Economic

Our major operating business interests in the period covered by this report were home and garden improvement products and building supplies; coal mining; insurance; industrial and safety products distribution; chemicals and fertilisers manufacture; and gas production and distribution and power supply.

In April 2007 we announced a proposal to acquire Coles Group Limited and in July the Board of Coles recommended our offer. At time of sign-off on this report, Coles’ shareholders were due to vote on 7 November on an enhanced proposal we announced on 5 September which again received the endorsement of the Board of Coles.

In the year to 30 June 2007 our company recorded a net profit of $786 million. At the end of the reporting period we had a market value of $17.7 billion. Some of the Group’s significant financial performance indicators are summarised in Figure 1.

Our operations have a significant impact on the economies of Australia and New Zealand. Major payments included more than $1 billion in salaries and wages to employees, our shareholders received $865 million in dividends and we paid $700 million to governments at all levels.

More than 90 per cent of our revenues and earnings are derived from our Australian operations. We are not required to report separately on the financial outcomes of our New Zealand activities.

We are one of 21 Australian companies selected for inclusion in the Dow Jones Sustainability World Indexes for 2007.

This covers the top 10 per cent of the 2,500 biggest companies in the Dow Jones World Index in terms of corporate sustainability after assessment against economic, environmental and social criteria.