HUTCHISON TELECOMMUNICATIONS (AUSTRALIA) 2001-08-07 ASX-SIGNAL-G HOMEX - Sydney +++++++++++++++++++++++++ APPENDIX 4B (Rule 4.13(a)) HALF YEARLY REPORT Name of entity Hutchison Telecommunications (Australia) Limited ACN, ARBN, ABN or ARSN Half Preliminary Half Year ended yearly final ('current period') (tick) (tick) 003 677 227 X 30/06/2001 EQUITY ACCOUNTED RESULTS FOR ANNOUNCEMENT TO THE MARKET AUD000 Sales (or equivalent operating) revenue (item 1.1) up 10% to 212,492 Abnormal items after tax attributable to members (item 2.5) gain/loss of - Operating profit (loss) after tax (before amortisation of goodwill) attributable to members (item 1.26) down 309% to (91,096) Operating profit (loss) after tax attributable to members (item 1.10) down 309% to (91,096) Extraordinary items after tax attributable to members (item 1.13) gain/loss of Operating profit (loss) and extraordinary items after tax attributable to members (item 1.16) down 309% to (91,096) Dividends (distributions) Amount per Franked amount security per security at 36% tax Final dividend(Preliminary final report only - item 15.4); Interim Dividend(Half yearly report only - item 15.6) Nil c Nil c Previous corresponding period (Preliminary final report - item 15.5; half yearly report - item 15.7) Nil c Nil c Record date for determining entitlements to the dividend, (in the case of a trust, distribution) (see item 15.2) N/A Brief explanation of omission of directional and percentage changes to profit in accordance with Note 1 and short details of any bonus or cash issue or other item(s) of importance not previously released to the market: N/A MORE TO FOLLOW HUTCHISON TELECOMMUNICATIONS (AUSTRALIA) 2001-08-07 ASX-SIGNAL-G HOMEX - Sydney +++++++++++++++++++++++++ REVIEW OF OPERATIONS The first half of 2001 has been marked by many changes in the telecommunications industry. Market conditions during the period were difficult and the Company's business growth has been modest, with total subscribers increasing by 8.4% and revenue increasing by 2% since 31 December 2000. However, the Company is on track to succeed in implementing its plans as a major provider of mobile services in Australia. Building new networks and growing market share requires major investment and, as advised at the Annual General Meeting earlier this year, trading losses will continue to be incurred as a sustainable business is being built. The after tax operating loss for this first half is $91.1 million, less than the previously announced estimate of around $100 million. The full year result is anticipated to be consistent with the year-to-date performance. The Company continues to have the substantial support of its major shareholder, Hutchison Whampoa Limited. The key activities of the Company for the period have been continued focus on the development and growth of the Orange Mobile business, the expansion of its 3G activities and the arrangements for the establishment of its 3G joint venture with Telecom Corporation of New Zealand Limited (TCNZ). In the Orange Mobile business, efforts were directed at enhancing the value proposition of the Orange services, improving network coverage, bringing in key skills across the business, improving cost efficiencies and strengthening the sales and distribution activities. Further enhancements have been made to the Orange CDMA Network resulting in final acceptance of the network from Samsung Electronics Co, Ltd in July 2001. Several key initiatives implemented during the first half of 2001 to support the building of the Company's new 3G business include: * In March, the Company purchased spectrum in the 2.1 GHz band for $196.1 million, a very competitive price, enabling better returns to be generated from the Company's overall spectrum investments. The additional spectrum complements existing spectrum holdings and provides flexibility without the need to acquire or build additional infrastructure. * In May, details of a strategic alliance between Hutchsion Whampoa, the Company and TCNZ were announced. The alliance, which provides for TCNZ to take a 19.9% stake in the Company's 3G operations, aims to take a significant share of the Australian mobile market through early launch of third generation "wirefree" communication services. * In June, the Company signed a contract with Ericsson Australia Pty Ltd, for the supply and installation of a UMTS 3G network in the Sydney, Melbourne, Brisbane, Adelaide and Perth licence areas. The network will be rolled out for a staged commercial launch end 2002 /early 2003, and the contract price is A$830 million, to be paid over four years. * Site acquisition for the 3G network commenced at the end of 2000, and has continued throughout the period. By 30 June, most of the network sites required for launch of the 3G business had been identified and over 30% had been leased. KEY STATISTICS FOR HUTCHISON'S BUSINESS AT 30 JUNE 2001 AS AT AS AT AS AT CHANGE JUNE 30 DEC 31 JUNE 30 OVER LAST 2000 2000 2001 6 MONTHS SUBSCRIBER NUMBERS % Mobile Resale (GSM & CDMA) 285,276 293,925 279,328 -5 Orange One - now Orange Mobile 11,682 74,703 129,523 73 Paging and Messaging 83,247 79,352 73,818 -7 Value Added Services (Long Distance & Internet) 24,015 22,536 27,296 21 Total Subscribers 404,220 470,516 509,965 8 FINANCIAL DATA 1H 2000 2H 2000 1H2001 % $ MILLION CHANGE Orange One - now Orange Mobile* - 16.0 1.3 158 Mobile Resale Revenue 166.5 167.2 149.5 -11 Paging and Messaging 19.3 18.6 17.0 -9 Other Revenue (incl Long 9.6 7.5 4.7 -37 Distance/Internet) Total Revenue 195.4 209.3 212.5 2 Operating Expenses -214.5 -275.4 -290.0 -5 EBITDA -22.1 -63.1 -77.5 -23 EBIT -25.3 -73.6 -89.9 -22 NPAT -22.3 -70.2 -91.1 -30 Abnormal Items nil nil nil n/a NPAT & Abnormal Items -22.3 -70.2 -91.1 -30 * Previously incorporated in Other Revenue OPERATING RESULTS During the first half of this year total subscriber numbers including Orange Mobile, GSM Resale and Paging grew by 8.4% to 509,965. Total revenue for the half was $212.5 million, up 2% since the prior reporting period. EBITDA fell to a loss of $77.5 million, reflecting the increase in subscriber acquisition costs and operating expenses necessitated by the current stage of growth. Net Profit After Tax recorded a loss of $91.1 million, compared to a loss of $22.3 million for the prior comparable period. Mobile Resale contributed around 70% of the total revenue received during the period, declining by 11% from the prior comparable period to $149.5 million. Orange Mobile services contributed 19% of the total revenue. MORE TO FOLLOW HUTCHISON TELECOMMUNICATIONS (AUSTRALIA) 2001-08-07 ASX-SIGNAL-G HOMEX - Sydney +++++++++++++++++++++++++ ORANGE MOBILE PRODUCTS At June 30 total subsciribers on the Orange network were 129,523, a 73% increase from December 31, 2000. Sales of the Orange prepaid product commenced in April 2001 and as at 30 June, prepaid subscribers totalled 6,586. Although there has been general industry-wide pressure on customer revenues, the post paid Orange Mobile average revenue per user was $67 per month for the first half. Subscriber acquisition costs rose during the period due to higher handset prices, in line with the weaker A$, and upward pressure on dealer commissions. The service was launched in July 2000, and following almost 12 months of commercial activity, a new marketing campaign commenced at the end of the period, focussing on mobile rather than location based usage and promoting competitive mobile plans designed to meet different spending and usage patterns. The range of CDMA handsets offered to customers continues to improve. The distribution strategy for the first year of operation has focussed on door to door sales and the dealer channel. Going forward, a more direct distribution model, aimed at improving market presence and cost structure, will be adopted. Significant improvements have been made in customer service costs in all branches and call centres. Contacts per subscriber for the Orange mobile network were reduced by 30% over the last six months. The Customer Care Centre has maintained high standards of service and a back up Call Centre was established to support the main facility in Brisbane. In the Commercial Operations area, a number of new provisioning, verification and delivery processes were implemented in line with the Company's growing experience with the Orange mobile products. An aggressive approach has been adopted to continually improving network quality & performance. MOBILE RESALE Consistent with the focus on acquiring and retaining subscribers that deliver acceptable profitability, mobile resale subscriber numbers declined by 5% over the first half of the year to 279,328 at 30 June, 2001. None of these subscribers are prepaid customers. Average revenue per user for this period remained strong at $78 per month. Subscriber acquisition costs rose during the period due to upward pressure on dealer commissions and handset subsidies. This area of business continues to contribute significantly to total revenue, providing approximately 70% of revenue in the period. OTHER PRODUCTS In line with expectations, during the six month period subscriber numbers for Paging and Messaging products fell by 7% to 73,818, and subscribers to the value added services of long distance telephony resale and Internet increased by 21% to reach 27,296. OPERATING EXPENDITURE AND COST OF SALES Network cost of sales, as a percentage of revenue, remained steady at 60%, compared to the previous six month period but subscriber acquisition costs, which include commissions and handset subsidies increased as a percentage of revenue. Other operating expenditure rose from 45% of revenue to 49%, driven largely by increases in advertising and promotion costs. These increases have been offset by improvements in bad debt levels. CAPITAL EXPENDITURE Total capital expenditure for the period was $341.1 million. Capital expenditure on the Orange mobile business during the period was $90.9 million, which included progress payments to Samsung for the CDMA network totalling $76 million. To 30 June 2001, capital expenditure associated with the Orange network totalled $270.8 million covering spectrum licences, payments to Samsung for the network, other network assets and capitalised development costs. Capital expenditure on the 3G network during the period totalled $250.2 million consisting of $196.1 million for the 2.1GHz spectrum licences, $13.3 million for site acquisition costs, $16.4 million of capitalised development costs and the balance for other operating assets, hardware and software specific to the 3G business. As at June 30, the Company had undrawn financing facilities of $168 million and a working capital facility of $20 million. Subsequent to balance date, a further progress payment of $58 million was made to Samsung and a deposit of $4.9 million has been paid to Ericsson under the 3G network contract. Intercompany loans amounted to $196 million. Options to refinance the Company's debt facilities and generate increased funding capacity prior to year end are under review. MORE TO FOLLOW HUTCHISON TELECOMMUNICATIONS (AUSTRALIA) 2001-08-07 ASX-SIGNAL-G HOMEX - Sydney +++++++++++++++++++++++++ REVIEW OF OPERATIONS CONTINUED Funding for the 3G business is underpinned by the cash equity of $1 billion to be provided through the alliance with TCNZ. In addition to the $250 million to be subscribed by TCNZ for a 19.9% stake in Hutchison 3G, TCNZ has committed to provide a further $150 million and the Company, with the support of Hutchison Whampoa Limited, will provide $600 million. Project financing from the Company's bankers will be put in place in due course and both Ericsson and Motorola have indicated they will assist in this syndicated funding process. Acquisition of the systems and applications to support the range of data services to be offered by the 3G business is continuing in close co-operation with the other 3G operations within the Hutchison Group worldwide. Key global contracts for the supply of 3G handsets and terminals have been announced by Hutchison Whampoa and global arrangements for the supply of systems, platforms and content will be put in place over the next year. These arrangements provide not only cost efficiencies but also access to products which would not otherwise be available to the Company. Use of the Hutchison global 3G brand will also support the 3G business in Australia. OUTLOOK Going forward, the key impacts on the business will be the 3G project and continued expansion of the Orange mobile business plan, whilst ensuring an appropriate cost base for the business is maintained. A key change to the telecommunications industry in Australia which will impact on the business is mobile number portability, which is to commence on 25 September 2001. Marketing and operational strategies are in place to take advantage of the opportunities which this innovation will present. Other potential changes which may also impact the business include: * Growth in lower usage and prepaid mobile customers; * Continued pressure on tariffs; * Domestic industry rationalisation; * Establishment of advanced data networks at higher speeds than currently available. The company will continue to expedite the 3G project in line with Hutchison Whampoa Limited's international focus on 3G technologies and will seek to exploit regional synergies available from its alliance with TCNZ. The Company is committed to being successful in delivering mobile communications services. The Orange mobile network will continue to offer high quality voice services at competitive prices and from the end of 2002 early 2003, the Company will provide innovative 3G services. The Company will continue to benefit from its relationship with Hutchison Whampoa Limited, which provides access to leading edge technology, content and applications and financial support. DIRECTORS The following persons were directors of Hutchison Telecommunications (Australia) Limited during the whole of the half year and up to the date of this report: Canning F N Fok Ting Y Chan Barry Roberts-Thomson Justin H Gardener Frank J Sixt Holger Kluge Khoo Chalk Ngee was a director from the beginning of the period until his resignation on 4 May 2001 and Dennis Pok-Man Lui was appointed as a director on 4 May 2001. ROUNDING OF AMOUNTS TO NEAREST THOUSAND DOLLARS The company is of a kind referred to in Class Order 98/0100 issued by the Australian Securities and Investments Commission, relating to the "rounding off" of amounts in the directors' report and financial report. Amounts in the directors' report and financial report have been rounded off to the nearest thousand dollars in accordance with that Class Order. This report is made in accordance with a resolution of the directors. B Roberts-Thomson DIRECTOR HUTCHISON TELECOMMUNICATIONS (AUSTRALIA) 2001-08-07 ASX-SIGNAL-G HOMEX - Sydney +++++++++++++++++++++++++ CONSOLIDATED PROFIT AND LOSS ACCOUNT (Equity Accounted) CURRENT PREVIOUS PERIOD CORRESPONDING PERIOD AUD000 AUD000 1.1 Sales (or equivalent operating) revenue 212,492 192,369 1.2 Share of associates "net profit(loss) attributable to members" (equal to item 16.7) - - 1.3 Other revenue 1,071 3,008 1.4 Operating profit (loss) before abnormal items and tax (91,096) (22,275) 1.5 Abnormal items before tax (detail in item 2.4) - - 1.6 Operating profit (loss) before tax (items 1.4 + 1.5) (91,096) (22,275) 1.7 Less tax - - 1.8 Operating profit (loss) after tax but before outside equity interests (91,096) (22,275) 1.9 Less outside equity interests - - 1.10 Operating profit (loss) after tax attributable to members (91,096) (22,275) 1.11 Extraordinary items after tax (detail in item 2.6) - - 1.12 Less outside equity interests - - 1.13 Extraordinary items after tax attributable to members - - 1.14 Total operating profit (loss) and extraordinary items after tax (items 1.8 + 1.11) (91,096) (22,275) 1.15 Operating profit (loss) and extraordinary items after tax attributable to outside equity interests (items 1.9 + 1.12) - - 1.16 Operating profit (loss) and extraordinary items after tax attributable to members (items 1.10 + 1.13) (91,096) (22,275) 1.17 Retained profits (accumulated losses) at beginning of financial period (129,977) (37,478) 1.18 If change in accounting policy as set out in clause 11 of AASB 1018 Profit and Loss Accounts, adjustments as required by that clause (include brief description) - - 1.19 Aggregate of amounts transferred from reserves - - 1.20 Total available for appropriation (221,073) (59,753) 1.21 Dividends provided for or paid - - 1.22 Aggregate of amounts transferred to reserves - - 1.23 Retained profits (accumulated losses) at end of financial period (221,073) (59,753) PROFIT RESTATED TO EXCLUDE Current Previous AMORTISATION OF GOODWILL Period Corresponding Period AUD000 AUD000 1.24 Operating profit(loss) after tax before outside equity interests (items 1.8) and amortisation of goodwill (91,096) (22,275) 1.25 Less (plus) outside equity interests - - 1.26 Operating profit(loss) after tax (before amortisation of goodwill) attributable to members (91,096) (22,275) INTANGIBLE, ABNORMAL AND EXTRAORDINARY ITEMS Consolidated - current period Before Related Related Amount tax tax outside (after equity tax) interests attributable to members AUD000 AUD000 AUD000 AUD000 2.1 Amortisation of goodwill - - - - 2.2 Amortisation of other intangibles 4,978 - - - 2.3 Total amortisation of intangibles 4,978 - - - 2.4 Abnormal items - - - - 2.5 Total abnormal items - - - - 2.6 Extraordinary items - - - - 2.7 Total extraordinary items - - - - COMPARISON OF HALF YEAR PROFITS Current Previous (Preliminary final statement only) year year AUD000 AUD000 3.1 Consolidated operating profit (loss) after tax attributable to members reported for the 1st half year (item 1.10 in the half yearly report) N/A N/A 3.2 Consolidated operating profit (loss) after tax attributable to members for the 2nd half year N/A N/A CONSOLIDATED BALANCE SHEET (See note 5) At end of As in last As in last current annual half yearly period report report AUD000 AUD000 AUD000 CURRENT ASSETS 4.1 Cash 30,279 48,307 811,226 4.2 Receivables 69,077 67,934 55,503 4.3 Investments - - - 4.4 Inventories 10,133 10,210 2,755 4.5 Other (provide details if material) Network progress payment 96,035 19,842 19,842 Prepayments & other 13,249 5,931 7,676 4.6 Total current assets 218,773 152,224 897,002 NON-CURRENT ASSETS 4.7 Receivables - - - 4.8 Investments in associates - - - 4.9 Other investments - - - 4.10 Inventories - - - 4.11 Exploration and evaluation expenditure capitalised - - - 4.12 Development properties (mining entities) - - - 4.13 Other property, plant and equipment (net) 106,898 61,804 37,823 4.14 Intangibles (net) 1,017,903 806,713 808,564 4.15 Other (provide details if material) - - - 4.16 Total non-current assets 1,124,801 868,517 846,387 4.17 Total assets 1,343,574 1,020,741 1,743,389 CURRENT LIABILITIES 4.18 Accounts payable 91,008 89,039 88,031 4.19 Borrowings 427,740 15,235 670,000 4.20 Provisions 5,677 5,005 4,013 4.21 Other (provide details if material) Deposits 17 15 30 Unearned income 7,756 9,298 9,686 4.22 Total current liabilities 532,198 118,592 771,759 NON-CURRENT LIABILITIES 4.23 Accounts payable - - - 4.24 Borrowings - - - 4.25 Provisions 1,205 882 741 4.26 Other (provide details if material) - - - 4.27 Total non-current liabilities 1,205 882 741 4.28 Total liabilities 533,403 119,474 772,500 4.29 Net assets 810,171 901,267 970,889 EQUITY 4.30 Capital 1,031,244 1,031,244 1,030,642 4.31 Reserves - - - 4.32 Retained profits (accumulated losses) (221,073) (129,977) (59,753) 4.33 Equity attributable to members of the parent entity 810,171 901,267 970,889 4.34 Outside equity interests in controlled entities - - - 4.35 Total equity 810,171 901,267 970,889 4.36 Preference capital included as part of 4.33 - - - EXPLORATION AND EVALUATION EXPENDITURE CAPITALISED To be completed only by entities with mining interests if amounts are material. Include all expenditure incurred regardless of whether written off directly against profit. Current Previous period corresponding period AUD000 AUD000 5.1 Opening balance - - 5.2 Expenditure incurred during current period - - 5.3 Expenditure written off during current period - - 5.4 Acquisitions, disposals, revaluation increments, etc. - - 5.5 Expenditure transferred to Development Properties - - 5.6 Closing balance as shown in the consolidated balance sheet (item 4.11) - - DEVELOPMENT PROPERTIES (To be completed only by entities with mining interests if amounts are material) Current Previous period corresponding period AUD000 AUD000 6.1 Opening balance - - 6.2 Expenditure incurred during current period - - 6.3 Expenditure transferred from exploration and evaluation - - 6.4 Expenditure written off during current period - - 6.5 Acquisitions, disposals, revaluation increments, etc. - - 6.6 Expenditure transferred to mine properties - - 6.7 Closing balance as shown in the consolidated balance sheet (item 4.12) - - CONSOLIDATED STATEMENT OF CASH FLOWS (See note 6) Current Previous period corresponding period AUD000 AUD000 CASH FLOWS RELATED TO OPERATING ACTIVITIES 7.1 Receipts from customers 217,306 185,329 7.2 Payments to suppliers and employees (302,717) (180,565) 7.3 Dividends received from associates 13 7 7.4 Other dividends received - - 7.5 Interest and other items of similar nature received 544 3,001 7.6 Interest and other costs of finance paid (4,564) - 7.7 Income taxes paid - - 7.8 Other (provide details if material) - - 7.9 Net operating cash flows (89,418) 7,772 CASH FLOWS RELATED TO INVESTING ACTIVITIES 7.10 Payment for purchases of property, plant and equipment (52,575) (7,440) 7.11 Proceeds from sale of property, plant and equipment - - 7.12 Payment for purchases of equity investments - - 7.13 Proceeds from sale of equity investments - - 7.14 Loans to other entities - - 7.15 Loans repaid by other entities - - 7.16 Other (provide details if material) Intangibles (212,571) (692,257) Network progress payment (75,979) - 7.17 Net investing cash flows (341,125) (699,697) CASH FLOWS RELATED TO FINANCING ACTIVITIES 7.18 Proceeds from issues of securities (shares, options, etc.) - 693,049 7.19 Proceeds from borrowings 427,740 670,000 7.20 Repayment of borrowings - - 7.21 Dividends paid - - 7.22 Other (provide details if material) - - 7.23 Net financing cash flows 427,740 1,363,049 7.24 NET INCREASE (DECREASE) IN CASH HELD (2,793) 671,124 7.25 Cash at beginning of period (see Reconciliation of cash) 33,072 140,102 7.26 Exchange rate adjustments to item 7.25. - - 7.27 Cash at end of period (see Reconciliation of cash) 30,279 811,226 NON-CASH FINANCING AND INVESTING ACTIVITIES Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows are as follows. If an amount is quantified, show comparative amount. - RECONCILIATION OF CASH Reconciliation of cash at the end of Current Previous the period (as shown in the consolidated period corresponding statement of cash flows) to the related period items in the accounts is as follows. AUD000 AUD000 8.1 Cash on hand and at bank 30,279 710,925 8.2 Deposits at call - - 8.3 Bank overdraft - - 8.4 Other (provide details) - 100,301 8.5 Total cash at end of period (item 7.26) 30,279 811,226 RATIOS Current Previous period corresponding period PROFIT BEFORE ABNORMALS AND TAX/SALES 9.1 Consolidated operating profit (loss) before abnormal items and tax (item 1.4) as a percentage of sales revenue (item 1.1) (42.9) % (11.6) % PROFIT AFTER TAX / EQUITY INTERESTS 9.2 Consolidated operating profit (loss) after tax attributable to members (item 1.10) as a percentage of equity (similarly attributable) at the end of the period (item 4.33) (11.2) % (2.3) % EARNINGS PER SECURITY (EPS) 10.1 Calculation of basic, the following in accordance with "AASB 1027: Earnings per Share" (a) Basic EPS (13.4) c (4.7) c (b) Diluted EPS (if materially N/A c N/A c different from (a)) (c) Weighted average number of ordinary shares outstanding during the period used in the calculation of the Basic EPS 678,625,424 476,118,524 NTA BACKING Current Previous (see note 7) period corresponding period 11.1 Net tangible asset backing per ordinary security (31) c 24 c MORE TO FOLLOW HUTCHISON TELECOMMUNICATIONS (AUSTRALIA) 2001-08-07 ASX-SIGNAL-G HOMEX - Sydney +++++++++++++++++++++++++ DETAILS OF SPECIFIC RECEIPTS/OUTLAYS, REVENUES/EXPENSES (Equity Accounted) Current Previous period corresponding period AUD000 AUD000 12.1 Interest revenue included in determining item 1.4 544 3,001 12.2 Interest revenue included in item 12.1 but not yet received (if material) - - 12.3 Interest expense included in item 1.4 (include all forms of interest, lease finance charges, etc.) 2,243 - 12.4 Interest costs excluded from item 12.3 and capitalised in asset values (if material) 3,595 8,645 12.5 Outlays (except those arising from the acquisition of an existing business) capitalised in intangibles (if material) 212,571 695,997 12.6 Depreciation and amortisation (excluding amortisation of intangibles) 7,481 2,313 CONTROL GAINED OVER ENTITIES HAVING MATERIAL EFFECT (See note 8) 13.1 Name of entity (or group of entities) N/A 13.2 Consolidated operating profit (loss) and extraordinary items after tax of the entity (or group of entities) since the date in the current period on which control was acquired $ - 13.3 Date from which such profit has been calculated - 13.4 Operating profit (loss) and extraordinary items after tax of the entity (or group of entities) for the whole of the previous corresponding period $ - LOSS OF CONTROL OF ENTITIES HAVING MATERIAL EFFECT (See note 8) 14.1 Name of entity (or group of entities) N/A 14.2 Consolidated operating profit (loss) and extraordinary items after tax of the entity (or group of entities) for the current period to the date of loss of control $ - 14.3 Date to which the profit (loss) in item 14.2 has been calculated - 14.4 Consolidated operating profit (loss) and extraordinary items after tax of the entity (or group of entities) while controlled during the whole of the previous corresponding period $ - 14.5 Contribution to consolidated operating profit (loss) and extraordinary items from sale of interest leading to loss of control $ - REPORTS FOR INDUSTRY AND GEOGRAPHICAL SEGMENTS Information on the industry and geographical segments of the entity must be reported for the current period in accordance with AASB 1005: Financial Reporting by Segments. Because of the different structures employed by entities, a pro forma is not provided. Segment information should be completed separately and attached to this statement. However, the following is the presentation adopted in the Appendices to AASB 1005 and indicates which amounts should agree with items included elsewhere in this statement. - SEGMENTS Operating Revenue Sales to customers outside the economic entity Inter-segment sales Unallocated revenue Total revenue Segment result (including abnormal items where relevant) Unallocated expenses Consolidated operating profit before tax (equal to item 1.6) Segment assets )Comparative data for segment Unallocated assets )assets should be as at the end of Total assets (equal to item 4.17) )the previous corresponding period. DIVIDENDS (in the case of a trust, distributions) 15.1 Date the dividend (distribution) is payable N/A 15.2 Record date to determine entitlements to the dividend (distribution) (ie, on the basis of registrable transfers received up to 5.00pm if securities are not CHESS approved, or security holding balances established by 5.00pm or such later time permitted by SCH Business Rules if securities are CHESS approved) N/A 15.3 If it is a final dividend, has it been declared (Preliminary final statement only) N/A AMOUNT PER SECURITY Amount per Franked Amount Amount per security per security security at 36% tax of foreign source dividend (Preliminary final report only) 15.4 Final dividend: Current year -c -c -c 15.5 Previous year -c -c -c (Half yearly and preliminary final statements) 15.6 Interim dividend: Current year -c -c -c 15.7 Previous year -c -c -c TOTAL ANNUAL DIVIDEND (DISTRIBUTION) PER SECURITY (Preliminary final statement only) Current Previous year year 15.8 Ordinary securities - c - c 15.9 Preference securities - c - c TOTAL DIVIDEND (DISTRIBUTION) Current Previous period corresponding AUD000 period AUD000 15.10 Ordinary securities - - 15.11 Preference securities - - 15.12 Total 0 0 The dividend or distribution plans shown below are in operation. N/A The last date(s) for receipt of election notices for the dividend or distribution plans - Any other disclosures in relation to dividends (distributions) N/A DETAILS OF AGGREGATE SHARE OF PROFITS (LOSSES) OF ASSOCIATES Current Previous Entity's share of associate's period corresponding AUD000 period AUD000 16.1 Operating profit(loss) before income tax - - 16.2 Income tax expense - - 16.3 Operating profit(loss) after income tax - - 16.4 Extraordinary items net of tax - - 16.5 Net profit(loss) 0 0 16.6 Outside equity interests - - 16.7 Net profit(loss) attributable to members 0 0 MATERIAL INTERESTS IN ENTITIES WHICH ARE NOT CONTROLLED ENTITIES The economic entity has an interest (that is material to it) in the following entities. Name of entity Percentage of ownership Contribution to operating interest held at end profit (loss) and of period or date of extraordinary items disposal after tax 17.1 Equity accounted Current Previous Current Previous associated period corresponding period corresponding entities period AUD000 period AUD000 - - - - - 17.2 Total - - 0 0 17.3 Other material interests - - - - - 17.4 Total - - 0 0 ISSUED AND QUOTED SECURITIES AT END OF CURRENT PERIOD Description includes rate of interest and any redemption or conversion rights together with prices and dates. Category of Total Number Issue Amount securities Number quoted Price Paid-up per per Security Security (See note 15) (cents) (cents) 18.1 Preference securities (description) - - - - 18.2 Changes during current period (a) increases through issues - - - - (b) decreases through returns of capital buybacks, redemptions - - - - 18.3 Ordinary securities 678,625,429 - - - 18.4 Changes during current period (a) increases through issues - - - - (b) decreases through returns of capital buybacks - - - - (c) Increase through employee options exercised 150 - 184 184 18.5 Convertible debt securities (description and conversion factor) - - - - 18.6 Changes during current period (a) increases through issues - - - - (b) decreases through securities matured, converted - - - - 18.7 Options (description Exercise Expiry and conversion factor) price date (cents) - - - - 18.8 Issued during current period 165,000 - 250 23/01/2006 18.9 Exercised during current period 150 - 184 15/08/2002 18.10 Expired during current period 379,000 - - - 18.11 Debentures (totals only) - - 18.12 Unsecured notes (totals only) - - COMMENTS BY DIRECTORS Comments on the following matters are required by ASX or, in relation to the half yearly statement, by AASB 1029: Half-Year Accounts and Consolidated Accounts. The comments do not take the place of the directors' report and statement (as required by the Corporations Law) and may be incorporated into the directors' report and statement. For both half yearly and preliminary final reports, if there are no comments in a section, state NIL. If there is insufficient space to comment, attach notes to this report. BASIS OF ACCOUNTS PREPARATION If this report is a half yearly report, it is a general purpose financial report prepared in accordance with the listing rules and AASB 1029: Half-Year Accounts and Consolidated Accounts. It should be read in conjunction with the last annual report and any announcements to the market made by the entity during the period. [Delete if inapplicable.] Material factors affecting the revenues and expenses of the economic entity for the current period Nil A description of each event since the end of the current period which has had a material effect and is not related to matters already reported, with financial effect quantified (if possible) Nil Franking credits available (amount): $ Nil Prospects for paying fully or partly franked dividends for at least the next year Nil Changes in accounting policies since the last annual report are disclosed as follows. Nil ADDITIONAL DISCLOSURE FOR TRUSTS 19.1 Number of units held by the management company or responsible entity or their related parties. - 19.2 A statement of the fees and commissions payable to the management company or responsible entity. - Identify: initial service charges - management fees - other fees - ANNUAL MEETING (Preliminary final statement only) The annual meeting will be held as follows: Place - Date - Time - Approximate date the annual report will be available - COMPLIANCE STATEMENT 1 This report has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 13). Identify other standards used - 2 This report, and the accounts upon which the report is based (if separate), use the same accounting policies. 3 This report does give a true and fair view of the matters disclosed (see note 2). 4 This report is based on accounts to which one of the following applies. (Tick one) The accounts X The accounts have been have been audited. subject to review. The accounts The accounts are in the have not yet process of being been audited audited or or reviewed. subject to review. 5 If the audit report or review by the auditor is not attached, details of any qualifications are attached/will follow immediately they are available. (Half yearly report only - the audit report or review by the auditor must be attached to this report if the report is to satisfy the requirements of the Corporations Law.) 6 The entity has a formally constituted audit committee. B Roberts-Thomson DIRECTOR 07/08/2001