annual report 2011

IOOF | annual report 2011
Chairman’s statement
Ian Blair
IOOF reported another
impressive result
I am pleased to report that IOOF reported
another impressive statutory Net Profit after
Tax of $99.5 million and an Underlying Net
Profit after Tax and pre-amortisation result
of $111.5 million.
Our business simplification strategy is
paying dividends.
Despite the difficult global market
conditions, the money IOOF manages on
behalf of its clients increased 7 per cent for
the year to $106.2 billion.
Corporate governance and
Regulatory changes
Our industry continues to be the subject of
regulatory change following a number of
reviews in prior years. In their current format,
the recommendations should not impact
IOOF in a meaningful way. In fact, in some
instances there will be no change for IOOF
as some of the processes recommended
have been standard practice for quite
some time.
As Directors, we continue to take the view
that governance is not just a matter for the
Board, but for the organisation as a whole,
and risk control is very much part of the
culture at IOOF.
Final dividend of 22 cents
per share paid in October
During the year, the Directors were pleased
to declare an interim dividend of 21 cents
which was paid on 23 March 2011 and a
final dividend of 22 cents with a payment
date of 20 October 2011. This takes the total
dividend paid to shareholders, to 43 cents
per share for the year under review.
These dividends are at the top end of our
stated dividend policy of 60-90 per cent of
Underlying Net Profit After Tax.
The IOOF Foundation
On page 19 of the annual report we
feature the IOOF Foundation who assist
Disadvantaged Families, Aged Care groups
and Disadvantaged Youth. These have
been the areas of community interest to
IOOF since it was established as a Friendly
Society in 1846. We are all very proud of
the Foundation, and thank the directors
Ken Barry, Ron Bunton, Angelika Dischen,
Elizabeth Alexander and Susan Heron who
freely give their time to this wonderful
organisation.
Directors
There have been a couple of important
changes in the makeup of the board since
I last reported to you.
Retirement of Jim Pfeiffer
At the end of the financial year, and after
six years of service to IOOF, Jim Pfeiffer
decided to retire from the Board. Jim has
been a member of the IOOF Board since
October 2005. During this time, Jim has held
positions on the Risk and Compliance and
Audit Committees of the IOOF Holdings
Board and a number of its subsidiary
companies.
On behalf of the board, I would like to
thank Jim for the significant and important
contribution he has made to the growth
and development of IOOF throughout his
tenure with the group and wish him well in
his retirement and community activities.
Appointment of Kevin White
We recently announced that Kevin White
has accepted our invitation to join the
board. Until recently, Kevin has been CEO
of WHK Group Ltd. He retired on 30 June
after 15 years in that role. Kevin will bring his
considerable skills to the board along with
his deep experience in the Financial Advice
and Planning industry.
I would like to take this opportunity to
personally thank my fellow directors
for their service this year. In difficult
market conditions there is a heightened
responsibility placed on directors, especially
in a company where we are the custodian
of so many people’s money.
I also wish to thank the Managing Director,
Leadership Group and our employees for
their continuing hard work – something
that is evident from the strong result
achieved this financial year.
Much of the past few years have been spent
consolidating and simplifying our business
in preparation for future growth. Despite
the volatility in global markets, I remain
optimistic about the future prosperity
for IOOF.
Ian Blair
Chairman
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