AMCIL LIMITED — Interim / Quarterly Report 2012

Feb 21, 2012

2011

HALF-YEARLY REVIEW TO 31 DECEMBER 2011 A FOCUSED PORTFOLIO OF AUSTRALIAN EQUITIES

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ConTEnTs

• 1 Summary of Results

• 2 Review of Operations

• 5 Top Investments

• 6 Income Statement

• 7 Balance Sheet

• 8 Statement of Changes in Equity

• 9 Holdings of Securities

• 14 Major Changes to the Investment Portfolio

• 15 Portfolio Performance

• 16 Company Particulars

• 17 Shareholder Meetings

AMCIL LIMITED ABN 57 073 990 735

sUMMARY oF REsULTs FoR THE sIX MonTHs To 31 DECEMBER 2011

Reported Profit After Tax

Profit after tax for the half year was $4.9 million versus $5.0 million over the corresponding period last year. These figures include the movement in the unrealised value of the Company’s investment in Hastings Diversified Utilities Fund, as required under current accounting standards.

Net Operating Result

Net operating result which measures the income generated from the investment and trading portfolios was $3.0 million versus $3.3 million last year.

Earnings Per Share

Earnings per share based on net operating result were 1.44 cents compared with 1.69 cents last year.

Total Portfolio Return

Total portfolio return during the six months to 31 December 2011 (change in net asset backing per share plus dividend) was positive 0.5 per cent whereas the S&P/ASX 200 Accumulation Index was negative 9.7 per cent over the corresponding period.

Total Shareholder Return

Total shareholder return measured by change in share price plus dividends over the six month period was positive 1.5 per cent.

Total Portfolio

Total portfolio at market value at 31 December 2011 was $155.1 million. This includes cash of $4.5 million.

Management Expense Ratio

Management expense ratio on an annualised basis was 0.85 per cent. The figure for the corresponding period last year was 0.83 per cent.

Net Asset Backing

Net asset backing per share at 31 December 2011 was 74 cents. At 30 June 2011 the net asset backing was 78 cents.

AMCIL LIMITED HALF-YEARLY REVIEW TO 31 DECEMBER 2011

1

REVIEW oF oPERATIons

For the six month period to 31 December 2011 in which the Australian equity market was down and risk averse, AMCIL delivered a positive portfolio return of 0.5 per cent. This was approximately 10 per cent ahead of the S&P/ASX 200 Index return of negative 9.7 per cent. For the calendar year, AMCIL’s portfolio return was negative 0.9 per cent against the Index which was negative 10.5 per cent. With a small concentrated investment portfolio, AMCIL’s approach is to focus on where it sees the best medium to long term value in either small or large companies.

Major contributors to the positive performance of the portfolio for the half year were gains in Hastings Diversified Utilities Fund, which is now the largest holding in the portfolio and subject to a takeover offer from the APA Group, Senex Energy, Telstra, Transurban, and Eastern Star Gas. Furthermore, AMCIL has limited exposure to the discretionary retail and the smaller resources sectors, both of which have been hard hit through the recent market downturn.

AMCIL was an active participant in the market through this volatile period as a number of opportunities arose to purchase companies that in our opinion represent good investments at attractive prices. Major purchases during the period were in Ansell, Origin Energy, Wesfarmers, Woodside Petroleum,

Orica, Incitec Pivot and Engenco. Of these the following are new to the portfolio:

• Ansell which is a global company providing healthcare barrier protection products. Ansell operates under three divisions: Medical Solutions – surgical and examination gloves; Industrial Solutions – body protection for industry; and Consumer Healthcare. Operations span across the Americas, Europe, and Asia Pacific.

• Orica which is a manufacturer of industrial and specialty chemicals, commercial explosives and mining chemicals in Australasia. Following the 2010 demerger of the consumer products business, DuluxGroup, Orica has three business groups; Mining Services, Orica Chemicals and Minova.

• Wesfarmers which is a diversified company covering Coles supermarkets, department stores, home improvement and office supplies; coal mining; insurance; chemicals, energy and fertilisers; and industrial and safety products.

• Woodside Petroleum which is an operator of oil and gas production in Australia. Woodside has operations encompassing the production of liquefied natural gas, domestic gas, condensate, crude oil and liquefied petroleum gas. WPL has six business units including international, Australia,

2 AMCIL LIMITED HALF-YEARLY REVIEW TO 31 DECEMBER 2011

North West Shelf, Pluto, Browse and Sunrise. Currently, the production is obtained from North West Shelf and Australia Oil (Enfield, Vincent and Stybarrow).

There were also a number of sales from the portfolio during the half year as some companies no longer fitted the investment criteria for a high conviction portfolio like AMCIL and other investment opportunities emerged. Major sales were in lluka Resources as the share price rose strongly through

the period, Eastern Star Gas which was under a takeover offer from Santos, Trust Company, Peet Limited, Perpetual Trustees and Alumina. Other than Iluka all of these sales represented a complete disposal from the investment portfolio.

AMCIL continues to be well positioned with cash of $4.5 million as well as access to $10 million of debt facilities to take advantage of attractive opportunities that can arise in volatile markets.

Portfolio Return – Per Annum Return to 31 December 2011*

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15
10
5
0
-5
-10
-15
6 month return 1 year return 5 year return Return since
recapitalisation
in January 2004
AMCIL return on capital [#] S&P/ASX 200 Accumulation Index
12.2
Percentage 0.5 -0.9 5.9 7.2
-9.7 -10.5 -2.3
----- End of picture text -----

• All figures annualised other than the six month returns.

• Return on capital is measured by the change in net asset backing plus reinvested dividends and adjusting for the additional cash received from the exercise of options since recapitalisation of the Company in January 2004.

AMCIL LIMITED HALF-YEARLY REVIEW TO 31 DECEMBER 2011

3

REVIEW oF oPERATIons CONTINUED

The Value of $1,000 Invested in AMCIL at Recapitalisation*

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3
2.5
2
1.5
1
0.5
ASX 200 Accumulation Index Share Price Accumulation
$’000
Dec 03 Jun 04 Dec 04 Jun 05 Dec 05 Jun 06 Dec 06 Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11
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• Assumes a shareholder reinvested dividends paid. It also assumes a shareholder received the option of 50 cents per share, exercisable on 28 February 2007, as part of the recapitalisation in January 2004.

Profit and Dividend

Profit for the half year was $4.9 million, which is marginally down on last year’s result of $5.0 million. These figures include the movement in the unrealised value of the Company’s investment in Hastings Diversified Utilities Fund, which is required under current accounting standards.

The Net Operating Result, which represents the income generated from the investment and trading portfolios, was $3.0 million versus $3.3 million last year. Dividends and distributions were

generally in line with the corresponding period last year. The primary reason for the fall was the negative contribution of $0.5 million from the trading portfolio versus the positive contribution last year of $0.3 million.

In line with the Company’s current practice the Board has not declared an interim dividend. The Company’s policy of paying dividends is to maximise the distribution of franking credits having regard to the profit for the year.

4 AMCIL LIMITED HALF-YEARLY REVIEW TO 31 DECEMBER 2011

ToP InVEsTMEnTs

AS AT 31 DECEMBER 2011

Includes investments held in both the investment and trading portfolios.

Valued at Closing Prices at 30 December 2011

		Total Value	% of
Investments		$’000	Portfolio
1	Hastings Diversifed Utilities Fund	11,926	7.9
2	Commonwealth Bank of Australia*	8,675	5.8
3	Westpac BankingCorporation	7,341	4.9
4	Transurban Group	7,216	4.8
5	BHP Billiton	6,762	4.5
6	National Australia Bank	6,577	4.4
7	Senex Energy	6,415	4.3
8	Australia and New Zealand BankingGroup*	5,864	3.9
9	Telstra Corporation	5,669	3.8
10	Tox Free Solutions	5,647	3.7
11	Bradken	5,185	3.4
12	Australian Infrastructure Fund	4,497	3.0
13	Origin Energy	4,381	2.9
14	QBE Insurance Group	4,166	2.8
15	Brambles	4,138	2.7
16	Amcor	4,083	2.7
17	Oil Search	4,067	2.7
18	Coca-Cola Amatil	4,029	2.7
19	AMP	3,867	2.6
20	Campbell Brothers	3,620	2.4
Total		114,124
As a	percentage of total portfolio (excludes cash)		75.8%

• Indicates that options were outstanding against part or all of the holding in the trading portfolio.

AMCIL LIMITED HALF-YEARLY REVIEW TO 31 DECEMBER 2011

5

InCoME sTATEMEnT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

	Half-year	Half-year
	2011	2010
	$’000	$’000
Dividends and distributions	3,801	3,723
Revenue from deposits and bank bills	220	65
Net gains/(losses) on trading portfolio	(536)	253
Realised gains from options written portfolio	-	20
Other revenue	7	-
Total income	3,492	4,061
Finance costs	(38)	(48)
Administration expenses	(656)	(601)
Operating result before income tax	2,798	3,412
Income tax(expense)/credit	217	(84)
Net operating result	3,015	3,328
Net capital gains/(losses) on investments
Net gains on ‘puttable instruments’	2,734	2,459
Net gains/(losses) on open options positions	-	(11)
Tax on netgains on investments	(820)	(735)
	1,914	1,713
Netproft for the half-year(includingcapitalgains)after tax	4,929	5,041
	Cents	Cents
Net operating result per share	1.44	1.69
Netproft for the half-year(includingcapitalgains) per share	2.36	2.56

6 AMCIL LIMITED HALF-YEARLY REVIEW TO 31 DECEMBER 2011

BALAnCE sHEET

AS AT 31 DECEMBER 2011

	31 Dec	30 June
	2011	2011
	$’000	$’000
Current assets
Cash	4,478	14,029
Receivables	616	1,201
Trading portfolio	2,923	3,760
Income tax credit	5	-
Total current assets	8,022	18,990
Non-current assets
Investment portfolio	147,681	144,086
Deferred tax assets	287	191
Total non-current assets	147,968	144,277
Total assets	155,990	163,267
Current liabilities
Payables	563	829
Tax payable	-	373
Options written	-	-
Total current liabilities	563	1,202
Non-current liabilities
Deferred tax liabilities – investmentportfolio	5,510	5,990
Total non-current liabilities	5,510	5,990
Total liabilities	6,073	7,192
Net assets	149,917	156,075
Shareholders’ equity
Share capital	129,377	129,377
Revaluation reserve	15,369	17,224
Retainedprofts	5,171	9,474
Total shareholders’ equity	149,917	156,075

AMCIL LIMITED HALF-YEARLY REVIEW TO 31 DECEMBER 2011

7

sTATEMEnT oF CHAnGEs In EQUITY

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

Half-year	Half-year	Half-year
	2011	2010
	$’000	$’000
Total equity at the beginning of the half-year	156,075	134,782
Dividends paid	(7,318)	(3,897)
New shares issued under Dividend Reinvestment Plan	-	1,826
Total transactions with shareholders	(7,318)	(2,071)
Revaluation of investment portfolio	(3,292)	13,682
Provision for tax on revaluation	1,299	(4,681)
Net revaluation of investment portfolio	(1,993)	9,001
Realised gains/(losses) not taken through the Income Statement	(1,776)	1,450
Total other comprehensive income	(3,769)	10,451
Proft for the half-year	4,929	5,041
Total equityat the end of the half-year	149,917	148,203

This half-yearly review is not a full set of statutory interim financial statements. The full statutory interim financial report is available on the Company’s website.

AMCIL LIMITED HALF-YEARLY REVIEW TO 31 DECEMBER 2011

8

HoLDInGs oF sECURITIEs

AS AT 31 DECEMBER 2011

Details of the Company’s portfolios are given below. The list should not, however, be used to evaluate portfolio performance or to determine the net asset backing per share (which is recorded each month on the toll free telephone service at 1800 780 784 and is available on the Company’s website www.amcil.com.au).

Unless otherwise stated, the securities in this list are fully paid ordinary shares, trust units or stapled securities.

			Number	Market
			Held	Value
Code	Company	Principal Activities	’000	$’000
AGO	Atlas Iron	Iron ore miner with operating mines
		and mine developments in the
		Pilbara region of Western Australia	150	405
AIX	Australian	Investor in transport infrastructure
	Infrastructure	assets, predominantly Australian
	Fund	airports	2,330	4,497
AMC	Amcor	Global packaging company	566	4,083
AMP	AMP	Major Australasian fnancial services
		organisation	950	3,867
ANN	Ansell	Designs, manufactures and markets
		a wide range of industrial, surgical
		and examination gloves and other
		protective products	214	3,112
ANZ*	Australia and	Banking and wealth management
	New Zealand	services
	Banking Group		286	5,864
ARP	ARB Corporation	Manufacturer and distributor of
		four-wheel drive vehicle accessories
		in Australia and internationally	154	1,192
ASZ	ASG Group	Provision of computer infrastructure,
		application development, systems
		integration and specialist technical
		services	2,119	1,833

AMCIL LIMITED HALF-YEARLY REVIEW TO 31 DECEMBER 2011

9

HoLDInGs oF sECURITIEs CONTINUED

AS AT 31 DECEMBER 2011

			Number	Market
			Held	Value
Code	Company	Principal Activities	’000	$’000
BHP	BHP Billiton	Diversifed international resources
		company	196	6,762
BKN	Bradken	Manufacturer and supplier of
		differentiated consumable products
		to the resources and freight rail
		industries	726	5,185
BXB	Brambles	Global provider of supply chain
		management and storage solutions	578	4,138
CBA*	Commonwealth	Banking and wealth management
	Bank of Australia	services	176	8,675
CCL	Coca-Cola Amatil	Manufactures and distributes a
		range of carbonated soft drinks, fruit
		products and functional beverages,
		many of which are trademarks of
		The Coca-Cola Company	350	4,029
CPB	Campbell Brothers	Provider of analytical services
		and distributor of consumer and
		industrial goods and hospitality
		supplies	74	3,620
EGN	Engenco	Group of industrial engineering
		businesses servicing customers
		in the resources, rail, transport,
		defence, maritime and power
		generation industries	1,835	1,963
EQT	Equity Trustees	Provider of private client, trustee,
		estate administration and funds
		management services	209	2,790
FWD	Fleetwood	Provider of manufactured
	Corporation	accommodation for the resources
		and retirement sectors	166	1,986

10 AMCIL LIMITED HALF-YEARLY REVIEW TO 31 DECEMBER 2011

			Number	Market
			Held	Value
Code	Company	Principal Activities	’000	$’000
HDF	Hastings	Investor in Australian gas pipelines
	Diversifed
	Utilities Fund		5,817	11,926
#	Hexima	Agricultural-biotech company
		engaged in the research and
		development of technology for
		the genetic modifcation of crops	875	267
ILU	Iluka Resources	Miner of zircon and titanium based
		mineral sands products with an
		additional iron ore production royalty	160	2,480
IPL	Incitec Pivot	Manufacturer and supplier of nitrogen
		based fertiliser and industrial
		explosives	812	2,525
IRD	Iron Road	Iron ore exploration company with
		principal project in South Australia	186	102
#	iSelect	Online comparison tool that
		matches consumers with the
		most appropriate insurance policy
		and other fnancial products	97	1,500
JHX	James Hardie	Building materials company
	Industries	focused on fbre cement products,
		predominantly in the USA	75	511
LYL	Lycopodium	Engineering and project
		management business that
		predominantly works on mineral
		processing, industrial process
		and utilities plant and equipment	90	538
MRM	Mermaid Marine	Provider of supply base and vessel
	Australia	services to the offshore oil and gas
		industry	565	1,606

AMCIL LIMITED HALF-YEARLY REVIEW TO 31 DECEMBER 2011

11

HoLDInGs oF sECURITIEs CONTINUED

AS AT 31 DECEMBER 2011

			Number	Market
			Held	Value
Code	Company	Principal Activities	’000	$’000
NAB	National Australia	Banking and wealth management
	Bank	services	282	6,577
ORG	Origin Energy	Integrated energy company involved
		in gas and oil exploration, production,
		energy retailing and power generation	328	4,381
ORI	Orica	Supplier of explosives and associated
		consumable equipment to the global
		mining, quarrying and construction
		industries. The company is also a
		leading manufacturer, distributor
		and trader of a range of industrial
		chemicals across several continents	74	1,794
OSH	Oil Search	Oil and gas explorer, developer and
		producer with assets predominantly
		in PNG	651	4,067
PNA	PanAust	Minerals explorer, developer and
		miner producing copper-gold
		concentrate in Laos	429	1,372
QBE	QBE Insurance	General insurance and reinsurance
	Group	services provider	322	4,166
REA	REA Group	Operator of residential and
		commercial real estate advertising
		websites in Australia and Italy	243	3,038
SXY	Senex Energy	Oil and gas explorer and developer
		with assets in South Australia and
		Queensland	10,102	6,415
TCL	Transurban Group	Developer and operator of electronic
		toll roads in Australia and overseas	1,284	7,216
TGR	Tassal Group	Producer and exporter of Atlantic
		Salmon from Tasmania	812	1,136

12 AMCIL LIMITED HALF-YEARLY REVIEW TO 31 DECEMBER 2011

			Number	Market
			Held	Value
Code	Company	Principal Activities	’000	$’000
TLS	Telstra Corporation	Telecommunications operator
		and information services provider	1,702	5,669
TOX	Tox Free Solutions	Integrated waste management
		and environmental service business	2,602	5,647
WBC	Westpac Banking	Banking and wealth management
	Corporation	services	367	7,341
WES	Wesfarmers	Diversifed conglomerate with
		retailing operations in supermarkets,
		department stores, home
		improvement and offce supplies.
		The Group also operates businesses
		involved in coal mining, energy,
		insurance, chemicals, fertilisers,
		and industrial and safety products	77	2,272
WLL	Wellcom Group	Production company providing pre
		media services to advertisers,
		retailers and corporate organisations	815	1,915
WPL	Woodside	Producer of liquefed natural gas,
	Petroleum	domestic gas, condensate, crude oil
		and liquefed petroleum gas,
		primarily in West Australia	70	2,143
Total				150,604

• Investments marked with an asterisk were the subject of options, either for the whole holdings in the trading portfolio or part of it.

Unlisted security.

AMCIL LIMITED HALF-YEARLY REVIEW TO 31 DECEMBER 2011 13

MAJoR CHAnGEs To THE InVEsTMEnT PoRTFoLIo

	Cost
Acquisitions(Above $1 Million)	$’000
Ansell*	2,946
Origin Energy	2,590
Wesfarmers*	2,343
Woodside Petroleum*	2,307
Orica*	1,750
Incitec Pivot	1,394
Engenco	1,177

	Proceeds
Disposals(Above $1 Million)	$’000
Iluka Resources	2,411
Eastern Star Gas#	2,322
Trust Company#	2,213
Peet#	1,744
Perpetual#	1,605
Alumina#	1,408
ASG Group	1,225

• New stock in the investment portfolio.

Complete disposal from the investment portfolio.

AMCIL LIMITED HALF-YEARLY REVIEW TO 31 DECEMBER 2011

14

PoRTFoLIo PERFoRMAnCE

TO 31 DECEMBER 2011

			Annualised Returns	Annualised Returns
					Since
Performance	6 Month	1 Year	3 Years	5 Years	Recapitalisation
measures	%	%	%	%	%
Portfolio return*	0.5	-0.9	14.8	5.9	12.2
S&P/ASX 200
Accumulation Index	-9.7	-10.5	7.6	-2.3	7.2
S&P/ASX 200
Industrials
Accumulation Index	-4.4	-3.5	8.0	-3.8	5.5
S&P/ASX 200
Resources
Accumulation Index	-20.9	-24.6	6.9	3.1	13.5

• Portfolio performance is measured by the change in net asset backing plus reinvested dividends and adjusting for the additional cash received from the exercise of options since recapitalisation of the Company in January 2004.

AMCIL LIMITED HALF-YEARLY REVIEW TO 31 DECEMBER 2011

15

CoMPAnY PARTICULARs

AMCIL Limited (‘AMH’) ABN 57 073 990 735

AMCIL is a Listed Investment Company. It is a thematic investor in equities and similar securities on the stock market primarily in Australia.

Directors

Bruce B Teele, Chairman Ross E Barker, Managing Director Peter C Barnett Terry A Campbell AO Rupert Myer AM Richard (Bob) Santamaria Stan DM Wallis AC

Company Secretaries Simon M Pordage Andrew JB Porter

Contact Details

Telephone (03) 9650 9911 Facsimile (03) 9650 9100 Email invest@amcil.com.au Website www.amcil.com.au

For enquiries regarding net asset backing (as advised each month to the Australian Securities Exchange):

Telephone 1800 780 784 (toll free)

Share Registrar

Computershare Investor Services Pty Ltd Yarra Falls, 452 Johnston Street Abbotsford Victoria 3067

AMH Shareholder

Enquiry Lines 1300 653 916 +613 9415 4224 (from overseas) Facsimile (03) 9473 2500 Website www.investorcentre.com/contact

Auditor

PricewaterhouseCoopers Chartered Accountants

Country of Incorporation Australia

For all enquiries relating to shareholdings, dividends and related matters, please contact the share registrar as above.

Australian Securities Exchange Code AMH Ordinary shares

Registered Office Level 21, 101 Collins Street Melbourne Victoria 3000

Mail Address GPO Box 2114 Melbourne Victoria 3001

16 AMCIL LIMITED HALF-YEARLY REVIEW TO 31 DECEMBER 2011

sHAREHoLDER MEETInGs

Melbourne Meeting

Time 1.00pm Date Monday 19 March 2012 Venue The Hilton on the Park Location 192 Wellington Parade East Melbourne

Canberra Meeting Time 1.00pm Date Monday 26 March 2012 Venue Hyatt Hotel Location Commonwealth Avenue Yarralumla

Other Meetings

Meetings of shareholders will be arranged in other centres later in the financial year. Shareholders with addresses within reasonable proximity will be notified well ahead of the meeting date.

AMCIL LIMITED HALF-YEARLY REVIEW TO 31 DECEMBER 2011 17

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