CAPRICORN REPORT - Capricorn Society

CAPRICORN REPORT
2011-2012

chairman’s review
for mutual benefit.
2012 was set by the United
Nations as the International
Year of the Co-operative
(“IYC”) and Capricorn has
been a proud supporter of this
initiative. The IYC is designed
to increase public awareness
about co-operatives and
their contribution as well
as to promote the merits
of doing business together
Built on co-operative principles, the value of cooperatives
is extremely evident in Capricorn’s
history and the way it conducts business to this
day.
As a Board representing you, collectively we
recognise it is your support and regular activity
that drives the financial rewards directly back to
you as Members.
The 2011/12 year welcomed a new Chief
Executive Officer who is strategically investing
in core systems across the business to ensure
the best service is delivered to you and that
your investment is rewarded. This year, growth
has been converted to profits and cash, and the
Board will continue to demand a return on your
investment.
2011/12 Results
Capricorn has delivered an excellent performance
for the year ended 30 June 2012.
The summary of the key results to note include:-
Member purchases from suppliers were a
record AUD$ 1.1 billion, an increase of 9.0%
from 2011. This was achieved with a growth in
member numbers of 6.1% from 2011.
Total assets have grown to AUD$ 192.5M
(2011: AUD$ 176.5M), an increase of 9.0%.
Total returns to shareholders (incl. Reward
Points & Gross Dividend) have increased for
another year to a record level.
Trading profitability is ahead of the prior year,
Profit after tax and before distributions of
AUD$ 10.37M (2011: AUD$ 6.86M) is 51.2%
higher.
I explained last year that restructuring expenditure,
which had reduced profitability in 2010/11, was
designed to deliver enhanced member returns in
the future. I am pleased to be able to show some
positive results in 2011/12.
The excellent trading results and strategic
investment decisions which have taken place
during the year ended 30 June 2012 are
commendable.
Distribution to Shareholders
In celebration of the IYC and your contribution to
Capricorn, we are delighted to announce a special
dividend of 4% in addition to a dividend of 7%.
The dividend will be fully franked in Australia and
partially franked in New Zealand (all subsequent
references to gross dividend are calculated on
the basis that full franking credits are available).
The fully franked net dividend of 11% equates to
a gross dividend yield of 15.7% of contributed
equity as at 30 June 2012.
This will deliver to shareholders a payment of
AUD$6.66M (2011: AUD$4.12M) and franked tax
credits totalling AUD$2.86M (2011: AUD$1.76M),
giving a gross dividend of AUD$9.52M (2011:
AUD$5.88M).
OUR PURPOSE: “To Serve Our Members”

year in review
2011/2012 was a fantastic year
for Capricorn. In the short space
of 12 months I am delighted to
be able to share and enjoy the
success we have experienced
and to see the benefits from the
changes and improvements we
have made so far.
You share in the rewards of our cooperative
business model in many
ways. Most notably through our
Reward Points Program and Dividends. Members have
collectively earned $11.3M in 2011/12 by purchasing
through their Capricorn account. Capricorn has been
able to deliver an excellent result of a 15.7% Gross
Dividend Yield* for Capricorn’s contributed equity as
at 30 June 2012, made up as follows:-
Net Dividend of 7% (or 7 cents) (effective 10%
Gross Dividend yield*); and
Special Net Dividend of 4% (or 4 cents) (effective
5.7% Gross Dividend yield*) to celebrate 2012
as the International Year of the Co-operative
(which provides further recognition to Members’
contribution to Capricorn).
* Means where full franking credits are available
which does not include New Zealand.
More Reward Points per Dollar/Rand
Spent
Capricorn intends to increase the number of Reward
Points issued to Members for every AU$1 or NZ$1 or
Rand that a Member spends through their Capricorn
Account on eligible purchases from Preferred Suppliers
from 1 Reward Point to 1 ½ Reward Points. Not all
purchases may be eligible for the increased reward
point and this will advised at the time this change is
implemented.
While the date has not been set for the intended
increase in Reward Points awarded as yet, Capricorn
anticipates it will be in the last quarter of 2012.
Details will be shared when available.
We are thrilled with these new initiatives and the
rewards they offer to Members.
Finally, I would like to celebrate and thank you for a
rewarding and successful initial 12 months at Capricorn.
I am very much looking forward to continuing to focus
on the core business to ensure we can plan and prepare
for greater things at Capricorn now and in the future.
Yours in co-operation
For more details on key performance outcomes please
have a look at the Year in Review in the Annual Report
(Corporate Documents section – www.capricorn.coop)
I have every confidence that the work we continue to
do to improve the business will create an even more
rewarding experience for you, our Members.
Greg Wall
SOME MORE GREAT MEMBER
NEWS
We continue to look for ways to improve the products,
services and experiences available to you as a Member.
I am pleased to announce two fantastic initiatives.
Shares Purchases now on your
Capricorn Account
Purchasing shares will be easier as you will now be
able to charge your share purchases to your Capricorn
Account and then pay that amount through the normal
operation of your Account.

CAPRICORN...it’s just easier !
The following financial benefits have been or are to be
distributed to shareholders based on 2011/12 financial
results:
2012(AUD)
2011 (AUD)
Reward Points $11.3M $10.3M
Gross Dividend $9.5M
15.7%
$5.8M
10.0%
Total Distribution to Shareholders $20.8M $16.1M
In addition to the above returns, during the year
shareholders have also received returns through full
and partial buyback of shares totalling AUD$4.7M
(2011 AUD$4.1M).
Conclusion
Our success is founded on co-operative principles
which have delivered a growing organisation and
consistently strong returns to Members over a
long period in a sustainable manner.
Our strategy will continue to focus on offering an
efficient service to you to help you operate your
automotive business. As you purchase through
Capricorn you will also enjoy a financial return
which has increased again in this International
Year of the Co-Operative.
I commend to you the success of Capricorn Society
Limited in the year ended 30 June 2012.
The Team
The directors recognise the contribution of a capable
and strong leadership team, representing a blend of
Capricorn knowledge and incoming people with varied
experiences and expertise.
Your growing business demands the highest quality and
the directors understand that exceptional management
is necessary to achieve the ambitious targets which we
have set. We are pleased to confirm that these targets
were exceeded this year.
Colin Heavyside
Chairman
CAPRICORN SOCIETY LIMITED
I would like to acknowledge the support and significant
commitment of my fellow Directors who continue to
effectively represent and protect your interests at all
times.

at a glance
1,029
1,122
944
Over 2,200 members
attended Capricorn events
(golf days, dinner & displays,
barbeques etc.) in 2011/12.
661,778,610 is the
number of Reward points
used by members to buy
products on-line, to buy
travel, to get gift vouchers
and to pay their account in
2011-12.
40,346 is the number
of visits to Members by
Capricorn’s field team
throughout 3 countries in
2011-12.
10,862 is the number of
calls made by Capricorn
Alliance and Field team to
Suppliers in 3 countries in
2011-12.
852
761
674
2012
607
2011
2010
537
2009
464
2008
2007
390
2006
327
2005
2004
276
2003
253
2002
2001
222
2000
186 1999
158 1998
1997
138
1996
120
1995
92 1994
71 1993
55 1992
CAPRICORN
20 YEAR SALES HISTORY
to 30 June 2012
(AU$ MILLIONS)
SALES
(AU$)
CAPRICORN
SALES BY ZONE
to 30 June 2012

financial statements (abridged)
FINANCIAL POSITION CONSOLIDATED* PARENT (CSL)
Assets
2012
AU$ ‘000s
2011
AU$ ‘000s
2012
AU$ ‘000s
2011
AU$ ‘000s
Cash, receivables and other liquid assets 157,719 143,039 156,462 143,268
Investment assets 15,666 15,611 17,896 17,841
Property, plant and equipment 10,194 11,575 7,376 8,407
Tax assets 8,918 6,228 8,692 6,059
Total Assets 192,497 176,453 190,426 175,575
Liabilities
Trade payables and provisions 105,896 99,478 104,277 98,343
Current tax liabilities 3,290 2,205 2,539 2,213
Deferred tax liabilities 1,304 1,225 1,284 1,216
Total Liabilities 110,490 102,908 108,100 101,772
Equity
Shareholders Funds 82,007 73,545 82,326 73,803
FINANCIAL PERFORMANCE CONSOLIDATED* PARENT (CSL)
2012
AU$ ‘000s
2011
AU$ ‘000s
2012
AU$ ‘000s
2011
AU$ ‘000s
Sale of goods to members by suppliers 1,122,452 1,029,541 1,119,391 1,026,719
Payments to suppliers (1,064,660) (976,907) (1,061,827) (974,224)
Net collection 57,792 52,634 57,564 52,495
Reward points (11,293) (10,263) (11,292) (10,263)
Service fee 46,499 42,371 46,272 42,232
Late payment charge 4,174 3,399 4,175 3,399
Investment and other revenue 14,821 15,051 5,630 5,393
Total Revenue 65,494 60,821 56,077 51,024
Operating Costs (49,032) (47,070) (40,124) (36,946)
Strategic Costs (1,204) (2,413) (1,204) (2,413)
Net profit before dividends and tax 15,258 11,338 14,749 11,665
* NOTE: Consolidated entity includes CSL, CSFS Pty Ltd, CTA Pty Ltd, CMM Pty Ltd, CTS Pty Ltd, INAS Pty Ltd and CIS Pty Ltd.
Registered under the Corporations Act 2001 ACN 008 347 313
FREECALL: 1800 EASIER www.capricorn.coop