2001 Annual Report - OneSteel

More documents

Recommendations

Info

Notes to the Financial StatementsNOTE 27. EMPLOYEE ENTITLEMENTS:ConsolidatedParent2001 2001The number of employees employed at 30 June are: 7,379 –(a) Employee Share and Option Ownership SchemesOneSteel provides the following share and option plans for employees.Employees with three months service on 19 October 2000 were invited to participate in either the Tax Exempt or TaxDeferred Share Plans. Both plans offered a free parcel of shares based on the weighted average price of OneSteel sharestraded on the Australian Stock Exchange for the five days up to and including the date of issue (1 December 2000). Thevalue of the parcel of shares was $500 for employees participating in the Tax Exempt Plan and $1,000 for employeesparticipating in the Tax Deferred Plan.Both the Tax Exempt and Tax Deferred Plans also provide for salary sacrifice contributions to purchase shares on-marketon a monthly basis. Under the Tax Deferred Plan, salary sacrifice contributions are matched by way of monthly issue ofshares to the employee to a maximum value of $2,000. Matching shares are issued with a price equal to that of theon-market purchase price.Two Executive Share Plans were established for senior management: a restricted stock share plan and an option plan.The issue price of the shares and the exercise price of the options were based on the same weighted average price usedfor the issue on 1 December 2000 under the employee plans, except for the issue of shares and options on the 9 April 2001.This was based on the weighted price for the five days ending on that date. Both shares and options issued under theseplans are subject to performance hurdles and a three-year vesting period.Details of the Employee Share and Option Plans are as follows:Ord Shares2001Employee Share PlanTotal number issued to employees during the year (000’s) 7,144Total number issued to employees since the commencement of the scheme (000’s) 7,144Total number of employees eligible to participate in the scheme 6,202Total market value of issues during the year ($ million) 7Proceeds received and receivable from issues during the year ($ million) –Ord SharesOptions2001 2001Executive Long Term Incentive PlanTotal number issued to employees during the year (000’s) 4,179 5,571Total number issued to employees since the commencement of the scheme (000’s) 4,179 5,571Total number of employees eligible to participate in the scheme 47 47Total market value of issues during the year ($ million) 4 NAProceeds received and receivable from issues during the year ($ million) – NAThe shares and options issued under the Executive Long Term Incentive Plan are exercisable from 16 December 2003, or inthe case of 180,974 shares and 241,298 options issued on 9 April 2001, from 10 April 2004, subject to the companyachieving specific performance hurdles. The exercise price is 92.58 cents for the options issued in December 2000, or88.48 cents for the options issued in April 2001. The options have a maximum life of nine years. The performance hurdlesrelate to two comparative groups (the Australian Consumer Price Index plus 5% and the ASX All Industrials AccumulationIndex excluding banks, media and telecommunications) which are measured against OneSteel’s performance in terms oftotal shareholder return. Due to the nature of the performance hurdles and the short period that the company has been inoperation, the value of these shares and options is considered to be indeterminable.(b) Superannuation2001Accrued Plan Net surplus Vestedbenefits assets (deficit) benefitsFund type $m $m $m $mName of fundOneSteel Superannuation Fund Defined benefit 667.9 674.3 6.4 667.9The OneSteel Superannuation Fund began effective 1 February 2001. The value of assets transferred from the BHP Fundwas based on the formula included in the Deed of Temporary Adherence. As part of the BHP Fund the OneSteel componentwas subject to triennial reviews conducted by Watson Wyatt, the last of these reviews was conducted at 30 June 2000.An actuarial investigation of the OneSteel Fund as at the 30 June 2001 is currently underway.22
Notes to the Financial StatementsNOTE 28. CAPITAL EXPENDITURE AND LEASE COMMITMENTS:ConsolidatedParent2001 2000 2001 2000$m $m $m $mCapital expenditure commitmentsCommitments arising from contracts for expenditurein respect of investments and property, plant and equipmentto the extent not provided for in the accountsDue not later than one year 7.0 6.8 – –Capital Commitments 7.0 6.8 – –Lease expenditure commitmentsOperating leasesDue not later than one year 26.7 15.7 – –Due within one to two years 20.0 12.4 – –Due within two to five years 34.1 19.6 – –Due later than five years 28.5 4.0 – –Total commitments under operating leases 109.3 51.7 – –NOTE 29. CONTINGENT LIABILITIES:Contingent liabilities at balance date not otherwise provided for in the financial statements are categorised as follows:ConsolidatedParent2001 2001$m $mGuarantees and indemnities:(a) Performance of contracts 15.6 2.8(b) Bank guarantees covering workers compensationself insurance licenses 44.2 44.2(c) As explained in Note 31 OneSteel has entered into a Deed of Cross Guarantee in accordance with a class orderissued by the Australian Securities and Investment Commission. OneSteel Limited, and all the controlled entities whichare a party to the deed, have guaranteed the repayment of all current and future creditors in the event any of thesecompanies are wound up.Third party claims:OneSteel has been involved from time to time in various claims and lawsuits incidental to the ordinary course of business,including claims for damages and commercial disputes relating to its products and services. Based on legal adviceobtained, the Directors do not expect any significant liability to eventuate.NOTE 30. FINANCING ARRANGEMENTS:DrawnAccessible Down UnusedConsolidated at 30 June 2001 $m $m $mAccounts receivable securitisation (a) 200.0 191.2 8.8Working capital facility (b) 50.0 0.0 50.0Bank loan facility (c) 1,110.0 769.7 340.3Bank overdraft (d) 17.2 6.8 10.4Total financing facilities 1,377.2 967.7 409.5(a) No specified expiry date, uncommitted facility.(b) Expires October 2001.(c) Various facilities with a range of expiry dates from October 2001 to October 2005.(d) Various facilities with a range of expiry dates from October 2001 to February 2002.23
Page 1 and 2:
2001 ANNUAL REVIEW
Page 3 and 4:
CONTENTSOne Business 2Year One High
Page 5 and 6:
ssVertically-Integrated OperationsO
Page 7 and 8:
FINANCIAL HIGHLIGHTS - PRO-FORMA*Fi
Page 9 and 10:
Inventories were managed down $106.
Page 11 and 12:
Figure Two - OneSteel IntegrationWH
Page 13 and 14:
Management StructureONESTEEL LIMITE
Page 15 and 16:
Figure Ten - Other Manufacturing ($
Page 17 and 18:
Map of OperationsCANADAYukonWhiteho
Page 19 and 20:
Australian DistributionTHE BUSINESS
Page 21 and 22:
OneSteel structural steel used for
Page 23 and 24:
Human ResourcesSTANDING ALONEMuch o
Page 25 and 26: EnvironmentOneSteel Duragal product
Page 27 and 28: CommunityOneSteel recognises the im
Page 30 and 31: Corporate Governance (continued)Com
Page 32 and 33: Directors’ ReportDIRECTORSThe fol
Page 34 and 35: Directors’ Report (continued)Deta
Page 36 and 37: Discussion of Pro-forma ResultsPRO-
Page 38 and 39: Pro-forma Results12 months to 30 Ju
Page 40 and 41: Discussion and Analysis ofStatutory
Page 42 and 43: Statement of Financial PerformanceF
Page 44 and 45: Notes to the Concise Financial Repo
Page 46 and 47: Notes to the Concise Financial Repo
Page 48 and 49: Directors’ DeclarationThe directo
Page 50 and 51: Shareholder Information (continued)
Page 53 and 54: 2001 FULL FINANCIAL REPORT
Page 55 and 56: Directors’ ReportDIRECTORSThe fol
Page 57 and 58: Directors’ Report (continued)Deta
Page 59 and 60: Statement of Financial PositionAT 3
Page 61 and 62: Statement of Cash FlowsFOR THE PERI
Page 63 and 64: Notes to the Financial StatementsNO
Page 75: Notes to the Financial StatementsNO
Page 87 and 88: Independent Audit ReportTo the Memb
Page 89 and 90: Shareholder Information (continued)
Page 91: Company DirectoryDIRECTORSPeter Sme
show all

2001 Annual Report - OneSteel

Create successful ePaper yourself

Delete template?

Save as template?