Toll Holdings Limited Annual Report 2012 Toll Group Is the Asian Region’S Leading Provider of Integrated Logistics

For personal use only Toll Holdings Limited Annual Report 2012 Toll Group is the Asian region’s leading provider of integrated logistics. Operating out of the Asia Pacific region, with a global reach, Toll employs around 45,000 people in over 55 countries. The Group is divided into six divisions. Toll Global Toll Global Toll Global Toll Global Toll Domestic Toll Specialised Resources Logistics Forwarding Express Forwarding and Domestic Provides logistics World-class contract International freight Market leading Domestic freight Freight services to the oil logistics solutions forwarding and express freight operator forwarding across Provides a & gas, mining, and provider in the advanced supply in Australia providing Australia and comprehensive suite of government and Asia Pacific region. chain management time sensitive freight New Zealand. options Australia-wide defence sectors services. distribution, and top for palletised freight, in Australia, Asia 10 express logistics liquids distribution, and Africa. provider in Japan. chemicals distribution and warehousing, through to relocation services. Industries we worked Revenue split by with in FY12 division in FY12 32% 14% Toll Global Resources 17% Toll Global Logistics 10% Toll Global Forwarding 15% 16% Toll Global Express 10% 26% 8% 8% 6% 5% 16% Toll Domestic Forwarding 17% Toll Specialised and Retail, foodMining and beverage andSteel resources and industrialTransport GovernmentAutomotive and defenceChemical and machinery andOther agribusiness Domestic Freight Contents 2012 highlights 1 Corporate Social Responsibility Report 64 Notes to the Consolidated 81 Financial Statements Chairman’sFor personal use only message 2 Financial Statements 73 Managing Director’s report 6 Consolidated statement of 73 Directors’ declaration 149 Annual Financial Report 13 comprehensive income Independent auditor’s report to the 150 members of Toll Holdings Limited Directors’ Report 15 Consolidated statement of changes 74 in equity Shareholder information 151 Corporate Governance Statement 55 Consolidated statement 78 Ten year summary as at 30 June 152 of financial position Company directory 156 Consolidated statement of cash flows 79 2012 EBIT* ($M) EBITDA* ($M) REVENUE ($M) highlights $411 $681 $8,707 500 700 900 800 600 400 700 500 600 300 400 500 400 200 300 300 200 100 200 100 100 0 0 0 10 11 12 10 11 12 10 11 12 *Before non-recurring items DIVIDENDS OPERATING LOST TIME PER SHARE (¢) CASH FLOW ($M) INJURY Unless otherwise stated, FREQUENCY all $ amounts relate to Australian Dollars RATE throughout this report. 25¢ $673 2.13 25 700 5 600 20 4 500 For personal use only 15 3 400 10 300 2 200 5 1 100 0 0 0 10 11 12 10 11 12 10 11 12 1 Chairman’s message I am once again pleased to announce that The Board In Australia, Toll has been preparing for Toll has produced a solid underlying result carbon pricing for some time, in order to During the past year, the Board spent in very challenging market conditions. present our customers with a selection some time in India, travelling to our Our business diversity has again stood of carbon intensity options ahead of the operations there and meeting some us in good stead this year, and we have Federal Government‘s Energy Legislation, of our key customers. This gave us a produced a strong result despite the write which came into effect on 1 July 2012. chance to understand our business, downs in some businesses. The carbon price focuses all Australian our people and our operations so much businesses on improving energy As you will be aware, the past year better. Seeing the challenges we face efficiency and decreasing greenhouse has seen the role of Managing Director in India versus those we have to work gas emissions—Toll included. transition from Paul Little to Brian Kruger. with in our home market, helps us to The Board led the recruitment process further understand the complexities We do not expect carbon pricing to and appointment of Brian, and we are and opportunities of our business. have a material impact on our financial delighted with the way he has settled in. performance in the coming year, as we Our people will pass on any significant impacts on In the relatively short time in his new Today Toll is a company of around our costs to customers. We are working role, Brian has impressed the Board not 45,000 people in over 55 countries. Our to offer alternative transport or energy only in his strong decision making and workforce diversity has contributed to the solutions to our customers who strategic vision, but also in his thorough richness of our organisation and is a key want a choice. understanding of the business and his competitive advantage. Our success is leadership skills. A perfect example During the last year, Toll issued a public a reflection of the quality and skills of our of this is the way he has taken on the report to the Carbon Disclosure Project talented people. One Toll program. (CDP) along with 72 other firms from We work hard to ensure our workplaces the ASX top 100. The CDP ranked One Toll is about maximising the are inclusive and this is promoted through Toll second in the industrial sector, with opportunities that come from being part our Equal Employment Opportunities and a score of 76. of the broader Toll Group. As many of Diversity Policy. We have also set diversity you will know, a large part of the growth Scores above 70 are seen to indicate that objectives that measure gender diversity of Toll has come from acquiring a number the organisation has an understanding relating to senior roles and achieving pay of large and small businesses. A key of business issues related to climate equity within job groups, job families and strength of the Group is its empowered change, and is embedding action on performance level by 2015. businesses and ownership of results by climate change risks and opportunities our business units. The smooth transition to our new into the core of its operations. We are Managing Director demonstrates the pleased with this result and will look to Our task is now to fully integrate all of our strong succession planning that we have build on it over the coming years. operations under the One Toll umbrella in place here at Toll. We continue to through our external appearance, and Safety develop our existing and new managers also to bring about common processes, through our Leadership@Toll program; We know that businesses that manage culture and values systems internally. close to 700 managers have now safety well are generally well-managed For personal use only The Board fully supports Brian and participated in this program. businesses. We are no different and want his management team to achieve this to be known for our outstanding safety Environment goal, and we look forward to being able record as well as being relied upon for to report on even more collaborative We have further developed our getting the job done. successes in the years to come. Smarter Green program throughout the As Chairman I have been impressed business. This is our commitment to the by Brian and his team’s approach to environment and sustainable logistics. safety and their passion for driving this 2 Chairman’s message For personal use only 3 home across the organisation. We have We have continued to see some very On behalf of the Board, I would like to committed to harmonising our approach positive results through the Second thank all Toll employees for their excellent to safety across the Group through the Step program again this year with 35 work throughout the period. Think safe. Act safe. Be safe. strategy candidates coming through the program As outlined in the 2011 annual report, that will be rolled out during the current within Australia. sometime after the 2012 AGM we financial year. We are also taking the initiative to expect to be able to announce whether This will help us to live our safety develop our first Reconciliation Action Paul Little is coming back to the messages and give us a number of Plan to demonstrate our commitment to Board. Paul is one of the world’s most lead indicators of safety performance narrowing the gap between Indigenous experienced and respected logistics that extend beyond our Lost Time and non-Indigenous Australians. This is executives and would be a fantastic Injury Frequency Rate. Impressively, further to Toll signing up to the Australian contributor to the company as a non- this strategy will encompass our entire Employment Covenant in 2011. executive director if he were to return. business around the globe, and I am Looking Forward We have previously stated that Paul keen to observe the success that this needs to have an appropriate break approach will bring. The past 12 months has been a period of from Toll. When he has completed an change for Toll. Moving from a Managing Community appropriate break, the Board will then Director of 26 years, to a new chapter assess the way ahead. By the very nature of what we do, we with a new leader has been an exciting maintain strong links to the communities time for the Board and me. I look forward to welcoming you at in which we work. This year has been no the Annual General Meeting on Friday We have seen Toll’s structures maturing exception with many of our businesses 26 October at the Melbourne through improved processes, internal around the globe getting involved in Convention Centre. refinements and driving productivity community initiatives, sponsorships growth. We have asked more questions and events. of ourselves and will continue to do so In addition to offering financial assistance, as we search for the best ways to drive we ship freight free of charge to help efficiency in our operations.

Load more