Appendix 4E – Preliminary Final Report CSR Limited ABN 90 000 001
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Appendix 4E – Preliminary Final Report CSR Limited ABN 90 000 001 276 For the year ended 31 March 2018 Details of the reporting years Current: Full year ended 31 March 2018 Previous corresponding: Full year ended 31 March 2017 Result for announcement to the market1 A$m Revenue from ordinary activities up 6% to $2,606.2 Net profit after tax from ordinary activities, before significant up 16% to $212.7 items, attributable to members2 Net profit after tax from ordinary activities, after significant items, up 6% to $188.8 attributable to members Net tangible assets As at 31 March 2018 31 March 2017 Net tangible assets per share attributable to CSR shareholders $2.15 $2.00 Dividends Financial year ended 31 March 2018 Franking 31 March 2017 Franking Interim 13.5 cents 50% 13.0 cents 0% Final 13.5 cents a 75% 13.0 cents 50% a For Australian tax purposes, 100% of the unfranked amount of the final dividend will be Conduit Foreign Income. Record date for determining entitlements to final dividend 1 June 2018 Final dividend payment date 3 July 2018 Dividend Reinvestment Plan The company’s dividend reinvestment plan (DRP) will operate for the final dividend payable on 3 July 2018. The last date for receipt of the election notice for participation in the DRP is 4 June 2018, being the business day after the dividend record date of 1 June 2018. For the final dividend, shares will be acquired on-market and transferred to participants to satisfy any shares to be issued under the DRP. DRP shares will be allocated at the arithmetic average of the daily volume weighted average market prices of shares in CSR sold on ASX’s trading platform (including the closing single price auction but excluding all off-market trades) (“VWAP”) on each day over a period of 10 trading days commencing on 8 June 2018. No discount will apply to shares issued under the DRP. For further details of the DRP please refer to the DRP Terms and Conditions available on CSR’s website (www.csr.com.au). 1 This document represents information provided pursuant to Listing Rule 4.3A of the Australian Securities Exchange. 2 Net profit after tax before significant items is a non-IFRS measure used internally by management to assess the performance of the business and has been extracted or derived from CSR’s financial statements for the year ended 31 March 2018. CSR LIMITED | FINANCIAL REPORT FINANCIAL REPORT Consolidated financial report Notes to the financial report 8 Statement of financial performance 3 1 Basis of preparation 8 Statement of comprehensive income 4 Statement of financial position 5 Financial performance overview 9 2 Segment information 9 Statement of changes in equity 6 3 Significant items 11 Statement of cash flows 7 4 Earnings per share 11 5 Revenue and expenses 12 Notes to the financial report 8 6 Net finance costs 12 Directors’ declaration 43 7 Income tax expense 13 8 Business combinations 14 Balance sheet items 16 9 Working capital 16 10 Property, plant and equipment and intangible assets 17 11 Net deferred income tax assets 19 12 Provisions 20 13 Product liability 21 Capital structure and risk management 23 14 Borrowings and credit facilities 23 15 Issued capital 23 16 Dividends and franking credits 23 17 Reserves 24 18 Financial risk management 25 Group structure 30 19 Subsidiaries 30 20 Deed of cross guarantee 30 21 Non-controlling interests 33 22 Interest in joint operations 33 23 Equity accounting information 34 24 Parent entity disclosures 35 Other 36 25 Employee benefits 36 26 Related party disclosures 40 27 Subsequent events 40 28 Commitments and contingencies 41 29 Other non-current assets 41 30 Auditor’s remuneration 42 31 Other accounting policies 42 2 CSR LIMITED | FINANCIAL REPORT Statement of financial performance $million Note 2018 2017 Trading revenue – sale of goods 2 2,606.2 2,468.3 Cost of sales (1,742.4) (1,634.6) Gross margin 863.8 833.7 Other income 5 58.6 27.6 Warehouse and distribution costs (252.2) (233.4) Selling, administration and other operating costs (358.7) (340.2) Share of net profit of joint venture entities 23 12.7 14.7 Other expenses (26.4) (26.5) Profit before finance costs and income tax 297.8 275.9 Interest income 6 2.3 3.5 Finance costs 6 (12.2) (12.6) Profit before income tax 287.9 266.8 Income tax expense 7 (81.3) (61.7) Profit after tax 206.6 205.1 Profit after tax attributable to: Non-controlling interests 21 17.8 27.2 Shareholders of CSR Limited1 188.8 177.9 Profit after tax 206.6 205.1 Earnings per share attributable to shareholders of CSR Limited Basic (cents per share) 4 37.5 35.3 Diluted (cents per share) 4 37.3 35.1 1 Net profit before significant items attributable to shareholders of CSR Limited is $212.7 million (2017: $183.8 million). Refer to note 3 of the financial statements. The above statement of financial performance should be read in conjunction with the accompanying notes. 3 CSR LIMITED | FINANCIAL REPORT Statement of comprehensive income $million Note 2018 2017 Profit after tax 206.6 205.1 Other comprehensive income (expense), net of tax Items that may be reclassified to profit or loss Hedge profit (loss) recognised in equity 13.4 (44.6) Hedge loss (profit) transferred to statement of financial performance 25.4 (16.3) Exchange differences arising on translation of foreign operations 17 2.0 (0.5) Recycling of foreign currency translation reserve on disposal of equity accounted 17 – (5.6) investment, transferred to statement of financial performance Income tax (expense) benefit relating to these items 11 (11.7) 18.4 Items that will not be reclassified to profit or loss Actuarial (loss) gain on superannuation defined benefit plans 25 (3.3) 24.1 Income tax benefit (expense) relating to these items 11 1.0 (7.3) Other comprehensive income (expense) – net of tax 26.8 (31.8) Total comprehensive income 233.4 173.3 Total comprehensive income attributable to: Non-controlling interests 24.7 13.6 Shareholders of CSR Limited 208.7 159.7 Total comprehensive income 233.4 173.3 The above statement of comprehensive income should be read in conjunction with the accompanying notes. 4 CSR LIMITED | FINANCIAL REPORT Statement of financial position $million Note 2018 2017 Current assets Cash and cash equivalents 31 13.7 19.1 Receivables 9 295.7 312.5 Inventories 9 467.0 385.7 Other financial assets 18 11.4 5.9 Income tax receivable 7.0 0.5 Prepayments and other current assets 10.5 13.1 Total current assets 805.3 736.8 Non-current assets Receivables 29 76.5 23.4 Inventories 9 57.7 81.6 Investments accounted for using the equity method 23 43.6 39.9 Other financial assets 18 13.4 2.9 Property, plant and equipment 10 834.0 848.2 Goodwill 10 98.1 97.1 Other intangible assets 10 45.8 46.7 Deferred income tax assets 11 151.8 201.2 Other non-current assets 29 11.7 19.3 Total non-current assets 1,332.6 1,360.3 Total assets 2,137.9 2,097.1 Current liabilities Payables 9 305.2 287.3 Other financial liabilities 18 19.0 29.9 Tax payable 5.0 10.3 Provisions 12 177.0 186.1 Total current liabilities 506.2 513.6 Non-current liabilities Payables 3.7 3.7 Borrowings 14 28.0 30.5 Other financial liabilities 18 10.1 22.9 Provisions 12 308.4 319.8 Deferred income tax liabilities 11 7.4 – Other non-current liabilities 25 –0.1 Total non-current liabilities 357.6 377.0 Total liabilities 863.8 890.6 Net assets 1,274.1 1,206.5 Equity Issued capital 15 1,036.2 1,036.8 Reserves 17 (53.2) (73.4) Retained profits 244.4 191.6 Equity attributable to shareholders of CSR Limited 1,227.4 1,155.0 Non-controlling interests 21 46.7 51.5 Total equity 1,274.1 1,206.5 The above statement of financial position should be read in conjunction with the accompanying notes. 5 CSR LIMITED | FINANCIAL REPORT Statement of changes in equity CSR Non- Issued Retained Limited controlling Total $million Note capital Reserves profits interest interests equity Balance at 1 April 2017 1,036.8 (73.4) 191.6 1,155.0 51.5 1,206.5 Profit for the year – – 188.8 188.8 17.8 206.6 Total other comprehensive income – 22.2 (2.3) 19.9 6.9 26.8 (expense) – net of tax Dividends paid 16 – – (133.7) (133.7) (29.5) (163.2) On-market share buy-back 15 (0.6)– – (0.6) – (0.6) Acquisition of treasury shares 17 – (5.8) – (5.8) – (5.8) Acquisition of non-controlling interest 8, 17 – (2.5) – (2.5) – (2.5) Share-based payments – inclusive of tax 17 – 6.3 – 6.3 – 6.3 Balance at 31 March 2018 1,036.2 (53.2) 244.4 1,227.4 46.7 1,274.1 Balance at 1 April 2016 1,041.1 20.4 123.2 1,184.7 132.5 1,317.2 Profit for the year – – 177.9 177.9 27.2 205.1 Total other comprehensive (expense) – (35.0) 16.8 (18.2) (13.6) (31.8) income – net of tax Dividends paid 16 – – (126.3) (126.3) (20.4) (146.7) On-market share buy-back 15 (4.3)– – (4.3) – (4.3) Acquisition of treasury shares 17 – (5.4) – (5.4) – (5.4) Acquisition of non-controlling interest 8 – (57.1) – (57.1) (74.2) (131.3) Share-based payments – inclusive of tax 17 – 3.7 – 3.7 – 3.7 Balance at 31 March 2017 1,036.8 (73.4) 191.6 1,155.0 51.5 1,206.5 The above statement of changes in equity should be read in conjunction with the accompanying notes.