' Owing tto> by the Australian sugar industry 4.7 217.1 till 219.7 ,*< herrowmts ISS7.9 Toulsharehoiden' wmy 28854 Total liabilities 3413.7 Ceariac miniM Loaf-term debt: canny plus long-term debt Loaf-term debt; rotary 324 494 4694 137.3 595.9 11024 2U 3002 594 382.9 319.9 3560.0 ZH6.1 18.9 23L3 Vein# added latiMH)) Mate tm SA Seim Trading revenue and dividends 4549 Leas purchases ot materials anc services* 2774 Total value added available for distribution 1766 A 100 61 39 IM* UMaa n' 3466 100 2107 61 13S9 39 OtstrfliflSion To emptoyees in wages. tatdhSs is2 payments to retirement funds To governments in taxation* To providers ot capital interest paid on loans dividends paid to shareholder? including minority interests Reinvested in business depreciation* and amortisation profit retained from operations 756 43 349 23 60 3 * 318 15 194 U 89 5. 1766 too 565 41 258 19 67 5 225 17 164 12 79 6 1359 too Tnrfurr ixNiiti w (mihm m tm tr****. ico, wit iu. mpiri M wm fcan * kwh wntnn11 aw ipim^it > trrlwdfi tsvrM uv tr*%< oetsufus 'ad. ;* *< ~ t\ : u. * *. j w v S" r*** t ** tty--rtt .Xd rMt, - ' - AWdTC** fueii I S**nn9 increased to 32j-. Capital investment was Ratings. R-:;ncs ui A-I by Standard i Poor's anc?-; SAlSt billion. by Moody's were recomtrmed for CSR's commerce, paper proframs in Europe and the United States, % I following the acquisition of the subsidiaries of the ARC Amenca Corporation. CSR's short-term unsecured scot mine of A1 was maintained bv .-.ustrauar. Ratines. The company's long-term unsecured scot ratine was maintained at A2 by Moody's ana AA- by Australian Ratings. These raunas and CSR's conservative gearing enas.e very competitive borrowing rates to be achieved. t> u 0 njtWM* M U U II M lliuvw The promion far tfoubtful current receivables has bees increased by $A1ZS millidrftb SA51.4 million due it the inclusion of the subsidiaries of the ARC Ament*. Corporation and following a full review m the light:: current economic conditions. RuAceicoranueoi As at the date of this report CSR has over SA70Q million of undrawn committed standby facilities and substantial unutilised borrowing capacity under short-term contnefdaJ paper programs. SA176 million of debtwasrepaid last year, including: O USS75 million of Eurobonds issued in 1982 SA2J million of convertible notes issued in 1987. In addxooa.as underwritten SA125 million promissory note facility matured during the year. This will be replaced by a non-underwritten domestic commercial paper program. Scheduled long-tenn debt repayments this year total SA156 million. These include SA98 million of 023% convertible bonds and SA40 million of Eurobonds. CSR aims to maintain a reasonable spread of debt maturities. Netinterest expense wasreduced during the year. Interest costs were protected against high Australian interest rates by hedging. CSR continues to keep a balance of fixed and floating interest rates. Walking capital. Despire the increase in stocks arising bom acquisitions, working capital was maintained at approximately the same level as last year. Exchange rata fluctuations resulted in a at gain before tax el SA5.7 million. The use of forward cover resulted in an average SA/USS exchange rate on revenuesof 76.3 cents being achieved last year. Foreign currency liabilities increased by SA892.6 million to SA1706.8 million but these are more than marched by the value of overseas business assets. ' Capital IfweeenewtotalledSAIJl billion. Investment was directed mainly at enhancing and strengthening CSR's building and construction materials businesses in Australia and overseas. Expenditure included: - D SA235 million on the acquisition of the subsidiaries of the ARC America Corporation in the US O $A88 million on the acquisition of quarrying, pre-mixed concrete, asphalt and concrete products businesses in Australia O SA$4 million for CSR's 50% share of the cost of acquiring Goliath Cement in Tasmania. Segment analysis i . awiiuft i I IHnnnwi. Iiimmu ***.ra6i i lin^nimp Immk'' HknnwMi Tn4mf j ,, YWraM)! Ual' mieiniiawxniiwl Maaoiu net in* ihmm' u MiamoB im me im me am im nm CCTHiaBHiii'Mi me IU* i me IM m* sm Kmn< Building end coflstrueaoa outcnsls 360.1 24*.6 49.7 r. 1244 854 20.1 \ ;i 1654 ::94 ! 1878 12*7 90 800 U4 174 Cwatrocwon # materials USA Timberproducts su si: m ISP 124 174 86.9 95J 240 t6d 254 304 26.7 264 621 *59 i 923 338 2.9 6.9 - 0.7 r.t *74 $38 *93 ' 37$ 3*3 9.9 13.9 Sugar HU 117.4 su 16.1 tU 33.0 1024 tL3 1169 t'.l 370 3SS 27.7 17.9 Aluminium 11U US.l I2J) < 444 43.7 224 20.7 46.9 *5.9 1 306 303 64 63 7U 70.6 Uaalloestte* (9.7) 127.1) |$64> nil 18.9 124) 03 27.9 raioii 4 123 |_<9 248 ? Group 793.7 604.6 $4J 604 289.9 211 7 424 23.7 406.9 30*. i 4V6 343.-: 7513 22.75 - CCHi* t 1f litvrv'V ' ' v . AStVau >* ?;****? *+.** . * Overall, CSR's markets were satisfactory. The Australia# market for building and construction materials weakened. Housing approvals and commencements were at record levels for the tint three months of the year but declined over the remainder of the year, mainly due to high interest rates. Demand for CSR's building materials was strong for most of the year due to the large volume of building work in progress and the growing home alterations and additions market Demand was particularly strong for CSR's pre-mtxed concrete, plasterboard, bricks,root tiles and wood panels. The level of non-residential construction increased. Office construction was at a veryhigh leveL particularly in the larger odes. Hotel and other tourism-related construction was also active. Gvii construction activity was lower. Office construction is expected to fail this year. North American construction materials markets were generally satisfactory. CSR's overseas operations are predominantly in the United States, ia 24 States. CSR's sales are split between the three segments of the US construction industry - residential, civil and commercialTotal US construction declined by about S% last year and is expected to decline again this year. Non-residential construction is expected to be particularly weak. Despite this, demand for CSR's construction materials is expected to be satisfactory. Sales of rockwool insulation in western Canada and western US increased. Capacity exists to increase sales substantially. The markets for CSR's plasterboard accessories products in western US and Canada grew strongiy. Demand for plasterboard in Europe was satisfactory. Redland Plasterboard {49% CSR) increased market share in the United Kingdom from 5% to over 15%. A higher market share is expected this year. Sales of plasterboard and accessories inoeased in Holland. Belgium. Germany. France. Sweden and Finland, but fell in Norway. World demand lor raw sugar exceeded supply forth# fourth successive year. World stocks fell to their lowest level since 19S1 and prices rose. The outlook for the remainder of the year is forstrong demand. lower stocks and fsm prices. CSR's share of the Austratian.rttined sugar market fell A competitor commenced production at a new refinery in New South Wales and imports of sugar followed the lifting of the import embargo. CSR's market share consequently fell and is expected to fall further this year. New Zealand Sugar's sales and market share rose. Industrial ethanol sales in Australia by CSR fell due to the closure of customers' plants. The world market for aluminium weakened. World prices eased during the year as supply increased a little foster than demand. Aluminium stocks increased slightly but are Kill at relatively tow levels.The world aluminium industry continues to operate at a high capacity utilisation of around 98%. Markets for alumina and bauxite were strong, although alumina prices eased from the very high leveis of early last year. Prices for aluminium, alumina and bauxite are expected to remain satisfactory this year. Australia dwelling completions Australian notv-dwtUing coimrectioa US {watting completions US noB*wtlling construction m : u ii ; ssjm It If U I) ft* iMm ta--n. If U II u* Jl Dmwir bMklMMMCnw M li W II UK dwelling completions World slominioo price II M < N* nniKM M II mmni MM World raw sugar price World raw/white sugar price differential Ml i'llW Ead-market analysis of trading revenue YetrenMJlMwm tvw SAaHlM* *. Building end construction materials Gvil construction Australia international Oweliiags Australia intenuuonal btfUdlfifS Australia iatereatteaal Other 662 14.7 U 0.4 647 to 52 L2 435 94 AS L0 19 0.4 un 4U Construction materials USA Dwellings international Commereai buildings international Civil construction international Other Timber products Dwellings ftwhpw*--**! boildlfifft Furniture Other Australia Austniia Ausaalta ; 252 211 153 - 54 4.6 15 - 621 13.7 323 72 100 22 2 U 33 0.7 538 1L9 Sugar Food 4 Other " Austraiti New Zealand otfterntsmational 593 111 98 22 412 9.1 66 14 1169 25.9 Aluminium intersatiaaal 306 64 Resources Unallocated Austria and internsuaaai Australia - "4 At Trading revenue Australis interna." T' " Mixed / 'Stfaii-t ` interns* -ssi: 67 i- . US i % 555 16.1 3 0.1 367 10.7 23 0.7 277 8.1 10 0.3 12 04 1247 364 201 54 141 4.1 105 3.1 12 0.4 459 13.4 300 8.7 96 24 76 12 21 0.6 493 144 361 104 82 14 318 9.2 52 1.5 412 234 303 84 112 34 11 04 :< ,. .. * * Operations summary Profit performance Profit rose 19% to 5AI65.8 million. Readymix Croup. Monier PGM (51% CSR) and Gyprock Group contributed most of the increase. Profit rose marginally to SA26.7 millioQ. The result was affected by normal seasonal losses by the ARC Amenca subsidiaries m February and March 1990. Key achievements _ Acquisition of Goliath Cement by Cement Industries (50% CSR) provides CSR with increased access to competitive supplies of cement. In Australia. CSR acquired or built 22 concrete plants. 3 precast concrete plants and 8 quarries. Red!and Plasterboard (49% CSR) secured over 15% of the UK market, commenced production at its Bristol factory and bought two French plasterboard companies. A new autoclaved aerated concrete factory and a fibre concrete plant commenced production in Australia. Rinker's profitability improved due to rationalisation of operations, sale of surplus assets, and improved margins. Acquisition of the ARC America subsidiaries: O substantially expanded CSJts US construction materials operations O positions CSR to benefit from an anticipated increase in expenditure on US inffasaructure O provides CSR with opportunities for further expansion in North America. Future Strategies Make further add-on acquisitions in Australia in quarrying and concrete. Expand cement production, reduce production and distribution costs and improve efficiencies. Continue to broaden product ranee, especially for concrete products and plasterboard. Consolidate and extract full value from ARC America acquisitions by improving organisation, production methods and marketing strategy. Divest surplus assets prompdy. Seek high-yielding add-on businesses. Outlook Reduced house building and commercial construction in Australia will affect demand this yean New insulation and brick plants in Australia wiil acd to profits. US construction activity wiil fall this yean Demand for construebon materials will also fall. Prospects for next year are brighter with a recovery expected in construction activity. refit fell 22% to 5A37.1 million. The lower prone was due to competition rom imported timber and reduced ouse building. Profit rose 505 to SA102J million. Milling and refining operations in Australia were the mam contributors to the increase. Profit rose 2% to 5A46.9 million. The increase mainly refiecad higher sales of bauxite and higher prices for alumina. Consolidation of the Wood Panels. Softwoods and Formica groups was completed. _ fcqtdsidonofamediumdeasity obrtboard plant in New South Wales strengthened CSR's produa range. . moulded fibreboard doorpand plant was built in Queensland. 'Tmberrightsto 17000 hectares of idiata pine forests were obtained in Queensland. New wood pand products were ucctssfully launched in Australia and .few Zealand. A record 9.5 million tonnes of sugarcane was crushed. CSR's refining business successfully met the challenges of deregulation of the Australian sugarmarket. A new ethanol distillery in Queensland commenced operations. CSR was appointedThe SugarBoards sole export marketing agent, for an initial period ofthree years. Long-term sugarcontracts were negotiated with the USSR. Malaysia and The People's Republic of China. Bauxite production as Gove < 21% CSR) increased 13% to a recon: 6.3 million tonnes. Bauxite sales increased 38% to a record 2.7 million tonnes. Production cost increases at the Tomago aluminium smeiter i24 CSR) were kept beiow the inflation rate, for the sixth consecutive veae Safes ofaluminium by Gove Aluminium, in the form of value-added slabs and billets, increases 30% to 31400 tonnes. 'RBSue to broaden productrange, particularly ofhigh-value-added "reduces. Continue to reduce costs and increase productivity at wood panel plants and sawmills. Implement continuous crushing at sugar mills to handle increased crops. Continue to reduce costs and improve customer service to meet increased compeutico in the refined sugar market. Evaluate benefits cf building a large sugar refinery in Queensland. Continue efforts to improve productivity and achieve iower costs at Gove and Tomago. Increase production capacity at Gove. Evaluate benefits of adding a third potline at me Tomago smeiter to improve competitiveness. educed house building will affect demanc for timber products this year. ew door panel and fibreboard plants ill contribute to profits this yean Milling revenue shstrid continue to benefit irate, twgh wotio sugar pr.ses. Refined sugar sales and profits wiil fall due to increased competition. World bauxite anc alumina prices snouts remain satisfactory tr.ts >ear; Aluminium prices are expecud to remain at cument levels mis yean UC Profits benefited from a strong Australian building and construction industry and the first full year's contribution from acquisitions. Profit res* 19% to SA16SJ million. Larger profits were made by quarrying and pre-mixed concrete operations: the Monies PGK (51% CSR) brick, paver and roof tile businesses: and plasterboard operations. The contribution was also higher from insulation activities and dividends increased from Austral Brick (50% CSR). Housing construction in Australia was at a high level for most of last year due to the amount of work already committed. Approvals and commencements fell shanty from the end of the first quarter of the year and a reduction m housing construction is inevitable this year. An expected increase in home alterations and additions should moderate the fall In demand for building and construction materials caused by the downturn in new housing construction. CSR's plasterboard and brick businesses, especially, should benefit from this. Commercial construction in Australia was at a high level because of the completion of existing project. However me number of new projects is laiting. Increased expenditure on civil construction, particularly macs, is expected to partially compensate for the ar.ucreared downturn m commerce! construction mis year. CSR's building and construction materials businesses maintained or enhanced their strong market positions during the year. The Readymtx Group's quarrying, pit-mixed concrete, concrete products and asphalt businesses performed strongly. Revenue increased to almost SA1 billion. The improved result was helped by strong demand for all products and the inclusion of the fust full year's contributions from the HumesConcrete Products business and Sellars Holdings. The group investedSASS million in expanding operations throughout Australia. Market share increased for ail produce and especially for aggregates, pre-mixed connote and concrete pipes. Production of aggregates and sand exceeded 30 million tonnes. Quarrying operations grew with the addition of eight quarries. Construction of a major quarry, costing SA20 million, near Melbourne will be completed in mid 1990. CSR's high quality quarry reserves are sufficient for 50 yean at current rates of extraction. Pre-mixed concrete operations benefited from buoyant housing, civil and commercial construction throughout Australia. Concrete production increased to over 4 million cubic metres. The acquisition or construction of 22 plants expanded CSR's market share, especally in New South Wales, Victoria andTasmama, The Humes precast concrete products business performed strongiv due to high levels of sob-division activity and civii construction. The launching of new products such as rueo-twr^ flexible concrete block matting and Humes' marina systems also contributed to the improve.: performance. Production of large diameter pipes, beams, poles, engineering components, bricks and blocks rose to nearly 600000tonnes. CSX Humtt a ctpanamt ig rtnfr of precast concreteproduct!. The ISVlSCIBLer-manna system a a feature ofthe Sanctuary Cove dtseiopment m Queensland. GyproeM Group t Sydney Plant hat extensive capacity to supply customerneed! mth an tncrrasmtly wide ranft of plasterboard product*. Humes' ranee of precast products expanded with the acquisition, m June 1989. of Wembley Cement Industries. Western Australia. Wembley's two Penh plants make an extensive range of small concrete products. A humecoreTM precast concrete panel factory in Melbourne was commissioned in February 1990. The Emu Pipes and Veal Pipes businesses in Victoria were bought in March 1990. Humes' concrete pipe manufacturing operations in the United Kingdom and Pip performedsatisfactorily. Asphalt production increased strongiy to over t million tonnes due to a high level of toad construction activity. Road profiling operations expanded with the purchase inJuly 1989 of the Wirtgen business in New South Wales and Queensland. RAorao<Dejr*dust and soil stabiliser emulsion was successfully launched in mid 1989. The Readymix Croup's transport and distribution services were considerably increased. These comprise pre-mixed concrete, precast concrete and quarry producttrucks, cement oaken and concretepump trucks. Cement interests expanded with the acquisition ai Goliath Cement and its integration with Australian Camant (50% CSAL The balance of Goliath Cemem not already owned by Cement Industries (50% CSR) was bought in October 1989 for SA169 million. Goliath's plant in northern Tasmania supplies over 60% of its output to Australian Cemem forsale in Melbourne and Sydney. Goliath Cement traded profitably since its acquisition. Planning for the expansion of its plant 8 weil advances, increased cemem sforage facilities at mainland pons w\U also be required. Dividends from Australian Cement were marginally lower than last year. Australian Cement's resuls were disappointing as demand for cement was very strong in south-east Australia for most of the year, especially in New South Wales where there was considerable road construction activity. Profitability would have been higher but for competition from imports of cemem as wellas production problems and industrial unrest at Australian Cement's plant at Geelong. Victoria. These problems are being rectified. Plasterboard sales hi Australia shewed satisfactory growth during the year. Market share was maintained and profitability improved. Majorcontributions to the improved result included the amount of housing construction already committed and the continued buoyancy of commercial construction. Because of the anticipated fall in housing construction. CSR expeos to sell less plasterboard in Australia this year. However growth in home alterations and iiu( tfo continvf^ Hrrnph of commercial construction market will parity compensate for the reduced demand. The release of a numberof new producs will also help. Recently bunched were gytrocx aouachek"'water resistant board,fresco"* decorative moulded board and the skaftwaix~ fire rated shaft lining system. Market response for these products is encouraging. Gyprock Group upgraded the piastermili at its Sydney Plant,achievingcost savings and operational efficiencies. Rondo Building Services <5C% CSR). manufacturer of metal suspended ceiling and wall partition products, commenced production at anew plant in Brisbane in April 199a a j I BuMngina eetBswson mattnas icernnuMi Gyprock Group continued to develop its activities. In September 1989. Luna and Valk.Australia's largest manufacturer of acoustic plaster ales. was acquired. Demand for this product is strong and production capacity at the company's Adelaide plant has been doubled A new range ofoumiuwcast piaster tiles was successfully introduced CSR Hebei Australia's $A33 million plant (813% CSR) nearSydney in March 1990 began production of autoclaved aerated concrete blocks and panels. Market prospects for this versatile building material are very promising. Productionof fibreglass reinforced concrete panels at CSR Fibre Concrete's faoorv in Brisbane began in July 1989. Contracts to supply cladding for major building projects in Sydney andBrisbane have already been won. Production capacity is being increased European plasterboard operations increased market share. Rediand Plasterboard's large $A65 million factory (49% CSR) in the United Kingdom commenced production ahead ofschedule in September 1989. The factory is now operating at full opacity and sales ofplasterboard have achieved a market share in excess of 13%. Cornice and decorative panel production facilities are scheduled to be completed in August 1990. Norgips (44.9% Rediand Plasterboard) improved profitability. Operations were expanded with the acquisition of SalsL a French manuiicrorer of plaster and jointing compounds. Norgips' plants in Norway, the Netherlands and France achieved further cost savings and operational efficiencies. Revenue and market share improved, particularly m the Netherlands. Belgium. West Germany. France. Sweden and Finland. Sales in Norway were fiat due to slow market conditions. The Swedish paper linerboard manufacturer Orebro Kartongbruk (100% Rediand Plasterboard) continued to improve manufacturing efficiency and reduce production costs. In North America. CSR's plasterboard accessories businesses improved profitability and sales rose strongly. Withfauoyant housing markets inwestern Canada and western US. revenue and market shares increased and new products were successfully launched. CSR's brick and roof til* interests increased profits due te strong demand. Record sales revenue from the home building industry, especially during the first half of the year contributed to the improved profitability, as did the first full year's contribution from Monier PGH (51% CSR) and returns from newly acquired brick and roof tile businesses. Dividends from Austral Brick (50% CSR) increased22%. CSR sold its 182% interest in Brick fc Pipe Industries in June 1989. Monier PGH upgraded its brick plants in New South Wales and South Australia, reducing operating costs. Construction of a SA15 million day roof tile plant was completed in Victoria early in 1990. Monier PGH's operations were expanded with the purchase of Brickmakers Ltd the only day brick business in New Zealand, the Humes concrete tile operations in New Zealand, the John Brazier Pty Ltd brick and paver business in Queensland, and the Lion Tile business in New South Wales. Austral Brick improved profitability. It sold surplus landand successfully bunched new products. Commissioning of Austral's new $A44 million plant in Sydney, withayeariv production capacity of 60 million bricks.'is scheduled to begin in June 1990. i te %r: radford Insulation Groupservtees its market from factories and utstnduttoa centra inrougnout Australia. At the Auburn. .VJtV plant Trov Cretlev prepares roils offibretiassinsulation blanket Bradford Insolation unproved profitability. A buoyant narket in Australia forinsulation produce resulted in . ecord sales of fibreglass and rockwool produce. Sales of foil insulation werestrong and sales of air tandling products improved. Commissioning of a SA67 million fibreglass insulation factory in Sydney has begun. The factory, ncorporaung the latest technology, will supply high quality products to the Australian market and enhance Bradford's competitive position. Bradford extended its product range during the year, 'few products include maritime" fire rated insulation panel systems for marine applications, imermokaaft* fire retardant maiding paper and ther.mopuasf" iecorative coloured reflective insulation foil for rommerciai building applications. In November 1989 CSR purchased the Dove Conservation business, the leading supplier of insulation dadding systems to the Australian wine industry. The Malaysian rockwool business (70% CSR) and the flexible ducting business m Singapore traded profitably at the same levels as the previous year. The Canadian rockwool business (70% CSR) again incurred a loss. Low prices resulted from vigorous competition, and the strengthening Canadiandollarreduced revenue horn US safes. Seuiormjoapement Brent Baker. 3k. act SI. generalmanager CyprocK Croup, joined CSR /VW Alee Brennan, S&. .ui-iMwu ye A*, general manager Readyma Group. looted CSR 1969. Sian Drodtr. K.< age S3, generalmanager Bradford Insulation Group, /oitted CSR 1963. - . >C ~' \ ' Monte. -'H U.lifl .j ' --i ` Sii.ytr performance TwrnHJI MV* (MU - IV.J Traduti revenue 1171 i:s? S 646 643 57? Pnjfii before merest. foreign cacnante. ta* 360.1 ft 156.4 :oi.o 931 78J ttspjtw before isr-wnai items 16J 13?* T* . < * 9 T9 Sr.Ktr.oioen tunas si .`l Marcs avn pr> ^ ^-1 "1 ?.t:u.T. cn snarenoiuers funes 1% i 18-6 i* * " ; *. * -- n IT 3 Tsttt/urias emoiorto st Jl Marc* 1963 IbZb ij- e- 330 391 T9*aiassetstt3l Mire* 2261 ISXa ca< 4M 444 Return on asscu i % I TJ 7 i * ; 4 s U.6 8J Cestui arrestment 4S8.1 672.9 403 i7 i 33.1 40^ Stsrcsuuon 77.6 wAcS :?4 ZLl r.8 Business profile tea-*.< Mart* Sales'SA millioni Gvii eonurueuon Dwellings Commercial buildings Other : 6S0 358 499 390 4S0 W 19 12 in 1247 filets it 31 Mvcn Quarries* snd ssnd Prt-fflixed concrete Concrete products Cement' Asphalt Plasterboard and accessories* 3rids, piven tad day pipes' Roof tiles* Insolation' lit* 31' 46* i Si 17 20l 11 126 235 39 3 22 13 18 18 12 Reserves proven and probable (Mr) Hard reek Sand Sand and travel Limestone Gypsum* U16 90 77 69 * 300 1839 93 78 58 300 Dividends received1 (SA million) The Austral Brick Go Pty Lsd? Cement Industries Ptv Ltd4 Brick 4 Pipe industries Ltd* Other 9J 7J 7J 1A L7 2.1 XI U 21.7 19J Eaptoyec* at 31 Marc* 9421 8017 .. i>nmw,.mim. Anehmi, liMia>^.ermcr.rwlM<. treelUs. SfWA >wsrtre Ota*. IH4MU. Celanew. Cuttmae. Cn. fault-- twre^SMtv*. Cstna*.tun wire.buwtsHkt.FwnAu.IiiIiiiiim.fOmtt. fanny. FWtaui ManM*. Memo.fj--rt--v FCH. KeiUlmn.Sntiliia Rvwiiftv. tiwmwi. timmt hanwx. Kvtuact. Racy**. Rmm. Route*. Sa*n. Imhh tr Mill I.nn'n !. HkhikiHi TVirnfm*. niifms:ta.n*rmwtt. Tftt.nnaaiu TVin----iTSiinn insTiwn TvCMio.I'twiia meWvwto. mrteet. We^eleeie. "minici. Zjom. > tnuMnFtonuiUMtOevvtvwMyCwSitm CSKhim i>i(n*winit><*w. i (vMniuMwiiMnMiaiM. .NwnlMXMiMMci UusnniU*. CJRt i csx. -n tr t |----------------.....- . JUMH Iwan > I.WWl*V 0*1. nm wwiWmIimwi fnen. Syi mo .. m>iIIII'IIMql.iwimiMiiiiIwitw*OKI. i lemon l) UqwaiSl% Ollm<imwuOT Om amhim. I IKIWrl ntlidiKTUX^IllUMlII*. cm % jincsk. IrrtTimi--'t--T~ L*`" i #**tnotum. I us turn iw ml. ------- re*. 'WVlMh i 10000'- \ S'oetpilf fttiUttn *t Amirr \/t fC C' * '' * Flonl* *--* ~* -*--- f- f-- inX nr ii nra^fM-w/r trxn*4 to rtfiettntix u.pptt aw i i^ir CSR is now one of the largest construction materials companies in the United States. The market for conoete block was also by the general downturn in construction m Flood*. Production fell 12% to 74 million blocks. Southern Aggregates' competitive posiuon was improved with the commissioning of a block plant in Georgia. Profit rose marginally to SA2S.7 million. The result was affected by losses incurred by the subsidiaries of the ' ARC America Corporation in the first two months of CSR'* ownership. Normal seasonal factors were responsible lor these losses. The result was also affected by one-offcosts associatedwith the rationalisation of the ARC America operations following acquisition. The outlook this year is for subdued demand formost of CSR's construction materials. (tinkerMaterials Corporation improved profits substantially. The increase, in line with expectations, was achieved despite a significant fail in construction activity in Florida. Revenue increased, market shares were generally maintained and margins improved. Southern Aggregates'sales and profits were adversely affected from October 1989 by Hurricane Hugo and its aftermath. Rationalisation of Rinker's operations continued, achieving cost savings and operational efficiencies. The non-concrete businesses of Mack Industries were sold, as well as other surplus assets. Employee numbers were reduced, computerised management systems introduced and pre-mtxed concrete technology upgraded. The market for aggregates was weaker than expected due to me reduced level of construction in southern Florida and lower expenditure on road and highway repairs. Production of aggregates by Rinker and Southern Aggregateswas marginally lower at 16.1 million tonnes. Pre-mixed concrete production was 4.4 million cubic metres, down 4%. Three pre-mixed concrete plants y:--r< acouiredinthe v.!gh-?rtvvh ;r c'" & -am -vosto it Florida. Cement operations performed well despite continued competition from low-pnced imports. Rinker's punt tr. southern Florida produced some 600000 tonnes of cement. To maintain its 25% share ol the TM***Rinker also imported 720000 tonnes of cement and bought 430 000 tonnes from other US producers. The slowing construction market and the increasing use of fly ash by Rinker's pre-nuxed concrete operations resulted in Rinker's cement sales faSing 4%. Building and construction materials markets m south-eastern US are expected to weaken ths year. Actions to counter the effect of the downturn include a reduction in overhead costs, funher rationalisation o: production facilities, the divestment of surplus land and the acquisition of add-on businesses. Quarrying and concrete operations substantially expanded with the acquisition el the subsidiaries of ARC America Corporation for 5AS3S million. Bought in January 1990. the subsidiaries consolidate CSR's position as one of the largest producers of construction materials in the US and position the company for funher growth in Nonh America. Tne acquisition w i-I enable CSR to benefit from anticipated uperaair.e of highway, bridge, airport and other infrastructure during tne 1990s. .All CSR's US construction materials businesses are now grouped under one holding company. CSR America in&in the United States the combined pperatiom.of.CSRAmericaarethe: - -- *C-lartest concrete pipeproducer " largest concrete block producer Z second largest pre-mixed concrete producer * fO'JrtO I.VB*~' ' . C* . ' TV underground mine at Amman A gfregaiet Indianepoiis. Indiana, quarry tupplemena tkt open pa operations, providing high quOlitr limestone aggregate runout coaly removal ofoverburden. American Aggregates' quarries art looted doseto mofor markets in duee adjoining States The main operating companies bought from ARC America were American Aggregates Corporation. Hydro Conduit Corporation. ARC Materials Cbrporation(tradingasWMKTransitMix)and . Associated Sand & Gravel Company Inc The new arqnwitions am nrn erpt*sot\ in, a significant contribution to CSR's profits uorii next year. By then, production facilities will have been rationalised, surplus assets sold, overhead and operating costs reduced, manufacturing tedtnologies improved, produa ranges expanded and new management systems installed. American Aggregates is a large quarry operator to Ohio. Indiana and Michigan. Operations are centred on five cities. Columbus. Dayton. Cincinnati. Indianapolis and Detroit Strong market sham are held in each centre, except Detroit The region is expected to experience steady growth over the next few years. Output from American Aggregates' 38 quarries and sand and gravel pits exceeds 21 million tonnes. The company's extensive reserves of high-grade limestone, gravel and sand have an average life in excess of 30 years. These reserves are superior to those of its competitors and are a majorstrength. CSH*s extensive construction materials operations in the United States era well positioned to benefit from growth in infrastructure replacement 6 QtMmes.aM sane ano gravel pns Concrete ova Concrete otoct S Pra-ttrtssM conema ofscueo 4 Pn-Muaeaneteu O ht?> ;* V .0 a a a m* Comovewn nwWsCSAIewwaj TheABC America subsidiaries ata glance Largest producer of concrete pipes in the US Fifth largest aggregate producer tn the US Haas 16 Bmestone quarries is 3 States 38 sand and gravel pits in 6 States 38 concrete pipeplants in 19 States 4 pre-5tressed concrete products plants in4 States 2 concrete block plants in 2 States 4 pre-mixed conattrpiams in 3 States 8 asphalt plans in 2 States 2 slag plans in t State Yearty output 22 million tonnes ofquarryproducts L8 million tonnes of concrete pipes 70000 tonnes of pre<stiessedconcrete produas 7 million concrete blocks SCO 000 cubic metres of pre-mixed concrete 1.8 million tonnes of asphalt Reserves 497 million tonnes of sand and gravel 421 million tonnes of limestone Yearly sales SA510 million Total asses SA990 million sdo American Aggregates* profitability is being improved. Non*strateoc businesses and surplus land are being sold, plant and equipment are being upgraded and employee numbers are beingreduced, the new management has the task of changing operational procedures to reduce costs and optimise market share and margins. Hydro Conduit is the largest concrete pipe producer io the United States. With plants in 19 States and yearly production of 1 million tonnes of concrete products. Hydro Conduit is twice thesis of the next largest pipe producer and has some 12% of the US market. The company also produces pre-srressed concrete bridge beams and bojtculvens. The wide geographic spread of its 42 plants enables Hydro Conduit to offset the vagaries of the various local economies. The company is generally the lowest cost supplier in hs markets. Opportunities exist to improve the profitability of the business. Management structure and reporting have been simplified'and reorganised into five regions. Unprofitable operations will be made profitable, sold or shut. Priority tasks this yearinclude the expansion of Hydro Conduit*s product range and the upgrading ofconcrete technology. New marketing strategies to improve margins will be put into practice. Forexample. in Florida Hydro Conduit can benefit from its relationship with Rinker Materials Corporation. Demand for concrete pipes in the US depends on the level of infrastructure development and replacement, as well as on the level of housing construction. Because of reduced economic activity (his year, the outlook is for industry salesvolume to fall 5%. WMK Transit Mix and Associated Sand & Gravel are located in regions experiencing strong growth. WMK Transit Mix produces aggregate, pre-mixed r.ncrcf' roncrf'TC bloc''* N ' COl' tignifici'"/ */ A newcnLCuicplamandn ne- ' ' '* T?i! 000026 April 1990. production costs are expected to substantially reduce this year. Surplus land is being sold. Demand tor aggregate is expected to fall slightly from its previous record level But. because of planned expansion of the hotei and casino industry in Las Vegas, demand is expected to recover next year. ( Associated Sand & Gravel's major operations are based in Everett, near Seattle. Washington Sate,one of the fastest growing regioca in the US.Thecompany holds strong positions in its markets for aggregate, pre-mixed concrete, asphalt and concrete pipes in Washington, and asphalt in Alaska. New management is in place and the organisational structure has been simplified. Additional quarry reserves are being sought as a high priority. Construction activity in Seattle is expected to decline by 8% in 1990 and then return to the strong growth levels of recent years. Senior management David Clarke. Do age^O. presidentand chieftteasve officer Rdtker Materials Corporation, touted the CSR Group 1966. Mike Doaokoe. a Em. ugeJi. president and due?esezusvt officerAssociatedSanddt Gravel Company Inc dutunan WMK Transit Mix. joined die CSR Group 1983. Geoffrey Harris, age-*2. president aiui chiefexevunie ofeer American Aee'iW** Corporation, touted the CSR G'ouo y* :rr /c tve .*. pmuieit' `ind i h.eie r-,- Six-year performance TivcmMJI Mini IM It* ttsr in* IW Trading revenue 621 459 54 6 Profit before interest. foreign exchange. tax 544 S9J 2-3 - N profit before abnormal items 26.7 u Sharchotdcn' funds at 31 Msreh 923 388 95 20 Returnon sharcbelden' funds 1 13 6.9 12 - Total funds employed at 31 Marcs 1668 69$ 117 38 Totalassets as 31 March Return on assets (%) Capttsi investment 1118 757 126 41 U* S3 1.7 - 877J 6844 81.8 36.4 Depreciation SEA 264 5.1 10 - well-- -- M A*C Art XI mliejiirw iron i ftbrwv |M). * - _ - - -! i 8 -( Business profile TntWMlIMMt Sties (SA million) Dwellings Commercial buildings Civii construction Other tfn Iff* 20t 211 141 1S8 IQS - __ 12 621 459 | Plants at3l Msreh Quarries and ssnd Pre-mUed concrete Asphalt Concrete blocks Concrete pipes Pr-stressedconcrete proeucts Cement Slag 66 72 8 :o 38 4 1 Reserves proven and probable - N Limestone Sand and gravel Hardroct Sand Fmpteyt^s at 31 March -- - .< C iintwm ***'* ... im MtAlve k 924 SO0 218 24 $7nr . V * - 9 66 - 19 * ^- 1 | -- j| 6 if7925 ? CSR added FIBROS"* medium denim fibreboard to to preduex ranee. A eustemtr. Chrxstopner Event Furniture. menufeaurn furniture tanu%e ea*entaft o! Fibron t ttrtneih end tmeoih tuHeee. Sales increased, but profits were affected by import competition and reduced home building. Profit (ell 22% to SA37.1 million, despite a 3% increase in sales. The result reflected competition from timber imports, the downturn in housing construction in Australia inthe last three months of the year and higher finance costs. The higher finance costs resulted from expenditure on new plants and acquisitions which did not contribute to profits during the year. Despite difficult trading conditions CSR maintained its strong market position. Rationalisation of the Wood Panels and Softwoods groups was completed. Formica operations were integrated with Wood Panels Group. Cost savings and operational efficiencies resulted from these changes. Difficult trading conditions are expeoed this year. Housing construction will be lower and timberimports are likely to continue at high levels. Actions to offset the effects of the downturn include an expanded range of value-added wood panel products for (he commercial building industry supported by a strong marketing program, upgraded production technology, lower overhead costs and reduced employee numbers. Wood ptnei operations performed well despite reduced home building. Revenue increased but profits were marginally lower. Sales of wood panels rose and almost all plants operated at full capacity until the end of 19S9. Demand weakened from January 1990. Sales of flooring, cardboard, partideboard. door psneis and fibreboard were particularly affected. The markets for furniture components and decorative produss were buoyant A new production line at Tumut New South Wales, commenced operations in Aoril 1990. for-mjca--decorative la 'nates ime-onid The nBRON*'* medium density- fibrcboard factory at Oberon. New South Wales, was acquired in Doamber 1989. Productivity has been improved through reduced employee numbers and the integration of administration activities with CSR's nearbv partideboard factory. A thin medium density fibreboard production line should be commissioned at the Fibron factory by March 1991. Sales of fibron~ fibreboard are ahead of expectations and should increase this year. Because of the acquisition of the Oberon plant construction of a medium density fibreboard plant at Tumut New South Wales, did not proceed. CSR's partideboaro flooring plant at Tumut is being upgraded at a cost of SA13 million. On completion, production capacity will increase by 25%. The hardboard plant at Raymond Terrace. New South Wales, is being upgraded to meet strong demand for weathertex"* exterior cladding. A SA16 million moulded fibreboard door panel plant at the Ipswich. Queensland, hardboard mill commences production in June 1990. Output from the plant Australia's fust will enable CSR to replace imports and develop export markets. CSR's range of value-added products was expanded. New ranges of formica"* high pressure laminate. cotORranel"* and clamaTyne"* faced boards, and ultima"*synthetic solid surfacing were launched in October 19S9. This was followed in November with Lbs re-launching oi weathertex^ extenor hardboard cladding. Market acceptance for these products is encouraging. Exports of particleboard. main:v for use in the Japanese housing and furniture tndustnes. increased significantly. Markets in South-East Asia are being developed. Profit from the Formica operations in New Zealand fell slightly due to price competition from imports. New prp'Jv "'-vrT^uree<$fy'iv '-'ur'Che'' CSR plants 200 000 mere trees each tear than u harvests from us plentanans. Jim Priddle thins radiate pint itealwes at SefnnMM Croup i Mt Gamete' nurxtr* m South Australia. ftofitsfram sawn timber operation war* effected by ] jmpemion from imports. Softwoods' profit fell despite a marginal increase in revenue. Sales of preservative* treated products and plywood rose strongly. Sales of Jawn timber remained at the previous year's level Intense competition from timber imported from New Zealand and North America and dedining housing i tarts contributed to the difficult trading conditions. } laniculariy in the last three months of the year, fhe increase in produnioncosts for sawn limber was kept below the rate of inflation. Voces to long-term timber resources is critical for CSR's sawn timber operations. The timber rights to an additional 17 000 hectares of radiata pine plantations in Queensland were acquired m July 1989. Acquisition of Perma-Log Products Pty Ltd. a Queensland-based timber treating business, m March 1990. increased CSR's market share of the growing * seated pine products market by 50%. CSR plants many more trees each year than it harvests from its plantations. The company's long-established radiata pine nursery at Mt Gambier. South Australia, raises 2 million seedlings each year. About 1 million are planted on CSR's plantations and the remainder are sold to other timber producer. CSR harvests some 800 000 trees from its plantations each year. .Senior Cot Forster; BEnt. MBA. ate39. general manager Wood Panels Croup,pitted CSR 1949. ,...-Per KMIS Six-yearperionnaace VurmMiiMm (SA iM wniPUnilll tfW 1VO 19U ltd ICM IM Trading revenue 53$ 493 229 132 94 83 Profit before interest. foreijn exchange. tax *62 95a 24.1 142 115 95 Net profit before abnormal item* 37.1 47.3 105 102 72 7.1 Shareholders* funds at 31 March 375 343 356 60 28 32 Renoson stureheMen* funds (%) 93 13.9 19 tin 77.9 222 Total funds eaptaecd at 31 March S5 530 481 99 48 46 Totalasses at it March 739 596 537 m 58 57 Returnoa aueta(%) 5^ 8.0 10 9.7 13.4 125 Capital investment 1253 94.4 327.7 252 32 1.9 Depreciation 213 204 to 82 40 5.7 Business profile Ytaratmai: vm SaiesfSA million) Dwellings Cotsacmal bihldinp Furniture Other im im 323 300 100 96 82 76 33 21 538 493 Plant* ci 31 March Particleboard Mediumcensity fibreboard Fibreboard Components Timber r*-manufacturing Sawmtiti Plywoeo Hi|h pressure Itminrtcs PJaatitioiuiim") 66 144 33 I1 98 22 .: 190 190 Employees at 31 March 4074' 3863 OK QW WIIWU m Amutua ana on; mmuitwo i *~-iiiiii-i tncrum. Cm* r. I mi. r-gn-TT "vi-- *1---------n.liut.tiwiu.Suucudur.inomi.tiw* ..................................... inwiiKHi mw mu m N- Zttam. *>* Cwm* m fw ________ r Sutirtorr mfermatim Additional statutory information Various statutory requirements not covered elsewhere are reported in this section. Payment of recommended dividend. Directors recommend die dividend of 24 cents be paid on I August, or otherwise dealt withunder the Share Purchase and Employee Share plans, to shareholders entitled to receive dividends and registered on II July 1990. Duly completed transfers received by CSR up to 5 pm on 11 July will be registered before dividend entitlements are determined. Options are held on CSR shares through convertible notes and option bonds. Fordetails see the table on this page. No contingent or ether liability of the CSR Croup has become enforceable or t$ likely to become enforceable thisyear whichwifi 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 report. UmtcMl items have been covered. The state of affairs of the grouphas not been, in our opinion, substantially affected by any material or unusual matter otherwise than as referred to in this report. Matters arising since the bloet.d*u have been covered in the appropriate sectionsof this report. Furtherdevelopments by the time of the annual general meeting will as appropriate, be reported in the chairman's address to that meeting. 0***4<tAI lmn 2- OtttirttKt ivm r* 0<ctr~*' l*v fiMl : M(<W t Avtvu :w< ffrcKTv*v Bno* <>*< to* amorna (kiiimwiii lujwri 1 M *f> * II Jw OftiwM MU m CSR Uiam SAL23 3" convertible uAwexrw Min' SA4U>**W coovertift* uaecur >om' SAlaO Op!i bomw cprt pjM to 1 ccfut owiunotny i U VU` JM4U mm *r i:udY.tTl CSR UttiiM Oeftenturei Coflvenipu note* OpdoaboMt' Septemoet iWi 31 Mjrcn I99t` 31 Mtrea iwr UDeccmOettW ^M HjO 100 IJO ir; vmsr ft FoMMOl r m 14**#. 1M0 M^ftMwaMoi imm mm xm. tftftft m mate m t |W too iWi wr iMitM hottw KMMftMMI tllUMI jllvKftUQi llw MM ftftl MM ftM Iar Ifti* MMftM mm mm nmm m. mm mm > t 11 lit MW MM man m Oiimm IM m $m mm ** * iM m mm lam < nw aWMiwiK* afiftiw iftft# iftwia Mm mi C3X1AI Mm A.MVMIM IM HIM............. Mtum--umm... W Hftiift MftMMftitimmmMfcMi nlniimmw Jl Mm mi 'JiaiMIMnilMaic*nMI'M'<M>M m<mim Jill" |I|.IIUI>|HMMM>HMIMIIIIIM -- IMtAlMII HO ftMMiftOt WOiftMMliftiMrtftlMftiMwft--MmiwuMft MM m am m*t*mm mma am (Mm him wmw m M ttmm ift*> ticftftM--ft--MMIftftl MWIMC IfliWftftBMailUl MMMM *ATJ *ft pm| ftftM tm mw mm il Ommmm (*<e TV mm> mm * im.m iiinftx--rti mmmoiOUiMMmimVUKi csx rM uamiian csxi omm ia tw a** MiiimMUiniwn BI||> f LftitftM im mnmlM likely developments in operations and thetr likely results have been reported as appropriate, further information as to likely developments in die operations of the group, including the expected results of those operations in subsequent financial years, would in our opinion prejudice the interests of your company and has therefore not been included in this report. Auditors. The auditors. Deloitte Haskins & Sells, have informed us that on 5 February 1990. they changed their name to Deloitte Ross Tohmatsu. Signed in accordance with a resolution of directors ct CSR Limited. fan Burgess Managing director i fur.-. :'Wl Alan Coates Chairman 1 I jmU Financial statements lor the year ended 31 March 1220 ; j a CSR Umiied and subsidiaries Profit and loss statement Balance sheet Significant accounting policies Consolidated statement of source and application of funds Notes on and forming pan of the accounts Share information Statement by directors Auditors* report to the members of CSR Limited 34 25 36-37 38 39-58 59 60 60 CSR Limited The principal registered office in Australia is Level 35,335 George Street, Sydney. Telephone >03) 335 8333. Secretary -- D Murden. Share and/or loan'security registers are kept at the following addresses: Sydney (principal register} Levei 5.1S3 George Street. Sydney. Melbourne Level 11.461 Bourke Street. Melbourne. Brisbane Adelaide Levei 6.60 Edward Street. Brisbane. 100 Greenhiil Road. L'nley. - Penh Hoban Canberra Auckland. New Zealand 75 Canning Highway. Victoria Park. 29 Murray Siren, Hobart. 10 Rudd Street. Canberra City. Colonial Road. Birkenhead. - York l.'SA c/- Bankers T.ii.t Co..4 Albany Street, "cw York. Profit and loss statement fsr:ntvearn0>o 31 M >990 CS* Laws m> <(nlufln JA aulkoo Operating profit before abnormal items and income tax Leu tr. abnormal items Optratme profit before income ta\ Income tax expense attrtbuuole to operating proa: Vo| 1-8 9 10 C.i|iiii tm ivt* 739.4 -- .'43.8 |U7 J) 739.4 2S9.9 i-u, a 211.7 i tern 'm* 4964 - :i7 *1 4965 1552 -,v At.U Operating profit after income tax 449.5 154.7 *12 5022 Profit tiossi on extraordinary items Income tax benefit attributable to extraordinary items 10 03 45.6* -- --*714 (112) - 452) 50.6 Profit iiossi on-extraoromary items alter income tax II 0.5 9&.0 012) `.4.7, Operation profit and extraordinary items after income tax Minornv interests in operating profit and extraordinarv items after income tax 4S0.0 4L 552.7 25.7 2300 '.17.6 Operating profit and extraordinary items after ioeome tax attributable to members of CSR Limited Retained profits at the beginning of the year 407.4 364.0 507.0 :r?j 3302 912 :272 Total available for appropriation Dividends provided for or paid 771.4 5342 4212 318.7 12 2912 120.5 29U 2203 Retained profits at the end of (he year 4*02 64.0 1372 982 Operating profit and extraordinary items after income tax attributable to members of CSR Limited consists of: i Net profit before abnormal items Loss on abnormal items 14 406.9 506.4 341J ::i9 (97.4) _ (10.6) Profit (loss) on extraordinary items 03 93.0 (IU) -|4.7i i 407.4 507.0 3302 IS7.6 Ham oo sad formnf pan oC rt* sccoenu att annnrt. i .1 1 3 Balance sheet as at 31 March 1990 CSX Ijiimm ad wenduwej Current assets Cash Reeeivjples Investments Inventories Other U wiWiBn No 15 u 15 16 17 Total current assets Nawermt assets Receivables Investments Inventories Property, plant and equipment Intangibles Other IS 19 :o 21.22 23 24 Total Bon-current assets Total assets Current liabilities Creditors and borrowings Provisions 25 26 Total current liabilities Non-currenr liabilities Creditors and borrowings Provisions^ 27 23 .Total sofl-curreat liabilities Total liabilities Net assets Shareholders' equity Share capital Reserves Retained profits 29 30 harehoiders' equity attributable to members of CSR Limited Minority sharehoMen'imerest in subsidiaries oral shareholders' equity > and femu** pan et dw at* mmm c# ;e ::u 7734 204 539/4 194 HI l * ll / 354 9 15744 1V/V3 fVtM tree IW 1033 1256.0 -- mi 10-3 lS.6 :^~.o _ 141.5 10.7 15775 23474 158.7 305.7 18.1 34504 695.7 96.0 i ZT2H 2506.5 407.9 S3-:-- 4724.7 3-416.1 6299.2 5046.: 17294 903-S 9.3 747.7 111 48.9 1490.8 361.6 74 6S4.I 10.1 4S.3 3452.1 25712 50304) 5420.0 907.4 6I7J 10394 502,6 15253 15414 10415 2210.0 3916 2944 1442.1 25044 1405 474.9 595.9 347.2 18814 943.7 34117 2486.! mss 2560.0 1254.8 186.0 3034 170.5 14404 9734 2882.9 34784 2147.1 1941.7 735.0 13174 4803 696.6 1164.5 364.: 2S324 352.7 ^2ZS.l 534.5 28854 2560.0 735-0 12711 1374) 2147.1 696.6 1146.9 984 1941.7 2147.1 1941.7 Significant accounting policies used in the CSR Group Basis d eeeoaming.These accounts are based on historical cost accounting conventions as practised in Australia. The accounts have been made out in accordance with the requirements of Schedule 7 of the Companies (New South Wales) Regulations and comply with applicable Australian Accounting Standards and applicable approved accounting standards. Pritreipits e* cansalidattan.Theconsolidated financial statements fivea view of the group as a whole. The groupconsolidates the accounts of all companies in which it holds or controls more than halfthe 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: Q results ofsubsidiaries which the group acquired or disposed of during the yearare includial from the date ofacquisition or to the date ofdisposal: O shareholdings in listed and unlisted companies which are nut subsidiaries are treated as investments. Only the dividend income from these investments is included in profit: O interests in joint ventures are recorded in the accounts 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: 0 interests in partnerships are recorded as pan of . investments. Companies in the CSR Croup are under no obligation to accept responsibility for liabilities of other companies within the gmup except where such an obligation has been specifically undertaken. Group revenue is the total of: 0 trading revenue, inclvding sales n-et of discounts, returns .ui-1 .li'.'vvancesi fo.-sen-ee\ > **wrs; ents. ro;u:>!.. 'id iter*--. i-ing-ter*" `:i - ni'ii.ir.i. revenue, iik hiding do idcnj income juj pmcvcu- :.*.'in tne disposji.il non-current us-ecs; anq C interest menine from short-term deposits Tax effect accounting. Tltc IrjNiity method of Mv effect .uvnuiinn.' .cciieu throughout the group. Income ta*. t ;rn*e tor the `-ear is based on pre-tov accounting auiusted tor items wmch. as a result or treatment ur ;sr income txv legislation, create permanent differences rer.veen pre-uv accounting profit and taxable income. To arrive at payable, adjustments to income tax expense are made tor itemsjtgtueh have been included in time peruius tor accounting purposes which differ from those spccmec by income u\ ;ecis(ation. The extent to which these :.n:ng differences goe rise to income txv becoming p'.;-io!e earlier than is indicated by accounting treatment is recorded in the balance sheet ax an addition to future income ax benefits. The extent tc which timing differences give rise to income tax becoming payable later than is indicated by accounting treatment is rnordetl in the balance sheet as provision for deferred income txv. Future income ax benefits arising from timing differences and lax losses are not recognised as an asset if there is uncertainty as :o whether income wifi be derived of a nature and an amount sufficient to ensure their realisation. Valuation of noR'Corraftt assets. Certain non-current assets have been revalued at various times and are shown at their latest valuation. The basis forrevaluations, unless otherwise indicated, is the value to the company as a going concern. All non-currentassets which have not been revalued are shown at cost. Increments in me value of a class ofassets arising from a revaluation are taken directly to tne asset revaluation reserve. Decrements are either offset against previous increments relating to (he same class of asset or charged against profit. Depreciation (including amortisation end depletion). Assets other than quarry* and raw material reserves are depreciated at rotes based upon their expected useful economic lives, using the straight-line method. Quarry and ot.irr row material reserves are depleted over the shorter uf tarty years or the life ofthe quarry, after taking into account the estimated residual value. Depletion is uetermined by producuun for (he year as j proponton of :;:al recoverable reserves. Disposal of non-current assets. Where a significant business i%di'p.*-*ed of any surplus or deficiency iwhtion asanestramcmary item. Surpluses and deficiencies m the disposal of.'(her businesses and non-current assets are treated as opening revenue or expense. Ltittd assets. Assets acquired under finance leases are cipitalixcd. The initial amount of (he leased awet and ; iwb-i'i -*ittva. itUnn ' iiients. flic jwin .ire .uitoniwd over the lue of tl.. .cic'.Jiit lease where ownership ol the asset is likely to he ootaineu. ;he life of the asset. Lease payments are allocated between interest expense .md lease liability. The interest component is charged acainst profit w nen paid. Operatin'-' leases are expensed as incurred. Afforestation. Forests are initially shown at cost at tne time id acquisition by the -roup. The increase or decrease in the total volume of timber in the forests is calculated each \eor at commercial rates, after making allowances tor Nome loss in the harvesting oftimber and calamities such as tire 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. Inventories including work in progress are valued at the lower of cost and net realisable value. Inventory values are recorded at cost, with any write down to net realisable value being taken to a provision for diminution in value. Overheads directly related to production are included when calculating inventory costs. The value of inventory is derived by the method most appropriate to each particular doss of inventory. The major portion is valued on eithera first-in-first-out or average cost basis. Mineral and pttroleaa exploration and development interests were divested by the group in prior years. No new accumulated expenditure has been capitalised. Lost financial year exploration and development costs incurred were written off to profit and loss. Foreign currency. Z Translation of foreign currency transactions. Foreign currency transactions are convened to Australian dollars at exchange rates ruling at the dates of those transactions. Amounts payable and receivable in foreign currency at balance date are convened to Australian dollars at exchange rates ruling on that date. Exchangedifferences arising from the conversion of amounts payable and receivable in foreign currencies are treated os operating revenue and expenses in the period in which they arise. C Translation of foreign currency financial statements. Assets and liabilities of overseas branches and subsidiaries are translatedat cunency conversion rates ruling at balance date. Revenue and expense items of overseas branches and subsidiaries are translatedat the rates ruling at the end of each month. Exchange differences arising on these translations are recorded in the foreign currency translation reserve. Z Hedging of foreign eonencreommitmems. Exchange differences on the specific hedging or*revenue and expense items togetherwith the costs or gains arising at the nme of entering into the hedge tranvictions :tre .VlCr-J Jl'flu'/'U: '( ;'<v > .mic .`v ;uc included "the r" :>i ii.s Exciunee differences an . ir.mi Nxii ecnerji aedgtng and the specific hedging "i amounts nasanlc and receivable are included in pront and Iiisn m me period in which they art**. Exchange -Jittcrences tin transactions wmcnheuue a set investment is overseas ranches and sur-s.manes are trcnsicrrcu - ns.'lnj-iain in*m rr-,r: ana h*sn o t.c foreign currency translation rcser-e t.-.-.'mervritn me applicable amount oi income tax. Costs or gams arising at tne time of entenne :mn these hedge transactions are accounted tor seporatetv and mugnt to account in profit and loss over tr.; lives nr -he hedge transactions. Transactions such as cross currency swa^-anu forward foreign exchange contracts which do not give rise to eparaie assets anc liabilities are noi re-eocniseo m me balance sneet. 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 tnese funds ore e.xcensed as incurred. Additional details on the group's superannuation funds are provided in note AI. Associated companies are those in which the group has a material investment and has capacity to significantly influence the financial and/or operating policies. Financial information on associated companies is not included in the profit and loss statement or balance sheet prepared in accordance with the Companies (New South Wales) Code. It is shown by way of supplementary information in note 38. Intangibles. Goodwill acquired or arising on consolidation is included in non-current assets and systematically amortised to profit and loss over the period in which the benefits are expected to arise. The period over whichgoodwill is amortised does not exceed twenty years. The unomortised balance of intangibles is reviewed at each balance date and charged to profit and loss to the extern future benefits are no longer probable. Patents and trademarks are included in the accounts at (he cost ofacquisition. No amortisation is provided umti an event occurs which results in a loss or limitation of the * useful life of the asset. Comparative figures. The comparative figures shown in the profit and loss statement arid accompanying notes have been amended to comply with Approved Accounting Standard ASR6I0I8. Profit and Loss Accounts. Hounding amounts to nearest SA 0.1 million. Unless cmenvise shown in (he accounts amounts have been rounded to the nearest tenth ofa million dollars and ore shown by SA million. CSR Limited is a company of a kind referred to in Schedule A of the National Companies and Securities Commission Cla* % Order No 630. .`I'en -> . wsorucr. ' . ConsolidatP J statement of source and a- -iication of funds isrtneveireneeo?) jrcn230 CSIt UlMM JNt ( Um Source of funds Operation* Trading revenue Less outcomes jltcr aoiuvtment ter non-iund items Dividend income Funds from operations Proceeds from disposals of aon-current assets Ordinary and abnormal items Easerdinary items Proceeds from share issues CSR shareholders Minohtv shareholders in subsidiaries Long-term borrowings Received Less repayments and borrowing costs Increase is term creditors 4516.1 36J7.5 2^2 43.9 ere * 241 9017 mi ---- 1663 33 9619 175.7 7J7.J 2-4 II343 *4-i: n: 131 1X6 ">* ) 27 4 695 4 9114 333 <641 1308 3.6 :;ij. 11 1619.0 Application of funds 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 manned and repaid Capital expenditure Momwent is operating working capital inventories Receivables and other current assets Creditors Increase la deferred costs and term debtors Income tax paid -- Dividends paid CSR shareholders Minority shareholders in subsidiaries Increase (decrease) in liquidity k a The accviaaion and &oeul o(tabwdirrio art mlrord dura aceuura end erocctd* from divotawntt rewcovchr. riwoore (be wa and UaMawt of thme wbodiafwi am net tndodrd cftcanrrr. Thw--nia tXmm da tnnf iwaia * (dW: Nwamts Praoen*. pom and empaMM Umumnu Imanpew OtflW MKHIHI auett fnvcncMw* kaopvabtm OUMreairtat awtt Uqwdar Cttaaow atte wwt|>: oon-corTtm frnminm twrtat t tinem; lAtrtroUtn' twm Cmilmim Cub (or turn m mbndiarin Tnmfvfton nmuxm laecu of unttm- ittcrt over OAv&rw* rf 'CAv.^ v'rt ' ..Ve * . Acquired OitpOKd of SAnnUon SA motto* tao IIJ 6.1 3J 62 13 S4* 7J2 at 64 ter U (IlSl Cl.?) cut (SOO) 61 29 A <*.> ()2) ft.l) uz* a.e tut 63 14 '4 3)3 476.5 293 839.8 Id) 137.0 14033 361-0 J.I 10733 103 23-3 5183 40.1 153 24J 1508.1 343 17.7 19.1 i 537.7 1293 (514) (173) 59.1 17 1883 31-1 117.7 3.9 1517 _ ::?.7 2393 27.1 2663 2025.1 1093 213(3 153-9 5.: *59.1 1*77-2 (353.21 1619.0 b Ij'duidttv compenm aw, inonnn out and Qarrm wnsnnj Ku bank overewu and tACA<erm bonowmp end a adnirt (or bunco kb |M Awvuolian wear induurr- Oqmonf pram Otprroation Trancfci* to prowwaao Pijiwd from ecbvntftM Swpta* cm carnal* of non-euntm aura XeaMumcnt of value of inunfiaia N (erttfa eMnaaja turn OiMr l**0 JA mutton 739.4 1944 1421 - 031.4) cwi tU) 44 :?se JA mutton 4M.4 ..* :jZi .314) -alt :o_*t .tn 9027 *-4 Nom on one lOrtHtn* o* im mmn CSX Uiwrt j*i iMBiidunn JA 5 Depreciation Amounts charged tor deorectatior.. umonisaiton and depiction or. leasco assets other proper.*.. plant and ecuicmem goodwill 6 Net interest expense Interest paid or pavable on: long-term debt to: subsidiaries others short-term debt to: subsidiaries others Finance leases Tool interest expense Less: interest income on short-term deposits (note 2) amounts capitalised Net interest expense charged against profit SAOttttM 7 Auditors' remuneration Amounts received or due and receivable bv auditors for: auditing the accounts other services Included above are amounts received or due and receivable by auditors other than the auditor of CSR Un&ed for: auditing the accounts other services treo nv 1772 145 194-4 5.4 |47.< nr 84.1 52.7 32 14041 8041 60.0 *6.4 40 7 1.8 127.9 60.0 0.5 67.4 CmmWim tree 2904 828 2648 538 616 431 596 20 Pm tree 0.7 60J 0.9 61.9 f*- - - 758 18.6 395 3.7 1.1 139.1 55.7 -- 834 *; :i5 t i y.5 54; rin tree 1662 274 16:; *96 8 Directors' and executives' remuneration Aggregate income received or due and receivable bv: directors executive officers whose total income equals or exceeds SS5 000 . Amounts paid to superannuation funds and directors in resoect of the directors' and principal executive officers' retirement * 4938 7004 339 4923 299 1927 6282 ___ 177 i:*5 4762 IS" (mWw hrw tree tm tree tree CwMM tree i*9 The number of directors and executive officers whose total income fell within the following bands: Directors $10 000 to S19 999 S30 000 to $39-999 $60 000 to S69 999 $20 000 to $229 999 $230 000 to S259 999 Directors t I S2S0 000 to S239 999 77 $290 000 to S299999 1 I $330 000 to $359 999 ! S3S0 000 to S3S9 999 I - S46Q 000 to $469 999 Executive officers ' S3S 000 to S94 999 $95 000 to SI04 999 $105 000 to SI U 999 SltS 00010 $124 999 $123 000 to $134 999 S135 000 to $144 999 SMS 000 to $154 999 SI55 000 to $(64 999 $163 000 to $174 999 S17S 000 to SIS4 999 86 86 79 79 95 95 5 15 1 14 14 33 33 32 2 12 1 i: ii 11 Executive officers $185 000 to $194 999 S315 000 to $224 999 S245 000 to S254 999 $235 000 to $294 999 S295 000 to $304 999 SMS 000 to $354 999 $3"5 000 to S3$4 999 S38S 000 to $394 999 S455 000 (O $464 999 * Tin difttton rrpre *0 ir tWc (www-o* of foil #10 *.!! nw%< wo-jKJ b< miryawttMe hawt nijtt hm< reo !: l 1 1 2 I 1 1 1 1 Newi mi 4ttt fawNm ptn j aeaceoiMM CSX Uouku Md .KftiMnna tA siUjm 9 Abnormal items1 Reassessment of (he value of intangibles Provision for aimmution in value of investments Abnormal item net of income tax a The IW9 eesoMaave ym fcav* bees istHrtrrt to cmhwt mb Approved Atqxmim Sunaars ASRUOI*. fro* <M Im Accomis. einb emus amass PUHOkWt aataWd at ewiordi**/v have Been mated u oocnont. The mart SMiT ttnuttiMi Mttna mtaoiSed froa cimwSMfy item. 0 The rcaaamca erne (res ae renew ai preowte fveutt Morris u be dennd tm SQiipOm iee saadsSlOJ writidd a mpea of anwpbla aenmnd dww UMyor. 10 Tax effect accounting Income fax expense . Reconciliation of income tax expense charged in the profit and (ass statement with income tax gi|cutafgrf on operating profit and extraordinary hems. Operating profit aad extraordinary hems ') Income tax expense calculated at 39 cents in the dollar . Increase (decrease) in tax expense due to: non tax deductible: depredation prevision for less on loan to subsidiary provision for diminution in value of investments reassessment of the value of intangibles prevision for loss on business disposals prevision for produo liability t of businesses dosed other expenditure excess of net tangible assets over consideration for subsidiary acquired Ron'taxable surplus on disposals of assets rebates on dividends received overseas tax rate differencial other items Income rax expense on current year's operating profit and extraordinary items Income tax under (over) provided in previous yean Total income tax expense on operating profit and extraordinary items Total income tax expense comprises: additions to provision for current tax additions to (deductions from) provision for deferred tax (additions to) deductions from future tax benefits Future income tax benefits attributable to tax losses carried forward as an asset Future income ax benefits not aken to account Balance at beginning of year Adjustments for subsidiaries acquired and disposed of Benefits not recognised Balance at end of year Ci seliins two t;; 21 - >* i. 739.9 2SK4 124 492.3 191.} 113 3_.4 10.7 5.1 S3 (SJ) (17.7) (94) (OB) 03) 7.7 314 10.1 15.6 4.3 _ (103.91 (10.7) 051 (03) 2864 33 156.6 289.9 159-3 267.1 27.6 (43) 289.9 190-3 (20. U (10.9. 1593 ____ 73 4.2 (43) 13.1 13.1 103 io.: (6.5 O.c 43 final tt im no.6) (10.61 4853 1893 35 -- - - 5.1 33 247.0 96.4 4.0 5.7 4.1 19 153 3.1 (U) (553) 33 (433) (333) 53 147.9 73 1553 59.6 (03) 59.4 1343 223 (13) tS53 73.9 (153) 13 59.4 0.7 ------ 7* 73 _ CSX u lUwiHliinn SA hmUmi 11 Extraordinary herns' Surplus on business disposals Income tax benefit Provision for loss on business disposals Excess 01 net tangible assets over consideration for subsidiary acquired Provision for product liaoificy of businesses dosed Asbestos: provision lor claims . legal and other costs Loss on business disposals Income tax benefit (expense) Extraordinary items set of income tax 4 The lesCcemMaawdfwtttove Mm ameMedie comply KfcAeweved AccooaarttSuaeire aSMIOIS, froth we Imi irmvrw nmTj wnw iimiowi ptmoaii* cutsOMO u etworomwr em htve M*n rtsutw u ooervuie. $f?t 41 million Mi Been irmtuiirn u an *Onormat item. Hie remtutoer (ormu*i pin of oMiur* operatate pram. 12 Dividends Interim dividend paid fulN franked Final dividend proposed fully franked 13 Cash Cash at banks and on hand Short-term loans and deposits 14 Current receivables Trade debtors Provision for doubtful debts Amounts owing by subsidiaries Provision for doubtful debts ~ Other debtors Prevision for doubtful debts Bad debts written otTagainst provisions Trade debtors Amounts owing bv subsidiaries Other debtors IS Current investments Quoted os stock exchanges a* cost Shares in other companies * Debentures* Government stock* a 0<Mtc*MrictMMSaiUl*S6U*MUiofll. b Mark** name efquoted mvnoMfttt it equal to cost value- |V< 203 123.4) 159.3 50.3 125.81 21.4 (53) (6.1) <M> 03 OS.O) (35.0) (10.51 (7.4) ____ U 98.0 lf 6.0 (43) 37.2 31.2 17.5) (55) (6.1) (U) (113) (33.0) (23.5i (105) (3.0) (0,6> (14,7) 1143 1774) 2913 96.0 124.5 2203 1143 1773 2913 96.0 124.5 2205 4.7 217.1 2213 23.1 300.2 3233 7283 (353) 692.7 6803 (235) 656.4 96.9 06.1) 803 7733 9.1 -- IS4J (14.8) 1693 $25.9 5.4 5.0 35 99.9 1033 6.9 191.7 198.6 3665 (235) JS3J 8853 (U) 8M.7 295 (15) 285 12565 - 356.4 (173) 3393 2097.7 - 2097.7 60.1 -- 60.1 2497.0 45 33 363 0.1 43 .. 57.4 165 10.9 4.1 4.5 203 723 _ "- - _ - s.o M M4 ianm<i ofi o< t* itawn CS* UmM tnd 16 Current inventories Raw and process material* and stores provision Tor diminution in value Work in proeress Finished coods Livestock JA Mtfaon 17 Other current assets Prepayments t (8 Non-current receivables Amounts owing by subsidiaries voans to employees * Directors of group companies * Other statT Other loans Provision for doubtful debts nn debtors Incfuda Iowa to dircabrt of CSR United. Amok befae reuadiof 50.833 million (lft 50-dSt ouUiMk nr* r ae lum a Mtzaan* dinoM b ttnmaa aefoarowtdios - nomnliihudSlJTt million (IWSl.C-t nriliooi.portar SUnadliMdlWStnUaiUiMU 19 Non-current investments bares m subsidiaries - soc quoted oa stock txehanfes j dtreoofS* valuation 1967 * At cost revision for losses in subsidiaries Shares is other companies -- not quoted oa stock exchange* * t directors' valuation 1978 4 t cost provision for diminution in value ohares ia other companies -- quoted oa stock exchanges1 At cost "ovtsicn for diminution in value Total shares In other companies c -- ibeonires and government stock -- not quoted oa stock exchanges (at cost) interests in partnerships (at cost) $kata Mta*d on sock actiwitn wav remised bvtftedtfrctofsbvramee to ih ttapWe nua of tbe nwwr *** compute*. b Ottetcd muta *Am Sad lift? S74J aUUouL < getaU t iM gator tuataar in<maent* m Own in nan 3^ CraMMI ife I'M* 2254 (24) 2^2 314 2S4.9 0.7 539.4 155.6 (1.9) 153.7 313 178.1 0.3 364.9 tort* IVtt 108.9 (0.4) 1084 104 884 0.7 208.1 616 (0.9) 61.7 3.7 704 0.3 UL5 19J 22.4 - 10J 10.7 U 164 1204 (54) 13X8 254 158.7 1.0 14.0 1034 (5.0) 1134 35.0 148.3 16274 1.4 - 164 61.1 (14) 17044 254 17294 13910 1.0 14.0 51.7 (19) 1455.8 35.0 14904 04 303-4 (104) 293.1 2934 04 1904 1*4) 135.9 186.4 2934 35.9 (212) 63.7 250.1 0.1 124 305.7 10.1 111 2724 0.1 8914 8914 (0.1) 8914 -- 04 -- 04 04 5.4 3574 363.0 (24.1) 338.9 -- 04 -- 04 04 -- - 04 0.1 124 9034 -- -- 04 10.1 in 361.6 11000043 Nos m *ae inftaif put ' (M uw**i CSH Liam* and uH.eiwiw 20 Non-current inventories Raw and proem materials and stores Finished toods Livestock SA mUtom 21 Property.plant and equipment Load and buiidine 4 Quarry and other raw material reserves Plant and equipment Growing timber and log licences Total property, plant and equipment (details given below) Land aod buildings At directors' valuation 1984 1985 At independent valuation 1983 1987 Accumulated depredation At cost Accumulated depredation Quany and other raw material reserves At cost Accumulated depletion Plant aod equipment At directors' valuation 1962 1933 At independent valuation 1983 1987 At assessed value -- leased assets Accumulated: depredation - valuation amortisation -- leased assets At cost Accumulated depredation Crowing timber and log licences Growing timber at cost Accumulated value of increase in timber volume Log licences at east Accumulated amortisation Total property, plant and equipment a Cams yum SUM I aultioa (eoataMaudl. S3J4 euUaon (pa/cau. Cm* twe im 14.1 3.9 3.0 3.4 U> 0.9 18.1 ____ 83 890.6 6443 1791.7 1233 34503 734.0 2273 1428.0 117.0 :06.3 10 9JJ 863 123 1093 (9.6) 993 8713 (803) 790.7 890.6 12 123 88.4 113 115.4 (7.6) 1073 686.0 (593) 6263 734.0 6643 (203) 6443 244.1 06.6) 2273 103 133 89.6 83 273 150.1 (493) 08.3) 823 27593 00493) 1709.7 1791.7 103 16.1 1013 9.7 27.2 1663 (433) 09.9) 1023 2121.0 (7953) 13253 U2S.0 793 119 911 143 (23) 313 1233 34503 793 73 363 313 (1.4) 30.3 117.0 23063 PM IM IM 5J 30 3.0 3.4 1.0 O.y 93 73 1733 40.7 5312 -- 747.7 173.8 37.0 4433 -- 654 | 10 9.0 823 -- 933 (S3) 810 1103 (213) 883 1733 11.9 85.1 -- 99.2 (631 914 99.0 07.6) 81.4 173.3 453 (43) 40.7 412 (53) 37.0 103 133 893 0.1 143 128.1 (413) (8.1) 78.7 770.1 (315.6) 4543 5333 103 16.1 1013 0.1 14.1 (453 (54.1) l".fi 101.6 619.1 1277.4) 341.7 44?.3 -- - _ -- - -- 747.7 -- -- - - a4 1 11000C50 V* M fcWVMAf pan 01 IM MWW CS* Unwed jjW mi*mJua0 SA utk'ila 22 Movements in consolidated property. plant and equipment Gross book value Balance at beairtnmc of vear Assets: acauired in subsidiaries acquired disposed ot in subsidiaries disposed of Foreign currency movements Increase in timber volume Revaluations and rtdanirications Balance at end of year Depreciation and other provisions Balance at beginning ot year Provisions raised Depredation on assets: disposed of in subsidiaries disposed of is subsidiaries acquired Foreign currency movements Revaluations and reclassifications Balance at end of year Net book value of assets at end of year 23 Intangibles Goodwill at cost Accumulated amortisation Patents and trademarks at cost 24 Other non-current assets Future income tat benefits Deferred costs Other Qvwnr tadMJMf U*dod !) MJtflUl Cw--| liaMrtM fefitccMn tut 801.4 53.9 157.7 (1141 (JJ> 30.7 . (44,81 981.0 67.4 17.2 (1.2) (0.1) 4.8 4.1 .$) 90.4 &9Q.6 SA RtUiMI 244.1 -- 329.6 (1.2) 13.2 -- 79.2 664.9 16.6 (I-O) i!o 0.4 U 20.6 644.3 2237.2 420.2 2591 |48.6i (8.21 43J -- (4361 2909.6 339-2 1512 (3121 (121 113.0 19.7 6.2 1117.9 1791.7 mo iW 118.4 14 <U _ _ 54 126.7 1.4 1.4 -- -- -- _ - 23 123.9 3451.1 476.3 746.1 (622) (13.6) 87-- 56 (9 2) M>S12 944.6 179.0 (38.4) (2J) 118J 241 5.8 1231.7 3450J ?inm lm me 5543 ou> szu 1715 693.7 2864 U64> 2702 137.7 407.9 164 (14) 110 0.1 ___ 111 117 126) 10.1 iai 803 13.2 13 963 814 10.6 0.1 93.1 48.9 48J __ -- 4&9 48J 1 * o* Jun* . a/> Cunent creditors and borrowings' "nt mnriiid of lont;*4efm loans ' -*ra' tmures >nee lease liabilities" * " 'ired -.r* /'"k '"trtnft; secured * unsecured *"*.i*m loans -- secured ! - / / * '"'ton loans -- unsecured W# f rHifnn -it "'-mu owing to subsidiaries U miiitcn oeetane too bomwtnfi by C5R tiAiwO on btMlfof tit* Sum of '"***< for t* 1919/90 mum tod a State of Qvtmitnd sod cite $g|ir Soard '"r 1919/90 ioMt for teanaaf oyeraioni of CM A--i.Iliad near KKhaay. '** mott* jwmj ns State of Qm rmlieR wtadt a ictoddn> ourtm aiMoca m '' *'* <990 rat Setf |iJ9.aiiUo 1909V ' '```-'"araMMetfMbyieoeMddUCftvmetMaaaeMOfCSRUnmtOM* ** T --I--I fOeidiaW. *'*' ^ t cb*t* over tfeo Mmm ua l"faH\wwTiWi mu Keftr to nou ^ Tor Ccajh. **'*99 *r * arf over no aura or caota awbwdux* comparne*. ^ Current provisions *"w".il and sick leave , J-v<n daims and costs ' * *H*md | ""ire henents tax ''-nnous ! '"'it *rriee leave '--1 **n business disposals M-ry site restoration * and retiring allowances V) nvertiaui relocation t ),J"r-red losses and future claims i*** ft* 17.0 4.5 041 l.l 138.7 !1.6 173.7 8.7 231 29.9 5.1 l.i 33.7 91.4 0.6 137.3 4.6 20.5 25.1 3.7 4.0 0.8 10 --' 1564) 1603 133.0 305.5 1445 4483 943 363.7 69.2 5431 907.4 4319 1039.8 81 1.7 0.4 98.0 01 108.7 17J 178 _ (* _ 91.4 06 933 24.1 9 . 112 33 29.: 33 418 176.9 18.7 7193 9153 10453 1711 171 IS613 20501 2210.0 533 8.7 1761 11 289.0 243 11.1 43 43 3.7 21 15.1 231 617.9 49.6 31.6 124.5 0.6 220.9 203 131 13 1.9 3.0 14 3.5 19.3 .. 5016 263 8.7 1761 03 143.1 18_.7 11 1.6 1.7 03 71 10.0 396.6 24.4 29.6 1243 01 33.6 16_.7 IJ 11 1.7 0.5 3.3 7.0 294.5 Sr ;s  JO* MnwiM Ml flt lot MMW 05* bow.1* JO* ...o.^fcjww 27 Non-currem creditors and borrowings Loac-term Inans Secured flunk * Debentures * Finance lease liabilities * Other3 Unsecured Loans from subsidiaries Bunk Notes Other Terre creditors CSR cwwtrribl* sores -- unsecured * SAmtHieo Total non-current creditor? and borrowings will mature as follows: Year ending March 1992 1993 199* 1995 1996 1997 1998 1999 2000 2001 and after Creditors and borrowings without fixed maturity date CSR convertible notes < (kftrwMttaSfo'dmbofMcimiy. t ^tnmi T~ i -tiirtt rrr mimiirr -~~nnrf mm c mtf*0n coarrmew om <* opuo* fleow. *mtrteaou}$ fara*. 28 Non-current provisions .Annual and sick leave Deferred income tax Long-service leave Loss on business disposals Quarrv site restoration Pension and retiring allowances Plant overhaul Product liability of businesses closed Uninsured losses and future claims Other Cmmum iw ts *_ 16.4 10.9 2_~ IT.v i9.: 9.T 10145 3J0J 165 10.7 15 14135 144.4 3010 414.9 315 349.6 XJA 15 205 05 115 13216 89J 15 14135 9" 388.2 185 7.0 124.1 595.9 fVM ire IW _ 6.2 15 12455 _ 05 _ 15 12545 335 44.4 385 .. 1375 _ _ 205 -- 2735 9805 15 12545 8.3 7.4 1.6 647.4 145 .. 124.1 303.3 10 3445 335 275 *145 15 05 30.1 95 105 474.9 tj 249.0 31? 7.5 05 05 0.4 40.0 11 8.4 3475 1.7 * 107.0 235 75 j 0J 0.1 30.1 8.1 85 1865 ' 1.0 34.8 213 7--5 0.2 0.1 40.0 3.1 65 1705 pm. ] t ^ ;A.*} * NtM M4 run a u irtomo CSX UmM* aM wfcwJwne SA ulluli CimMum IM in* rwi t*W 23 Share capital Authorised capital 2 000 000 000 ordinary shares of SI each (1989 -- 2 000000 000) Lets: unissued capital over which options are held ` other unissued and uncalled capital Paid-up capital Paid-up capital comprises: 732 231 904 ordmarv shares ot $1 each fullv paid (1989 -- 691 201 593) 4 794 79$ ordinary shares of St each partly paid to SOiO (1989-10 248 123) 3 (27 000 erdinare shares of SI each partly paid to S0.10 (1989 - 2 775 000) 740 203 699 ordinary shares on issue 0989 - 704 224 716) * a <2121 SO norm mr*immM Ommew 1990* parnine SAA25:ifc wo were tut awmflW*. * Mwn pom. an it Mnw it*} 100 mu* l erdiuiy CSX S1 Pure tsCpuM for tons atwi A* cut m du tout gwoman to cmvtR. ttw rtatauueI P4 TOO mu* ** * *t*4 vu Vftuxtw** du Seal tauter an Jl Mutt Ifft. Opdom m>4 m ertfawy pure <20*2 Tool S 1232 *CZ aotm u rmiil AiipauM SrcwBOtr l*ff *t p*r Tihxt 1A4.00: ftt ere an cMmeMcttbotdcr't mom. att February c*t>nirMi >*** ftecaauemRutMoiHMrcpMu p*raa 31 Muck Itff. Opooru lute ai ontkuty pure J93 03 Ill J*n. a JJOQOOepMatoMfeftAMOodipMioSafl! tnreunudOeeeatberlWJ: M epBM bonk i* tMWHlt u IQUI oreuury CSX St tun at any nax Md It Occam* 1991 OpooasAetd om orttuury uum M9T7 (1919 >12110 3401 :ooo.n 30.8 122A2 733.0 2000.0 <0.5 12519 696.6 ' 2000.0 303 12343 735.0 V" 1252 732J 14 03 735.0 6913 J.l 0.3 696.6 7313 14 ____ 0-3 691 < __ 735.0 696.r Ordinary SAI pure FvUypatd Fully euU tflMpnea EenryAtno SA SAwihss Particulars of shares issued during the year by CSR limited On issue 31 March 1989 Share Purchase Plan reinvested dividends cash contributions -- Employee Share Plan Executive Share/Oprion Plan Convertible notes converted Cption bonds convened Partly paid to fully paid Total movements during year Oa issue 31 March 1990 13 023 123 691 201 S93 352 000 (5 453 323) (5 101 323) 7 921 795 23 703 350 2 011 785 1 314 100 736 000 5 956 119 1 905 629 5 453 32S 41 080 311 732 231 904 4.57 4.66 4J5 4.45 4.12 3.70 150 IOSj 9.4 <T 3.0 t' < * 5.2 166.2 Issued from 1 April to 14 May 1990 Partly paid to fully paid (54 734) 396 314 54 784 4.62 3.71 N'MiMruf* Pure nuP Cbu Ot' itum luaepnc* SA Pu/pau itV;t Particulars of sham issued during the year to minority shareholders in * subsidiary company Bradford Holdings Inc--.-,-.....- - >'-- *------------------------------ " ' 570'` Preferred A SCAN 1000 at par Expansic* Nom* a |M (WiMf M/I 111* aamm CSh limmd mw ownuww tAmtUa* 30 Reserves Share premium Capital Foreran currency translation Total reserves .Movements in share premium reserve Balance at beginning of vear Premium on shares issued Balance at end of year Movements In capital reserves Balance at beginning of vear Increment t decrement! on revaluation of non-current assets Balance at end of year Movements in foreign currency translation reserve Balance at beginning of vear Exchange differences relating to overseas net assets: net gain (loss) on translation net (.loss) gain on hedge transactions after including income tax expense of SI4 million (193940.4 million] Reserves of subsidiaries disposed of Balance at end of year 31 Contracted capital expenditure, (ease and hire expenditure Contracted capital expenditure ! Estimated capital expenditure contracted for at balance date but sot provided for. payable within i year Contracted lease and hire expenditure comm:tineats Not otherwise provided for in the accounts: Usd and buildings quarry and other raw material reserve plant and equipment Contracted lease and hire expenditure comprises: Operating leases Non-canceilacie payable: within 1 year between i and 2 yean between 2 and 5 yean after 5 yean Other payable: within l year between I and 2 yean ' between 2 and 5 yean after 5 yean Total operating tease and hire expenditure Finance leases payable: within l year between l and 2 yean between 2 and 5 yean after 5 yean Total minimum finance lease payrhents Less amounts provided for in the accounts: current tease liabilities non-current lease liabilities Finance lease expenditure not otherwise provided for in the amounts pfotal contracted lease sod hire expenditure nor otherwise provMi for In the accounts Ci ml inW me rvn 11764 149.1 (8.D) 1317.6 S if \ :; 11 1.443 104*4 128J) 1176.5 (49.1 149.1 5564 1043.5 i-rj' UV 1 (33.1) 344 (10-2) 04 (10) 4.6 (4--) ;.i r-:.6i (33.1) Fmw me 1W It 764 9S.4 0.2 1275.1 1048.5 98.4 -- 1146.9 1<US4 128.0 11764 9S6J 924 10484 98.4 - 984 (0.4) 98.4 98.4 0.4 04 (0.4) - 04 274 <* 76.1 1X4 224 1104 517 -- l!4 tc.: 104 10.4 1X7 34*4 68.4 54 44 114 16.6 384 106.9 64 5.7 104 U 244 44 16.4 7.3 f n: 1X6 JO.j 63 a." 4 ;? * 6a mA a' rc: 25 j < 15.: 34 1104 t -- c.: ____ 233 714 1X3 174 100.9 403 93 49.3 tu 10.4 13.0 26.7 614 5*4 4.7 11.6 14.9 36.6 97.9 14 '* 54 - 10.9 6.7 6.8 94 44 274 3.7 24 5.9 4.7 17.1 44.6 24 > e. 3.4 -- 13.4 1.7 14 6.2 ____ 74 3.0 4.7 100.9 494 11*. v | f 1 | * '* MM tunnies nm a. CS* 1JMM wm Vk <mmm 32 Contingent liabilities Contingent liabilities. capable of estimation, arise in respect of the fallowing categories: 1> CSR United Vuri'.'js performance and other guarantees provided to third panics Subsidiary companies Guarantee given by CSR Limited in respect of: amounts borrowed by CSR Finance Ltd and CSR America. Jnc leverage lease commitment of Austocean Pty Ltd Other Other persons Guarantee given to the Queensland Government in respect of loans to a third party Other Other contingent liabilities a Liability as self-insurer -- the patent 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. a The maximum contingent liability of the parent and its subsidiaries for termination benefits under service agreements with directors and persons who take part in the management of (he company is S34 million. A provision for nonexecutive directors* retirement benetm of $04 million is included in the accounts. 33 Interest in joint ventures Interests in joint ventures are included in (he accounts in (he following categories: Current assets Receivables Inventories Notxutreat assets Inventories Property, plant and equipment Other Total assets employed in joint vestures Current liabilities Creditors and borrowings Provisions Noe-current liabilities Provisions Total liabilities Net assets Joint miww Amdpot eomtm Details of ioterests tea mint tentures Tomago aluminium Gove bauxite: alumina Total interests in joint ventures *if<K0*K 35 30 mo tve* *9 IS -I g ____ 24 94 94 174 1.1 i.I 3.S o.: 4.0 S.6 14 23.7 25-- 4.2 222-1 114 238.1 2634 1.7 264 27.9 _ 234.3 10.6 244.9 2724 20.7 194 3.6 3.3 24J 224 3.9 3.9 2S4 235.1 1.6 1,6 24.1 243.7 ^ t led tens tw SA mtUien 201.9 334 235.1 213.7 35.0 243.7 if*a m ____4* _____y, 15874 4A 1591.9 832.T S.- 338.1 __46 ____24 (599-1 02 ____ 04 841.3 fimt vm iw {A mrilwe ---- ---- - iOOCiQSu Note* on M unamp pan in* acccuu C3X Umnra ana wNUianw 33 Interests in joint ventures icontmuesi Value of joint venture production after delrverv costs Tomaso Gove 8avswater Cailide Oravton Lemineton Denison Trough and Roma gas SA onBico Cm me im 87.0 8S.7 _ _ _ -- 1717 73.2 69$ 13 5J 8.S 92 lU I86.S farm me ion 9.2---- 18.0 34 Related party information1 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 otfice throughout the year ended 31 March 1990 are identified in note 41* In addition the group holds a number of immaterial investments in associated companies which are not separately disclosed in ' note 38. These indude the following with which there are material related party transactions: Gypsum Resources Australia Ltd (50H) Ready Mixed Industries Pty Ltd (30*4). SA million loiliUut mo ' Amounts receivable from related parties : Cnrrcst Associated companies Now current Directors of group companies Associated companies Amounts parable to related parties - Current Associated companies Other related parties Material transactions with related patties * Interest revenue Associated companies Dividend revenue Associated companies IS 1.4 SL2 <J 5J 4S 19.6 Ousel Cw> awi rtisid pirty trafttK&Af -nt~ti eili--url ftrlKodpoirr Associated companies CSR Limited Rondo Building Services Pty Ltd CSR Limited Cement Industries Pty Ltd CSR Limited Gypsum Resources Australia Ltd CSR Limited Ready Mixed industries Pty Ltd CSR Limited Ready Mixed Industries Pty Ltd CSR limited The Austral Brick Co Pty Ltd CSR Gypsum Products (CIO Ltd Redland Plasterboard Holdings (UK) Transaction type: A Purchase of goods and sen-ices from related party. S Purchases of cement from related party. C Sale of goods and services to related party. D Loans advanced to related party during the year. Oxupanaw lfm cum bt two4*4 otUmw omraoniMo nemo or Oct*?. Tnmaoiom ncten art OndowO m hui m *2. AU ncueuM * rHurt me ut matt oa eomui caaunueul imu ud weaeot Pont d> yor wooKy annoe wwieanw tnonctcd onli dm Ooteinf' company >M other troop caipiims Truuacuoa t>p* A B A C D D D Pan tm 11 M 440 4i OS 4S CiMiliiiiu Panat two l 4J 4J 40 40.5H ISJ I5J 7.1 7.1 7.4 7.4 10.0 10.0 8.4 - u- I * Note* m end iutmmf pm mo* tern,we C3* U--rd 0*4 ittwdunn Camay* $A wiKion DtoivonuM 35 Particulars relating to group companies twUint M (MMioniM MmakiNMiwM) Read* Mned Contrite ud 'cMtuuiedl CSX Hm*v Ptv Lifitiuo CSR Readwnii ftv Lid SddfrCod Pp> Ud Oicsd Mown llQdvmnl Qd Read*m 1SA1 ftv Ltd (formerly Kotar ftv Ltd) Cmvu laduwna Kv Dtfxn Citoncd Metal tWTI Pr* Land Rod* Mit Conem NT> Rtv Ltd RCL Semen N.V <0d 4 fret) t Ri*nrS*dAGm*(P*Ud Sctun KotdMtl Limited Bnett Ptv Ltd Snoroct Oumei fcv Ud Wot Mormon induunn hr Ltd Wca Mermen Coiuneon Pw Ltd Retterce tadvtaus Am ft* Ud Riotdaa Oomci Pw ltd Sb-- Radiant ft* Ltd Suepended ftpdttenManufaetnmno fty Ltd Spiteferd Orman Prodocs ft* Ltd Territory Afjrtpu Soopact ft* Ltd Territory A*pua lUudwm Pw Ltd Topflu ft* Ltd (MH CSR Cronoi VWWtaAldteCerfmroardn(aSene*entPdtm)afnmte*ts*Uffttd** Ud Uooed (M.dS CSR Group) AanrUa Aanua Aunki Auoniia Aaoma (notfllM tmiu NettAanUe* Aiucratu Autnana Awnu Awuctia Aiatra/u Aintrtin flnieniii AottUU Aaaatio Amtruie Annua ----' Aomita Ausntu Atone Amrana CMmaaiMaiMdtLSA CSR Id laatdil Ooenot Ltd S CSR Ancnca. (wiiroemen* AMC Hotdifln (USA) Ltd) '* CSR ConitMOiod staunaa (USA) loe *4 ARCA A.-i>mtnei Core '* Amman AKrtpadGxgotmua *d Ontym 4 Mandat InC * Erw AffrepwL tac '* Paetbad fttwim lot ** Pemyane Preonat Curpormon '* PamtAt AMnptf Prodown, tac ** ARC SfaitnMt Corporation * CSRCaaotftosUSA{ac'c* ARC Ttaaaponaoea C<mm) ** Unlit Condon CeeporaaM '* Auocattd Send 4 Ctavet Compen*. lac ** Cowuqtoa Product Coworaoon '* -- Rinks Slatman Ceiporuea'* M)(ade>UAdtitufooptot.aulAee*ibqtuditdd I9t0) Mctwdtt Send. toe *d RitterCrs-Con Coro *d Ritter Read* Corporation '* RitterTraaaoon CnoMMe *** Soytkm AtttttamCement? ** Clwum L'dAcmt Co. lae ilonndtied |0*0*d USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA ISA USA USA USA TtmMrprddnca HardfeoardiAwaalu Ud Amenno Pynetmord ftv Ud Awtnm Rntatt Todttt Pi* ltd ilndfdn SoCrooQd HoL)m*> Limited Awmni roimta Atntolw ft Ud tmau &>fr--w *tester, xno OndonMM Company Ptppnmry Limited * AvuiMa Sutmoaoi Adelaide ft* Law* Aoareiii Softamoo* Oamador Pmmeury Limned Adtoasa Sflrtdind Pbwaomlt *! Umned >wnm Soft'MeJl PaneiWw'd hr Liataed Aasrana Softaoad Pontand P:* Lsmi Avttnua Soft'i'OtJt OurtR'UiW Ptv Ltd Amo** Pei me Lot poidmet Ptv Ltd 4*unua SawdOMCSMiw famn Pit Ltd Aottnoa SO. Loffm* ft> Ud Awunna PenM-lop PrrttMt* Pty Ltd Anwratu Pemu-Lo* PmceutiNSW) fty Ltd Avow* SoftmnaOtSEUnu n> Umned' Amtntu TtnFmvnAdl pjperComfmdy nP Auuntia Propnttaey Ltmitcd Aadrwa Totter HaUmf* Ud 4 nr1| AMerfim Its Ud Awma tottfnMntnmj*ftv Ud* Anwana SwiPrm vkimu Hmdwnre fty Ltd * Awnu BnilnM> Semwnm* Co rt* Ud Awnw WMpttU Hitttte SMWrv Pty Ltd * Amtratie CSR StfAwdv ipvrrnvund* ftv LM Anvtrab* Dumw Ptv Ltd t .*' .'3h Rgnek ruf'e--'* 1* l'1 wtt.fi R<tLSc.v>v'*i *D* tm; wMtUiw t-H*wT . V'rwtr- CttMuooe to frooo penes* prow m extraordinary nemt iteMOMUt l0 IM0 Root ntnooT MCMBMAI IttO i*n 12.1 44 t OJ t 42 4R U a (04) (44) M 43 A 43 (42) * 42 ms 02 02 117.4) -- 03 03 (03) A OS (Oil (43) (IJ) (41) OJ 43 03 (215) (SR) (1 U> t emt lldt 2J 0.4* 47* 04* J Wt 44* 4C* u* 04* 4t* fjt 14* mm# -* 13* JJ* _# 43* f .t Oir 00* mmt Ut Olt _t Ut I4t WSJ* wt 4317* WSJ7 (41) 42 (IJ) 2U It (W) 40 (47) <4J) 41 44 2J 47 M 14 43 41 4! 42 _ -- (44) 41 1) _ _ 11 IJ (IA 44 (02) (04) (104) -- (AS) 34 02 OP 1.0 5J * <Oo( 14 42 m 14 -- -- -- -- -- -- _ IS n 44* 004* mr mat wt 43tJt i* 243* 4HJP 204* 13* mt ttat 243* 7.0* 42* 04* 2734* 374* 14* 40* 3*4* 704* 0,4* 11* 174* 11* * 7.0* 42* 04* 2714* J7.4* 14* 04* )U* 704* 04* Si* !74> --* * 40* 1.0* 02* 42* ?0J* 244* *43* :tt* )J 13* 42* 02* 42* d2* .i -r , * A' 03* .t ' ' '.H 6S00C ) t Nee aM (tmataf ma at (Ac JMWtMt CSK Uamtd rod turnupton CoVT pt SA atdltoa amonnoe 35 Particulars relating to group companies icsmtnueci Svfir Amalgamated Sugar MilH Ay Ud Auuoctas Pit Ud CSK Imiimrnu Otatta LM S CkckoiotratawamUd** CMm Moowmc* Ud * Otd* LtVttMW IfttJ ** Fqrata t.>Zt Limoni * Ckcba ArtstmoK f*sd Noosm** Ud ** NtwZoUad Sugar CeUd*> CSK Oitoihrtm lartsutras fly Ltd * Aftne* l*rooito ft* Ltrrmaa * CSK Dttuikrtn Ownutw Pry Ud Dvtaiaod B.V. Z AirsaoM N.V M C Wood Sea 4 Co ft* Ltd Asckar Foeda ftv U4 * Ceamtt AgtnomtlfTnKy Ltd * Oougls Feed*fty Ltd* Hantoe* feed Mm fir lad JW Edward* ft* Ltd Kosov Sugar MaiiLidMMd Auunfu Aasnoa NmZcalaod New Zealand NraZeiaod Sr* Zariftd NcwZcaiaod Now Eniian Aasraaa Aotiratit Not AauUct Amraka AsaW Aortrtt* dMndi Aoaaiia Asms AaSOtt Kart* Cm* Cssrai Mid Cerseaa* limocd Qmmuland Han mag Ce ftv Ud Roger dark* fackapog ftjr Ltd TKt Kaugatoa Sugar Co tty Lad ,1 amlia AaaraM AlMSba AMs Govt Aiugiiowon Ud (Ord. Non-rod 7.7SS prtf-TW CSK Grove) Ge* AJutmmafli finaaca Ltd lOrd. M prtr--70'L CSR Croup) Atstnlia Aarnnki If- OdoodCa CSK fctroHMB UdMod (*oM is 1MK CSK fttroM*m<iatcre*uos*l) Limrd '>(mM ia 191*1 CSK fttreiots tAs* fioAa Loosed *<<Mtda> 19191 CSK Onas Od ft* Ud ** (MU id 19991 CSRfwro**odnSctMsrUiriid `^(toUat 19191 CSK fttrotwi Oetntroej fty Limns) (mU is 19991 CSK fwolntm Kprttao Holdiop fty Limsad <otd is 19991 CSK futww Kptkso* Limned (toU is 19991 Kids* OrtUiag fly Ud Kidstr Onttiog [mtmsiunrt fty Ud1 (toid is 19991 ScsdnH K* Ud * Sbdf OnUtag fit Ud OrilbOKS loMTTtsioeil Ltd *t(toMia 19991 Cool octanes orrtMeCoHiwm ft* Ud Had Cm* Coai ft* Ltd Tkka HoUisp UdiOrd A A Si Skorta Callid* Opts Cm ft* Ud Caffido Opts Cm Catna ft* Ud (mM m 19*91 Tkio* Sreo Ny Ltd Thia* Koprttsa ft* Ud Wottoni ColiitfKi Ud itetd is 19991 Cardxtai Cestrecnr* ft* Ud uotd is 1999) MltunS mototo Miscrp* K* Ltd (Iold us 19991 PT Loaasg Mssag (70*1 CSK Crewoit* (told is I9I9> lair* Cdaspaor Uaario < *9 w*mck Cainpm* Lastwd * *9 faoea K* Ltd it*U <s 19991 Tad aWdiin twins pint: partai ceespaa* praar pt* istoa lor topirdur* coapaov lotto cur tsateadauon edantSMm laa: raw* torapaa* orvutsd* A--rtia Hoag Kesg HasgKosg Sagapen Hoag tong AmnH* Aaaw ISHtl Aosnin A*sr*fc* Ausniia Hang Koag Aosrdn Aaoaaa Ausairt Asms Amoiiu it nti AetmNi Aasrana >antn ismlu taloawn Haag Kong Heat Ken* AoMtafca CasutOwaoa e grem opfrauog pres* m <xtraordtsw* stop. aA*r ateeaw* cat t90S in* Seek *lt( 199* ln Id ft kj 0* Id 1.9 A 1.7 *4 ms 7d IOJ M -- A2 04 W. * -m (1491 no .. sw AS mm A7 SK9 U rj J.9 44 1.9 9St US* m^m IS* U* SJt .t m* SL3* t Oat Lft 30)9 J7.l 04* 309 JIJ* 44<* 1.9* JOI* JT.I* (U) (04) ost 1* w ms (154) (tain JST4 J4 (l*J) (^l 03 7.1 i4 OJI 03 OJ (O.t) mm (SI OJI (Oil 19 OJ OJl IJ 19J (0 )> 197) 1*7.4 |4 (471 (SS.JI J07.0 _ SSt J4* J774 2M.I* Alt 19* J774* o:* 3*a:* or t sm* CinwMloMUM.NmZiiiMi k Cvna m Minni m Ntkcrt*adA c CiMMiwMa NMtrriaeet Aacdkfc 4 CUTMMiWMaaCSA. CiiMWIwMaMMaai f Came oa knows m Malay**. CamtiMMwHM|iun( k CwwoaMMiSingapore, i Camtt ea emaoi* * Pni4rpp<nr< j Cam** oa out**-, a Fiji. k CanaaiNiM^ .. Oa,*U Carnnoa tmni * On.'i-j v - '.<71 9 Canrn no fiwurx- - ~ CarncaoafcsaMMiaTW ftopM't Kcpuktic.ofCkiam p SuasorydrtariiartmpOMditadn Siuidiag aad ceatuwcuoa aumnaife g S*4wd*ry*r KcarrrJofar MOH Litmsrd. t t Skoa m dupome of IW. SubtcQymay tax eearraa Sat Wo 1 (a trttaiarr jigoioaaaa * Subadiaf* Maidaue dsriri| tht poor. . 'jn<v;*v iruilt trtcntd loader Coti- ?. t -Arm *?. toc 1 - v.~ ; -aJ jrw M J' '- ' ' r~i tint' er -xne jr- llOOOOSO CSR Unwed anfi unifinw 36 Disposal of subsidiaries Subsidiaries disposed of during (be year C Wood Son L Co Ply Ltd and subsidiaries * Mack industries. Inc4 Seadrill Piv Ltd i Pio>nu>ni <or Ion m fiiteoui ot am wUriunn *rt mafic m a pner %j(. e* Wl 21.0 3.0 3.3 1.5 __ 37 Acquisition of subsidiaries Subsidiaries acquired during (be year * ARC Acquisition Corp and subsidiaries ARC Maienats Corporation ARC Transportation Company FatTer Properties Limited Haveiock Food Products Ptv Ltd and subsidiaries Hydro Conduit Corporation ana subsidiaries McIntosh Sand. Inc Perraa-Log Holdings Ply Ltd and subsidiaries Portable Aggregate Producers. Inc Roger Clarke Packaging Pry Ltd * Spun-Con Ply Ltd 4 Ekp tt i>im lOOSefuetifif WfOTiquKiMcwnMt make ef the Mmdav? ve ndudefi ia pteei iMlarinatttwwnl k AmntUtt veer epoonsvete excreted i mum farm Praecruei Unwed tacft had prtnevdy emed and *e<d 41 a pnu CSR't head efiee teaetc* e ladsfia mourr trea mvckbcm ef $0.1 suitiee. d IteftrCoMoiidawdMawBCMefsMKeandanpboneecffundi. 0t mum Cue UKM03DM SA Oilbon ,s unpBk coca SA rndhon Jan 90 Jan 90 Jan 90 Apr 89 Aue 89 Jan 90 Jun 39 Mar 90 Mar 90 Sep 89 ' Jun 89 4)5.7 66._6 0.2 0.3 3212 1.6 3.1 4.0 0._1 839.3 4 435.0 54_.0 21.6 0J 14U 0.5 5.0 3J _ Auedm't ear end * S laterac * Value w Book leaAtane earner advance* thambdd IO sUflAgre SA miiea SAatiiw 38 Equity accounting information " lomttnents in material associated companies The Austral Brick Co Pry Ltd brick and pipe manufacture (bolding company) Cement Industries Pry Ltd * cement manufacture (holding company) Redland Plasterboard Holdings (UK) plasterboard manufacture (holding company) Redland Plasterboard BV plasterboard manufacture (holding company) 31 Mar 90 31 Mar 90 31 Dec 39 31 Dec 39 50.0 50.0 49.0 49.0 Other companies 75.9 94.4 SU 50.9 279.5 262 305.7 10.0 36.5 9-- _ 55' $hartef pro*iA4 MOMfdlAlA emitter ax SAeultion Dividend* received SA adlien 119 3.9 (11.6) (0.5 1 9.7 9.5 7.3 - _ 16.3 7J 24.1 4 Nvvea and (wnwnf pMutiMMMim CSk Um*rd ami amuduno SA mdhM Comotadated IMP lfl 38 Equity accounting information ice:i:;nueoi Profit and tost statement Operating profit before abnormal items and income tax Loss on abnormal items Operating profit before income tax Income tax attributable to operating profit Operating profit after income tax Profit on extraordinary items Income tax benefit attributable to extraordinary items 739.4 739-4 289.9 4495 05 Profit on extraordinary items after income tax 05 Operating profit and extraordiasry'ttems after income tax Minority interests in operating profit and extraordinary hems after income tax 4504 425 Operating profit and extraordinary items after income tax attributable tomembers of CSR Limited Retained profits at trie beginning of the vear Adjustment to retained profits for: associated companies sold dividend income from associated companies Dividends provided for or paid Other movements Retained profits at the end of the year 407-4 3645 29U 4802 543.3 197.41 466.4 211.7 234.7 455 52.4 98.0 3317 25.7 307.0 2775 2205 364.0 Balance sheet Investment in iwvinia-t companies At cost or valuation Retained profits Post-acquisition reserves Aggregate carrying amount Other non-currenc investments Total non-current investments Other assets Total asacss Total liabilities Net assets Share capital Reserves Retained profits Minority shareholders' interest in subsidiaries Total shareholders' equity 2795 1485 2795 202 3007 59935 62995 3413.7 28SS5 735.0 13175 4802 352.7 20855 2485 123.3 2725 4773.S 5046.1 2486.1 2560.0 6965 1164.5 364.0 334.9 2560.0 TV poop n *o> imwt of any wfiuftcant mo or tnnucuent hrt have occurred after Vyear M of can cwmu company men cmmI materially adca me nnaaeul Swan v opetw* pcnownaace or mac evnpmy. t AM Sim MW an urdman. c HeWui* company inrAiexraiiM 4 tUadoi Cement HoMmea Ltd. 4 R|mforuHTtm year prom* arm roamed pram are denveo by dcdoaui* dividend mtamt tram moturnl comp**** from iv rifum'^ad add*** the mar* of prove of jrvocuMdvompamn. f monoiil companies are voided tor in Ac cootcAdcMd Itiinu Therefore o Wpnrwmt to cnnioiidared yum n wovnu. Sfcjncf mnmnt mvpe*j l IU1 185 26.1 -- 185 26.1 95 11.9 8.7 14.2 l.l --.1.0 _ 1.1 1.0 94 ' Ol 155 0.1 9.7 185) (164) 15.1 (85) 25 (17.7) Ol (105) l85) (105) 145 3.7 -- 3.7 _ 07 -- 07 14.0 (105) 35 (85) 114 4.1 -- 4.1 _ 4.1 _ 4.1 114 (S3) 4.1 CaWtdmeO and tore of vaaeawd eompama4 tow im 7495 _ 749.6 299.4 4505 15 5525 (97.4) 454.8 2235 2315 465 514 15 99.0 4S14 42.7 3305 254 409.1 355.7 29U (3.7) 469.9 ^m 304.4 2695 25 2205 355.7 2795 (105) 144 2802 265 309.4 59935 6302.9 3413.7 28895 735.0 13315 469.9 352.7 28895 1485 (83) 114 (516 123.8 276.4 47734 50505 2486.1 2564.1 696.6 1176.9 355.7 334.9 2564.1 <. V t lOimMt IWI Mt UM tCBMMM CSft UfflMfl m --<!<unw Srfxwm reran** ' (w i<m Ofwrauat era** H jtnnrmar ntn*. urin. fomfit i Tool i 39 Segment information Industry scgmtno Building anc cansmicuon matenuis Construction materials USA Timber produce Sugar Aluminium 1900.0 620.9 5374 1168.7 3068 ;:s6.3 453.9 493.1 3138 016 360.1 54.2 86.9 191.1 111.1 :~6 592! 958 117.4 115.1 2261J 1817.6 7298 890.9 329.9 ISS4.I 756.6 595.9 803.9 325.9 Segment totals Unallocated items 45338 3334.4 6.7 1313* 803.4 (9.7) 631.3 (37.2) 60298 4366.4 269.7 679.7 45403 3465.6 793.7 604.6 --67993 5046.1 Geographical segments Australia North America New Zealand Europe Others 3712.1 68241 1138 1741 15.5 23408 499.3 93.8 3.8 36.1 7314) $53 13.4 (9.1) 3.1 533.3 56.8 13.7 (Ol) 0.4 41517 1885.6 89J 1413 298 4044.6 8123 723 838 33.4 Products and stniees 45*03 * 3465.6 ...... 793.7 604.6 62991 5046.1 -- Building and eoasmtctwA materials aggregates and sand: pre-mixed concrete: asphalt: concrete pipes and other pre-cast concrete products: cement: day bricks: pavers and pipes: concrete and day roof tiles: plasterboard and plasterboard accessories: autoclaved aerated concrete: fibre concrete: fibreglass, rockwool and foil insulation: air handling produets Cosstreerioa materials USA aggregates and sand: pre-mixed concrete: asphalt: concrete pipes and blocks: prestressed concrete products: cement Timber products wood panel products: sawn timber products: high pressure laminates: furniture components: plywood Sugar raw and mined sugar: ethanol: sugar industry services: shipping Aluminium bauxite: alumina: aluminium Resources gold: minerals exploration: coal: hydrocarbons; pipeline operation: contract drilling 3 SrfaKac rrmn a 4mdcnd aeons, lem MpPPU olo i* Mpfrblt b Iao*s rooms SI (4.4 CmmWw* SAwdiiow____________iw_______ mo Part* im im 40 Non-hedged foreign currency balances The Australian dollar equivalents of non-hedged foreign currency balances are induded in the accounts as tbUows: United States dollars Current assets Non-current assets Current liabilities Non-current liabilities New Zealand dollars Current assets Non-current asses Current liabilities Non-current liabilities British Pounds sterling Current asses Non-current assets Current liabilities Noa-muTem liabilities Other eurrencss Current asses Non-current assets Current liabilities Non-curr:r.: .-abilities * 293.9 IS4U) (327.9) (13010) 2054) 237.0 6118 (513.3) (246.7) 37.7 410 298 (98) (28) 598 88 518 (58) (0.1) 54.7 258 298 (4.6) (I.SI 43.7 12.5 IS.S (4.") 26.7 30.0 98.9 (3X8) (21.4) 6s.r 15.3 7S.Q (1*.S) 115.51 5i: 1038 19.9 (1693) (1608) (2053) 733 3178 (JI3J) (1703) |917) _ _ (158) - (188) _ -- (308) (308) _ (173) 1173) -- .... -- 0.1 -- (78) : ;! '' xXi.it 13 -- (314) - i v. <1000063 ** NoiaMM tomehf fan tM ihc noitwi CS* Umaml aM mPwaiaevn 41 Superannuation commitments The CSR Croup purticioates in a number of superannuation funds in Auairalu. New Zealand and other countries where it operates. Most were eua&Ushed 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 assets of all funds were sufficient to satisfy alt benefits which would have been vested in the event of termination of (he fund, or in (he event of the voluntary or comoulsory termination of the employment of each employee. Due to an actuarial surplus in the CSR Officers' Provident Fund (OPF) and on advice from the then actuary to the OPF Mr W K Roberts FIAA the group's contributions to the OPF have been suspended since July 1987. This suspension was confirmed by the fund's current actuary Mr Geoffrey F Burgess FIAA in June 1989 and is subject to review following future actuarial valuations of the fund. The meffloe^ and the croup contnButioni as specified m rule-v oi the resrecme funds. The ;roua . masor lunds as at Jl \t*rcn ivao art summonsed OeicV From J Aon! 1990 the OPFs name u altered (0 CSR Staff Superannuation FundiSSFi U> effect from Out date all members of CSR Staff <">>> Accumulation Retirement Fund transferred to OPF The groups contributions to SSF for tuen transferred aemoers are being paid m lieu from surplus assn* m SSF. Thu arrangement ts also subfRf to renew following t future actuanai' aluation of the tur-d In respect oi :he Oenneo 8enertt* Omiies of SSF the group hat undertaken to ensure that SSF has assets of not leu than 120 percent oi the amount required to meet the actuarial liabilities of the Division. CSR OAeen'Prawdeftt fond CSRSutfCjiAAMunuuuen iRamm Ante CU hmawu Type of benefit Basts of contributions Group legal obligation to contribute Last actuarial assessment Defined benefits (lump sum and pension) Percentage of member's salary contributed by member and the group Enforceable obligation subject to a right'to reduce or discontinue on six months' notice to the Trustee Completed JO June 1939 bv Mr Gco(Trev F Burgess FIAA Cash accumulation benefits (lump sum) Percentage of member's salary contributed by member and the group Enforceable obligation subject to a right to reduce or discontinue on six months' notice to the Trustee Not applicable Cash accumulation benefits (lump sum) Percentage of member's wage contributed by member and the group Enforceable obligation subject to a nght to reduce or discontinue on su months' noacc to the Trustee Not applicable Skarahe*am hint lWO fvttepe* PcrMoaUv Bciwwuilv Fim* paid Penman* 6*neuu* Tout two m* 42 Interests of directors (CSR Group)' KW Steel* AW Coates* D K Voss BNKdman R H MvetS JSculIv B W Macdonald J F Kirk J 0 Couch (G Burgess E F Herbert4 w A Bennett R K Barton * G V Kell* * 2 000 sot: 102 *43 17 lt4 7 337 2200 S 134 10 329 3 769 4 637 1 139 2 494 Fm to aea-eteanive ftreaort fowled SAJJOWU lax cw. Oeutk are on pae 40. Tout team be pa* (ha yea? to current non-eicewmtbrcaoa are expecue to fee abM SAJSO 000. Oiratwn are far the maor <*s Macaw tiwr Mur m paiMM** itor Uku*. Nertxecimve Artetoo kin etmcc afretraem nk CSR ha tom'orm M mt prenueni oi the eofliftuiy't AnKMt at AMOOauoa m nuai of (MtfUanu w kummw and xnmuM* mkmm Eteeiave iurcciect *** wmet nwwwi emh CSX m entwo <a their ewpKwwcm a wmorciccunvaiM receive (rmgn<m~in i .<9 .. I> ( MU (Sr Xettred .icinimfict M S; c tewemuiU turned share. *? 9^-lfo,' -- >Vll4,<*> -i cv> .. juniev - 33 440 5 <01 502 10 000 130 000 100 000 74 000 95 000 9940 85 440 35 440 551 14 566 14 566 102 843 102343 17 114 15 362 7 387 2200 6 390 2 200 5 184 3 310. 20 329 10 OK 133 769 *S 32: -S3 0C: 1(14 637 aV 43' 75 139 97 494 Su direaor has nvcmU r ttomac emtrtcl to recent ** other pettem. other than (lute hwmwmcu here, hr realon at a taatna made P<r the company or a related pam ** the Arcane. or us a li* h*ea he a a ewmaer. ae mi a cewpaa* hicft he * iMtunnn il aiunAH wwerea. No Circeur ha an* iMemi tn * eornnet or pwixvl <*** *** cpinpanv. There are no material eentnen mvutvMt* vltrraon mtttttu other H wdwvimf * ihe end o ihn hiuncuJ ><ar o* ehlcreU 4 Share information a. _ .w--4 Fully Tfcwfceia<f> u*m - M **0*4 nMt Slum__________% Distribution of shareholders and shareholding at U May 1990 Registered address Australia New Zealand United Kingdom Other 93 38T 5 ?o: 1 538 969 910 698 426 S30 5.6 15 056 683 14 4 901 372 0.9 15 113 127 Class of holder Individuals Companies 101 996 . 100.0 731 493 002 93 317 8 179 910 171 115 023 3.0 560 382 979 101 996 100.0 731 49S 002 Size of holding I -- 99 100- 1000 1001 -- 5000 5001 - 10000 10 001 and over 7 465 50 366 34 393 6 US 3 327 'J 320 651 494 22 991 353 33.6 73 040 467 6.0 42 729 730 34 537 415 801 101 996 100.0. 731493 002 95.5 1.3 0.7 10 100.0 23.4 76.6 100.0 0.1 3.1 10.7 54 304 100.0 Registered address Australia Other Class of bolder Individuals Size of holding 100- 1000 1001 -5000 5001 - 10 000 1000! and over Fully PM Hum- lull winf <tfms t Slum. n 5372 ___ 460 6 532 6 333 917 7J 100.0 " 100.0 <322 100.0 1 144 500 90 500 1 235 000 917 74 100.0 1 235 000 100.0 1235 000 100.0 6 332 100.0 1 235 000 100.0 Pan* PM Jure -1',4 nu| nwi SharetwUm__________*v________ slum * 6 696 595 134 61 74*6 9.5 7.9 1.3 0.8 100.0 J 570 776 146 313 40 075 21 337 4 779 011 95.6 3.1 04 0.5 100.0 6 839 597 7 486 910 10 100.0 4 534 2 684 223 21 24 7 436 60.6 354 3.0 04 04 100.0 1 344 037 3 434 924 4 779 on 162 436 775 809 451 732 157 538 3 231 396 4779 011 211 71.9 100.0 -- 3.4 164 94 34 674 100.0 Partly pM Hum -- a* eo(tc ncs Surttwtdcrs H Slum H 300 954 13 4.2 313 100.0 313 100.0 62 194 102 316 53 134 91 29.1 313 100.0 2946000 142 000 3 088 000 95.4 4.6 100.0 3 083 000 100.0 62 000 300 500 459 500 2 266 000 3 033 000 10 9.7 14.9 73.4 100,0 30 largest shareholders as at 14 May >990 (ranked for fully paid! * Australian Mutual Provident Society * Beaglernoat Nominees ANZ Nominees Ltd Bank of New South Wales Nominees Pty Ltd Pendal Nominees Pty Ltd National Nominees Ltd National Mutual Life Association of Australasia Ltd Queensland Treasury Corporation Toyota Motor Corporation State Authorities Superannuation Board Cucorp Nominees Pty Limned Devrossi Piv Ltd New Zealand Wine Pty Limited Superannuation Fund Investment Trust Colonial Mutual Life Assurance Sotietv Ltd Mutual Life and Citizens Assurance Co Ltd Jaminigo Pty Ltd Chase AMP Nominees Limited ANZ Executors Nominee Ltd The Prudential Assurance Company Ltd Ordatuy SI ttamimillieni Fully pad______ Pawty paid loVQ 74C4 MUM* 1094 434 404 274 25.7 134 15.1 144 13.1 110 11.0 17 10 7.1 7.0 7.0 6.6 64 << 4.5 3911 _ U42 -- 545 0.1 5.44 0.1 3.71 -- 3.47 -- 154 -- 104 -- 100 -- 1.77 -- 142 -- 1.49 -- 1.17 -- 1.08 _ 0.96 -- 0.95 -- 0.95 _ 049 __ 045 -- 0.74 -- 04! a: 5195 i ladttdu item teiMricuOylKM to FI(dmCluJImt United McfcM nor koto rid miilim ttum xememiflf V-SJ^oT wuj iuuM aonjL * tV- AmsujIc.* Mutiut Provulere Sucwn -t n .vrMunua* w.:y >.?>4et ia A lunf'-J k!*i rettisJS KtreuMlwr-. .cWi- y'* n , . .Gn.tA% SB'"; HUUImvs^: Ji}. Directors' statement Auditors' report Statement by direasrs an the acmes set eat on pages 34 to 51 In the opinion ofthe directors ofCSR Limited: (at the profit and loss statement is drawn up so as to give a true and fairviewofthe rauis of the compary forthe financial year ended 31 March 1990: <bt the balance sheet is drawn up so as to give a true and fairview ofthe state ofaffairs of the company as at 31 March 1990: le> at the date ofthis statement, thereare reasonable grounds to believe chat the company will be able to pay its debs as and when they foil due: (d) the accompanying group accounts are drawn up so as to give a true and fairviewof: (i> the resides of the company and is subsidiaries for the financial year ended 31 March 1990: and (> the state ofaffairs of the company and is subsidiaries as at3l March 1990. so far as they concern members of the company: (e) the accountsand group accounts have been made out in accordance with applicable approved accounting standards. Signed in accordance with a resolutionofthe directors. Auditors' reportto the members of CSR United. We have audited the accounts set out on pages 3d tand 60 in accordance with Australian Auditing Su Inouropinion: the accounts of CSR Limited, and the group accou property drawn up m accordance with the provisio the Companies (New South Wales) Code and so as a true and fairview of: (a) the state ofaffairs of the companyand of-thcgr at3l March 1990 and ofthe results ofthe com? and of the group for the year ended on that date as they concern members ofthe holdingcomps (b) the other matters required by section 369 ofthe tp be dealt with in the accounts and in the grout accounts: and are in accordance with applicable Australian Accounting Standards and applicable approved accounting standards. The names ofthe subsidiaries ofwhich we have mr as auditors have been indicated in note 35. ${$2-- (C Burgess Managing director AW Coates Chairman 4 June 1990 Deloitte Ross Tohmatsu H i Mattock Parser Chartered Accountants 4 June 1990. 1i *>00065  I ' * Eleven-year performance PromsadfoasiSAmtUioiij Gran mw group revenue plot taka mod* as agent Group tcvcnue Tndinc revenue Qcytcww Evnme* before tong-term merest and us More net merest. totem exeunte and ui Interest on tont-verm borrowings Income tax cxoenfe Net profit 5445 n tsu m in 794 SI 290 5265 4444 3438 164 621 605 78 :i2 4638 3942 2672 143 301 -:i i 12 190 3209 2418 2077 119 334 349 108 67 36U 3003 2212 123 236 2*0 70 at 2796 2183 2074 120 2*2 229 7) M 270* 2044 1852 110 227 :i9 67 37 2306 19)6 I7S7 109 189 183 73 50 2679 1763 1603 89 183 154 53 35 2932 1828 1652 239 221 Before abnormal and esnaotetBary Betas appheablew CSRstoeholdeti for 6oathMb30 September for6 months to 31 Much Afterabnormal and astnordhury mas applicable to CSR shatehoMws Dividends 407 306 185 150 123 92 92 73 82 13* 147 SO 58 33 *9 44 4) i.1 173 139 i03 92 70 43 48 32 40 51 407 307 186 tto <801 <631 92 81 81 127 291 220 IS 102 90 Jut. 64 60 47 46 Balance toeet iSA million! Current assets Property. ptargandequipment Interests a joint veaute* end paraenhips Invescncnts Delhi invesnea Intangibles I Fame them as benefits . Other noo-carea assets 1574 1609 1325 1002 858 796 796 663 771 8*0 3450 2307 1998 1519 1283 1003 919 996 1016 831 - - - - - 470 476 496 447 386 3M 273 366 167 136 169 206 194 122 153 - - - 984 1101 271 249 161 147 m 408 260 42 - - 34 36 37 it 82 79 96 103 133 109 73 51 31 2 168 190 162 249 274 171 89 69 57 Total assets Currea owners sad berawtngs Cunent provisions NoMontMQtdsoRffd bonvnftts Deferred income as wd odter nocmaiets provisions Deferred foreign exchange piss CM 507 m t4t4 473 - S0C6 10*0 502 396 348 - 44(8 772 423 816 294 - 3972 613 165 1007 320 3 3752 775 127 916 310 7 3116 686 128 358 326 - 2960 374 132 494 2St - 2710 393 130 368 223 - 2660. 327 147 444 217 - 2298 418 133 40$ 185 ., Total lubilioei Net assets 3414 1W 2486 2360 2310 2108 2108 1864 2115 1617 1698 1418 1481 1479 1316 1394 1335 1325 IU1 1157 Mdopcapnai OtfKfRMMS ftafiutauiimd 735 697 658 619 533 339 333 338 313 239 1318 1164 not 1003 854 6U 338 315 495 398 400 364 278 206 197 367 496 466 442 410 CSR shartfioiden* tods (espial and reserves) 2533 352 225 335 2044 64 1828 36 1384 33 1354 64 1407 72 1319 75 1232 73 1067 90 Total CSR sfcarebofdero' fends (carnal and reserveti 315 2360 2108 1864 1617 1418 1479 1394 1325 1137 Share informstioo Shan issues rf|lui private placements Shares issued fmiUfon) for cash acquimions Paid up canal m$AI sham at 31 March <SA million) EaramfspershatoKcasi osittaeatjl March adjusted for issues* Dividends pothartfcsasi Shari pnesa^uswdfor issues* (SA) fetty-paid shares sdjcsatd forissues* high low cad Net ottgibk assets tboofcealueXSA) per CSR share4 adjusted for issues* Ratio* and statistic* It Retans <5> on CSR shareholders' funds at 31 March i total assets at 31 March poop revenue * Payout ratio t%) Interest cover* (tuncst Gearing* (5) 5 Current ratio General < Gnopcapnat mxttaca ISA millioni i Group divestments <SA mtUiont Shareholders(thousand) i Ewptoywitftousacdl ! Wages, sauries and oaymems to retiicmtnt fond* ISA millioni Trading revenue pet employe* (SA thousandI Profit aftertax peremployeutSA thousand) Value added oertmohivee SA thousand) - - 34 13 -- 735 55.04 544 697 44.0 44.4 404 310 404 310 5.71 - 5.06 340 3.60 544 4.00 245* 354 188 163 14.1 44 14 72 54 324 143 134 6.1 6.9 72 8.0 IS.9 1.04 1508 272 (05 214 754 202 U4 79 1338 918 99 ISJ 565 <88 164 74 10 30 658 28.4 284 204 204 4.90 160 3.75 196 181 9.1 4' 4.7 62 43 27.9 147 iMia 99 118 619 244 25.6 194 194 4.40 243 442 3.19 341 * 84 3.8 64 68 34 35.1 149 1176 1138 102 16.1 480 166 114 66 336 197 102 13.4 411 155 114 68 I4w-J m 129 44 533 234 254 184 174 3.77 161 347 343 346 7.9 34 4.2 72 3.9 564 0.95 226 695 101 134 428 164 94 62 - 6 - 359 23.7 234 184 174 340 143 136 4.13 345 6.8 34 4.2 70 34 28.3 0.9b 201 tl 102 144 418 145 6.4 57 - PP 13 - 333 264 244 184 16.4 443 141 3.48 4.19 349 64 3.1 43 69 J.4 2*4 1.13 247 126 97 t45 406 iSs 6J $4 PP 23 5 338 211 214 184 164 342 123 143 4.08 342 I4w* _ 30 I 315 26.6 274 184 16.1 6J3 147 175 4.26 3.68 5.7 17 3.7 81 16 a.9 747 6.6 3.1 4.7 57 35 25.1 1.14 230 116 97 14.9 413 IIS 54 32 345 M9 89 164 378 100 3.1 41 14w-S _ 43 4 239 43J 384 184 13.7 6.96 403 5.97 451 3.74 105 49 6.1 a; i.j :so 153 226 Iv9 78 16.1 313 103 74 39 4 1--...... - --................. r mmin.--t*r~Ti if .............. * fw>(TW 4 KMj VH<* ' -me C<w-- ><rhpp^ y^ * gt/***x* *<miui. ^otcrff> *Wf> ' *->*> *'>* to- nfm ty -. .raMrwtf^v -* I