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Amalgamated Holdings Limited a

AmAlgAmAted holdings limitedAbn 51 000 005 103

Annual Report 2009

b

Entertainment Hospitality Leisure

Amalgamated Holdings Limited 1

ContentsChairman’s review 3organisational struCture 5loCations 6managing DireCtor’s review of operations by Division 10Corporate governanCe 15finanCial report — Contents 28DireCtors’ report 29leaD auDitor’s inDepenDenCe DeClaration 45finanCial statements 46notes to the finanCial statements 50DireCtors’ DeClaration 108inDepenDent auDitor’s report 109shareholDer information 110other information 112

inment lity

2

total DiviDenD for the year

is 32 Cents per share.

this eQuates to an inCrease of 7% over the prior year’s DiviDenD anD is the eighth ConseCutive year of inCreaseD DiviDenD.

2


Chairman’s Review

I am pleased to present to you this overview of the operations of Amalgamated Holdings Limited and its controlled entities (“Group”) for the year ended 30 June 2009. For a detailed account of the activities of the Group and a review of the performance for the year, I commend to you the Managing Director’s Review of Operations by Division contained within this Annual Report.

ResultsThe Group’s normalised net profit, being profit before discontinued operations and individually significant items, was $71.0 million compared to $54.1 million in the previous year, an increase of 31%. The increase in normalised net profit was mostly attributable to the entertainment segment, with an uplift in profit from both the domestic and international businesses.

The total net profit was $69.5 million compared to $99.4 million in the previous year, a decrease of 30%. The prior year’s net profit benefited from individually significant items totalling $42.7 million, including the profit on the sale of the Group’s previously equity accounted interest in Roadshow Distributors Pty Limited, which was sold to Village Roadshow Limited in August 2007.

The Board continues to carefully monitor domestic and international economic environments and, whilst the ongoing uncertainty within the global economy has cause for concern, there is considerable comfort in acknowledging that the Group has been able to achieve what can only be described as an outstanding result.

PropertyAs mentioned in previous years, the Group’s property portfolio is a significant asset component of the Group. The Group aims to maximise the available returns from the existing property portfolio both through enhanced management and, where appropriate, development.

During the year, the Group added two properties to the Group’s portfolio. The Gold Coast International Hotel, a 296 room hotel located in Surfers Paradise, was acquired for the purchase price of $56.5 million in September 2008 and the Rydges Sabaya

Resort in Port Douglas, which comprises 104 apartments and associated resort facilities, was acquired for the purchase price of $20.6 million in June 2009. These acquisitions reflect the Group’s policy to build the existing property portfolio when suitable opportunities arise.

The Group also continues to explore avenues to unlock the capital potential of certain Group sites. Construction is nearing completion on a seven level commercial office development at the former cinema site in Canberra and the Bass Hill Drive-In site is being sub-divided for residential purposes. Thredbo, the Gowings and State Theatre building sites and selected redundant cinema sites are subject to ongoing assessment to identify appropriate development potential.

Corporate Governance and Board of DirectorsThe Board is aware of the important role that it must undertake in maintaining and upholding corporate governance standards. The Board will, as has always been the case, endeavour to achieve the highest levels of accountability and transparency in all aspects of its reporting. The 2009 Corporate Governance Statement included within this Annual Report has been expanded to clearly set out the extent to which the Group complies with the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations.

Recently, there have been two changes to the composition of the Board.

Ms Meredith Hellicar, who had been a Board member since 2003, resigned on 23 April 2009. Mr Peter Coates AO was appointed to the Board on 10 July 2009. Mr Coates’ appointment was recommended to the Board by the Nomination and Remuneration Committee, and his breadth of experience, background and skills complement those of the Board.

Dividends and Capital ManagementThe continuing strength of the earnings capacity of the Group has enabled the Board to recognise shareholders with an increase in the dividend declared for the year. Directors have declared a final dividend of 21 cents per share which, in addition to the 11 cents per

share dividend that was paid on 19 March 2009, brings the total dividend paid for the year to 32 cents per share. This equates to an increase of 7% over the previous year’s dividend of 30 cents and is the eighth consecutive year of increased total dividend.

In declaring the dividend, the directors continue to be mindful of the current trading environment in which the Group is operating, together with its ongoing cash requirements. The directors are continuing to abide by a dividend policy that will not only address the short term needs of shareholders and the Group, but hopefully be at a level to provide longer term continuity of earnings for both the Group and shareholders.

Capital management has always been, and remains, an important issue for the Board. Capital management initiatives are periodically assessed and have been incorporated into the Group’s annual strategic planning review. All capital management initiatives applicable to the Group are assessed in the context of relevant factors such as the Group’s longer term strategic plans as well as external conditions, including the capital market environment and debt and equity markets.

The FutureThe Board believes the Group is in a strong position at the commencement of the new financial year.

Whilst the market segments in which the various businesses operate will, from time to time, undergo changes, the businesses comprising the Group are robust and, notwithstanding variable operating conditions and external factors, we can assure shareholders that management will continue to pursue opportunities that will allow long term earnings growth for the Group.

Alan G Rydge Chairman

Amalgamated Holdings Limited

4

Struc


Organisational

Entertainment

eventgreater unionbirCh Carroll & Coyle Collectively one of australia’s leading cinema exhibitors, with cinemas in every mainland capital and the dominant exhibitor in Queensland and the northern territory.

international Cinemasoperates under the Cinestar brand with extensive cinema exhibition interests in germany and the middle east.

state theatrea 2,000 seat theatre, including function facilities, located in the heart of the sydney CbD.

Entertainment Technology

eDge Digital teChnologysupply and installation of cinema audio and visual equipment.

filmlab engineeringmanufacture and supply of film processing equipment.

CinesounD movietone proDuCtionsa joint venture with fox, providing custody and maintenance of archival newsreel and film footage.

Property and Other Investmentsextensive property holdings and available-for-sale investments. property holdings include cinema, hotel and long-term commercial and retail property investments.

Hospitality & Leisure

ryDges hotels & resortsowner and operator of hotels and resorts in australia, new Zealand, the united arab emirates and the united Kingdom.

threDbo alpine resortaustralia’s premier alpine resort destination offering a unique summer and winter experience. the activities include the operation of the ski resort, property development and management and accommodation management.

featherDale wilDlife parKlocated in western sydney and is home to australia’s largest collection of native fauna.


ture

6

ENTERTAINMENTwww.eventcinemas.com.auwww.greaterunion.com.auwww.birch.com.au

eventnswBondi Junction, SydneyCampbelltown, SydneyMEGAPLEX Castle Hill, SydneyMEGAPLEX Macquarie, SydneyParramatta, SydneyGeorge Street Cinemas, Sydney

saMEGAPLEX Marion, Adelaide

waMEGAPLEX Innaloo, Perth

QlDMEGAPLEX Chermside, BrisbaneMEGAPLEX Indooroopilly, BrisbaneRobina, Gold Coast

greater unionaCtManuka, Canberra

nswBurwood, SydneyGlendale, NewcastleHornsby, Sydney

Hurstville, SydneyLiverpool, SydneyMiranda, SydneyMosman, SydneyNewcastleShellharbourTuggerah, Central CoastWollongongBlacktown Drive-In, Sydney

saArndale, Adelaide

viCMelbourne City

waMorley, Perth

birCh Carroll & Coylensw Coffs HarbourLismore

ntCasuarinaDarwin City

QlDAustralia Fair, Gold CoastBrisbane City Regent Centre, BrisbaneBrisbane City Myer Centre, BrisbaneBrowns Plains, BrisbaneCairns Central

Cairns CityCapalaba, BrisbaneCarindale, BrisbaneCoolangatta, Gold CoastEarlville, CairnsMEGAPLEX Garden City, BrisbaneGrand Central, ToowoombaIpswich CityMackay CityMt Pleasant, MackayMaroochydore, Sunshine Coast Morayfield, BrisbanePacific Fair, Gold CoastNorth RockhamptonStrathpine, BrisbaneThe Strand, ToowoombaTownsville City

CinestarGermanyUnited Arab Emirates

www.cinestarcinemas.comwww.cinestar.de

state theatreSydney, NSW

www.statetheatre.com.au

Locat


ionsENTERTAINMENTTECHNOLOGYeDge Digital teChnologySydney, NSWMelbourne, VICAdelaide, SABrisbane, QLDPerth, WAAuckland, NZ

www.edgedigitaltechnology.com.au

filmlabSydney, NSW

www.filmlab.com.au

HOSPITALITY & LEISUREryDges hotels & resortswww.rydges.comRydges Central ReservationsToll Free 1300 857 922

australiaRydges South Park, AdelaideRydges South Bank, BrisbaneRydges Tradewinds, CairnsRydges Esplanade Resort, CairnsRydges Plaza, Cairns

Rydges Oasis Resort, CaloundraRydges Capital Hill, CanberraRydges Lakeside, CanberraRydges Eagle Hawk Resort, CanberraRydges HobartRydges MelbourneRydges North MelbourneRydges Bell City, Preston, MelbourneRydges on Swanston, MelbourneRydges Brighton Beach, MelbourneRydges KalgoorlieRydges PerthRydges GladstoneRydges Sabaya Resort, Port DouglasRydges Southbank TownsvilleRydges Bankstown, SydneyRydges Campbelltown, SydneyRydges Camperdown, SydneyRydges Cronulla, SydneyRydges North SydneyRydges Parramatta, SydneyRydges World Square, SydneyRydges Port MacquarieRydges WollongongGold Coast International Resort,

Surfers Paradise Capricorn International Resort, YeppoonCapitol Square Hotel, Sydney

fiJiRydges Hideaway Resort Fiji

new ZealanDRydges AucklandRydges ChristchurchRydges Lakeland Resort, QueenstownRydges Rotorua

uniteD arab emiratesRydges Plaza Dubai

uniteD KingDomRydges Kensington Plaza, London

threDbo alpine resortThredbo, NSW

www.thredbo.com.au

featherDale wilDlife parKDoonside, NSW

www.featherdale.com.au

ahl Corporate49 Market StreetSydney NSW 2000Phone (02) 9373 6600

www.ahl.com.au

8

normaliseD net profit was $70,968,000 (2008: $54,054,000) an inCrease of $16,914,000 or 31.3% above the prior year result.

8

10

Managing Director’s Review of Operations by Division

Domestic Exhibition enjoyed a particularly strong year with Box Office up over the prior year by 11.7%. This result was driven by the strong performance of The Dark Knight which achieved in excess of $45 million at the Australian Box Office. Other major contributors were Australia, Mamma Mia! and Quantum of Solace all achieving in excess of $30 million and Madagascar: Escape 2 Africa, Twilight, Hancock and Monsters v’s Aliens all over $20 million.

During the year, the Group expanded its 3D digital footprint significantly so as to capitalise on the increasing number of titles released in 3D. Over the 12 month period, 46 additional 3D projectors were installed over the circuit taking the total amount of projectors to 53. This is the largest deployment of any exhibitor within Australia.

Merchandising revenue continued to grow with a 5.6% improvement in revenue per admission over the prior year. This growth was driven by a number of successful Candy Bar Combo promotions and the ongoing success of the Gold Class concept. The increased Box Office and merchandising revenue resulted in the Domestic Exhibition earnings for the period increasing over the prior year by $8,690,000 or 25.3%.

In May, the Group launched a new cinema brand, Event Cinemas. Event Cinemas is a new concept and features the premium cinema offering of Gold Class and/or Vmax and enhanced food and beverage facilities, including Scoop Self Serve Candy Bar and Set Café/Bar. The entertainment offered will be expanded through digital to include live concerts and sporting events.

During the year, the Group also successfully launched its cinema loyalty program, Cinebuzz. Key benefits to members include rewards for frequency, invitations to special advance screenings and discounted ticket offers. Over 500,000 customers had joined the program by 30 June 2009.

A strong focus on corporate sales as well as the continued broadening of retail sales channels for gift cards products resulted in a 13.3% increase in the sales of these products. In addition the convenience of purchasing tickets online resulted in a further increase in the number of customers using this channel, increasing by 27.3% on the prior year.

During the year, the Group opened a new 11 screen cinema at the Robina Town Centre on Queensland’s Gold Coast, replacing an existing six screen complex. This development is an Event Cinema and includes one Vmax

ENTERTAINMENT

Cinema exhibition DomestiCas at 30 June 2009 2008 movementCinema locations* 53 54 (1)Cinema screens* 460 461 (1)* Owned, joint venture and managed cinema sites.


screen and three Gold Class screens. The Group also converted six screens at the Castle Hill complex in Sydney’s North West to 5 Gold Class screens. In addition the Group closed the five screen cinema at Hindley Street in Adelaide. The Group has retained ownership of this site and it has been leased to a commercial tenant.

The contribution for the Group’s 50% interest in the Village managed circuit in Victoria increased by 54.0% over the prior year. This significant improvement was largely due to the strong movie line-up, the successful opening of a new nine screen cinema at Doncaster in October 2008 and the closure of the loss-making site at Waverley Gardens in the later part of the prior year.

germanyThe Group’s cinema exhibition operations in Germany was the stand-out performer within the Group, showing an increased profit before tax and interest of $11,659,000. Box Office revenue increased over the prior year by 10.3%, with the top performing films for the year being Madagascar: Escape 2 Africa, Angels & Demons, Quantum of Solace, Mamma Mia!, Hancock and The Dark Knight. These films were well supported by a number of German productions including Der Baader Meinhof Komplex, Krabat, Mannersache and 1½ Ritter. The Reader, a joint US and German production, also performed strongly within the German market.

Merchandising revenue per admission increased by 3.7% over the prior year. The increase in revenue along with further reductions in the level of operating costs contributed to the overall improved result.

During the period, four non-profitable sites were closed. However, several significant loss-making sites remain under review, particularly sites at Augsburg and Chemnitz.

3D capability was initially rolled out to 10 sites with a further 26 sites earmarked for 3D capability in the near future.

the miDDle eastThe Middle East cinema business continued to show growth and traded very strongly during the year. Box office was ahead of the prior year period by 14.7%. Merchandising revenue also grew, to be up by 17.6% over the prior year.

The weakening of the Australian dollar against both the Euro and Dirham also contributed to an increased contribution from the International Cinema operations, particularly from October 2008 through to March 2009.

Cinema exhibition internationalas at 30 June 2009 2008 movementCinema locations* 70 74 (4)Cinema screens* 544 559 (15)* Owned, joint venture and managed cinema sites

12

Review of Operations by Division continued

The profit before tax, interest and individually significant items for the Hotels and Resort business was $24,530,000 representing a decline over the prior year of 20.5%.

Occupancy in the Group’s owned hotels was 73.3%, down 1.4 percentage points over the prior year. There was only a marginal decline in average rate, resulting in a revenue per available room rate of $101.95, down 2.9% on the prior year. This result reflects an increased market share and was relatively pleasing considering the challenging trading environment.

Operating costs were reasonably well controlled; however, the result was impacted by one-off restructuring costs associated with the integration of a new owned hotel and redundancy and staff reallocation expenses.

With the global financial crisis negatively impacting demand, the focus was on cost control and growing market share via increased levels of promotional activity.

This resulted in improved staff productivity and significant volume growth from the leisure market. However, the growth in leisure travel was not at a pace sufficient to offset declines in the corporate, conference and inbound segments.

Despite soft demand across the board, results held up well in Canberra, Perth, Brisbane, Townsville, Gladstone and Christchurch. Conversely, trading conditions were difficult in Tropical North Queensland and Sydney.

The Rydges PriorityGUEST program has grown into a significant contributor to the Group’s revenues. Rooms booked through the program exceeded 245,000, an increase of some 50% over the prior year.

Bookings from Rydges.com grew by 156,300 to 254,045 and accounted for 16.6% of total rooms sold during the year. Rooms booked online now account for 28% of total rooms sold.

The Group acquired the Gold Coast International Hotel in October 2008. Three new managed hotels, Rydges Hideaway Resort Fiji, Rydges Brighton and Rydges Kalgoorlie

also joined the group. A 380 room extension and major expansion of conference space were completed at Rydges Bell City, and an 80 room extension and a new ball room are currently under construction at Rydges Auckland.

A review of the carrying value of owned hotel properties as at 30 June 2009, resulted in impairment write-downs totalling $3,028,000 in respect of two hotel properties. The impairment write-downs have been disclosed as individually significant items for the year ended 30 June 2009.

KosCiusZKo threDboWith the completion of stage 4 of the enhancement and automation of Thredbo’s snowmaking system, it now offers a great and much improved product with ski slopes of all skier levels from beginners, intermediate and advance terrain now being covered by snowmaking. Thredbo achieved approximately 392,500 skier days, which was the best result in the last five years and the third best ever recorded.

ryDges hotels anD resortsas at 30 June 2009 2008 movementLocations* 39 37 2Rooms* 6,761 6,406 355* Owned and managed hotels.

HOSPITALITY AND LEISURE


The favourable skiing conditions particularly in July and August 2008 helped Thredbo achieve a record financial result. Other positive earnings initiatives included the maximisation of yield-per-skier, increased marketing of the shoulder periods and effective management of operating costs.

The start of winter 2009 has been above average.

Future development will focus on the adoption and staged implementation of a 20 year master plan for the Resort.

leisure anD attraCtions Featherdale’s earnings were slightly ahead of the prior year notwithstanding the continued weakness in the inbound tourist market. The weakness in the inbound market was offset by strong domestic market admissions, which were boosted by the World Youth Day period.

The State Theatre experienced significantly improved trading conditions compared to the prior year, driven by the increased number of performances held at the theatre over this period.

atlabThe Group sold its 50% interest in the Atlab group in September 2008. The consideration for the sale was $1,500,000, which was equivalent to the Group’s carrying value and, as a result, there was no profit or loss on sale.

otherThe Atlab sale did not include the wholly-owned businesses of Edge Digital Technology (previously known as Atlab Image and Sound Technology) nor the Filmlab business.

Edge Digital Technology improved revenues from installation projects; however, the result was negatively impacted by reduced margins and a stock obsolescence write-off. Filmlab produced a satisfactory result but was impacted by a $566,000 inventory write-down.

propertyRental income from the Group’s property portfolio was generally in line with the prior year. Included in the result for this segment is a fair value decrement of $1,030,000 relating to the revaluation of investment properties. This compares to the prior year fair value decrement of $1,400,000 and reflects continued softening in the valuation of commercial property assets.

An impairment write-down of $2,312,000 was recognised in the financial year for a retail property owned by the Group. The impairment write-down has been disclosed as individually significant item for the year ended 30 June 2009.

Construction is expected to be completed in November 2009 on a seven level commercial office development at the former cinema site at Mort Street, Canberra Civic. A pre-commitment leasing agreement for the entire building has been entered into. Sales and marketing of the residential sub-division of the Bass Hill Drive-In site has commenced.

David C Seargeant Managing Director

Amalgamated Holdings Limited

ENTERTAINMENT TECHNOLOGY

STRATEGIC INVESTMENTS


Corporate Governance

this 2009 Corporate

governanCe statement

sets out the Key Corporate

governanCe prinCiples

aDopteD by the DireCtors

1. INTRODUCTIONThis 2009 Corporate Governance Statement (“Statement”) sets out the key corporate governance principles adopted by the directors in governing Amalgamated Holdings Limited (“Company”) and its subsidiaries (collectively referred to as “AHL” or “Group”) and reflects the corporate governance policies and procedures which applied during the financial year ended 30 June 2009.

The Company continues to monitor and review its corporate governance policies and procedures.

2. APPROACH TO CORPORATE GOVERNANCE2.1 frameworK anD approaCh to Corporate governanCe anD responsibilityThe Board has the responsibility for ensuring AHL is properly managed so as to protect and enhance shareholders’ interests in a manner that is consistent with AHL’s responsibility to meet its obligations to all stakeholders. For this reason, the Board is committed to maintaining the highest standards of corporate governance across the Group. The Board believes that corporate governance is about having a set of values and behaviours that underpin AHL’s everyday activities and which ensures transparency, risk management, accountability, value creation, fair dealing and protection of the interests of stakeholders. Consistent with this belief, the Board’s approach is to consider corporate governance within the broader framework of corporate responsibility and regulatory oversight.

2.2 ComplianCe with the Corporate governanCe prinCiples anD reCommenDationsThe Australian Securities Exchange (“ASX”) has issued the ASX Listing Rules which require listed companies to include in their annual report a statement disclosing the extent to which they have followed the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations (“Recommendations”) in the reporting period. Listed companies must identify the Recommendations that have not been followed and provide reasons for the company’s decision. A table outlining the compliance, or otherwise, to the

Recommendations has been included in section 10 of this Statement.

The corporate governance page of the Company’s website (www.ahl.com.au) contains most of the documents which are referred to in this Statement. The Statement, charters, code and various policies are regularly reviewed to take account of any recent changes in the law and governance practices.

If a shareholder does not have access to the internet, they may contact the Company Secretary for copies of the document.

3. BOARD3.1 role anD responsibilities of the boarDThe Board recognises its overriding responsibility to act honestly, fairly, diligently and in accordance with the law in serving the interests of the Company’s shareholders, as well as its employees, customers and the community. Its primary responsibilities are:

• providinginputinto,reviewingandapproving the corporate and divisional strategic plans;

• makingdecisionsinrelationtomattersofasensitive, extraordinary or strategic nature;

• providingadviceandcounseltomanagement on a periodic and ad hoc basis;

• ensuringbestpracticecorporategovernance;

• appointingandwhereappropriateremoving the Managing Director and approving succession plans;

• ratifyingtheappointmentand,whereappropriate the termination, of the direct reports to the Managing Director;

• monitoringtheperformanceofthe Managing Director and senior management and approving remuneration policies and practices for such Managing Director and senior management;

• enhancingandprotectingthereputationof the Group;

• reportingtoshareholders;

• ensuringappropriatecomplianceframeworks and controls are in place and are operating effectively;

• approvingandmonitoringtheeffectivenessof and compliance with policies governing the operations of the Group;

16

Corporate Governance continued

• monitoringcompliancewithregulatoryrequirements and ethical standards;

• monitoringtheintegrityofinternalcontroland reporting systems;

• monitoringstrategicriskmanagementsystems, including review of processes for identifying areas of significant business risk, including those associated with legal compliance obligations, monitoring risk management policies and procedures, oversight of internal controls and review of major assumptions used in the calculation of significant risk exposure;

• reviewingandapprovingbusinessplans,the annual budget and financial plans, including available resources and major capital expenditure initiatives;

• monitoringandassessingmanagement’sperformance in achieving any strategies and budgets approved by the Board;

• approvingdecisionsconcerningthe capital of the Company, including capital restructures;

• reviewingandapprovingannualandhalf yearly statutory accounts and other reporting and monitoring financial results on an ongoing basis; and

• determiningdividendpolicyand declaring dividends.

The Board operates in accordance with the principles set out in the Board Charter. The Board Charter details the Board’s purpose, role, responsibilities and functions. A copy of the Board’s Charter is available from the Company’s website or upon request from the Company Secretary.

The Board has delegated responsibility for operation and administration of the Company and Group to the Managing Director and executive management. Responsibilities are delineated by formal authority delegations. Senior executives reporting to the Managing Director have their roles and responsibilities defined in position descriptions.

3.2 boarD proCessesTo assist in the execution of its responsibilities, the Board has in place an Audit Committee and a Nomination and Remuneration Committee. These Committees have charters which are reviewed on a regular basis. Other Board Committees may be appointed from

time-to-time to deal with issues associated with the conduct of the Group’s various activities.

Recommendation 2.4 of the Recommendations states that the Board should establish a nomination committee. The Board has determined that any recommendations required by a nomination committee are undertaken, as required, by the Nomination and Remuneration Committee.

The full Board holds at least 10 scheduled meetings each year, including strategy meetings. Unscheduled meetings are arranged as necessary to address any specific significant matters that may arise. Site visits are arranged on a regular basis to improve directors’ understanding of the Group’s locations and operations.

The agenda for meetings is prepared in conjunction with the Chairman, Managing Director and Company Secretary. Standing items include the Managing Director’s report, financial reports, strategic matters, governance and compliance. Submissions are circulated in advance. Executives are regularly involved in Board discussions and directors have other opportunities, including visits to business operations, for contact with a wider group of employees.

3.3 Composition of the boarDThe composition of the Board is determined using the following principles:

• theBoardshouldcompriseofamajority of non-executive independent directors;

• theBoardshouldcompriseofdirectorswitha broad range of relevant expertise; and

• thesameindividualshouldnotexercisetherole of Chairman and Managing Director.

The Chairman of the Board is a non-executive director. There is a Managing Director, who is also the Chief Executive Officer. It is standard practice to have six non-executive directors, the majority of whom are deemed to be independent under the principles set out below. The composition of the Board is reviewed periodically by the Chairman and the other directors to ensure that the Board has an appropriate mix of expertise and experience. When a vacancy exists, through whatever cause, or where it is considered that the Board would benefit from the services of a new director with particular skills, the Nomination

and Remuneration Committee identifies suitable candidates with the appropriate expertise and experience and makes a recommendation to the Board. The Board then appoints the most suitable candidate who must then stand for election at the next general meeting of shareholders. Non-executive directors must stand for re-election each three years. The terms and conditions of the appointment and the retirement of directors, including the Managing Director, are first considered by the Nomination and Remuneration Committee and then recommended for determination by the Board.

A formal letter of appointment is provided to all incoming non-executive directors.

The Board considers that individually and collectively the directors bring a level of skill, knowledge and experience that enables the Board to discharge its responsibilities effectively. Further information on the skills, experience and expertise of the directors has been included in section 9.1 of this Statement.

Details of the number of Board meetings and the attendance of the directors have been included in section 9.2 of this Statement.

3.4 DireCtors’ inDepenDenCeThe Board has considered specific principles in relation to a director’s independence. The Board has determined that an independent director is a director who is not a member of management (a non-executive director) and who:

• isnotasubstantialshareholderoftheCompany or does not have a material beneficial interest in a substantial shareholder of the Company;

• hasnotwithinthelastthreeyearsbeenemployed in an executive capacity by the Company or Group, or been a director after ceasing to hold any such employment;

• withinthelastthreeyearshasnotbeena principal or employee of a material professional advisor or a material consultant to the Company or Group;

• isnotamaterialsupplierorcustomerofthe Company or Group, or an officer of or otherwise associated, directly or indirectly, with a material supplier or customer;

• musthavenomaterialcontractualrelationship with the Company or Group other than as a director of the Company; and


• isfreefromanyinterestandanybusinessorotherrelationshipwhichcould,orcouldreasonablybeperceivedto,materiallyinterferewiththedirector’sabilitytoactinthebestinterestsoftheCompany.

Informingthisview,theBoardhasconsideredanddeterminedthat“material”,inthiscontext,tobewhereanydirectorrelatedbusinessrelationshiphasrepresented,orislikelyinthefuturetorepresent,thelesserofatleast10%oftherelevantsegment’sorthedirectorrelatedbusiness’srevenue.TheBoardconsideredthenatureoftherelevantindustries’competition,andsizeandnatureofeachdirectorrelatedbusinessrelationship,inarrivingatthisthreshold.

TwodirectorsoftheCompanyarealsodirectorsofCarltonInvestmentsLimited(“Carlton”),whichisasubstantialshareholderoftheCompany.Carltonisapubliclylistedcompany.Carlton’smainactivityistheholdingofawideportfoliooflistedinvestments.TheBoardhasconsideredthequestionofindependenceofthedirectorofCarltonwhodoesnothaveasubstantialbeneficialshareholdinginhisownright.TheBoardhasconcludedthat,asthenatureofCarlton’sbusinessisinnowaysimilartothatofthebusinessesoftheGroup,thesoleholdingofadirectorshipinCarltonshouldnotimpactontheabilityandwillingnessofadirectortoeffectivelyreviewandchallengetheperformanceofmanagementandexerciseindependentandobjectivejudgementforthebenefitofallshareholdersoftheCompany.

3.5 Chairman and managing direCtorTheChairmanisresponsibleforleadingtheBoard,ensuringthatBoardactivitiesareorganisedandeffectivelyconductedandforensuringdirectorsareproperlybriefedformeetings.TheManagingDirectorisresponsibleforimplementingGroupstrategiesandpolicies.

Recommendation2.2oftheRecommendationsstatesthattheChairmanshouldbeanindependentdirector.TheChairman,MrAGRydge,isnotconsideredanindependentdirectorduetothesubstantialshareholdingclause.MrRydgewaspreviouslyChairmanandManagingDirectoroftheCompanyuntilretiringfromthepositionofManagingDirectoron31December2001.TheBoardhasdeterminedthatthechairmanshipofMrRydgeisofsignificantbenefittotheCompanyandthe

Groupduetohislongstandingcontributionto,andassociationwith,theCompanyandextensiveknowledgeofthefilm,hospitality,leisureandtourismindustries.MrRydgehasbeenanon-executiveChairmansince1January2002.

3.6 ConfliCt of interestInaccordancewiththeCorporationsAct2001andtheCompany’sConstitution,directorsgivestandingnoticeonappointmentofanyinterestthatcouldpotentiallyconflictwiththatoftheCompanyorGroupandmustkeeptheBoardadvisedofanychanges.WheretheBoardbelievesasignificantconflictofinterestexists,thedirectorconcerneddoesnotreceivetherelevantBoardpapersandisnotpresentatthemeetingwhilsttheitemisconsidered.

3.7 direCtor eduCationTheCompanyhasaprocesstoeducatenewdirectorsaboutthenatureofthebusiness,currentissues,corporatestrategyandtheCompany’sexpectationsofdirectors.Alldirectorsaremadeawareoftheirrightstoaccessemployees,informationandresources.DirectorsareencouragedtovisitfacilitiesoftheGroupandmeetwithmanagementtogainabetterunderstandingofbusinessoperations.

3.8 independent professional adviCeEachdirectorhastherightofaccesstoallrelevantCompanyinformationandtotheGroup’sexecutivesand,subjecttopriorconsultationwiththeChairman,mayseekindependentprofessionaladvicefromasuitablyqualifiedadvisorattheGroup’sexpense.Thedirectormustconsultwithanadvisorsuitablyqualifiedintherelevantfield,andobtaintheChairman’sapprovalofthefeepayablefortheadvicebeforeproceedingwiththeconsultation.AcopyoftheadvicereceivedbythedirectorismadeavailabletoallothermembersoftheBoard.

3.9 direCtors’ retirement planTheDirectors’RetirementPlan(the“Plan”)wassuspendedinMay2003anddirectorsappointedtotheBoardafterthatdatearenotentitledtoparticipateinthePlan.

EligibledirectorsinofficepriortothesuspensionofthePlaninMay2003areabletoparticipateinthePlan.SubjecttotheCorporationsAct2001,thoseeligibledirectorswithmorethanthreeyearsservicereceivearetirementlumpsumbasedonthelengthof

serviceandtheaverageofthefeespaid.Thebenefitiscappedatamaximumlumpsumpereligibledirectorof$165,000.

TheChairmanandManagingDirectorarenoteligibletoparticipateinthePlan.

Thetotalaccruedretirementbenefitsfornon-executivedirectorsotherthansuperannuation,andfurtherdetailsondirectors’remuneration,aredisclosedwithintheRemunerationReport.

4. AUDIT COMMITTEE4.1 role and responsibilities of the audit CommitteeTheAuditCommitteeChartersetsoutitsrolesandresponsibilities.Itsprimaryresponsibilitiesareto:

• reviewandmonitorthefinancialintegrityoftheGroup’sfinancialreportsandstatements;

• reviewtheadequacyandintegrityoftheGroup’sriskmanagementframeworkandsystemofinternalcontrolandthemonitoringofthevariouscontrolprocesses;

• ensurecompliancewithrelevantlaws,regulationsandstatutoryobligations;

• reviewandapprovetheinternalandexternalauditworkplans;and

• reviewsignificantaccountingchangesorreportingissues.

TheCommitteereviewstheperformanceoftheexternalauditorsonanannualbasisandmeetswiththemduringtheyeartodiscussanumberofmattersincludingtheexternalauditplan,proposedfeesforauditworktobeperformed,halfyearandannualreportingandothermattersasnecessary.TheAuditCommittee,inscheduledsessionsattheendofeachmeeting,withoutthepresenceofmanagement,addressesquestionstotheexternalauditorsandGroupInternalAuditManageronmattersrelatingtotheCommittee’sresponsibilities.

TheCommitteeisresponsibleformakingrecommendationstotheBoardconcerningtheappointmentoftheexternalauditorincludingremunerationandothertermsoftheauditor’sengagement.TheCommitteereviewsandensuresthatthelevelofanynon-auditworkcarriedoutbytheexternalauditoriscompatiblewithmaintainingauditindependence,takingintoaccounttheguidelineswhichithasset.Thecurrent

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practice,subjecttoamendmentintheeventoflegislativechange,isfortherotationoftheengagementpartnertooccureveryfiveyears,withthemostrecentrotationhavingtakenplaceinAugust2006.

TheBoardreceivestheminutesandregularupdatesfromthechairmanoftheCommittee,andreviewsandapprovesthecharteroftheCommittee.AcopyoftheAuditCommitteeCharterisavailablefromtheCompany’swebsiteoruponrequestfromtheCompanySecretary.

4.2 Composition of the audit CommitteeTheAuditCommitteeconsistsofaminimumofthreenon-executivedirectors,themajorityofwhomareindependent,andischairedbyanindependentdirectorwhoisnottheChairmanoftheBoard.AllCommitteemembersarefamiliarwithfinanceandaccountingprocedures.

ThemembersoftheAuditCommitteeduringtheyearwere:

• AJClark(Chairman)—independentnon-executivedirector;

• RMGraham—independentnon-executivedirector;and

• AGRydge—non-executivedirector.

OtherdirectorswhoarenotmembersoftheCommitteeareinvitedtoattendmeetings.TheManagingDirector,DirectorFinance&Accounting,CompanySecretary,GroupInternalAuditManagerandexternalauditorsareinvitedtoattendCommitteemeetings.OtherexecutivesmaybeinvitedtoCommitteemeetingsatthediscretionoftheCommittee.

TheAuditCommitteemeetsatleastfourtimesperyear.DetailsofthenumberofCommitteemeetingsandtheattendanceoftheCommitteemembershavebeenincludedinsection9.2ofthisStatement.

5. NOMINATION AND REMUNERATION COMMITTEE5.1 role and responsibilities of the nomination and remuneration CommitteeTheNominationandRemunerationCommitteeChartersetsoutitsrolesandresponsibilities.ItsprimaryresponsibilitiesaretoadvisetheBoardonmattersincluding:

• thecomposition,remunerationandperformanceevaluationoftheBoard;

• theappointmentoftheManagingDirector;

• successionplansforthepositionofManagingDirector;and

• theremunerationstrategyfortheManagingDirectorandotherseniorexecutives.

TheCommitteealsoactsasanominationcommitteeandreviewstheneedforappointmentofnewdirectorsforrecommendationtotheBoardandshareholdersforapproval.

TheBoardreceivestheminutesandregularupdatesfromthechairmanoftheCommittee,andreviewsandapprovesthecharteroftheCommittee.AcopyoftheNominationandRemunerationCommitteeCharterisavailablefromtheCompany’swebsiteoruponrequestfromtheCompanySecretary.

5.2 Composition of the nomination and remuneration CommitteeTheNominationandRemunerationCommitteeconsistsofaminimumofthreenon-executivedirectors,themajorityofwhomareindependent,andischairedbyanindependentdirectorwhoisnottheChairmanoftheBoard.

ThemembersoftheNominationandRemunerationCommitteeduringtheyearwere:

• AJClark(Chairman)—independentnon-executivedirector;

• RMGraham—independentnon-executivedirector;and

• AGRydge—non-executivedirector.

OtherdirectorswhoarenotmembersoftheCommitteeareinvitedtoattendmeetings.TheManagingDirectorandCompanySecretaryareinvitedtoattendCommitteemeetings.OtherexecutivesmaybeinvitedtoCommitteemeetingsatthediscretionoftheCommittee.

TheNominationandRemunerationCommitteemeetsatleasttwotimesperyearandfurtherasrequired.DetailsofthenumberofCommitteemeetingsandtheattendanceoftheCommitteemembershavebeenincludedinsection9.2ofthisStatement.

6. PERFORMANCE AND REMUNERATION6.1 board performanCe and remuneration TheBoardreviewsitsperformanceannuallytoensurethatindividualdirectorsandtheBoardasawholeworkefficientlyandeffectivelyinachievingtheirfunctionssetoutwithintheCharter.TheChairmanannuallyassessestheperformanceofindividualdirectorsandmeetsprivatelywitheachdirectortodiscussthisassessmentandanyideasforimprovement.Atthissametime,directorsareabletoprovidefeedbackontheperformanceoftheChairman.TheBoardasawholediscussesandanalysesitsownperformanceduringtheyear.

TheBoardalsohasinplaceanannualprocesstoreviewitsperformanceaswellastheperformanceofthecommitteesoftheBoard.Eachdirectorcompletesaperformanceevaluationquestionnaire.Thequestionnairecoverstopicsincluding:

• theBoard’srole;

• compositionandeffectiveness;

• proceduresandpractices;

• behaviours;

• Boardadministration;and

• theconductoftheChairman.

Directorsarerequestedtoprovidecommentandfeedbackandtoevaluateeachareabyprovidingaratedresponsetovariousquestions.TheresultsoftheperformanceevaluationarecollatedbytheCompanySecretaryandsubmittedtotheNominationandRemunerationCommitteeforreview.AsummaryoftheresultsisthensubmittedtothefullBoard.TheBoardevaluationprocesswaslastcompletedinAugust2009.Theresultsoftheperformanceevaluationformthebasisofanactionplandesignedtoaddressperformanceimprovementopportunities.

TheGroup’sremunerationphilosophyanddetailsofthecurrentremunerationarrangementsareoutlinedwithintheRemunerationReportwhichformspartoftheDirectors’Reportfortheyearended30June2009.TheRemunerationReportconfirmsthatthestructureofnon-executivedirectorremunerationisseparateanddistinctfromseniorexecutiveremuneration.



TheNominationandRemunerationCommitteeisresponsibleforrecommendingtotheBoardfeesapplicabletonon-executivedirectors.Non-executivedirectorsmayalsobereimbursedfortheirexpensesproperlyincurredasadirector,orinthecourseoftheirduties.Non-executivedirectorsarealsoencouragedtoownsharesintheCompany.Thenon-executivedirectorsdonotparticipateinanyothershortorlongtermincentiveschemes.

Themaximumaggregateamountoffeesthatmaybepaidtoallnon-executivedirectorseachyeariscappedat$1.1million,whichwasapprovedbyshareholdersatthe2007AnnualGeneralMeetingofshareholders.TheBoardmaintainsafeebuffertogiveitsufficientflexibilitytoplanitsstructureinadvanceofspecificneedsthatmayarise.Thetotalfeespaidtonon-executivedirectorsduringthereportingperiodwas$712,000.

InformationregardingtheDirectors’RetirementPlanhasbeenincludedatsection3.9ofthisStatement,anddisclosedwithintheRemunerationReport.

6.2 exeCutive performanCe and remunerationEachyeartheBoard,withtheassistanceoftheManagingDirector,andtheNominationandRemunerationCommittee,undertakesaformalprocessofreviewingtheperformanceofseniorexecutives.ThemeasuresgenerallyrelatetotheperformanceoftheGroup,theperformanceoftheseniorexecutive’sdivisionordepartmentandtheperformanceoftheseniorexecutiveindividually.

TheNominationandRemunerationCommitteeandtheBoardreviewtheperformanceoftheManagingDirector.TheManagingDirectorisnotpresentattheNominationandRemunerationCommitteeorBoardmeetingswhenhisownperformanceandremunerationarebeingconsidered.

Forseniorexecutives,theManagingDirectorconductsinterviewswitheachexecutiveandprovidescommentsandfeedbackinrelationtotheseniorexecutive’sperformance.Aformalreviewprocessoccursforeachemployeewithnominatedsupervisorsconductingtheperformancereview.TheformalreviewprocessoccursannuallyandwascompletedinJune2009.

FurtherdetailsontheassessmentcriteriafortheManagingDirectorandseniorexecutiveremuneration(includingequity-basedshareplans)aredisclosedwithintheRemunerationReport.

6.3 remuneration reportTheRemunerationReportissetoutwith,andformspartof,thedirectors’reportfortheyearended30June2009.

7. RISK MANAGEMENT7.1 risk profile and oversight of the risk management systemTheBoardoverseestheestablishment,implementationandannualreviewoftheGroup’sriskmanagementandinternalcontrolsystems.Managementhasestablishedandimplementedthesystemsforidentifying,assessing,monitoringandmanagingmaterialoperational,financialreporting,internalcontrolsandcompliancerisksfortheGroup.

Thesystemsandprocessesimplementedtomanagematerialrisksinclude:

• riskmanagementframework;

• clearlydefinedmanagementresponsibilitiesandorganisationalstructure;

• delegatedlimitsofauthority;

• treasuryandaccountingcontrolsandreconciliations;

• comprehensivemanagementreportingsystems;

• budgetingandstrategicplanningprocesses;

• segregationofduties;

• physicalsecurityovertheGroup’sassets;

• appropriatepoliciesandproceduresthatarewidelydisseminatedto,andunderstoodby,employees;and

• riskmanagementandinternalauditfunctions.

DivisionalManagingDirectorsandotherseniorexecutivescompleteandsignoffonanannualDirectors’RiskManagementQuestionnaire.Theoperationalandothercomplianceriskmanagementprocedureshavealsobeenassessedandfoundtobeoperatingefficientlyandeffectively.Allriskassessmentscoverthewholefinancialyearandtheperioduptothesigningoftheannualfinancialreportforall

materialoperationsintheGroup.TheannualDirectors’RiskManagementQuestionnairefortheyearended30June2009wascompletedinJuly2009.

AswellastheDirectors’RiskManagementQuestionnaire,mattersrelatingtothebusinessriskandriskmanagementsystemareanalysedanddiscussedaspartoftheannualstrategicplanningprocess.TheBoardprovidesassistancetomanagementinthedevelopmentandmaintenanceofprocessestominimiseandmitigatebusinessrisks.

AsummaryoftheRiskManagementPolicyisavailablefromtheCompany’swebsiteoruponrequestfromtheCompanySecretary.

7.2 finanCial reportingTheManagingDirectorandtheDirectorFinance&Accountinghavedeclared,inwritingtotheBoardthatthefinancialreportsoftheCompanyandGrouparefoundedonasoundsystemofriskmanagementandinternalcomplianceandcontrolwhichimplementsthepoliciesadoptedbytheBoard.Thedeclarationsfortheyearended30June2009werereceivedinAugust2009.

7.3 internal auditTheGroupInternalAuditManagerassiststheBoardinensuringcompliancewithinternalcontrolsandriskmanagementprogramsbyregularlyreviewingtheeffectivenessofcomplianceandcontrolsystems.TheAuditCommitteeisresponsibleforapprovingtheprogramofinternalauditvisitstobeconductedeachyearandthescopeoftheworktobeperformedateachlocation.

7.4 Code of ConduCt and ethiCal standardsTheCompanyhasaCodeofConductandEthicalStandards(“Code”),whichhasbeenendorsedbytheBoardandappliestoalldirectorsandGroupemployees.TheCodeisreviewedandupdatedasnecessarytoensureitreflectsthehigheststandardsofbehaviourandprofessionalismandthepracticesnecessarytomaintainconfidenceintheGroup’sintegrity.

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Insummary,theCodeencapsulatesthatalldirectors,managersandemployeesareexpectedtoactwiththeutmostintegrityandobjectivity,strivingatalltimestoenhancethereputationandperformanceoftheGroup.Everyemployeehasanominatedsupervisortowhomtheyreferanyissuesarisingfromtheiremployment.

TheBoardreviewstheCoderegularlyandprocessesareinplacetopromoteandcommunicatetheCode’scontents.TheCodeisavailablefromtheCompany’swebsiteoruponrequestfromtheCompanySecretary.

7.5 WhistlebloWing poliCyTheCompanyhasaWhistleblowingPolicyfortheAustralianoperations.Thepolicyisdesignedtosupportandprotectanyemployeeswhoreportsnon-compliant,suspiciousorunethicalconductbyotheremployeesoftheGroup,regardlessofseniorityofthoseinvolvedintheallegedconduct.TheWhistleblowingPolicyformalisestheCompany’scommitmenttoprotecttheconfidentialityandpositionofemployeeswishingtoraiseseriousmattersthataffecttheintegrityoftheCompanyandGroup.

TheBoardreviewstheWhistleblowingPolicyregularlyandprocessesareinplacetopromoteandcommunicatetheWhistleblowingPolicy’scontents.TheWhistleblowingPolicyisavailablefromtheCompany’swebsiteoruponrequestfromtheCompanySecretary.

7.6 legal ComplianCe trainingAllseniormanagementpersonnelarerequiredtocompletelegalcompliancetrainingatleastonceeverytwoyears.Thetrainingcoverssuchtopicsas:

• contractfundamentals;

• issuesrelatingtotheTradePracticesAct1974;

• employmentcontracts,terminationandredundancy;

• harassmentanddiscrimination;

• workplacerelations;

• occupationalhealthandsafetyobligations;and

• corporatepolicies(includinglimitsofauthorityandsharetrading).

7.7 dealing in Company shares by direCtors and employeesTheConstitutionallowsdirectorstoacquiresharesintheCompany.However,itisthepolicyoftheCompanythatdirectorsonlybuyorsellsharesintheCompanyinthesixweekperiodimmediatelyfollowinganypricesensitiveannouncementincludingthehalfyearandfullyearresults,andtheAnnualGeneralMeeting.PurchasesoutsideofthisperiodmustreceivethepriorapprovaloftheBoard.Thispolicyissubjecttotheoverallrestrictionthatpersonsmayatnotimedealinanysecuritieswhentheyareinpossessionofpricesensitiveinformation.ThispolicyisalsoapplicabletoemployeesoftheGroupandthepolicyisoutlinedwithintheCode.

AlldirectorshaveenteredintowrittenagreementstonotifytheCompanySecretarywhentheybuyorsellsharesintheCompany.InaccordancewiththeprovisionsoftheCorporationsAct2001andtheASXListingRules,theCompanySecretaryadvisestheASXofanytransactionsconductedbydirectorsinsharesintheCompany.ThisinformationisalsoreportedtotheBoard.

Eachseniorexecutiveisrequested,onanannualbasis,toprovideinformationregardingthefinancialarrangements(includingmarginloans)attachedtotheirpersonalholdingsofsharesintheCompany.Inaddition,eachseniorexecutivehasprovidedanundertakingtoadvisetheCompanySecretaryofanysubsequentchangeregardingthefinancialarrangements(includingmarginloans)attachedtotheirpersonalholdingsofshares.ThisinformationisreportedtotheBoard.

TheGrouphasinstitutedprohibitionsonemployeesfromusingderivativesorenteringintotransactionsthatoperate,orareintendedtooperate,tolimittheeconomicriskofsecurityholdingsoverunvestedperformancesharesissuedundertheGroup’slongtermincentivescheme.

8. COMMUNICATION AND ENVIRONMENT8.1 Continuous disClosure poliCyTheBoardprovidesshareholderswithinformationusingacomprehensiveContinuousDisclosurePolicywhichincludesidentifyingmattersthatmayhaveamaterialeffectonthepriceoftheCompany’sshares,notifyingthemtotheASX,postingthemontheCompany’swebsite,andissuingmediareleases.

Insummary,theContinuousDisclosurePolicyoperatesasfollows:

• theChairman,ManagingDirector,DirectorFinance&AccountingandCompanySecretaryareresponsibleforinterpretingtheContinuousDisclosurePolicyandwherenecessaryinformingtheBoard.TheCompanySecretaryisresponsibleforallcommunicationswiththeASX.SuchmattersareadvisedtotheASXonthedaytheyarediscoveredandallseniorexecutivesmustfollowasetprocess,whichinvolvesmonitoringallareasoftheGroup’sinternalandexternalenvironment.TheCompanyconsidersithascompliedwithallofitscontinuousdisclosureobligations;

• theAnnualReportisdistributedtoallshareholderswhohaverequestedtoreceiveacopy.TheBoardensuresthattheAnnualReportcontainsdisclosuresrequiredbytheCorporationsAct2001andtheASXListingRules;

• thefulltextsofnoticesofmeetingsandassociatedexplanatorymaterialareplacedontheCompany’swebsite;

• theChairman’saddressispresentedattheAnnualGeneralMeetingandsubsequentlydistributedbymailtoallshareholders;

• thehalfyearreportcontainssummarisedfinancialinformationandareviewoftheoperationsoftheGroupduringtheperiod.Thereportissenttoallshareholders(unlessashareholderhasspecificallyrequestednottoreceivethedocument);and

• notificationismadetotheASXofanyothersignificantmattersregardingtheGroupinaccordancewiththeASXListingRules.



Alloftheaboveinformation,includingthatofthepreviousthreeyears,ismadeavailableontheGroup’swebsitewithinonedayofpublicrelease.

8.2 shareholders and the annual general meetingTheBoardencouragesfullparticipationofshareholdersattheAnnualGeneralMeetingtoensureahighlevelofaccountabilityandidentificationwiththeGroup’sstrategyandgoals.ImportantissuesarepresentedtoshareholdersassingleresolutionsandinplainEnglish.Shareholdersarerequestedtovoteontheappointmentandmaximumaggregateamountoffeesthatmaybepaidtoallnon-executivedirectors,thegrantingofperformancesharestotheManagingDirectorandchangestotheConstitution.

TheexternalauditorattendstheAnnualGeneralMeetingtoanswershareholderquestionsabouttheconductoftheauditandthepreparationandcontentoftheIndependentAuditReport.ThemeetingisheldinSydneyandshareholderscanattendinpersonorsendaproxyastheirrepresentative.Unlessindisposed,allcurrentdirectorsandseniorexecutivesattendthemeeting,alongwiththeexternalauditor.

AcopyoftheConstitutionisavailabletoanyshareholderwhorequestsit.

8.3 environmental reporting systemsTheGroup’soperationsaresubjecttovariousenvironmentalregulationsunderCommonwealth,stateorterritoryandotherapplicablelegislation.

TheGrouphasanestablishedenvironmentalreportingsystemforitsenvironmentallysensitivebusinesses,whichmonitorscompliancewithexistingenvironmentalregulationsandnewregulationsastheyareenacted.Therecreationalandotherancillaryactivitiesconductedbythosebusinessesaresubjecttovariouslicencesandlegislationissuedunderenvironmentallawsthatapplyineachrespectivelocation.TheBoardhasaresponsibilitytoensurethatrobustsystemsareinplacetomanagetheassetsinasustainableandresponsiblemannerandtoensurethattheactivitiesofeachbusinessareconductedincompliancewithlegislation.

Thereportingsystemisdocumentedinalegalcompliancemanualandincludesprocedurestobefollowedshouldanincidentoccurwhichmayadverselyimpacttheenvironment.Thedirectorsarenotawareofbreachesofanyapplicablelegislationduringtheyear,whicharematerialinnatureandhavenoreasontobelievethatanypossiblelegalorremedialactionwouldresultinamaterialcostorlosstotheGroup.

9. DIRECTORS’ QUALIFICATIONS AND ATTENDANCE AT MEETINGS9.1 direCtors’ QualifiCations, experienCe and independent status

ALAN RyDGEAge57.Non-executiveChairman,Boardmembersince1978,ChairmanoftheBoardsince1980,AuditCommitteememberandNominationandRemunerationCommitteemember.

EXPERIENCEAcompanydirectorwith30-plusyearsexperienceinthefilm,hospitality,leisureandtourismindustries.JoinedtheGreaterUniongroupin1971andwasformerlytheGroupManagingDirector.

DIRECTORSHIPSMrRydgeisalsoadirectorofthelistedcompany,CarltonInvestmentsLimited(appointed1980,chairmansince1980).Inaddition,MrRydgeischairmanofAlphoebPtyLimitedandEnbeearPtyLimited.

ANTHONy CLARK am, fCa, faiCdAge70.Independentnon-executivedirector,Boardmembersince1998,AuditCommitteememberandNominationandRemunerationCommitteemember.

MrClarkischairmanoftheAuditCommitteeandNominationandRemunerationCommitteeandistheleadindependentdirector.

EXPERIENCEAcompanydirectorwith40-plusyearsaccounting,audit,consultingandfinancerelatedexperience.MrClarkpreviouslypractisedasaCharteredAccountant.

DIRECTORSHIPSDirectorshipsofotherlistedcompanies,heldduringthelastthreeyears,include:

• CarltonInvestmentsLimited(appointed2000);

• CumnockCoalLimited(appointeddirectorandchairman2001andresigned2007);

• RamsayHealthCareLimited(appointed1998);and

• TelstraCorporationLimited(appointed1996andresigned2005).

Inaddition,MrClarkwaspreviouslythedeputychairmanofTourismAustralia(resignedDecember2006).

PETER COATES aoAge63.Independentnon-executivedirectorandBoardmemberappointed10July2009.

EXPERIENCEAcompanydirectorwith40-plusyearsseniorexecutiveexperienceintheminingandcommoditiesindustries.MrCoates’experienceincludesexposuretodomesticandinternationalbusinesspractices,mergersandacquisitionsandthedevelopmentofindustry-leadingworkplacereportingandgovernancestandardsfornumerousjointventurepartnershipsandcompanieslistedinAustraliaandtheUnitedKingdom.Formernon-executivechairmanofXstrataAustraliaPtyLimitedandchiefexecutiveofXstrataCoal.


• DownerEDILimited(appointed30October2008);

• MinaraResourcesLimited(appointed1April2008andchairman9May2008);and

• SantosLimited(appointed18March2008anddeputychairman10December2008).

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MrCoateswaspastchairmanoftheMineralsCouncilofAustralia,theNSWMineralsCouncilandtheAustralianCoalAssociationandmemberoftheAPEC2007BusinessConsultativeGroup,thePrimeMinister’sEmissionTradingTaskGroupandNSWMineralsMinisterialAdvisoryCouncil.MrCoatesiscurrentlyamemberoftheBusinessCouncilofAustralia.

THOMAS FORD faiCdAge70.Independentnon-executivedirectorandBoardmembersince1993.

EXPERIENCEAcompanydirectorandInvestmentBankerwith40-plusyearsofbankingandfinancerelatedexperience.PreviousdirectorshipsincludeResoluteMiningLimitedandAustralianPipelineTrust.


• ResoluteMiningLimited(appointed2001);and

• AustralianPipelineTrust(appointed1999andresigned2004).

Inaddition,MrFordisadirectorofAustralianJockeyClubLimitedandchairmanofResimacLimited.

RObERT GRAHAM be sydney, mba harvard, faiCdAge72.Independentnon-executivedirector,Boardmembersince1990,AuditCommitteememberandNominationandRemunerationCommitteemember.

EXPERIENCEAcompanydirectorwith40-plusyearsexperienceasamanagementconsultantandseniorexecutive.FormergroupgeneralmanageranddirectorofConsolidatedPressHoldingsLimitedandmanagingdirectorofSamuelTaylor.

DIRECTORSHIPSMrGrahamwasaformerdirectoroftheAustralianInstituteofCompanyDirectors(1998–2001).

MEREDITH HELLICAR ba, llm (hons), faiCdAge55.MsHellicarresignedasadirectoron23April2009.Priortoresignation,MsHellicarheldthepositionofindependentnon-executivedirectorandBoardmemberhavingbeenappointedinSeptember2003.

EXPERIENCEAcompanydirectorwith20-plusyearsseniorexecutiveexperienceinthetelecommunications,resources,logistics,legalservicesandfinancialservicessectors.FormermanagingdirectorofTNTLogisticsAsia,chiefexecutiveofficerofCorrsChambersWestgarthandmanagingdirectorofInTechFinancialServicesLimited.PreviousdirectorshipsincludeSouthernCrossAirportsGroup,HLAEnvirosciences,AurionGoldLimited,NSWTreasuryCorporation,HCSLimitedandtheNSWEnvironmentProtectionAuthority.


• AMPLimited(appointed2003andresignedApril2009);and

• JamesHardieIndustriesNV(appointed2001andresigned2007).

Inaddition,MsHellicarwasadirectoroftheGarvanInstituteFoundation(resignedApril2009).

RICHARD NEwTON bbus (marketing), faiCdAge49.Independentnon-executivedirectorandBoardmembersince2008.

EXPERIENCEAcompanydirectorwith20-plusyearsseniorexecutiveexperienceinpropertyinvestmentanddevelopment,specificallyinhoteloperations.

DIRECTORSHIPSMrNewtonheldthefollowingpositionsduringtheyear:

• chairmanofCapricornVillageJointVenture,WA;

• directorofCarltonFootballClub;

• directorofMobileworldCommunicationsPtyLimited(CrazyJohn’s);and

• directorofSelpam(Australia)PtyLimited(managingdirectorappointedMay1990andresignedNovember2007andappointedchairmanDecember2007)andadirectorofvariouscompanieswhollyownedbySelpam(Australia)PtyLimited.

DAVID SEARGEANTAge59.ManagingDirector,Boardmembersince2001andappointedManagingDirectorinJanuary2002.

EXPERIENCEManagingDirectorwith30-plusyearsexperienceinthehospitalityandleisureindustries.FormermanagingdirectorofRydgesHotelsgroup(1988–2002)andtheGreaterUniongroup(2000–2002).

DIRECTORSHIPSMrSeargeantheldthefollowingdirectorshipsduringtheyear:

• directorofTourismTrainingAustralia;and

• directorofAtlabHoldingsPtyLimited(resignedSeptember2008).

Explanation of Abbreviations and Degrees: AMMemberintheOrderofAustralia;AOOfficerintheOrderofAustralia;BABachelorofArts;BBus (Marketing)BachelorofBusiness(Marketing);BE SydneyBachelorofEngineering,TheUniversityofSydney;FAICDFellowoftheAustralianInstituteofCompanyDirectors;FCAFellowofTheInstituteofCharteredAccountantsinAustralia;LLM (Hons)MasterofLaws(Honours);andMBA HarvardMasterofBusinessAdministration,HarvardUniversity.



9.2 direCtors’ attendanCe at meetings Thenumberofdirectors’meetings(includingmeetingsofcommitteesofdirectors)andthenumberofmeetingsattendedbyeachofthedirectorsoftheCompanyduringthefinancialyearare:

Nomination and Remuneration Directors’ meetings Audit Committee meetings Committee meetings

entitled entitled entitled to attend attended to attend attended to attend attended

AGRydge 11 11 4 4 4 4

AJClark 11 11 4 4 4 4

PRCoates(a) – – – – – –

TCFord 11 11 – – – –

RMGraham 11 11 4 4 4 4

RGNewton 11 11 – – – –

MHellicar(b) 9 8 – – – –

DCSeargeant(c) 11 11 4 4 3 3

(a) PRCoateswasappointed10July2009.(b) MHellicarresigned23April2009.(c) AttendedCommitteemeetingsbyinvitation.

Duringthefinancialyear,directorsalsovisitedvarioussitestoimprovetheirunderstandingoftheGroup’ssitelocationsandoperations.

10. RECOMMENDATIONS

reCommendations referenCe Comply

Recommendation1.1 Companiesshouldestablishthefunctionsreservedtotheboardandthosedelegatedtoseniorexecutivesanddisclosethosefunctions.

3.1 Yes

Recommendation1.2 Companiesshoulddisclosetheprocessforevaluatingtheperformanceofseniorexecutives.

6.2 Yes

Recommendation1.3 CompaniesshouldprovidetheinformationindicatedintheGuidetoreportingonPrinciple1.

guide to reporting on principle 1Thefollowingmaterialshouldbeincludedinthecorporategovernancestatementintheannualreport:

• anexplanationofanydeparturefromRecommendations1.1,1.2or1.3 – Notapplicable

• whetheraperformanceevaluationforseniorexecutiveshastakenplaceinthereportingperiodandwhetheritwasinaccordancewiththeprocessdisclosed.

6.2 Yes

Astatementofmattersreservedfortheboard,ortheboardcharterorthestatementofareasofdelegatedauthoritytoseniorexecutivesshouldbemadepubliclyavailable,ideallybypostingittothecompany’swebsiteinaclearlymarkedcorporategovernancesection.

3.1 Yes

Recommendation2.1 Amajorityoftheboardshouldbeindependentdirectors. 3.3,9.1 Yes

Recommendation2.2 Thechairshouldbeanindependentdirector. 3.5,9.1 No

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Recommendation2.3 Therolesofchairandchiefexecutiveofficershouldnotbeexercisedbythesameindividual.

3.3 Yes

Recommendation2.4 Theboardshouldestablishanominationcommittee. 3.2 Yes

Recommendation2.5 Companiesshoulddisclosetheprocessforevaluatingtheperformanceoftheboard,itscommitteesandindividualdirectors.

6.1 Yes



• theskills,experienceandexpertiserelevanttothepositionofdirectorheldbyeachdirectorinofficeatthedateoftheannualreport

3.3,9.1 Yes

• thenamesofthedirectorsconsideredbytheboardtoconstituteindependentdirectorsandthecompany’smaterialitythresholds

3.4,9.1 Yes

• theexistenceofanyoftherelationshipsaffectingtheindependentstatusofadirectorandanexplanationofwhytheboardconsidersadirectortobeindependent,notwithstandingtheexistenceofthoserelationships

3.4 Yes

• astatementastowhetherthereisaprocedureagreedbytheboardfordirectorstotakeindependentprofessionaladviceattheexpenseofthecompany

3.8 Yes

• theperiodofofficeheldbyeachdirectorinofficeatthedateoftheannualreport 9.1 Yes

• thenamesofmembersofthenominationcommitteeandtheirattendanceatmeetingsofthecommittee,orwhereacompanydoesnothaveanominationcommittee,howthefunctionsofanominationcommitteearecarriedout

5.2,9.2 Yes

• whetheraperformanceevaluationfortheboard,itscommitteesanddirectorshastakenplaceinthereportingperiodandwhetheritwasinaccordancewiththeprocessdisclosed

6.1 Yes

• anexplanationofanydeparturesfromRecommendations2.1,2.2,2.3,2.4,2.5or2.6.

3.3 Yes

Thefollowingmaterialshouldbemadepubliclyavailable,ideallybypostingittothecompany’swebsiteinaclearlymarkedcorporategovernancesection:

• adescriptionoftheprocedurefortheselectionandappointmentofnewdirectorsandthere-electionofincumbentdirectors

3.3 Yes

• thecharterofthenominationcommitteeorasummaryoftherole,rights,responsibilitiesandmembershiprequirementsforthatcommittee

5.2 Yes

• theboard’spolicyforthenominationandappointmentofdirectors. 3.3 Yes

Recommendation3.1 Companiesshouldestablishacodeofconductanddisclosethecodeorasummaryofthecodeasto:

• thepracticesnecessarytomaintainconfidenceinthecompany’sintegrity

• thepracticesnecessarytotakeintoaccounttheirlegalobligationsandthereasonableexpectationsoftheirstakeholders

• theresponsibilityandaccountabilityofindividualsforreportingandinvestigatingreportsofunethicalpractices.

7.4,7.5 Yes



Recommendation3.2 Companiesshouldestablishapolicyconcerningtradingincompanysecuritiesbydirectors,seniorexecutivesandemployees,anddisclosethepolicyorasummaryofthatpolicy.

7.4,7.7 Yes


guide to reporting on principle 3AnexplanationofanydeparturefromRecommendations3.1,3.2or3.3shouldbeincludedinthecorporategovernancestatementintheannualreport.


– Notapplicable

• anyapplicablecodeofconductorasummary 7.4 Yes

• thetradingpolicyorasummary. 7.7 Yes

Recommendation4.1 Theboardshouldestablishanauditcommittee. 3.2,4.1,4.2 Yes

Recommendation4.2 Theauditcommitteeshouldbestructuredsothatit:

• consistsonlyofnon-executivedirectors

• consistsofamajorityofindependentdirectors

• ischairedbyanindependentchair,whoisnotchairoftheboard

• hasatleastthreemembers.

4.2 Yes

Recommendation4.3 Theauditcommitteeshouldhaveaformalcharter. 4.1 Yes


guide to reporting on principle 4 Thefollowingmaterialshouldbeincludedinthecorporategovernancestatementintheannualreport:

• thenamesandqualificationsofthoseappointedtotheauditcommitteeandtheirattendanceatmeetingsofthecommittee,or,whereacompanydoesnothaveanauditcommittee,howthefunctionsofanauditcommitteearecarriedout

4.2,9.1,9.2 Yes

• thenumberofmeetingsoftheauditcommittee 4.2,9.2 Yes

• explanationofanydeparturesfromRecommendations4.1,4.2,4.3or4.4. – Notapplicable


• theauditcommitteecharter 4.1 Yes

• informationonproceduresfortheselectionandappointmentoftheexternalauditor,andfortherotationofexternalauditengagementpartners

4.1 Yes

Recommendation5.1 CompaniesshouldestablishwrittenpoliciesdesignedtoensurecompliancewithASXListingRuledisclosurerequirementsandtoensureaccountabilityataseniorexecutivelevelforthatcomplianceanddisclosethosepoliciesorasummaryofthosepolicies.

8.1 Yes

26




guide to reporting on principle 5AnexplanationofanydeparturesfromRecommendations5.1or5.2shouldbeincludedinthecorporategovernancestatementintheannualreport.

– Notapplicable

ThepoliciesorasummaryofthosepoliciesdesignedtoguidecompliancewithListingRuledisclosurerequirementsshouldbemadepubliclyavailable,ideallybypostingthemtothecompany’swebsiteinaclearlymarkedcorporategovernancesection.

8.1 Yes

Recommendation6.1 Companiesshoulddesignacommunicationspolicyforpromotingeffectivecommunicationwithshareholdersandencouragingtheirparticipationatgeneralmeetingsanddisclosetheirpolicyorasummaryofthatpolicy.

8.1,8.2 Yes


guide to reporting on principle 6AnexplanationofanydeparturefromRecommendations6.1or6.2shouldbeincludedinthecorporategovernancestatementintheannualreport.

– Notapplicable

Thecompanyshoulddescribehowitwillcommunicatewithitsshareholderspublicly,ideallybypostingthisinformationonthecompany’swebsiteinaclearlymarkedcorporategovernancesection.

8.1,8.2 Yes

Recommendation7.1 Companiesshouldestablishpoliciesfortheoversightandmanagementofmaterialbusinessrisksanddiscloseasummaryofthosepolicies.

7.1 Yes

Recommendation7.2 Theboardshouldrequiremanagementtodesignandimplementtheriskmanagementandinternalcontrolsystemtomanagethecompany’smaterialbusinessrisksandreporttoitonwhetherthoserisksarebeingmanagedeffectively.Theboardshoulddisclosethatmanagementhasreportedtoitastotheeffectivenessofthecompany’smanagementofitsmaterialbusinessrisks.

3.1,4.1,7.1,7.2,7.3

Yes

Recommendation7.3 Theboardshoulddisclosewhetherithasreceivedassurancefromthechiefexecutiveofficer(orequivalent)andthechieffinancialofficer(orequivalent)thatthedeclarationprovidedinaccordancewithsection295AoftheCorporationsActisfoundedonasoundsystemofriskmanagementandinternalcontrolandthatthesystemisoperatingeffectivelyinallmaterialrespectsinrelationtofinancialreportingrisks.

7.2 Yes





• explanationofanydeparturesfromRecommendations7.1,7.2,7.3or7.4 – Notapplicable

• whethertheboardhasreceivedthereportfrommanagementunderRecommendation7.2

7.1 Yes

• whethertheboardhasreceivedassurancefromthechiefexecutiveofficer(orequivalent)andthechieffinancialofficer(orequivalent)underRecommendation7.3.

7.2 Yes


• asummaryofthecompany’spoliciesonriskoversightandmanagementofmaterialbusinessrisks.

7.1 Yes

Recommendation8.1 Theboardshouldestablisharemunerationcommittee. 3.2,5.1,5.2 Yes

Recommendation8.2 Companiesshouldclearlydistinguishthestructureofnon-executivedirectors’remunerationfromthatofexecutivedirectorsandseniorexecutives.

6.1,6.2 Yes


guide to reporting on principle 8 Thefollowingmaterialoraclearcross-referencetothelocationofthematerialshouldbeincludedinthecorporategovernancestatementintheannualreport:

• thenamesofthemembersoftheremunerationcommitteeandtheirattendanceatmeetingsofthecommittee,orwhereacompanydoesnothavearemunerationcommittee,howthefunctionsofaremunerationcommitteearecarriedout

5.2,9.1,9.2 Yes

• theexistenceandtermsofanyschemesforretirementbenefits,otherthansuperannuation,fornon-executivedirectors

3.9,6.1 Yes

• anexplanationofanydeparturesfromRecommendations8.1,8.2or8.3. – Notapplicable


• thecharteroftheremunerationcommitteeorasummaryoftherole,rights,responsibilitiesandmembershiprequirementsforthatcommittee

5.1 Yes

• asummaryofthecompany’spolicyonprohibitingenteringintotransactionsinassociatedproductswhichlimittheeconomicriskofparticipatinginunvestedentitlementsunderanyequity-basedremunerationschemes.

7.7 Yes

28

Financial Reportfor the year ended 30 June 2009

CONTENTS

Directors’ Report 29Directors’ Report: Remuneration Report-audited 35Lead Auditor’s Independence Declaration 45Income Statements 46balance Sheets 47Statements of Changes in Equity 48Statements of Cash Flows 49Notes to the financial statements 50 1. significant accounting policies 50

2. segment reporting 57

3. revenue and other income 62

4. profit before income tax 63

5. discontinued operations 64

6. auditors’ remuneration 65

7. taxation 65

8. dividends 69

9. earnings per share 70

10. Cash and cash equivalents 70

11. receivables 70

12. inventories 71

13. other current assets 71

14. other financial assets 72

15. available-for-sale financial assets 72

16. investments accounted for using the equity method 72

17. property, plant and equipment 72

18. investment properties 77

19. goodwill and other intangible assets 77

20. other non-current assets 79

21. payables 79

22. interest bearing liabilities and borrowings 79

23. financing arrangements 80

24. provisions 80

25. other liabilities 81

26. share capital 82

27. reserves and retained earnings 83

28. financial risk management 84

29. employee benefits 92

30. Commitments and leases 93

31. Contingent assets and liabilities 95

32. deed of Cross guarantee 96

33. acquisition and disposal of businesses and subsidiaries 97

34. particulars in relation to consolidated entities 98

35. investments in associates 99

36. investments in jointly controlled entities 101

37. director and executive disclosures 102

38. related parties 106

39. reconciliation of cash flows from operating activities 107

40. events subsequent to reporting date 107

Directors’ Declaration 108Independent Auditor’s Report 109Shareholder Information 110Other Information 112


Directors’ Report

ThedirectorspresenttheirreporttogetherwiththefinancialreportofAmalgamatedHoldingsLimited(“Company”or“ParentEntity”)andtheconsolidatedentity(“Group”),beingtheCompanyanditscontrolledentities,fortheyearended30June2009andtheauditor’sreportthereon.

DIRECTORSThedirectorsoftheCompanyinofficeatanytimeduringorsincetheendoftheyearare:

MrAGRydge(Chairman)Directorsince1978

MrAJClark(leadindependentdirector)Directorsince1998

MrPRCoatesAppointed10July2009

MrTCFordDirectorsince1993

MrRMGrahamDirectorsince1990

MrRGNewtonAppointed29February2008

MrDCSeargeant(ManagingDirector)Directorsince2001andManagingDirectorsince2002

MsMHellicarwasadirectorsince2003andresigned23April2009.

Particularsofthequalifications,experienceandindependencestatusofeachdirector,asatthedateofthisreport,aresetoutwithintheCorporateGovernanceStatementincludedwiththeFinancialReport.

DIRECTORS’ MEETINGSThenumberofdirectors’meetings(includingmeetingsofcommitteesofdirectors)andthenumberofmeetingsattendedbyeachofthedirectorsoftheCompanyduringthefinancialyearhasbeendisclosedwithintheCorporateGovernanceStatementincludedwiththeFinancialReport.

COMPANy SECRETARyMrGCDeanCA,ACISwasappointedtothepositionofCompanySecretaryforAmalgamatedHoldingsLimitedinDecember2002.GCDeanwasAccountingManagerfortheCompany(2001–2002)andwaspreviouslyemployedbyaninternationalminingcorporationandaregionalaccountingpractice.GCDeanisaCharteredAccountantandamemberofCharteredSecretariesAustralia.

PRINCIPAL ACTIVITIESTheprincipalactivitiesoftheGroupduringthecourseoftheyearwere:

• motionpictureexhibitionincinemasanddrive-intheatres;

• ownershipofcinema,drive-in,officeandretailproperties;

• operationofhotels,resortsandrestaurantsandownershipofhotelproperties;

• ownershipandoperationofThredboAlpineResort;

• ownershipandoperationofFeatherdaleWildlifePark;

• ownershipandoperationoftheStateTheatre,Sydney;

• supplyoftheatreandfilmlaboratoryequipment;and

• investmentinsharesinvariouslistedandunlistedcompanies.

DuringtheyeartheGroupdisposedofits50%interestinAtlabHoldingsPtyLimited(“Atlab”).Furtherdetailsofthistransactionareoutlinedinthesignificantchangesinthestateofaffairsanddetailedbelow.

TherewerenoothersignificantchangesinthenatureoftheactivitiesoftheGroupduringtheyear.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRSThesignificantchangeinthestateofaffairsoftheGroupduringtheyearincludedthesaleoftheGroup’s50%interestintheAtlabgroupinSeptember2008.Priortothesale,theAtlabgroupwasanequityaccountedassociatedcompany.Theconsiderationforthesalewas$1,500,000,whichwasequivalenttotheGroup’scarryingvalueand,asaresult,therewasnoprofitorlossonthesale.

OPERATING AND FINANCIAL REVIEwovervieW of the groupThenormalisedresultbeforeinterestwas$97,566,000(2008:$76,953,000)andrepresentedanincreaseof$20,613,000or26.8%abovetheprioryearresult.Normalisednetprofitwas$70,968,000(2008:$54,054,000)anincreaseof$16,914,000or31.3%abovetheprioryearresult.

Individuallysignificantitemsinthepreviousyeartotalled$69,085,000andincludedthegainonthedisposalofRoadshowDistributorsPtyLimitedof$64,381,000.Individuallysignificantitemsinthecurrentyearconsistofwrite-downsinthecarryingvalueoflandandbuildingstotalling$5,340,000.Asaresultoftheprioryear’sindividuallysignificantitems,theGroup’snetprofitof$69,483,000(2008:$99,369,000)was$29,886,000or30.1%belowtheprioryearresult.

Thenormalisedresultincludesafairvaluedecrementtotalling$1,030,000relatingtotherevaluationoftheGroup’spropertiesthathavebeenclassifiedasinvestmentproperties.Thepriorcomparableperiodincludedafairvaluedecrementof$1,400,000.

30

Directors’ Report continued

2009 2008

individually individually normalised discontinued significant normalised discontinued significant result * operations items total result * operations items total

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

entertainmentCinemaExhibitionDomestic 42,983 – – 42,983 34,293 – – 34,293CinemaExhibitionInternational 23,101 – – 23,101 6,297 – 8,957 15,254

hospitality and leisure Hotels 24,530 – (3,028) 21,502 30,861 – – 30,861ThredboAlpineResort 16,012 – – 16,012 14,938 – – 14,938Leisure/Attractions 1,574 – – 1,574 974 – – 974

entertainment teChnologyTechnology (761) – – (761) 3 – – 3

strategiC investments Available-for-saleinvestments 428 – – 428 402 – – 402Property 2,127 – (2,312) (185) 2,744 – – 2,744

unalloCated revenues and expenses (12,428) 250 – (12,178) (13,559) 500 – (13,059)

disContinued operationsRoadshowDistributorsPtyLimited – – – – – 2,115 64,381 66,496AtlabHoldingsPtyLimited – – – – – 169 (4,253) (4,084)

97,566 250 (5,340) 92,476 76,953 2,784 69,085 148,822Financerevenue 1,440 – – 1,440 3,354 – – 3,354Financecosts (5,112) – – (5,112) (5,353) – – (5,353)

93,894 250 (5,340) 88,804 74,954 2,784 69,085 146,823Incometaxexpense (22,932) – – (22,932) (20,754) – – (20,754)Incometax(expense)/benefitfromdiscontinuedoperations – 3,605 – 3,605 – (150) (26,404) (26,554)

70,962 3,855 (5,340) 69,477 54,200 2,634 42,681 99,515Minorityinterest 6 – – 6 (146) – – (146)

Net profit 70,968 3,855 (5,340) 69,483 54,054 2,634 42,681 99,369

* Normalisedresultisprofit/(loss)beforeindividuallysignificantitems,discontinuedoperations,minorityinterestandincometax.

Ananalysisofthelastfiveyearsisoutlinedbelow:

2009 2008 2007 2006 2005

Totalrevenueandotherincome($’000) 712,311 619,028 628,905 614,612 598,976Netprofit^($’000) 69,483 99,369 82,195 59,441 45,651Basicearningspershare(cents) 53.5 77.3 64.6 47.3 36.4Dividendsdeclared($’000) 41,727 38,756 35,854 30,261 23,268Dividendspershare(cents) 32.0 30.0 28.0 24.0 18.5

^ Netprofitafterindividuallysignificantitems,netfinancecosts,minorityinterestandincometax.

investmentsTheGroupacquiredproperty,plantandequipmenttotalling$113,968,000duringtheyear.Thisfigureexcludescapitalexpenditureincurredthroughpartnerships’activities.TheacquisitionswereprimarilyattributabletothepurchasesoftheGoldCoastInternationalHotelandRydgesSabayaResort,expansionoftheexistingcinemacircuits,refurbishmentrequirementsforthecinemas,hotelsandresortsandtheinfrastructureandoperationalrequirementsfortheThredboAlpineResort.


Capital struCtureDuringtheyear,733,500ordinaryshareswereissuedasaresultofemployeesexercisingoptionsgrantedundertheManagementShareOptionPlan.Fundsraisedfromtheexerciseoftheseordinaryshareoptionsamountedto$2,543,425.Inaddition,526,597performanceshareswereissuedtoemployeesundertheExecutivePerformanceSharePlan.

Borrowingsincreasedby$42,878,000duringtheyear.Thenetdebttobookequityratiohasdecreasedto9.5%asat30June2009(2008:1.5%).

treasury poliCyTheGroupmanagesinterestrateriskinaccordancewithaBoardapprovedpolicycoveringthetypesofinstruments,rangeofprotectionanddurationofinstruments.Thefinancialinstrumentscoverinterestrateswaps,forwardrateagreementsandinterestrateoptions.Maturitiesoftheseinstrumentsareuptoamaximumoffiveyears.InterestrateswapsandforwardrateagreementsallowtheGrouptoraiselongtermborrowingsincludinglongtermfinanceleases,atfloatingratesandswapaportionofthoseborrowingsintofixedrates.

Theapprovedrangeofinterestratecoverisbasedontheprojecteddebtlevelsforeachcurrencyandreducedforeachfutureyear.TheGroupcurrentlyhedgesinterestbearingdebtinAUD,EURandNZDwithcoverat30June2009extendingtoSeptember2012inAUD,toDecember2010inEURandSeptember2011inNZD.At30June2009,theGrouphad64%(2008:52%)ofdebthedged.

TheGroupclassifiesinterestrateswapsascashflowhedgesandstatesthematfairvalueintheBalanceSheet.

liQuidity and fundingTheGroup’ssecuredbankdebtfacilitiescomprisethefollowing:

• A$160,000,000ofrevolvingmulti-currencyloanfacilities;

• A$70,000,000ofcashadvancefacilities;

• A$38,750,000ofcreditsupportfacilities(fortheissueoflettersofcreditandbankguarantees);

• atotalofA$5,050,000inoverdraftlimitstosupportitstransactionalbankingfacilities.

Theabovefacilitiesmatureon10July2012.ThesefacilitiesaresupportedbyinterlockingguaranteesfrommostGroupentitiesandaresecuredbyspecificpropertymortgages.Debt

drawnunderthesefacilitiesbearinterestattherelevantinter-bankbenchmarkreferencerateplusamarginofbetween0.45%to0.90%perannum.At30June2009,theGrouphaddrawn$67,093,000(2008:$13,931,000)underthedebtfacilities,ofwhich62.7%wassubjecttointerestrateswapsusedforhedging.

Inadditiontotheabovefacilities,whollyownedsubsidiariesinGermanyhaveworkingcapitalfacilitiestotalling€9,000,000(A$15,649,000)(securedbyaletterofcreditandbankguaranteesdrawnunderthecreditsupportfacilityinAustralia),andadditionalworkingcapitalfacilitiestotalling€5,000,000(A$8,694,000)supportedbytheCompany.Debtdrawnunderthesefacilitiesbearsinterestattherelevantinter-bankbenchmarkreferencerateplusamarginofbetween0.85%to2.0%perannum.Thesefacilitiesaresubjecttoannualreview.At30June2009,theGrouphaddebtdrawnof$700,000(2008:$5,842,000)fromthesefacilities.

UseoffundsundertheGroup’smainbankfacilitiesislimitedbycertainundertakings;however,itisconsideredthattheGrouphassufficientbankfacilitiesavailabletomeetanyinvestmentopportunitiesandseasonalfluctuationsinworkingcapitalrequirements.

Cash floWs from operationsOperatingnetcashinflowsdecreasedto$101,991,000from$103,002,000intheprioryear.Thisdecreasewasmostlyattributabletolowerdistributionsfromassociatesandjointlycontrolledentities,workingcapitalmovementsandincometaxpaidinrelationtothe2008financialyear.

impaCt of legislation and other external reQuirementsTherewerenochangesinenvironmentalorotherlegislativerequirementsduringtheyearthathavesignificantlyimpactedtheresultsofoperationsoftheGroup.

REVIEw OF OPERATIONS by DIVISIONTheManagingDirector’sReviewofOperationsbydivisionissetoutonpages10to13.

STRATEGIC PLANS by DIVISIONTheGroup’sstrategicplan,whichincludesfutureexpansion,willdependonindustry,economicandpoliticalconditions,thepotentialimpactofglobalevents,thefuturefinancialperformanceandavailablecapital,thecompetitiveenvironment,evolving

customerneedsandtrends,andtheavailabilityofattractiveopportunities.ItislikelythattheGroup’sstrategieswillcontinuetoevolveandchangeinresponsetotheseandotherfactors,andtherecanbenoabsoluteassurancethatthesecurrentstrategies,asdetailedbelow,willbeachieved.

ENTERTAINMENTThestrategicplansforEntertainmentareapplicabletoboththedomesticandinternationalcinemabusinesses.

Cinema exhibition – domestiC and internationalenhanCing the Customer experienCeWhilsttheGrouphasnocontroloverthegeneralaudienceappealofavailablefilms,providingconsumerswithademonstrablysuperiorexperienceinthecinematothatwhichcanbeachievedinthehome,isacentralstrategicplatform.Toprovidethisenhancedcinemaexperience,theGroupwillpursuethefollowingstrategies:

• continuedrefurbishmentofexistingcinemasandexpansionofthenumberofcinemaswiththeEventCinemabrand;

• expansionoftheGoldClasscinemaconcepttocertaincinemalocationswithintheAustraliandomesticcircuit;

• expansionoftheVmaxcinemaconceptwhichprovidestheultimatebigscreencinemaexperiencethroughlargerscreensandseatsthanatraditionalauditorium;

• continuedimprovementoffoodandbeverageoutletswithinthecinemastomaximisefoodandbeveragerevenueopportunities;

• continuedexpansionofthe3DdigitalfootprintwithintheAustraliandomesticcircuittoensureallregionshaveaccesstothereleaseof3Dtitles;and

• enhancedcustomercommunicationandticketingthroughonlineassets.

maximising returns from existing loCationsThecinemaexhibitionmarketsinAustralia,andthoseinternationallocationsinwhichtheGroupcurrentlyoperates,areconsideredtobematuremarketswithlimitedgrowthandexpansionopportunity.TheGroupanticipatesachievinggrowthprimarilythroughfurtherexpansionofthepremiumcinemaconceptsofGoldClassandVmaxandbuildinghigherfrequencythroughloyaltyandfurthercostimprovements.

32


rationalising underperforming Cinema sitesTheGroupwillcontinuetopursuethepolicyofrationalisingunderperformingcinemasites.Allsites,inallterritories,arereviewedperiodicallyand,whereitisassessedthatthereislimitedprofitorpotentialforperformanceturnaround,anexitstrategyisformulated.Wherethesite(orgroupofsites)issubjecttolongtermleases,theexitstrategymaybeoveraprotractedperiodoftime.

industry developmentsTheGroupbelievesthattherearecertaincurrentissuespertainingtotheindustrythathavethecapacitytoimpactthestrategicplansandfuturedirectionofthecinemaoperations.TheGroupwillcontinuetomonitordevelopmentsinrelationtothefollowingissues:

• increaseincapitalexpenditureresultingfromthedevelopmentofdigitaltechnologiesforfilmexhibition;

• alternativefilmdeliverymethodsandtheriseinpopularityofotherformsofentertainment(includingDVDownershipandtheincreaseofhomeentertainmentsystems);

• shorteningofthereleasewindowoffilmtoDVD;and

• increaseinunauthorisedrecording(piracy)ofaudioandvisualrecordingsforcommercialsale.

HOSPITALITy AND LEISURErydges hotels and resorts enhanCing the guest experienCeTheGroupwillcontinuetoprovidehotelguestswithquality4staraccommodationthatconsistentlydeliversaproductandservicethatmeetsorexceedsguestexpectations.Toprovidethis,theGroupwillcontinuetopursuethefollowingstrategies:

• aconstantfocusoninnovativeanddynamicrecruitmentandtrainingpracticestoensuretalentedanddynamicpeopleareattractedtoworkinRydgesHotels;

• maintenanceofallhotelsat4starstandardandwhenrequired,rejuvenationofkeyareasofhotelstoensureRydges’reputationcontinuestobeenhanced;

• aspecificfocusoncreatingstandoutfoodandbeverageexperiencesthatbuildincrementalspendandenhanceeachhotelsreputation;and

• maintenanceofaleadershippositionintheonlinedistributionandbookingcapabilitiesforguests.TheRydgesPriorityGuestprogramandthesalesandrevenuestructureareimportantsupportfunctionsfortheonlinestrategy.

inCreasing the number of hotel roomsTheGroupwillcontinuetoseekopportunitiesforfuturegrowththroughgainingofnewhotelmanagementagreementsandfreeholdacquisitions.

maximising returns from existing loCationsTheGroupanticipatesachievingcontinuingimprovementsinresultsthroughgrowthinmarketshareandinitiativesthatdriveincreasedspendandcaptureratesinallhotels.

thredbo alpine resort – kosCiusko thredbo

premier holiday destinationThekeystrategyfortheThredboAlpineResortistomaintainthefacilityasoneofthepremierAustralianholidaydestinations.Thisstrategyincludes:

• continuingtoensurethepopularity,high-qualityandambienceofthewinter-timeresortfacility;

• enhancingsnowmakingautomationtominimiserisksinpoorseasons;

• increasingthesummerandshouldervisitationsbybothleisureandconferenceguests;

• stagingofspecialeventsthathelptopromotetheResort;and

• ensuringthattheenvironmentalintegrityoftheResortismaintainedand,wherepossible,improved.

maximising returns from existing faCilityTheGroupanticipatesthattheResortwillachievegrowththroughshoulderperiods,summerrevenueandcostimprovements,increasedvisitationandincreasedoccupancyrates.

ENTERTAINMENT TECHNOLOGyThestrategicplansforEntertainmentTechnologyareapplicabletoeachofthetechnologybusinesses.

edge digital teChnology and filmlab

maintaining paCe With teChnologiCal advanCesTheGroupexpectsthatadigitalplatformwillreplace35mmfilmprojectionintheexhibitionindustryoverthenextonetothreeyears.TheGroupisassessingpotentialincomestreamsinrelationtothedeploymentandmaintenanceofdigitalprojectionsystems.

maximising returns from existing businessesTheGroupisfocusingonrestructuringbusinessprocessestoreducethelevelofoperatingcostsoftheexistingbusinessandensuringtheappropriatestructuresareinplacefortherolloutofthedigitalplatform.

industry developmentsTheGroupexpectsthatadigitalplatformwillreplacethecurrent35mmfilmreleaseprintingprocessoverthenextonetothreeyears.TheGroupisassessingpotentialincomestreamsfromdigitaldistributiontopartiallyoffsetthelossofincomefromtraditionalfilm-basedprocesses.

STRATEGIC INVESTMENTSproperty

maximising returns from existing investmentTheGrouphasanumberofpropertyassetsthatitintendstoredevelopovertime.Thetimingoftheseredevelopmentsisdependentonthetypeofuseandstageofthepropertycycle.


DIVIDENDSDividendspaidordeclaredbytheCompanysincetheendofthepreviousyearwere:

Per share Total amount Date of Tax rate for Type Cents $’000 payment franking credit

deClared and paid during the yearFinal2008dividend 19 24,554 25September2008 30%Interim2009dividend 11 14,344 19March2009 30%

38,898

deClared after the end of the yearFinal2009dividend 21 27,383 17September2009 30%

AllthedividendspaidordeclaredbytheCompanysincetheendofthepreviousyearwere100%franked.

REMUNERATION REPORTTheRemunerationReport,whichformspartoftheDirectors’Report,issetoutonpages35to44andhasbeenauditedasrequiredbysection308(3C)oftheCorporationsAct2001.

EVENTS SUbSEQUENT TO REPORTING DATETherehasnotarisenintheintervalbetweentheendoftheyearandthedateofthisreport,anyitem,transactionoreventofamaterialandunusualnaturelikely,intheopinionofthedirectorsoftheCompany,toaffectsignificantlytheoperationsoftheGroup,theresultsofthoseoperations,orthestateofaffairsoftheGroup,infutureyears.

LIKELy DEVELOPMENTSLikelydevelopmentsintheoperationsoftheGrouparereferredtointheReviewofOperationsbyDivision,setoutwithinthisReport.

DIRECTORS’ INTERESTSTherelevantinterestofeachdirectoroftheCompanyinsharecapitaloftheCompany,asnotifiedbythedirectorstotheAustralianSecuritiesExchange(“ASX”)inaccordancewithsection205G(1)oftheCorporationsAct2001,atthedateofthisreportisasfollows:

ordinary shares held by companies in which a director director ordinary shares held directly has a beneficial interest (a) options held directly

AGRydge 1,801,455 56,165,337 –AJClark 25,000 25,000 –PRCoates – 11,500 –TCFord – 10,000 –RMGraham 10,626 – –MHellicar(b) – – (b) –RGNewton 20,000 – –DCSeargeant 486,500 234,000 –

(a) RelevantinterestundertheCorporationsAct2001differsfromthedisclosurerequiredunderAustralianAccountingStandardsaspresentedinNote37intheFinancialReport.(b) MsMHellicarresignedon23April2009.Atthedateofresignation,MsHellicarhadabeneficialinterestin2,000ordinaryshares.

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERSTheCompany’sConstitutionprovidesanindemnitytoeachperson,includingAGRydge,AJClark,PRCoates,TCFord,RMGraham,RGNewtonandDCSeargeant,whoisorwhohasbeenadirectororalternatedirectoroftheCompanyorofanyrelatedbodycorporateoftheCompany.Theindemnityalsoextendstosuchotherofficersorformerofficers,includingexecutiveofficersorformerexecutiveofficers,oftheCompanyandofanyrelatedbodycorporateoftheCompanyasthedirectorsoftheCompanydetermine.

Intermsoftheindemnity,theCompanywillindemnifythedirectorsandotherofficersoftheCompanyactingassuch,tothefullextentpermittedbylaw,againstanyliabilitytoanotherperson(otherthantheCompanyorarelatedbodycorporate)incurredinactingasadirectororofficeroftheCompany,unlesstheliabilityarisesoutofconductinvolvingalackofgoodfaith.Theindemnityincludesanyliabilityforcostsandexpensesincurredbysuchpersonindefendinganyproceedings,whethercivilorcriminal,inwhichjudgementisgiveninthatperson’sfavour,orinwhichthepersonisacquittedandinmakinganapplicationinrelationtoanyproceedingsinwhichthecourtgrantsrelieftothepersonunderthelaw.

TheCompanyhasprovideddirectors’andofficers’liabilityinsurancepoliciesthatcoverallthedirectorsandofficersoftheCompanyanditscontrolledentities.Thetermsofthepoliciesprohibitdisclosureofdetailsoftheamountoftheinsurancecover,itsnatureandthepremiumpaid.

34


OFFICERS wHO wERE PREVIOUSLy PARTNERS OF THE AUDIT FIRMThefollowingpersonswereofficersoftheCompanyduringtheyearandwerepreviouslypartnersofthecurrentauditfirm,KPMG,atatimewhenKPMGundertookanauditoftheCompany:

• AJClark(retiredfromauditfirmin1998);and

• PWHorton(retiredfromauditfirmin2001).

SHARE OPTIONSTherewerenooptionsissuedduringtheperiod.TherearenounissuedordinarysharesoftheCompanyunderoptionat30June2009.

Duringthefinancialyear,theManagingDirectorandcertainexecutivesexercisedoptionstoacquire733,500fullypaidordinarysharesintheCompanyataweightedaverageexercisepriceof$3.47pershare.RefertoNote29oftheFinancialReportforfurtherdetailsoftheoptions.

Nooptionshavebeenexercisedsincetheendoftheyear.

AUDITOR INDEPENDENCETheleadauditor’sindependencedeclarationissetoutonpage45andformspartofthedirectors’reportfortheyearended30June2009.

NON-AUDIT SERVICES PROVIDED by KPMGDuringtheyear,KPMG,theCompany’sauditor,hasperformedcertainotherservicesinadditiontotheirstatutoryduties.

TheBoardhasconsideredthenon-auditservicesprovidedduringtheyearbytheauditorandinaccordancewithwrittenadviceprovidedbyresolutionoftheAuditCommitteeissatisfiedthattheprovisionofthosenon-auditservicesduringtheyearbytheauditoriscompatiblewith,anddidnotcompromise,theauditorindependencerequirementsoftheCorporationsAct2001forthefollowingreasons:

• allnon-auditservicesweresubjecttothecorporategovernanceproceduresadoptedbytheCompanyandhavebeenreviewedbytheAuditCommitteetoensuretheydonotimpacttheintegrityandobjectivityoftheauditor;and

• thenon-auditservicesprovideddonotunderminethegeneralprinciplesrelatingtoauditorindependenceassetoutinAPES110Code of Ethics for Professional Accountants,astheydidnotinvolvereviewingorauditingtheauditor’sownwork,actinginamanagementordecision-makingcapacityfortheCompany,actingasanadvocatefortheCompanyorjointlysharingrisksandrewards.

Acopyoftheauditors’independencedeclarationasrequiredundersection307CoftheCorporationsAct2001hasbeenincludedinthisdirectors’report.

DetailsoftheamountspaidtotheauditoroftheCompany,KPMG,anditsrelatedpracticesforauditandnon-auditservicesprovidedduringtheyeararesetoutbelow:

The Group Company

2009 2008 2009 2008 $ $ $ $

Auditservices:AuditorsoftheCompany–KPMGAustralia Auditandreviewoffinancialreports 855,191 886,590 293,295 315,903 Otherassuranceservices 32,210 23,330 – –OverseasKPMGfirms Auditandreviewoffinancialreports 378,740 375,752 – –

1,266,141 1,285,672 293,295 315,903

Otherservices:AuditorsoftheCompany–KPMGAustralia Incometaxcompliance 156,492 147,169 111,539 95,555 Indirecttaxcomplianceadvice 108,129 40,571 20,262 14,325

264,621 187,740 131,801 109,880

OverseasKPMGfirms Internationalincometaxcompliance 100,502 125,296 – – Indirecttaxcomplianceadvice 13,572 33,826 – – Revenuecertificatescompliance 14,606 3,595 – – Othertaxationservices 132,176 103,530 – –

260,856 266,247 – –

525,477 453,987 131,801 109,880


ROUNDING OFFTheCompanyisofakindreferredtoinClassOrder98/100(asamendedbyClassOrder04/667)asissuedbyAustralianSecuritiesandInvestmentsCommission(“ASIC”).InaccordancewiththatClassOrder,amountsinthefinancialreportanddirectors’reporthavebeenroundedofftothenearestthousanddollars,unlessotherwisestated.

Signedinaccordancewitharesolutionofthedirectors:

AG Rydge Director

DC Seargeant Director

DatedatSydneythis20thdayofAugust2009.

REMUNERATION REPORT — AUDITEDThisreportoutlinestheremunerationarrangementsinplacefordirectorsandexecutivesoftheGroup.

REMUNERATION PHILOSOPHyTheNominationandRemunerationCommitteeisresponsibleformakingrecommendationstotheBoardonremunerationpoliciesandpackagesapplicabletotheBoardmembersandseniorexecutivesoftheGroup.Theobjectiveoftheremunerationpolicyistoensuretheremunerationpackageproperlyreflectstheperson’sdutiesandresponsibilities,andthatremunerationiscompetitiveinattracting,motivatingandretainingpeopleoftheappropriatequality.

Remunerationlevelsarecompetitivelysettoattractappropriatelyqualifiedandexperienceddirectorsandexecutives.TheNominationandRemunerationCommitteeobtainsindependentadviceonthelevelofremunerationpackages.TheremunerationpackagesoftheManagingDirectorandseniorexecutivesincludeanat-riskcomponentthatislinkedtotheoverallfinancialandoperationalperformanceoftheGroupandbasedontheachievementofspecificgoalsoftheGroup.ExecutivesparticipateintheCompany’sExecutivePerformanceSharePlan.ThelongtermbenefitsoftheExecutivePerformanceSharePlanareconditionalupontheCompanyachievingcertainperformancecriteria,detailsofwhichareoutlinedbelow.

TheCompanyalsohasthefollowingshareandoptionplans:

• TaxExemptSharePlan;

• ManagementOptionSharePlan(suspendedtonewissuesandnograntshavebeenmadeunderthisplansince2004);and

• EmployeeSharePlan(closedtonewmembersandnooffershavebeenmadeundertheplansince1998).

FurtherdetailsinrelationtothevariousshareplansandoptionplanareprovidedinNote29intheFinancialReport.

REMUNERATION STRUCTUREInaccordancewithbestpracticecorporategovernance,thestructureofnon-executivedirectorremunerationisseparateanddistinctfromseniorexecutiveremuneration.

NON-ExECUTIVE DIRECTOR REMUNERATIONobJeCtiveTheBoardseekstosetaggregateremunerationatalevelwhichprovidestheCompanywiththeabilitytoattractandretaindirectorsofthehighestcalibre,whilstincurringacostwhichisacceptabletoshareholders.

struCtureTheConstitutionandtheASXListingRulesspecifythattheaggregateremunerationofnon-executivedirectorsshallbedeterminedfromtimetotimebyageneralmeeting.Anamountnotexceedingtheamountdeterminedisthendividedbetweenthedirectorsasagreed.ThelatestdeterminationwasattheAnnualGeneralMeetingheldon30November2007whenshareholdersapprovedanaggregateremunerationof$1,100,000peryear.Non-executivedirectorsdonotreceiveanyperformancerelatedremunerationnoraretheyissuedoptions,sharesorperformanceshares.

Theamountofaggregateremunerationsoughttobeapprovedbyshareholdersandthemannerinwhichitisapportionedamongstdirectorsisreviewedannually.TheBoardconsidersadvicefromexternalconsultantsaswellasthefeespaidtonon-executivedirectorsofcomparablecompanieswhenundertakingtheannualreviewprocess.

EachdirectorreceivesafeeforbeingadirectoroftheCompany.AnadditionalfeeisalsopaidforbeingamemberoftheAuditCommitteeandtheNominationandRemunerationCommittee.Thepaymentofanadditionalfeerecognisestheadditionaltimecommitmentrequiredbydirectorswhoserveonthosecommittees.Directors’basefeesarepresently$98,000perannum(Chairman:$245,000perannuminclusiveofcommitteefees).Directors’feescoverallmainBoardactivities.Non-executivedirectormemberswhositonboththeAuditCommitteeandNominationandRemunerationCommitteereceiveanadditionalpaymentof$15,000perannum(ChairmanofboththeAuditCommitteeandNominationandRemunerationCommittee:$30,000perannum).

36


Theremunerationofnon-executivedirectorsfortheyearended30June2009isdetailedonpage40inthisreport.

TheCompanyalsohasaDirectors’RetirementPlan.TheDirectors’RetirementPlanwassuspendedinrespectofanynewdirectorappointments,on15May2003anddirectorsappointedtotheBoardafterthatdatearenotentitledtoparticipateintheDirectors’RetirementPlan.UndertheDirectors’RetirementPlan,directorswithmorethanthreeyearsservicereceivearetirementlumpsumbasedonthelengthofservice.TheDirectors’RetirementPlanbenefitsaccruedonamonthlybasisandreachthemaximumamountafter12yearsservice.Thebenefitiscappedtoamaximumlumpsumperdirectorof$165,000.TheDirectors’RetirementPlanhasbeenfullyaccruedsincetheyearended30June2007andtheCompanyhasnotincurredanyadditionalexpensesincethatdate.

TherewerenobenefitspaidundertheDirectors’RetirementPlanduringtheyearended30June2009.

TheamountsaccruedinrespectoftheDirectors’RetirementPlanareasfollows:

2009 2008 directors $ $

AJClark 165,000 165,000TCFord 165,000 165,000RMGraham 165,000 165,000

Total 495,000 495,000

ThemaximumbenefitamounthasbeenaccruedforeachparticipatingdirectorandnofurtherDirectors’RetirementPlanexpenseaccrualswilloccurinfutureyears.

MANAGING DIRECTOR AND ExECUTIVE REMUNERATIONobJeCtiveTheGroupaimstorewardtheManagingDirectorandexecutiveswithalevelandmixofremunerationcommensuratewiththeirpositionandresponsibilitieswithintheGroup,andsoasto:

• rewardexecutivesforGroup,businessunitandindividualperformanceagainsttargetssetbyreferencetoappropriatebenchmarksandkeyperformanceindicators(“KPIs”);

• aligntheinterestsofexecutiveswiththoseofshareholders;

• linkrewardwiththestrategicgoalsandperformanceoftheGroup;and

• ensuretotalremunerationiscompetitivebymarketstandards.

struCtureIndeterminingthelevelandmake-upofexecutiveremuneration,theNominationandRemunerationCommitteeobtainsindependentadviceontheappropriatenessofremunerationpackagesforexecutives,givenremunerationtrendsinothercompanies,fromwhichrecommendationsaremadetotheBoard.

ItistheNominationandRemunerationCommittee’spolicythatemploymentcontractsareenteredintowiththeManagingDirectorandotherexecutives.Detailsoftheseemploymentcontractsareprovidedonpage38.

Remunerationconsistsofbothfixedandvariableremunerationcomponents.ThevariableremunerationcomponentconsistsofaShortTermIncentivePlanandaLongTermIncentivePlan.

Theproportionoffixedremunerationandvariableremuneration(potentialshorttermandlongtermincentives)isestablishedforeachseniorexecutivebytheNominationandRemunerationCommittee.

FIxED ANNUAL REMUNERATIONobJeCtiveRemunerationlevelsforexecutivesarereviewedannuallytoensurethattheyareappropriatefortheresponsibility,qualificationsandexperienceofeachexecutiveandarecompetitivewiththemarket.

TheNominationandRemunerationCommitteeestablishesandissuesanappropriateguidelineforthepurposesoftheannualreviewoffixedremunerationlevels.TheguidelineisbasedonbothcurrentandforecastConsumerPriceIndexandmarketconditions.Therearenoguaranteedfixedremunerationincreasesinanyseniorexecutives’contracts.

struCtureExecutiveshavetheoptiontoreceivetheirfixedannualremunerationincashandalimitedrangeofprescribedfringebenefitssuchasmotorvehiclesandcarparking.Thetotalemploymentcostofanyremunerationpackage,includingfringebenefitstax,istakenintoaccountindetermininganemployee’sfixedannualremuneration.

Certainemployeeshavebeenrelocatedfromtheircountryoforigin.Insomecases,expatriateemployeesareentitledtothepaymentorreimbursementofrelocationcosts(atthecommencementandterminationofthecontract),annualreturnairfarestotheemployee’scountryoforiginandtheprovisionofassistancetocompletevarioustaxationreturnsandvisaapplications.

VARIAbLE REMUNERATION – SHORT TERM INCENTIVE (“STI”)

obJeCtiveTheobjectiveoftheSTIprogramistolinktheachievementoftheoperationaltargetswiththeremunerationreceivedbytheexecutiveschargedwithmeetingthosetargets.ThetotalpotentialSTIavailableissetatalevelsoastoprovidesufficientincentivetotheexecutivetoachievetheoperationaltargetsandsuchthatthecosttotheGroupisreasonableinthecircumstances.

struCtureActualSTIpaymentsgrantedtoeachexecutivedependontheextenttowhichspecificoperatingtargets,setatthebeginningoftheyear,aremet.TheoperationaltargetsconsistofanumberofKPIscoveringbothfinancialandnon-financialmeasuresofperformance.Typically,KPIsandassessmentcriteriainclude:

• meetingofpre-determinedgrowthinGroupearningsovertheprioryear;

• meetingofstrategicandoperationalobjectives;and

• assessedpersonaleffortandcontribution.

TheCompanyhaspre-determinedbenchmarkswhichmustbemetinordertotriggerpaymentsundertheSTI.Themeasureswerechosenastheydirectlyaligntheindividual’sSTIrewardtotheKPIsoftheGroupandtoitsstrategiesandperformance.


Onanannualbasis,afterconsiderationofperformanceagainstKPIs,anoverallperformanceratingfortheGroupandeachindividualbusinessunitisapprovedbytheNominationandRemunerationCommittee.Theindividualperformanceofeachexecutiveisalsoratedandallthreeratingsaretakenintoaccountwhendeterminingtheamount,ifany,oftheSTIpooltobeallocatedtoeachexecutive.

TheaggregateofannualSTIpaymentsavailableforexecutivesacrosstheGroupissubjecttotheapprovaloftheNominationandRemunerationCommittee.STIpaymentsaredeliveredasacashbonus.

FortheManagingDirectorandnamedexecutivesthegeneraltargetbonusopportunityrangeisfrom0%to100%oftheexecutives’fixedannualremuneration.ThetargetbonusrangefortheManagingDirectorandnamedexecutivesisdetailedbelow:

Allocated between

maximum sti calculated on group divisional department special Quantitative Qualitative executive fixed annual remuneration (a) earnings earnings costs projects kpis kpis

DCSeargeant 100% 45% – – 55% – –NCArundel 50% 162/3% 162/3% – – 162/3% –GCDean 40% 20% – – 5% – 15%MRDuff 40% 20% – – 5% – 15%HREberstaller 50% 162/3% 162/3% – – – 162/3%RDEntwistle(b) – – – – – – –PWHorton 35% 20% – – – – 15%KJKobishop 50% 162/3% – – 20% 88/9% 44/9%

(a) Fixedannualremunerationiscomprisedofbasesalary,superannuationandbenefitsprovidedthroughsalarysacrificingarrangements.(b) RDEntwistleceasedemploymentwiththeGroupon7February2009.

FurtherbonusesmaybepaidabovetheselevelsatthediscretionoftheNominationandRemunerationCommitteeandBoard,ifitisassessedthatanexceptionalcontributionhasbeenmadebyanexecutive.Thereisnoseparateprofit-shareplan.

VARIAbLE REMUNERATION – LONG TERM INCENTIVE (“LTI”)obJeCtiveTheExecutivePerformanceSharePlanwasapprovedbyshareholdersatthe2006AnnualGeneralMeeting.TheExecutivePerformanceSharePlanwasdesignedtolinkemployeerewardwithKPIsthatdrivesustainablegrowthinshareholdervalueoverthelongterm.TheobjectivesoftheLTIPlanareto:

• alignsenioremployees’incentiveswithshareholderinterests;

• balancetheshorttermwiththelongtermCompanyfocus;and

• retainhighcalibresenioremployeesbyprovidinganattractiveequity-basedincentivethatbuildsanownershipoftheCompanymindset.

OnlysenioremployeeswhoareabletodirectlyinfluencethelongtermsuccessoftheCompanyparticipateintheExecutivePerformanceSharePlan.

struCtureExecutivesareawardedperformanceshareswhichwillonlyvestontheachievementofcertainperformancehurdlesandserviceconditions.AnofferismadeundertheExecutivePerformanceSharePlantosenioremployeeseachfinancialyearandisbasedonindividualperformanceasassessedbytheannualappraisalprocess.Ifasenioremployeedoesnotsustainaconsistentlevelofhighperformance,theywillnotbenominatedforExecutivePerformanceSharePlanparticipation.TheNominationandRemunerationCommitteereviewsallnominatedsenioremployeeswithparticipationsubjecttofinalBoardapproval.InaccordancewiththeASXListingRules,approvalfromshareholdersisobtainedbeforeparticipationintheExecutivePerformanceSharePlancommencesfortheManagingDirector.

Eachawardofperformancesharesisdividedintoequalportions,witheachportionbeingsubjecttoadifferentperformancehurdle.Theperformancehurdlesarebasedonearningspershare(“EPS”)andtotalshareholderreturn(“TSR”)growthofAmalgamatedHoldingsLimitedasdeterminedbytheBoardoverathreeyearperiod(“PerformancePeriod”).TheextenttowhichtheperformancehurdleshavebeenmetwillbeassessedbytheBoardattheexpiryofthePerformancePeriod.

Theperformancehurdlesfortheawardsofperformancesharestoexecutivesinthefinancialyearended30June2009arebasedonAmalgamatedHoldingsLimited’sEPSandTSRgrowthoverthePerformancePeriodofthethreeyearsfrom30June2008(beingthe“BaseYear”)to30June2011.

Theperformancehurdlesareasfollows:

38


EPS HURDLETheEPShurdlerequiresthattheCompany’sEPSgrowthforthePerformancePeriodmustbegreaterthanthetargetsetbytheBoard.TheEPShurdlewaschosenasitprovidesevidenceoftheCompany’sgrowthinearnings.Thehurdleisasfollows:

• ifannualcompoundEPSgrowthoverthePerformancePeriodislessthan8%,noshareswillvestwiththeexecutive;

• ifannualcompoundEPSgrowthoverthePerformancePeriodisequalto8%butlessthan12%,theproportionofperformancesharesvestingwillbeincreasedonapro-ratabasisbetween50%and100%;or

• ifannualcompoundEPSgrowthoverthePerformancePeriodcomparedtotheBaseYearisequaltoorgreaterthan12%,alloftheperformancesharesawarded(andattachingtothishurdle)willvestwiththeexecutive.

IftheEPSmeasureisnotachievedwithintheinitialperformancemeasurementperiodtoathresholdlevelorhigher,therewillbenoentitlementtosharesforaparticipant.IftheEPSperformancemeasureisachievedtoathresholdlevelorhigherintheinitialperiod,itwillnotberetested.

TSR HURDLETheTSRhurdlerequiresthatthegrowthintheCompany’sTSRmustbeatorabovethemedianoftheCompany’scomparatorgroup(“comparatorgroup”).ThecomparatorgroupistheS&P/ASX200(excludingminingstocks).GrowthinTSRisdefinedassharepricegrowthanddividendspaidandreinvestedontheex-dividenddate(adjustedforrights,bonusissuesandanycapitalreconstructions)measuredfromthetimeofissuetothetimeofvesting.

TheTSRperformancehurdlewaschosenasitiswidelyrecognisedasoneofthebestindicatorsofshareholdervaluecreation.ThecomparatorgroupforTSRpurposeshasbeenchosenasitrepresentsthegroupwithwhichtheCompanycompetesforshareholders’capital.Thehurdleisasfollows:

• ifannualcompoundTSRgrowthoverthePerformancePeriodislessthanthe51stpercentile,noshareswillvestwiththeexecutive;

• ifannualcompoundTSRgrowthoverthePerformancePeriodisequaltoorexceedsthe51stpercentilebutislessthan75thpercentile,theproportionofperformancesharesvestingwillbeincreasedonapro-ratabasisbetween50%and100%;or

• ifannualcompoundTSRgrowthoverthePerformancePeriodisequaltoorgreaterthan75thpercentile,alloftheperformancesharesawarded(andattachingtothishurdle)willvestwiththeexecutive.

TheTSRcalculation,oncecompleted,isindependentlyreviewed.IftheTSRmeasureisnotachievedwithintheinitialperformancemeasurementperiodtoathresholdlevelorhigher,therewillbenoentitlementtosharesforaparticipant.IftheTSRperformancemeasureisachievedtoathresholdlevelorhigherintheinitialperiod,itwillnotberetested.

TheBoardhasretainedthediscretiontovarytheperformancehurdlesandcriteria.

OPTIONSPriorto17September2004,theCompanydeliveredLTIgrantstoexecutivesintheformofoptions.Thelastissueofoptionswasgrantedon16September2004.TheManagementShareOptionPlanhassincebeensuspendedandnofurthergrantshavebeenmadesince2004.

Thedetailsofoptionsgranted,thevalueofoptions,vestingperiodsandlapsedoptionsundertheLTIPlanareoutlinedonpage44.TherearenounissuedordinarysharesoftheCompanyunderoptionat30June2009.RefertoNote29oftheFinancialReportforfurtherdetailsoftheoptions.

PERFORMANCE INDICESInconsideringtheGroup’sperformanceandbenefitsforshareholders’wealth,theNominationandRemunerationCommitteehasregardtothefollowingindicesinrespectofthecurrentyearandthepreviousfouryears:

2009 2008 2007 2006 2005 $ $ $ $ $

Netprofitbeforeindividuallysignificantitems,minorityinterestandincometax 94,144,000 77,738,000 81,914,000 73,693,000 64,949,000Shareprice(yearend) 4.30 4.87 6.45 4.87 4.30

EMPLOyMENT CONTRACTSItistheGroup’spolicythatemploymentcontractsfortheManagingDirectorandeachseniorexecutive(withtheexceptionofKJKobishop)areunlimitedinterm.MrKobishop’semploymentcontractisforaperiodofthreeyears.

TheemploymentcontractstypicallyoutlinethecomponentsofremunerationpaidtotheManagingDirectorandexecutivesbutdonotprescribehowremunerationlevelsaretobemodifiedfromyeartoyear.Generally,remunerationlevelsarereviewedeachyeartotakeintoaccountConsumerPriceIndexchanges,andanychangeinthescopeoftheroleperformedbytheseniorexecutiveandanychangesrequiredtomeettheprinciplesoftheremunerationpolicy.


Terminationprovisionsintheemploymentcontractswiththenamedexecutivesaresummarisedinthetablebelow:

exeCutivestermination by exeCutive termination by Company

expiry date of ContraCt

DCSeargeant Thenoticeperiodisthreemonths.

ThenoticeperiodfortheCompanyisonemonth.Ontermination,theCompanymaymakeapaymentinlieuofnotice,equaltothenoticeperiod.

TheCompanyretainstherighttoterminatethecontractimmediatelyundercertainconditions.Ontermination,theexecutiveisentitledtoaccruedannualandlongservicebenefits.Therearenootherterminationpayments.

PaymentofanyLTIincentive(orpro-ratathereof)isatthediscretionoftheBoard.

Notapplicable,rollingcontracts.

NCArundelGCDeanMRDuffHREberstallerPWHorton

Thenoticeperiodisfourweeks.

KJKobishop Thenoticeperiodisthelesserof:

• 12months;or

• thebalanceofthetermoftheemploymentcontract.

ThenoticeperiodfortheCompanyisthelesserof:

• 12months;or

• thebalanceofthetermoftheemploymentcontract.

TheCompanyretainstherighttoterminatethecontractimmediatelyundercertainconditions.Ontermination,theexecutiveisentitledtoaccruedannualandreasonablerelocationassociatedcosts.Therearenootherterminationpayments.

PaymentofanyLTIincentive(orpro-ratathereof)isatthediscretionoftheBoard.

14September2011

KEy MANAGEMENT PERSONNELKeymanagementpersonnelhaveauthorityandresponsibilityforplanning,directingandcontrollingtheactivitiesoftheCompanyandtheGroup,includingdirectorsoftheCompanyandexecutives.

name position period of responsibility employing Company

DIRECTORS

AlanRydge Chairmanandnon-executivedirector 1July2008–30June2009 AmalgamatedHoldingsLimited

AnthonyClark Independentnon-executivedirector 1July2008–30June2009 AmalgamatedHoldingsLimited

PeterCoates Independentnon-executivedirector Appointed10July2009 AmalgamatedHoldingsLimited

ThomasFord Independentnon-executivedirector 1July2008–30June2009 AmalgamatedHoldingsLimited

RobertGraham Independentnon-executivedirector 1July2008–30June2009 AmalgamatedHoldingsLimited

MeredithHellicar Independentnon-executivedirector 1July2008–23April2009 AmalgamatedHoldingsLimited

RichardNewton Independentnon-executivedirector 1July2008–30June2009 AmalgamatedHoldingsLimited

EXECUTIVEDIRECTOR

DavidSeargeant ManagingDirectorandChiefExecutiveOfficer 1July2008–30June2009 AmalgamatedHoldingsLimited

EXECUTIVES

NormanArundel ManagingDirectorRydgesHotels&Resorts 1July2008–30June2009 RydgesHotelsLimited

GregoryDean CompanySecretary 1July2008–30June2009 AmalgamatedHoldingsLimited

MathewDuff DirectorCommercial 1July2008–30June2009 AmalgamatedHoldingsLimited

HansEberstaller ManagingDirectorAHLStrategicInvestments 1July2008–30June2009 TheGreaterUnionOrganisationPtyLimited

RossEntwistle ManagingDirectorAHLEntertainment 1July2008–7February2009 TheGreaterUnionOrganisationPtyLimited

PeterHorton DirectorFinance&Accounting 1July2008–30June2009 AmalgamatedHoldingsLimited

KevinKobishop CorporateDirectorofFoodandBeverage 15September2008–30June2009

AmalgamatedHoldingsLimited

40


DIRECTORS’ AND ExECUTIVES’ REMUNERATIONDetailsofthenatureandamountofeachmajorelementoftheremunerationofeachdirectoroftheCompanyandeachofthenamedexecutiveofficersoftheCompanyandtheGroupreceivingthehighestremunerationaresetoutbelow.InaccordancewiththerequirementsofAASB 124Related Party Disclosures,theremunerationtablesarecalculatedonanaccrualsbasisandonlyincluderemunerationrelatingtotheportionoftherelevantperiodsthateachindividualwasakeymanagementperson.

Post- Other employ- Share- long Short term ment based term Other

fixed annual superan- accrued retire- remun- accrued insurance nuation lti long ment proportion of eration sti non-cash annual premiums contri- equity service benefits remuneration and fees bonuses benefits leave (b) butions (a) leave (c) total performance $ $ $ $ $ $ $ $ $ $ related

direCtorsnon-exeCutiveAGRydge 2009 221,255 – – – – 13,745 – – – 235,000 – 2008 206,871 – – – – 13,129 – – – 220,000 –

AJClark 2009 108,810 – – – – 9,190 – – – 118,000 – 2008 101,835 – – – – 9,165 – – – 111,000 –TCFord 2009 90,000 – – – – – – – – 90,000 – 2008 77,982 – – – – 7,018 – – – 85,000 –

RMGraham 2009 104,000 – – – – – – – – 104,000 – 2008 98,000 – – – – – – – – 98,000 –

MHellicar(d) 2009 70,050 – – – – 4,950 – – – 75,000 – 2008 77,982 – – – – 7,018 – – – 85,000 –

RGNewton(e) 2009 82,569 – – – – 7,431 – – – 90,000 – 2008 25,994 – – – – 2,339 – – – 28,333 –

JAO’Neill(f) 2009 – – – – – – – – – – – 2008 22,039 – – – – 1,983 – – – 24,022 –

exeCutiveDCSeargeant 2009 1,141,255 1,732,500 – 168,303 10,561 13,745 486,462 314,407 – 3,867,233 57.4% 2008 1,036,871 975,000 – 10,648 10,032 13,129 283,320 37,432 – 2,366,432 53.2%


Post- Other employ- Share- long Short term ment based term Other

fixed superan- accrued term- annual non- accrued insurance nuation lti long ination proportion of remuneration sti cash annual premiums contri- equity service benefits remuneration and fees bonuses benefits leave (b) butions (a) leave (c) total performance $ $ $ $ $ $ $ $ $ $ related

exeCutives – the CompanyGCDean 2009 241,255 62,651 – 7,650 1,105 13,745 41,493 5,938 – 373,837 27.9% 2008 221,871 75,895 – (6,255) 617 13,129 21,981 8,682 – 335,920 29.1%

MRDuff 2009 383,255 56,550 – 7,092 2,210 13,745 67,045 7,370 – 537,267 23.0% 2008 363,871 124,950 – 7,799 857 13,129 36,136 11,107 – 557,849 28.9%

PWHorton 2009 354,338 81,620 – (2) 2,210 13,745 66,072 2,489 – 520,472 28.4% 2008 357,871 124,950 – 881 4,838 13,129 35,970 8,205 – 545,844 29.5%

KJKobishop(g) 2009 334,872 – 19,286 15,028 697 – 55,888 – – 425,771 13.1% 2008 – – – – – – – – – – –

exeCutives – the groupNCArundel 2009 391,255 96,289 – 1,325 884 13,745 54,814 8,332 – 566,644 26.7% 2008 371,871 14,583 – 14,324 740 13,129 23,226 10,885 – 448,758 8.4%

HREberstaller 2009 154,568 51,995 – 34,068 1,105 11,432 22,292 4,091 – 279,551 26.6% 2008 143,119 182,502 – (2,474) 925 12,881 14,827 4,446 – 356,226 55.4%

RDEntwistle(h) 2009 338,757 59,952 – 4,645 537 8,869 42,499 (15,375) 123,750 563,634 18.2% 2008 466,871 57,011 – 16,638 407 13,129 46,909 15,375 – 616,340 16.9%

(a) AmountsdisclosedaboveforremunerationrelatingtoperformanceshareshavebeendeterminedinaccordancewiththerequirementsofaccountingstandardAASB2Share-based Payment.AASB2requiresthemeasurementofthefairvalueofperformancesharesatthegrantdateandthentohavethatvalueapportionedinequalamountsovertheperiodfromgrantdatetovestingdate.AvaluehasbeenplacedontheperformancesharesusingaMonteCarlosimulationmodel.DetailsofperformancesharesonissuearesetoutwithintheRemunerationReportandfurtherdetailsonthetermsandconditionsoftheseperformancesharesaresetoutinNote29totheFinancialReport.

(b) AmountsdisclosedforremunerationofdirectorsandnamedexecutivesexcludeinsurancepremiumspaidbytheGroupinrespectofdirectors’andofficers’liabilityinsurancecontractsasthecontractsdonotspecifypremiumspaidinrespectofindividualdirectorsandofficers.Informationrelatingtotheinsurancecontractsissetoutwithinthisreport.TheamountsdisclosedinthetableaboverelatetopremiumspaidbytheCompanyforgroupsalarycontinuanceinsurance.

(c) TherewerenoamountsaccruedduringtheyearrelatingtotheDirectors’RetirementPlan.FurtherinformationregardingtheDirectors’RetirementPlanhasbeenincludedwithintheRemunerationReport.

(d) MHellicarresigned23April2009.(e) RGNewtonwasappointedon29February2008.(f) JAO’Neillresigned11October2007.(g) KJKobishopcommencedemploymentwiththeGroupon15September2008.KJKobishopisacitizenoftheUnitedStatesofAmericaandisa457visaholder,andhisemployment

arrangementshavesatisfiedcertainexemptionconditionsassetoutbytheAustralianTaxationOffice.Asaresult,theCompanydoesnothaveanysuperannuationobligationsinrelationtotheemploymentofKJKobishop.

(h) RDEntwistleceasedemploymentwiththeGroupon7February2009.

42


ANALySIS OF STI bONUSES INCLUDED IN REMUNERATIONThebonustablebelowiscalculatedonanaccrualsbasisandonlyincludesremunerationrelatingtotheportionoftherelevantperiodsthateachindividualwasakeymanagementperson.DetailsofthevestingprofileoftheSTIbonusesawardedasremunerationtotheManagingDirectorandeachofthenamedexecutiveofficersoftheCompanyandtheGrouparedetailedbelow:

included in remuneration (a) awarded in year not awarded in year (b) $ % %

managing direCtorDCSeargeant(c) 1,732,500 55% 45%

exeCutivesNCArundel 96,289 50% 50%GCDean 62,651 67% 33%MRDuff 56,550 37% 63%HREberstaller 51,995 67% 33%RDEntwistle(d) 59,952 25% 75%PWHorton 81,620 55% 45%KJKobishop(e) – –% –%

(a) Amountsincludedinremunerationfortheyearrepresenttheamountsthatwereawardedintheyearbasedonachievementofpersonalgoalsandsatisfactionofspecifiedperformancecriteriaforthe2008year.Noamountsvestinfutureyearsinrespectoftheshorttermincentivebonusschemesforthe2009year.

(b) Theamountsnotawardedareduetotheperformancecriterianotbeingmetinrelationtotheassessmentperiod.(c) TheSTIbonusincludesatotalof$1,155,000awardedasadditionalbonuspaymentsforexceptionalperformancerecognisedduringtheyear.(d) RDEntwistleceasedemploymentwiththeGroupon7February2009.(e) KJKobishopcommencedemploymentwiththeGroupon15September2008.


ANALySIS OF LTI PERFORMANCE SHARES GRANTED AS REMUNERATIONVestingprofileoftheperformancesharesgrantedasremunerationtotheManagingDirectorandnamedexecutivesaredetailedbelow:

Fair value

vested forfeited year in during during which performance performance the year the year (a) the grant share – eps share – tsr number grant date % % vests $ $

managing direCtorDCSeargeant 140,000 23Feb2009 – – 30Jun2012 4.34 3.80 100,000 18Feb2008 – – 30Jun2011 6.02 4.31 100,000 19Feb2007 – – 30Jun2010 6.39 4.63

exeCutivesNCArundel 23,491 23Feb2009 – – 30Jun2012 4.34 3.80 14,739 18Feb2008 – – 30Jun2011 6.02 4.31 5,972 19Feb2007 – – 30Jun2010 6.39 4.63

GCDean 14,791 23Feb2009 – – 30Jun2012 4.34 3.80 8,996 18Feb2008 – – 30Jun2011 6.02 4.31 7,337 19Feb2007 – – 30Jun2010 6.39 4.63

MRDuff 23,027 23Feb2009 – – 30Jun2012 4.34 3.80 14,433 18Feb2008 – – 30Jun2011 6.02 4.31 12,183 19Feb2007 – – 30Jun2010 6.39 4.63

HREberstaller – 23Feb2009 – – – – – 5,972 18Feb2008 – – 30Jun2011 6.02 4.31 4,982 19Feb2007 – – 30Jun2010 6.39 4.63

RDEntwistle(b) 18,376 18Feb2008 – 100% 30Jun2011 6.02 4.31 15,938 19Feb2007 – 100% 30Jun2010 6.39 4.63

PWHorton 22,099 23Feb2009 – – 30Jun2012 4.34 3.80 14,203 18Feb2008 – – 30Jun2011 6.02 4.31 12,183 19Feb2007 – – 30Jun2010 6.39 4.63

KJKobishop(c) 100,000 23Feb2009 – – 30Jun2012 4.34 3.80

(a) The%forfeitedintheyearrepresentsthereductionfromthemaximumnumberofperformancesharesavailabletovestduetotheperformancecriterianotbeingachieved.(b) RDEntwistleceasedemploymentwiththeGroupon7February2009.MrEntwistle’sperformanceshareshavebeenforfeitedinaccordancewiththeserviceprovisions.(c) KJKobishopcommencedemploymentwiththeGroupon15September2008.

44

ANALySIS OF MOVEMENTS IN PERFORMANCE SHARESThemovementduringtheyearbyvalue,ofperformancesharesintheCompanyheldbytheManagingDirectorandeachofthenamedexecutivesisdetailedbelow:

granted during exercised during forfeited during performance amount paid the year (a) the year (b) the year shares exercised per share $ $ $ number $

MANAGINGDIRECTORDCSeargeant 569,800 – – – –

EXECUTIVESNCArundel 95,609 – – – –GCDean 60,200 – – – –MRDuff 93,720 – – – –HREberstaller – – – – –RDEntwistle – – 182,730 – –PWHorton 89,943 – – – –KJKobishop 407,000 – – – –

(a) ThevalueofperformancesharesgrantedintheyearisthefairvalueoftheperformancesharescalculatedatgrantdateusingaMonteCarlosimulationmodel.Thetotalvalueoftheperformancesharesgrantedisincludedinthetableabove.Thisamountisallocatedtoremunerationoverthevestingperiod.

(b) ThevalueofperformancesharesexercisedduringtheyeariscalculatedasthemarketpriceofsharesoftheCompanyontheASXasatcloseoftradingonthedatethattheperformanceshareswereexercised.

Therewerenoperformancesharesgrantedsincetheendoftheyear.

ANALySIS OF LTI OPTIONS GRANTED AS REMUNERATIONNooptionsgrantedasremunerationtotheManagingDirectorandnamedexecutivesvestedduringtheyear.Alloutstandingoptionsvestedinpreviousfinancialyears.Therearenooptionsyettovestasat30June2009.

ANALySIS OF MOVEMENTS IN OPTIONSThemovementduringtheyearbyvalue,ofoptionsoverordinarysharesintheCompanyheldbytheManagingDirectorandeachofthenamedexecutivesisdetailedbelow:

granted during exercised during forfeited during options average amount the year (a) the year (b) the year exercised paid per share $ $ $ number $

MANAGINGDIRECTORDCSeargeant – 632,500 – 500,000 3.535

EXECUTIVESNCArundel – – – – –GCDean – 49,800 – 30,000 3.140MRDuff – – – – –HREberstaller – – – – –RDEntwistle – – – – –PWHorton – 74,250 – 45,000 3.350KJKobishop – – – – –

(a) Thevalueofoptionsgrantedintheyearisthefairvalueoftheoptionscalculatedatgrantdateusingabinomialoptionpricingmodel.Thetotalvalueoftheoptionsgrantedisincludedinthetableabove.Thisamountisallocatedtoremunerationoverthevestingperiod.

(b) ThevalueofoptionsexercisedduringtheyeariscalculatedasthemarketpriceofsharesoftheCompanyontheASXasatcloseoftradingonthedatethattheoptionswereexercisedafterdeductingthepricepaidtoexercisetheoption.

Therewerenoamountsunpaidonthesharesissuedasaresultoftheexerciseofoptions.Nooptionshavebeengrantedsince16September2004.Therewerenooptionsgrantedsincetheendoftheyear.



Lead Auditor’s Independence Declaration under seCtion 307C of the Corporations aCt 2001

To: thedirectorsofAmalgamatedHoldingsLimited

Ideclarethat,tothebestofmyknowledgeandbelief,inrelationtotheauditforthefinancialyearended30June2009therehavebeen:

(i) nocontraventionsoftheauditorindependencerequirementsassetoutintheCorporationsAct2001inrelationtotheaudit;and

(ii) nocontraventionsofanyapplicablecodeofprofessionalconductinrelationtotheaudit.

KPMG

David Rogers Partner

20August2009

46

The Group Company

2009 2008 2009 2008 note $’000 $’000 $’000 $’000

Revenuefromsaleofgoods 3 194,244 161,581 – –Revenuefromrenderingofservices 3 475,616 409,287 – –Financerevenue 3 1,440 3,354 6,470 27,896Rentalrevenue 3 21,993 22,268 – –Dividends 3 453 455 53,435 45,409Managementandotherfees 3 17,667 19,697 11,299 9,631Sundryrevenue 3 646 891 49 144Otherincome 3 252 1,495 – –

Advertising,commissionsandmarketingexpenses (18,666) (18,706) – –Depreciationandamortisation 4(a) (30,632) (28,618) (96) (104)Employeeexpenses 4(a) (166,997) (150,484) (10,198) (8,330)Filmhireandotherfilmexpenses (147,139) (119,364) – –Financecosts–interestandborrowingexpenses 4(a) (5,112) (5,353) (2) (18,495)Occupancyexpenses (186,080) (160,236) – –Impairmentofassets 4(a) (5,811) (1,156) – –Fairvaluedecrementoninvestmentproperties 18 (1,030) (1,400) – –Purchasesandotherdirectexpenses (68,696) (51,198) – –Otherexpenses (35,783) (38,032) (1,480) (3,125)Shareofnetprofitaccountedforusingtheequitymethod: Associates 35 11,196 14,871 – – Jointlycontrolledentities 36 30,993 24,559 – –

Profit before tax from continuing operations 4 88,554 83,911 59,477 53,026Incometaxexpense 7 (22,932) (20,754) (981) (104)

Profit after tax from continuing operations 65,622 63,157 58,496 52,922

Discontinued operations Profit/(loss)aftertaxfromdiscontinuedoperations 5 3,855 36,358 1,466 (10,900)

Profit 69,477 99,515 59,962 42,022

Attributable to:MembersoftheCompany 69,483 99,369 59,962 42,022

Minorityinterest (6) 146 – –

Profit 69,477 99,515 59,962 42,022

2009 2008 Cents Cents

Earnings per share for profit attributable to members of the Company (cents per share)Basicfromcontinuingoperations 50.5 49.0Basicfromdiscontinuedoperations 3.0 28.3Basicfortheyear–total 53.5 77.3Dilutedfromcontinuingoperations 50.5 48.9Dilutedfromdiscontinuedoperations 3.0 28.2Dilutedfortheyear–total 53.5 77.1

TheIncomeStatementsaretobereadinconjunctionwiththenotestothefinancialstatementsonpages50to107.

Income Statementsfor the year ended 30 June 2009


balance Sheetsas at 30 June 2009

The Group Company

2009 2008 2009 2008 note $’000 $’000 $’000 $’000

assetsCURRENTASSETSCashandcashequivalents 10 23,227 28,472 1,186 176Receivables 11 38,370 34,354 23 357Inventories 12 13,776 11,940 – –Other 13 4,974 4,672 168 68

Total current assets 80,347 79,438 1,377 601

NON-CURRENTASSETSReceivables 11 516 653 188,719 192,074Otherfinancialassets 14 312 502 37,189 38,689Available-for-salefinancialassets 15 9,362 10,610 9,362 10,610Investmentsaccountedforusingtheequitymethod 16 117,750 118,678 – –Property,plantandequipment 17 561,751 482,757 77 94Investmentproperties 18 29,600 28,500 – –Goodwillandotherintangibleassets 19 14,856 14,849 38 57Deferredtaxassets 7(c) 14,726 9,670 – –Other 20 9,258 6,877 – –

Total non-current assets 758,131 673,096 235,385 241,524

Total assets 838,478 752,534 236,762 242,125

liabilitiesCURRENTLIABILITIESPayables 21 77,316 67,895 1,165 766Interestbearingliabilitiesandborrowings 22 6,714 12,196 – –Currenttaxliabilities 7(b) 11,906 25,352 9,635 24,416Provisions 24 12,689 12,250 2,262 1,581Deferredrevenue 1(t) 30,201 26,032 – –Other 25 8,473 13 – –

Total current liabilities 147,299 143,738 13,062 26,763

NON-CURRENTLIABILITIESPayables 21 2 2 – –Interestbearingliabilitiesandborrowings 22 73,252 24,892 – 14,153Deferredtaxliabilities 7(c) 5,919 7,562 179 1,997Provisions 24 9,578 9,258 175 170Deferredrevenue 1(t) 2,503 2,041 – –Other 25 840 – – –

Total non-current liabilities 92,094 43,755 354 16,320

Total liabilities 239,393 187,493 13,416 43,083

Net assets 599,085 565,041 223,346 199,042

eQuitySharecapital 26 101,353 98,809 101,353 98,809Reserves 27 6,167 5,177 11,179 10,483Retainedearnings 27 491,475 460,832 110,814 89,750

Total equity attributable to members of the Parent Entity 598,995 564,818 223,346 199,042Minorityinterest 90 223 – –

Total equity 599,085 565,041 223,346 199,042

TheBalanceSheetsaretobereadinconjunctionwiththenotestothefinancialstatementssetoutonpages50to107.

48

The Group Company

2009 2008 2009 2008 note $’000 $’000 $’000 $’000

Total equity at the beginning of the financial year 565,041 507,559 199,042 193,093

Changeinfairvalueofavailable-for-salefinancialassets,netoftax 27 (873) (2,157) (873) (2,157)Changeinthefairvalueofcashflowhedges,netoftax 27 (1,853) (1,208) – –Shareofincrement/(decrement)onforeigncurrencytranslationreserveofassociates’netassets 27 2,228 (1,788) – –Transferonclassificationofpropertytoinvestmentproperties 27 267 – – –Exchangedifferencesontranslationofforeignoperations,netoftax 27 (290) (2,916) – –Netpresentvalueadjustmentofemployeeshareloans 27 35 6 35 6Employeeshare-basedpaymentsexpense,netoftax 27 1,367 1,487 679 1,053

Net income/(expense) recognised directly in equity 881 (6,576) (159) (1,098)

Profit for the year 69,477 99,515 59,962 42,022

Total recognised income for the year 70,358 92,939 59,803 40,924

Employeeshare-basedpaymentsexpense–relatedentityemployees 27 166 76 855 509

Dividendspaidtominorityinterestinsubsidiaries (126) (49) – –

Transactionswithequityholdersintheircapacityasequityholders: SharesissuedundertheManagementShareOptionsPlan 26 2,544 1,779 2,544 1,779Dividendspaid 8 (38,898) (37,263) (38,898) (37,263)

(36,354) (35,484) (36,354) (35,484)

Total equity at the end of the financial year 599,085 565,041 223,346 199,042

Attributable to:MembersoftheCompany 598,995 564,818 223,346 199,042Minorityinterest 90 223 – –

599,085 565,041 223,346 199,042

TheStatementsofChangesinEquityaretobereadinconjunctionwiththenotestothefinancialstatementsonpages50to107.

Statements of Changes in Equityfor the year ended 30 June 2009


Statements of Cash Flowsfor the year ended 30 June 2009

The Group Company

2009 2008 2009 2008 note $’000 $’000 $’000 $’000

Cash floWs from operating aCtivitiesCashreceiptsinthecourseofoperations 720,628 622,953 – –Cashpaymentsinthecourseofoperations (662,299) (590,171) (9,092) (9,548)

Cashgenerated/(used)fromoperations 58,329 32,782 (9,092) (9,548)Dividendsreceived 453 455 428 1,402Interestreceived 1,455 3,487 – –Distributionsfromassociatesandjointlycontrolledentities 43,940 47,430 – –Otherrevenue 40,556 43,107 299 394Financecostspaid (4,876) (4,164) – –Incometaxrefunds 666 – 655 –Incometaxespaid (38,532) (20,095) (36,653) (18,851)

Net cash provided/(used) by operating activities 39 101,991 103,002 (44,363) (26,603)

Cash floWs from investing aCtivitiesProceedsfromdisposalofinvestments 1,500 95,000 1,500 –Proceedsfromdisposalofnon-currentassets 79 53 – –Paymentsforproperty,plantandequipment (113,968) (35,308) (60) (49)Paymentsforincreaseininvestmentsinassociatesandjointlycontrolledentities (196) (157) – –Decrease/(increase)inloanstootherentities 117 (666) – –Decreaseinloansfromotherentities (1,598) – – –Decreaseinloanstoassociatesandjointlycontrolledentities 1,692 725 – –Purchaseofmanagementrights (615) – – –

Net cash provided/(used) by investing activities (112,989) 59,647 1,440 (49)

Cash floWs from finanCing aCtivitiesProceedsfromborrowings 90,251 108,334 – –Repaymentofborrowings (48,345) (229,290) – –Dividendspaid (38,898) (37,263) (38,898) (37,263)Dividendspaidtominorityinterestinsubsidiaries (126) (49) – –Proceedsfromtheexerciseofemployeeshareoptions 2,544 1,779 2,544 1,779Decreaseinintercompanyreceivables – – 80,287 62,126

Net cash (used)/provided by financing activities 5,426 (156,489) 43,933 26,642

Net(decrease)/increaseincashandcashequivalents (5,572) 6,160 1,010 (10)Cashandcashequivalentsatthebeginningoftheyear 28,472 21,800 176 186Effectofexchangeratefluctuationsoncashheld 327 512 – –

Cash and cash equivalents at the end of the year 10 23,227 28,472 1,186 176

TheStatementsofCashFlowsaretobereadinconjunctionwiththenotestothefinancialstatementssetoutonpages50to107.

50

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIESAmalgamatedHoldingsLimited(“Company”)isacompanydomiciledinAustralia.TheconsolidatedfinancialreportoftheCompanyfortheyearended30June2009comprisestheCompanyanditssubsidiaries(collectivelyreferredtoasthe“Group”)andtheGroup’sinterestinassociatesandjointlycontrolledentities.

AmalgamatedHoldingsLimitedisacompanyincorporatedinAustraliaandlimitedbyshares.ThesharesarepubliclytradedontheASX.ThenatureoftheoperationsandprincipalactivitiesoftheGrouparedescribedinNote2.

ThefinancialreportwasauthorisedbytheBoardofAmalgamatedHoldingsLimitedforissuanceon20August2009.

(a) statement of ComplianCeThefinancialreportisageneralpurposefinancialreportwhichhasbeenpreparedinaccordancewithAustralianAccountingStandards(“AASBs”)(includingAustralianAccountingInterpretations)adoptedbytheAustralianAccountingStandardsBoardandtheCorporationsAct2001.

ThefinancialreportalsocomplieswithInternationalFinancialReportingStandardsandinterpretationsadoptedbytheInternationalAccountingStandardsBoard.

(b) basis of preparationThefinancialreportispresentedinAustraliandollarsandthefunctionalcurrencyoftheGroupisAustraliandollars.

Thefinancialreportispreparedonthehistoricalcostbasisexceptthatthefollowingassetsandliabilitiesarestatedattheirfairvalue:derivativefinancialinstruments,financialinstrumentsclassifiedasavailable-for-sale,share-basedpaymentsandinvestmentproperties.

Assetsheldforsalearestatedatthelowerofcarryingamount,andfairvaluelesscoststosell.

ThepreparationofafinancialreportinconformitywithAASBsrequiresmanagementtomakejudgements,estimatesandassumptionsthataffecttheapplicationofpoliciesandreportedamountsofassets,liabilitiesandincomeandexpenses.Theestimatesandassociatedassumptionsarebasedonhistoricalexperienceandvariousotherfactorsthatarebelievedtobereasonableunderthecircumstances,theresultsofwhich

formthebasisofmakingthejudgementsaboutcarryingvaluesofassetsandliabilitiesthatarenotreadilyapparentfromothersources.Actualresultsmaydifferfromtheseestimates.

Theestimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisediftherevisionaffectsonlythatperiod,orintheperiodoftherevisionandfutureperiodsiftherevisionaffectsbothcurrentandfutureperiods.

JudgementsmadebymanagementintheapplicationofAASBsthathaveasignificanteffectonthefinancialreportandestimateswithasignificantriskofmaterialadjustmentinthenextyeararediscussedinNote1(z).

Theaccountingpoliciessetoutbelowhavebeenappliedconsistentlytoallperiodspresentedinthesefinancialstatements.

TheaccountingpolicieshavebeenappliedconsistentlybyallentitiesintheGroup.

TheCompanyisofakindreferredtoinASICClassOrder98/100dated10July1998(updatedbyClassOrder05/641effective28July2005andClassOrder06/51effective31January2006)andinaccordancewiththeClassOrder,amountsinthefinancialreportanddirectors’reporthavebeenroundedofftothenearestthousanddollars,unlessotherwisestated.

TheCompanyandGrouphaveelectedtoearlyadoptthefollowingaccountingstandardamendment:

• RevisedAASB123Borrowing Costsremovestheoptiontoexpenseborrowingcostsandrequiresthatanentitycapitaliseborrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofaqualifyingassetaspartofthecostofthatasset.

Certaincomparativeamountshavebeenreclassifiedtoconformwiththecurrentyear’spresentation.Inaddition,thecomparativeincomestatementhasbeenrepresentedasifanoperationdiscontinuedduringthecurrentperiodhadbeendiscontinuedfromthestartofthecomparativeperiod(seeNote5).

Thefollowingstandards,amendmentstostandardsandinterpretationshavebeenidentifiedasthosewhichmayimpacttheGroupintheperiodofinitialapplication.Theywereavailableforearlyadoptionat30June2009,buthavenotbeenappliedbytheGroupinpreparingthesefinancialstatements:

• AASB8Operating Segments(“AASB8”)whichwillbecomemandatoryfortheGroup’s30June2010financialstatements,requiresthepresentationofsegmentinformationtobebasedonbusinessunitdissectionsregularlyusedbymanagementinassessingtheperformanceofeachsegment.TheGroupcurrentlypresentssegmentinformationinrespectofitsbusinessandgeographicalsegments.Itisanticipatedthat,onadoptionofthisnewstandardAASB8,theGroupwillpresentadditionalgeographicdissectionofbusinessunitscurrentlyundertheCinemaExhibitionInternationalsegment;

• RevisedAASB101Presentation of Financial Statements(“AASB101”)introducesasafinancialstatement(formerly“primary”statement)the“statementofcomprehensiveincome”.Therevisedstandarddoesnotchangetherecognition,measurementordisclosureoftransactionsandeventsthatarerequiredbyotherAASBs.TherevisedAASB101willbecomemandatoryfortheGroup’s30June2010financialstatements.TherevisedAASB101willimpacttheformatandpresentationofstatementswithinthefinancialreport;

• RevisedAASB3Business Combinations(“AASB3”)changestheapplicationofacquisitionaccountingforbusinesscombinationsandtheaccountingfornon-controlling(minority)interests.Thedefinitionofabusinesshasbeenbroadenedandislikelytoresultinmoreacquisitionsbeingtreatedasbusinesscombinations.Transactioncostsrelatingtoabusinesscombinationwillbeexpensedasincurred.Contingentconsiderationwillbemeasuredatfairvalue,withsubsequentchangesthereinrecognisedintheIncomeStatement.RevisedAASB127Consolidated and Separate Financial Statements(“AASB127”)changestheaccountingforinvestmentsinsubsidiarieswherethereisachangeinownershipinterestsbytheGroup.TherevisedAASB3andAASB127willbecomemandatoryfortheGroup’s30June2010financialstatements.ItisnotexpectedthattheadoptionoftheserevisedstandardswouldhaveamaterialimpactontheGroup’sfinancialreportintheperiodofinitialapplication;

Notes to the Financial Statementsfor the year ended 30 June 2009


NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES CONTINUED(b) basis of preparation

(Continued)• AASB2008-1Amendments to Australian

Accounting Standard – Share-based Payments: Vesting Conditions and Cancellationschangesthemeasurementofshare-basedpaymentsthatcontainnon-vestingconditions.AASB2008-1becomesmandatoryfortheGroup’s30June2010financialreport.ItispresentlyconsideredthattheseamendmentswillnothaveamaterialeffectontheGroup’sfuturefinancialreports;

• AASB2008-5 Amendments to Australian Accounting Standards arising from the Annual Improvement Process – AASB 140 Investment Property–AmendmentsmadetoAASB140relatetopropertyunderconstructionordevelopmentforfutureuseasaninvestmentproperty.Amendmentsrequirethat,wherethefairvalueoptionhasbeentakentomeasureinvestmentproperty,aninvestmentpropertyunderconstructionordevelopmentshouldalsobemeasuredatfairvalue(unlessafairvaluecannotbereliablydetermined),withchangesinfairvaluebeingrecognisedintheIncomeStatement.TheseamendmentsaretobeappliedprospectivelyandwillfirstapplytotheGroup’s30June2010financialreports.Theseamendmentswillchangethetimingoftherecognitionofanyfairvalueadjustmentsinrespectofinvestmentpropertiesunderdevelopment;and

• Improvement to International Financial Reporting Standards 2009incorporatesanumberofamendmentstoAccountingStandards.OneamendmentthatmayimpactontheGroupisasfollows:

— IAS 17 Leases(“IAS17”).UndertheamendmenttoIAS17,alongtermlandleasemayhavetobeclassifiedasafinancelease,eveniftitletothelandisnotgoingtopasstothelesseeattheendofthelease.ThischangewillimpactontheaccountingtreatmentforcertainleasedpropertieswithintheGroup.TheimpactofthisamendmentontheGroup’sfuturefinancialreports,hasnotyetbeendetermined.

(c) basis of ConsolidationTheconsolidatedfinancialstatementscomprisethefinancialstatementsoftheCompanyandGroupasat30Juneeachyearend.

(i) SUBSIDIARIESSubsidiariesareentitiescontrolledbytheCompany.ControlexistswhentheCompanyhasthepower,directlyorindirectly,togovernthefinancialandoperatingpoliciesofanentitysoastoobtainbenefitsfromitsactivities.Inassessingcontrol,potentialvotingrightsthatarepresentlyexercisableorconvertiblearetakenintoaccount.Thefinancialstatementsofsubsidiariesareincludedintheconsolidatedfinancialstatementsfromthedatethatcontrolcommencesuntilthedatethatcontrolceases.

Investmentsinsubsidiariesarecarriedattheircostofacquisition,lessanyimpairmentlossesrecognised,intheCompany’sfinancialstatements.

(ii) ASSOCIATESANDJOINTLYCONTROLLEDENTITIES(EQUITYACCOUNTEDINVESTEES)

AssociatesarethoseentitiesforwhichtheGrouphassignificantinfluence,butnotcontrol,overthefinancialandoperatingpolicies.SignificantinfluenceispresumedtoexistwhentheGroupholdsbetween20%and50%ofthevotingpowerofanotherentity.JointlycontrolledentitiesarethoseentitiesoverwhoseactivitiestheGrouphasjointcontrol,establishedbycontractualagreementandrequiringunanimousconsentforstrategicfinancialandoperatingdecisions.TheconsolidatedfinancialstatementsincludetheGroup’sshareofthetotalrecognisedgainsandlossesofassociatesandjointlycontrolledentitiesonanequityaccountedbasis,fromthedatethatsignificantinfluencecommencesorjointcontrolcommencesuntilthedatethatsignificantinfluenceorjointcontrolceases.TheGroup’sshareofmovementsinreservesisrecogniseddirectlyinconsolidatedreserves.WhentheGroup’sshareoflossesexceedsitsinterestinanequityaccountedinvestee,theGroup’scarryingamountisreducedtonilandrecognitionoffurtherlossesisdiscontinuedexcepttotheextentthattheGrouphasincurredlegalorconstructiveobligationstomakepaymentsonbehalfoftheinvestee.

IntheCompany’sfinancialstatements,investmentsinassociatesareinitiallyrecognisedatcost,beingthefairvalueoftheconsiderationgivenandincludingacquisitionchargesassociatedwiththeinvestment.Wherenecessary,thecostisadjustedforanysubsequentimpairment.

TheGroup’sshareofjointlycontrolledentities’netprofitorlossisrecognisedintheconsolidatedIncomeStatementfromthedatejointcontrolcommenceduntilthedatejointcontrolceases.TheGroup’sshareofmovementsinreservesisrecogniseddirectlyinconsolidatedreserves.

(iii) TRANSACTIONSELIMINATEDONCONSOLIDATION

Intragroupbalances,andanyunrealisedgainsandlossesorincomeandexpensesarisingfromintragrouptransactions,areeliminatedinpreparingtheconsolidatedfinancialstatements.

UnrealisedgainsarisingfromtransactionswithassociatesandjointlycontrolledentitiesareeliminatedtotheextentoftheGroup’sinterestintheentity.

Unrealisedlossesareeliminatedinthesamewayasunrealisedgains,butonlytotheextentthatthereisnoevidenceofimpairment.

Gainsandlossesarerecognisedasthecontributedassetsareconsumedorsoldbytheassociatesorjointlycontrolledentitiesor,ifnotconsumedorsoldbytheassociateorjointlycontrolledentity,whentheGroup’sinterestinsuchentitiesissold.

(d) foreign CurrenCy(i) FOREIGNCURRENCYTRANSACTIONSTransactionsinforeigncurrenciesaretranslatedattheforeignexchangeraterulingatthedateofthetransaction.MonetaryassetsandliabilitiesdenominatedinforeigncurrenciesatthebalancesheetdatearetranslatedtoAustraliandollarsattheforeignexchangeraterulingatthatdate.ForeignexchangedifferencesarisingontranslationarerecognisedintheIncomeStatement.Non-monetaryassetsandliabilitiesthataremeasuredintermsofhistoricalcostinaforeigncurrencyaretranslatedusingtheexchangerateatthedateofthetransaction.Non-monetaryassetsandliabilitiesdenominatedinforeigncurrenciesthatarestatedatfairvaluearetranslatedtoAustraliandollarsatforeignexchangeratesrulingatthedatesthefairvaluewasdetermined.

52

Notes to the Financial Statements continued

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES CONTINUED(d) foreign CurrenCy (Continued)(ii) FINANCIALSTATEMENTSOFFOREIGN

OPERATIONSTheassetsandliabilitiesofforeignoperations,includinggoodwillandfairvalueadjustmentsarisingonconsolidation,aretranslatedtoAustraliandollarsatforeignexchangeratesrulingatthebalancesheetdate.TherevenuesandexpensesofforeignoperationsaretranslatedtoAustraliandollarsatratesapproximatingtheforeignexchangeratesrulingatthedatesofthetransactions.Foreignexchangedifferencesarisingonretranslationarerecognisedintheforeigncurrencytranslationreserve.Whenaforeignoperationisdisposedof,inpartorinfull,therelevantamountinthereserveistransferredtoprofitorloss.

(iii) NETINVESTMENTINFOREIGNOPERATIONS

Exchangedifferencesarisingfromthetranslationofthenetinvestmentinforeignoperations,andtheeffectiveportionofrelatedhedgesaretakentothereserve.Theyarereleasedtoprofitorlossasanadjustmenttoprofitorlossondisposal.

Foreignexchangegainsandlossesarisingfromamonetaryitemreceivablefromorpayabletoaforeignoperation,thesettlementofwhichisneitherplannedorlikelyintheforeseeablefuture,areconsideredtoformpartofanetinvestmentinaforeignoperationandarerecogniseddirectlyinequityintheforeigncurrencytranslationreserve.

(e) derivative finanCial instruments

TheGroupusesderivativefinancialinstrumentstohedgeitsexposuretoforeignexchangeandinterestraterisksarisingfromoperating,financingactivitiesandinvestingactivities.Inaccordancewithitstreasurypolicy,theGroupdoesnotholdorissuederivativefinancialinstrumentsfortradingpurposes.

Derivativefinancialinstrumentsarerecognisedatfairvalue.Thegainorlossonremeasurementtofairvalueisrecognisedimmediatelyinprofitorloss.However,wherederivativesqualifyforhedgeaccounting,recognitionofanyresultantgainorlossdependsonthenatureoftheitembeinghedged(referNote1(f)).

ThefairvalueofinterestrateswapsistheestimatedamountthattheGroupwouldreceiveorpaytoterminatetheswapatthebalancesheetdate,takingintoaccountcurrentinterestratesandthecreditworthinessoftheswapcounterparties.Thefairvalueofforwardexchangecontractsistheirquotedmarketpriceatthebalancesheetdate,beingthepresentvalueofthequotedforwardprice.

(f) hedgingOnenteringintoahedgingrelationship,theGroupformallydesignatesanddocumentsthehedgerelationshipandtheriskmanagementobjectiveandstrategyforundertakingthehedge.Thedocumentationincludesidentificationofthehedginginstrument,thehedgeditemortransaction,thenatureoftheriskbeinghedgedandhowtheentitywillassessthehedginginstrument’seffectivenessinoffsettingtheexposuretochangesinthehedgeditem’sfairvalueorcashflowsattributabletothehedgedrisk.Suchhedgesareexpectedtobehighlyeffectiveinachievingoffsettingchangesinfairvalueorcashflowsandareassessedonanongoingbasistodeterminethattheyactuallyhavebeenhighlyeffectivethroughoutthefinancialreportingperiodsforwhichtheyaredesignated.

(i) CASHFLOWHEDGESWhereaderivativefinancialinstrumentisdesignatedasahedgeofthevariabilityincashflowsofarecognisedassetorliability,orahighlyprobableforecasttransaction,theeffectivepartofanygainorlossonthederivativefinancialinstrumentisrecogniseddirectlyinequityinthehedgingreserve.Whentheforecasttransactionsubsequentlyresultsintherecognitionofanon-financialassetornon-financialliability,ortheforecasttransactionforanon-financialliabilitybecomesafirmcommitmentforwhichfairvaluehedgeaccountingisapplied,theassociatedcumulativegainorlossisremovedfromequityandincludedintheinitialcostorothercarryingamountofthenon-financialassetorliability.Ifahedgeofaforecasttransactionsubsequentlyresultsintherecognitionofafinancialassetorafinancialliability,thentheassociatedgainsandlossesthatwererecogniseddirectlyinequityarereclassifiedintoprofitorlossinthesameperiodorperiodsduringwhichtheassetacquiredorliabilityassumedaffectsprofitorloss(i.e.wheninterestincomeorexpenseisrecognised).

Forcashflowhedges,theassociatedcumulativegainorlossisremovedfromequityandrecognisedintheIncomeStatementinthesameperiodorperiodsduringwhichthehedgedforecasttransactionaffectsprofitorloss.TheineffectivepartofanygainorlossisrecognisedimmediatelyintheIncomeStatement.

Hedgeaccountingisdiscontinuedwhenthehedginginstrumentexpiresorissold,terminatedorexercised,ornolongerqualifiesforhedgeaccounting.Atthatpointintime,anycumulativegainorlossonthehedginginstrumentrecognisedinequityiskeptinequityuntiltheforecasttransactionoccurs.Ifahedgetransactionisnolongerexpectedtooccur,thenetcumulativegainorlossrecognisedinequityistransferredtotheIncomeStatement.

(ii) HEDGEOFNETINVESTMENTINFOREIGNOPERATION

Theportionofthegainorlossonaninstrumentusedtohedgeanetinvestmentinaforeignoperation,thatisdeterminedtobeaneffectivehedge,isrecogniseddirectlyinequity.TheineffectiveportionisrecognisedimmediatelyintheIncomeStatement.

(g) property, plant and eQuipment(i) OWNEDASSETSItemsofproperty,plantandequipment(exceptforinvestmentproperties–referNote1(g)(ii))arestatedatcostordeemedcost,lessaccumulateddepreciationandimpairmentlosses.

Thecostofassetsrepresentsthefairvalueoftheconsiderationprovided,plusincidentalcostsdirectlyattributabletotheacquisitionandalsoincludes:

• theinitialestimateofthecostatthetimeofinstallationandduringtheperiodofuse,whenrelevantandprobable,ofremovingitemsandrestoringthesiteonwhichtheyarelocated(“decommissioning”);and

• changesinthemeasurementofexistingliabilitiesrecognisedfordecommissioningcostsresultingfromchangesinthediscountrateappliedtothesefutureliabilitiesorchangestoestimatesofcost.

Thecostmayalsoincludetransfersfromequityofanygainorlossonqualifyingcashflowhedgesofforeigncurrencypurchasesofproperty,plantandequipment.


NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES CONTINUED(g) property, plant and eQuipment

(Continued)(i) OWNEDASSETS(CONTINUED)Theborrowingcostrelatedtotheacquisitionorconstructionofqualifyingassetsiscapitalisedintothecostoftheasset.

Wheresettlementofanypartofcashconsiderationisdeferred,theamountspayablearerecordedattheirpresentvalue,discountedattherateapplicabletotheGroupifasimilarborrowingwereobtainedfromanindependentfinancierundercomparabletermsandconditions.Theunwindingofthediscountistreatedasinterestexpense.

Certainitemsofproperty,plantandequipmentthathadbeenrevaluedtofairvalueonorpriorto1July2004,thedateoftransitiontoAASBs,aremeasuredonthebasisofdeemedcost,beingtherevaluedamountatthedateofthatrevaluation.

Wherepartsofanitemofproperty,plantandequipmenthavedifferentusefullives,theyareaccountedforasseparateitemsorproperty,plantandequipment.

(ii) INVESTMENTPROPERTIESInvestmentpropertiescompriselandandbuildingswhichareheldforlongtermrentalyieldsorforcapitalappreciation,orboth,andarenotoccupiedbytheGroup.Initially,investmentpropertiesaremeasuredatcostincludingtransactioncosts.Subsequenttoinitialrecognition,investmentpropertiesarestatedatfairvalue.

Propertythatisbeingconstructedforfutureuseasinvestmentpropertyisaccountedforasproperty,plantandequipmentuntilconstructionordevelopmentiscomplete,atwhichtimeitisremeasuredtofairvalueandreclassifiedasinvestmentproperty.AnygainorlossarisingonremeasurementisrecognisedintheIncomeStatement.Whenapropertyisreclassifiedfromowner-occupiedtoaninvestmentpropertyfollowingachangeinitsuse,anydifferenceatthedateoftransferbetweenthecarryingamountofthepropertyimmediatelypriortotransferanditsfairvalueisrecogniseddirectlytotheinvestmentpropertyrevaluationreserve,ifitisagain.AnydecreaseinvalueisrecognisedintheIncomeStatement.

GainsorlossesarisingfromchangesinthefairvaluesofinvestmentpropertiesareincludedintheIncomeStatementintheperiodinwhichtheyarise.

Investmentpropertiesarederecognisedwhentheyhaveeitherbeendisposedoforwhentheinvestmentpropertyispermanentlywithdrawnfromuseandnofuturebenefitisexpectedfromitsdisposal.AnygainsorlossesonthederecognitionofaninvestmentpropertyarerecognisedintheIncomeStatementintheperiodofderecognition.

(iii) LEASEDASSETSLeasesforproperty,plantandequipmentunderwhichtheCompanyoritscontrolledentitiesassumesubstantiallyalltherisksandbenefitsofownershipareclassifiedasfinanceleases.Otherleasesareclassifiedasoperatingleases.

Financeleasesarecapitalised.Aleaseassetandaleaseliabilityequaltothepresentvalueoftheminimumleasepaymentsarerecordedattheinceptionofthelease.Contingentrentalsarewrittenoffasanexpenseoftheaccountingperiodinwhichtheyareincurred.Capitalisedleaseassetsaredepreciatedonastraight-linebasisoverthetermoftherelevantlease,orwhereitislikelytheGroupwillobtainownershipoftheasset,thelifeoftheasset.TheyarestatedintheBalanceSheetatanamountequaltotheloweroftheirfairvalueandthepresentvalueoftheminimumleasepaymentsatinceptionofthelease,lessaccumulateddepreciationandimpairmentlosses.Leaseliabilitiesarereducedbyrepaymentsofprincipal.TheinterestcomponentsoftheleasepaymentsarechargedtotheIncomeStatement.

Paymentsmadeunderoperatingleasesarechargedagainstprofitsinequalinstalmentsovertheaccountingperiodscoveredbytheleaseterm,exceptwhereanalternativebasisismorerepresentativeofthepatternofbenefitstobederivedfromtheleasedproperty.

(iv) SUBSEQUENTCOSTSTheGrouprecognisesinthecarryingamountofanitemofproperty,plantandequipmentthecostofreplacingpartofsuchanitemwhenthatcostisincurred,ifitisprobablethatthefutureeconomicbenefitsembodiedwithintheitemwillflowtotheGroupandthecostoftheitemcanbemeasuredreliably.AllothercostsarerecognisedintheIncomeStatementasanexpense.

(v) DEPRECIATIONDepreciationischargedtotheIncomeStatementonastraight-linebasisovertheestimatedusefullivesofeachpartofanitemofproperty,plantandequipment.Landisnotdepreciated.Theestimatedusefullivesinthecurrentandcomparativeperiodsareasfollows:

Buildings 40–80yearsPlantandequipment 3–20yearsFixturesandfittings 3–10yearsLeaseholdbuildings Shorterofestimatedandimprovements usefullifeandterm oflease

Assetsaredepreciatedoramortisedfromthedateofacquisitionor,inrespectofinternallyconstructedassets,fromthetimeanassetiscompletedandheldreadyforuse.

Depreciationratesarereviewedannuallyforappropriateness.Theresidualvalue,ifnotinsignificant,isalsoreassessedannually.Whenchangesaremade,adjustmentsarereflectedprospectivelyincurrentandfutureperiodsonly.

(h) intangible assets(i) GOODWILLGoodwillonacquisitionisinitiallymeasuredatcost,beingtheexcessofthecostofthebusinesscombinationovertheacquirer’sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilities.

Followinginitialrecognition,goodwillismeasuredatcostlessanyaccumulatedimpairmentlosses.Goodwillisnotamortised.Goodwillisreviewedforimpairment,annuallyormorefrequentlyifeventsorchangesincircumstancesindicatethatthecarryingvaluemaybeimpaired.

Asattheacquisitiondate,anygoodwillacquiredisallocatedtoeachofthecash-generatingunitsexpectedtobenefitfromthebusinesscombination’ssynergies.

Impairmentisdeterminedbyassessingtherecoverableamountofthecash-generatingunittowhichthegoodwillrelates.Wheretherecoverableamountofthecash-generatingunitislessthanthecarryingamount,animpairmentlossisrecognised.Animpairmentlossrecognisedinrespectofgoodwillcannotbereversed.

Thecarryingamountofgoodwillinrespectofassociatesisincludedinthecarryingamountoftheinvestmentintheassociate.

(ii) CONSTRUCTIONRIGHTSConstructionrightsrelatetotheGroup’sabilitytodevelopaccommodationintheThredboAlpineResort.Constructionrightsarerecognisedatcostandareamortisedastherightsareeithersoldordeveloped.Thecarryingvalueofconstructionrightsisreviewedannually.Anyamountsnolongerconsideredrecoverablearewrittenoff.

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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES CONTINUED(h) intangible assets (Continued)(iii) OTHERINTANGIBLEASSETSOtherintangibleassets,whichlargelycomprisemanagementrightsandsoftwarecosts,arestatedatcostlessaccumulatedamortisationandimpairmentlosses.

Managementrightsareamortisedoverthelifeofthemanagementagreementsonastraight-linebasis.

Softwarecostsformajoroperatingsystemsareamortisedoverafourtofiveyearperiodonastraight-linebasis.

(i) reCoverable amount of assetsAteachreportingdate,theGroupassesseswhetherthereisanyindicationthatanassetmaybeimpaired.Whereanindicatorofimpairmentexists,theGroupmakesaformalestimateofrecoverableamount.Wherethecarryingamountofanassetexceedsitsrecoverableamount,theassetisconsideredimpairedandiswrittendowntoitsrecoverableamount.

Therecoverableamountofassetsisthegreateroftheirnetsellingpriceandvalueinuse.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.Foranassetthatdoesnotgeneratelargelyindependentcashinflows,therecoverableamountisdeterminedforthecash-generatingunittowhichtheassetbelongs.

Impairmentofreceivablesisnotrecogniseduntilobjectiveevidenceisavailablethatalosseventhasoccurred.Receivablesareindividuallyassessedforimpairment.

Animpairmentlossisrecognisedwheneverthecarryingamountofanassetoritscash-generatingunitexceedstherecoverableamount.ImpairmentlossesarerecognisedintheIncomeStatementunlesstheassetoritscash-generatingunithaspreviouslybeenrevalued,inwhichcasetheimpairmentlossisrecognisedasareversaltotheextentofthepreviousrevaluation,withanyexcessrecognisedthroughtheIncomeStatement.

Animpairmentlossisreversedonlytotheextentthattheasset’scarryingamountdoesnotexceedthecarryingamountthatwouldhavebeendetermined,netofdepreciationoramortisation,ifnoimpairmentlosshadbeenrecognised.

Withtheexceptionofgoodwill,animpairmentlossisreversedwhenthereisaclearindicationthattheimpairmentlossnolongerexistsandtherehasbeenachangeintheestimatesusedtodeterminetherecoverableamount.

(j) investmentsAllinvestmentsareinitiallyrecognisedatcost,beingthefairvalueoftheconsiderationgivenandincludingacquisitionchargesassociatedwiththeinvestment.

Afterinitialrecognition,investments,whichareclassifiedasavailable-for-sale,aremeasuredatfairvalue.Available-for-salefinancialassetscomprisemarketableequitysecurities.

Forinvestmentsthatareactivelytradedinorganisedfinancialmarkets,fairvalueisdeterminedbyreferencetosecuritiesexchangequotedmarketbidpricesatthecloseofbusinessonthebalancesheetdate.

Gainsorlossesonavailable-for-saleinvestmentsarerecognisedasaseparatecomponentofequityintheavailable-for-saleinvestmentsrevaluationreserveuntiltheinvestmentissold,collectedorotherwisedisposedof,oruntiltheinvestmentisdeterminedtobeimpaired,atwhichtimethecumulativegainorlosspreviouslyreportedinequityisincludedintheIncomeStatement.AnimpairmentlossrecognisedintheIncomeStatementinrespectofanavailable-for-saleinvestmentisnotreversedthroughtheIncomeStatement.

(k) inventoriesInventoriesarecarriedatthelowerofcostandnetrealisablevalue.

Workinprogressisvaluedatcost.Costisbasedonthefirst-in-first-outprincipleandincludesexpenditureincurredinbringinginventoriestotheirexistingconditionandlocation.Thecostofinventorymayalsoincludetransfersfromequityofanygainorlossonqualifyingcashflowhedgesofforeigncurrencypurchasesofinventory.

(l) ContraCt Work in progressForshorttermcontracts,profitisbroughttoaccountoncompletionofeachjob.Forlongtermcontracts,profitrecognitioncommenceson50%completionofeachjobandisrecognisedonapercentagecompletionbasis.

(m) Cash and Cash eQuivalentsCashandcashequivalentscomprisecashbalancesandcalldepositswithanoriginalmaturityofthreemonthsorless.BankoverdraftsthatarerepayableondemandandformanintegralpartoftheGroup’scash

managementareincludedasacomponentofcashandcashequivalentsforthepurposeoftheStatementofCashFlows.

(n) reCeivablesTradeandotherreceivablesarestatedattheiramortisedcostlessanallowanceforimpairmentlosses.Wherethepaymenttermsforthesaleofanassetaredeferred,thereceivableisdiscountedusingtheprevailingrateforasimilarinstrumentofanissuerwithsimilarcreditterms.Theunwindingofthediscountistreatedasfinancerevenue.

(o) payablesTradeandotherpayablesarerecognisedattheiramortisedcost.Liabilitiesarerecognisedforamountstobepaidinthefutureforgoodsorservicesreceived.Tradeaccountspayablearenormallynon-interestbearingandsettledwithin30days.

(p) borroWingsInterestbearingandnon-interestbearingborrowingsarerecognisedinitiallyatfairvaluelessattributabletransactioncosts.Subsequenttoinitialrecognition,borrowingsarestatedatamortisedcostwithanydifferencebetweencostandredemptionvaluebeingrecognisedintheIncomeStatementovertheperiodoftheborrowingsonaneffectiveinterestbasis.

(q) provisions(i) EMPLOYEEBENEFITSProvisionismadeforemployeebenefitsincludingannualleaveforemployeesandtheretirementbenefitsforqualifyingnon-executivedirectors.TheprovisionrepresentstheamountwhichtheGrouphasapresentobligationtopayresultingfromtheemployees’servicesprovideduptothereportingdate.Theprovisionsexpectedtobesettledwithin12monthshavebeencalculatedatundiscountedamountsbasedontheremunerationratestheemployerexpectstopayafterthereportingdateandincludesrelatedon-costs.

Theliabilityforemployees’benefitstolongserviceleaverepresentsthepresentvalueoftheestimatedfuturecashoutflowstobemadebytheemployerresultingfromemployees’servicesprovideduptothereportingdate.

Liabilitiesforemployeebenefitswhicharenotexpectedtobesettledwithin12monthsarediscountedusingtheratesattachingtonationalgovernmentsecuritiesatreportingdate,whichmostcloselymatchthetermsofmaturityoftherelatedliabilities.


NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES CONTINUED(q) provisions (Continued)(i) EMPLOYEEBENEFITS(CONTINUED)Indeterminingtheliabilityforemployeebenefits,considerationhasbeengiventofutureincreasesinwageandsalaryrates,andtheGroup’sexperiencewithstaffdepartures.Relatedon-costshavealsobeenincludedintheliability.

(ii) ONEROUSCONTRACTSAprovisionforonerouscontractsisrecognisedwhentheexpectedbenefitstobederivedfromacontractarelessthantheunavoidablecostsofmeetingtheobligationsunderthatcontract,andonlyafteranyimpairmentlossestoassetsdedicatedtothatcontracthavebeenrecognised.

Theprovisionrecognisedisbasedontheexcessoftheestimatedcashflowstomeettheunavoidablecostsunderthecontractovertheestimatedcashflowstobereceivedinrelationtothecontract,havingregardtotherisksoftheactivitiesrelatingtothecontract.Thenetestimatedcashflowsarediscountedusingmarketyieldsonnationalgovernmentguaranteedbondswithtermstomaturitythatmatch,ascloselyaspossible,theexpectedfuturecashflows.

(iii) DECOMMISSIONINGOFLEASEHOLDIMPROVEMENTS

Aprovisionfortheestimatedcostofdecommissioningleaseholdimprovementsismadewherealegalorconstructiveobligationexists.

Indeterminingtheprovisionfordecommissioningcosts,anassessmentismadeforeachlocationofthelikelihoodandamountofthedecommissioningcoststobeincurredinthefuture.Theestimatedfutureliabilityisdiscountedtoapresentvalue,withthediscountamountunwindingoverthelifeoftheleaseholdassetasaninterestexpense.Theestimateddecommissioningcostrecognisedasaprovisionisincludedaspartofthecostoftheleaseholdimprovementsatthetimeofinstallationorduringthetermofthelease,astheliabilityfordecommissioningisreassessed.Thisamountcapitalisedisthendepreciatedoverthelifeoftheasset.

(iv) OTHEROtherprovisionsarerecognisedintheBalanceSheetwhentheGrouphasapresentlegalorconstructiveobligationasaresultofapastevent,anditisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligation.Provisionsaredeterminedbydiscountingthe

expectedfuturecashflowsatapre-taxratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyand,whereappropriate,therisksspecifictotheliability.

(r) superannuation plansTheCompanyandcontrolledentitiescontributetoseveraldefinedcontributionsuperannuationplans.Contributionsarechargedagainstincomeastheyaremade.ThesecontributionsareinaccordancewiththerelevanttrustdeedsandtheSuperannuationGuaranteeLevy.

(s) share-based payment transaCtions – employee share and option plans

(i) EXECUTIVEPERFORMANCESHAREPLANEquity-basedcompensationbenefitsareprovidedtoemployeesviatheExecutivePerformanceSharePlan.

ThefairvalueofperformancesharesgrantedundertheExecutivePerformanceSharePlanisrecognisedasanemployeeexpenseovertheperiodduringwhichtheemployeesbecomeunconditionallyentitledtotheshares.Thereisacorrespondingincreaseinequity,beingrecognitionofashare-basedpaymentsreserve.Thefairvalueofperformancesharesgrantedismeasuredatgrantdate.ThefairvalueoftheshareswasdeterminedusingtheMonteCarlosimulationmodel,takingintoaccountthetermsandconditionsuponwhichthesharesweregranted.

TofacilitatetheoperationoftheExecutivePerformanceSharePlan,athirdpartytrusteeisusedtoadministerthetrustwhichholdsharesallocatedundertheExecutivePerformanceSharePlan.

Performancesharesaresubjecttoperformancehurdles.TheperformancesharesarerecognisedintheBalanceSheetasrestrictedordinaryshares.Performancesharesareincludedwithintheweightedaveragenumberofsharesusedasthedenominatorfordeterminingbasicearningspershareandnettangibleassetbackingpershare.

TheCompanyincursexpensesonbehalfofthetrust.TheseexpensesareinrelationtoadministrationcostsofthetrustandarerecordedintheIncomeStatementasincurred.

ForemployeeperformancesharesissuedbytheCompanytoemployeesofsubsidiaries,theamountrecognisedasanemployeeexpensebytheGroupinrespectofthosesharesischargedtoandrecoveredfromsubsidiariesbytheCompany.

(ii) MANAGEMENTSHAREOPTIONPLANTheManagementShareOptionPlanallowedGroupemployeestoacquiresharesoftheCompany.NonewoptionshavebeenissuedunderthisplansinceSeptember2004.Thelastoptionstobeissuedundertheplanexpiredon30September2008.Thefairvalueofoptionsgrantedwasrecognisedasanemployeeexpensewithacorrespondingincreaseinequityreserves.Thefairvaluewasmeasuredatgrantdateandisspreadovertheperiodduringwhichtheemployeesbecomeunconditionallyentitledtotheoptions.Thefairvalueoftheoptionsgrantedwasmeasuredusingabinomialoptionpricingmodel,takingintoaccountthetermsandconditionsuponwhichtheoptionsweregranted.Theamountrecognisedasanexpensewasadjustedtoreflecttheactualnumberofoptionsthatareexpectedtovest,exceptwhereforfeiturewasonlyduetosharepricesnotachievingthethresholdforvesting.

(iii) EMPLOYEESHAREPLANTheCompanyhasinprioryearsissuedsharestocertainemployeesunderanEmployeeSharePlan.NoshareshavebeenissuedunderthisplansinceFebruary1998.Otherthancostsincurredinadministeringtheschemewhichareexpensedasincurred,theschemedoesnotresultinanyexpensetotheGroup.

(t) revenue reCognitionRevenuesarerecognisedatfairvalueoftheconsiderationreceived,netoftheamountofgoodsandservicestax(“GST”).

(i) SALEOFGOODSRevenuefromthesaleofgoodscomprisesrevenueearned(netofreturns,discounts,allowancesandGST)fromtheprovisionofproductstoentitiesoutsidetheGroup.Revenuefromthesaleofgoodsisrecognisedwhensignificantrisksandrewardsofownershipofgoodspasstothecustomer.

(ii) RENDERINGORSERVICESANDDEFERREDREVENUE

Revenuefromrenderingservicesisrecognisedintheperiodinwhichtheserviceisprovided.Revenuerelatingtofutureperiodswhichisnotyetrecognisedbecausetheserviceisyettobeprovidedortheadmissionmade,isshownontheBalanceSheetasdeferredrevenue.

(iii) FINANCEREVENUEFinancerevenueincludesinterestanddividendincome.Interestincomeisrecognisedasitaccrues,takingintoaccounttheeffectiveyieldonthefinancialasset.DividendincomeisrecognisedonthedatethattheGroup’srighttoreceivepaymentisestablished.

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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES CONTINUED(t) revenue reCognition

(Continued)(iv) RENTALINCOMERentalincomeisrecognisedintheIncomeStatementonastraight-linebasisoverthetermofthelease.Leaseincentivesgrantedarerecognisedasanintegralpartofthetotalrentalincome.

(v) SALEOFNON-CURRENTASSETSThegainorlossondisposaliscalculatedasthedifferencebetweenthecarryingamountoftheassetatthetimeofdisposalandthenetproceedsondisposal.

(vi) CUSTOMERLOYALTYPROGRAMAgroupentityoperatesloyaltyprogramwherecustomersaccumulatepointsforpurchasesmadewhichentitlesthemtodiscountsonfuturepurchases.Theawardpointsarerecognisedasaseparatelyidentifiablecomponentoftheinitialsaletransaction,byallocatingthefairvalueoftheconsiderationreceivedbetweentheawardpointsandthecomponentsofthesale,suchthattheawardpointsarerecognisedattheirfairvalue.Revenuefromtheawardpointsisrecognisedwhenthepointsareredeemed.Theamountoftherevenueisbasedonthenumberofpointsredeemedrelativetothetotalnumberexpectedtoberedeemed.

(u) goods and serviCes taxRevenues,expensesandassetsarerecognisednetoftheamountofGST,exceptwheretheamountofGSTincurredisnotrecoverablefromtheAustralianTaxationOffice(“ATO”).Inthesecircumstances,theGSTisrecognisedaspartofthecostofacquisitionoftheassetoraspartofanitemofexpense.

ReceivablesandpayablesarestatedwiththeamountofGSTincluded.

ThenetamountofGSTrecoverablefrom,orpayableto,theATOisincludedasacurrentassetorliabilityintheBalanceSheet.

CashflowsareincludedintheStatementofCashFlowsonagrossbasis.TheGSTcomponentsofcashflowsarisingfrominvestingandfinancingactivitieswhicharerecoverablefrom,orpayableto,theATOareclassifiedasoperatingcashflows.

(v) finanCe CostsFinancecostsincludeinterest,amortisationofdiscountsorpremiumsrelatingtoborrowings,amortisationofancillarycostsincurredinconnectionwitharrangementofborrowings,andleasefinancecharges.Ancillarycosts

incurredinconnectionwiththearrangementofborrowingsarecapitalisedandamortisedoverthelifeoftheborrowings.

Financecostsareexpensedasincurredunlesstheyrelatetoqualifyingassets.Qualifyingassetsareassetswhichtakemorethan12monthstogetreadyfortheirintendeduseorsale.Wherefundsareborrowedspecificallyfortheacquisition,constructionorproductionofaqualifyingasset,theamountofborrowingcostscapitalisedisthatincurredinrelationtothatborrowing,netofanyinterestearnedonthoseborrowings.Wherefundsareborrowedgenerally,borrowingcostsarecapitalisedusingaweightedaverageinterestrateapplicabletotheentity’sborrowingsduringtheperiod.

(w) taxation(i) INCOMETAXIncometaxontheIncomeStatementfortheperiodspresentedcomprisescurrentanddeferredtax.IncometaxisrecognisedintheIncomeStatementexcepttotheextentthatitrelatestoitemsrecogniseddirectlyinequity,inwhichcaseitisrecognisedinequity.

Currenttaxistheexpectedtaxpayableonthetaxableincomefortheyear,usingtaxratesenactedorsubstantiallyenactedatthebalancesheetdate,andanyadjustmenttotaxpayableinrespectofpreviousyears.

Deferredtaxisprovidedusingthebalancesheetliabilitymethod,providingfortemporarydifferencesbetweenthecarryingamountsofassetsandliabilitiesforfinancialreportingpurposesandtheamountsusedfortaxationpurposes.Thefollowingtemporarydifferencesarenotprovidedfor:initialrecognitionofgoodwill;theinitialrecognitionofassetsorliabilitiesthataffectneitheraccountingnortaxableprofit;anddifferencesrelatingtoinvestmentsinsubsidiariestotheextentthattheywillprobablynotreverseintheforeseeablefuture.Theamountofdeferredtaxprovidedisbasedontheexpectedmannerofrealisationorsettlementofthecarryingamountofassetsandliabilities,usingtaxratesenactedorsubstantivelyenactedatthebalancesheetdate.Deferredtaxassetsandliabilitiesareoffsetifthereisalegallyenforceablerighttooffsetcurrenttaxliabilitiesandassets,andtheyrelatetoincometaxesleviedbythesametaxauthorityonthesametaxableentity,orondifferenttaxentities,buttheyintendtosettlecurrenttaxliabilitiesandassetsonanetbasisortheirtaxassetsandliabilitieswillberealisedsimultaneously.

Adeferredtaxassetisrecognisedonlytotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichtheassetcanbeutilised.Deferredtaxassetsarereducedtotheextentthatitisnolongerprobablethattherelatedtaxbenefitwillberealised.

(ii) TAXCONSOLIDATIONREGIMETheCompanyistheheadentityinthetax-consolidatedgroupcomprisingalltheAustralianwholly-ownedsubsidiaries.Theheadentityrecognisesallofthecurrenttaxliabilitiesofthetax-consolidatedgroup.

Thetax-consolidatedgrouphasenteredintoataxfundingagreementthatrequiresAustralianwholly-ownedsubsidiariestomakecontributionstotheheadentityforcurrenttaxliabilitiesarisingfromexternaltransactionsoccurringaftertheimplementationoftaxconsolidation.

Underthetaxfundingagreement,thecontributionsarecalculatedusinga“groupallocationmethod”sothatthecontributionsareequivalenttothetaxbalancesgeneratedbyexternaltransactionsenteredintobywholly-ownedsubsidiaries.Thecontributionsarepayableassetoutintheagreementandreflectthetimingoftheheadentity’sobligationstomakepaymentsfortaxliabilitiestotherelevanttaxauthorities.

TheCompanyrecognisesdeferredtaxassetsarisingfromunusedtaxlossesofthetax-consolidatedgrouptotheextentthatitisprobablethatfuturetaxableprofitsofthetax-consolidatedgroupwillbeavailableagainstwhichtheassetcanbeutilised.AnysubsequentperiodadjustmentstodeferredtaxassetsarisingfromunusedtaxlossesasaresultofrevisedassessmentsoftheprobabilityofrecoveryarerecognisedbytheCompanyonly.

(x) segment reportingAsegmentisadistinguishablecomponentoftheGroupthatisengagedeitherinprovidingproductsorservices(“businesssegment”),orinprovidingproductsorserviceswithinaparticulareconomicenvironment(“geographicalsegment”),whichissubjecttorisksandrewardsthataredifferentfromthoseofothersegments.

(y) earnings per shareBasicearningspershare(“EPS”)iscalculatedbydividingtheprofitfortheperiodattributabletomembersoftheCompanybytheweightedaveragenumberofordinarysharesoftheCompany.

DilutedEPSadjuststhefiguresusedinthedeterminationofbasicEPStotakeintoaccounttheafter-incometaxeffectofinterestandotherfinancingcostsassociatedwithdilutivepotentialordinarysharesandtheweightedaveragenumberofsharesassumedtohavebeenissuedfornoconsiderationinrelationtodilutivepotentialordinaryshares.Dilutivepotentialordinarysharescompriseshareoptionsgrantedtoemployees.


NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES CONTINUED(z) aCCounting estimates

and JudgementsEstimatesandjudgementsarecontinuallyevaluatedandarebasedonhistoricalexperienceandotherfactors,includingexpectationsoffutureeventsthatmayhaveafinancialimpactontheGroupandthatarebelievedtobereasonableunderthecircumstances.

Theestimatesandjudgementsthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararediscussedbelow:

RECOVERABLEVALUEOFASSETSTheGrouphasundertakenassessmentsofwhetherlong-livedassetsincludingpropertyassets,goodwillandplantandequipmentcouldbedeemedtobeimpaired.Inassessingtherecoverabilityoftheseassets,assumptionsaremaderegardingtheestimatedfuturecashflowsandotherfactors,includingthepre-taxdiscountratetobeapplied,todeterminethefairvalueoftherespectiveassets.Theestimateofcashflowisbasedupon,amongotherthings,certainassumptionsaboutexpectedfutureoperatingperformance.Estimatesofdiscountedcashflowmaydifferfromactualcashflowduetofactorssuchaseconomicconditions,changestobusinessmodelsorchangesinoperatingperformance.Ifthesumofthediscountedestimatedcashflowsislessthanthecurrentcarryingvalue,animpairmentloss,measuredastheamountbywhichthecarryingvalueexceedsthefairvalueoftheasset,isrecognised.

TheGrouphasalsopreviouslyrecognisedimpairmentwrite-downsforplantandequipmentatanumberofcinemasites.Wheretradingcircumstancesimproveatasite,anassessmentofrecoverablevalueismadetodetermineifanimpairmentlosscanbereversed,netofdepreciationthatwouldhavebeenincurredhadnoimpairmentlossbeenrecognised.Thesedeterminationsalsorequireestimatesandassumptionswithregardtothefuturetradingperformanceofthosecinemasites.

ReferNote17fordetailsofimpairmentlossesrecognisedandpriorperiodimpairmentswrittenback.

CONTINGENTASSETSANDLIABILITIESAlsorefertoNote31forestimatesandjudgementmadeinrelationtocontingentassetsandliabilities.

CRITICALACCOUNTINGJUDGEMENTSINAPPLYINGTHEGROUP’SACCOUNTINGPOLICIES–INVESTMENTPROPERTIESIntheyearto30June2006,theGroupacquiredtwoproperties,inMarketandGeorgeStreets,SydneywhichadjointheStateTheatreBuildingandhaveacombinedbookwritten-downvalueof$77,507,000at30June2009(2008:$81,522,000).TheGroupreceivesrentalincomeinrespectofbothpropertiesacquired.Pendingcompletionofplanningforthelongtermuseofthesecombinedproperties,includingtheStateTheatreproperty,thesepropertieshavenotbeenclassifiedasinvestmentproperties.Thesepropertieshavebeenaccountedforusingthecostbasisratherthanthefairvaluebasiswhichisappliedforinvestmentproperties.

Investmentpropertiesarecarriedattheirfairvalue,whichisdeterminedbyanindependentvalueratsixmonthlyintervals.ReferNote18.

SHARE-BASEDPAYMENTTRANSACTIONSTheGroupmeasuresthecostoftheExecutivePerformanceSharePlanbyreferencetothefairvalueoftheequityinstrumentatthedateatwhichthesharesaregranted.ThefairvalueofperformancesharesgrantedisdeterminedbyanexternalvaluerusingaMonteCarlosimulationmodelusingtheassumptionsdetailedinNote29.

(aa) disContinued operationsAdiscontinuedoperationisacomponentoftheGroup’sbusinessthatrepresentsaseparatemajorlineofbusinessthathasbeendisposedoforisheldforsale.Classificationasadiscontinuedoperationoccursupondisposalorwhentheoperationmeetsthecriteriatobeclassifiedasheldforsale,ifearlier.Whenanoperationisclassifiedasadiscontinuedoperation,thecomparativeIncomeStatementisrestatedasiftheoperationhadbeendiscontinuedfromthestartofthecomparativeperiod.

NOTE 2 – SEGMENT REPORTINGSegmentinformationispresentedinrespectoftheGroup’sbusinessandgeographicalsegments.

Inter-segmentpricingisonanarm’slengthbasis.

Segmentresults,assetsandliabilitiesincludeitemsdirectlyattributabletoasegmentaswellasthosethatcanbeallocatedonareasonablebasis.Unallocateditemsmainlycompriseincomeearningassetsandrevenue,interestbearingloansandborrowingsandexpenses,andcorporateassetsandexpenses.

Segmentcapitalexpenditureisthetotalcostincurredduringtheperiodtoacquiresegmentassetsthatareexpectedtobeusedformorethanoneperiod.

business segmentsTheGroupcomprisesthefollowingmainbusinesssegments,basedontheGroup’smanagementreportingsystemandthedifferingrisksandrewardsassociatedwitheachbusiness.

CINEMAEXHIBITIONDOMESTICIncludestheAustraliancinemaexhibitionoperations.

CINEMAEXHIBITIONINTERNATIONALIncludestheInternationalcinemaexhibitionoperationsinGermanyandtheUnitedArabEmirates.TheGroup’sinterestinacinemasiteinTheNetherlandswassoldeffective20February2008.

ENTERTAINMENTTECHNOLOGYIncludestheatreequipmentsupplyandservicingandthemanufactureoffilmprocessorsandrelatedequipmentandtheGroup’sinvestmentintheAtlabgroup,whichwassoldon26September2008.

HOTELSIncludestheownership,operationandmanagementofhotelsinAustraliaandoverseas.

THREDBOALPINERESORTIncludesalltheoperationsoftheresortincludingpropertydevelopmentactivities.

LEISURE/ATTRACTIONSIncludesancillaryleisureandotheractivitiesincludingFeatherdaleWildlifeParkandTheStateTheatre.

STRATEGICINVESTMENTSIntheprioryear,thissegmentincludedtheGroup’s50%interestinRoadshowDistributorsPtyLimitedtothedateofsaleofthatinterestbeing15August2007,referDiscontinuedOperations–Note5.

PROPERTYANDOTHERINVESTMENTSIncludespropertyrental,investmentpropertiesandavailable-for-saleinvestments.

geographiCal segmentsInpresentinginformationonthebasisofgeographicalsegments,segmentrevenueisbasedonthegeographicallocationofcustomers.Segmentassetsarebasedonthegeographicallocationoftheassets.TheGroupoperatesinAustraliaandNewZealand,EuropeandtheUnitedArabEmirates.

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NOTE 2 – SEGMENT REPORTING CONTINUED

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

30 JuNE 2009BuSINESS SEGMENTSRevenue and other incomeExternalsegmentrevenue 127,940 353,310 22,640 132,876 52,712 10,948 – 9,651 710,077 – 710,077

Otherincome – 240 – 31 6 – – 428 705 – 705

Financeincome 1,440 – 1,440Otherunallocatedrevenue 339 (250) 89

Total revenue and other income 712,561 (250) 712,311

ResultSegmentresult 14,210 9,796 (768) 21,398 16,012 1,574 – 243 62,465 – 62,465

Shareofnetprofitandprofitonsaleofequityaccountedbusinessundertakings 28,773 (a)13,305 7 104 – – – – 42,189 – 42,189

42,983 23,101 (761) 21,502 16,012 1,574 – 243 104,654 – 104,654

Unallocatedrevenueandexpenses (12,178) (250) (12,428)

Netfinancecosts (3,672) – (3,672)

Profit before related income tax expense 88,804 (250) 88,554

Incometaxexpense (19,327) (3,605) (22,932)

Profit after income tax expense 69,477 (3,855) 65,622Minorityinterest 6 – 6

Net profit 69,483 (3,855) 65,628

Depreciationandamortisation (6,139) (9,496) (190) (7,867) (3,552) (423) – (2,965) (30,632) – (30,632)

Impairmentwrite-downs – (281) – (3,218) – – – (2,312) (5,811) – (5,811)

Impairmentwrite-back – 240 – – – – – – 240 – 240

(a) Includedintheshareofnetprofitfromequityaccountedbusinessundertakingsistheprofitshareof$11,085,000fromMAFGreaterUnionLLCwhichoperatesintheUnitedArabEmirates.Thebalanceoftheshareofnetprofit,amountingto$2,220,000,isfromjointlycontrolledentitiesoperatinginGermany.ReferNotes35and36.

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$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

30 JuNE 2009INDIvIDuALLy SIGNIFICANT ITEMSImpairment write-downsImpairmentwrite-downincarryingvalueoflandandbuildings – – – (3,028) – – – (2,312) (5,340) – (5,340)

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

30 JuNE 2009AssetsSegmentassets 91,656 85,708 16,336 298,201 46,093 7,174 – 144,583 689,751 689,751

Equityaccountedinvestments 98,347 17,311 154 1,938 – – – – 117,750 117,750

Unallocatedcorporateassets 30,977 30,977

Consolidated total assets 838,478 838,478

LiabilitiesSegmentliabilities 43,557 58,910 10,571 19,088 8,065 589 – – 140,780 140,780

Unallocatedcorporateliabilities 98,613 98,613

Consolidated total liabilities 239,393 239,393

Acquisitionsofnon-currentassets 11,920 2,568 219 86,414 2,620 – – 11,666 115,407 115,407

australia and nZ europe other Consolidated Secondary reporting – geographical segments $’000 $’000 $’000 $’000

Externalsegmentrevenue 356,767 353,310 – 710,077

Segmentassetsbylocationofassets 735,461 88,805 14,212 838,478

Acquisitionsofnon-currentassets 112,839 2,568 – 115,407

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$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

30 JuNE 2008BuSINESS SEGMENTSRevenue and other incomeExternalsegmentrevenue 116,014 287,179 16,668 123,423 51,774 8,282 64,381 10,240 677,961 (64,381) 613,580

Otherincome – 1,481 5 54 8 – – 402 1,950 – 1,950

Financeincome 3,354 – 3,354Otherunallocatedrevenue 644 (500) 144

Total revenue and other income 683,909 (64,881) 619,028

ResultSegmentresult 10,960 (781) (69) 30,871 14,938 974 – 3,146 60,039 – 60,039Shareofnetprofitorlossonsaleofequityaccountedbusinessundertakings 23,333 (a)16,035 (4,012) (10) – – 66,496 – 101,842 (62,412) 39,430

34,293 15,254 (4,081) 30,861 14,938 974 66,496 3,146 161,881 (62,412) 99,469

Unallocatedrevenueandexpenses (13,059) (500) (13,559)Netfinancecosts (1,999) – (1,999)

Profit before related income tax expense 146,823 (62,912) 83,911Incometaxexpense (47,308) 26,554 (20,754)

Profit after income tax expense 99,515 (36,358) 63,157Minorityinterest (146) – (146)

Net profit 99,369 (36,358) 63,011

Depreciationandamortisation (6,121) (8,105) (71) (6,494) (4,440) (425) – (2,962) (28,618) – (28,618)

Impairmentwrite-downs – (1,156) – – – – – – (1,156) – (1,156)

Impairmentwrite-back – 1,481 – – – – – – 1,481 – 1,481

(a) Includedintheshareofnetprofitfromequityaccountedbusinessundertakingsistheprofitshareof$7,683,000fromMAFGreaterUnionLLCwhichoperatesintheUnitedArabEmirates.ThebalanceofthenetprofitisfromjointlycontrolledentitiesinGermany(profitof$1,226,000)andfromaformerassociateentity,GreaterUnionKieftBV,whichoperatedintheNetherlands(profitof$7,126,000).ReferNotes35and36.

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$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

30 JuNE 2008INDIvIDuALLy SIGNIFICANT ITEMSOther incomeProfitonsaleofequityaccountedinvestment(RoadshowDistributorsPtyLimited) – – – – – – 64,381 – 64,381 (64,381) –Write-backinprovisionforonerouscontractsrelatingtoleaseforclosedcinemasites – 2,266 – – – – – – 2,266 – 2,266

individually significant items in equity accounted resultsProfitonsaleofequityaccounted33.3%interestinacinemasiteinTheNetherlands – 6,691 – – – – – – 6,691 – 6,691

Impairmentwrite-downintheequityaccountedcarryingvalueofAtlabHoldingsPtyLimited – – (4,253) (4,253) 4,253 –

– 8,957 (4,253) – – – 64,381 – 69,085 (60,128) 8,957

* Discontinuedoperations(referNote5)arisefromthesaleoftheGroup’sinterestintwoassociateentities,RoadshowDistributorsPtyLimitedwhichwasincludedintheStrategicInvestmentsegmentandAtlabHoldingsPtyLimitedwhichwasincludedintheEntertainmentTechnologysegment.AlsoreferNote35–InvestmentsinAssociates.

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

30 JuNE 2008AssetsSegmentassets 91,528 84,121 9,211 222,079 47,579 7,433 – 136,303 598,254 598,254

Equityaccountedinvestments 101,227 13,895 1,747 1,809 – – – – 118,678 118,678

Unallocatedcorporateassets 35,602 35,602

Consolidated total assets 752,534 752,534

LiabilitiesSegmentliabilities 36,788 64,976 6,507 14,808 6,432 535 – – 130,046 130,046

Unallocatedcorporateliabilities 57,447 57,447

Consolidated total liabilities 187,493 187,493

Acquisitionsofnon-currentassets 10,487 1,300 162 14,627 2,626 49 – 6,024 35,275 35,275

australia and nZ europe other Consolidated

secondary reporting – geographical segments $’000 $’000 $’000 $’000

Externalsegmentrevenue 326,401 287,179 – 613,580

Segmentassetsbylocationofassets 654,518 87,149 10,867 752,534

Acquisitionsofnon-currentassets 33,975 1,300 – 35,275

62


The Group Company

2009 2008 2009 2008 note $’000 $’000 $’000 $’000

NOTE 3 – REVENUE AND OTHER INCOMErevenueSaleofgoods 194,244 161,581 – –Renderingofservices 475,616 409,287 – –

669,860 570,868 – –

Financerevenue:Interestincome–jointlycontrolledentities – 8 – –Interestincome–controlledentities 38 – – 6,468 27,896Interestincome–bankdeposits 1,278 1,409 – –Interestincome–otherpersons 121 196 2 –

Totalinterestincome 1,399 1,613 6,470 27,896Netchangeinfairvalueofcashflowhedgestransferredfromequity – 1,582 – –Notionalinterest 41 159 – –

1,440 3,354 6,470 27,896

Rentalrevenue: Associates 38 97 271 – –Otherpersons 21,896 21,997 – –

21,993 22,268 – –

Dividendsreceivedandreceivablefrom:Controlledentities 38 – – 53,007 45,007Available-for-salefinancialassets 453 455 428 402

453 455 53,435 45,409

Managementandconsultingfeesreceivedandreceivablefrom: Associates 38 – 49 – –Controlledentities 38 – – 11,299 9,631Jointlycontrolledentities 36 5,554 5,371 – –Otherpersons 12,113 14,277 – –

17,667 19,697 11,299 9,631

Sundryrevenue 646 891 49 144

other inComeProfitonsaleofproperty,plantandequipment 12 14 – –Property,plantandequipmentimpairmentreversal 240 1,481 – –

Totalotherincome 252 1,495 – –

Totalrevenueandotherincome 712,311 619,028 71,253 83,080

revenue and other inCome inCluding share of sales revenue for Jointly Controlled entities:Revenueaslistedabove 712,311 619,028 71,253 83,080Jointlycontrolledentities* 36 212,179 186,879 – –

924,490 805,907 71,253 83,080

* TomorefairlyreflecttheoperationsoftheGroup,revenuedisclosedincludestheGroup’sshareofthesalesrevenueearnedbyjointlycontrolledentities.TheshareofsalesrevenueofeachjointlycontrolledentityisdisclosedatNote36.


The Group Company

2009 2008 2009 2008 note $’000 $’000 $’000 $’000

NOTE 4 – PROFIT bEFORE INCOME TAx(a) expenses and losses/(gains)Profitbeforeincometaxhasbeenarrivedataftercharging/(crediting)thefollowingitems:Costofgoodssold 61,060 46,552 – –

Financecosts:Interestexpense–associates 125 361 – –Interestexpense–controlledentities 38 – – – 18,495Bankinterestandfinancecosts 4,619 3,951 – –Interestandfinancecosts–otherpersons 16 33 – –Financechargesoncapitalisedleases 665 818 2 –Less:capitalisedinterest (464) – – –

Totalinterestexpenseandfinancecharges 4,961 5,163 2 18,495Unwindofnotionalinterest 151 190 – –

5,112 5,353 2 18,495

Netbadanddoubtfuldebtsexpenseincludingmovementinthedoubtfuldebtsallowance 101 452 – –

Amortisationof: Intangibleassets 1,855 1,788 45 58Leasedplantandequipment 157 116 – –Leaseholdbuildings 2,996 3,009 – –Other 219 221 – –

5,227 5,134 45 58Depreciation 25,405 23,484 51 46

Totaldepreciationandamortisation 30,632 28,618 96 104

Impairmentwrite-downs:Landandbuildings 5,340 – – –Plantandequipment 281 1,156 – –Investments 190 – – –

5,811 1,156 – –

Increase/(decrease)inprovisionfor:Onerouscontracts (1,251) (4,348) – –Insurancelosscontingenciesandother 410 (23) – –Decommissioning (126) 57 – –

(967) (4,314) – –

Employeeexpenses:Employeebenefitsprovisions 8,137 6,746 872 417Share-basedpaymentsexpense 1,258 1,410 569 977Salariesandwages 150,975 136,237 8,482 6,677Superannuationcontributions 6,627 6,091 275 259

Totalemployeeexpenses 166,997 150,484 10,198 8,330

Netforeignexchange(gains)/losses (89) 75 – –

Operatingleaserentalexpense 106,134 97,840 73 58

Lossonsaleofproperty,plantandequipment 366 264 – –

64


The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

NOTE 4 – PROFIT bEFORE INCOME TAx (CONTINUED)(b) individually signifiCant itemsProfitbeforeincometaxincludesthefollowingrevenues/(expenses)whosedisclosureisrelevantinexplainingthefinancialperformanceoftheGroup:

OTHEREXPENSESImpairmentwrite-downsincarryingvalueoflandandbuildings (5,340) – – –Reversal/(provision)foronerouscontractsrelatingtoleaseforclosedcinemasites – 2,266 – –

INDIVIDUALLYSIGNIFICANTITEMSINEQUITYACCOUNTEDRESULTSProfitonsaleofequityaccounted33.3%interestinacinemasiteinTheNetherlands – 6,691 – –

INDIVIDUALLYSIGNIFICANTITEMSRELATINGTODISCONTINUEDOPERATIONSProfitonsaleofequityaccountedinvestmentinRoadshowDistributorsPtyLimited – 64,381 – –Impairmentwrite-downintheequityaccountedcarryingvalueofAtlabHoldingsPtyLimited – (4,253) – –Impairmentwrite-downofinvestmentcarryingvalueofAtlabHoldingsPtyLimited – – – (12,250)

(5,340) 69,085 – (12,250)

NOTE 5 – DISCONTINUED OPERATIONS2009On26September2008,theCompanyandtheGroupsoldtheir50%shareholdinginanassociate,AtlabHoldingsPtyLimited.Thecomparativeincomestatementhasbeenrestatedtoshowincomeandlossesrelatingtothisdiscontinuedinvestmentseparatelyfromthoseofcontinuingoperations.TheconsiderationfromthesaleoftheinvestmentinAtlabHoldingsPtyLimitedwas$1,500,000whichwasequivalenttotheCompany’sandtheGroup’scarryingvaluefortheshareholdingasat30June2008.Asaresult,therewasnoprofitorlossrecognisedonsaleduringtheyearto30June2009.Thetaxeffectofacapitalgainstaxlossamountingto$3,680,000hasbeenrecognisedinrespectofthisdisposal.

2008On15August2007,theCompanysoldits50%shareholdinginRoadshowDistributorsPtyLimited,anassociateasat30June2007.

ANALYSISOFPROFITANDLOSSOFDISCONTINUEDOPERATIONS The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

DividendsreceivedfromAssociate – – – 1,000ManagementfeesreceivedfromAssociate 250 500 250 500

Totalrevenue 250 500 250 1,500Investmentimpairment – – – (12,250)

Share of associate’s net profit/(loss) accounted for using the equity method – Note 35 – (1,969) – –

Profit/(loss) before income tax 250 (1,469) 250 (10,750)Incometaxexpense (75) (150) (75) (150)

Profit/(loss) after income tax for discontinued operations 175 (1,619) 175 (10,900)Gainonsaleofdiscontinuedoperation – 64,381 – –Incometax–saleofdiscontinuedoperations 3,680 (26,404) 1,291 –

Profit/(loss) for the period 3,855 36,358 1,466 (10,900)

Duringthe12monthsto30June2009,thediscontinuedoperationshadcashinflowsfromoperatingactivitiesof$250,000(2008:$1,500,000),cashinflowsfrominvestingactivitiesondisposalof$1,500,000(2008:$95,000,000)andcashinflowsfromfinancingactivitiesof$nil(2008:$nil).


The Group Company

2009 2008 2009 2008 $ $ $ $

NOTE 6 – AUDITORS’ REMUNERATIONAuditservices:AuditorsoftheCompany–KPMGAustralia Auditandreviewoffinancialreports 855,191 886,590 293,295 315,903 Otherassuranceservices 32,210 23,330 – –OverseasKPMGfirms Auditandreviewoffinancialreports 378,740 375,752 – –

1,266,141 1,285,672 293,295 315,903

Otherservices:AuditorsoftheCompany–KPMGAustralia Incometaxcompliance 156,492 147,169 111,539 95,555 Indirecttaxcomplianceadvice 108,129 40,571 20,262 14,325

264,621 187,740 131,801 109,880

OverseasKPMGfirms Internationalincometaxcompliance 100,502 125,296 – – Indirecttaxcomplianceadvice 13,572 33,826 – – Revenuecertificatescompliance 14,606 3,595 – – Othertaxationservices 132,176 103,530 – –

260,856 266,247 – –

525,477 453,987 131,801 109,880

2009 2008 2009 2008 $’000 $’000 $’000 $’000

NOTE 7 – TAxATION(a) inCome tax expenseThemajorcomponentsofincometaxexpense/(benefit)are:

INCOMESTATEMENTIncometaxexpensereported 22,932 20,754 981 104Incometaxattributabletodiscontinuedoperations (3,605) 26,554 (1,216) 150

19,327 47,308 (235) 254

Current income tax Currentincometaxexpense/(benefit) 25,015 40,238 1,779 (6,183) Adjustmentsinrespectofcurrentincometaxofprioryear (376) 320 (681) 44deferred income tax Relatingtooriginationandreversaloftemporarydifferences (5,312) 6,750 (1,333) 6,393

Incometaxexpense/(benefit)reportedintheIncomeStatement 19,327 47,308 (235) 254

INCOMETAXCHARGED/(CREDITED)TOEQUITYdeferred income tax related to items charged or credited directly to equity: Net(gain)/lossonrevaluationofcashflowhedges (596) 459 – – Unrealised(gain)/lossonavailable-for-saleinvestments (375) 924 (375) 924 Adjustmenttoshared-basedpaymentsreserve (110) 76 (110) 76 Deferredtaxadjustmentsoncurrencytranslationmovements (318) – – – Netloss/(gain)onhedgeofnetinvestmentinoverseassubsidiaries 12 (2) – –

Incometax(expense)/benefitreportedinequity (1,387) 1,457 (485) 1,000

66


The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

NOTE 7 – TAxATION (CONTINUED)RECONCILIATIONBETWEENINCOMETAXEXPENSEANDPRE-TAXNETPROFITAreconciliationbetweenincometaxexpenseandaccountingprofitbeforeincometaxmultipliedbytheGroup’sapplicableincometaxrateisasfollows: Profitbeforetaxfromcontinuingoperations 88,554 83,911 59,477 53,026 Profit/(loss)beforetaxfromdiscontinuedoperations 250 62,912 250 (10,750)

Accountingprofitbeforeincometaxexpense 88,804 146,823 59,727 42,276

PrimafacieincometaxexpensecalculatedattheGroup’sstatutoryincometaxrateof30%ontheaccountingprofit 26,641 44,047 17,918 12,683

Increaseinincometaxexpensedueto: Depreciationandamortisationofbuildings 500 710 – – Impairmentwrite-downoflandandbuildings 1,602 – – – Lossesandnon-deductibleitemsinnon-residentcontrolledentities 2,231 1,424 – – Non-refundablefrankingcreditsgrossedup 68 180 55 180 Dividendsfromequityaccountedassociates 30 300 – – Impairmentwrite-downofassociatecarryingvalue – 1,276 – 3,675 Sundryitems 179 109 165 45

4,610 3,999 220 3,900

Decreaseinincometaxexpensedueto: Frankingcreditsondividendsreceived 184 172 183 172 Frankingcreditsondividendsreceivedfromequityaccountedassociates 43 429 – 429 Investmentallowance 183 – – – Dividendsreceivedfromcontrolledentities – – 15,900 13,502 Shareofnon-assessable/(non-deductible)itemsinjoint ventureentitiesincometax 190 (117) – – Shareofincorporatedjointlycontrolledentities’netprofit 666 368 – – Shareofassociates’netprofit 3,358 5,146 – – Differencebetweenbookandtaxprofitondisposalofan investmentinanassociate 3,680 (7,090) 1,291 – Taxlossesfromprioryearsnowrecognisedorutilised 3,133 2,563 – 2,563 Sharebasedpaymentsdeductible/(non-deductible)fortax 111 (413) 318 (293)

11,548 1,058 17,692 16,373

Incometax(over)/underprovidedinprioryear (376) 320 (681) 44

19,327 47,308 (235) 254

(b) Current tax liabilities

PROVISIONFORCURRENTINCOMETAXMovementsduringtheyear:Balanceatthebeginningoftheyear 25,352 4,779 24,416 4,523Incometaxpaid (38,532) (20,095) (36,653) (18,851)Currentyearincometaxprovided 24,854 40,337 1,709 (6,183)Currentyear’sincometaxprovisioninrespectofcontrolledentitiestakenupbytheCompany – – 20,120 44,882Taxrefundsreceived 666 – 655 –(Over)/underprovisioninprioryear (434) 331 (612) 45

11,906 25,352 9,635 24,416


Balance Sheet Income Statement The Group The Group

2009 2008 2009 2008 $’000 $’000 $’000 $’000

NOTE 7 – TAxATION (CONTINUED)(c) deferred inCome taxDEFERREDTAXLIABILITIES–THEGROUPDeferredtaxliabilitiescomprise:Differenceindepreciationandamortisationofproperty,plantandequipmentforaccountingandincometaxpurposes 8,897 7,607 1,110 3,635Differenceintreatmentofpropertyleaseforaccountingandtaxpurposes 1,514 1,675 (245) 1,675Investmentproperties 3,526 3,760 (234) (457)Available-for-saleinvestments 1,292 1,666 – –Interestandholdingchargescapitalised 924 740 184 (62)Fairvalueofcashflowhedges – 7 – –Expenditurecurrentlydeductiblefortaxbutdeferredandamortisedforaccountingpurposes 1,215 1,107 108 222Prepayments 101 121 (20) (79)Sharebasedpaymentsdeductiblefortaxbutdeferredandamortisedforaccountingpurposes 984 881 212 397Shareofjointventureentitytimingdifferences 539 1,140 (601) (8)Sundryitems 430 425 5 179

19,422 19,129

Less:Deferredtaxliabilitiesofthetax-consolidatedgroupoffsetagainstdeferredtaxassets (13,503) (11,567)

5,919 7,562

DEFERREDTAXASSETS–THEGROUPDeferredtaxassetscomprise:Provisionsandaccruedemployeebenefitsnotcurrentlydeductible 5,546 4,591 (889) 151Unrealisedforeignexchangelossesnotcurrentlydeductible 219 182 114 (26)Unrealisedforeignexchangedifferencesonhedgeofnetinvestment 588 4 – –Deferredrevenue 2,474 1,616 (710) 124Differenceindepreciationandamortisationofproperty,plantandequipmentandintangibleassetsforaccountingandincometaxpurposes 6,955 6,496 (298) (3,350)Leaseterminationpaymentnotcurrentlydeductible 420 630 210 210Shareofjointventureentitytimingdifferences 6,657 6,431 (226) (981)Taxlossescarriedforward 1,177 956 (170) (991)Capitallossesoffsettingunrealisedcapitalgains 3,680 – (3,680) 6,023Sundryitems 513 331 (182) 88

28,229 21,237 Less:Deferredtaxliabilitiesofthetax-consolidatedgroupoffsetagainstdeferredtaxassets (13,503) (11,567)

14,726 9,670

Deferred income tax – The Group (5,312) 6,750

68


Balance Sheet Income Statement Company Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

NOTE 7 – TAxATION (CONTINUED)DEFERREDTAXLIABILITIES–COMPANYDeferredtaxliabilitiescomprise:Share-basedpaymentsdeductiblefortaxbutdeferredandamortisedforaccountingpurposes 982 881 211 397Differenceindepreciationandamortisationofproperty,plantandequipmentforaccountingandincometaxpurposes – 5 (5) (8)Otherinvestments 1,291 1,666 – –

2,273 2,552 Less:Deferredtaxliabilitiesoffsetagainstdeferredtaxassets (2,094) (555)

179 1,997

DEFERREDTAXASSETS–COMPANYDeferredtaxassetscomprise: Provisionsandaccruedemployeebenefitsnotcurrentlydeductible 730 525 (205) (22)Capitallossesoffsettingunrealisedcapitalgains 1,291 – (1,291) 6,023Sundryitems 73 30 (43) 3

2,094 555 Less:Deferredtaxliabilitiesoffsetagainstdeferredtaxassets (2,094) (555)

– –

Deferred income tax – Company (1,333) 6,393

At30June2009,adeferredtaxliabilityrelatingtoinvestmentsinsubsidiarieshasnotbeenrecognisedbecausetheCompanycontrolswhethertheliabilitywillbeincurredanditissatisfiedthatitwillnotbeincurredintheforeseeablefuture.

The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

unreCognised deferred tax assetsRevenuelosses–foreign 36,463 36,513 – –Temporarydifferences–foreign 1,050 1,914 – –

37,513 38,427 – –

DeferredtaxassetshavenotbeenrecognisedinrespectoftheseitemsbecauseitisnotprobablethatfuturetaxableprofitwillbeavailableagainstwhichtheGroupcanutilisethebenefits.

IncludedinthedeferredtaxassetsnotrecognisedisthegrossvalueoftaxrevenuelossesarisinginGermanyof$121,542,000(2008:$121,709,000).TheavailabilityofthesetaxlossesissubjecttocertainutilisationlimitsandongoingavailabilitytestsunderGermantaxlaw.

At30June2009,thereisnorecogniseddeferredincometaxliability(2008:$nil)fortaxesthatwouldbepayableontheunremittedearningsofcertainoftheGroup’ssubsidiaries,associatesorincorporatedjointlycontrolledentities.

tax ConsolidationTheCompanyanditswholly-ownedAustralianresidentsubsidiarieshaveformedatax-consolidatedgroup.AmalgamatedHoldingsLimited(theCompany)istheheadentityforthetax-consolidatedgroup.Membersofthegrouphaveenteredintoataxsharingarrangementinordertoallocatecurrentanddeferredtaxamountstothewholly-ownedsubsidiariesusinga“groupallocationmethodapproach”.TheCompanyrecognisesdeferredtaxassetsarisingfromunusedtaxlosses(includingcapitallosses)ofthetax-consolidatedgrouptotheextentthatitisprobablethatfuturetaxableprofits(includingcapitalgains)ofthetax-consolidatedgroupwillbeavailableagainstwhichtheassetcanbeutilised.Inaddition,theagreementprovidesfortheallocationofincometaxliabilitiesbetweentheentitiesshouldtheheadentitydefaultonitstaxpaymentobligations.


NOTE 7 – TAxATION (CONTINUED)tax funding arrangement for members of the tax-Consolidated groupMembersofthetax-consolidatedgrouphaveenteredintoataxfundingarrangementwhichsetsoutthefundingobligationsofthetax-consolidatedgroupinrespectoftaxamounts.ThetaxfundingarrangementsrequirepaymentstoorfromtheCompanyasheadentityequaltothecurrenttaxliabilityorassetassumedbytheheadentityexcludinganytaxlossdeferredtaxassetassumedbytheheadentity.Themembersofthetax-consolidatedgrouphavealsoenteredintoavalidtaxsharingagreementunderthetaxconsolidationlegislationwhichsetsouttheallocationofincometaxliabilitiesbetweentheentitiesshouldtheheadentitydefaultonitstaxpaymentobligationsandthetreatmentofentitiesleavingthetax-consolidatedgroup.

Taxpaymentsunderthetaxfundingagreementarerecognisedasanincreaseordecreaseinthesubsidiaries’intercompanyaccountswiththeCompany.

total tax rate for per share amount date of franking percentage Cents $’000 payment credit franked

NOTE 8 – DIVIDENDSDividendsonordinarysharespaidbytheCompanyduringtheyearare:2009Final2008dividendpaid 19 24,554 25September2008 30% 100%Interim2009dividendpaid 11 14,344 19March2009 30% 100%

38,898

2008Final2007dividendpaid 18 23,061 20September2007 30% 100%Interim2008dividendpaid 11 14,202 13March2008 30% 100%

37,263

subseQuent eventsSincetheendofthefinancialyear,thedirectorsdeclaredthefollowingdividend:Final2009dividend 21 27,383 17September2009 30% 100%

Thefinancialeffectofthisfinaldividendinrespectoftheyearhasnotbeenbroughttoaccountinthefinancialstatementsfortheyearended30June2009andwillberecognisedinsubsequentfinancialreports.

Therearenoshareholders’dividendplansinoperation.

Company

2009 2008 $’000 $’000

franking Credit balanCeTheamountoffrankingcreditsavailableare:Frankingaccountbalanceasatthebeginningofthefinancialyearat30%(2008:30%) 134,419 110,723Frankingcreditsfromthepaymentofincometaxandincometaxpayable 20,897 39,065Frankingdebitsfromthepaymentofdividends (16,670) (15,970)Frankingcreditsfromthereceiptofdividends 226 601

Theamountoffrankingcreditsavailableforfuturereportingperiods 138,872 134,419

Theimpactonthefrankingaccountofdividendsproposedordeclaredbeforethefinancialreportwasauthorisedforissuebutnotrecognisedasadistributiontoequityholdersduringtheperiodistoreducethebalanceby$11,736,000(2008:$10,523,000).

Theabilitytoutilisefrankingcreditsisdependentupontherebeingsufficientavailableprofitstodeclaredividends.

Inaccordancewiththetaxconsolidationlegislation,theCompany,astheheadentityinthetax-consolidatedgroup,hasalsoassumedthebenefitofthefrankingcreditsavailable.

70


NOTE 9 – EARNINGS PER SHAREClassifiCation of seCurities as potential ordinary sharesInthepriorperiodoptionsoutstandingundertheManagementShareOptionPlanthathadadilutivepotentialwereclassifiedaspotentialordinarysharesandincludedinthecalculationofdilutedearningspershare.Therewerenomanagementshareoptionsonissueat30June2009. The Group

2009 2008 $’000 $’000

earnings reConCiliationProfitaftertaxfromcontinuingoperations 65,622 63,157Less:Profit/(loss)aftertaxattributabletominorityinterest 6 (146)

Basicearnings–continuingoperations 65,628 63,011Basicearnings–discontinuedoperations 3,855 36,358

Earnings attributable to members of the Company 69,483 99,369

number number

Weightedaveragenumberofordinarysharesusedasthedenominatornumberforbasicearningspershare 129,911,079 128,522,733Effectofmanagementshareoptionsonissue – 322,090

Number for diluted earnings per share 129,911,079 128,844,823

The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

NOTE 10 – CASH AND CASH EQUIVALENTSCashatbankandonhand 23,227 28,472 1,186 176

DetailsrelatingtocashatbankandonhandandtheGroup’sexposuretointerestrateriskandasensitivityanalysisforfinancialassetsandliabilitiesaredisclosedinNote28.

The Group Company

2009 2008 2009 2008 note $’000 $’000 $’000 $’000

NOTE 11 – RECEIVAbLESCurrentTradereceivables 27,347 20,275 – –Less:impairmentoftradereceivables (1,906) (2,223) – –

25,441 18,052 – –

Otherreceivables 10,911 12,592 23 –Receivablefromassociates – – – 357Receivablefromjointlycontrolledentities 2,018 3,710 – –

38,370 34,354 23 357

non-CurrentTradereceivables 143 261 – –Receivablefromassociates 43 43 – –Receivablefromcontrolledentities 38 – – 188,389 191,725Presentvalueofloansprovidedundertheemployeeshareplan 330 349 330 349

516 653 188,719 192,074


NOTE 11 – RECEIVAbLES (CONTINUED) Tradereceivablesarenon-interestbearingandaregenerallyon30-90dayterms.

TheGroup’sexposuretocreditandcurrencyrisksrelatedtotradeandotherreceivablesaredisclosedinNote28.

AllowancesaremadeforimpairmentlossesuntilsuchtimethattheGroupissatisfiedthatnorecoveryoftheamountowingispossible;atthatpoint,theamountconsideredirrecoverableiswrittenoffagainsttheassetdirectly.

Asat30June2009,tradereceivableswithavalueof$1,906,000(2008:$2,223,000)wereimpairedandfullyprovidedfor.Movementsintheallowancefortradereceivablesareasfollows:

The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

Balanceat1July 2,223 1,774 – –Chargefortheyear 1,264 568 – –Provisionnolongerrequired (1,837) (155) – –Netforeigncurrencydifferencesontranslationofforeignoperations 256 36 – –

1,906 2,223 – –

Asat30June2009,theanalysisoftradereceivablesfortheGroupthatwerepastduebutnotimpairedisasfollows:

The Group

2009 2008 $’000 $’000

Notpastduenorimpaired 13,291 14,575Lessthan30daysoverdue 6,105 1,347Morethan30daysoverduebutlessthan90daysoverdue 3,165 419Morethan90daysoverdue 2,880 1,711

25,441 18,052

Allotherreceivablesdonotcontainimpairedassetsandarenotpastdue.Basedonthecredithistoryoftheseotherreceivables,itisexpectedthattheseamountswillberecoveredwhendue.

The Group Company

2009 2008 2009 2008 note $’000 $’000 $’000 $’000

NOTE 12 – INVENTORIESRawmaterialsandstores 2,408 2,984 – –Workinprogress 752 3,472 – –Finishedgoods 7,633 5,484 – –Landunderdevelopment–heldforsale 2,983 – – –

Totalinventoriesatthelowerofcostandnetrealisablevalue 13,776 11,940 – –

NOTE 13 – OTHER CURRENT ASSETSPrepayments 4,745 3,991 168 68Derivativesatfairvalue 28 – 397 – –Sundry 229 284 – –

4,974 4,672 168 68

72


The Group Company

2009 2008 2009 2008 note $’000 $’000 $’000 $’000

NOTE 14 – OTHER FINANCIAL ASSETSInvestments(unquoted):Controlledentities 34 – – 37,189 37,189Associates – – – 1,500Otherentities 312 502 – –

312 502 37,189 38,689

IntheCompanyfinancialstatements,investmentsinassociatesareaccountedforatcostlessimpairmentlossesrecognised,whereasintheGroupfinancialstatementsinvestmentsinassociatesareaccountedforusingtheequitymethod(referNote16).

The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

NOTE 15 – AVAILAbLE-FOR-SALE FINANCIAL ASSETSInvestmentsinlistedcompany 9,362 10,610 9,362 10,610

TheGroup’sinvestmentisinacompanylistedontheASX.A10%increaseinthemarketpriceofthesharesinthiscompanyatthereportingdatewouldhaveincreasedequityby$655,000aftertax(2008:anincreaseof$743,000);anequalchangeintheoppositedirectionwouldhavedecreasedequityby$655,000aftertax(2008:adecreaseof$743,000).

The Group Company

2009 2008 2009 2008 note $’000 $’000 $’000 $’000

NOTE 16 – INVESTMENTS ACCOUNTED FOR USING THE EQUITy METHODAssociates 35 16,304 14,700 – –Jointlycontrolledentities 36 101,446 103,978 – –

117,750 118,678 – –

TheGroupaccountsforinvestmentsinassociatesandjointlycontrolledentitiesusingtheequitymethod.

The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

NOTE 17 – PROPERTy, PLANT AND EQUIPMENTfreehold land and buildingsAtcost 404,881 355,063 – –Less:Accumulateddepreciation (53,682) (49,646) – –

351,199 305,417 – –

land subJeCt to long term leasesAtcost–subjecttolongtermlease 56 56 – –Atcost–subjecttolongtermfinancelease 8,037 7,582 – –

8,093 7,638 – –


The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

NOTE 17 – PROPERTy, PLANT AND EQUIPMENT (CONTINUED)buildings and improvements subJeCt to long term leasesAtcost–onlandsubjecttolongtermlease 43,685 43,745 – –Atcost–otherleaseholdimprovements 28,039 27,588 – –Atcost–subjecttolongtermfinancelease 26,034 24,561 – –

97,758 95,894 – –Less:Accumulatedamortisation (37,630) (34,489) – –

60,128 61,405 – –

resort apartments and share of Common propertyAtcost 15,513 – – –Less:Accumulateddepreciation – – – –

15,513 – – –

Capital Work in progressAtcost 13,834 7,478 – 5

plant and eQuipmentAtcost 399,463 358,389 937 899Less:Accumulateddepreciation (286,479) (258,236) (860) (810)

112,984 100,153 77 89

leased plant and eQuipmentAtcost – 2,088 – –Less:Accumulatedamortisation – (1,422) – –

– 666 – –

Total property, plant and equipment at net book value 561,751 482,757 77 94

reConCiliationsSummariesofthemovementsincarryingamountsofeachclassofproperty,plantandequipmentbetweenthebeginningandendoftheyeararesetoutbelow:

freehold land and buildingsAtcostatthebeginningoftheyear 355,063 351,474 – –Less:Accumulateddepreciationatthebeginningoftheyear (49,646) (46,245) – –

Netbalanceatthebeginningoftheyear 305,417 305,229 – –Additions 52,513 5,768 – –Transfertoinvestmentproperties (1,838) – – –Transferfromcapitalworkinprogress 4,668 783 – –Transfertoinventories (535) – – –Disposals (23) (19) – –Netforeigncurrencydifferencesontranslationofforeignoperations 276 (2,669) – –Depreciation (3,939) (3,675) – –Impairmentwrite-downs (5,340) – – –

Netbalanceattheendoftheyear 351,199 305,417 – –

74


The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

NOTE 17 – PROPERTy, PLANT AND EQUIPMENT (CONTINUED)land subJeCt to long term leasesAtcostatthebeginningoftheyear 7,638 7,379 – –Less:Accumulateddepreciationatthebeginningoftheyear – – – –

Netbalanceatthebeginningoftheyear 7,638 7,379 – –Netforeigncurrencydifferencesontranslationofforeignoperations 455 259 – –


buildings and improvements subJeCt to long term leases Atcostatthebeginningoftheyear 95,894 100,045 – –Less:Accumulateddepreciationatthebeginningoftheyear (34,489) (41,084) – –

Netbalanceatthebeginningoftheyear 61,405 58,961 – –Additions 12 443 – –Transferfromcapitalworkinprogress 360 4,507 – –Netforeigncurrencydifferencesontranslationofforeignoperations 1,350 503 – –Disposals (3) – – –Depreciation (2,996) (3,009) – –


resort apartments and share of Common propertyAtcostatthebeginningoftheyear – – – –Less:Accumulateddepreciationatthebeginningoftheyear – – – –

Netbalanceatthebeginningoftheyear – – Additions 15,513 – – –

Balanceattheendoftheyear 15,513 – – –

Capital Work in progressBalanceatthebeginningoftheyear 7,478 5,198 5 –Netforeigncurrencydifferencesontranslationofforeignoperations (7) (52) – –Additions 19,684 13,704 – 5Transferfromcapitalworksinprogress (10,873) (11,372) (5) –Transfertoinventories (2,448) – – –

Balanceattheendoftheyear 13,834 7,478 – 5


The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

NOTE 17 – PROPERTy, PLANT AND EQUIPMENT (CONTINUED)plant and eQuipmentAtcostatthebeginningoftheyear 358,389 343,466 899 854Less:Accumulateddepreciationatthebeginningoftheyear (258,236) (243,026) (810) (764)

Netbalanceatthebeginningoftheyear 100,153 100,440 89 90Additions 26,246 12,973 34 45Transfertoinvestmentproperties (41) – – –Transferfromcapitalworkinprogress 5,817 6,160 5 –Transferfromleasedplantandequipment 509 – – –Netforeigncurrencydifferencesontranslationofforeignoperations 2,216 696 – –Disposals (408) (268) – –Reclassificationtosoftware – (364) – –Depreciation (21,467) (19,809) (51) (46)Impairmentwrite-back 240 1,481 – –Impairmentwrite-downs (281) (1,156) – –

Netbalanceattheendoftheyear 112,984 100,153 77 89

leased plant and eQuipmentAtcostatthebeginningoftheyear 2,088 2,088 – –Less:Accumulatedamortisationatthebeginningoftheyear (1,422) (1,201) – –

Netbalanceatthebeginningoftheyear 666 887 – –Transfertoplantandequipment (509) (105) – –Amortisation (157) (116) – –

Netbalanceattheendoftheyear – 666 – –

independent valuations of interest in land and buildingsInassessingcurrentvaluesfortheGroup’sinterestinlandandbuildingsandintegralplantandequipment,includinglongtermleaseholdlandandimprovements,directorshaverelieduponindependentvaluationsfromregisteredqualifiedvaluers.Exceptforinvestmentproperties,whicharerevaluedeveryhalfyear(referNote18),valuationsaregenerallycarriedoutonaprogressivethreeyearcycle.Thevaluationofanumberofproperties,dueforvaluationin2010,wasbroughtforwardto2009.ThelastvaluationshavebeencompletedasatJune2009andJune2007.

The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

most reCent valuations of interest in land and buildings, exCluding investment propertiesDuetothediversityoftheGroup’soperations,valuationshavebeenpreparedonahighestandbestalternateuseorexistingusebasis.Asummary,byyearofthelastvaluation,issetoutasfollows:

HIGHESTANDBESTALTERNATEUSEIndependentvaluation –2009 61,250 – – –Independentvaluation –2007 – 83,000 – –

EXISTINGUSEIndependentvaluation –2009 426,514 – – –Independentvaluation –2007 219,559 424,385 – –Independentvaluation –2006 – 227,278 – –

Balancecarriedforward 707,323 734,663 – –

76


The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

NOTE 17 – PROPERTy, PLANT AND EQUIPMENT (CONTINUED)Balancebroughtforward 707,323 734,663 – –

LANDANDBUILDINGSNOTINDEPENDENTLYVALUEDAcquisitioncostofhotelpropertyacquiredinJune2009notyetindependentlyvalued 20,050 – – –

727,373 734,663 – –

Theabovevaluationsdonottakeintoaccountthepotentialimpactofcapitalgainstax.

Thewritten-downbookvalueofplantandequipmentandwhicharedeemedintegraltolandandbuildings,hasbeendeterminedtototalapproximately$68,000,000asat30June2009(2008:$49,000,000).

impairment losses reCognisedLANDANDBUILDINGSDuringtheyearended30June2009,ageneraldeclineinthetradingperformanceofhotelpropertiescausedtheGrouptoassesstherecoverableamountforhotelpropertiesownedbytheGroup.Hotelpropertiesaretreatedasseparatecash-generatingunitsandtheirrecoverablevalueswereestimatedbasedontheirvalueinuse.Indeterminingtheestimatedvalueinuse,discountratesintherangeof11.4%to11.9%perannumwereused.Cashflowswereprojectedbasedonactualoperatingresults,withlongertermcashflowsextrapolatedusingaverageexpectedgrowthratesintherangeof1.5%to2.5%perannum.Asaresultoftheseassessments,impairmentlossestotalling$3,028,000wererecognisedinrespectoftwohotelproperties.

Giventhelonglifenatureoftheseassets,theestimatesoftheirrecoverablevalueinuseareparticularlysensitivetochangesincertainkeyassumptions.Althoughallassumptionsusedareconsideredtobeappropriateatthistime,anincreaseofonepercentagepointinthediscountrate,forthehotelpropertiesassessed,wouldincreasetheimpairmentlossby$6,348,000.Aonepercentagepointdecreaseinthediscountratewouldreducetheimpairmentlossby$2,929,000.A10%decreaseintheforecastearningswouldincreasetheimpairmentlossby$6,368,000anda10%increaseinforecastearningswoulddecreasetheimpairmentlossby$2,645,000.

Afurtherimpairmentlossof$2,312,000wasrecognisedintheyearto30June2009foraretailpropertyownedbytheGroup.Theassessedrecoverablevaluewasdeterminedusingestimatedcurrentmarketrentals,actualcostsandacapitalisationrateof7%.

PLANTANDEQUIPMENTAnimpairmentlossof$281,000wasrecognisedduringtheyearended30June2009forplantandequipmentatacinemasiteinGermanywhichisduetocloseintheshortterm.

Duringthepriorfinancialyear,adeclineinthetradingperformanceatanumberofcinemasitesinGermany(CinemaExhibitionInternationalsegment)resultedinareassessmentoftherecoverableamountofplantandequipmentatthosecinemasites.Basedonthisassessment,thecarryingamountofplantandequipmentatanumberofcinemasiteswaswrittendownby$1,156,000inthe2008financialyear.Theestimatedrecoverableamountswerebasedontheplantandequipmentvalueinuse,representingthepresentvalueoffuturecashflowsexpectedtobederivedfromtheassets,determinedusingdiscountratesintherangeof10%to12.75%perannum.

Duringtheperiod,animpairmentwrite-downmadeinapriorperiodforacinemasiteinGermanywaspartiallywrittenbackby$240,000(2008:write-backof$1,481,000madeforacinemasiteinGermany).Thesewrite-backsweredeemedappropriateduetoimprovedcashflowgeneratedbythesiteresultingfromlowerrentalcostsandageneralimprovementintradingperformance.

seCurityThefollowingassets,whosecarryingvaluesarelistedbelow,aresubjecttomortgagesecuritytosecuretheGroup’sbankloanfacilities.ReferNote23.

The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

Freeholdlandandbuildings 161,411 159,188 – –Freeholdlandandbuildingsclassifiedasinvestmentproperties 27,700 28,500 – –

189,111 187,688 – –


land and buildings subJeCt to finanCe leaseTheGroupleasesapropertyunderafinanceleaseagreement.Attheendofthelease,theGrouphastheoptiontopurchasethepropertyatnoadditionalcost.Ifthisoptionisnotexercised,theGroupcanoccupythepremisesforafurtherfiveyearperiodrent-free.At30June2009,thenetcarryingamountofthepropertywas$29,605,000(2008:$28,668,000).Theleasedpropertysecuresleaseobligations.

The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

NOTE 18 – INVESTMENT PROPERTIES freehold land and buildingsAtfairvalue 29,600 28,500 – –

Summaryofmovementsinbalance: Balanceatthebeginningoftheyear 28,500 29,900 – –Transferfromproperty,plantandequipment 1,879 – – –Revaluationincrementontransferfromproperty,plantandequipment 267 – – –Fairvaluedecrementsduringtheyear (1,030) (1,400) – –Other (16) – – –

Balanceattheendoftheyear 29,600 28,500 – –

Thecarryingamountofinvestmentpropertiesisthefairvalueofthepropertyasdeterminedbyaregisteredqualifiedindependentvaluer.FairvaluesweredeterminedhavingregardtorecentmarkettransactionsforsimilarpropertiesinthesamelocationastheGroup’sinvestmentproperties.

Investmentpropertiescompriseanumberofcommercialpropertiesthatareleasedtothirdpartiesandwhichareheldtoderiverentalincomeorcapitalappreciationorboth.Eachoftheleasesforinvestmentpropertiescontainsaninitialnon-cancellableperiodofbetweenfiveto15years.Subsequentrenewalsarenegotiatedwiththelessee.Nocontingentrentsarechargedfortheseinvestmentproperties.

Duringthefinancialyearended30June2009,$2,455,000(2008:$2,219,000)wasrecognisedasrentalincomeforinvestmentpropertiesintheIncomeStatement,with$986,000(2008:$730,000)incurredinrespectofdirectcosts,including$135,000(2008:$100,000)forrepairsandmaintenance.

The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

NOTE 19 – GOODwILL AND OTHER INTANGIbLE ASSETSGoodwill 5,316 5,064 – –Constructionrights 1,388 1,388 – –Liquorlicences 185 185 – –

6,889 6,637 – –

Managementrights–includinginitialcontributions 6,712 6,097 – –Less:Accumulatedamortisation (1,771) (1,129) – –

4,941 4,968 – –

Software 5,813 5,090 141 115Less:Accumulatedamortisation (2,787) (1,846) (103) (58)

3,026 3,244 38 57

14,856 14,849 38 57

78


NOTE 19 – GOODwILL AND OTHER INTANGIbLE ASSETS (CONTINUED)reConCiliationsSummariesofthecarryingamountmovementsofeachclassofintangibleassetsbetweenthebeginningandendoftheyeararesetoutbelow:

Construction liquor management goodwill rights licences rights software $’000 $’000 $’000 $’000 $’000

2009 – the group Grossbalanceatthebeginningoftheyear 5,064 1,388 185 6,097 5,090Accumulatedamortisationandimpairmentlossesatthebeginningoftheyear – – – (1,129) (1,846)

Netbalanceatthebeginningoftheyear 5,064 1,388 185 4,968 3,244Acquisitionsandinitialcontributions – – – 611 828Amortisation – – – (642) (1,213)Netforeigncurrencydifferencesontranslationofforeignoperations 252 – – 4 167

Netbalanceattheendoftheyear 5,316 1,388 185 4,941 3,026

2008 – the groupGrossbalanceatthebeginningoftheyear 4,917 1,388 185 5,865 3,068Accumulatedamortisationandimpairmentlossesatthebeginningoftheyear – – – (413) (1,280)

Netbalanceatthebeginningoftheyear 4,917 1,388 185 5,452 1,788Acquisitionsandinitialcontributions – – – 230 2,157Transferfromplantandequipment – – – – 364Amortisation – – – (715) (1,073)Netforeigncurrencydifferencesontranslationofforeignoperations 147 – – 1 8

Netbalanceattheendoftheyear 5,064 1,388 185 4,968 3,244

impairment losses reCognisedNoimpairmentlossesinrelationtogoodwillhavebeenrecognisedintheyearended30June2009(2008:$nil).

impairment tests for Cash-generating units Containing goodWillThefollowingunitshavesignificantcarryingamountsofgoodwill: The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

Cinemajointventure–CinemaExhibitionInternational 4,470 4,218 – –Multipleunitswithoutsignificantgoodwill 846 846 – –

5,316 5,064 – –

TherecoverablevalueoftheGroup’sshareofacinemajointventureinGermanyisbasedonavalueinusecalculation.Thiscalculationusescashflowprojectionsbasedonactualoperatingresultsandthethreeyearplan,withcashflowsbeyondthethreeyearperiodbeingprojectedusinga2%perannumgrowthratewhichisconsideredappropriategiveneconomicindicatorsandtheexpectedlongtermincreaseinrevenueandoperatingcostsinthatmarket.Apre-taxdiscountrateof12.3%perannumhasbeenusedindiscountingtheprojectedcashflows.


The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

NOTE 20 – OTHER NON-CURRENT ASSETSSecuritydepositsinrespectoflongtermoperatingleases 5,062 4,985 – –Wildlife 640 640 – –Operatingleasepaymentspaidinadvance 1,588 – – –Sundry 1,968 1,252 – –

9,258 6,877 – –

NOTE 21 – PAyAbLESCurrentTradecreditors 30,622 30,930 – –Othercreditorsandaccruals 46,694 36,965 1,165 766

77,316 67,895 1,165 766

non-CurrentPayablestoassociates 2 2 – –

TheGroup’sexposuretocurrencyandliquidityriskrelatedtotradeandotherpayablesisdisclosedinNote28.

The Group Company

2009 2008 2009 2008 note $’000 $’000 $’000 $’000

NOTE 22 – INTEREST bEARING LIAbILITIES AND bORROwINGSCurrentINTERESTBEARINGLIABILITIESANDBORROWINGSBankloans –secured 23 700 5,842 – –Loansfromothercompanies –unsecured – 393 – –Loansfromassociates –unsecured 901 848 – –Loansfromothercompanies –secured – 458 – –Leaseliabilities –secured 30 4,902 4,405 – –Deferredfinancingcosts (248) (242) – –

6,255 11,704 – –

NON-INTERESTBEARINGLOANSLoansfromothercompanies –unsecured 459 492 – –

6,714 12,196 – –

non-CurrentINTERESTBEARINGLIABILITIESANDBORROWINGSBankloans –secured 23 67,093 13,931 – –Leaseliabilities –secured 30 4,925 9,685 – –Loansfromcontrolledentities 38 – – – 14,153Deferredfinancingcosts (490) (744) – –

71,528 22,872 – 14,153

NON-INTERESTBEARINGLOANSLoansfromothercompanies –unsecured 1,724 2,020 – –

73,252 24,892 – 14,153

TheGroup’sexposuretocurrencyandliquidityriskrelatedtointerestbearingliabilitiesandborrowingsisdisclosedinNote28.

80


NOTE 23 – FINANCING ARRANGEMENTSBANKDEBT–SECUREDTheGroup’ssecuredbankdebtfacilitiescomprisethefollowing:

• A$160,000,000ofrevolvingmulti-currencyloanfacilities;

• A$70,000,000ofcashadvancefacilities;

• A$38,750,000ofcreditsupportfacilities(fortheissueoflettersofcreditandbankguarantees);and

• AtotalofA$5,050,000inoverdraftlimitstosupportitstransactionalbankingfacilities.

Theabovefacilitiesmatureon10July2012.ThesefacilitiesaresupportedbyinterlockingguaranteesfrommostGroupentitiesandaresecuredbyspecificpropertymortgages.Debtdrawnunderthesefacilitiesbearsinterestattherelevantinter-bankbenchmarkreferencerateplusamarginofbetween0.45%to0.90%.At30June2009,theGrouphaddrawn$67,093,000(2008:$13,931,000)underthedebtfacilities,ofwhich62.7%wassubjecttointerestrateswapsusedforhedging.

OTHERLOANS–INTERNATIONALInadditiontotheabovefacilities,wholly-ownedsubsidiariesinGermanyhaveworkingcapitalfacilitiestotalling€9,000,000(A$15,649,000)(securedbyaletterofcreditandbankguaranteesdrawnunderthecreditsupportfacilityinAustralia),andadditionalworkingcapitalfacilitiestotalling€5,000,000(A$8,694,000)supportedbytheCompany.Debtdrawnunderthesefacilitiesbearsinterestattherelevantinter-bankbenchmarkreferencerateplusamarginofbetween0.85%to2.0%.Thesefacilitiesaresubjecttoannualreview.At30June2009,theGrouphaddebtdrawnof$700,000(2008:$5,842,000).

FINANCELEASELIABILITY–INTERNATIONALAwholly-ownedsubsidiaryinGermanyalsohasapropertyfinanceleasewithabalanceoutstandingof$9,827,000(2008:$13,849,000).Theleasebearsinterestattherelevantinter-bankbenchmarkreferencerateplusamarginof1.75%perannumandasat30June2009hadinterestrateswapsusedforhedgingapplyingto73.9%ofthebalanceoutstanding(alsoreferNote30).

The Group Company

2009 2008 2009 2008 note $’000 $’000 $’000 $’000

NOTE 24 – PROVISIONSCurrentEmployeebenefits 29 11,932 10,794 2,262 1,581Onerouscontracts – 1,108 – –Insurancelosscontingenciesandotherclaims 757 348 – –

12,689 12,250 2,262 1,581

non-CurrentEmployeebenefits 29 2,019 1,988 175 170Onerouscontracts – 113 – –Decommissioningofleaseholdimprovements 7,559 7,157 – –

9,578 9,258 175 170

reConCiliationsReconciliationsofthecarryingamountsofeachclassofprovisions,exceptforemployeebenefits,aresetoutbelow:

onerous ContraCtsCarryingamountatthebeginningoftheyear 1,221 5,469 – –Provisionsutilised (686) (1,958) – –Provisionsforleasecostsonclosedcinemasitesreleased (445) (2,266) – –Provisionssurplusleasedspacereleased (120) (124) – –Netforeigncurrencydifferencesontranslationofforeignoperations 30 100 – –

Carryingamountattheendoftheyear – 1,221 – –


The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

NOTE 24 – PROVISIONS (CONTINUED)

insuranCe loss ContingenCies and other Claims Carryingamountatthebeginningoftheyear 348 586 – –Paymentsmade (1) (215) – –Provisionsmade 473 9 – –Reductionmade (63) (32) – –

Carryingamountattheendoftheyear 757 348 – –

deCommissioning of leasehold improvementsCarryingamountatthebeginningoftheyear 7,157 6,699 – –Provisions(reduced)/made (126) 57 – –Notionalinterest 151 190 – –Netforeigncurrencydifferencesontranslationofforeignoperations 377 211 – –

Carryingamountattheendoftheyear 7,559 7,157 – –

onerous ContraCtsTheonerouscontractsprovisionrelatedtoalongtermnon-cancellableoperatingleaseinrespectofahotelpropertyandacinemasiteinGermanythathasbeenclosed.Inrespecttothehotellease,therehadbeenachangeinmarketconditionswhichhadresultedintheleasebeingdeemedonerousandaprovisionwasraisedfortheforecastnetdeficitresultingfromobligationsunderthelease.Boththehotelandcinemaleaseswereconcludedduringthefinancialyearandnoonerouscontractsprovisionremainsat30June2009.Forfurtherdetailonthebasisofaccounting,referNote1(q)(ii).

insuranCe loss ContingenCies and other ClaimsTheprovisionrelatestoestimatedcoststobeincurredinrespectofvariousclaimsthatareexpectedtobesettledwithin12monthsofthebalancedate.

deCommissioning of leasehold improvementsThedecommissioningofleaseholdimprovementsprovisionhasbeenraisedinrespectof“make-good”obligationsunderlongtermleasecontractsforcinemasites.Indeterminingtheprovision,anassessmenthasbeenmade,foreachlocation,ofthelikelihoodthatadecommissioningcostwillbeincurredinthefutureandwhereapplicable,thelevelofcoststobeincurred.Uncertaintyexistsinestimatingthelevelofcoststobeincurredinthefuturebecauseofthelongtermnatureofcinemaleases.ThebasisofaccountingissetoutinNote1(q)(iii).

The Group Company

2009 2008 2009 2008 note $’000 $’000 $’000 $’000

NOTE 25 – OTHER LIAbILITIESCurrent Derivativesatfairvalue 28 1,221 13 – –Contractdepositsreceivedinadvance 7,252 – – –

8,473 13 – –

non-CurrentDerivativesatfairvalue 28 840 – – –

82


The Group Company

2009 2008 2009 2008 shares shares $’000 $’000

NOTE 26 – SHARE CAPITALshare CapitalFullypaidordinaryshares 130,396,203 129,136,106 101,353 98,809

movements in share CapitalBalanceatthebeginningoftheyear 129,136,106 128,085,624 98,809 97,030SharesissuedundertheManagementShareOptionPlan 733,500 577,300 2,544 1,779PerformancesharesissuedundertheExecutivePerformanceSharePlan 526,597 473,182 – –

Balanceattheendoftheyear 130,396,203 129,136,106 101,353 98,809

share Capital Consists of:Ordinaryshares 128,987,262 128,125,334Employeeshareplan 176,520 177,220Taxexemptshareplan 18,455 14,948Performanceshares–restrictedandheldintrust 1,213,966 818,604

Balanceattheendoftheyear 130,396,203 129,136,106

ordinary sharesTheCompanydoesnothaveauthorisedcapitalorparvalueinrespectofitsissuedshares.

OrdinarysharesentitletheholdertoparticipateindividendsandtheproceedsonwindingupoftheCompanyinproportiontothenumberofandamountspaidonthesharesheld.Onashowofhands,everyholderofordinarysharespresentatameetinginpersonorbyproxy,isentitledtoonevote,anduponapolleachshareisentitledtoonevote.

share buy-baCkThereisnocurrenton-marketbuy-back.

dividend reinvestment planThedividendreinvestmentplanhasbeensuspendedsince1993.

employee and exeCutive share plansInformationrelatingtotheplansissetoutinNote29.

optionsInformationrelatingtotheManagementShareOptionPlan,includingdetailsofoptionsissued,exercisedandlapsedduringthefinancialyearandoptionsoutstandingattheendofthefinancialyear,issetoutinNote29.


The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

NOTE 27 – RESERVES AND RETAINED EARNINGSreservesAvailable-for-saleinvestmentsrevaluation 6,598 7,471 6,598 7,471Investmentpropertyrevaluation 3,820 3,553 – –Hedging (1,473) 380 – –Share-basedpayments 4,581 3,012 4,581 3,012Foreigncurrencytranslation (7,359) (9,239) – –

6,167 5,177 11,179 10,483

movements in reserves AVAILABLE-FOR-SALEINVESTMENTSREVALUATIONRESERVE Balanceatthebeginningoftheyear 7,471 9,628 7,471 9,628Movementinfairvalue–netoftax (873) (2,157) (873) (2,157)

Balanceattheendoftheyear 6,598 7,471 6,598 7,471

investment property revaluation reserveBalanceatthebeginningoftheyear 3,553 3,553 – –Transferonreclassificationofpropertytoinvestmentproperty 267 – – –

Balanceattheendoftheyear 3,820 3,553 – –

hedging reserve Balanceatthebeginningoftheyear 380 1,172 – –Movementinfairvalueofcashflowhedginginstruments–netoftax (1,853) (1,208) – –Transfertoretainedearnings – 416 – –

Balanceattheendoftheyear (1,473) 380 – –

share-based payments reserveBalanceatthebeginningoftheyear 3,012 1,444 3,012 1,444AmountrecognisedinIncomeStatementasemployeeexpense 1,258 1,410 569 977Amountchargedtorelatedentities 166 76 855 509Otheradjustments 145 82 145 82


foreign CurrenCy translation reserveBalanceatthebeginningoftheyear (9,239) (4,374) – –Currencytranslationadjustmentoncontrolledforeignentities’financialstatements (290) (2,916) – –Shareofincrement/(decrement)onforeigncurrencytranslationreserveofassociates’netassets 2,228 (1,788) – –Transfertoretainedearnings (58) (161) – –

Balanceattheendoftheyear (7,359) (9,239) – –

available-for-sale investments revaluation reserveThisreserveincludesthecumulativenetchangeinthefairvalueofavailable-for-saleinvestments.AmountsarerecognisedintheIncomeStatementwhentheassociatedassetsaresoldorimpaired.

investment property revaluation reserveThisreserverelatestopropertythathasbeenreclassifiedasaninvestmentpropertyandrepresentsthecumulativeincreaseinfairvalueofthepropertyatthedateofreclassification.

84


NOTE 27 – RESERVES AND RETAINED EARNINGS (CONTINUED)hedging reserveThehedgingreservecomprisestheeffectiveportionofthecumulativenetchangeinthefairvalueofcashflowhedginginstrumentsrelatedtohedgedtransactionsthathavenotyetoccurred.

share-based payments reserveThisreserveincludesthecumulativefairvalueofmanagementshareoptionsnotexercisedandthefairvalueoftheexecutiveperformanceshareswhichhavebeenrecognisedasanemployeeexpenseintheIncomeStatement.

foreign CurrenCy translation reserveTheforeigncurrencytranslationreserverecordstheforeigncurrencydifferencesarisingfromthetranslationofforeignoperations,thetranslationoftransactionsthathedgetheGroup’snetinvestmentinaforeignoperationorthetranslationofforeigncurrencymonetaryitemsformingpartofthenetinvestmentinaforeignoperationandtheGroup’sshareofassociates’incrementordecrementintheforeigncurrencytranslationreserve.RefertoaccountingpolicyNote1(d).

The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

retained earningsBalanceatthebeginningoftheyear 460,832 398,981 89,750 84,991Transferfromhedgingreserve – (416) – –Transferfromforeigncurrencytranslationreserve 58 161 – –ProfitattributabletomembersoftheCompany 69,483 99,369 59,962 42,022Dividendspaidduringtheyear (38,898) (37,263) (38,898) (37,263)


NOTE 28 – FINANCIAL RISK MANAGEMENTTheCompany’sandGroup’sexposuretofinancialrisks,objectives,policiesandprocessesformanagingtherisksincludingmethodsusedtomeasuretherisks,andthemanagementofcapitalarepresentedbelow.

TheCompany’sandGroup’sactivitiesexposeittoofthefollowingfinancialrisks:

• creditrisk;

• liquidityrisk;and

• marketrisk,includingcurrencyriskandinterestraterisk.

TheBoardhasoverallresponsibilityfortheoversightoftheriskmanagementframework.RiskmanagementpoliciesareestablishedtoidentifyandanalysetherisksfacedbytheCompanyandGroup,tosetappropriaterisklimitsandcontrols,andtomonitorrisksandadherencetolimits.RiskmanagementpoliciesandsystemsarereviewedregularlyandmodifiedasappropriatetoreflectchangesinmarketconditionsandtheCompany’sandGroup’sactivities.

TheAuditCommitteeoverseeshowmanagementhasestablishedandmonitorsinternalcomplianceandcontrolsystemsandtoensuretheappropriateandeffectivemanagementoftheaboverisks.TheAuditCommitteeisassistedinitsoversightrolebytheInternalAuditor.TheInternalAuditorundertakesreviewsofriskmanagementcontrolsandproceduresinaccordancewithanannualplanapprovedbytheAuditCommittee.TheresultsoftheseInternalAuditreviewsarereportedtotheAuditCommittee.

Credit riskCreditriskarisesfromtradeandotherreceivablesoutstanding,cashandcashequivalents,derivativefinancialinstrumentsanddepositswithbanksandfinancialinstitutions.ItistheriskoffinanciallosstotheGroupifacustomerorcounterpartytothefinancialinstrumentfailstomeetitscontractualobligations,andarisesprincipallyfromtheGroup’stradereceivablesfromcustomers.FortheCompany,itarisesprincipallyfromreceivablesduefromsubsidiaries.

TRADEANDOTHERRECEIVABLESTheCompany’sandGroup’sexposuretocreditriskisinfluencedmainlybytheindividualcharacteristicsofeachcustomer.ThedemographicsoftheGroup’scustomerbase,includingthedefaultriskoftheindustryandcountryinwhichcustomersoperate,havelessofaninfluenceoncreditrisk.

Exposuretocreditriskismonitoredonanongoingbasis.ManagementhasestablishedacreditpolicyunderwhicheachnewcustomerrequiringcreditoveracertainamountisanalysedindividuallyforcreditworthinessbeforetheGroup’sstandardpaymentandconditionsareoffered.Purchaselimitsareestablishedformajorcustomers,whichrepresentsthemaximumopenamountwithoutrequiringadditionalapprovalfrommanagement.

TheCompanyandGrouphaveestablishedanallowanceforimpairmentthatrepresentstheirestimateofincurredlossesinrespectoftradeandotherreceivables.Themaincomponentofthisallowancerelatestoexposuresforspecificdebtors.


NOTE 28 – FINANCIAL RISK MANAGEMENT (CONTINUED)INVESTMENTSInvestmentsofsurpluscashanddepositsandderivativefinancialinstrumentsarewithbankswithhighcreditratings.Giventheirhighcreditratings,managementdoesnotexpectanycounterpartytofailtomeetitsobligations.

Atthebalancesheetdate,therewerenosignificantconcentrationsofcreditrisk.Themaximumexposuretocreditriskisrepresentedbythecarryingamountofeachfinancialasset,includingderivativefinancialinstruments,intheBalanceSheet.

GUARANTEESAllguaranteesareinrespectofobligationsofsubsidiaries,associatesorjointlycontrolledentitiesinwhichtheGrouphasaninterest.DetailsofguaranteesgivenbytheCompanyandtheGroupareprovidedinNotes31and32.

the group’s exposureTheGroup’smaximumexposuretocreditriskatthereportingdatewas:

The Group

2009 2008 note $’000 $’000

Available-for-salefinancialassets 15 9,362 10,610Receivables 11 38,886 35,007Cashandcashequivalents 10 23,227 28,472Securitydepositsinrespectoflongtermleases 20 5,062 4,985Operatingleasepaymentspaidinadvance 20 1,588 –Interestrateswapsusedforhedging 13 – 372Forwardexchangecontractsusedforhedging 13 – 25

78,125 79,471

Themaximumexposuretocreditriskforreceivablesatthereportingdatebygeographicregionwas:

The Group

2009 2008 $’000 $’000

Domestic 31,314 25,059NewZealand 826 1,207GermanyandotherEuro-zonecountries 6,422 8,728UnitedKingdom 10 13Other 314 –

38,886 35,007

Themaximumexposuretocreditriskforreceivablesbybusinesssegmentatthereportingdatewas:CinemaExhibition 10,881 15,546Hotels 7,250 7,577ThredboAlpineResort 1,016 574Leisure/Attractions 283 298Property 1,438 2,924EntertainmentTechnology 13,229 3,701Other 4,789 4,387

38,886 35,007

the Company’s exposureTheCompany’smaximumexposuretocreditriskatthereportingdatewas$188,742,000(2008:$192,431,000)forloansandreceivables.ThisexposureislimitedtoAustralia.Subsidiariesaccountfor$188,389,000(2008:$191,725,000)oftheCompany’sreceivablescarryingamount.

liQuidity riskLiquidityriskistheriskthattheGroupwillnotbeabletomeetitsfinancialobligationsastheyfalldue.TheGroupmanagesliquidityriskbycontinuouslymonitoringforecastandactualcashflows.GroupTreasuryaimsatmaintainingflexibilityinfundingbykeepingcommittedcreditlinesavailablewithanumberofcounterparties.BankdebtcreditfacilitiesavailabletotheGrouparedetailedinNote23.

86


NOTE 28 – FINANCIAL RISK MANAGEMENT (CONTINUED)

the group’s finanCial liabilitiesThecontractualmaturitiesoftheGroup’sfinancialliabilities,includinginterestpaymentsandexcludingtheimpactofnettingagreements,areasfollows:

Carrying Contractual 6 months between 6 between 1 between 2 over amount cash flows or less to 12 months to 2 years to 5 years 5 years 30 June 2009 $’000 $’000 $’000 $’000 $’000 $’000 $’000

non-derivative finanCial liabilitiesSecuredbankloans 67,793 (78,707) (1,993) (1,288) (3,524) (71,902) –Unsecuredloansfromothercompanies – – – – – – –Unsecuredloansfromassociates 901 (1,542) (29) (30) (63) (199) (1,221)Securedloansfromothercompanies – – – – – – –Financeleaseliability 9,827 (10,233) (2,645) (2,645) (4,943) – –Non-interestbearingloansfromothercompaniesunsecured 2,183 (2,183) (176) (176) (361) (611) (859)Tradepayables 30,622 (30,622) (30,622) – – – –Othercreditorsandaccruals 46,694 (46,694) (46,694) – – – –

derivative finanCial liabilities/(assets)Interestrateswapsusedforhedging(net) 1,983 (2,005) (808) (600) (527) (70) –Forwardexchangecontractsusedforhedging(net) 78 (78) (78) – – – –

160,081 (172,064) (83,045) (4,739) (9,418) (72,782) (2,080)


non-derivative finanCial liabilitiesSecuredbankloans 19,773 (24,612) (818) (6,510) (1,115) (16,169) –Unsecuredloansfromothercompanies 393 (409) (409) – – – –Unsecuredloansfromassociates 848 (1,447) (42) (38) (73) (215) (1,079)Securedloansfromothercompanies 458 (460) (460) – – – –Financeleaseliability 14,090 (15,777) (2,778) (2,532) (5,090) (5,377) –Non-interestbearingloansfromothercompaniesunsecured 2,512 (2,512) (185) (185) (331) (726) (1,085)Tradepayables 30,930 (30,930) (30,930) – – – –Othercreditorsandaccruals 36,965 (36,965) (36,965) – – – –

derivative finanCial liabilities/(assets)Interestrateswapsusedforhedging(net) (359) 362 131 97 134 – –Forwardexchangecontractsusedforhedging(net) (25) 25 25 – – – –

105,585 (112,725) (72,431) (9,168) (6,475) (22,487) (2,164)

Forderivativefinancialassetsandliabilities,maturitiesdetailedinthetableaboveapproximateperiodsthatcashflowsandimpactonprofitareexpectedtooccur.


NOTE 28 –FINANCIAL RISK MANAGEMENT (CONTINUED)the Company’s finanCial liabilitiesThecontractualmaturitiesoftheCompany’sfinancialliabilities,includinginterestpaymentsandexcludingtheimpactofnettingagreementsareasfollows:


NON-DERIVATIVEFINANCIALLIABILITIESOthercreditorsandaccruals 1,165 1,165 1,165 – – – –


NON-DERIVATIVEFINANCIALLIABILITIESLoansfromcontrolledentities 14,153 (14,153) – – (14,153) – –Othercreditorsandaccruals 766 (766) (766) – – – –

14,919 (14,919) (766) – (14,153) – –

market riskMarketriskistheriskthatchangesinmarketprices,suchasforeignexchangeratesandinterestrateswillaffecttheGroup’sincomeorthevalueofitsholdingsoffinancialinstruments.Theobjectiveofmarketriskmanagementistomanageandcontrolmarketriskexposureswithinacceptableparameters,whileoptimisingthereturn.

TheGroupusesderivativefinancialinstrumentssuchasforeignexchangecontractsandinterestrateswapstohedgeexposurestofluctuationsinforeigncurrencyexchangeratesandinterestrates.Derivativesareusedexclusivelyforhedgingpurposesandarenottradedorusedasspeculativeinstruments.ThisiscarriedoutundertreasurypoliciesapprovedbytheBoard.

interest rate riskTheGroupmanagesinterestrateexposuresonborrowingsinaccordancewithaBoardapprovedtreasurypolicythatspecifiesparametersforhedgingincludinghedgingpercentagesandapprovedhedginginstruments.Thepolicyspecifiesupperandlowerhedginglimitssetforspecifictimeframesoutto5years.

Atthereportingdate,theinterestrateprofileoftheGroup’sandtheCompany’sinterestbearingfinancialinstrumentswas:

The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

fixed rate instrumentsFinancialassets – – – –Financialliabilities – (1,092) – –

– (1,092) – –

variable rate instrumentsFinancialassets 21,341 26,712 189,575 181,070Financialliabilities (78,521) (34,432) – (14,153)

(57,180) (7,720) 189,575 166,917

88


NOTE 28 – FINANCIAL RISK MANAGEMENT (CONTINUED)TheGroupmanagesinterestrateriskinaccordancewithaBoardapprovedpolicycoveringthetypesofinstruments,rangeofprotectionanddurationofinstruments.Thefinancialinstrumentscoverinterestrateswaps,forwardrateagreementsandinterestrateoptions.Maturitiesoftheseinstrumentsareuptoamaximumoffiveyears.InterestrateswapsandforwardrateagreementsallowtheGrouptoraiselongtermborrowingsincludinglongtermfinanceleases,atfloatingratesandswapaportionofthoseborrowingsintofixedrates.

Theapprovedrangeofinterestratecoverisbasedontheprojecteddebtlevelsforeachcurrencyandreducedforeachfutureyear.TheGroupcurrentlyhedgesinterestbearingdebtinAUD,EURandNZDwithcoverat30June2009extendingtoSeptember2012inAUDtoDecember2010inEURandSeptember2011inNZD.At30June2009,theGrouphad64%(2008:52%)ofdebthedged.

TheGroupclassifiesinterestrateswapsascashflowhedgesandstatesthematfairvalueintheBalanceSheet.

DetailsonthemajorcomponentsoftheGroup’sinterestbearingliabilitiesisdisclosedinNote23.

sensitivity analysisSENSITIVITYANALYSISFORFIXEDRATEINSTRUMENTSTheGroupdoesnotaccountforanyfixedratefinancialassetsandliabilitiesatfairvaluethroughprofitorloss.TheGroup’sderivatives(interestrateswaps)qualifyforhedgeaccountingandtheeffectivemovementintheirfairvalueisaccountedforinequityinthehedgereserve.Thereforeachangeininterestratesatthereportingdatewouldnotaffecttheprofitfortheperiod.

At30June2009,ifprevailingmarketinterestrateshadmovedby+/-1%(100basispoints)perannumfromyearendrates,theaffectonourposttaxprofitandequity,assumingallothervariablesremainconstant,wouldhavebeenasillustratedbelow:

Equity Profit (hedging reserve)

100 bp 100 bp 100 bp 100 bp increase decrease increase decrease $’000 $’000 $’000 $’000

2009Variablerateinstruments (382) 382 – –Interestrateswaps 346 (346) 490 (504)

(36) 36 490 (504)

2008Variablerateinstruments (50) 50 – –Interestrateswaps 128 (128) 100 (103)

78 (78) 100 (103)

Themovementsinprofitareduetohigher/lowerinterestcostsfromvariableratedebt,netainterestrateswaps,andcashbalances.Themovementinequityisduetoanincrease/decreaseinthefairvalueofderivativeinstrumentsdesignatedascashflowhedges,netoftax.Thesensitivityishigherin2009thanin2008duetoanincreaseinborrowings.

TherewouldbenoimpactontheCompany’sposttaxprofitorequity.

foreign exChange riskTheGroupisexposedtocurrencyriskonpurchases,borrowingsandsurplusfundsthataredenominatedinacurrencyotherthantherespectivefunctionalcurrenciesofGroupentities,primarilytheAustraliandollar(AUD),butalsotheNewZealanddollar(NZD)andEuro(EUR).TransactionsundertakenbyGroupentitiesareprimarilydenominatedinAUD,NZD,EURandUSdollars.

TheGroupmanagesforeigncurrencyexposuresinaccordancewithaBoardapprovedtreasurypolicythatspecifiesparametersforhedging,includinghedgingpercentagesandapprovedhedginginstruments.Atanypointintime,theGrouphedgesupto60%of“highlyprobable”foreigncurrencyexposuresand100%ofconfirmedforeigncurrencyexposures.Typicallyforeigncurrencyexposuresarehedgedwiththeutilisationofforwardexchangecontracts.


NOTE 28 – FINANCIAL RISK MANAGEMENT (CONTINUED)TheGroup’sexposuretoforeigncurrencyriskatthereportingdatewasasfollows,basedonnotionalamounts:

30 June 2009 30 June 2008

eur nZd usd gbp eur nZd usd gbp $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Cashandcashequivalents 51 306 159 120 856 122 – –Tradereceivables – 166 – – – 261 – –Securedbankloans – (16,093) – – – (7,931) – –Tradepayables – (66) – – – (394) – –

Grossbalancesheetexposure 51 (15,687) 159 120 856 (7,942) – –

Interestrateswaps – (638) – – – (13) – –Forwardexchangecontracts – – (78) – – 25 138 –

– (638) (78) – – 12 138 –

Netexposure 51 (16,325) 81 120 856 (7,930) 138 –

TheCompanyhasnoexposuretoforeigncurrencyrisk.

sensitivity analysisA10%strengthening/weakeningoftheAustraliandollaragainstthefollowingcurrenciesat30Junewouldhaveincreased/(decreased)Groupequityandprofit(pre-tax)bytheamountsshownbelow.Thisanalysisassumesthatallothervariables,inparticularinterestrates,remainconstant.

The Group Company

equity profit or loss equity profit or loss $’000 $’000 $’000 $’000

2009 AUD/USD+10% (24) – – – AUD/USD-10% 9 – – – AUD/NZD+10% 1,484 – – – AUD/NZD-10% (1,814) – – – AUD/EUR+10% (5) – – – AUD/EUR-10% 5 – – – AUD/GBP+10% (12) – – – AUD/GBP-10% 12 – – –

2008 AUD/USD+10% (6) – – – AUD/USD-10% 7 – – – AUD/NZD+10% 722 – – – AUD/NZD-10% (882) – – – AUD/EUR+10% (78) – – – AUD/EUR-10% 96 – – – AUD/GBP+10% – – – – AUD/GBP-10% – – – –

HEDGINGOFNETINVESTMENTINFOREIGNSUBSIDIARIESTheGroup’sNZDdenominatedbankloanisdesignatedasahedgeoftheGroup’sinvestmentinitssubsidiariesinNewZealand.Thecarryingamountoftheloanat30June2009was$16,093,000(2008:$7,931,000).Aforeignexchangelossof$42,000(2008:gainof$1,767,000)wasrecognisedinequityontranslationoftheloantoAUD.

ThemajorityofthemovementintheAUD/NZDsensitivityanalysisinthetableaboveisattributedtomovementsintheholdingvalueofthisNZDbankloan(andassociatedinterestrateswaps).ThismovementwouldhaveanoppositemovementintheAUDholdingvalueoftheunderlyinghedgedinvestmentinNewZealand.

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NOTE 28 – FINANCIAL RISK MANAGEMENT (CONTINUED)fair valuesThefairvaluesoffinancialassetsandliabilitiestogetherwiththeircarryingamountsshownintheBalanceSheetareasfollows:

Carrying Carrying amount fair value amount fair value 2009 2009 2008 2008 note $’000 $’000 $’000 $’000

the groupCashandcashequivalents 10 23,227 23,227 28,472 28,472Tradeandotherreceivables 11 38,556 38,556 34,658 34,658Presentvalueofloansprovidedundertheemployeeshareplan 11 330 330 349 349Otherfinancialassets 14 312 312 502 502Available-for-salefinancialassets 15 9,362 9,362 10,610 10,610Investmentproperties 18 29,600 29,600 28,500 28,500Securitydeposits–operatingleases 20 5,062 5,062 4,985 4,985Bankloans 22 (67,055) (67,793) (18,787) (19,773)Financeleaseliabilities 22 (9,827) (9,827) (14,090) (14,090)Loansfromassociates 22 (901) (901) (848) (848)Loansfromothercompanies 22 (2,183) (2,183) (3,363) (3,363)Payables 21 (77,318) (77,318) (67,897) (67,897)

Interestrateswaps: Assets 13 – – 372 372Liabilities 25 (1,983) (1,983) (13) (13)

(1,983) (1,983) 359 359

Forwardexchangecontracts: Assets 13 – – 25 25Liabilities 25 (78) (78) – –

(78) (78) 25 25

(52,896) (53,634) 3,475 2,489

CompanyCashandcashequivalents 10 1,186 1,186 176 176Receivablefromcontrolledentities 11 188,389 188,389 191,725 191,725Otherreceivables 11 23 23 357 357Loansprovidedundertheemployeeshareplan 11 330 330 349 349Available-for-salefinancialassets 15 9,362 9,362 10,610 10,610Payables 21 (1,165) (1,165) (766) (766)

198,125 198,125 202,451 202,451

estimation of fair valuesThefollowingsummarisesthemajormethodsandassumptionsusedinestimatingthefairvaluesoffinancialinstrumentsreflectedinthetableabove:

QUOTEDINVESTMENTSFairvalueisdeterminedbyreferencetothesecuritiesexchangequotedmarketpricesatcloseofbusinessonthebalancesheetdate,withoutanydeductionfortransactioncosts.

DERIVATIVESBankmark-to-marketvaluationshavebeenusedtodeterminethefairvalueofinterestrateswapsandforwardexchangecontracts.ThesehavebeenbacktestedagainstvaluationsgeneratedbytheGroup’streasurysystempricingmodule,usingmarketquoteddataasatbalancedate.Thesystemusesdiscountedcashflowtechniquestovaluefinancialinstruments.


NOTE 28 – FINANCIAL RISK MANAGEMENT (CONTINUED)INTERESTBEARINGLOANSANDBORROWINGSFairvalueiscalculatedbasedondiscountedexpectedfutureprincipalandinterestcashflows.

FINANCELEASELIABILITIESThefairvalueisestimatedasthepresentvalueoffuturecashflows,discountedatmarketinterestratesforsimilarleasearrangements.Theestimatedfairvaluereflectstheassessedcurrentinterestrateforasimilarleasewherethisratehasbeendeterminedtobedifferentfromtheratecharged.

TRADEANDOTHERRECEIVABLES/PAYABLESForreceivables/payableswitharemaininglifeoflessthanoneyear,thenotionalamountisdeemedtoreflectthefairvalue.Allotherreceivables/payablesarediscountedtodeterminethefairvaluewhereanappropriaterateofinterestisnotreceived/chargedinrespectoftheamount.

INTERESTRATESUSEDFORDETERMININGFAIRVALUETheGroupusesabankquotedinterestrateswapcurveasof30June2009plusassessedriskfactors/creditspreadtodiscountfinancialinstruments.

Capital managementTheGroupmanagesitscapitalwiththeobjectiveofmaintainingastrongcapitalbasesoastomaintaininvestor,creditorandmarketconfidenceandtohavethecapacitytotakeadvantageofopportunitiesthatwillenhancetheexistingbusinessesandenablefuturegrowthandexpansion.TheBoardmonitorsthereturnoncapital,whichtheGroupdefinesasoperatingprofitafterincometaxdividedbythetotalofshareholders’equityandlongtermdebt.TheBoardalsomonitorstheGroup’sgearingratio,beingnetdebtdividedbythetotalofshareholders’equity.

ItisrecognisedthattheGroupoperatesinbusinesssegmentsinwhichoperatingresultsmaybesubjecttovolatilityandtheBoardcontinuouslyreviewsthecapitalstructuretoensuresufficient:

• surplusfundingcapacityisavailable;

• fundsareavailableforcapitalexpenditureandtoimplementlongertermbusinessdevelopmentstrategies;and

• fundsareavailabletomaintainappropriatedividendlevels.

TherewerenochangesintheGroup’sapproachtocapitalmanagementduringtheyear.

NeithertheCompanynoranyofitssubsidiariesaresubjecttoexternallyimposedcapitalrequirements.

The Group Company

2009 2008 2009 2008 note $’000 $’000 $’000 $’000

NOTE 29 – EMPLOyEE bENEFITSemployee benefitsAggregateliabilityforemployeebenefitsincludingon-costs:CurrentEmployeebenefitsprovision 24 11,932 10,794 2,262 1,581non-currentEmployeebenefitsprovision 24 2,019 1,988 175 170

13,951 12,782 2,437 1,751

management share option planTherewerenooptionsgrantedduringthecurrentorpreviousfinancialyear.

TherearenounissuedordinarysharesoftheCompanyunderoptionat30June2009.

Duringtheyear,employeesexercisedoptionstoacquire733,500(2008:577,300)fullypaidordinarysharesataweightedaverageexercisepriceof$3.47(2008:$3.08).

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NOTE 29 – EMPLOyEE bENEFITS (CONTINUED)Setoutbelowaresummariesofoptionsgranted:

balance balance exercisable at the start at the end at the end exercise of the year exercised expired of the year of the year grant date expiry date price number number number number number

the group and parent entity – 200911December2003 30September2008 $3.35 463,500 (453,500) (10,000) – –17June2004 30September2008 $3.14 30,000 (30,000) – – –16September2004 30September2008 $3.72 250,000 (250,000) – – –

Total 743,500 (733,500) (10,000) – –

Weightedaverageexerciseprice $3.47 $3.47 $3.35 – –

the group and parent entity – 200820November2003 30September2008 $2.75 250,000 (250,000) – – –11December2003 30September2008 $3.35 770,800 (307,300) – 463,500 463,50017June2004 30September2008 $3.14 50,000 (20,000) – 30,000 30,00016September2004 30September2008 $3.72 250,000 – – 250,000 250,000

Total 1,320,800 (577,300) – 743,500 743,500

Weightedaverageexerciseprice $3.30 $3.08 – $3.47 $3.47

management share options granted on or after 5 february 2002 WhiCh had an expiry date of 30 september 2008Theseoptionsvestedon30September2006.Sincevesting,2,547,500optionshavebeenexercisedtoacquirefullypaidordinarysharesupto30September2008.

TheabilitytoexercisetheseoptionswasconditionalontheGroupachievingcertainperformancehurdlesrelatingtoincreasesinoperatingprofit(5%perannum),earningspershare(5%perannum)andthemarketvalueoftheCompany’sshareprice(10%perannum).TheperformancehurdleswereevaluatedinSeptember2006anditwasdeterminedthatalltherelevantapplicablehurdleshadbeenachieved.

exeCutive performanCe share planTheestablishmentoftheExecutivePerformanceSharePlanwasapprovedbyshareholdersatthe2006AnnualGeneralMeeting.EmployeesreceivingawardsundertheExecutivePerformanceSharePlanarethoseofaseniorlevelandabove(includingtheManagingDirector).

AnemployeeawardedperformancesharesisnotlegallyentitledtosharesintheCompanybeforetheperformancesharesallocatedundertheplanvest.However,theemployeecanvoteandreceivedividendsinrespectofsharesallocatedtothem.Oncetheshareshavevested,theyremaininthetrust(referNote1(s)(i))untiltheearliestoftheemployeeleavingtheGroup,thetenthanniversaryofthedatetheperformanceshareswereawardedortheBoardapprovinganapplicationfortheirrelease.Award,vestingandexerciseundertheplanaremadefornoconsideration.

Setoutbelowisasummaryofperformancesharesawardedundertheplan:

balance granted exercised expired balance at start during during during at end of year the year the year the year of year type of right grant date number number number number number

the group and parent entity – 2009Performanceshares 23Feb2009 – 526,597 – – 526,597Performanceshares 18Feb2008 473,182 – 115,831 – 357,351Performanceshares 19Feb2007 345,422 – 15,404 – 330,018

the group and parent entity – 2008Performanceshares 18Feb2008 – 473,182 – – 473,182Performanceshares 19Feb2007 345,422 – – – 345,422

Theperformanceperiodisthreeyears.Duringtheyear131,235performanceshareswerereleasedfromperformancehurdlerequirementsandtransferredtocertainparticipantsonanunrestrictedbasis.TheBoardapprovedtransferwaspartofthenegotiatedsettlementonterminationoftheemploymentofeightemployeeparticipants.Otherthanasdisclosedabove,noneoftheperformancesharesawardedundertheplanvestedorbecameexercisableduringtheyear.


NOTE 29 – EMPLOyEE bENEFITS (CONTINUED)FAIRVALUEOFPERFORMANCESHARESGRANTEDTheassessedfairvalueatgrantdateofperformancesharesgrantedundertheExecutivePerformanceSharePlanduringtheyearended30June2009was$4.34(2008issue:$6.02)forthosesharesthathaveearningpersharehurdlesand$3.80(2008issue:$4.31)forthosesharesthathavetotalshareholderreturnhurdles.ThefairvalueofeachperformanceshareisestimatedonthedateofgrantusingaMonteCarlomodelwiththefollowingweightedaverageassumptionsusedforeachgrant:

granted granted granted 23 feb 09 18 feb 08 19 feb 07

Dividendyield 6.90% 5.48% 3.52%Expectedvolatility 38% 30% 25%Risk-freerate 3.10% 6.89% 6.00%Expectedlifeofincentive 3years 3years 3years

Theexpectedlifeoftheperformancesharesisbasedonhistoricaldataandisnotnecessarilyindicativeofexercisepatternsthatmayoccur.Theexpectedvolatilityreflectstheassumptionthatthehistoricalvolatilityisindicativeoffuturetrends,whichmayalsonotnecessarilybetheactualoutcome.

tax exempt share planAllAustralianresidentpermanentemployees(excludingdirectors)areeligibletoparticipateintheTaxExemptSharePlan.TheTaxExemptSharePlanenablesparticipatingemployeestomakesalarysacrificecontributionstopurchaseshareson-marketonamonthlybasis.ThesharesintheTaxExemptSharePlanarerestrictedfrombeingtradedandmustbeheldforaminimumofthreeyearswhilsttheparticipantremainsanemployeeoftheGroup.Tradingrestrictionsareliftedonthecessationofemployment.

OffersundertheTaxExemptSharePlanareatthediscretionoftheCompany.AllsharesacquiredundertheTaxExemptSharePlanrankequallywithallotherordinaryshares.

Thetotalnumberofsharespurchasedduringtheyearbyemployees,undertheTaxExemptSharePlan,totalled5,655shares(2008:8,344shares).

employee share planAt30June2009,thetotalsharesissuedundertheplanwas176,520(2008:177,220).Therewerenosharesissuedduringtheyear.Theplanisclosedtonewmembersandnooffershavebeenmadeundertheplansince1998.

Themarketvalueofordinarysharesat30June2009was$4.30(2008:$4.87).

Note26providesdetailsofthemovementintheordinarysharecapitalduringtheyear.

superannuationTheCompanyandcontrolledentitiescontributetoseveraldefinedcontributionsuperannuationplans–referalsoNote1(r).ThesuperannuationcontributionsrecognisedasanexpenseintheIncomeStatementaredetailedbelow:

The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

Superannuationcontributionsrecognisedasanexpense 6,627 6,091 275 259

NOTE 30 – COMMITMENTS AND LEASESCapital expenditure CommitmentsContractedbutnotprovidedforandpayable:Withinoneyear 23,594 12,774 – –

operating lease Commitments – as lesseeFutureminimumoperatingleaserentalsnotprovidedforandpayable:Withinoneyear 99,234 97,889 230 230Laterthanoneyearbutnotlaterthanfiveyears 345,868 341,427 134 364Laterthanfiveyears 435,664 460,741 – –

880,766 900,057 364 594

TheGroupleasesvariousproperties,includingcinemasites,underoperatingleases.Theleasestypicallyrunforperiodsupto20years,withvaryingterms,escalationclausesandrenewalorextensionoptions.TheheadleaseinrespectoftheThredboVillageandskiareaisforalongerperiod,being50years.AGroupsubsidiaryexerciseditsoptionundertheheadleaseandenteredintoanewlease,onsimilarterms,forafurther50yearswhichcommencedon29June2007.

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NOTE 30 – COMMITMENTS AND LEASES (CONTINUED)Asmallnumberofleaseshavecommitmentsinrespectofcontingentrentalpaymentswhicharisewhentheoperatingperformanceofasiteexceedsapre-determinedamount.Also,therearerentalswhicharedeterminedasthehigherofabaserentalandafixedpercentageofadefinedamountreflectingtheoperatingperformanceofasiteorabaserentalplusafixedpercentageofthenetprofitfromthesite.ContingentrentalpaymentsrecognisedasanexpenseintheperiodfortheGroupamountedto$2,482,000(2008:$1,535,000).

The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

sub-lease reCeivables – as lessorFutureleasereceivablesinrelationtosub-leasesofpropertyspaceunderoperatingleasesnotrecognisedandreceivable:Withinoneyear 9,482 9,290 – –Laterthanoneyearbutnotlaterthanfiveyears 32,816 33,897 – –Laterthanfiveyears 252,543 254,883 – –

294,841 298,070 – –

operating leases – as lessorFutureoperatingleaserentalsforownedpropertiesnotrecognisedandreceivable: Withinoneyear 8,073 8,584 – –Laterthanoneyearbutnotlaterthanfiveyears 27,768 11,461 – –Laterthanfiveyears 57,588 11,128 – –

93,429 31,173 – –

TheGroupreceivesrentalincomefromanumberofproperties,bothownedandleased.Withexceptiontosub-leasesundertheThredboheadlease,leasesareforperiodsrangingbetweenoneto18yearsandhavevaryingterms,escalationclausesandrenewaloptions.Thereareapproximately700sub-leasesundertheThredboheadlease.Thredbosub-leasesconsistoflongtermaccommodationsub-leasesforholidayapartments,chaletsandlodgesandalsoretailsub-leasesforshops.Longtermaccommodationsub-leasesaretypicallyfortheperiodmirroringtheheadlease,whichwasrenewedforafurther50yearperiodon29June2007(referabove).

The Group Company

2009 2008 2009 2008 note $’000 $’000 $’000 $’000

finanCe lease Commitments – as lesseeFinanceleaserentalsarepayableasfollows:Withinoneyear 5,290 5,277 – –Laterthanoneyearbutnotlaterthanfiveyears 4,876 10,500 – –Laterthanfiveyears – – – –

10,166 15,777 – –Less:Futureleasefinancecharges (339) (1,687) – –

9,827 14,090 – –

Thepresentvalueofleasepaymentsareasfollows: Withinoneyear 4,902 4,405 – –Laterthanoneyearbutnotlaterthanfiveyears 4,925 9,685 – –Laterthanfiveyears – – – –

9,827 14,090 – –

Financeleaseliabilitiesprovidedforintheaccounts: Current 22 4,902 4,405 – –Non-current 22 4,925 9,685 – –

Totalleaseliabilities 9,827 14,090 – –


NOTE 30 – COMMITMENTS AND LEASES (CONTINUED)Oftheabovelease,$9,827,000(2008:$13,849,000)isinrespectoflandandbuildings.Theleasetermisforaremainingthreeyearperiodattheendofwhichtimethecontrolledentityhasanoptiontopurchasethepropertyatnoadditionalcost.Iftheoptionwasnotexercised,anominalvaluewouldberecoveredovertimeinrespectoftheproperty.

Intheprioryeartherewasanamountof$241,000inrespectofplantandequipment.Thisleasehasnowconcluded.

finanCe lease Commitments – as lessorNeithertheGroupnortheCompanyhasfinanceleaseorhirepurchasearrangementsinplacewheretheyactasalessor.

NOTE 31 – CONTINGENT ASSETS AND LIAbILITIESDetailsofcontingentliabilitiesandcontingentassetswhichalthoughconsideredremotethedirectorsconsidershouldbedisclosed,areasfollows:

The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

Contingent liabilitiesCONTROLLEDENTITIESTheCompanyhasguaranteedtheobligationsofsomecontrolledentitiesinrespectofanumberofoperatingleasecommitments

TheoperatingleasecommitmentsnotincludedintheCompany’sfinancialstatementsaredue:Notlaterthanoneyear – – 66,449 66,533Laterthanoneyearbutnotlaterthanfiveyears – – 120,968 114,362Laterthanfiveyears – – 148,738 130,570

– – 336,155 311,465

TheCompanyhasguaranteedtheGroup’sshareofothercommitmentsinrespectoffinancingandotherarrangementsofcertaincontrolledentities: – – 2,382 7,782

TheCompanyhasguaranteedfinanceleasecommitmentsofacontrolledentity: – – 2,608 3,931

JOINTLYCONTROLLEDENTITIESCertaincontrolledentitieshaveobligationsinrespectoftheleasecommitmentsforjointlycontrolledentities.OperatingleasecommitmentsofjointlycontrolledentitiesnotincludedintheGroup’sfinancialstatements,forwhichacontrolledentityhasobligations,aredue:Notlaterthanoneyear 39,052 38,823 – –Laterthanoneyearbutnotlaterthanfiveyears 142,166 141,251 – –Laterthanfiveyears 192,878 220,343 – –

374,096 400,417 – –

Inaddition,theCompanyhasguaranteesinrespectoftheleasecommitmentsofcertainjointlycontrolledentities.OperatingleasecommitmentsofjointlycontrolledentitiesnotincludedintheGroup’sfinancialstatements,guaranteedbytheCompany,aredue:

Notlaterthanoneyear – – 29,585 29,376Laterthanoneyearbutnotlaterthanfiveyears – – 110,641 109,807Laterthanfiveyears – – 172,044 173,861

– – 312,270 313,044

374,096 400,417 653,415 636,222

CLAIMFROMADISPUTEOVERCONTRACTTERMSDuringthepriorfinancialyearended30June2008,aGroupentityreceivedaclaim,resultingfromadisputeovercontractterms,seekingrecoveryofpastpaymentsmadetotalling$4,141,000,plusinterestandlegalcosts.Aprovisionhasnotbeenestablishedforthisamountasthesuccessoftheclaimisnotcurrentlyconsideredprobable.

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NOTE 31 – CONTINGENT ASSETS AND LIAbILITIES (CONTINUED)CLAIMSFORPERSONALINJURYThenatureoftheGroup’soperationsresultsinclaimsforpersonalinjurybeingreceivedfromtimetotime.Thedirectorsbelievethattheoutcomeofanycurrentclaimsoutstanding,whicharenotprovidedagainstinthefinancialstatements,willnothaveasignificantimpactontheoperatingresultoftheGrouportheCompanyinfuturereportingperiods.

Thedirectorsareoftheopinionthatprovisionsarenotrequiredinrespectofthesematters,asitisnotprobablethatafuturesacrificeofeconomicbenefitswillberequiredortheamountisnotcapableofreliablemeasurement.

Contingent assetsTAXATION–OVERSEASCONTROLLEDENTITIESAcontingentassetexistsat30June2009totallingapproximately$11,824,000(2008:$7,950,000)relatingtodisputedvalue-addedtaxprovidedfororpaidbycertainoverseascontrolledentitiesonanumberofproductssoldduringtheperiodsince1January2005.

NOTE 32 – DEED OF CROSS GUARANTEEPursuanttoASICClassOrder98/1418(asamended)dated13August1998,thewholly-ownedsubsidiarieslistedbelowarerelievedfromtheCorporationsAct2001requirementsforpreparation,auditandlodgementoffinancialreports,andadirectors’report.

ItisaconditionoftheClassOrderthattheCompanyandeachofthesubsidiariesenterintoaDeedofCrossGuarantee.TheeffectofthedeedisthattheCompanyguaranteestoeachcreditorpaymentinfullofanydebtintheeventofwindingupofanyofthesubsidiariesundercertainprovisionsoftheCorporations Act 2001.IfawindingupoccursunderotherprovisionsoftheAct,theCompanywillonlybeliableintheeventthataftersixmonthsanycreditorhasnotbeenpaidinfull.ThesubsidiarieshavealsogivensimilarguaranteesintheeventthattheCompanyiswoundup.

Thesubsidiariessubjecttothedeedare:Birch,Carroll&CoyleLimitedBrysonHotelPtyLimitedCanberraTheatresLimitedEdgeDigitalTechnologyPtyLimitedElsternwickPropertiesPtyLimitedFeatherdaleFarm&AviariesPtyLimitedFeatherdaleHoldingsPtyLimitedFilmlabEngineeringPtyLimitedGlenelgTheatresPtyLimitedGreaterEntertainmentPtyLimitedGreaterOccasionsAustraliaPtyLimitedGreaterUnionInternationalHoldingsPtyLimitedGreaterUnionNomineesPtyLimited

GreaterUnionScreenEntertainmentPtyLimitedGreattheatrePtyLimitedGUOInvestments(WA)PtyLimitedGutaceHoldingsPtyLimitedHaparandaPtyLimitedHaymarket’sTivoliTheatresPtyLimitedKidsportsAustraliaPtyLimitedKosciuszkoThredboPtyLimitedKvarkenPtyLimitedLakesideHotelPtyLimitedMamasaPtyLimitedNoahsLimitedNorthsideGardensHotelPtyLimitedPantamiPtyLimited

RQMotelsPtyLimitedRydgesBankstownPtyLimitedRydgesCronullaPtyLimitedRydgesHotelsLimitedSabayaPortDouglasPtyLimitedSonataHotelsPtyLimitedTannahillPtyLimitedTheGeelongTheatreCompanyLimitedTheGreaterUnionOrganisationPtyLimitedThredboResortCentrePtyLimitedTobeonPtyLimitedTourism&LeisurePtyLimitedWesternAustraliaCinemasPtyLimitedZollvereinPtyLimited.

AconsolidatedIncomeStatementandconsolidatedBalanceSheet,comprisingtheCompanyandcontrolledentitieswhichareapartytothedeed,aftereliminatingalltransactionsbetweenpartiestothedeed,at30June2009aresetoutasfollows:

2009 2008 $’000 $’000

inCome statementProfitbeforetax 77,826 77,376Incometaxexpense (20,846) (19,213)

Profit after income tax but before discontinued operations 56,980 58,163Discontinuedoperations 3,855 40,092

Profit after income tax and discontinued operations 60,835 98,255Retainedearningsatthebeginningoftheyear 454,337 393,600Transferfromreserves 58 (255)Dividendspaidduringtheyear (38,898) (37,263)

Retained earnings at the end of the year 476,332 454,337


2009 2008 $’000 $’000

NOTE 32 – DEED OF CROSS GUARANTEE (CONTINUED)balanCe sheetCashandcashequivalents 14,175 22,604Receivables 26,638 20,347Inventories 11,273 9,420Other 506 2,943

Total current assets 52,592 55,314

Receivables 516 653Loanstocontrolledentities 44,261 –Investmentsincontrolledentities 73,960 73,742Otherfinancialassets 310 500Available-for-salefinancialassets 9,362 10,610Investmentsaccountedforusingtheequitymethod 98,501 102,974Property,plantandequipment 424,378 400,467Investmentsproperties 29,600 28,500Goodwillandotherintangibleassets 9,606 10,109Deferredtaxassets 8,467 4,399Other 4,196 1,892

Total non-current assets 703,157 633,846

Total assets 755,749 689,160

Payables 33,627 26,155Currenttaxliabilities 10,533 24,860Provisions 10,972 10,073Deferredrevenue 26,184 21,466Other 8,473 13

Total current liabilities 89,789 82,567

Payables 2 2Loansfromcontrolledentities – 5,704Interestbearingliabilitiesandborrowings 67,214 24,892Deferredtaxliabilities – 2,013Provisions 2,854 2,959Deferredrevenue 2,503 1,878Other 797 –

Total non-current liabilities 73,370 37,448

Total liabilities 163,159 120,015

Net assets 592,590 569,145

eQuitySharecapital 101,353 98,809Reserves 14,905 15,999Retainedearnings 476,332 454,337

Total equity 592,590 569,145

NOTE 33 – ACQUISITION AND DISPOSAL OF bUSINESSES AND SUbSIDIARIES(a) aCQuisitionTherewerenoacquisitionsofsubsidiariesduringtheyearto30June2009orintheprioryear.

(b) disposalTherewerenodisposalsofsubsidiariesduringtheyearto30June2009orintheprioryear.

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NOTE 34 – PARTICULARS IN RELATION TO CONSOLIDATED ENTITIES Ownership interest

2009 2008 note % %

Company (parent entity)AmalgamatedHoldingsLimited

subsidiariesAHLAdministrationPtyLimited 100 100AmalgamatedHoldingsSuperannuationFundPtyLimited 100 100AnconaInvestmentsPtyLimited 100 100Birch,Carroll&CoyleLimited 100 100BLNHotelsPropertyUnitTrust 100 100BrysonCentreUnitTrust 100 100BrysonHotelPropertyUnitTrust 100 100BrysonHotelPtyLimited 100 100CanberraTheatresLimited 100 100CinemaFacilityManagementGmbH (a)(f) 51 51CinemaManagementServicesGmbH (a)(f) 100 –DigitalCinemaIntegrationPartnersPtyLimited 100 100EdgeDigitalTechnologyPtyLimited 100 100EdgeInvestmentsBV (a)(e) 100 100ElsternwickPropertiesPtyLimited 100 100FeatherdaleFarm&AviariesPtyLimited 100 100FeatherdaleHoldingsPtyLimited 100 100FilmlabEngineeringPtyLimited 100 100FilmpalastamZKMKarlsruheBeteiligungsGmbH (a)(f) 100 100FilmpalastKonstanzBeteiligungsGmbH (a)(f) 100 –GlenelgTheatresPtyLimited 100 100GreaterEntertainmentPtyLimited 100 100GreaterOccasionsAustraliaPtyLimited 100 100GreaterUnionBetriebsmittelGmbH (a)(f) 100 100GreaterUnionFilmpalastDortmundGmbH (a)(f) 100 100GreaterUnionFilmpalastGmbH (a)(f) 100 100GreaterUnionFilmpalastRhein-MainGmbH (a)(f) 100 100GreaterUnionHoldingsLimited (b) 100 100GreaterUnionInternationalBV (a)(e) 100 100GreaterUnionInternationalGmbH (f) 100 100GreaterUnionInternationalHoldingsPtyLimited 100 100GreaterUnionLimited (c) 100 100GreaterUnionNomineesPtyLimited 100 100GreaterUnionScreenEntertainmentPtyLimited 100 100GreaterUnionTheatersGmbH (a)(f) 100 100GreaterUnionTheatersDritteGmbH&Co.KG (a)(f) 100 –GreaterUnionTheatersDritteVerwaltungsGmbH (a)(f) 100 –GreaterUnionTheatersMainzGmbH&Co.KG (a)(f) 100 100GreaterUnionTheatersManagementMainzGmbH (a)(f) 100 100GreaterUnionTheatersZweiteGmbH&Co.KG (a)(f) 100 100GreaterUnionTheatersVerwaltungsGmbH (a)(f) 100 100GreaterUnionTheatersZweiteVerwaltungsGmbH (a)(f) 100 100GreattheatrePtyLimited 100 100

Ownership interest

2009 2008 note % %

GUOInvestments(WA)PtyLimited 100 100

GutaceHoldingsPtyLimited 100 100HaparandaPtyLimited 100 100Haymarket’sTivoliTheatresPtyLimited 100 100KidsportsAustraliaPtyLimited 100 100KosciuszkoThredboPtyLimited 100 100KTPLUnitTrust 100 100KvarkenPtyLimited 100 100LakesideHotelPropertyUnitTrust 100 100LakesideHotelPtyLimited 100 100LakesideInternationalHotelUnitTrust 100 100MamasaPtyLimited 100 100MultiplexCinemasMagdeburgGmbH (a)(f) 100 100MultiplexCinemasOberhausenGmbH (a)(f) 100 100NeueFilmpalastErsteGmbH&Co.KG (a)(f) 100 100NeueFilmpalastErsteVerwaltungsGmbH (a)(f) 100 –NeueFilmpalastGmbH&Co.KG (a)(f) 100 100NeueFilmpalastManagementGmbH (a)(f) 100 100NoahsHotels(NZ)Limited (a)(d) 100 100NoahsLimited 100 100NorthsideGardensHotelPropertyUnitTrust 100 100NorthsideGardensHotelPtyLimited 100 100PantamiPtyLimited 100 100RedCarpetEventGmbH (a)(f) 100 100RQMotelsPtyLimited 100 100RydgesBankstownPtyLimited 100 100RydgesCronullaPtyLimited 100 100RydgesGCIPtyLimited 100 100RydgesHobartHotelPropertyUnitTrust 100 100RydgesHobartHotelPtyLimited 100 100RydgesHotelsLimited 100 100RydgesHotelsResortsAsiaPteLimited (g) 100 100RydgesQueenstownHotelLimited (a)(d) 100 100SabayaPortDouglasPtyLimited 100 100SonataHotelsPtyLimited 100 100TannahillPtyLimited 100 100TheGeelongTheatreCompanyLimited 100 100TheGreaterUnionOrganisationPtyLimited 100 100ThredboResortCentrePtyLimited 100 100TobeonPtyLimited 100 100Tourism&LeisurePtyLimited 100 100TurmpalastFrankfurtGmbH&Co.KG (a)(f) 100 100TurmpalastFrankfurtManagementGmbH (a)(f) 100 100VierteKinoabspielstattenGmbH&Co.KG (a)(f) 100 100VierteKinoabspielstattenVerwaltungsGmbH (a)(f) 100 100WesternAustraliaCinemasPtyLimited 100 100ZollvereinPtyLimited 100 100ZweiteKinoabspielstattenGmbH&Co.KG (a)(f) 100 100ZweiteKinoabspielstattenVerwaltungsGmbH (a)(f) 100 100

(a) ThesecompaniesareauditedbyothermemberfirmsofKPMGInternational.(b) ThiscompanywasincorporatedinandisdomiciledinJersey.(c) ThiscompanieswasincorporateinandcarriesonbusinessintheUnitedKingdom.(d) ThesecompanieswereincorporatedinandcarryonbusinessinNewZealand.

(e) ThesecompanieswereincorporatedinandcarryonbusinessinTheNetherlands.(f) ThesecompanieswereincorporatedinandcarryonbusinessinGermany.(g) ThiscompanywasincorporatedinandcarriesonbusinessinSingapore.

Allcompanies,exceptthosestatedabove,wereincorporatedinAustralia.


NOTE 35 – INVESTMENTS IN ASSOCIATES DetailsoftheGroup’sinvestmentsinassociatesareasfollows:

Investment Contribution to Interest carrying amount operating profit

2009 2008 2009 2008 2009 2008 name principal activities % % $’000 $’000 $’000 $’000

AtlabHoldingsPtyLimited Multiplecopyfilmreleaseprinting (f)50 (f)50 – 1,500 – (4,084) andpost-productionfacility

CinesoundMovietone Filmowneranddistributor 50 50 154 247 7 72ProductionsPtyLimited

GreaterUnionKieftBV Filmexhibitor (b)– (e)50 – 277 – 7,126

MAFGreaterUnionLLC Filmexhibitor 49 49 14,212 10,867 11,085 7,683

RoadshowDistributors Filmdistributor (d)– (d)– – – – 2,115PtyLimited

RydgesRotoruaHotelLimited Hotelowner 25 25 1,938 1,809 104 (10)

16,304 14,700 11,196 12,902

Less/(plus): Discontinued Operations (Note 5)AtlabHoldingsPtyLimited – (4,084)RoadshowDistributorsPtyLimited – 2,115

– (1,969)

11,196 14,871

(a) Dividendsreceivedfromassociatesfortheyearended30June2009bytheGroupamountto$10,160,000(2008:$14,457,000).(b) MAFGreaterUnionLLCwasincorporatedintheUnitedArabEmirates.GreaterUnionKieftBVwasincorporatedinTheNetherlandsandhasbeenwoundupduringtheyear.Allother

associateswereincorporatedinAustralia.(c) Thebalancedateofallassociatesis30June,withtheexceptionofMAFGreaterUnionLLCwhichhasabalancedateof31December.(d) Theinterestinthisassociatewasdisposedofduringthe2008financialyear.(e) TheGroupthroughits50%interestinGreaterUnionKieftBV,helda33.3%interestingacinemasiteinTheNetherlands.Thisinterestwassoldeffective20February2008,resultingina

profitonsaleof$6,691,000.(f) Intheyearto30June2008theCompanyandtheGrouprecognisedimpairmentlossesagainstthecarryingvaluesoftheir50%interestintheAtlabHoldingsPtyLimited(“Atlab”).

IntheCompany’sfinancialstatementstheinvestmentinAtlabwasaccountedforatcost,whereasintheGroupfinancialstatementstheinvestmentwasaccountedforusingtheequitymethod.ThisresultedindifferentimpairmentlossesbeingrecognisedintheGroupandtheCompany’sfinancialstatementsintheprioryear.IntheGroupfinancialstatementstheinvestmentinAtlabwaswrittendownby$4,253,000,whereasintheCompanyfinancialstatementsanimpairmentlossof$12,250,000wasrecognised.On26September2008theCompanyandtheGroupsoldtheir50%shareholdinginAtlabHoldingsPtyLimitedfor$1,500,000,beingthecarryingvalueat30June2008.

The Group

2009 2008 $’000 $’000

summarised finanCial information relating to assoCiatesTheGroup’sshareofaggregateassets,liabilities,revenuesandnetprofitofassociatesisasfollows:Revenues–asreportedbyassociates 71,154 73,402

Netprofit–asreportedbyassociates 11,196 17,155

Netprofit–equityadjusted 11,196 12,902

100


The Group

2009 2008 $’000 $’000

NOTE 35 – INVESTMENTS IN ASSOCIATES (CONTINUED)Currentassets 13,538 21,689Non-currentassets 9,183 25,247

Total assets 22,721 46,936

Currentliabilities 2,253 22,435Non-currentliabilities 1,557 3,019


Netassets–asreportedbyassociates 18,911 21,482Adjustmentsarisingfromequityaccounting:Foreignexchangetranslation (2,607) (2,529)Other–impairmentwrite-down – (4,253)

Netassets–equityadjusted 16,304 14,700

movements in Carrying amount of assoCiatesCarryingamountofassociatesatthebeginningoftheyear 14,700 85,146Foreigncurrencytranslationmovements (71) (2,045)Shareofassociates’netprofit 11,196 12,902Distributionsreceivedfromassociates (10,160) (14,457)Shareofincrement/(decrement)inassociates’reserves 2,225 (1,788)Disposalofassociate (1,586) (65,058)

Carryingamountofassociatesattheendoftheyear 16,304 14,700

CommitmentsSHAREOFASSOCIATES’CAPITALEXPENDITURECOMMITMENTSCONTRACTEDBUTNOTPROVIDEDFORORPAYABLE:Notlaterthanoneyear – 1,469Laterthanoneyearbutnotlaterthanfiveyears – –

– 1,469

SHAREOFASSOCIATES’OPERATINGLEASECOMMITMENTSCONTRACTEDBUTNOTPROVIDEDFORORPAYABLE:Notlaterthanoneyear 2,802 3,550Laterthanoneyearbutnotlaterthanfiveyears 6,901 8,534Laterthanfiveyears 1,027 7,297

10,730 19,381

SHAREOFASSOCIATES’FINANCELEASECOMMITMENTSCONTRACTEDBUTNOTPROVIDEDFORORPAYABLE:Notlaterthanoneyear – 2,456Laterthanoneyearbutnotlaterthanfiveyears – 392Laterthanfiveyears – –

– 2,848Less:Futureleasefinancecharges – (450)

– 2,398

share of assoCiates’ Contingent liabilitiesRefertoNote31.


NOTE 36 – INVESTMENTS IN JOINTLy CONTROLLED ENTITIES

Investment Share of Contribution to Profit share carrying amount sales revenue operating profit

2009 2008 2009 2008 2009 2008 2009 2008 name principal activities nature of interest % % $’000 $’000 $’000 $’000 $’000 $’000

AustralianTheatres Operatorofmultiscreen ShareofjointJointVenture cinemacomplexes ventureassets 50 50 83,451 86,540 155,808 138,798 23,189 18,982BrownsPlains Operatorofamultiscreen ShareofjointMultiplexJoint cinemacomplex ventureassetsVenture 33 33 226 143 1,417 1,313 83 82CastleHillMultiplex Operatorofamultiscreen ShareofjointCinemaJointVenture cinemacomplex ventureassets 33 33 4,180 3,627 4,694 4,745 357 616CasuarinaCinema Operatorofamultiscreen ShareofjointCentreJointVenture cinemacomplex ventureassets 50 50 4,254 3,661 11,790 10,405 2,494 1,876FilmpalastanZKM Operatorofamultiscreen EquityshareKarlsruheGmbH& cinemacomplexCoKG (a)50 (a)50 2,452 2,160 11,385 7,448 1,592 1,053FilmpalastanZKM Operatorofamultiscreen EquityshareKonstanzGmbH& cinemacomplexCoKG (a)50 (a)50 647 591 3,608 2,633 628 173GardenCityCinema Operatorofamultiscreen ShareofjointJointVenture cinemacomplex ventureassets 33 33 2,972 2,966 4,517 4,207 1,016 845GeelongCinema Operatorofamultiscreen ShareofjointJointVenture cinemacomplex ventureassets (b)50 (b)50 (284) (75) 3,737 3,320 342 –JamFactoryCinema Operatorofamultiscreen ShareofjointOperationsJoint cinemacomplex ventureassetsVenture 50 50 870 1,670 7,869 7,651 149 215Southport6Cinemas Operatorofamultiscreen ShareofjointJointVenture cinemacomplex ventureassets (c)51 (c)51 1,516 1,517 3,375 2,975 509 326ToowoombaCinema Operatorofamultiscreen ShareofjointCentreJointVenture cinemacomplex ventureassets 50 50 1,162 1,178 3,979 3,384 634 391

101,446 103,978 212,179 186,879 30,993 24,559

(a) FilmpalastanZKMKarlsruheGmbH&CoKGandFilmpalastKonstanzGmbH&CoKGwereincorporatedinGermany.(b) Provisionfordiminutioninthevalueoftheinvestmentcarryingamounthasbeenraisedagainstthisentityinprioryears.(c) ThejointventureisnotconsolidatedastheGroupdoesnothavecontrolandthepowertogovernfinancialandoperatingpolicies.

Duringtheyear,thecinemajointventurespurchasedmanagementandconsultingservicesof$5,554,000(2008:$5,371,000),capitalequipmentof$2,078,000(2008:$nil),blockandartworkof$135,000(2008:$135,000)andotherservicesof$339,000(2008:$328,000)fromtheGroup.Thesetransactionswereonnormalcommercialterms.

The Group

2009 2008 $’000 $’000

TheGroup’sshareofthejointlycontrolledentities’assetsandliabilitiesconsistsof:Currentassets 17,752 17,283Non-currentassets 76,445 78,454

Total assets 94,197 95,737

Currentliabilities 18,667 17,542Non-currentliabilities 1,592 1,981


Share of net assets 73,938 76,214

102

The Group

2009 2008 $’000 $’000

NOTE 36 – INVESTMENTS IN JOINTLy CONTROLLED ENTITIES (CONTINUED)movements in Carrying amount of Jointly Controlled entitiesCarryingamountofjointlycontrolledentitiesatthebeginningoftheyear 103,978 112,183Netadditionalinvestmentsinjointlycontrolledentities 196 156Shareofprofit 30,993 24,559Grossdistributions (33,780) (32,972)Foreigncurrencytranslationmovements 135 121Amortisationofcapitalisedinterest (33) (33)Other (43) (36)

Carryingamountofjointlycontrolledentitiesattheendoftheyear 101,446 103,978

RefertoNote31fordetailsofcontingentliabilities.

NOTE 37 – DIRECTOR AND ExECUTIVE DISCLOSURESInformationregardingindividualdirectors’andexecutives’compensationandsomeequityinstrumentsdisclosures,aspermittedbyCorporations Regulations 2001,areprovidedintheRemunerationReportcontainedwithinthedirectors’report.TherelevantsectionsoftheRemunerationReportareoutlinedbelow:

Section of Remuneration Report Directors’ report page reference

Non-executivedirectorremuneration 35ManagingDirectorandexecutiveremuneration 36Fixedannualremuneration 36Variableremuneration–shorttermincentive(“STI”) 36Variableremuneration–longtermincentive(“LTI”) 37Employmentcontracts 38Directors’positionandperiodofresponsibility 39Directors’andexecutives’remuneration 40

direCtorsThefollowingpersonsweredirectorsofAmalgamatedHoldingsLimitedduringthefinancialyear:

Name Position Period of responsibility

AGRydge Non-executivedirectorandChairman 1July2008to30June2009AJClark Non-executivedirectorandleadindependentdirector 1July2008to30June2009TCFord Non-executivedirector 1July2008to30June2009RMGraham Non-executivedirector 1July2008to30June2009MHellicar Non-executivedirector 1July2008to23April2009RGNewton Non-executivedirector 1July2008to30June2009DCSeargeant ManagingDirector 1July2008to30June2009

other key management personnelThefollowingpersonsalsohadauthorityandresponsibilityforplanning,directingandcontrollingtheactivitiesoftheGroup,directlyorindirectly,duringthefinancialyear:

Name Position and employer Period of responsibility

NCArundel ManagingDirector,RydgesHotelsLimited 1July2008to30June2009GCDean CompanySecretary,AmalgamatedHoldingsLimited 1July2008to30June2009MRDuff DirectorCommercial,AmalgamatedHoldingsLimited 1July2008to30June2009HREberstaller ManagingDirectorAHLStrategicInvestments,TheGreaterUnionOrganisationPtyLimited 1July2008to30June2009RDEntwistle ManagingDirectorAHLEntertainment,TheGreaterUnionOrganisationPtyLimited 1July2008to7February2009PWHorton DirectorFinance&Accounting,AmalgamatedHoldingsLimited 1July2008to30June2009KJKobishop CorporateDirectorofFoodandBeverage,AmalgamatedHoldingsLimited 15September2008to30June2009



NOTE 37 – DIRECTOR AND ExECUTIVE DISCLOSURES (CONTINUED)Alloftheabovepersons,withtheexceptionofKJKobishopwhocommencedemploymentwiththeGroupon15September2008,werealsokeymanagementpersonsduringtheyearended30June2008.

key management personnel remunerationThekeymanagementpersonnelremunerationincludedinemployeeexpensesisasfollows:

The Group The Company

2009 2008 2009 2008 $ $ $ $

employee benefitsShort-term 6,434,500 5,187,916 5,299,120 3,921,399Otherlong-term 327,252 96,132 330,204 65,426Terminationbenefits 123,750 – – –Post-employment 124,342 132,307 90,296 93,168Equitycompensation 836,565 462,369 716,960 377,407

7,846,409 5,878,724 6,436,580 4,457,400

option holdings and transaCtionsThemovementduringtheyearinthenumberofoptionsoverordinarysharesinAmalgamatedHoldingsLimitedheld,directly,indirectlyorbeneficially,byeachkeymanagementpersonnel,includingtheirrelatedparties,isasfollows:

held at the held at vested and beginning the end of exercisable of the year granted exercised other (a) the year at 30 June

direCtorDCSeargeant 2009 500,000 – (500,000) – – – 2008 750,000 – (250,000) – 500,000 500,000

exeCutives NCArundel 2009 – – – – – – 2008 – – – – – –

GCDean 2009 30,000 – (30,000) – – – 2008 60,000 – (30,000) – 30,000 30,000

MRDuff 2009 – – – – – – 2008 – – – – – –

HREberstaller 2009 – – – – – – 2008 – – – – – –

RDEntwistle(b) 2009 – – – – – – 2008 – – – – – –

PWHorton 2009 45,000 – (45,000) – – – 2008 100,000 – (55,000) – 45,000 45,000

KJKobishop(c) 2009 – – – – – – 2008 – – – – – –

(a) Thismovementrepresentsthebalanceofordinarysharesheldattherelevantdate,beingthedateofappointmenttotheexecutivepositionorterminationfromtheGroup.(b) RDEntwistleceasedemploymentwiththeGroupon7February2009.(c) KJKobishopcommencedemploymentwiththeGroupon15September2008.

Therearenooutstandingoptionsat30June2009(2008:743,500).Nooptionshavebeengrantedsincetheendoftheyear.

104


NOTE 37 – DIRECTOR AND ExECUTIVE DISCLOSURES (CONTINUED)performanCe share holdings and transaCtionsThemovementduringtheyearinthenumberofperformancesharesinAmalgamatedHoldingsLimitedheld,directly,indirectlyorbeneficially,byeachkeymanagementpersonnel,includingtheirrelatedparties,isasfollows:

held at the held at beginning the end of of the year granted forfeited the year

direCtorDCSeargeant 2009 200,000 140,000 – 340,000 2008 100,000 100,000 – 200,000

exeCutivesNCArundel 2009 20,711 23,491 – 44,202 2008 5,972 14,739 – 20,711

GCDean 2009 16,333 14,791 – 31,124 2008 7,337 8,996 – 16,333

MRDuff 2009 26,616 23,027 – 49,643 2008 12,183 14,433 – 26,616

HREberstaller 2009 10,954 – – 10,954 2008 4,982 5,972 – 10,954

RDEntwistle(a) 2009 34,314 – 34,314 – 2008 15,938 18,376 – 34,314

PWHorton 2009 26,386 22,099 – 48,485 2008 12,183 14,203 – 26,386

KJKobishop(b) 2009 – 100,000 – 100,000 2008 – – – –

(a) RDEntwistleceasedemploymentwiththeGroupon7February2009.(b) KJKobishopcommencedemploymentwiththeGroupon15September2008.

Noperformanceshareshavebeengrantedsincetheendoftheyear.Noperformanceshareswereheldbyrelatedpartiesofkeymanagementpersonnel.

eQuity holdings and transaCtionsThemovementduringtheyearinthenumberofordinarysharesofAmalgamatedHoldingLimitedheld,directly,indirectlyorbeneficially,bykeymanagementpersonnel,includingtheirrelatedparties,isasfollows:

held at the received held at beginning on exercise the end of of the year purchases of options sales other (a) the year

direCtors AGRydge(Chairman) 2009 57,704,154 275,000 – – – 57,979,154 2008 57,704,154 – – – – 57,704,154

AJClark 2009 40,000 10,000 – – – 50,000 2008 40,000 – – – – 40,000

TCFord 2009 10,000 – – – – 10,000 2008 10,000 – – – – 10,000

RMGraham 2009 10,626 – – – – 10,626 2008 10,626 – – – – 10,626

MHellicar(b) 2009 2,000 – – – (2,000) – 2008 2,000 – – – – 2,000

RGNewton(c) 2009 3,000 17,000 – – – 20,000 2008 – – – – 3,000 3,000

DCSeargeant 2009 470,500 – 500,000 (250,000) – 720,500(ManagingDirector) 2008 250,500 – 250,000 (30,000) – 470,500


NOTE 37 – DIRECTOR AND ExECUTIVE DISCLOSURES (CONTINUED)

held at the received held at beginning on exercise the end of of the year purchases of options sales other (a) the year

exeCutivesNCArundel 2009 – – – – – – 2008 – – – – – –

GCDean 2009 45,500 – 30,000 – – 75,500 2008 25,500 – 30,000 (10,000) – 45,500

MRDuff 2009 30,000 – – – – 30,000 2008 30,000 – – – – 30,000

RDEntwistle(d) 2009 – – – – – – 2008 – – – – – –

HREbertstaller 2009 – – – – – – 2008 – – – – – –

PWHorton 2009 45,000 – 45,000 (45,000) – 45,000 2008 30,000 – 55,000 (40,000) – 45,000

KJKobishop(e) 2009 – – – – – – 2008 – – – – – –

(a) Thismovementrepresentsthebalanceofordinarysharesheldattherelevantdate,beingthedateofappointmenttotheexecutiveposition,commencementwiththeGrouporterminationfromtheGroup.

(b) MHellicarresigned23April2009.(c) RGNewtonwasappointedon29February2008.(d) RDEntwistleceasedemploymentwiththeGroupon7February2009.(e) KJKobishopcommencedemploymentwiththeGroupon15September2008.

Nosharesweregrantedtokeymanagementpersonnelduringthefinancialreportingperiodascompensationintheyearto30June2009.

loans and other transaCtions With key management personnel and their related partiesLOANSTOKEYMANAGEMENTPERSONNELANDTHEIRRELATEDPARTIESTherewerenoloansabove$10,000outstandingatanytimeduringtheyearwithanykeymanagementpersonnelortheirrelatedparties.

OTHERTRANSACTIONSWITHTHECOMPANYORITSCONTROLLEDENTITIESAGRydgeandAJClarkaredirectorsofCarltonInvestmentsLimited.CarltonInvestmentsLimitedrentsofficespacefromacontrolledentity.RentischargedtoCarltonInvestmentsLimitedatamarketrate.Rentreceivedduringtheyearwas$33,100(2008:$31,774).TheCompanyholdssharesinCarltonInvestmentsLimited.DividendsreceivedduringtheyearfromCarltonInvestmentsLimitedtotalled$427,524(2008:$402,318).

AGRydgepaidrentandleviestoacontrolledentityduringtheyearamountingto$19,011(2008:$18,294).AcompanyassociatedwithRMGrahampaidrentandleviestoacontrolledentityduringtheyearamountingto$5,432(2008:$5,226).RentischargedtoAGRydgeandRMGrahamatmarketrates.

AcompanyassociatedwithRGNewtonpaidhotelmanagementfeestoacontrolledentityduringtheyearamountingto$178,563.RGNewtonwasappointedadirectoroftheCompanyon29February2008.Hotelmanagementfeespaidtoacontrolledentityduringtheperiodfrom1March2008to30June2008totalled$63,391.

Duringtheyear,acontrolledentitypurchasedmanagementrightsandaninterestinthepropertyknownasRydgesSabayaResortfromthevendorcompanyassociatedwithRGNewton.ThepurchasewasconcludedinJune2009foraconsiderationof$20,550,000.

Apartfromthedetailsdisclosedinthisnote,nokeymanagementpersonnelhasenteredintoamaterialcontractwiththeParentEntityortheGroupsincetheendofthepreviousyearandtherewerenomaterialcontractsinvolvingdirectors’interestsexistingatreportingdate.

Fromtimetotime,keymanagementpersonneloftheParentEntityorGroup,ortheirrelatedparties,maypurchasegoodsorservicesfromtheGroup.ThesepurchasesareusuallyonthesametermsandconditionsasthosegrantedtootherGroupemployees.WherethepurchasesareontermsandconditionsmorefavourablethanthosegrantedtootherGroupemployees,theresultingbenefitsformpartofthetotalremunerationoutlinedwithintheRemunerationReport.

106


NOTE 38 – RELATED PARTIESCompanyTheCompanyorparententitywithintheGroupisAmalgamatedHoldingsLimited.

subsidiariesInterestinsubsidiariesaresetoutinNote34. Company

2009 2008 $’000 $’000

TheaggregateoutstandingamountsatreportingdateofloansbetweentheCompanyanditswholly-ownedsubsidiariesandtherevenueandexpenseitemsbroughttoaccountbytheCompanyinrelationtotheseloansduringtheyearisasfollows:Loanstocontrolledentities(non-current) 188,389 191,725

Loansfromcontrolledentities(non-current) – 14,153

Dividendsfromcontrolledentities 53,007 45,007

Interestreceivedordueandreceivable 6,468 27,896

Interestpaidordueandpayable – 18,495

Managementandconsultingfeespaidordueandpayable 11,299 9,631

Currenttaxpayableassumedfromwholly-ownedtaxconsolidatedentities 20,120 44,882

Taxlossesassumedfromwholly-ownedtax-consolidatedentitiesatnoconsideration – –

loansLoansbetweenentitiesintheGrouparerepayableat13monthsnotice.Interestischargedmonthlyatcommercialratesofinterest,basedontheCompany’saveragecostoffunds.

management feesTheCompanychargesallAustralianresidentoperatingandwholly-ownedcontrolledentitiesamanagementfeeequalto3%(2008:3%)ofnetoperatingrevenueformanagementservicesprovidedbydirectorsandseniorexecutivesoftheCompany.Inadditiontothischarge,othercosts,includingtheemploymentcostsforcertainmanagementstaff,arerechargedbytheCompanytowholly-ownedcontrolledentitiesbasedonbenefitderivedortimespent.

assoCiatesInterestreceivedandpaidontheloanstoandfromassociatesisshowninNotes3and4.

Othertransactionswere:

• saleofmanagementservicesatacostof$nil(2008:$49,000);

• saleofmanagementservicestoformerassociate–AtlabHoldingsPtyLimitedof$250,000(2008:$500,000);

• receiptofpropertyrentalsfromformerassociatesof$97,000(2008:$271,000);

• sharebasedpaymentcostsof$166,000(2008:$76,000)rechargedtoanassociate;and

• intheyearto30June2008,priortothedateofsaleoftheGroup’sinterestinRoadshowDistributorsPtyLimited,filmstoavalueof$1,582,000werehiredfromRoadshowDistributorsPtyLimited,onnormalcommercialterms.

relationships With Jointly Controlled entitiesRefertoNotes11,16,31,33and36.

rent of premisesTheCompanyoccupiespremisesownedbyawhollyownedcontrolledentity,TheGreaterUnionOrganisationPtyLimited.TheCompanywasnotchargedrentforthesepremises.

key management personnelDisclosuresrelatingtodirectorsandnamedexecutivesaresetoutinNote37.


The Group Company

2009 2008 2009 2008 $’000 $’000 $’000 $’000

NOTE 39 – RECONCILIATION OF CASH FLOwS FROM OPERATING ACTIVITIESreConCiliation of profit after inCome tax expense to net Cash provided by operating aCtivitiesProfitafterincometaxexpense 69,477 99,515 59,962 42,022

Adjustmentsfor:Loss/(profit)onsaleofnon-currentassets 366 (64,131) – –Depreciationandcarryingvalueadjustments 25,405 23,159 51 46Amortisationandcarryingvalueadjustments 5,227 5,354 45 58Increase/(decrease)inprovisions 759 (2,658) 686 416(Decrease)/increaseinincometaxespayable (13,446) 20,573 (35,654) (18,597)Fairvaluedecrement 1,030 1,400 – –Share-basedpaymentsexpense 1,258 1,409 569 977Equityaccountedinvestmentdecreases 43,744 47,430 – –Shareofequityaccountedinvestees’netprofit (42,189) (37,461) – –Impairmentadjustments 5,811 – – 12,250Unrealisedforeignexchange(gains)/losses (89) 75 – –

Net cash provided by operating activities before change in assets and liabilities 97,353 94,665 25,659 37,172Changeinassetsandliabilitiesadjustedforeffectsofconsolidationofcontrolledentitiesacquired/disposedduringtheyear: Intercompanyrevenue – – (70,774) (82,534)Intercompanyexpense – – – 18,495(Increase)/decreaseinreceivables (4,783) 3,489 353 (104)Increaseininventories (1,738) (1,800) – –(Increase)/decreaseinotherassets (2,585) 1,796 – –Increase/(decrease)increditorsandaccruals 8,343 (2,487) 399 368Increase/(decrease)indeferredrevenue 4,631 (585) – –(Decrease)/increaseindeferredtaxitems (6,718) 6,641 – –Increaseinotherliabilities 7,252 – – –Increaseinborrowingcostspayable 236 1,283 – –

Net cash provided/(used) by operating activities 101,991 103,002 (44,363) (26,603)

NOTE 40 – EVENTS SUbSEQUENT TO REPORTING DATEdividendsForfinaldividendsdeclaredafter30June2009,seeNote8.

108

1. Intheopinionofthedirectors:

(a) thefinancialstatementsandnotes,setoutonpages46to107,andtheremunerationdisclosuresthatarecontainedintheRemunerationReportintheDirectors’Reportsetoutonpages35to44,areinaccordancewiththeCorporationsAct2001,including:

(i) givingatrueandfairviewofthefinancialpositionoftheCompany’sandtheGroup’sfinancialpositionasat30June2009andoftheirperformanceforthefinancialyearendedonthatdate;and

(ii) complyingwithAustralianAccountingStandards(includingtheAustralianAccountingInterpretations)andtheCorporationsRegulations2001;

(b) thefinancialreportalsocomplieswithInternationalFinancialReportingStandardsasdisclosedinNote1(a);and

(c) therearereasonablegroundstobelievethattheCompanywillbeabletopayitsdebtsasandwhentheybecomedueandpayable.

2. TherearereasonablegroundstobelievethattheCompanyandthesubsidiariesidentifiedinNote32willbeabletomeetanyobligationsorliabilitiestowhichtheyareormaybecomesubjectbyvirtueoftheDeedofCrossGuaranteebetweentheCompanyandthosesubsidiariespursuanttoASICClassOrder98/1418.

3. Thedirectorshavereceivedthedeclarationsrequiredtobemadetothedirectorsinaccordancewithsection295AoftheCorporationsAct2001fortheyearended30June2009.

Signedinaccordancewitharesolutionofthedirectors:

AG Rydge DC Seargeant Director Director

DatedatSydneythis20thdayofAugust2009.

Directors’ Declaration


Independent Auditor’s Reportto the members of amalgamated holdings limited

REPORT ON THE FINANCIAL REPORT

WehaveauditedtheaccompanyingfinancialreportofAmalgamatedHoldingsLimited(theCompany),whichcomprisesthebalancesheetsasat30June2009,andtheincomestatements,statementsofchangesinequityandcashflowstatementsfortheyearendedonthatdate,asummaryofsignificantaccountingpoliciesandotherexplanatorynotes1to40andthedirectors’declarationoftheGroupcomprisingtheCompanyandtheentitiesitcontrolledattheyear’sendorfromtimetotimeduringthefinancialyear.

direCtors’ responsibility for the finanCial reportThedirectorsoftheCompanyareresponsibleforthepreparationandfairpresentationofthefinancialreportinaccordancewithAustralianAccountingStandards(includingtheAustralianAccountingInterpretations)andtheCorporationsAct2001.Thisresponsibilityincludesestablishingandmaintaininginternalcontrolrelevanttothepreparationandfairpresentationofthefinancialreportthatisfreefrommaterialmisstatement,whetherduetofraudorerror;selectingandapplyingappropriateaccountingpolicies;andmakingaccountingestimatesthatarereasonableinthecircumstances.Innote1,thedirectorsalsostate,inaccordancewithAustralianAccountingStandardAASB101Presentation of Financial Statements,thatthefinancialreport,comprisingthefinancialstatementsandnotes,complieswithInternationalFinancialReportingStandards.

auditor’s responsibilityOurresponsibilityistoexpressanopiniononthefinancialreportbasedonouraudit.WeconductedourauditinaccordancewithAustralianAuditingStandards.TheseAuditingStandardsrequirethatwecomplywithrelevantethicalrequirementsrelatingtoauditengagementsandplanandperformtheaudittoobtainreasonableassurancewhetherthefinancialreportisfreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialreport.Theproceduresselecteddependontheauditor’sjudgement,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialreport,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’spreparationandfairpresentationofthefinancialreportinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebythedirectors,aswellasevaluatingtheoverallpresentationofthefinancialreport.

Weperformedtheprocedurestoassesswhetherinallmaterialrespectsthefinancialreportpresentsfairly,inaccordancewiththeCorporationsAct2001andAustralianAccountingStandards(includingtheAustralianAccountingInterpretations),aviewwhichisconsistentwithourunderstandingoftheCompany’sandtheConsolidatedEntity’sfinancialpositionandoftheirperformance.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

independenCeInconductingouraudit,wehavecompliedwiththeindependencerequirementsoftheCorporations Act 2001.

auditor’s opinionInouropinion:

(a) thefinancialreportofAmalgamatedHoldingsLimitedisinaccordancewiththeCorporationsAct2001,including:

(i) givingatrueandfairviewoftheCompany’sandtheConsolidatedEntity’sfinancialpositionasat30June2009andoftheirperformancefortheyearendedonthatdate;and

(ii) complyingwithAustralianAccountingStandards(includingtheAustralianAccountingInterpretations)andtheCorporationsRegulations2001.

(b) thefinancialreportalsocomplieswithInternationalFinancialReportingStandardsasdisclosedinnote1.

REPORT ON THE REMUNERATION REPORT

WehaveauditedtheRemunerationReportincludedinpages35to44oftheDirectors’Reportfortheyearended30June2009.ThedirectorsoftheCompanyareresponsibleforthepreparationandpresentationoftheRemunerationReportinaccordancewithsection300AoftheCorporationsAct2001.OurresponsibilityistoexpressanopinionontheRemunerationReport,basedonourauditconductedinaccordancewithauditingstandards.

auditor’s opinionInouropinion,theRemunerationReportofAmalgamatedHoldingsLimitedfortheyearended30June2009complieswithsection300AoftheCorporationsAct2001.

KPMG David Rogers Partner

20August2009

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Shareholder Information

AdditionalinformationrequiredbytheASXListingRulesandnotdisclosedelsewhereintheAnnualReportissetoutbelow:

SHAREHOLDINGS (AS AT 21 AUGUST 2009)

substantial shareholdersThenamesofsubstantialshareholderswhohavenotifiedtheCompanyinaccordancewithsection671BoftheCorporationsAct2001are:

Shareholder Number of ordinary shares held

EnbeearPtyLimited 56,598,377*CarltonInvestmentsLimited 56,588,377InvestorsMutualLimited 14,612,359IOOFHoldingsLimited 13,017,940Maple-BrownAbbottLimited 8,184,982

* IncludesCarltonInvestmentsLimitedholding.

voting rightsORDINARYSHARESTherewere4,399holdersofordinarysharesoftheCompany.Thevotingrightsattachingtotheordinaryshares,setoutinclause54oftheCompany’sConstitution,are:

“Subjecttoanyrightsorrestrictionsforthetimebeingattachedtoanyclassorclassesofshares:

(a) atmeetingsofmembersorclassesofmembers,eachmemberentitledtovotemayvoteinpersonorbyproxyorattorney;and

(b) onashowofhands,everypersonpresentwhoisamemberorarepresentativeofamemberhasonevote,andonapoll,everymemberpresentinpersonorbyproxyorattorneyandeverypersonwhoisarepresentativeofamemberhasonevoteforeachshareheholdsorrepresentsasthecasemaybe.”

OPTIONSTherewerenooutstandingoptionsoftheCompanyasat21August2009.

distribution of shareholders Ordinary shares

number of number of shareholders shares held

1–1,000 2,239 1,026,7511,001–5,000 1,332 3,583,5585,001–10,000 373 2,823,35010,001–100,000 416 10,157,440100,001andover 39 112,805,104

4,399 130,396,203

Thenumberofshareholdersholdinglessthanamarketableparcelis141.

unQuoted ordinary sharesTherewere1,408,941unquotedordinarysharesissuedpursuanttotheemployeeshareplans.Theshareswereheldby636holders.


tWenty largest shareholdersThenamesofthe20largestshareholdersofthequotedsharesare:

Number of Percentage of shares held capital held

EnbeearPtyLimited 28,028,359 21.5EneberInvestmentCompanyLimited 16,045,906 12.3RBCDexiaInvestorServicesAustraliaNomineesPtyLimited(BkcustAccount) 11,435,987 8.8NationalNomineesLimited 10,915,904 8.4RBCDexiaInvestorServicesAustraliaNomineesPtyLimited 8,176,982 6.3HSBCCustodyNominees(Australia)Limited 5,279,325 4.0TheManlyHotelsPtyLimited 4,625,001 3.5JPMorganNomineesAustraliaLimited 4,453,476 3.4CarltonHotelLimited 4,262,225 3.3AlphoebPtyLimited 3,203,846 2.5CiticorpNomineesPtyLimited 2,345,885 1.8MrAlanGrahamRydge 1,801,455 1.4CogentNomineesPtyLimited 1,580,803 1.2CiticorpNomineesPtyLimited(CFSILCwlthAustSHS18Account) 1,437,186 1.1TNPhillipsInvestmentsPtyLimited 1,205,000 0.9SandhurstTrusteesLimited(SISFAccount) 1,115,527 0.9AustralianUnitedInvestmentCompanyLimited 1,000,000 0.8ArgoInvestmentsLimited 752,392 0.6CiticorpNomineesPtyLimited(CFSILCwlthAustSHS14Account) 570,020 0.4CiticorpNomineesPtyLimited(CFSILCwlthAustSHS17Account) 513,600 0.4

108,748,879 83.5

on-market buy baCkThereisnocurrenton-marketbuyback.

seCurities exChangeAmalgamatedHoldingsLimited,incorporatedanddomiciledinAustralia,isapubliclylistedcompanylimitedbyshares.SharesarelistedontheASXunderthecodeAHD.DetailsoftradingactivityarepublishedinmostAustraliandailynewspapers.

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Other Information

rehabilitation of thredbo river banksOn16August2008,between800and1,200litresofdieselfueloverflowedfromaHeaderTankattheThredboskiresortoperatedbyKosciuszkoThredboPtyLimited(“KT”).Asaresult,anunknownvolumeescapedintotheThredboRiver.

Theincidentoccurredduetoanumberofreasons:

(a) afaultyfloatlevelswitchintheHeaderTankwhichwassuppliedbyathirdparty;

(b) theabsenceofa“returnline”fromtheHeaderTanktothemaintankthatsuppliedtheHeaderTankwithdiesel.ThiswouldhavepreventedanoverflowfromtheHeaderTankintheeventthatthefloatswitchfailed;

(c) theabsenceofanalarmsystem.ThiswouldhavenotifiedKTintheeventofanyoverflowofdieselfromtheHeaderTank;and

(d) theabsenceofabundaroundtheHeaderTankorothercontainmentarrangements.

KTacknowledgesandacceptsresponsibilityforthecausesoftheincidentlistedat(b),(c)and(d)above.

TheEnvironmentProtectionAuthority(“EPA”)investigatedwhethertherewasabreachoftheProtectionoftheEnvironmentOperationsAct.KosciuszkoThredboPtyLtdhasofferedandtheEPAhasacceptedanenforceableundertakingundersection253AoftheProtectionoftheEnvironmentOperationsAct.

annual general meetingTheAnnualGeneralMeetingwillbeheldat10amonFriday23October2009atTheStateBallroom,StateTheatre,49MarketStreet,SydneyNSW2000.

Company seCretaryMrGregDeanCA,ACIS

registered offiCeTheregisteredofficeoftheCompanyis:

Level1049MarketStreetSydneyNSW2000

Telephone0293736600Facsimile 0293736534

www.ahl.com.au

share registryComputershareInvestorServicesPtyLimited

GPOBox2975MelbourneVIC3001

Enquiries(withinAustralia) 1300850505Enquiries(outsideAustralia) 61394154000Facsimile 61394732500

www.computershare.com

AmAlgAmAted holdings limitedAbn 51 000 005 103

amalgamated holdings limited a report 200success of the gold class concept. the increased box office...

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