Financial Results

Profit after tax and before significant items was $397 million.

Significant items for the year were a profit of $136.7 million.

The profit after tax and significant items was $533.7 million.

The operating cash flow after movement in working capital, the cash component of significant items and base capital expenditure was $643.9 million.

After payment of $319.2 million in dividends, the free cash flow was
$324.7 million.
Key Results Year to 30 June 2007
  2007 2006 % Change
Sales ($ million) 10,875.2 11,439.3 (4.9)
Profit before interest, tax, depreciation and amortisation (PBITDA) ($ million) 1,198.9 1,249.1 (4.0)
Profit before interest and tax (PBIT) ($ million) 731.9 775.7 (5.6)
Profit after tax (PAT)1($ million) 397.0 405.9 (2.2)
Significant items1 ($ million) 136.7 (54.6) 350.4
Profit after tax after significant items ($ million) 533.7 351.3 51.9
Earnings per share2(cents) 44.2 46.1 (4.1)
Operating cash flow3 ($ million) 643.9 522.3 23.3
Dividend (cents) 34.0 34.0 -
(1) Significant items for the current year relate mainly to the gain on disposal of the European PET Packaging business, partially offset by the Fibre Packaging Australasia recovery plan, the Flexible market sector rationalisation and asset impairments.
(2) Before significant items.
(3) After significant items.
Cash Flow from Operations
$ million 2007 2006
PBITDA 1,198.9 1,249.1
Interest (203.5) (239.6)
Tax (80.1) (79.1)
Cash significant items (106.2) (26.0)
Base capital exenditure (300.6) (441.8)
Movement in working capital1 256.7 123.2
Other (121.3) (63.5)
Operating cash flow 643.9 522.3
Dividends (319.2) (308.8)
Free cash flow 324.7 213.5
Divestments 79.6 264.2
Growth capital / acquisitions (165.7) (69.5)
Proceeds from share issues (310.7) 84.8
Foreign exchange rate changes (5.7) 4.8
Movement in net debt (77.8) 497.8
(1) Movement in working capital relates to continuing operations
Operating Cash Flow
$ million
operating cash flow $million
Balance Sheet
$ million 2007 2006
Current assets 3,394.5 3,196.9
Property, plant and equipment 3,835.4 4,296.8
Intangibles 1,458.7 1,888.4
Investments and other assets 453.7 516.1
Total assets 9,142.3 9,898.2
Short-term debt 1,378.6 690.4
Long-term debt 1,620.5 2,084.9
Creditors and provisions 2,561.9 3,052.7
Convertible notes - 464.2
Shareholders’ equity 3,581.3 3,606.0
Total liabilities and shareholders’ equity 9,142.3 9,898.2
(1) Movement in working capital relates to continuing operations
Average Working Capital to Sales*
average working capital to sales
Commentary from the CFO

The highlight for the year was the excellent performance in cash management, with the operating cash flow up 23% to $644 million.

Working capital for the year reduced by $257 million and the working capital to sales ratio decreased from 12.4% to 9.9%. During the past two years $380 million has been released from working capital to fund growth opportunities and improve returns for shareholders.

Following the receipt of the proceeds from the sale of the European PET Packaging and the Australasian Food Can and Aerosol businesses for $870 million, the later announced subsequent to the finalisation of the full year accounts, gearing will reduce to approximately 36%.

With the outlook for ongoing strong operating cash flow and improved earnings on a continuing business basis, the Company has elected to undertake a share buy back of up to $350 million.

After this buy back, it is anticipated that gearing will be below the target range of 50% to 55%.

signature leslie Desjardins

Leslie Desjardins
Executive General Manager Finance