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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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managing director’s
report
2008 in review
“The entire Wattyl
Group team have
worked tirelessly
during a difficult year
and have remained
focused on the tasks
necessary to ensure
the business meets
the challenges ahead.”

Although trading conditions have been
difficult we have completed a number
of important market initiatives.

overview
During the 2007/08 financial year the
economic environment in Australia has
been uncertain, particularly in the
second half and the housing sector
has remained at relatively low levels
with new housing starts remaining
similar to last year. This housing
cycle has been most unusual with new
housing commencements in NSW now
commencing a fifth year at the bottom
of the cycle.
In addition to the economic situation,
two significant changes in the market
commenced with one corporate retailer
signalling their intention to exit the paint
sector and another announcing their
plans to introduce imported paint.
The general economic conditions in
New Zealand were also uncertain.
Sales for the group of $420.3 million
were 1.5% below last year and the
financial performance measured at
underlying EBIT (Earnings Before
Interest and Tax – excluding ‘nonrecurring
items’) of $23.0 million was
a reduction of 24.9% from last year.
This result also includes:
• a provision of $1.8 million for
expected stock returns from the two
corporate retailers as they implement
their changes during the first quarter
of the FY08/09 financial year;
• additional costs of investment in
our own store network in New
Zealand where five new stores have
been established;
• settlement of a 10-year-old claim
in New Zealand.
The cash flow from operating activities
was $21.9 million reflecting the lower
profitability.
australia
Activity in the new housing sector
remained at relatively low levels for
the fourth year, and in NSW new
commencements have remained
at very low levels during the year.