ELDERS LIMITED — Annual Report 2007

Aug 8, 2007

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9 August 2007

Company Announcements Office Australian Stock Exchange

Futuris lifts profit 15% to set new benchmark

Appendix 4E for the period ending 30 June 2007, including press release and discussion & analysis of the Company’s results.

Sonya Furey Company Secretary

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Level 6, 27 Currie Street, Adelaide, SA 5000 GPO Box 551 Adelaide SA 5001 Telephone: (08) 8425 4999 Facsimile: (08) 8410 1597 Futuris Corporation Limited A.B.N. 34 004 336 636

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9 August 2007

Company Announcements Office Australian Stock Exchange

Futuris lifts profit 15% to set new benchmark

• Sales revenue 4% lower

• Underlying EBIT up 5%

• Underlying profit after tax up 15%, exceeds $100m for first time

• Reported profit of $100.7 million

• Fourth successive double digit growth in Underlying NPAT

• Final dividend increased

Futuris has announced its highest ever underlying profit result and an increased final dividend with the release today of its financial results for the 12 months to 30 June 2007.

The financial results were released with the following announcement by Company Chairman Stephen Gerlach:

“ Futuris Corporation has reported significant increase in both its reported and underlying profit for the 2007 financial year. The Company has recorded underlying profit after tax of $101.7 million, 15% higher than the previous year’s underlying profit of $88.3 million.

“After inclusion of non-recurring items totalling a loss of $1.0 million after tax, Futuris’ Reported Profit to shareholders was $100.7 million, compared with $87.4 million in 2006.

Underlying earnings per share rose by 6% to 14.00 cents compared with 13.18 cents in 2006.

“The increased profit was earned from slightly lower sales revenue for the year of $3.22 billion, 4% lower than the 2006 sales of $3.36 billion.

“Directors have increased the final dividend by 10% to 5.5 cents per share, fully franked. The total dividend for the year has been increased by 6% to 9.5 cents per share, fully franked compared with 9.0 cents per share in 2006 .”

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Level 6, 27 Currie Street, Adelaide, SA 5000 GPO Box 551 Adelaide SA 5001 Telephone: (08) 8425 4999 Facsimile: (08) 8410 1597 Futuris Corporation Limited A.B.N. 34 004 336 636

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Chief Executive Les Wozniczka said that 2007 had proven to be one of the most significant years in Company history.

“The Company achieved an underlying profit exceeding $100 million for the first time, secured the basis to become a lead player in rural and regional telecommunications and all but completed the transition in its asset base towards the rural and regional sector. “

Mr Wozniczka noted that the record profit had been set despite 10 months of extremely difficult conditions in rural markets.

“The results achieved show the parts of Elders business subject to seasonal exposure are stronger than ever while our Forestry and Financial services businesses have continued to generate growth.”

Futuris generated underlying EBIT of $164.7 million which compares to $157.1 million in 2006. Underlying profit before tax rose by 6% to be $124.6 million compared with $118.2 million in the previous year. A 70% reduction in minority interests due to the takeover of ITC assisted Futuris to translate 5% pre-tax profit growth into a 15% increase in profit to shareholders.

Financial Services, Forestry and Property operations all contributed higher earnings, enabling Futuris to offset a drop in earnings from Rural Services, Australian Agricultural

“Elders results highlight the progress the business has made and how its vulnerability to drought has been substantially reduced.

“EBIT generated by Elders in 2007 (comprising Elders Rural Services and Elders Financial Services) was only 3% below that recorded in 2006, this is only a fraction of the 28% drop experienced in 2003 because of the progress that has been made in just about every part of Elders.”

Elders Rural Services

Elders Rural Services contributed EBIT of $49.1 million compared with $51.9 million in 2006, with the movement being attributable to lower earnings from drought-affected merchandise and meat and livestock operations. Operations with lower exposure to seasonal conditions, such as wool, real estate and financial services distribution increased their contribution.

Mr Wozniczka said Elders Rural Services results had shown the capacity of the business in both poor and good seasonal conditions.

“Rural Services earnings for the year are the product of 10 months of drought-affected trading, followed by an exceptionally strong turnaround in the closing months.

“The good seasonal break recorded across most agricultural regions in May and June transformed the rural economy. Elders achieved record monthly merchandise sales, demonstrating its potential in more typical seasons and the benefit of the work put into the business in recent years. The achievement of merchandise sales of $1.04 billion for the year ($1.11 billion in 2006) is an outstanding result given the conditions.”

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“Unfortunately, the results of two months good trading were not enough to fully recover the business lost in the first 10 months of the year. But Elders Rural Services, and the large majority of its client base, have entered the new financial year with positive sentiment and momentum due to the improved seasonal conditions.”

Agriculture producing associates

The rural services segment result also included equity accounted income from associates engaged in agricultural production, being Australian Agricultural Company (43% interest) and Webster Limited (26.9%). These interests contributed equity accounted income of $7.2 million, down from $7.8 million in 2006 due to a lower contribution from AACo as a result of unfavourable mark to market at balance date.

Elders Financial Services

Elders Financial Services increased its underlying EBIT contribution from $26.9 million to $27.2 million. Profit share from Elders Rural Bank rose 15% to $17.9 million, and the bank grew its loan book by 14% to $3.2 billion.

EBIT generated by Elders Insurance operations was $12.0 million after absorbing distribution costs of $6 million introduced in 2007 to recognise service provision by Elders Rural Services. On a like-for-like basis, Elders Insurance recorded strong earnings growth.

“The performance of Elders Rural Bank and Elders Insurance has highlighted the effectiveness of its financial services business model” said Les Wozniczka. “Both have achieved favourable results given the industry conditions.

“ERB has maintained outstanding credit quality with net non-performing loans being maintained at 0.4%. Elders Insurance has benefited from lower claims incidence and its 4% growth in gross written premium shows the strength of its local presence, local service model.”

Forestry

Forestry was the largest contributor to Futuris’ higher profit. Integrated Tree Cropping (ITC) lifted its underlying EBIT contribution by 43% to $56.9 million. ITC achieved improvement in all aspects of its business with higher earnings from plantation establishment and management, increased Managed Investment Scheme sales and financial and operational improvement from timber processing operations.

“2007 was the first full financial year for ITC’s new management team. The businesses performance is showing the benefits of initiatives that have been taken. The reform of timber processing operations, the expansion of the plantation estate and the growing appreciation of its carbon management value are all expected to support further advance by ITC.”

Futuris Automotive operations reported lower earnings due to reduced demand in Australia and a smaller contribution from associate Global Thermal Systems.

Property development operations, which were divested in May 2007, contributed underlying EBIT of $21.5 million compared with $18.2 million in 2006. Profit on sale of the property operations has been recognised as a significant non-recurring item and excluded from underlying profit.

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Mr Wozniczka said that the sale of the property development operations meant that rural and regional assets accounted for approximately 95% of the Company’s earnings. The selection of the Optus-Elders (OPEL) joint venture to build and operate Australia’s rural and regional broadband network will further increase the Company’s involvement in the rural and regional sector.

Telecommunications

“OPEL will provide the foundation for a new earnings stream which we expect will, with associated interests, prove to be as significant an earnings contributor for Futuris as our other business streams in rural services, forestry and financial services.”

The interest in the OPEL wholesale broadband business is supplemented by Futuris interest in Amcom Telecommunications. Futuris increased its shareholding in Amcom to 49.1% during the year.

Outlook

Mr Wozniczka said that the Company’s strong finish to the 2007 financial year and the improved seasonal conditions had given Futuris good momentum into the new financial year. Subject to seasonal conditions and balance date mark to market adjustments, the Company was anticipating an underlying net profit to shareholders in FY08 within the range of current market expectations.

9 August 2007

Further comment: Les Wozniczka 08 8425 4999 Further information: Don Murchland 0439 300 932

4

Discussion and Analysis of 2007 Financial Results Results for the twelve months ended 30 June 2007

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Financial results

1. Profit

Futuris Corporation has recorded an Underlying Profit to Shareholders of $101.7 million for the 2007 financial year, 15% higher than the corresponding result of $88.3 million.

FY2007 Profit1: Underlying and Reported	FY2007 Profit1: Underlying and Reported
$ million Profit to shareholders Minority interests Tax Profit before tax Net interest EBIT Earnings per share (basic) Earnings per share (diluted)	Underlying Profit Change FY07 FY06 % 101.7 88.3 +15% 2.8 9.0 -70% 20.1 20.9 -4% 124.7 118.2 +6% 40.0 39.0 +3% 164.7 157.1 +5% 14.00 13.18 +6% 13.07 12.93 +1%		Reported Profit Change FY07 FY06 %
			100.7 87.4 +15% 2.8 9.0 -70% 20.5 21.4 -4% 124.0 117.9 +6% 40.0 39.0 +3% 164.1 156.8 +6% 13.86 13.06 +6% 12.95 12.82 +1%

The underlying profit to shareholders incorporates non-recurring items totalling $1.0 million after tax, which are summarised in the table below and discussed on the following page. Inclusive of these items, Futuris’ Reported Profit to Shareholders was $100.7 million. In comparison, the 2006 Reported Profit of $87.4 million was unfavourably affected by non-recurring items totalling $0.9 million after tax.

Profit attributable to minority interests was 70% lower than in 2006 due to the takeover of ITC minority interests at the start of the 2007 financial year.

Calculation of underlying profit
	EBIT Profit before tax Profit after tax and OEI FY07 FY06 FY07 FY06 FY07 FY06
$ Million Reported Non-recurring items: Sale of Property Development OPEL bid costs and start-up 2006 non-recurring items
	164.1 156.8 124.0 117.9 100.7 87.4 8.9 - 8.9 - 5.7 - (9.5) - (9.5) - (6.7) - 0.3 0.3 0.9
Adjustments for underlying profit	0.6 0.6 1.0
Underlying result	164.7 157.1 124.7 118.2 101.7 88.3

1 Inclusive of Continuing and Discontinuing Operations of Futuris

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Movement in underlying profit before tax

Underlying profit before tax rose 6% to be $124.7 million, compared with $118.2 million in the previous year.

As set out in the table below, this profit growth is attributable to increased profit generation by Forestry, Property operations and Financial Services. Discussion of these individual financial results follows under the heading “Review of Operations.”

Factors in PBT growth
2006 underlying profit before tax$ million 118.2
change in underlying PBT between FY2006 and FY2007: Integrated Tree Cropping (ITC) EBIT + 17.0 Elders (as follows:) Elders Rural Services EBIT -2.8 Elders Financial Services EBIT +0.3 Elders Insurance Interest +0.6 Total Elders - 1.9 AACo/Webster (Agricultural producing associates) -0.6 Property EBIT + 3.2 Investment and other EBIT Automotive -11.1 Other Investment & Other 1.6 Total investment & other -9.5 Net interest (excluding insurance interest) -1.7
2007 underlying profit before tax 124.7

Non-recurring items

The 2007 reported profit includes a number of non-recurring items which total a loss of $0.6 million before tax. These items include:

• Profit before tax of $8.9 million on the sale of the Company’s property development operations, which were divested during the period. The gain on sale does not incorporate profit to be earned pending the completion of contractual conditions anticipated in the 2008 financial year or shortly thereafter.

• One-off costs and charges of $9.5 million incurred by Elders in the preparation of the successful Optus Elders (OPEL) joint venture bid for Federal Government funding to build Australia’s rural and regional broadband network.

The 2006 result included a non-recurring charge totalling $0.9 million after tax, comprising gains arising from the acquisition of a shareholding in HiFert and restructuring and redundancy costs.

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Revenue and expenses

Significant revenue and expense outcomes for the year include:

Sales revenue declined by 4% to be $3,222.9 million ($3,355.8 million in 2006). The reduction is due to lower sales from Elders Rural Services, Property (due to divestiture) and automotive operations.

Income contribution from associates and joint ventures rose at the underlying level from $38.8 million to $41.2 million, with the former excluding the non-recurring gain of $10.4 million the increase in shareholding in HiFert. The increase in underlying equity-accounted income is the result of increased earnings by Elders Rural Bank, Australian Wool Handlers, Forest Enterprises Australia (FEA) and Webster Limited.

Borrowing costs net of interest received rose from $39.0 million to $40.0 million due to higher average interest rates.

Depreciation and amortisation charge was largely unchanged at $37.6 million compared with $36.7 million. Increased depreciation by Forestry and the since divested Property operations was offset by lower depreciation and amortisation by Futuris Automotive and Elders.

2. Dividend

Directors have declared an increased final dividend. A final dividend of 5.5 cents per share, fully franked will be payed on 24 October 2007, to shareholders registered in the books of the Company as at 8 October 2007. Total dividend for the year will be 9.5 cents per share fully franked, 6% higher than the 2006 total dividend of 9 cents per share.

The 2007 total dividend represents a distribution to shareholders of $64.7million compared with $59.9 million in 2006.

3. Cash Flow

Operating activities generated net cash flows of $85.0 million in 2007 compared with $127.4 million. Lower operating cash flow from Rural Services and Automotive due to lower sales activity was responsible for the reduction. All divisions, with the exception of the Property operations generated positive operating cash flow.

Cash of $190.8 million was applied to investing activities during the year with property plant and equipment ($105.1 million) and investments ($77.0 million) being the principal applications. Forestry ($63.2 million, largely being for land and processing assets) and Elders ($27.0 million) were the major targets of capital expenditure activity. Payment for investments of $77.0 million included subscription to FEA rights, capital contribution to Elders Rural Bank, investment in the Chery Joint venture and investments in aquaculture interests. Payment for ITC minorities resulted in a cash outflow of $136.2 million. Proceeds from the sale of property development operations resulted in an inflow of $121.0 million.

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4. Statement of financial position

Balance sheet
$ million (unless otherwise indicated) as at: Shareholders’ equity Cash Borrowings Net debt Gearing# (%) NTA per share_($)_	30 June 2007 31 Dec 2006 30 June 2006
	1,186.5 1,144.8 1,227.9 244.3 263.1 537.5 609.2 953.2 739.5 364.9 690.1 202.0 24% 38% 14% 1.21 1.03 1.17**

• *Includes insurance reserves of $183.2 million and cash held in trust of $0.6 million

• ($171.5 million & cash held in trust of $11.0 million as at 30 June ’06)

• Calculated as net debt/net debt+ shareholders’ equity

• ** Comprises interest bearing debt of $568.7 million and financial instruments on debt.

Futuris completed the year with lower borrowings and a moderately geared balance sheet despite the year’s seasonal conditions resulting in lower cash balances than has been customary.

Borrowings of $609.2 million were 18% lower than at the beginning of the year. Borrowings include $40.5 million arising from financial instruments on debt.

Net debt rose from $202.0 million to $364.9 million as a result of lower cash balances than at the previous year. Cash at year end was $244.3 million, compared with $537.5 million at 30 June 2006, with the latter figure including funds of $136.2 million being held at the time for payment for ITC minority shareholdings in July 2006.

Gearing was 24% at 30 June, higher than the corresponding figure of 14% at 30 June 2006 due to the lower gearing and the reduction to shareholders equity made by the $85.9 million adjustment made to bring the carrying value of AACO into line with Futuris land valuation policies (discussed below).

Year-end cash includes insurance reserves and cash held in trust totalling $183.2 million. If this restricted cash is excluded, net debt at year-end would be $548.1 million and gearing 35%. Significant movements in the balance sheet during the year included:

• Current inventories were $358.0 million were 21% lower due to the divestment of property development operations. Non-current inventories were also reduced by the divestment.

• Investments accounted for using the equity method declined from $598.8 million to $576.2 million. During the year accounting adjustments of ($85.9) million were made to align recognition of AACo land revaluations within Futuris group policy. Under the Group’s accounting policy, land used for carrying on a business is reported at cost whereas AACo policy revalues land to market value. The major increments to investments accounted for using the equity method were from reinvestment within Elders Rural Bank; investment in Aqa Oysters.

• Other financial assets rose from $5.7 million to $38.7 million, with investments in Aspen Property Trust (made as part of the property divestment) and Clean Seas Tuna being the major factors.

• Property, plant and equipment rose by 11%, with the increments attributable to Elders and ITC.

• Investment properties rose from $192.6 million to $248.3 million, largely due to expansion of ITC’s estate.

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Review of operations

Rural Services

Rural services segment result reported in the Preliminary Final Report Appendix 4E comprises results from Elders Rural Services, Elders Financial Services, and equity accounted income from associates engaged in agricultural production (Australian Agricultural Company and Webster) . These component elements are discussed separately below.

Elders

The 2007 results are the first annual accounts since the restructuring of Elders management and reporting around the Elders Rural Services and Elders Financial Services business units. As detailed below, earnings performance of the two business units is being reported separately within the Elders result.

It should be noted that the financial reporting incorporates revisions to cost allocation made to recognise Financial Services as a separate business unit and to reflect the distribution function performed by Elders Rural Services.

As discussed further in the commentary on Elders Financial Services results, these changes essentially affect the financial results from Insurance operations, which are now fully costed. The revised allocations do not affect the quantum of earnings reported by Elders in aggregate.

Elders Financial Results
$ million, six months to 31 December Sales Revenue Other Revenue Underlying EBIT	Elders total 2007 2006	Elders Rural Services2 2007 2006		Elders Financial Services 2007 2006
	2507.9 2550.2 47.2 47.3 76.3 78.8	2,303.9 34.9 49.1	2364.5 36.6 51.9	204.0 12.3 27.2	185.7 10.7 26.9
Non-recurringitems	- 6.1	- 6.1		-	-
EBIT Reported	76.3 84.9	49.1	58.0	27.2	26.9
Insurance investment interest	12.3 11.6 12.3				11.6

Elders recorded underlying EBIT of $76.3 million in 2007 compared with $78.8 million in the previous year. The 3.2% movement in underlying EBIT is accounted for by:

• a $2.8 million reduction in underlying EBIT generated by Elders Rural Services operations (see discussion below)

• a $0.3 million increase from Elders Financial Services

Elders insurance operations contributed a further $12.3 million to profit before tax through interest income ($11.6 million in 2006).

2 Does not include equity accounted income from Webster or Australian Agricultural Company.

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Elders Rural Services:

Underlying EBIT generated by Elders Rural Services was $49.1 million, 5% lower than its 2006 underlying EBIT of $51.9 million. Increased income contributions from Wool, Real Estate and Financial Services Distribution were more than offset by reduced contribution from Merchandise and Livestock operations, and a lower equity accounted contribution from HiFert.

Elders Rural Services generated sales revenue of $2,303.9 million in 2007 compared with $2,364.5 million in the previous year. The reduction is due to lower merchandise sales arising from the drought conditions and wool operations.

Individual product areas trading result are summarised as follows:

• Merchandise : Elders’ sales of merchandise fell by 7% to $1,039 million, due to the contraction in farm expenditure on agricultural chemicals, fertiliser, seed and general merchandise caused by drought conditions.

• Wool operations increased their contribution from lower sales. Income from wool operations benefited from higher prices, increased sales volumes and generally stronger market conditions.

• Meat and Livestock recorded a lower contribution due to the impact of drought. The average cattle price for the year was 12% lower than in the previous corresponding period while the average sheep price was 13% lower. Feedlots increased their contribution but other supply chain initiatives were unfavourably affected by market conditions and the strengthening Australian dollar.

• Grain: Elders is steadily building its grains business as deregulation progresses across Australia and across different grain sectors. Grain operations generated sales revenue of $176 million compared with $123 million in 2006.

• Real Estate: Elders Real Estate increased its contribution. Real Estate operations increased sales revenue by 14% to $88.3 million through higher residential sales and increased property management revenue. Revenue from broadacre sales was lower than in the previous years due to lower activity levels.

• Financial products distribution generated revenue of $39.0 million compared with $36.2 million in the previous year.

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Elders Financial Services

Elders Financial Services contributed underlying EBIT of $27.2 million compared with $26.9 million in the previous year. The movement is the result of another year of strong growth by Elders Rural Bank, offset in part by the reduction to EBIT from Insurance due to the introduction of distribution costs not borne in the previous financial year, as noted above and detailed below.

Individual product areas trading result are summarised as follows:

• Banking: Elders Rural Bank, (a 50/50 joint venture with Bendigo Bank) contributed equity accounted profit of $17.9 million compared with $15.5 million. The bank continued to grow, achieving a 13% rise in profit, and increasing gross loans by 14% to $3.2 billion from $2.8 billion. Credit quality remained good despite the difficult seasonal conditions, with the ratio of net non-performing loans being 0.36% compared with 0.29% in 2006.

• I nsurance: Insurance operations reported underlying EBIT of $12.0 million compared with $14.2 million in 2006. However, once the introduction of distribution fees ($6 million in FY2007, nil in FY2006) is considered, it is apparent the insurance operations achieved strong underlying improvement. Gross Written Premium rose 4% from $413.0 million to $427.8 million and loss ratios improved due to lower claims.

Both the 2006 and 2007 results incorporate a share of Elders corporate costs and overheads.

Agricultural producing Associates

Australian Agricultural Company (43% interest) contributed equity accounted income of $5.2 million in 2007, compared with $6.1 million. The reduction is due to an unfavourable mark-tomarket at balance date. Webster Limited (26.9% interest) increased its equity accounted contribution from $1.8 million to $2.0 million.

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Forestry

Forestry
Forestry financial results
$ million 2007 2006 Total Revenue 200.8 168.6 Underlying EBITDA 61.9 43.5 Depreciation & Amortisation 5.0 3.6 Underlying EBIT ITC 50.5 34.4 FEA (Equity Acc) 6.4 5.5
Underlying EBIT 56.9 39.9
Non-recurring items - - ReportedEBIT 56.9 39.9

ITC’s underlying EBIT rose by 43% in 2007 due to higher MIS sales, property valuation gains and improved performance by processing operations and increased income from Forest Enterprises Australia (FEA). ITC holds a 30.7% interest in FEA, which is equity accounted.

Total revenue of $200.8 million was 19% higher than in 2006, with both plantation (ITC Forests) and processing operations (ITC Timber) generating higher sales compared with the previous year. ITC’s 2007 MIS product offering achieved sales of $61.5 million, 30% higher than the 2006 sales of $47.2 million. Fifty-six per cent, or $34.6 million, of the 2007 sales have been carried over to future years.

Income from equity accounting of ITC’s share of FEA’s profit rose from $5.5 million to $6.4 million.

ITC maintained a high level of capital expenditure, as it built its plantation estate and associated infrastructure. In 2007, ITC invested net cash of $61.6 million on property plant and equipment, principally being plantation land. As at 30 June, ITC’s estate and area under management totalled 160,000 hectares compared with 151,000 at the beginning of the year. A further 12,700 hectares will be established on behalf of investors in ITC’s 2007 MIS projects.

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Automotive

Automotive
Automotive Financial Results	12 months to 30 June:
$ million 2007 2006 Sales 389.0 457.2 Underlying EBITDA 26.8 40.3 Depreciation & Amortisation 17.0 19.5
EBIT: Futuris Automotive 11.0 16.1 Associates (equity acc) (1.3) 4.7
Underlying EBIT 9.7 20.8
Non-recurring items - (4.5) ReportedEBIT 9.7 16.3

Futuris Automotive recorded lower sales revenue in 2007 than the previous year due to the transfer of Rail and Bus reporting (which contributed sales of $66 million in 2006) and reduced demand from Australian passenger vehicle producers.

Sales revenue from Interior Systems fell by 15% as a result. EBIT from Interior systems operations was also adversely affected by the costs of restructuring conducted during the year to achieve efficiency by consolidating plant.

Equity accounted associates (which includes Global Thermal and Futuris Automotive Interiors (Anhui)) contributed a loss of $1.3 million.

3. Outlook

Futuris anticipates increasing its underlying profit in 2008. As is typical for the Company , the timing of profit emergence is expected to be weighted towards the second half of the financial year. This timing reflects rural expenditure patterns and MIS activity.

The Company’s earnings expectation for 2008 is for an underlying profit to shareholders that falls within the range of current market expectations.

This expectation is subject to the achievement of normal seasonal conditions, and no material mark to market adjustments at balance date.

9 August 2007

Further comment Further information: Les Wozniczka Tel: 08 8425 4999 Don Murchland 0439 300 932 Chief Executive Officer Investor Relations Manager

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FUTURIS CORPORATION LIMITED ABN 34 004 336 636

PRELIMINARY FINAL REPORT APPENDIX 4E

30 JUNE 2007

PRELIMINARY FINAL REPORT RESULTS FOR ANNOUNCEMENT TO THE MARKET FINANCIAL YEAR ENDED 30 JUNE 2007

				$000
Revenues from continuing operations*	down	2.0%	to	3,178,435
Profit from underlying continuing operations after tax
attributable to members	up	15.3%	to	85,876
Profit from continuing operations after tax attributable to
members	up	7.4%	to	79,180
Profit from discontinued operations and gain on disposal of	up	56.7%	to	21,535
discontinued operations after tax
Net underlying profit for the year attributable to members	up	15.3%	to	101,762
Net profit for the year attributable to members	up	15.2%	to	100,715
Dividends	Amount per security		Franked amount
				per security
Final dividend		5.5¢		5.5¢
Previous corresponding period		5¢		5¢
Record date for determining entitlements to the dividend				8 October 2007

• Revenues from continuing operations comprises:

Sales revenue Other revenues from continuing operations Interest revenue Total	2007 $’000 3,085,191 73,353 19,891 3,178,435	2006 $’000 3,176,844 49,070 20,210
		3,246,124

1

FUTURIS CORPORATION LIMITED CONSOLIDATED INCOME STATEMENT YEAR ENDED 30 JUNE 2007

Note Continuing operations Sales revenue 3 Cost of sales Other revenues Other expenses 3 Share of net profits of associates and joint ventures accounted for using the equity method 6 Profit on sale of non current assets 3 Profit before net borrowing costs and tax expense Interest revenue Borrowing costs Profit from continuing operations before tax expense Income tax expense Net profit from continuing operations after tax expense 10 Net profit of discontinued operations and gain on disposal of discontinued operations, net of tax 10 Profit for the year Net profit attributable to minority interest Net profit attributable to members of the parent entity Underlying Operations Basic earnings per share (cents per share) Diluted earnings per share (cents per share) Reported Operations Basic earnings per share (cents per share) Diluted earnings per share (cents per share) Continuing Operations Basic earnings per share (cents per share) Diluted earnings per share (cents per share)	2007 2006 $000 $000 3,085,191 3,176,844 (2,278,243) (2,347,090) 73,353 49,070 (794,067) (797,421) 41,205 49,187 6,218 7,273
	133,657 137,863 19,891 20,210 (59,989) (59,171)
	93,559 98,902 (11,610) (16,234)
	81,949 82,668 21,535 13,747
	103,484 96,415
	(2,769) (8,976)
	100,715 87,439
	14.00¢ 13.18¢ 13.07¢ 12.93¢ 13.86¢ 13.06¢ 12.95¢ 12.82¢ 10.90¢ 11.01¢ 10.43¢ 11.02¢

The accompanying notes form an integral part of this income statement.

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FUTURIS CORPORATION LIMITED CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2007

FUTURIS CORPORATION LIMITED CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2007
Note CURRENT ASSETS Cash and cash equivalents Trade and other receivables Livestock Inventories Financial instruments Held for trading financial assets Other TOTAL CURRENT ASSETS NON CURRENT ASSETS Trade and other receivables Forestry Inventories Other financial assets Investments accounted for using the equity method Property, plant and equipment Investment properties Intangibles Deferred tax assets Other (including design and development) TOTAL NON CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Interest bearing loans and borrowings Current tax payable Financial instruments Provisions TOTAL CURRENT LIABILITIES NON CURRENT LIABILITIES Interest bearing loans and borrowings Deferred tax liabilities Provisions TOTAL NON CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity 5 Convertible notes Hybrid equity 5 Reserves Retained earnings TOTAL PARENT ENTITY INTEREST IN EQUITY Minority interests TOTAL EQUITY	2007 2006 $000 $000 244,310 537,521 665,237 594,566 55,121 71,898 357,978 451,454 3,031 5,096 - 20,341 112,581 107,574
	1,438,258 1,788,450
	158,538 153,647 21,421 17,164 1,638 33,814 38,736 5,662 576,150 598,819 220,448 198,345 248,257 192,591 288,323 270,641 79,813 76,675 26,853 25,646
	1,660,177 1,573,004
	3,098,435 3,361,454
	889,567 985,757 214,204 235,413 61,341 26,100 41,731 30,881 204,455 193,231
	1,411,298 1,471,382
	354,466 474,962 57,865 102,441 88,309 84,744
	500,640 662,147
	1,911,938 2,133,529
	1,186,497 1,227,925
	608,493 577,717 54,263 57,384 145,151 145,151 (22,408) 63,843 392,959 371,367
	1,178,458 1,215,462 8,039 12,463
	1,186,497 1,227,925

The accompanying notes form an integral part of this balance sheet.

3

FUTURIS CORPORATION LIMITED CONSOLIDATED CASH FLOW STATEMENT YEAR ENDED 30 JUNE 2007

Note CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Dividends received Interest received Interest and other costs of finance paid GST paid (net) Income taxes refunded (paid) Other operating inflows Net operating cash flows CASH FLOWS FROM INVESTING ACTIVITIES Payment for property, plant and equipment Payment for investments Payment for design and development capitalised Proceeds from sale of property, plant and equipment Proceeds from sale of investments Loans to associated entities Repayment of loans by associated entities Loans to growers Loans repaid by growers Loans to employees Payment for outside equity interests in controlled entity Payment for controlled entity (net of cash acquired) Proceeds from disposal of controlled entity 10 Net investing cash flows CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares and other equity, net of costs Proceeds from borrowings Repayment of borrowings Principal repayments of lease liabilities Proceeds from leasing Dividends paid Proceeds from issue of shares by controlled entity (net) Net financing cash flows Net increase/(decrease) in cash held Cash at the beginning of the financial year Cash at the end of the financial year	2007 $000 2006 $000 8,858,049 8,876,564 (8,785,525) (8,727,061) 33,843 26,276 19,965 20,210 (59,989) (60,110) (18,580) (11,690) 4,915 (22,531) 32,347 25,698
	85,025 127,356
	(105,147) (137,689) (77,013) (70,324) (6,252) (7,385) 9,921 29,168 26,642 2,647 (22,932) (26,924) 597 - (4,909) (2,811) 3,567 20,233 - (10,991) (136,222) (42,659) - (5,416) 120,959 1,556
	(190,789) (250,595)
	2,570 265,762 95,904 175,269 (212,042) (92,568) (2,784) (1,763) 636 3,521 (71,731) (69,457) - 14,193
	(187,447) 294,957
	(293,211) 171,718 537,521 365,803
	244,310 537,521

The accompanying notes form an integral part of this cash flow statement.

4

FUTURIS CORPORATION LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY YEAR ENDED 30 JUNE 2007

($000) As at 1 July 2006 Currency translation differences Cash flow hedge reserve Acquisition of minority interests in controlled entity Partnership profits Total income and expense for the period recognized directly in equity Profit for year Total income and expense for the period Attributable to: Equity holders of the parent Minority Interest Equity Transactions: Issue of share capital, employee share plan Exercise of options Cost of share based payments Shares vested to employees (net) Scrip consideration Dividend Reinvestment Plan Dividends to shareholders Hybrid Equity Distribution Convertible notes converted Fair value revaluations of associate’s land and buildings (Note 2) Recognition of share of reserve for losses in associate As at 30 June 2007	Issued Capital Convertible Notes Reserves Hybrid Equity Retained Earnings Minority Interest Total Equity 577,717 57,384 63,843 145,151 371,367 12,463 1,227,925
	- - (4,151) - - - (4,151) - - 2,140 - - - 2,140 - - - - - (5,273) (5,273) - - - - - (1,920) (1,920)
	- - (2,011) - - (7,193) (9,204) - - - - 100,715 2,769 103,484
	- - (2,011) - 100,715 (4,424) 94,280 91,511 2,769
	11,542 - - - - - 11,542 2,571 - - - - - 2,571 - - 3,726 - - - 3,726 - - (6,937) - - - (6,937) 2,984 - - - - - 2,984 5,793 - - - - - 5,793 - - - - (65,393) - (65,393) - - - - (8,879) - (8,879) 7,886 (3,121) - - - - 4,765 - - (85,880) - - - (85,880) - - 4,851 - (4,851) - -
	608,493 54,263 (22,408) 145,151 392,959 8,039 1,186,497

The accompanying notes form an integral part of this statement of changes in equity.

5

FUTURIS CORPORATION LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED) YEAR ENDED 30 JUNE 2007

($000) As at 1 July 2005 Currency translation differences Cash flow hedge reserve Partnership profits Total income and expenses for the period recognized directly in equity Profit for year Total income and expense for the period Attributable to: Equity holders of the parent Minority interest Equity transactions: Issue of share capital Exercise of options Cost of share based payments Shares vested to employees (net) Share placement Share placement direct costs Issue of Hybrid Equity Hybrid equity direct costs Scrip consideration Dividend Reinvestment Plan Dividends to shareholders Hybrid Equity Distribution Fair value revaluations of associate’s land and buildings Fair value revaluations of livestock carrier Convertible notes reissued Acquisition of minority interests in controlled entity Recognition of share of reserve for losses in associate As at 30 June 2006	Issued Capital Convertible Notes Reserves Hybrid Equity Retained Earnings Minority Interest Total Equity 454,420 54,576 46,616 - 355,081 121,627 1,032,320
	- - 3,670 - - - 3,670 - - (5,396) - - - (5,396) - - - - - 1,288 1,288
	- - (1,726) - - 1,288 (438) - - - - 87,439 8,976 96,415
	- - (1,726) - 87,439 10,264 95,977 87,001 8,976
	- - - - - 14,193 14,193 5,646 - - - - - 5,646 - - 5,035 - - - 5,035 - - (5,059) - - - (5,059) 112,000 - - - - - 112,000 (2,729) - - - - - (2,729) - - - 150,000 - - 150,000 - - - (4,849) - - (4,849) 5,694 - - - - - 5,694 2,686 - - - - - 2,686 - - - - (70,307) - (70,307) - - - - (1,836) - (1,836) - - 24,237 - - - 24,237 - - (4,270) - - - (4,270) - 2,808 - - - - 2,808 - - - - - (133,621) (133,621) - - (990) - 990 - -
	577,717 57,384 63,843 145,151 371,367 12,463 1,227,925

The accompanying notes form an integral part of this statement of changes in equity.

6

FUTURIS CORPORATION LIMITED NOTES TO THE PRELIMINARY FINAL REPORT YEAR ENDED 30 JUNE 2007

NOTE 1. BASIS OF PREPARATION

This report has been prepared in accordance with the Corporations Act 2001, Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board and other mandatory professional reporting requirements. This report is based on financial statements that are in the process of being audited.

NOTE 2. CHANGES IN ACCOUNTING POLICIES

The accounting policies and disclosures are consistent with those of the previous financial year, except for the following change:

Change in recognition of land

To 30 June 2006, land revaluations recognised by Australian Agricultural Company Limited (AA Co), an associate, were also recognised by Futuris, through Futuris taking up its percentage ownership share of the revaluations through the Asset Revaluation Reserve. From 1 July 2006, Futuris has revised its land valuation policy, whereby all land that is used for the purposes of production or supply of goods is recognised at cost. Therefore in the Futuris accounts, adjustments have been made to the value reported by AA Co for land revaluations. Accordingly, asset revaluations made by AA Co will no longer be taken up by Futuris and all revaluations previously taken up, will be reversed. The effect is a reduction in the Asset Revaluation Reserve of $85,880,000, a reduction in the Deferred Tax Liability balance of $36,806,000 and a reduction in the investment in AA Co of $122,686,000. Prior year comparatives have not been restated.

As a result of this adjustment there is no change to reported net income.

NOTE 3. REVENUE AND EXPENSES Note Sales revenue: Continuing operations: Sale of goods Commission and other selling charges Construction contract revenue Insurance premium revenue Other sales related income Discontinued operations:_10 Other expenses: _Continuing operations: Distribution expenses Marketing expenses Occupancy expenses Administrative expenses Insurance claims & related expenses Other expenses _Discontinued operations:_10 Profit on sale of non current assets - property, plant and equipment - investments - controlled entities	CONSOLIDATED 2007 2006 $000 $000 2,313,528 2,584,892 540,238 389,330 - 504 182,254 164,202 49,171 37,916
	3,085,191 3,176,844 137,719 178,974
	3,222,910 3,355,818
	418,239 412,514 26,100 34,742 11,692 13,052 101,985 106,677 165,680 150,148 70,371 80,288
	794,067 797,421 8,474 8,513
	802,541 805,934
	2,993 4,230 3,225 1,622 - 1,421
	6,218 7,273

7

FUTURIS CORPORATION LIMITED NOTES TO THE PRELIMINARY FINAL REPORT YEAR ENDED 30 JUNE 2007

NOTE 3. REVENUE AND EXPENSES (continued)

NOTE 3. REVENUE AND EXPENSES (continued)	CONSOLIDATED
	2007	2006
	$000	$000
Included in share of profits from equity accounted investments, other revenue and other expenses		are the
following:
Sale of Caversham	8,920	-
Telecommunications bid and establishment costs *	(9,566)	-
Hi-Fert acquisition benefit	-	10,400
Redundancies and restructuring costs	-	(8,800)
Write down of Westralia Property Trust (share of equity loss)	-	(1,931)
	(646)	(331)
Depreciation and amortisation	37,589	36,727
Employee benefits expense	312,164	308,501
Impairment losses (net)	269	-
Discount on acquisitions (gain)	4,100	-
Redundancies and restructuring costs	(11,732)	-

*As previously announced, the Federal Government has agreed to provide $958m in funding to OPEL Networks Pty Ltd, a 50/50 joint venture between Elders Telecommunications Infrastructure Pty Ltd (Elders – a wholly owned subsidiary of Futuris Corporation) and Optus Networks Pty Limited (Optus – a wholly owned subsidiary of SingTel). The formal contractual negotiations in relation to this funding are still in progress.

NOTE 4. DIVIDENDS

Parent entity equity dividends on ordinary shares:

Dividends paid during the year - Final fully franked dividend for June 2006 of 5¢ per share (2006: 5¢ per share, fully franked) - Interim fully franked dividend paid April 2007 of 4¢ per share (2006: 4¢ per share, partly franked) - Hybrid distribution Dividends proposed and not recognised as a liability - Final fully franked dividend for June 2007 payable 24 October 2007 of 5.5¢ per share (2006: 5¢ per share, fully franked) Subsidiary dividends on ordinary shares: Dividends paid to external parties during the year - Fully franked dividend paid September 2006 of 5¢ per share	36,160 33,200 29,233 26,656 8,879 1,836
	74,272 61,692 40,463 36,046 5,532 10,451
	120,267 108,189

Shareholders can elect to have all or a certain number of their shares participate in the Company’s Dividend Reinvestment Plan (“DRP”). The issue price of shares under the DRP is the weighted average closing market price of the Company’s shares sold through Australian Stock Exchange Limited during the five (5) days immediately following the Books Close (Record) Date, less a discount of 2.5%. The maximum number of shares an individual shareholder can receive under the DRP is 2,000 shares at each dividend date.

The last date for receipt of election notices for the dividend plan is 8 October 2007.

8

FUTURIS CORPORATION LIMITED NOTES TO THE PRELIMINARY FINAL REPORT YEAR ENDED 30 JUNE 2007

NOTE 5. EQUITY Contributed Equity Ordinary shares: Issued and fully paid up Movements in ordinary shares: Opening balance Conversion of options Scrip consideration Dividend reinvestment plan Issued capital, employee share plan Convertible notes converted Closing balance Hybrid Equity Issued and fully paid up	CONSOLIDATED 2007 2006 $000 $000 608,493 577,717
	Number of shares $’000 720,911,089 577,717 1,670,000 2,571 1,326,335 2,984 2,939,852 5,793 5,451,257 11,542 3,341,595 7,886
	735,640,128 608,493
	CONSOLIDATED 2007 2006 $000 $000 145,151 145,151

NOTE 6. DETAILS OF EQUITY ACCOUNTED ASSOCIATES AND JOINT VENTURES

Name of Associate or Joint Venture Principal activity of Associate or Joint Venture Ownership Interest 2007 2006 % %	Contribution to net profit or (loss) 2007 2006 $000 $000
Air International Thermal (US) Holdings Inc Automotive 35 35 Air International Thermal (Belgium) NC Automotive 35 35 Australian Agricultural Company Ltd Beef production 43 43 Australian Wool Handlers Wool processing 50 50 Elders Rural Bank Limited Financial Services 50 50 Forest Enterprises Australia Forestry 31 27 Hi-Fert Pty Ltd Fertiliser 50 50 Webster Ltd Agribusiness 27 25 Amcom Ltd Telecommunications 49 30 Other	389 6,405 - (1,598) 5,210 6,057 6,116 4,992 17,864 15,476 6,400 5,500 803 11,855 2,000 1,800 3,000 1,000 (577) (2,300)
	41,205 49,187

9

FUTURIS CORPORATION LIMITED NOTES TO THE PRELIMINARY FINAL REPORT YEAR ENDED 30 JUNE 2007

NOTE 7. NET TANGIBLE ASSETS

NOTE 7. NET TANGIBLE ASSETS Net tangible asset backing per ordinary security	CONSOLIDATED 30 June 2007 30 June 2006 $1.21 $1.17

NOTE 8. SEGMENT INFORMATION

The Group is organised and managed separately according to the nature of the products and services provided. The consolidated entity comprises the following distinguishable components; Rural Services, Financial Services, Forestry, Automotive Components, Property and Investment & Other.

Rural Services include the provision of a range of agricultural products and services through a common distribution channel and its associate Australian Agricultural Company Ltd (2006: Rural Services included Financial Services as one segment, comparatives have been restated to reflect this change).

Financial Services include the provision of a range of financial services through a common distribution channel and its associate Elders Rural Bank (2006: Financial Services was included in Rural Services as one segment, comparatives have been restated to reflect this change).

Forestry includes the Group’s interests in forestry plantations and processing.

Automotive Components include the manufacturing and sales of Automotive components of which the key components are seating, heating ventilating and air-conditioning systems (2006: includes the Rail and Bus division).

Property includes the sale and development of land and commercial developments (2006: included an equity interest in a listed property trust now recognised in Investment & Other).

The Investment & Other segment includes the general investment activities not associated with the other business segments and the administrative corporate office activities, this includes the Rail and Bus division for 2007 (2006: included in Automotive components).

Segment results have been determined on a consolidated basis and represent the earnings before corporate net borrowing costs and income tax expense.

The Group operates predominantly within Australia. All other geographical operations are not material to the financial statements.

10

FUTURIS CORPORATION LIMITED NOTES TO THE PRELIMINARY FINAL REPORT YEAR ENDED 30 JUNE 2007

NOTE 8. SEGMENT INFORMATION (continued)

Business Segments

2007 External sales Other revenue Share of net profit (loss) of associates Total revenue Underlying EBIT Significant items Segment Result Earnings before interest, tax, depreciation & amortisation Depreciation & amortisation Segment Result Corporate net interest expense Profit from ordinary activities before tax Segment assets Unallocated assets (including tax assets) Segment liabilities Unallocated liabilities (including tax liabilities) Carrying value of equity investments Acquisition of property, plant & equipment, intangible assets and other non current assets, including design and development Non cash expenses other than depreciation and amortisation Profit/(loss) on sale of investments	Rural Services Financial Services Forestry Automotive Components Property Investment & Other $000 $000 $000 $000 $000 $000 2,303,930 203,961 173,850 389,038 137,719 14,412 34,875 12,272 20,575 16,436 407 24,222 12,844 17,864 6,365 (1,345) - 5,477	Total $000 3,222,910 108,787 41,205
	2,351,649 234,097 200,790 404,129 138,126 44,111 56,289 27,192 56,929 9,650 21,476 (6,837) - - - - 8,920 (9,566)	3,372,902 164,699 (646)
	56,289 27,192 56,929 9,650 30,396 (16,403)	164,053
	71,501 27,259 61,899 26,792 30,450 (16,259) (15,212) (67) (4,970) (17,142) (54) (144)	201,642 (37,589)
	56,289 27,192 56,929 9,650 30,396 (16,403)	164,053
	948,134 619,086 672,106 248,677 - 286,308 - - - - - -	(40,024)
		124,029
		2,774,311 324,124
	540,242 417,227 81,165 100,951 - 84,478 - - - - - -	1,224,063 687,875
	274,431 129,497 85,526 18,521 - 68,175	576,150
	39,768 2,688 93,180 40,767 3,625	180,028
	(2,262) - 612 (7,982) 9 53	(9,570)
	(146) - - - - 3,371	3,225

11

FUTURIS CORPORATION LIMITED NOTES TO THE PRELIMINARY FINAL REPORT YEAR ENDED 30 JUNE 2007

NOTE 8. SEGMENT INFORMATION (continued)

Business Segments

2006 External sales Other revenue Share of net profit (loss) of associates Total revenue Underlying EBIT Significant items Segment Result Earnings before interest, tax, depreciation & amortisation Depreciation & amortisation Segment Result Corporate net interest expense Profit from ordinary activities before tax Segment assets Unallocated assets (including tax assets) Segment liabilities Unallocated liabilities (including tax liabilities) Carrying value of equity investments Acquisition of property, plant & equipment, intangible assets and other non current assets, including design and development Non cash expenses other than depreciation and amortisation Profit on sale of investments	Rural Services Financial Services Forestry Automotive Components Property Investment & Other $000 $000 $000 $000 $000 $000 2,364,538 185,672 159,239 457,225 189,144 - 36,602 10,674 3,881 16,717 1,263 9,511 25,883 15,476 5,500 4,717 (1,444) (945)	Total $000 3,355,818 78,648 49,187
	2,427,023 211,822 168,620 478,659 188,963 8,566 59,691 26,939 39,922 20,758 18,230 (8,387) 6,100 - - (4,500) (1,931) -	3,483,653 157,153 (331)
	65,791 26,939 39,922 16,258 16,299 (8,387)	156,822
	77,347 28,854 43,480 35,761 16,463 (8,356) (11,556) (1,915) (3,558) (19,503) (164) (31)	193,549 (36,727)
	65,791 26,939 39,922 16,258 16,299 (8,387)	156,822
	1,041,571 663,136 512,578 216,388 257,684 55,901 - - - - - -	(38,961)
		117,861
		2,747,258 614,196
	517,586 387,788 91,484 108,091 16,900 164,175 - - - - - -	1,286,024 847,505
	390,322 133,888 50,372 2,621 20,571 1,045	598,819
	30,361 2,873 104,884 18,169 - 43	156,330
	4,973 (165) 22 3,121 1,088 1,065	10,104
	784 - - - - 2,259	3,043

12

FUTURIS CORPORATION LIMITED NOTES TO THE PRELIMINARY FINAL REPORT YEAR ENDED 30 JUNE 2007

NOTE 9. SUPPLEMENTARY STATEMENT OF NET DEBT BY SEGMENT

2007 Rural Services $000 Financial Services $000 Forestry $000 Automotive Components $000 Property $000 Investment & Other $000 Earnings before interest & tax 56,289 27,192 56,929 9,650 30,396 (16,403) Depreciation and amortisation 15,212 67 4,970 17,142 54 144 Equity accounted earnings (12,844) (17,864) (6,365) 1,345 - (5,477) Dividends received from associates 20,430 11,630 1,235 - - 548 Profit/loss on sale of property, plant & equipment (3,736) 4 (276) 1,015 - - Profit on sale of investments 146 - - - - (3,371) Profit on sale of controlled entities - - - - (8,920) - Profit on sale of investment properties - - (235) - - - Discount on acquisition - - (1,600) (2,500) - - Interest (net) (4,307) 12,272 683 82 (74) (48,680) Tax (paid)/refund 2,968 (5,864) 504 (2,756) - 10,063 Share based payments 2,625 149 588 626 40 (302) Impairment losses/(reversals) (1,851) 1,311 599 (2,467) - 2,677 Fair value adjustments (4,665) - (16,661) - - (5,125) Provisions and other (10,376) 2,392 (19,018) 10,452 (15,583) 42,603 Operating cash flow before movements in working capital 59,891 31,289 21,353 32,589 5,913 (23,323) Movement in working capital 42,219 (7,526) (16,001) (11,556) (24,665) (25,158) Operating cash flow 102,110 23,763 5,352 21,033 (18,752) (48,481) Capital expenditure (27,042) (734) (63,156) (14,215) - - Proceeds on sale of property, plant and equipment 5,447 13 4,138 323 - - Proceeds sale of investments 68 - - - - 26,574 Proceeds sale of controlled entity - - - - - 120,959 Payments for investments and other (15,414) (7,650) (30,024) (20,300) - (3,625) D&D capitalised - - - (6,252) - - Loans to associated parties (net) (18,715) - 597 - - (4,217) Loans from growers (net) - - (1,342) - - - Loans to employees - - - - - - Acquisition of controlled entity (net) (5,361) - - - - (130,861) Investing cash flow (61,017) (8,371) (89,787) (40,444) - 8,830 Proceeds from issue of shares and other equity - - - - - 2,570 Dividends paid - - (5,532) - - (66,199) Other flows - - (5,532) - - (63,629) TOTAL 41,093 15,392 (89,967) (19,411) (18,752) (103,280) Opening net debt Total flows Convertible notes classified as debt converted to equity during the year (non cash movement) Fair value adjustments to debt Closing net debt	Rural Services $000 Financial Services $000 Forestry $000 Automotive Components $000 Property $000 Investment & Other $000 56,289 27,192 56,929 9,650 30,396 (16,403) 15,212 67 4,970 17,142 54 144 (12,844) (17,864) (6,365) 1,345 - (5,477) 20,430 11,630 1,235 - - 548 (3,736) 4 (276) 1,015 - - 146 - - - - (3,371) - - - - (8,920) - - - (235) - - - - - (1,600) (2,500) - - (4,307) 12,272 683 82 (74) (48,680) 2,968 (5,864) 504 (2,756) - 10,063 2,625 149 588 626 40 (302) (1,851) 1,311 599 (2,467) - 2,677 (4,665) - (16,661) - - (5,125) (10,376) 2,392 (19,018) 10,452 (15,583) 42,603	Total $000 164,053 37,589 (41,205) 33,843 (2,993) (3,225) (8,920) (235) (4,100) (40,024) 4,915 3,726 269 (26,451) 10,470
	59,891 31,289 21,353 32,589 5,913 (23,323) 42,219 (7,526) (16,001) (11,556) (24,665) (25,158)	127,712 (42,687)
	102,110 23,763 5,352 21,033 (18,752) (48,481)	85,025
	(27,042) (734) (63,156) (14,215) - - 5,447 13 4,138 323 - - 68 - - - - 26,574 - - - - - 120,959 (15,414) (7,650) (30,024) (20,300) - (3,625) - - - (6,252) - - (18,715) - 597 - - (4,217) - - (1,342) - - - - - - - - - (5,361) - - - - (130,861)	(105,147) 9,921 26,642 120,959 (77,013) (6,252) (22,335) (1,342) - (136,222)
	(61,017) (8,371) (89,787) (40,444) - 8,830	(190,789)
	- - - - - 2,570 - - (5,532) - - (66,199)	2,570 (71,731)
	- - (5,532) - - (63,629)	(69,161)
	41,093 15,392 (89,967) (19,411) (18,752) (103,280)	(174,925)
		(202,012) (174,925) 4,765 7,224
		(364,948)

13

FUTURIS CORPORATION LIMITED NOTES TO THE PRELIMINARY FINAL REPORT YEAR ENDED 30 JUNE 2007

NOTE 9. SUPPLEMENTARY STATEMENT OF NET DEBT BY SEGMENT

2006 Earnings before interest & tax Depreciation and amortisation Equity accounted earnings Dividends received from associates Profit/loss on sale of property, plant & equipment Profit on sale of investments Profit on sale of controlled entities Interest (net) Tax (paid)/refund Share based payments Impairment losses Fair value adjustments Provisions and other Operating cash flow before movements in working capital Movement in working capital Operating cash flow Capital expenditure Proceeds on sale of property, plant and equipment Proceeds sale of investments Proceeds sale of controlled entity Payments for investments and other D&D capitalised Loans to associated parties Loans from growers (net) Loans to employees Acquisition of controlled entity (net) Investing cash flow Proceeds from issue of shares and other equity Dividends paid Other flows TOTAL Opening net debt Total flows Reclassification of debt to equity Fair value adjustments to debt Closing net debt	Rural Services $000 Financial Service $000 Forestry $000 Automotive Components $000 Property $000 Investment & Other $000 65,232 27,498 39,922 16,258 16,299 (8,387) 11,556 1,915 3,558 19,503 164 31 (25,883) (15,476) (5,500) (4,717) 1,444 945 13,423 11,800 794 - - - (3,816) - (392) (22) - - (784) - - - - (838) - - - - - (1,421) (10,845) 12,084 (2,761) 50 (33) (38,395) (26,521) 427 (13,783) (1,631) - 18,977 2,754 138 322 674 120 1,027 - 166 - 332 1,164 - (16,555) - 4,627 - - 61 (18,060) 31,655 1,382 (7,397) 2,743 22,443	Total $000 156,822 36,727 (49,187) 26,017 (4,230) (1,622) (1,421) (39,900) (22,531) 5,035 1,662 (11,867) 32,224
	(10,041) 70,207 28,169 23,050 21,901 (5,557) 136,742 (38,566) (50,005) 17,528 (47,253) (18,819)	127,729 (373)
	126,701 31,641 (21,836) 40,578 (25,352) (24,376)	127,356
	(20,752) (1,226) (104,884) (10,784) - (43) 23,000 - 6,125 43 - - 879 - - - - 1,768 - - - - - 1,556 (36,736) (1,647) (11,179) (2,131) - (18,631) - - - (7,385) - - (2,869) - (3,607) - - (20,448) - - 17,422 - - - (9,059) - - (1,515) (139) (278) (17,184) - (532) - - (30,359)	(137,689) 29,168 2,647 1,556 (70,324) (7,385) (26,924) 17,422 (10,991) (48,075)
	(62,069) (3,525) (96,655) (21,772) (139) (66,435)	(250,595)
	- - 14,193 - - 268,448 - - (10,451) - - (61,692)	282,641 (72,143)
	- - 3,742 - - 206,756	210,498
	64,632 28,116 (114,749) 18,806 (25,491) 115,945	87,259
		(314,761) 87,259 54,576 (29,086)
		(202,012)

14

FUTURIS CORPORATION LIMITED NOTES TO THE PRELIMINARY FINAL REPORT YEAR ENDED 30 JUNE 2007

NOTE 10. DISCONTINUED OPERATIONS AND BUSINESSES DISPOSED

Particular companies within the Property division were disposed of on 10 May 2007 and is reported as a discontinued operation. This note shows the results of the continuing businesses and the discontinued business.

For the year ended 30 June	Continuing Discontinued Consolidated 2007 2007 2007 $000 $000 $000	Continuing Discontinued Consolidated 2006 2006 2006 $000 $000 $000
Sales revenue Cost of sales Other revenues Other expenses Share of net profits of associates and joint ventures accounted for using the equity method Profit on sale of non current assets Profit before net borrowing costs and tax expense Interest revenue Borrowing costs Profit before tax expense Income tax expense Net profit for year Net profit attributable to minority interest Net profit attributable to members of the parent entity Revenue and Expenses Sales revenue: Sale of goods Commission and other selling charges Construction contract revenue Insurance premium revenue Other sales related income Other expenses: Distribution expenses Marketing expenses Occupancy expenses Administrative expenses Insurance claims & related expenses Other expenses	3,085,191 137,719 3,222,910 (2,278,243) (108,100) (2,386,343) 73,353 331 73,684 (794,067) (8,474) (802,541) 41,205 - 41,205 6,218 8,920 15,138 133,657 30,396 164,053 19,891 74 19,965 (59,989) - (59,989) 93,559 30,470 124,029 (11,610) (8,935) (20,545) 81,949 21,535 103,484 (2,769) - (2,769) 79,180 21,535 100,715 2,313,528 43,068 2,356,596 540,238 - 540,238 - 93,634 93,634 182,254 - 182,254 49,171 1,017 50,188 3,085,191 137,719 3,222,910 418,239 - 418,239 26,100 - 26,100 11,692 283 11,975 101,985 8,191 110,176 165,680 - 165,680 70,371 - 70,371 794,067 8,474 802,541	3,176,844 178,974 3,355,818 (2,347,090) (153,597) (2,500,687) 49,070 2,095 51,165 (797,421) (8,513) (805,934) 49,187 - 49,187 7,273 - 7,273
		137,863 18,959 156,822 20,210 - 20,210 (59,171) - (59,171)
		98,902 18,959 117,861 (16,234) (5,212) (21,446)
		82,668 13,747 96,415 (8,976) - (8,976)
		73,692 13,747 87,439
		2,584,892 63,855 2,648,747 389,330 - 389,330 504 115,119 115,623 164,202 - 164,202 37,916 - 37,916
		3,176,844 178,974 3,355,818
		412,514 - 412,514 34,742 94 34,836 13,052 339 13,391 106,677 6,342 113,019 150,148 - 150,148 80,288 1,738 82,026
		797,421 8,513 805,934

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FUTURIS CORPORATION LIMITED NOTES TO THE PRELIMINARY FINAL REPORT YEAR ENDED 30 JUNE 2007

NOTE 10. DISCONTINUED OPERATIONS AND BUSINESSES DISPOSED (CONTINUED)

Revenue and Expenses (continued) Profit on sale of non current assets - property, plant and equipment - investments - controlled entities	Continuing Discontinued Consolidated 2007 2007 2007 $000 $000 $000 2,993 - 2,993 3,225 - 3,225 - - - 6,218 - 6,218	Continuing Discontinued Consolidated 2006 2006 2006 $000 $000 $000 4,230 - 4,230 1,622 - 1,622 1,421 - 1,421
		7,273 - 7,273

(b) Controlled Entities Disposed

On 10 May 2007, the Group sold certain Caversham companies, taking a 25% interest in the Aspen Development Fund. The companies disposed of were as follows:

Caversham Property Pty Ltd Caversham Property Developments Pty Ltd Bradwell Pty Ltd

In 2006, the Group sold down equity in Australian Fine China, retaining 48% equity interest.

Proceeds receivable on disposal of shares Cash Deferred settlement Investment in Aspen Development Fund Less costs of disposal The carrying amounts of assets and liabilities disposed of by major class are: Receivables Inventories Other assets Property, plant & equipment Investment properties Payables Provisions Net assets/(liabilities) of entity sold Unrealised amounts eliminated Profit on disposal (before tax)	CONSOLIDATED 2007 2006 $000 $000 120,959 1,556 63,418 - 22,500 - (27,653) -
	179,224 1,556
	6,686 2,366 158,622 5,753 - 806 139 1,389 9,352 - (4,366) (12,284) (129) (631)
	170,304 (2,601) - 4,022
	8,920 1,421

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FUTURIS CORPORATION LIMITED NOTES TO THE PRELIMINARY FINAL REPORT YEAR ENDED 30 JUNE 2007

NOTE 11. CHANGES IN THE COMPOSITION OF THE ENTITY

(a) Controlled Entities Acquired

The following controlled entities were acquired by the Group at the date stated and their operating results have been included within the income statement from the relevant date.

Equity and consideration paid Date Proportion Control of Shares Acquired Acquired PlantTech Pty Limited - Cash 2/9/05 50% _ PlantTech Pty Limited was a 50% equity accounted associate at 30 June 2005._ The aggregate amounts of assets and liabilities acquired by major class are: Cash Receivables Inventories Investments Property, plant and equipment Goodwill Other assets Tax assets and liabilities Creditors and provisions Borrowings Outside equity interests Loans and investments in associates now controlled Outflow of cash to acquire the entities, net of cash acquired: Cash consideration Cash balance acquired Net Outflow of cash	CONSOLIDATED 2007 2006 $000 $000 - 5,416
	- 5,416
	CONSOLIDATED 2007 2006 $000 $000 - (3,351) - 2,133 - 2,976 - 971 - 127 - 3,672 - 64 - 1,606 - (6,133) - - - -
	- 2,065 - -
	- 2,065
	- (2,065) - (3,351)
	- (5,416)

NOTE 12. SUBSEQUENT EVENTS

No matter or circumstance has arisen since the end of the financial year which is not otherwise dealt with in this report or in the consolidated financial statements, that has significantly affected or may significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in subsequent financial periods.

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FUTURIS CORPORATION LIMITED NOTES TO THE PRELIMINARY FINAL REPORT YEAR ENDED 30 JUNE 2007

NOTE 13. CHANGES IN CONTINGENT LIABILITIES AND ASSETS

Tax

During the year the Group received amended assessments denying capital losses previously utilised. The capital losses in dispute arose from the sale of the goodwill and other intangibles associated with the Elders wool handling business in 1998. The Group is of the opinion that no provisioning is required in respect of the amended assessments.

The Group has previously advised of the audit by the Australian Taxation Office (ATO) of the tax treatment of the sale of the Building Products Division in October 1997, for which amended assessments were issued. The Group objected to the amended assessments. The Group has also successfully challenged the validity of one of the assessments in the Full Federal Court of Australia. The ATO have filed an application for leave to the High Court of Australia on the matter. At 30 June 2007, the provision for taxation is sufficient to cover any anticipated payments under the assessments, should the ATO be ultimately successful.

The Group’s tax returns for 2002 and 2003 are being audited as part of the ATO’s large business audit program. Except as disclosed above, no other amended assessment have been received.

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