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Chairman's Report
Managing Director's Report
Finance Report
Review of Operations
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Directors' Report
    Remuneration Report
Auditor's Independence Declaration
Financial Statements
    Income Statements
    Balance Sheets
    Statements of Recognised Income and Expense
    Cash Flow Statements
Notes to the Financial Statements
Directors' Declaration
Independent Auditor's Report
Stock Exchange and Listing Requirements
Shareholder Communications
Group Results - Five Year Summary
Corporate Directory
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Directors’ report

The directors of Wattyl Limited present their report on the consolidated entity consisting of Wattyl Limited (the company) and the entities it
controlled at the end of, or during, the year ended 30 June 2008.
Directors
The following persons were directors of the company during the whole of the financial year and up to the date of this report:
J.W. Ingram
J.D. Nolan
U.B. Meyerhans
M.R. Brown
P.E. Akopiantz
M.B. Luby
Information on directors is set out on page 17 of this Annual Report.
Directors’ Shareholdings
Shares Performance Rights
J.W. Ingram 71,246 n/a
J.D. Nolan 32,000 n/a
U.B. Meyerhans 202,000 81,932
M.R. Brown 5,000 n/a
P.E. Akopiantz 2,000 n/a
M.B. Luby 2,000 n/a
Principal activities
During the year the principal activities of the consolidated entity were the manufacture and marketing of paints and other surface coatings.
There was no significant change in the nature of these activities during the year.
Dividends — Wattyl Limited
2008 2007
$’000 $’000
Dividends paid to members during the financial year were as follows:
Final ordinary dividend for the year ended 30 June 2007 of 7 cents
(2007 – 6 cents) per fully paid share paid on 21 September 2007 5,215 4,834
Final special dividend for the year ended 30 June 2007 of nil cent (2007 – 40 cents) — 32,801
Interim ordinary dividend for the year ended 30 June 2008 of 7 cents
(2007 – 8 cents) per fully paid share paid on 28 March 2008 5,520 5,929
10,735 43,564
In addition to the above dividends, since the end of the financial year the directors have recommended the payment of a final ordinary dividend
of $2,544,000 (3 cents per fully paid share) to be paid on 26 September 2008.
Review of operations
The consolidated net profit for the year after income tax was $11,656,000, this compares with a reported net profit after income tax of
$16,588,000 in the prior corresponding period, which included a charge for non-recurring items of $174,000.
Australia
Sales in Australia were 0.5% below last year, impacted by changes occurring in the corporate retail sector, increased competitor activity
and our exposure to the heavily depressed NSW housing market. Changes have occurred in the marketplace with one corporate retailer
commencing an exit from the paint sector and another having decided to distribute imported paint. These changes have resulted in a provision
of $1.8 million to cover the impact of expected stock returns from both corporate retailers as they progress their changes.
The competitive marketplace has increased as industry participants adjust to these changes while operating in a slowing economic
environment. As a result it has not been possible to improve overall pricing against rising input costs. Productivity improvement has not been
sufficient to fully offset these inflationary cost increases.
New Zealand
In New Zealand business was impacted by the poor economic conditions with overall sales down 8.8%. There has been a significant decline
in the housing sector and, with the slowing economy, activity in the total retail sector has been down approx 10% compared to the prior year.
Trade sector volumes remained similar to last year.
Cost initiatives have helped to offset inflationary cost increases and some price recovery has been possible in this market. The result also
includes the settlement of $0.5 million on a 10 year old litigation claim.
A detailed review of the operations of the consolidated entity during the financial year and the results of those operations is set out in the