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Contents
Key Points
About Wattyl
Chairman's Report
Managing Director's Report
Finance Report
Review of Operations
Our People
Board of Directors
Corporate Governance
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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finance report
net debt (A$m)
interest cover (times)
interest cover
cash flow
Net cash flow from operating activities
of $21.9 million ($33.4 million in FY2007)
was impacted by lower operating
performance in the current year, with
the prior year also including a $5.0
million tax refund.
capital expenditure
Whilst Wattyl has maintained its prudent
approach to capital expenditure with
projects focusing primarily on sustaining
operations, FY2008 expenditure of
$11.4 million increased over the prior
year level of $7.4 million primarily due to
the new point of sale system, new
colour system and new filling lines.
financial position
Wattyl’s financial position remains strong,
with net debt of $46.5 million at 30 June
2008, compared to $48.0 million at
30 June 2007. This represents a
gearing ratio (net debt: equity & net
debt) of 26.6% compared to 26.9%
at June 2007.
Bank loans and facilities were
renegotiated in August 2006 and
have been increased to $100 million
for a three year term expiring on
30 September 2009.
Wattyl has operated within all relevant
bank and debt covenants during FY2008,
with interest cover (EBIT before nonrecurring
items to total interest paid)
at 3.9 times (2007: 5.4 times).
financial risk
management
Exposure to currency, credit, liquidity and
interest rate risks arises in the normal
course of Wattyl’s business. Corporate
Finance is responsible for financial risk
management under policies approved
by the Board. The overall financial risk
management program seeks to
minimise potential adverse effects,
reduce volatility of earnings and ensure
a base level of profitability.
Further details are provided in note
37 of the financial statements.
Urs Meyerhans,
Finance Director
0
5
10
15
20
25
02 03 04 05 06 07 08 120.3
121.4
90.2
80.9
84.8
81.9
79.1
0
2
4
6
8
10
12
02 03 04 05 06 07 08
74.1
45.4
20.3
10.6
26.7
48.0
46.5
capital expenditure
depreciation and amortisation
capital expenditure (A$m)
02 03 04 05 06 07 08
0
6
12
19.0
11.0
13.8
8.9
8.0
7.3
11.4
AGAAP AIFRS
Wattyl annual report 2008
working capital (A$m)
working capital as a % sales
working capital