AMCIL LIMITED — Interim / Quarterly Report 2012

Jan 22, 2012

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AMCIL LIMITED

ABN 57 073 990 735

APPENDIX 4D STATEMENT FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

CONTENTS

• Results for announcement to the market

• Media Release

• Appendix 4D Accounts

• Independent Auditors’ Review Report

This half-year report is presented under listing rule 4.2A and should be read in conjunction with the Company’s 2011 Annual Report.

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RESULTS FOR ANNOUNCEMENT TO THE MARKET

The reporting period is the half-year ended 31 December 2011 with the previous corresponding period being the half-year ended 31 December 2010.

Results for announcement to the market

• Profit for the half-year was $4.9 million, down 2.2% from the previous corresponding period. This figure includes unrealised gains or losses on puttable instruments in the investment portfolio and on open options positions.

• Net Operating Result before net gains on investments was $3.0 million, down 9.4% from $3.3 million in the previous corresponding period.

• Revenue from investments was $4.0 million, up 6.2% from $3.8 million in the previous corresponding period.

• Net tangible asset backing per share before any provision for tax on unrealised gains at 31 December 2011 was 74 cents per share, down from 79 cents at the end of the previous corresponding period.

• A final dividend of 3.5 cents per share (fully franked) in respect of the financial year ended 30 June 2011 was paid on 26 August 2011.

• In line with the Company’s previous practice, no interim dividend has been declared in respect of the half year ended 31 December 2011.

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AMCIL STRONGLY OUTPERFORMS IN DOWN MARKET

MEDIA RELEASE - HALF YEAR RESULT TO 31 DECEMBER 2011

23 January 2012

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 percent. This was approximately 10 percent ahead of the S&P/ASX 200 Index return of negative 9.7 percent. For the calendar year AMCIL’s portfolio return was negative 0.9 percent against the Index which was negative 10.5 percent. 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, 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.

Profit for the half year was $4.9 million, which is marginally down on last year’s result of $5.0 million.

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. 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.

AMCIL has 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.

Please direct any enquiries to:

Ross Barker Geoff Driver Managing Director General Manager (03) 9225 2101 (03) 9225 2102

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MAJOR TRANSACTIONS IN THE INVESTMENT PORTFOLIO

Acquisitions (above $1 million)	Cost
	$’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
Disposals (above $1 million)	Proceeds
	$’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

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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	Total Value
$ '000
1 Hastings Diversified Utilities Fund 11,926
2 * Commonwealth Bank of Australia 8,675**
3 Westpac Banking Corporation 7,341
4 Transurban Group 7,216
5 BHP Billiton 6,762
6 National Australia Bank 6,577
7 Senex Energy 6,415
8 * Australia and New Zealand Banking Group 5,864**
9 Telstra Corporation 5,669
10 Tox Free Solutions 5,647
11 Bradken 5,185
12 Australian Infrastructure Fund 4,497
13 Origin Energy 4,381
14 QBE Insurance Group 4,166
15 Brambles 4,138
16 Amcor 4,083
17 Oil Search 4,067
18 Coca-Cola Amatil 4,029
19 AMP 3,867
20 Campbell Brothers 3,620
Total 114,124
As % of Total Portfolio	75.8%
(excludes Cash)

*Indicates that options were outstanding against all or part of the holding

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PORTFOLIO PERFORMANCE TO 31 DECEMBER 2011

		ANNUALISEDRETURNS	ANNUALISEDRETURNS	ANNUALISEDRETURNS	ANNUALISEDRETURNS
PERFORMANCEMEASURES	6 MONTH	1 YEAR	3 YEARS	5 YEARS	SINCE RECAPITALISATION
PORTFOLIORETURN*	0.5%	-0.9%	14.8%	5.9%	12.2 %
S&P/ASX 200 ACCUMULATIONINDEX	-9.7%	-10.5%	7.6%	-2.3%	7.2%
S&P/ASX 200 INDUSTRIALSACCUMULATIONINDEX	-4.4%	-3.5%	8.0%	-3.8%	5.5%
S&P/ASX 200 RESOURCESACCUMULATIONINDEX	-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.

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AMCIL LIMITED

ABN 57 073 990 735

- HALF YEAR REPORT 31 DECEMBER 2011

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COMPANY PARTICULARS

AMCIL Limited (“AMH”)

ABN 57 073 990 735

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

Directors: Bruce Teele, Chairman Ross Barker, Managing Director Peter Barnett Terry Campbell AO Rupert Myer AM Richard (Bob) Santamaria Stan Wallis AC Company Secretaries: Simon Pordage Andrew Porter Auditor: PricewaterhouseCoopers, Chartered Accountants Country of incorporation: Australia Registered office: Level 21 101 Collins Street Melbourne, Victoria 3000 Contact Details: Mail Address: GPO Box 2114, Melbourne, Victoria 3001 Telephone: (03) 9650 9911 Facsimile: (03) 9650 9100 Email: invest@amcil.com.au Internet address: 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 Limited Mail Address: GPO Box 2975, Melbourne, Victoria 3001 Yarra Falls, 452 Johnston Street, Abbotsford, Victoria 3067 AMH Shareholder enquiry line: 1300 653 916 +613 9415 4224 (from overseas) Facsimile: (03) 9473 2500 Internet: www.investorcentre.com/contact For all enquiries relating to shareholdings, dividends and related matters, please contact the share registrar as above.

Securities Exchange Code: AMH Ordinary shares

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DIRECTORS' REPORT

This report in relation to the half-year to 31 December 2011 is presented by the Directors of AMCIL Limited (‘the Company’) in accordance with a resolution of Directors.

Directors

The following persons were directors of the Company during the half-year and up to the date of this report:

• B.B. Teele (appointed December 2003)

• R.E. Barker (appointed May 1996)

• P.C. Barnett (appointed August 1996)

• T.A. Campbell AO (appointed May 1996)

• R.H. Myer AM (appointed January 2000)

• R.B. Santamaria (appointed August 1996)

• S.D.M. Wallis AC (appointed March 2004)

Company operations and results

Overview

Since 2003, the Company has been a thematic investor primarily in securities listed on the Australian Securities Exchange.

Performance Indicators and Outcomes

Reported profit after tax, which includes unrealised gains or losses from open options positions and puttable instruments in the investment portfolio was $4.9 million, down 2.2% from the previous corresponding period.

The net operating result, which excludes unrealised gains on the company’s investment in Hastings Diversified Utilities Fund, was $3.0 million for the six months ended 31 December 2011, down from $3.3 million last year, a decrease of 9.4%. 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. The net operating result for the six months was equivalent to 1.4 cents per share.

A key component of earnings was distributions from the companies in which we invest of $3.8 million. Of this amount, $2.6 million was from the receipt of fully franked dividends.

The portfolio return for the six months to December 2011 delivered a positive return of 0.5% compared to the broader S&P/ASX200 return of -9.7%.

The Board has decided not to declare an interim dividend.

Auditors’ independence declaration

A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 11.

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INCOME STATEMENT FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

INCOMESTATEMENT FOR THEHALF-YEARENDE	D31 DEC	EMBER201
Note Dividends and distributions Revenue from deposits and bank bills Total revenue Net gains/(losses) on trading portfolio Realised gains/(losses) from options written portfolio Other income Income from operating activities Finance costs Administration expenses Operating result before income tax expense Income tax credit/(expense) Net operating result for the half-year Net gains/(losses) on investments Net gains/(losses) on open options positions Deferred tax on net gains/losses on open options positions Net gains on puttable instruments Tax on net gains on puttable instruments Profit for the half-year Basic earnings per share7 ****Total Tax Expense	Half-year 2011 $’000 3,801 220 4,021 (536) - 7 3,492 (38) (656) 2,798 217 3,015 - - 2,734 (820) 1,914 4,929 Cents 2.36 Half-year 2011 $’000 603	Half-year 2010 $’000 3,723 65
		3,788 253 20 -
		4,061 (48) (601)
		3,412 (84)
		3,328 (11) 3 2,459 (738)
		1,713
		5,041
		Cents 2.56 Half-year 2010 $’000 819

This Income Statement should be read in conjunction with the accompanying notes.

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STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

Net Profit Other Comprehensive Income Unrealised gains/(losses) for the period on securities in the portfolio on 31 December (excl. puttable instruments) Deferred tax credit/(expense) on above Plus realised gains/(losses) for the period on securities Total Other Comprehensive Income1 **Total comprehensive income2 **	Half-Year to 31 December 2011 Revenue Capital Total $’000 $’000 $000 3,015 1,914 4,929 - (3,292) (3,292) - 1,299 1,299 - (1,776) (1,776) - (3,769) (3,769) 3,015 (1,855) 1,160	Half-Year to 31 December 2010 Revenue Capital Total $’000 $’000 $’000 3,328 1,713 5,041 - 13,632 13,632 - (4,681) (4,681) - 1,500 1,500
		- 10,451 10,451
		3,328 12,164 15,492

1 These are the net capital gains/(losses) not recorded through the Income Statement.

2 This is the company’s Net Return for the half-year, which includes the Net Operating Result plus the net realised and unrealised gains or losses on the Company’s investment portfolio and net gains/(losses) on open options positions.

This Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

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BALANCE SHEET AS AT 31 DECEMBER 2011

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

This Balance Sheet should be read in conjunction with the accompanying notes.

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STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

Half-Year to 31 December 2011 Note Total equity at the beginning of the half-year Dividends paid 6 Total transactions with share-holders Profit for the half-year Other Comprehensive Income for the half-year Net unrealised losses for the period for investments held at 31 December Net losses for the period on investments realised Other Comprehensive Income for the half-year Total equity at the end of the half-year	Share Capital $000 Revaluation Reserve $000 Retained Profits $’000 Total $’000 129,377 17,224 9,474 156,075 - - (7,318) (7,318)
	- - (7,318) (7,318) - 1,914 3,015 4,929 - (1,993) - (1,993) - (1,776) - (1,776)
	- (3,769) - (3,769)
	129,377 15,369 5,171 149,917

This Statement of Changes in Equity should be read in conjunction with the accompanying notes.

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STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2011 (CONT.)

Half-Year to 31 December 2010 Note Total equity at the beginning of the half-year Dividends paid 6 Shares issued - Dividend Reinvestment Plan Total transactions with share-holders Profit for the half-year Other Comprehensive Income for the half-year Net unrealised gains for the period for investments held at 31 December Net gains for the period on investments realised Transfer to Retained Profits of cumulative gains on investments realised Other Comprehensive Income for the half-year Total equity at the end of the half-year	Share Capital $000 Revaluation Reserve $000 Retained Profits $’000 Total $’000 120,447 11,500 2,835 134,782 - - (3,897) (3,897) 1,826 - - 1,826
	1,826 - (3,897) (2,071) - 1,721 3,320 5,041 - 8,951 - 8,951 - 1,500 - 1,500 - (1,450) 1,450 -
	- 9,001 1,450 10,451
	122,273 22,222 3,708 148,203

This Statement of Changes in Equity should be read in conjunction with the accompanying notes.

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CASH FLOW STATEMENT FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

CASHFLOWSTATEMENT FOR THEHALF-YE **DECEMBER2011 **	ARENDED31
Cash flows from operating activities Sales from trading portfolio Purchases for trading portfolio Interest received Proceeds from entering into options in options written portfolio Payment to close out options in options written portfolio Dividends and distributions received Administration expenses Finance costs paid Taxes paid Other receipts Net cash inflow/(outflow) from operating activities Cash flows from investing activities Sales from investment portfolio Purchases for investment portfolio Net cash inflow/(outflow) from investing activities Cash flows from financing activities Share issues under Dividend Reinvestment Plan Share issues transaction costs Dividends paid Net cash inflow/(outflow) from financing activities Net increase/(decrease) in cash held Cash at the beginning of the half-year Cash at the end of the half-year	Half-year 2011 $’000 INFLOWS/ (OUTFLOWS) 786 (300) 246 - - 3,138 3,870 (655) (43) (258) 7 2,921 15,892 (21,046) (5,154) - - (7,318) (7,318) (9,551) 14,029 4,478	Half-year 2010 $’000 INFLOWS/ (OUTFLOWS) 1,737 (1,787) 82 - (60) 3,037
		3,009 (594) (51) - -
		**2,364 **
		6,400 (10,613)
		(4,213)
		1,833 (7) (3,897)
		(2,071)
		(3,920) 4,955
		1,035

This Cash Flow Statement should be read in conjunction with the accompanying notes.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

1. Basis of preparation of half-year financial report

This general purpose half-year financial report has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001 .

This interim financial report does not include all the notes of the type normally included in an annual financial report. This report should be read in conjunction with the 2011 Annual Report and public announcements made by the Company during the half-year, in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

The Company has attempted to improve the transparency of its reporting by adopting ‘plain English’ where possible. Key ‘plain English’ phrases and their equivalent AASB terminology are as follows:

Phrase AASB Terminology Market Value Fair Value for Actively Traded Securities as quoted

on the ASX

2. Financial reporting by segments

The Company operates as a Listed Investment Company in Australia. It has no reportable business or geographic segments.

3. Trading portfolio

The Company enters into option contracts in the trading portfolio for the purpose of enhancing returns, offsetting risk or providing opportunities to acquire or sell securities at advantageous prices.

As at balance date there were call options outstanding which potentially required the Company, if they were exercised, to deliver securities to the value of $1.1 million (30 June 2011 : $Nil).

4. Deferred tax liabilities – investment portfolio

At balance date, the Company had unused losses on the sale of investments available to set-off against future capital gains of $5.7 million (30 June 2011: $4.1 million). During the half-year, $1.6 million of additional losses were incurred.

The Deferred Tax liability of $5.5 million (30 June 2011 : $6.0 million) is after the application of the unused losses noted above.

5. Shareholders’ equity – share capital

Movements in Share Capital of the Company during the half-year were as follows:

Date Details Notes 01/07/2011 Opening Balance 31/12/2011 Balance	Number of shares ’000 Paid-up Capital $’000 209,088 129,377 209,088 129,377

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i The Company’ Dividend Reinvestment Plan was suspended for the 2011 dividend.

6. Dividends	Half-year	Half-year
	2011	2010
	$’000	$’000
Dividends provided for or paid during the period	7,318	3,897
	(3.5 cents	(2 cents per
	per share)	share)
7. Earnings per Share	Half-year 2011	Half-year 2011
	Number	Number
Weighted average number of ordinary shares used as the	209,088,358	196,961,840
denominator
Basic earnings per share
	$’000	$’000
Profit for the half-year	4,929	5,041
	Cents	Cents
Basic earnings per share	2.36	2.56
Net operating result before net gains on investments per
share
	$’000	$’000
Net operating result for the half-year	3,015	3,328
	Cents	Cents
Net operating result per share	1.44	1.69

Dilution

As there are no options, convertible notes or other dilutive instruments on issue, diluted net profit per share is the same as basic net profit per share. This similarly applies to diluted net operating result before net gains on investments per share.

8. Events subsequent to balance date

Since 31 December 2011 to the date of this report there has been no event of which the Directors are aware which has had a material effect on the Company or its financial position.

9. Contingencies

At balance date Directors are not aware of any material contingent liabilities or contingent assets other than those already disclosed elsewhere in the financial report.

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