AWB Limited - 2004 Annual Report

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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2004 28. EXPENDITURE COMMITMENTS Consolidated AWB Limited 2004 2003 2004 2003 Notes $'000 $'000 $'000 $'000 At 30 September, the consolidated entity had contracted for but not provided in the financial report: (i) Grain sales Contracts for the sale of grain not later than one year but subject to variation of +/–10% outturn tolerance 202,467 50,045 – – Contracts for the sale of grain later than one year but not later than five years but subject to variation of +/–10% outturn tolerance 764 – – – (ii) Grain purchases Contracts for the purchase of grain not later than one year subject to variation for quality characteristics 132,445 47,593 – – Contracts for the purchase of grain later than one year but not later than five years subject to variation for quality characteristics 7,467 – – – (iii) Freight sales Contracts for the sale of freight not later than one year 81,054 – – – (iv) Freight purchases Contracts for the purchase of freight not later than one year 79,813 – – – (a) Capital expenditure commitments Estimated capital expenditure contracted for at balance date but not provided for: – payable not later than one year – joint venture operations 3,899 3,514 – 3,514 – other 4,767 17,101 – – – payable later than one year but not later than five years – joint venture operations 8,325 9,283 – 9,283 – other – – – 16,991 29,898 – 12,797 (b) Lease expenditure commitments Operating leases (non–cancellable) – payable not later than one year 6,676 3,997 – 2,863 – payable later than one year but not later than five years 12,562 17,624 – 16,935 – payable later than five years 24,635 26,590 – 26,565 43,873 48,211 – 46,363 These lease commitments represent payments due for the head office, regional and overseas offices and motor vehicles under operating leases. The head office lease is for 12 years commencing in the 2004 financial year. The remaining operating leases have an average lease term of three years. Lease payments comprise a base amount plus an incremental contingent rental. Contingent rentals are based on the contract terms. (c) Other expenditure commitments – payable not later than one year 1,702 600 – 600 – payable later than one year but not later than five years 895 – – – 2,597 600 – 600 88
29. CONTINGENT LIABILITIES Consolidated 2004 2003 $'000 $'000 Litigation claims Several claims for damages and costs were lodged against AWB Limited and its controlled entities which denied liability and defended the claims. The maximum damages/costs claimed but not otherwise recognised in the statement of financial position were estimated to amount to: 2,844 4,393 30. EMPLOYEE ENTITLEMENTS AND SUPERANNUATION COMMITMENTS Consolidated AWB Limited 2004 2003 2004 2003 Notes $'000 $'000 $'000 $'000 The aggregate employee entitlement liability is comprised of: – Provisions 32,347 28,390 179 8,471 Number Number Number of full time equivalent employees at the end of the year 2,730 2,729 1 544 Staff Ownership Plan An employee share offer was made to employees of AWB who were eligible employees as at December 2003. AWB offered eligible employees an interest free loan (fully repayable at the end of 10 years or upon resignation). 1,307 (2003: 222) permanent employees participated in this offer with 1,610,954 (2003: 486,418) shares being allocated, with a value of $7,217,074 (2003: $1,897,030). Employee Share Plan In January 2004, a third offer was made under the employee share plan which was established in 2002, where all permanent employees of the consolidated entity were entitled to be issued with B class shares in AWB Limited. Each permanent employee who participated received shares to the value of $1,000 (based on share price at issue date). Shares were provided under the scheme to a total of 2,044 employees. The shares were issued for nil consideration. The shares are quoted on the ASX. During the year, a total of 453,768 (2003: 116,078) B class shares were issued to employees under the plan. The total value of the shares at the date of issue was $2,037,418. It is the policy of AWB not to charge the value of the shares issued as an employee benefits expense. In accordance with this policy, no amounts have been recognised in respect of the share issue during the year. Superannuation commitments All employees are able to choose where their superannuation contributions are directed, in line with AWB Packaging Policy and Australian Taxation Office rules. AWB also offers a default fund, AWB Staff Superannuation Plan, which is a subset of the Mercer Retirement Trust for all other employees. As all schemes are accumulation schemes, AWB has no future superannuation liabilities to report. Performance Rights Plan A Performance Rights Plan exists, whereby selected senior employees (including specified executives) of the consolidated entity are given the opportunity to acquire rights over unissued B class shares in AWB Limited by participating in the plan. The terms and valuation of performance rights granted are consistent with those granted to specified executives (refer Note 24). At the date of this report, unissued ordinary shares of the company under the Performance Rights Plans are: Grant date Expiry date Exercise price (i) Number of shares 1 October 2001 1 October 2005 $1.00 169,659 1 October 2002 1 October 2006 $1.00 359,864 1 October 2003 1 October 2007 $1.00 434,965 964,488 (i) The total exercise price payable on the exercise of any performance rights on a particular day will be one dollar in total (irrespective of the number of rights exercised on that day). 89
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Annual Report 2004
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Who We Are AWB Limited (AWB) is Aus
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Finance AWB harvest finance book pe
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Five Year Summary 2004 2003 2002 20
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Chairman’s and Managing Director
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To continue building its capability
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Pool Management Services Highlights
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AWB National Pool participants. AWB
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Landmark Highlights Integrated Land
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the integration, Landmark has reloc
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Finance and Risk Management Highlig
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Finance Limited, a wholly owned, ba
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Grain Acquisition and Trading Highl
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through the AWB Geneva office, both
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Supply Chain & Other Investments Hi
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The Five Star Feed Mill, located on
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Our People AWB employs over 2,700 p
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More than 70% of AWB’s employees
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Our Social Commitment Together with
Page 39 and 40: Social service providers While not
Page 41 and 42: 7. Richard Fuller General Manager,
Page 43 and 44: Independence All of the current 11
Page 45 and 46: Services Agreement Committee The Se
Page 47 and 48: its observance provides the foundat
Page 49 and 50: Promotion Committee and Founding Ch
Page 51 and 52: 1. Brendan Stewart Chairman, Non-ex
Page 54 and 55: DIRECTORS' REPORT Your directors su
Page 56 and 57: DIRECTORS' REPORT (continued) REMUN
Page 58 and 59: DIRECTORS' REPORT (continued) DIREC
Page 60 and 61: DIRECTORS' REPORT (continued) DIREC
Page 62 and 63: STATEMENT OF FINANCIAL PERFORMANCE
Page 64 and 65: STATEMENT OF CASH FLOWS FOR THE YEA
Page 66 and 67: NOTES TO AND FORMING PART OF THE FI
Page 106 and 107: INDEPENDENT AUDIT REPORT TO THE MEM
Page 108 and 109: SHAREHOLDER COMMUNICATION FINANCIAL
Page 110 and 111: GLOSSARY AWB Basis Pool AWB Basis P
Page 112: Head Office 380 La Trobe Street Mel
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AWB Limited - 2004 Annual Report

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