LCM Logicams AR2012

Annual Report
2012
A Year of Growth
ASX: LCM
LogiCamms listed on the Australian Securities Exchange in December 2007 with 190 sta across two oces, and a strong track record in providing electrical engineering, instrumentation and control systems tomining, infrastructure and manufacturingsectors. Following a period of strategic growth and development, LogiCamms today has a workforce of 490 people across eight oces. The Company provides multidiscipline engineering, project delivery and asset management services to diverse markets from mining and hydrocarbons to infrastructure and industries including phosphates and sugar.
Key Metrics FY12
$123.1m
Record Revenue
15.9c
Record NPAT
Record basic earnings per share
8.5c
Record dividend per share
$11.3m
Record EBITDA
$10.7m
15.6%
Record return on equity
Top customers FY12 Rio Tinto | BHP Billiton | Origin Energy | Santos | Incitec Pivot | Thiess Degremont
LogiCamms Annual Review 2012
Performance Highlights Our Business Chairmans Report
1 2 4
Managing Directors Report 6 Project Snapshot 8 9 Our Vision and Values
Strategy Board and Management
10 12
Performance Highlights
FY12 Highlights Delivering on our Strategy
HIGhLIGhTS
People, Health & Safety

LogiCamms initiated the implementation of its People and Culture strategy and bolstered the leadership group, including the appointment ofManaging Director Steve Banning and key senior management appointments. Our workforce grew to meet a growing demand for our services. The Companys health and safety performance was strong and the Zero Harm philosophy remains at the forefront of our activities.
Protability
The Company has built a strong platform for growth which is now delivering. Earnings before interest tax depreciation and amortisation (EBITDA) was $11.3 million, representing 9.2 per cent margin on revenue. Net prot after tax (NPAT) was $10.7 million up by 133 per cent on last nancial year. This was ahead of the guidance provided to the market in May 2012.
Projects & Customers

LogiCamms expanded its prole of projects and industries and strengthened long term relationships with tier one customers. This was evidenced by new ongoing service agreements, signicant contract awards andcontinued business from existing customers.
Pipeline & Order Book

The Companys opportunity pipeline strengthened during the year, with a signicant increase in tendering and negotiating activity. Increased rigour has been applied in assessing the certainty of our opportunity pipeline. LogiCamms work in hand/forward order book remains strong, and the Company is well positioned to capture anumber of signicant and long term project opportunities.
Positioning
LogiCamms is optimally positioned to achieve continued growth and capture market opportunities. The Companys strategic focus, services and industry diversity, and quality of its customer base will underpin continued growth.
150
Revenue ($m)
12 10 8 6
EBITDA ($m)
7.0
12 10 8
3.6 0.3
NPAT ($m)
120
32%
42.1 27.3 20.7 10.6
CAGR
67.0 42.5
21%
3.9 3.2 3.4 2.6 1.2 4.5 4.3
CAGR
30%
3.1 0.4 4.2 2.5 1.6 3.0 2.1 0.8
CAGR
6.0
90
6 4 2 0
4.7
60
55.3
56.1
4 2 0
30
23.9
28.7
FY08
FY09
FY10
FY11
FY12
FY08
FY09
FY10
FY11
FY12
FY08
FY09
FY10
FY11
FY12
1H
2H
1H
2H
1H
2H
Our Business
LogiCamms is an agile and scalable service provider. Our business model targets diversity in industries, capabilities and project types which optimally positions the Company for future growth.
EERI GIN N E E LIN TE P I OPERA SC pport I ions Su port ID Operat up T S e c L nan g Mainte Trainin TE ring y c MU n e t U C ompe e
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CO MA NS NA TR GE UCT ME IO NT N
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Develo Evalua p Scope te Opt io Risk A ssessm ns Asset Manag ent em (Front End Su ent pport)
IFY
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EME
IDENT
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PI
PI
NG
HAN
ENGINEE
ICA
RING
PROCESS
PROJECT PHASES
SERVICES
STAFF 490
Workforce numbers
FY08 FY09
190
200
320
FY10
410
FY11
490
FY12
ADVANTAG ES PROJECT D
BHP B IRON ILLITO ORE N BMA FMG
ELIVE RY C APA BIL RIO TI ITY NTO RIO TI NTO

XS TR I WE DEM ATA IT S CU FARM SU RR AG ERS H
AS SE T
MI NE R
O C N H O OC EV I O L O R R S S PH ON IG A EA I IN NT R LL C I EN OS H PS ER G Y
M AN AG EM EN T C
S ON TI LU SO
OUr BUsiNess
AL S
E BP SID D OO A W AP GAS A SE QGC
TY QUALI AND HSE IN IVOT CE INCITEC P EN N SUCROGE LL CE BORAL EX SUNSTATE
MI NIN G&
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ONT REM TION A DEG ESS ORPOR WER THI C O P NP TER WA ESTER GROU W TED RGY UNI C ENE LIN ETSA
GRE
ENF
ELD
TURE STRUC INFRA INDUSTRY &
CEMENT
PROJECT TYPES
MARKETS
CUSTOMERS
Infrastructure & Industry
Mining & Minerals
Hydrocarbons
Chairmans Report
I am delighted to report that 2012 has been a year in which LogiCamms continued to deliver on its strategy and achieved outstanding businessperformance.
Results
With a substantial increase in NPAT to $10.7 million for the periodending 30June 2012, LogiCamms is well positioned forcontinued growth, protabilityand returns. This result represents EPSof 15.9 cents per share and can be attributed to the Companys outstanding operational performance and strengthened risk management framework, but also featured research and development taxcredits. The Board has declared a full year fully franked dividend of8.5cents per share including nal dividend of 5.0 cents per share, and up from 4.5 cents for the previous 12months. The record date for the nal dividend was12 September 2012 andthe payment date is26September 2012. The Companys balance sheet remains strong and we are in a solid position to fund growth in the future. With a net cash position of $16.4 million as at 30June 2012, LogiCamms has signicant funding capacity topursue organic and inorganic investment aligned with the Companys strategic objectives. Furthermore the Company recently increased its overall bondingcapacity to $22.0 million inanticipation of anincreaseinproject activity.
Governance and risk management

The Board remains committed to a transparent, best practice approach to corporate governance and risk management. The Audit and Risk Committee worked to strengthen the Companys risk management framework in line with the needs of the business, which included the introduction of a new Risk Management Policy and an enhanced Audit and Risk Committee Charter. A dedicated Projects Committee was also formed to complement the implementation of this framework. The core objectives of our risk management practices are to understand and manage the uncertainties on our business and also to enable potential gains from opportunities created through evaluation and management ofrisk considerations.
Board and management

Our Board of Directors continued to provide guidance and governance to the Company throughout the period. As part of LogiCamms Futurist Group initiative to support our emerging leaders and foster innovation, Non-Executive Director Peter Wall assumed an active mentoring role in addition to Board duties. I would like to thank all my Board colleagues for their contributions, and acknowledge former members David Humann, Chris Greig and Garry McGrechan, who all retired asNon-Executive Directors in the rst half of the nancial year. In October 2011 we welcomed Steve Banning as Managing Director. After four years as Chief Executive Ocer of Epic Energy, a wholly owned energy transmission business of the Hastings Diversied Utilities Fund (ASX:HDF), Steve has brought a high degree of professionalism, enthusiasm and knowledge to the Company. It is clear that Steve and his Executive Management team have an absolute commitment to deliveringrewards for all stakeholders and to the ongoing development of the business.
Capital management
As part of an ongoing capital management program, the Board announced a share buy-back of up to $2.0 million in issued capital over the 12 months commencing from 21 February 2012. The extent and timing of shares to be purchased under the announced buy-back will depend on market conditions. Asat30July 2012, the Company has repurchased 262,000 shares.
20 15 10 5 0
EPS (cents per share)
20
15.9
DPS (cents per share)
15 10
12.6
11.7 7.6
8.5
5 0
5.5
6.25 4.5
FY09
FY10
FY11
FY12
FY09
FY10
FY11
FY12
EPS
DPS
ChAirMANs Report
Health and safety

LogiCamms pursuit of excellence in health and safety continued during the period, with our safety incident performance indicators well under industry averages. The Zero Harm philosophy will remain at the heart of our operations and decisions, particularly as we take on more complex projects in diverse local and internationallocations.
engineering capabilities across diverse industry sectors. I am condent that we will continue to build a strong position to capitalise on future opportunities and that earnings growth will continue. Looking ahead we remain attentive to volatility in the global economic environment as well as uncertainty around our regulatory and political landscape. While these uncertainties canimpact our customers commitment to advance investment, particularly into new (greeneld) assets, the Companys strategy responds well to these challenges. Our controlled exposure to multiple industries, long term relationships, and value-add services such as asset management which can
embed the Companys presence at existing (browneld) sites, will underpin continued business performance. I would like to thank Steve and the Executive Management team for a successful year and for their ongoing commitment to the Company. I also congratulate all LogiCamms personnel for their hard work, dedication and outstanding performance.
Outlook
The Board and I remain condent of LogiCamms future growth prospects. The Company oers a compelling value proposition for customers, enabling the scalable application of multidiscipline
Peter Watson Non-Executive Chairman
Employees at LogiCamms Brisbane oce
Managing Directors Report
It is with great pleasure thatI report on LogiCamms performance during 2012.
Financial performance
LogiCamms has achieved an increase in revenue of 26 per cent to $123.1 million. An outstanding operating result was achieved with the business delivering an EBITDA of $11.3 million, which represents 9.2per cent margin on revenue, and is ahead of the guidance released inMay 2012.
Health and safety

Our health and safety systems in all major oces are now AS4801 accredited, and our Total Recordable Injury Frequency Rate (TRIFR) dropped by 25 per cent to 2.2 per 1 million hours worked. A comprehensive Emergency Response and Crisis Management plan is under development and due to be implemented in the rst half of FY13. This plan will focus on responding actively and decisively to help protect the interests of the Company, its people and environments in whichweoperate.
People
Our people remain at the core of our success. As part of the implementation of our People and Culture strategy, the Company invested in various internal programs, systems, and a robust on-boarding process to position our business as a long term employer of choice. Key initiatives included our Futurist Group program, as well as the expansion of our national Graduate Program which currently supports 30young engineers. We continued detailed assessments ofoperational eciencies to ensure the right people are applied to the right projects, and that access to ongoing opportunities, professional development, and challenges remains available. During the year our dedicated recruitment team worked with the business to successfully attract the specialised skills, industry experience and relationships needed to support the Companys strategic direction. This included making key leadership appointments for our operations in Western Australia and South Australia, which introduced a high level of industry experience and commercial acumen to lead those businesses forward. In line with a repositioning of our business and a commitment to our people, LogiCamms improved and expanded its operating footprint. Our Perth oce has commenced relocating to a new and larger space in the CBD, and in Adelaide we recently relocated to an enhanced oce space also in the CBD. We also expanded our footprint in Whyalla, Mackay, andBrisbane.
Our business performance

Awide spectrum of our services have been engaged by customers during the period, highlighting the strength ofourexpanding multidiscipline oering.
Engineering
The Company executed a range of engineering projects during the year, of which the majority was with respect to existing (browneld) assets or under long term services agreements. This was a key reection of our pursuit of repeat business and ofbuilding long term customer relationships. Our delivery of the process control system at the Victorian Desalination Plant, the largest engineering contract in hand, reached a milestone during the second half of the nancial year as the project moved into the site commissioning phase, being delivered on a cost reimbursable basis. Over 105,000 man hours have been achieved on this project without incident. During the year we expanded the breadth and depth of our engineering services. LogiCamms foundation capabilities were strengthened, and our people continued to develop market leading automation solutions for operating assets. Theongoing development of additional engineering disciplinesaccelerated, and LogiCamms now deliver a large number of multidiscipline engineering solutions across our project portfolio.
Project Delivery
Markets and project activity

The markets in which we operate remained strong, with most of LogiCamms project activity seen within the mining and minerals and hydrocarbons sectors. LogiCamms strategy of achieving a balanced portfolio of services, industries and geographic locations will help to mitigate the impact of global economic volatility and the cyclical nature of resources industries. The Company continued to support a large number of common use infrastructure projects around resources and energy facilities. This included projects such as the design and delivery of water treatment solutions at Coal Seam Gas (CSG) facilities in Queensland. The transferable nature of these services across industries supports our ability to access a diverse range of customers operating in multiple markets. Demand for our services within niche specialist industries also increased during the period. This activity centred around phosphates (fertilisers), sugar, and nitrates. LogiCamms market leading technical capabilities in these areas are recognised both domestically and internationally. With food security anongoing global issue and LogiCamms unique credentials to assist customers in these areas, we are condent that strategic opportunities will materialise.
LogiCamms continued to safely and successfully deliver its existing project portfolio. The Company was awarded design contracts worth $8.3 million to upgrade electrical infrastructure at two Rio Tinto port facilities in Western Australia. The Company was also awarded an $8.5 million contract to upgrade the control system for the Coal Handling Preparation Plant at Stanwell Corporations Meandu mine inQueensland. Both of these projects were secured and commenced during the second half of the nancial year.
This customer-sponsored international expansion spanned several geographic locations including South America, South East Asia, Europe and SouthAfrica.
Organisational development
LogiCamms achieved a number of developmental milestones during the year. Following a period of investment into our internal systems and processes, particularly around risk management, quality management and project delivery, the Company is well positioned to realise key operational eciencies. LogiCamms will develop and build on these business improvement initiatives in line with the requirements of our customers and projects.
Asset Management
Our asset management business continues to gain signicant traction and provide pull through opportunities. In February 2012 we were awarded an $8.0 million contract to provide maintenance system support for the Chevron-operated Gorgon Liqueed Natural Gas (LNG) project. LogiCamms was also engaged to provide various operational readiness and operational excellence services for customers such as BMA, Wesfarmers Curragh, Oil Search, Newcrest and ConocoPhillips.
Strategy and outlook

The outlook for LogiCamms remains positive. We are delivering on our strategy to position the Company as a market leader within mining and minerals, hydrocarbons, infrastructure and industries. At all levels we are committed to this growth strategy, delivered through a targeted business plan and underpinned by a commitment to our Vision andValues. The business remains agile and vigilant in light of current global economic volatility and levelling in some segments of the resources sector. We believe that our strategic focus, services and industry diversity, and quality of our customer base will position us well to respond todynamic market conditions. Our annual performance is a strong indicator of the health of our business and I believe excellent foundations are inplace to sustain year-on-year growth. I would like to thank our Chairman, Peter Watson, and the Board for their governance and support throughout the year. I would like to also recognise and thank our people for their commitment to our customers, and for continuously upholding our core Values.
MDs Report
Competency Training
The Competency Training business continued to perform strongly and has expanded its oering to capture longer term market opportunities. With the ongoing skills shortage, thegroups core business of high-end technical training for operations was extended. This included the provision of t-for-purpose competency training strategies, tactics and delivery for our customers all of which are key enablers of successful start-up and operational programs. Anarea of growth for the training group has been within the emerging gas to LNG sectors, which isexpectedtocontinue.
International projects
During the year work volumes on international projects lifted. Most opportunities were derived from existing customer relationships and thework is largely being executed fromour Australian oces.
LogiCamms Executive Management team, from left: Steve Banning, Flora Furness, Karsten Guster, Matthew Adamo.
Steve Banning Managing Director
Project Snapshot
Through strengthening relationships and a solid track record, our customers are increasingly engaging ourservices for projects indiverse locations.
Project lifecycle phases
1
Identify
2
Select
3
Dene
4
Execute
5
Operate
Australia
4 5
EPC project delivery for a new process facility, as well as ongoing process control system support services, at BHP Billitons Olympic Damoperation. Control system design including procurement for the Mondarra gas storage facility upgrade forAPAGroup. Operational readiness services for ConocoPhillips at the Bayu Undan oshore gas facility and Darwin LNG. Asset management solutions for the maintenance system of the Chevron-operated Gorgon LNGproject. Electrical and control system designfor an electrical infrastructure upgrade attwo RioTintoportfacilities. EPCM portfolio of projects at Incitec Pivots Phosphate Hillfacility. Feasibility study for Carbon Energys Undergound Coal Gasication eld and downstream Synthetic Natural Gas production plant nearDalby, Queensland. Ongoing engineering services for Santos and Origin Energy for various capital projects. Control system for the Coal Handling Preparation Plant at Stanwell Corporations Meandu mine in south eastQueensland.
3 4
4 5
International
2
Early stage design of a beneciation plant at Kazax Minerals proposed iron ore mine inKazakhstan. Control system design and commissioning for mobile machines and stockyard management systems at Assmangs Khumani ironore mine inSouth Africa. Competency assurance and training solutions for Oil Search in Papua New Guinea. Bankable feasibility study for proposed iron ore mine in Brazil. Multidiscipline engineering services for the expansion program at Newcrests Lihir Island operation, Papua New Guinea.
2 3 4
4 2
3 4
5 2 3 4
3 3 4
ProJects
Our Vision is to be a market leader delivering outstanding customer solutions.
Our Values
Teamwork
CAN Do AppRoAch
Delivering QUality ResUlts

9
Integrity
commitment to people
Strategy
Our Purpose
To be a market leader delivering outstanding customer solutions. To achieve value for our customers, growth in protability for our company, and opportunity and rewards for our sta and shareholders.
What we want to achieve

Strengthen our core business streams of multidiscipline engineering, project delivery and assetmanagement Increase penetration into long term growth markets ofmining and minerals, hydrocarbons, infrastructure andindustries Increase number and value of service contracts with tieronecustomers Focus on long term services agreements with key customers Develop centres of excellence and enhance nationalworkshare Leverage national capabilities to deliver market leading expertise to local customers Pursue partnership and investment opportunities that support expansion of capabilities and geographic footprint
10
Roadmap
Markets
Current
20% 30%
Future
30%
30%
FY12
FY13+
50%
Hydrocarbons Mining & Minerals Infrastructure & Industries
40%
Hydrocarbons Mining & Minerals Infrastructure & Industries
Services and Contracts
Leveraged foundation capabilities
and existing relationships to access new opportunities Enhanced direct relationships withtier one customers Bolstered positioning in growthsectors Increased market penetration in asset management service
Long term customer relationships Enhanced earnings in line with Continued value add to customers Balanced portfolio of contracts,
customers and services strategic expansion focus through asset management solutions embedded
People and Organisation
People and Culture strategy Focus on talent management
People and Culture strategy Ongoing workforce training and

embedded development including a formal Learning Management System Mentoring and development offuture leaders and high performers Diversied technical and professional skill set National workshare solutions embedded framework embedded
anddevelopment of people National workshare solutions implemented National systems and processes implemented Implementation of leadership initiatives such as the Futurist program
Risk Management
Strengthened strategy and risk
management framework Bolstered business systems and project delivery framework
Strategy and risk management Best in class framework for business Operational eciencies realised
systems and project delivery
StrAteGy
How we will deliver

Implement business plan across core focus areas of: Market and industry positioning Risk management Operational excellence People and culture strategy Organisational structure
Our competitive advantages

People: Scalable workforce, high calibre leadership, customerfocused culture Industry and geographic spread: Penetration across diverse growth markets, national operations with localdelivery Multidiscipline engineering design: Technical excellence in detailed design, value oriented solutions, design for operations Project delivery capability: Flexible approach to service the small to medium project opportunities Asset management solutions: Ability to respond to customers objectives, enhancing asset performance andvalue Excellence in HSE and Quality: Zero Harm culture aligned with ourcustomers, quality project delivery
11 11
Board and Management
Our Board and Management group brings together breadth and depth of leadership experience, commercial acumen and industry knowledge.
Peter Watson
Non-Executive Chairman
Steve Banning
Managing Director
Peter Wall
Non-Executive Director
Business leader with an accomplished career history in engineering, construction andservices.
Highly seasoned executive with a successful track record in resources andenergy sectors.
Senior management expertise and corporate governance specialist.
Former CEO at Transeld Services (ASX:TSE) Chairman, Regional Rail Link Victoria andAssetCo, and Director of Save theChildren
Former CEO at Epic Energy, owned by Hastings Diversied Utilities Fund (ASX:HDF)
Long standing tenure at S. Smith & Sons (The Yalumba WineCompany)
Giles Everist
Damian Young
Paul Bowker
Company Secretary
Chartered Accountant and senior nance and management professional with extensive commercial expertise.
Qualied engineer and management professional with decades of operationalexpertise.
Company Secretary and General Counsel with commercial, regulatory and compliance background in the UK and Australia.
Former CFO at MonadelphousGroup Chairman of Decmil Group(ASX:DGL)
Former senior management tenures atMobil Oil and Santos
Former corporate lawyer at AGL Energy andLinklaters in London
Karsten Guster
Strategy & Developments Director
International experience in resources and energy sectors. Responsible for strategy, industry groups, business development, asset management, mergersandacquisitions.
Matthew Adamo
Chief Financial Ocer
Flora Furness
People & Culture Director
Chartered Accountant, corporate nance and risk management practitioner. Extensive business, commercial and nancialmanagement experience gainedin Australia and overseas.
Organisational development specialist witha long career in strategic human resources and advisory roles.
Former GM of Global Strategy and Mergers & Acquisitions for WorleyParsons
Former senior roles with Ernst &Young and WorleyParsons
Former executive at ConocoPhillips and global service provider AMEC Minproc China and South America experience
More detailed information on the Board is available in the LogiCamms 2012 Financial Report.
12
Financial Report
2012
Contents
1 23 24 25 26 27 55 56 58 59 Directors Report Consolidated Statement of Financial Position Consolidated Statement of Comprehensive Income Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows Notes to the Financial Statements Directors Declaration Independent Auditors Report Lead Auditors Independence Declaration ASX Information
LogiCamms Financial Report 2012
Directors Report
Your directors present their report on LogiCamms Limited (the Company) and its controlled entities (the Group) for the nancial year ended 30 June 2012. The names of directors in oce at any time during or since the end of the year were:
Name Position Year of initial Appointment Year last re-elected
Peter Watson Steve Banning Giles Everist Peter Wall Damian Young David Humann Gary McGrechan Dr Chris Greig
Non-executive Chairman Managing Director Non-executive Director Non-executive Director Non-executive Director Non-executive Director Non-executive Director Non-executive Director
2011 2011 2011 2007 2009
2009
Resigned 10 November 2011 Resigned 10 November 2011 Resigned 17 August 2011
Directors have been in oce since the start of the nancial year to the date of this report unless otherwise stated. The names of the Company Secretaries in oce at any time during or since the end of the year were: yy Mr Paul Bowker (Appointed 18 July 2011) yy Mr Ian Hobson (Resigned 18 July 2011)
Principal activities
The Group is a provider of multidiscipline engineering, project management and asset management services to the mining and mineral, hydrocarbon, infrastructure and specialist industries. These services are provided across Australia through State oce locations in Brisbane, Perth, Adelaide and Melbourne, as well asthrough regional oces in Gladstone, Mackay, Whyalla and Newcastle, and overseas locations.
Operating results
The consolidated prot of the Group after providing for income tax amounted to $10.7 million. A summary of the Groups operating results for the year ending 30 June 2012 is below:
In thousands 2012 $ 2011 $
Revenue Profit before tax Income tax benefit/(expense) Profit for the year attributable to equity holders in the Company Basic earnings per share (cents per share) Diluted earnings per share (cents per share)
123,055 10,992 (303) 10,689 15.9 15.7
97,813 4,391 239 4,630 7.6 7.5
Directors Report
For the year ended 30 June 2012 Dividends paid or recommended
Dividends paid or declared by the Company to members since the end of the previous nancial year were:
Cents per share Total amount $000 Franked/ unfranked Date of payment
Declared and paid during the year 2012 Final ordinary for the year ended 30 June 2011 Interim ordinary for the year ended 30 June 2012 1.25 3.50 840 2,367 Franked Franked 14 September 2011 22 March 2012
Franked dividends declared and paid during the year were franked at the rate of 30 per cent.
Declared after end of year

After the balance sheet date a dividend of 5.00 cents per share has been declared by the Directors, representing a total amount of$3,371 thousand. The nancial eect of this dividend has not been brought to account in the nancial statements for the year ended 30 June 2012 and will be recognised in subsequent nancial reports.
Financial position
The net assets, including goodwill of $36.2 million, of the Group have increased to $68.6 million at 30 June 2012 from $62.1 million at30 June 2011. This increase is primarily the net result of the prot after tax of $10.7 million for the 2012 nancial year, dividends declared and paid during the year and shares bought back.
Signicant changes in state of aairs

There were no signicant changes in the state of aairs of the Company.
After balance date events

Since the end of the nancial year, the directors are not aware of any matters or circumstances not otherwise dealt with in this report of the nancial statements, that has signicantly or may signicantly aect the operations or state of aairs of the Group infutureyears.
Future developments
The Group will continue to pursue a strategy of expansion through organic growth and acquisitions that meet the Groups strategicobjectives.
Environmental regulation and performance

The Groups operations are subject to both Commonwealth and State environmental legislation. The Group has appropriate environmental management systems in place to monitor and manage compliance with existing environmental regulations and new regulations as they come into force. LogiCamms has not been ned or prosecuted for any signicant breaches of environmental regulations during the nancial year. The Australian Governments Clean Energy Legislation introduced a carbon pricing mechanism eective from 1 July 2012. The carbon pricing mechanism requires companies with operations that emit greenhouse gas emissions above a certain level to purchase carbonemissions permits. LogiCamms is not directly liable to purchase emission permits at this time, however the situation will continue to be monitored.
Information on Directors
Mr Peter Watson
Independent Non-Executive Director and Chairman Appointed2 June 2011
Mr Giles Everist
Independent Non-Executive Director Appointed 5 April 2011
Experience
Peter Watson has 25 years of international experience in the engineering, construction and services industries. Asformer Chief Executive Ocer of Global Services Group, Transeld Services (ASX:TSE) from 1999 to 2009, Peter stewarded the company through its listing in 2001 and led its transformation from a local operator to a global business. Prior to his tenure as Chief Executive, Peter undertook a variety of project and management roles with Transeld Services and TranseldConstruction. Peter is Chairman of the Nomination and Remuneration Committee, a member of the Audit and Risk Committee andamember of the Projects Committee. Peter served as Executive Chairman from 30 June 2011 until the appointment of Steve Banning as Managing Director on 10November 2011, after which Peter resumed his role as Non-Executive Chairman.
Experience
Giles Everist is a Chartered Accountant and a member of the Institute of Chartered Accountants (England and Wales). Giles joined the Group in 2011 bringing over 20 years experience. He has held senior executive roles with Coopers and Lybrand, Rio Tinto, Fluor Australia, and more recently Monadelphous Group where he was Chief Financial Ocer from 2003 to 2009, during which the company experienced signicant growth anddevelopment. Since that tenure Giles has joined a number of Boards in the public, private and not for prot sectors including as Chairman of Decmil Group Limited, SurtonTechnologies and Perth Home Care Services. Giles is a member of the Nomination & Remuneration Committee and Chair of the Audit and Risk Committee.
Current directorships held in other listed entities

yy Chairman Decmil Group since December 2011 andDirectorsince December 2009.

yy None
Directors Report
For the year ended 30 June 2012 Information on Directors (continued)
Mr Peter Wall
Independent Non-Executive Director Appointed 8 October 2007
Mr Steve Banning
Managing Director Appointed 10 November 2011
Experience
Peter has held a number of senior management positions and directorships with various companies in South Australia, predominantly with S. Smith & Son (The Yalumba Wine Company) for over 35 years. Peter is a member of the Nomination & Remuneration Committee and a member of the Audit and Risk Committee.
Experience
Steve Banning has extensive experience across the resources and energy industry, most recently as Chief Executive Ocer of Epic Energy from 2007 until 2011. In his role as CEO of Epic Energy, Steve led the business through a period of signicant growth, particularly in the hydrocarbons sector. Prior to his role as CEO of Epic Energy, Steve held roles as General Manager Commercial of Epic Energy and Group Manager of Duke Energy. Steve has a Bachelor of Science (Honours).

yy None
Directorships held in other listed entities

yy None
Mr Damian Young
Independent Non-Executive Director Appointed 11 February 2009
Experience
Damian is a Chemical Engineer and has spent most of his working life in operational and management positions in the Oil & Gas industry. Damian holds Chemical Engineering and Commerce degrees and is a Fellow of the Institute of EngineersAustralia. Damian is a member of the Nomination & Remuneration Committee and Chairman of the Projects Committee.

yy None
4 LogiCamms Financial Report 2012
Mr David Humann
Independent Non-Executive Director Appointed 26 October 2007, Resigned 10 November 2011
Information on Company Secretaries

Paul Bowker was appointed to the position of Company Secretary and General Counsel on 18 July 2011. Paul holds a Bachelor of Laws, Master of Laws, and Master ofApplied Finance and Investment. Paul is a qualied Lawyer and aMember of the Law Society of NSW as well as the AustralianInstitute of Company Directors. Paul has a regulatory and compliance background gained from working in thegovernment and corporate sectors in Perth, Sydney and London. Ian Hobson resigned from the position as Company Secretary of the Company on 18 July 2011, having been appointed in October 2007. Ian holds a Bachelor of Business, is a Fellow Chartered Accountant and a Chartered Secretary.
Experience
David Humann is a Chartered Accountant and Certied Practicing Accountant with 46 years international experience, predominantly with the accounting rm PriceWaterhouseCoopers. David was amember of the Nomination & Remuneration Committee and the Audit andRiskCommittee.

yy Chairman Mincor Limited (since November 2000) yy India Resources Ltd (20072008, rejoined in July 2010) yy Chairman Advanced Braking Technology Ltd (since 2005)
Mr Garry McGrechan
Independent Non-Executive Director Appointed 8 October 2007, Resigned 10 November 2011
Experience
Garry has over 25 years experience in the mining and materials handling industry working with blue chip clients throughout this time.

yy None
Directors Report
For the year ended 30 June 2012 Directors meetings
The number of directors meetings (including meetings of committees of directors) and number of meetings attended by each of the directors of the Company during the nancial year are:
Board Meetings Director Audit & Risk Committee Meetings Nomination and Remuneration Committee Meetings Project Committee(i) Meetings
Peter Watson David Humann Giles Everist Peter Wall Steve Banning(v) Chris Greig
(iv) (ii)
11 4 11 11 8 4 11
(iii)
11 4 11 11 8 4 11 4
4 1 4 4 3
4 1 4 4 3
2 1 2 2 2 2
2 1 2 2 2 2
3 3 3
3 3 3
Damian Young Garry McGrechan

A Number of meetings attended
B Number of meetings held during the time the director held office during the year (i) The Projects Committee was established in April 2012 (ii) David Humann resigned effective 10 November 2011 (iii) Gary McGrechan resigned effective 10 November 2011 (iv) Chris Greig resigned effective 17 August 2011 (v) Steve Banning was appointed effective 10 November 2011
Corporate governance statement

This statement outlines the main corporate governance practices in place throughout the nancial year, which comply with the ASXCorporate Governance Council recommendations, unless otherwise stated.
Board of directors
Role of the board
The Board of Directors of the Company is responsible for the overall corporate governance of the Company and has adopted as aguiding principle that it act honestly, diligently and fairly in accordance with the law and in the interests of the Shareholders with aview to building sustainable value for them, the Companys employees and other stakeholders in the Company. The Board endorses the ASX Principles of Good Corporate Governance and Best Practice Recommendations (ASX Recommendations), and has adopted corporate governance charters and policies reecting those recommendations to the extent appropriate having regard to the size and circumstances of the Company. The Company is committed to ensuring that its corporate governance systems maintain the Companys focus on transparency, responsibility and accountability. The Board has delegated responsibility for operation and administration of the Company to the Managing Director and executivemanagement. To assist in the execution of its responsibilities the Board has established an Audit and Risk Committee, a Nomination and Remuneration Committee and a Projects Committee. These committees have charters and operating procedures, which are reviewed on a regular basis. Copies of the Companys corporate governance policies are available on the Companys website at www.logicamms.com.au.
Board charter
The Board has adopted a Board Charter. Under the Board Charter, the Boards role and responsibilities are consistent with those set out in the ASX Principles and include: i. setting the strategic direction of the Company, establishing goals to ensure that these strategic objectives are met and monitoring the performance of management against these goals and objectives; ii. ensuring there are adequate resources available to meet the Companys objectives; iii. appointing the Managing Director, evaluating the performance and determining the remuneration of senior executives, and ensuring that appropriate policies and procedures are in place for recruitment, training, remuneration and succession planning; iv. evaluating the performance of the Board and its Directors on an annual basis; v. determining remuneration levels of Directors; vi. approving and monitoring nancial reporting and capital management; vii. approving and monitoring the progress of business objectives; viii. ensuring that any necessary statutory licences are held and compliance measures are maintained to ensure compliance with the law and licence(s); ix. ensuring that adequate risk management procedures exist and are being used; x. ensuring that the Company has appropriate corporate governance structures in place, including standards of ethical behaviour and a culture of corporate and social responsibility; xi. ensuring that the Board is, and remains, appropriately skilled to meet the changing needs of the Company; xii. ensuring procedures are in place for ensuring the Companys compliance with the law; and xiii. nancial and audit responsibilities, including the appointment of an external auditor and reviewing the nancial statements, accounting policies and management processes. The Managing Director is responsible to the Board for the day-to-day management of the Group.
Director independence
Currently four of the ve Directors satisfy the criteria for independence as outlined in the ASX Recommendations. The Board considers that the Chairman, Mr Peter Watson, is an independent director of the Company even though he served asExecutive Chairman for just over four months in 2011 while the Board searched for a new Managing Director of the Company. MrWatson performed this executive role temporarily for a relatively short period of time while the Company undertook the search process. Mr Watson was originally appointed as a non-executive director and the Board does not consider that Mr Watson was in anexecutive role for a suciently long period of time so as to prevent the exercise of impartial judgement by him since returning tohis position as a non-executive director of the Company.
Director and executive education

The Company has a process to educate new Directors about the nature of the business, current issues, the corporate strategy, the culture and values of the Company, and the expectations of the Company concerning performance of Directors. In addition Directors are also educated regarding meeting arrangements and Director interaction with each other, senior executives and other stakeholders. Directors are given access to continuing education opportunities to update and enhance their skills and knowledge. The Company also has a process to educate new senior executives upon taking such positions. The induction program includes reviewing the Companys structure, strategy, operations, nancial position and risk management policies. It also familiarises the individual with the respective rights, duties, responsibilities and roles of the individual and the Board.
Independent professional advice and access to company information

Each Director has the right of access to all relevant Company information and to the Companys executives and, subject to prior consultation with the chairperson, may seek independent professional advice from a suitably qualied adviser at the Companys expense. The Director must consult with an adviser suitably qualied in the relevant eld, and obtain the chairpersons approval of thefee payable for the advice before proceeding with the consultation. A copy of the advice received by the Director is made available to all other members of the Board.
Chairperson
The Board has appointed an independent Chairperson, Mr Peter Watson. Peter was appointed as an independent Non-Executive Director responsible for the leadership and conduct of the Board. Peter acted in the role of Executive Chairman from 30 June 2011 to10 November 2011 as an interim measure until the Company appointed Mr Steve Banning as the new Managing Director.
Directors Report
For the year ended 30 June 2012 Board of directors (continued)
Composition of the board
The Board of the Company currently comprises four Non-Executive Directors and one Executive Director as follows: Non-Executive Directors Peter Watson Giles Everist Peter Wall Damian Young Executive Directors Steve Banning Peter Watson refer comments above under the section Director independence. As a team, the Board brings together a broad range of qualications and a diversity of experience to provide strategic guidance for, and eective oversight of, management. The Constitution requires a minimum number of three Directors. The maximum number of Directors is xed by the Board but may not be more than 10, unless the members of the Company in general meeting resolve otherwise. The relevant provisions in the Constitution and the Corporations Act determine the terms and conditions relating to the appointment and termination of Directors. All Non-Executive Directors, other than the Managing Director, are subject to re-election by rotation every three years.
Conict of interest
In accordance with the Corporations Act and the Constitution, Directors must keep the Board advised, on an ongoing basis, of any interest that could potentially conict with those of the Company. Where the Board believes a signicant conict exists, the Director concerned will not receive the relevant papers and will not be present at the Board meeting whilst the matter is being considered.
Independent professional advice and access to company information

If a Director considers it necessary to obtain independent professional advice to properly discharge the responsibility of his/her oce as a Director then, subject to the approval of the Board to the incurrence of the expense, the Director has the right to seek thatindependent professional advice at the Companys expense.
Audit and Risk Committee

The Board has established an Audit and Risk Committee, with responsibility for establishing and maintaining a framework of internal control and ethical standards. This includes internal controls to deal with both the eectiveness and eciency of signicant business processes, the safeguarding of assets, the maintenance of proper accounting records, and the reliability of nancial information as wellas non-nancial considerations such as the benchmarking of operational key performance indicators. The external auditors, Managing Director and Chief Financial Ocer are invited to Audit and Risk Committee meetings at the discretion of the committee. The Committee comprises three Non-Executive Directors (Giles Everist as Chair, Peter Watson and Peter Wall). The Board considers the composition of the Audit and Risk Committee satisfactory to properly discharge the duties of the Committee. The Managing Director and the Chief Financial Ocer declared in writing to the Board that the nancial records of the Company for the nancial year have been properly maintained, the Companys nancial reports for the nancial year ended 30 June 2012 comply with accounting standards and present a true and fair view of the Companys nancial condition and operational results.
Risk management
Oversight of the risk management system
The Group has a number of internal risk oversight and management policies and internal compliance and control systems, including the Companys Risk Management Policy. The Risk Management Policy sets out the processes to understand and manage the uncertainties facing the Company in order to mitigate and limit loss and to also enable potential gains from opportunities created through an evaluation and management of risk considerations. To achieve these objectives, LogiCamms is committed toimplementing and embedding the following within the Company: yy An eective Risk Management Framework consistent with ISO 31000:2009 for identifying, assessing and managing risks, in line with our risk appetite, in order to support the achievement of our business objectives. yy Compliance with applicable laws, regulations and governance standards in areas in which we operate. yy A standard approach to the management of risk and to the acceptable levels of risk throughout the business. yy Processes and systems to empower our sta to proactively identify and address risk issues and events. yy Identication, management and reporting on key business risks across the organisation. yy Providing risk management information and training programs. yy Developing measures to assess the eectiveness of risk management practices, monitoring performance and take steps to continuously improve. The Managing Director and the Chief Financial Ocer have stated to the Board in writing that for the year ended 30 June 2012: i. the Groups nancial report is complete and presents a true and fair view, in all material respects, of the Groups nancial condition and operational results and are in accordance with the relevant accounting standards; ii. the statement at (i) is founded on a sound system of risk management and internal compliance and control which implements the policies adopted by the Board; and iii. the Groups risk management and internal compliance is operating eciently and eectively in all material respects.
Risk prole, management and control

Risks identied by the Audit and Risk Committee or management are raised and discussed regularly at Board meetings with the aim ofidentication, assessment and appropriate management of those risks. The Groups risk prole is minimised by establishing practices such as; i. capital and operational expenditure is approved via detailed budgets signed o by the Board with performance reviewed monthly, and forecasts revisited regularly; ii. occupational health and safety standards are stringently managed throughout the business; iii. business transactions are properly authorised and executed; iv. attracting and retaining quality and ethical personnel through recruitment practices, training and annual performance reviews; and v. consideration of environmental obligations and compliance.
Ethical standards
All directors, managers and employees are expected to act with the utmost integrity and objectivity, striving at all times to enhance the reputation and performance of the Group. Every employee has a nominated supervisor to whom they may refer any issues arising from their employment.
Code of conduct
The Group has established a Code of Conduct which aims to develop a consistent understanding of, and approach to, the desired standards of conduct and behaviour of the Directors, ocers, employees and consultants in carrying out their roles for the Group. In summary, the Code requires that at all times all Group personnel act with the utmost integrity, objectivity and in compliance with the letter and spirit of the law and Group policies. The Directors are satised that the Group has complied with its policies.
Directors Report
For the year ended 30 June 2012 Risk management (continued)
Trading in Company securities by directors and employees
The Company has adopted a Share Trading Policy in order to ensure that the Company maintains investor condence in the integrity of the Companys internal controls and procedures and to provide guidance on avoiding any breach of the insider trading laws. Under the policy, employees, including all Executive and Non-Executive Directors, are prohibited from trading in the Companys securities, except during a trading window as notied by the Company Secretary following the public release by the Company toASXof: i. preliminary full year results; ii. the annual report; iii. half year results; and iv. any prospectus. Furthermore, an employee or Director who is in possession of price sensitive information, which is not generally available to the market, must not deal in the Companys securities at any time, even during a trading window. The Share Trading Policy provides that if a Director wishes to buy or sell Company securities, they are required to notify the Managing Director of their intention. In addition, any changes in a Directors direct or indirect interest in Company securities must beimmediately reported to the Company Secretary so that appropriate disclosure can be submitted to ASX within 5 business days.
Communication with shareholders

The Company, as a disclosing entity pursuant to section 111AR of the Corporations Act, complies with the continuous disclosure requirements of Chapter 3 of the ASX Listing Rules and section 674 of the Corporations Act. Subject to the exceptions contained in the Listing Rules, the Company discloses to the ASX any information concerning the Company which is not generally available and which a reasonable person would expect to have a material eect on the price or value of the shares. The Company is committed to observing its disclosure obligations under the Corporations Act and its obligations under the Listing Rules. The Company has adopted a Continuous Disclosure Policy in relation to the information disclosures and relevant procedures. The Managing Director is responsible for the administration of the policy and coordinating education within the Company about its disclosure obligations. The Company Secretary has been nominated as the person responsible for communications with the Australian Stock Exchange (ASX). This role includes responsibility for ensuring compliance with the continuous disclosure requirements in the ASX Listing Rules and overseeing and co-ordinating information disclosure to the ASX. The Companys objective is to actively communicate with its shareholders in order to meet the expectations of its shareholders and actively promote shareholder involvement in the Company. The Companys communications strategy promotes the communication of information to shareholders through the distribution of an annual report, half-year reports, and announcements through the ASX. All releases provided to ASX are posted on the Companys website at www.logicamms.com.au. The Board encourages the participation of shareholders at the Annual General Meeting to seek to ensure a high level of accountability and discussion in relation to the Companys performance. Shareholders are encouraged to participate in the Annual General Meeting through asking questions and making comments. Executives of the Company, including the Managing Director and Chief Financial Ocer on occasion meet with analysts and investors. Any presentations made are released to the ASX. The external auditor attends the annual general meetings to answer questions concerning the conduct of the audit, the preparation and content of the auditors report, accounting policies adopted by the Company and the independence of the auditor in relation to the conduct of the audit.
Diversity
The Board is committed to putting in a policy in relation to diversity on the Board and in the Groups senior executive and other positions ensuring appropriate gender, age, ethnic and cultural diversity. Due to historical factors, such as the size of the Company, scale of operations and availability of resources, a diversity policy has not previously been in place. However, it is intended that adiversity policy will be adopted that includes: yy a process to achieve the appropriate mix of skills and diversity in the Company; yy measurable objectives in relation to diversity; and yy appropriate representation of women employees in the Company, in senior executive positions and on the Board.
Remuneration report - audited

This Remuneration Report outlines the Key Management Personnel (KMP) remuneration arrangements of the Group in accordance with the requirements of the Corporations Act 2001 and its Regulations. For the purpose of this report KMP of the Group are dened as those persons having authority and responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly, including any directors (whether executive or otherwise).
Contents
The report includes: yy an overview of the Companys approach to executive reward; yy the governance of remuneration arrangements; yy the components of executive remuneration; yy the remuneration outcomes for the 2012 nancial year and the links between remuneration and company performance; yy an overview of executive service agreements; yy remuneration for the 2012 nancial year; and yy Non-Executive Director remuneration.
Overview of the Companys approach to Management Reward

The Board has adopted a remuneration policy that takes into account the current size and nature of the Companys operations. Remuneration of KMPs is set at levels to reect market conditions and encourage the continued services of KMPs including bybenchmarking KMP remuneration to determine where roles are currently positioned, reviewing base salary, short-term incentives and long-term incentives. The Groups remuneration strategy recognises and rewards performance in a way that is consistent with general practices in the markets in which the Group operates. The Groups remuneration philosophy is focused on the following key principles: yy Alignment to sustainable long-term value creation yy Assist the attraction and retention of highly skilled employees yy Be competitive within the global markets in which the Group operates yy Alignment is best achieved through high levels of equity ownership yy Provide high rewards for true outperformance yy Simple and transparent remuneration framework yy Consistent remuneration framework across the organisation yy Strategically align talent and succession planning for future growth
Governance of remuneration arrangements

To determine the remuneration of its KMP the Company has a Nomination & Remuneration Committee. The Committee makes recommendations to the Board in relation to the remuneration of KMPs, including the xed and at risk components of remuneration, which currently includes STI and LTI Plans as further described below. Based on the information and recommendations provided by the Committee, the Board applies its discretion to determine remuneration, including any changes to xed components of KMP remuneration as well as any awards under the STI and LTI Plans. The Committee assists the Board in establishing human resources andcompensation policies and practices including the specic remuneration (including base pay, incentive payments, bonuses, equity awards, superannuation, retirement rights, termination payments and services contracts) of the Managing Director and other KMP. The proceedings of each Committee meeting are reported directly to the Board. The Remuneration Committee consists only ofNon-Executive Directors. LogiCamms engaged external consultants to assess the market competitiveness of remuneration in the 2012 nancial year. Theconsultants engaged were Hay Group, with terms of reference to assess market data on remuneration for comparable companies and positions. Hay Group did not and was not engaged to provide a remuneration recommendation and, as such, no disclosures arerequired under the Corporations Act in relation to the role of Hay Group.
11
Directors Report
For the year ended 30 June 2012 Remuneration report - audited (continued)
2012 Key Management Remuneration Framework
During the year ended 30 June 2012 the Company rened its Key Management Remuneration Framework. This followed acomprehensive internal and external assessment in 2011 of our remuneration practices, including the commissioning of a review ofour remuneration framework by external advisors. The primary objective of LogiCamms management remuneration strategy is creating a framework that supports sustainable growth over the long term, recognising that this is in the interest of all stakeholders. This framework seeks to reward, retain, and motivate senior executives in a manner aligned with shareholders. LogiCamms 2012 nancial year saw earnings improvements in the business compared to the 2011 nancial year. For the 2012 nancial year, Earnings Per Share (EPS) was 15.9 and Total Shareholder Return (TSR) was 16.75. Under the Key Management Remuneration Framework the STI and LTI outcomes for 2012 were as follows:
Incentive Remuneration Outcomes
Short Term IncentiveOutcomes Long Term IncentiveOutcomes
STI payout for KMP was 100% of the target opportunity due to the achievement of Company and individual performance measures. The STI payout will be in the form of cash being payable in September2012. For 2012 there were 4 participants in the LTI, being those current KMPs listed below. They have been awarded the Performance Rights and Share Appreciation Rights set out in the table on page 1819.
This Report specically sets out remuneration information for the key people who can directly inuence the long term strategic direction of the Company and had the authority for planning, directing and controlling the aairs of the Group during the nancial year ended 30 June 2012. They include the Managing Director and other key executives (collectively, KMP) and Non Executive Directors, of the Company as set out below.
Name Title
Non-Executive Directors Peter Watson Giles Everist Peter Wall Damian Young KMP Steve Banning Matthew Adamo Karsten Guster Flora Furness Managing Director Chief Financial Officer Strategy & Developments Director People & Culture Director Chairman Director Director Director
Components of Remuneration
Remuneration and other terms of employment for the Managing Director and other KMP are formalised in Executive Service Agreements and incentive plans. The total remuneration packages for these KMP contain: yy A xed component Base salary including superannuation. This is expressed as a specic amount that the executive may take in aform agreed with the Company and is determined based on market reference, the scope and nature of the individuals role, their performance and experience. yy At risk components The Board considers that the nancial and operational performance and prospects of the Company are strongly linked to creating shareholder wealth. Accordingly, the Board has put in place at-risk components to remuneration based on success in delivering on pre-dened targets. At-risk components are in the form of: yy Short Term Incentive (STI) payable in cash. Outcomes are based on LogiCamms nancial and operational performance over the nancial period, in addition to individual performance measures; and yy Long Term Incentives (LTI) includes the issue of Performance Rights and Share Appreciation Rights that are subject to the satisfaction of performance hurdles. These LTI instruments are issued for the purposes of aligning their interests with those ofshareholders by rewarding long term sustainable shareholder value creation. LTI outcomes are based on TSR and EPS growth targets.
12
Fixed Remuneration
The xed remuneration component of sta salaries includes a base salary and superannuation. Fixed remuneration may be allocated at the executives discretion to cash, superannuation (subject to legislative minimum), motor vehicles and certain other benets. The xed remuneration component is determined based on the scope and nature of the individuals role, their performance and experience. In nancial year 2012, LogiCamms engaged external consultants to enable the Company to assess the market competitiveness of remuneration within the business, including the xed remuneration levels. LogiCamms sets the xed remuneration based on the assessment of market data of external consultants as well as through the Companys internal metrics and data. KMPs may choose to receive remuneration by way of salary sacrice, such as motor vehicles and superannuation.
Short Term Incentive (STI)

Under the terms of the STI, each participant has an annual target STI award based on a percentage of base salary for the year. Paymentof the individuals target STI is dependent on performance against the following key performance drivers: yy Financial and Operational Performance yy Safety yy People Management yy Cash Management yy Customer Feedback yy Individual Performance These non-nancial performance measures were chosen in order to drive leadership performance and behaviours consistent with achieving the Groups objectives in areas including safety, succession planning and talent management. For Financial Year 2012, KMP had a maximum STI opportunity ranging from 30% to 35% of their xed remuneration where targets aremet. However, if the threshold performance for a measure is not met, the payment may be reduced. The STI payment is subject to the participant being employed with the Company at the time the STI is due to be paid. STI awards are determined after a review of performance against the key performance drivers by the Board at the end of the nancialyear.
Long Term Incentive (LTI)

For 2012 nancial year, there were 4 participants in the LTI Plan, being each of the current KMP listed above. LTI awards were split into an issue of Performance Rights and Share Appreciation Rights (SARs). yy 50% of the award was granted as Performance Rights. Each Performance Right represents a right to be issued one share at a future point in time at a nil exercise price. yy 50% of the award was granted as SARs. Each SAR represents a right to receive a payment equal to the positive dierence between the share price at the allocation date during the year and the share price at the vesting date in the future. The total value of all SARs on the vesting date will be settled via the provision of shares of an equivalent value. SARs only reward share price growth and only payout for the increase in value over the starting share price. Each of the Performance Rights and SARs granted under the LTI Plan are subject to performance hurdles. The hurdles used to determine performance are Relative Total Shareholder Return (Relative TSR) and Absolute EPS growth (Absolute EPS): yy 50% of the granted Performance Rights and SARs are subject to the Relative TSR measured against the S&P Small Ordinaries Index over the performance period. yy 50% of the granted Performance Rights and SARs are subject to the Absolute EPS compound growth of 10% per annum over the performance period. Performance measures for the Relative TSR based award and the Absolute EPS based award are mutually exclusive, meaning that if one hurdle is not met, there is still the ability to earn under the other hurdle. The Board tests the TSR and EPS performance measures upon nalisation of the annual accounts.
13
Directors Report
The vesting criteria with respect to the 2012 LTI are included in the table below.
Vesting Criteria Detail
Performance Period
The performance period with respect to the 2012 LTI awards is 2 years, from 1 July 2011 to 30 June 2013. Vesting of the LTI will then be subject to an additional 1 year service requirement. As such no vesting of the FY12 grants will occur until 30 June 2014. The 2 year performance period is a transitionary arrangement, given that Financial Year 2012 is the first year of the scheme. It is anticipated that subsequent awards under the LTI Plan will include a 3year performance condition.
Thresholds for Relative TSR
For those Performance Rights and SARs subject to Relative TSR performance vesting will occur based on the percentile ranking of the Companys Total Shareholder Return against all companies included in the S&P Small Ordinaries Index for the relevant performance period as follows: yy Below 50th percentile, no vesting yy Between 50th and 75th percentile, pro rata vesting between 50 100% yy Equal or greater than 75th percentile, 100% vesting
Threshold for Absolute EPS
For those Performance Rights and SARs subject to Absolute EPS performance vesting will occur based on the EPS compound annual growth rate achieved over the performance period. The Absolute EPS target of 10% compound growth per annum, off a base of 8.5 cps, must be achieved for vesting to occur. If EPS growth is below 10% per annum then no vesting will occur. No retesting will be permitted for either Relative TSR or Absolute EPS.
Retesting
If a change of control of the Company occurs all Performance Rights will be subject to accelerated vesting on a pro rata basis with respect to the time elapsed since issue. On cessation of employment unvested Performance Rights will lapse unless the Board allows them to vest in circumstances of total and permanent disability, death or other circumstances determined by the Board. Total Shareholder Return (TSR) TSR measures the performance of an ordinary LogiCamms Limited share (including any cash dividends and other shareholder benets paid during the period) relative to the other companies in the S&P Small Ordinaries Index over the performance period. The Board believes that TSR is an appropriate performance hurdle because it is aligned with long term value creation for shareholders. The TSR measures the return received by shareholders from holding shares in the Company over the performance period. Achievement of theRelative TSR target will reward senior executives when the Company outperforms comparable companies. Earnings Per Share (EPS) EPS measures the prot attributable to shareholders per issued share. Compound annual growth in Absolute EPS growth equal to orgreater than 10% over the performance period is required for the relevant threshold under the LTI to be met. Absolute EPS growth is a forward looking performance measure that drives continued and sustainable growth. Other terms The LTI dollar value determined for each executive is calculated based on a percentage of the executives annual xed remuneration and for the KMP ranges from 40% to 50%. This level of LTI is in line with current market practice. The number of Performance Rights and SARs awarded to each executive is calculated by dividing the LTI dollar value by the estimated fair value of the Performance Right or SARs, as the case may be. The Company engaged PriceWaterhouseCoopers to determine a fair value for the Performance Rights and SARs in relation to the 2012 awards. Performance Right and SARs granted under the LTI Plans carry no voting or dividend entitlements. Currently, based on the number ofPerformance Rights and SARs issued and held pursuant to the STI and LTI Plans and having regard to the share price as at 30 June 2012 should all of these securities convert to shares this would represent 1.0% of the Companys issued share capital.
14
Proportions of xed and at risk remuneration

The table below also set out LogiCamms target mix of xed and at risk (STI & LTI) components for each of the KMP as a percentage oftotal remuneration:
Name Title Fixed Remuneration STI LTI
Steve Banning Matthew Adamo Karsten Guster Flora Furness
Managing Director Chief Financial Officer Strategy & Developments Director People & Culture Director
54% 59% 59% 59%
19% 18% 18% 18%
27% 23% 23% 23%
The outcome of the STI and LTI awards for the KMP for 2012 were as follows:
Awards under the 2012 Incentive Plans and the Links to Company Performance
The 2012 nancial year for LogiCamms saw nancial performance improve signicantly on the 2011 nancial year. The budgets that were set by the Board for the 2012 nancial year were exceeded in aggregate for the business. As a result of the nancial performance of the Company and the achievement of targets set by the Board, the incentive plans were paid out at target levels to the KMPs. As 2012 is the rst year that the STI and LTI incentive plans have been put in place, there is no historical comparison data on the payout levels against previous years.
2012 Short Term Incentive Awards

The table below sets out the STI awards payable in cash to KMPs under the STI Plan for Financial Year 2012.
Percentage of Target Award Achieved
Name
Key Management Personnel Title
STI Award
Steve Banning(i) Matthew Adamo Karsten Guster Flora Furness(ii)

(i)
$88,000 $107,000 $112,000 $51,000
100% 100% 100% 100%
Steve Bannings STI Award is pro rata based on commencement under the plan on 1 November 2011.
(ii) Flora Furness STI Award is pro rata based on commencement under the plan on 1 January 2012.
2012 Long Term Incentive Awards

The table below sets out the Performance Rights and Share Appreciation Rights awarded under the LTI Plan for the 2012 Financial Year. These Performance Rights and SARs were awarded on 20 February 2012.
Name Key Management Personnel Title Performance Rights Awarded (#) Fair Value at Grant per right SARs Awarded (#) Fair Value at Grant per SAR
Steve Banning(iii) Matthew Adamo Karsten Guster Flora Furness
249,014 145,443 152,228 54,877
$0.595 $0.595 $0.595 $0.595
825,065 481,901 504,379 181,826
$0.165 $0.165 $0.165 $0.165
(iii) Subject to shareholder approval, fair value estimate used.
No amount is payable by KMP for the award of the Performance Rights or SARs.
15
Directors Report
Consequences of performance on shareholder wealth
In considering the Groups performance and benets for shareholder wealth, the Nominations and Remuneration Committee have had regard to a number of factors including prot (as determined under Australian Accounting Standards), dividends, return on equity and the performance of the share price. In considering the Groups performance and benets for shareholder wealth, the Remuneration Committee has regard to the following indices in respect of the current nancial year and the previous four nancial years.
2012 2011 2010 2009 2008
Profit attributable to owners of the Company (000s) Dividends paid (000s) Change in share price Return on equity
$10,689 $3,208 $0.08 15.6%
$4,630 $4,066 $0.14 7.4%
$5,579 $2,921 $0.29 10.6%
$4,592 $1,998 -$0.38 14.9%
$2,915 $1,613 -$0.05(A) 10.5%
(A) The share price movement is from 30 June to 30 June the following year, except for 2008 in which the starting share price is on the date of ASX listing of the Company, being 4 December 2007.
Prot is considered as one of the nancial performance targets in setting the STI. Prot amounts for 2008 to 2012 have been calculated in accordance with Australian Accounting Standards (AASBs). The overall level of Key Management Personnel compensation takes into account these and other factors in assessing the performance of the Group and KMP over a number of years. When comparing nancial year 2012 to nancial year 2011, which are the most relevant years to the current set of KMP and given the current incentive scheme commenced in nancial year 2012, the Groups prot from ordinary activities after tax has grown by 131%. During the same period, total KMP compensation has decreased by 14%.
Overview of the Companys Service Contracts with Key Management Personnel

It is the Companys policy that service contracts for KMP excluding the Managing Director, are unlimited in term but capable oftermination on 3 months notice. The Company retains the right to terminate a KMP contract immediately by making payment ofbetween 3 and 12 months pay in lieu of notice. The KMP are also entitled to receive on termination of employment their statutory entitlements of accrued annual and long service leave, together with any superannuation benets. The KMP have no entitlement to termination payment in the event of removal for misconduct.
Overview of the Companys service contracts with KMP

Mr Bannings employment is for a xed initial term of 3 years ending on 18 October 2014 (End Date). After the End Date Mr Bannings employment may continue unless terminated beforehand. Before the End Date, LogiCamms may terminate Mr Bannings employment by giving 12 months notice or a lesser period of time by making a payment in lieu of notice for the dierence between that amount of time and 12 months. After the End Date, LogiCamms may terminate Mr Bannings employment by giving 6 months notice or a lesser period of time by making a payment in lieu of notice for the dierence between that amount of time and 6 months. Ontermination with notice by LogiCamms, Mr Banning will be entitled to: a. payment of accrued but untaken annual leave; b. the total incentive for target performance under the STI and LTI, pro rata for the period of notice given by the Company; and c. subject to applicable performance hurdles being met, all shares to which Mr Banning is entitled under the STI and LTI (such shares will vest within three months of termination). Before the End Date, Mr Banning may terminate his employment by notice to LogiCamms if LogiCamms commits a material breach of the Services Agreement and fails to remedy the breach within 10 Business Days of receiving notice of it, or if his role and duties are materially reduced at the instigation of the Board by comparison to his role and duties as contemplated under the Service Agreement. If the employment is terminated by Mr Banning on either of these grounds, then Mr Banning will be entitled to6months remuneration on termination. After the End Date, Mr Banning may terminate his employment by giving 6 months notice to LogiCamms. On termination by Mr Banning, Mr Banning will be entitled to: a. payment of accrued but untaken annual leave; b. the total incentive for target performance under the STI and LTI, pro rata for the period of notice given by the Company; and c. all Shares to which Mr Banning is entitled under the STI and LTI (such Shares will vest within three months of termination).
16
LogiCamms may terminate Mr Bannings employment without notice in the case of misconduct and in certain other circumstances. In this event, Mr Banning will not be entitled to any payment or award under the Companys incentive plans, but will be entitled to payment in lieu of accrued but untaken annual leave.
Non-executive director remuneration

Remuneration Policy The Board seeks to set aggregate remuneration of non-executive directors at a level that provides the Group with the ability to attract and retain directors of appropriate calibre, whilst incurring a cost that is acceptable to shareholders. The amount of aggregate remuneration sought to be approved by shareholders and the fee structure is reviewed annually against fees paid to non-executive directors (NEDs) of comparable companies. The Companys constitution and the ASX listing rules specify that the NED fee pool shall be determined from time to time by ageneral meeting. The latest determination by shareholders approved an aggregate fee pool of up to $400,000 with such fees tobeallocated to the Directors as the Board of Directors may determine. Structure The remuneration of NEDs consists of directors fees and committee fees. NEDs do not receive retirement benets. Each NED, except the Board Chairman and Mr Giles Everist received a base fee of $45,000 inclusive of superannuation for being adirector of the Group. The Board Chairman, Mr Peter Watson received a base fee of $140,000 inclusive of superannuation for the period, share based payments of $30,676 in addition to $48,000 for serving as Executive Chairman from 1 July 2011 until 10 November 2011. Mr Giles Everist received a base fee of $75,000 inclusive of superannuation. An additional fee may be payable for a director (except for the Board Chairman) who is a chair of a Board committee. The payment ofadditional fees for serving on a committee recognises the additional time commitment required by NEDs who serve on sub-committees. No additional fees were paid for serving on a committee in the 2012 nancial year. NEDs do not participate intheCompanys STI or LTI plans.
17
18
Remuneration report - audited (continued)
Directors and executive ocers remuneration (Consolidated) audited
Details of the nature and amount of each major element of remuneration of each Key Management Personnel are:
Short-term PostOther employment long term (A) Share-based payments
Directors Report
For the year ended 30 June 2012
in AUD
Salary & fees $ Total $ $ Total $
STI cash bonus $
Nonmonetary benefits $ Termination benefits $ Options and rights $
Superannuation benefits $
Proportion of remuneration performance related %
Value of options and rights as proportion of remuneration %
Directors 41,284 3,716 1,749 8,630 619 269,944 24,268 4,899 105,547 1,749 20,539 1,691 112,200 1,749 28,749 235 410 551 41,479 3,733 8,932 1,749 43,033 3,716 9,732 41,284 3,716 235 45,235 56,481 54,144 28,749 112,435 22,230 404,768 9,249 45,551 1,749 43,033 3,716 46,749 18,750 18,750 1,749 76,749 76,749 0.5% 17.2% 16.5% 0.2% 0.1% 1.2%
Non-executive directors
2012
75,000
Giles Everist
2011
18,750
2012
41,284
Peter Wall
2011
41,284
2012
41,284
Damian Young
2011
41,479
David Humann (resigned 10 November 2011)
2012
27,000
2011
112,200
Garry McGrechan (resigned 10 November 2011)
2012
18,790
2011
269,944
Chris Greig (resigned 17 August 2011)
2012
6,881
2011
41,284
Executive Directors
Peter Watson (Executive Chairman 1 July to 10 November 2011) 47,000 1,749 189,749
2012
188,000
30,676
220,425 47,000
13.9%
2011
47,000
2012 444,954
341,649
88,000
1,749
431,398
27,257 40,046
7,615 8,083
488,466
45,194(B) 410
511,464 981,959
26.0%
8.8% 0.0%
Steve Banning, ManagingDirector (appointed 10 November 2011)
2011
Adam, Keats, FormerManaging Director (resigned 30 June 2011)
2012
2011
444,954
Short-term
PostOther employment long term (A)
Share-based payments
in AUD
Salary & fees $ Total $ $ Total $
STI cash bonus $
Nonmonetary benefits $ Termination benefits $ Options and rights $
Superannuation benefits $
Proportion of remuneration performance related %
Value of options and rights as proportion of remuneration %
Executives
Matthew Adamo, ChiefFinancial Officer (appointed 14 February 2011) 1,749 1,749 365,981 25,000 6,516 220,645 618,142 478,072 27,572 8,398 108,109 622,151 110,280 9,925 2,003 60,000 182,208 22.4% 423,490 27,641 7,490 117,160 575,781 23.2%
2012
314,741
107,000
20.3% 32.9% 17.4% 35.7%
2011
110,280
Karsten Guster, Strategy &Development Director
2012
364,323
112,000
2011
365,981
Flora Furness, People &Culture Director (appointed 1 November 2011) 1,749 1,749 20,988 2,124,747 1,936,710 135,404 29,315 594,013 124,143 30,332 221,633 443,854 25,000 7,814 135,066 14,517 2,464 221,633 (24,470) 250,770 246,239 17,414 4,365 9,963 277,981 349,210 727,438 296,364 2,797,219 542,188 3,237,630
2012
193,490
51,000
21.9% 3.8%
3.6% 7.0% 34.5%
2011
Paul Harrison, ChiefOperations Officer (to 1 November 2011)
2012
133,317
2011
415,854
28,000
Total directors and executiveoffice
2012
1,745,759
358,000
Remuneration
2011
1,908,710
28,000
(A) Comprises long service leave.
(B) Fair value estimated at balance date and will be determined once approved by shareholders.
19
Directors Report
Equity instruments
KMP disclosed below were issued options, Performance Rights or SARs as detailed below that impact on compensation in the 2012 orsubsequent reporting periods. The service or performance criteria used to determine the number of options, Performance Rights or SARs issued are set out earlier inthis report in the discussion of the Companys LTI Plan. No terms of equity-settled share-based payment transactions have been altered or modied by the issuing entity since the date ofgrant. All options, Performance Rights and SARs were provided at no cost to the recipients. All options, Performance Rights and SARs expire on the earlier of their expiry date or termination of the individuals employment.
Analysis of Incentives included in remuneration

Details of the vesting prole of the Options, Performance Rights and SARs granted to KMP and impacting on compensation in the 2012 reporting period or subsequent reporting periods that are still outstanding are detailed below.
Fair value per instrument at grant date ($) % Vested in Year % Forfeited in Year Financial Years in which Grant Vests
Instrument
Number
Grant Date
Damian Young Peter Watson Steve Banning(1) Karsten Guster
Options Performance Rights Performance Rights SARs Performance Rights Performance Rights SARs
100,000 200,000 249,014 825,065 140,000 152,228 504,379 51,667 145,443 481,901 54,877 181,826
30-Nov-10 10-Nov-11 20-Feb-12 20-Feb-12 31-Aug-10 20-Feb-12 20-Feb-12 30-Jun-11 20-Feb-12 20-Feb-12 20-Feb-12 20-Feb-12
$0.229 $0.810 $0.595 $0.165 $0.890 $0.595 $0.165 $1.120 $0.595 $0.165 $0.595 $0.165
2012, 2013, 2014 2014, 2015, 2016 2014 2014 2013 2014 2014 2013 2014 2014 2014 2014
Matthew Adamo
Performance Rights Performance Rights SARs
Flora Furness
Performance Rights SARs
(1) Subject to shareholder approval.
110,000 Performance Rights of Paul Harrison with a value of $97,900 lapsed upon resignation on 1 November 2011. 100,000 options ofChris Greig with a value of $8,529 lapsed unexercised on 30 April 2011.
Exercise of options or Performance Rights

During the reporting period, 122,500 shares were issued to Karsten Guster, 135,000 shares were issued to Paul Harrison, and 103,333shares were issued to Matthew Adamo on the exercise of Performance Rights granted in prior years as compensation. Noexercise price was payable on exercise of the Performance Rights. The fair value at grant date of each Performance Right that wasexercised was $0.89 for Karsten Guster and Paul Harrison and $1.12 for Matthew Adamo. No other options or Performance Rights previously granted to KMPs were exercised during the reporting period.
Non-compliance with ASX principles and recommendations

Recommendation 6.1 Communications policy
A communications policy has been prepared, but is yet to be formally adopted by the Board.
Events subsequent to reporting date

There are no material events subsequent to balance date that management is aware of that require disclosure.
Likely developments
The Group will continue to pursue a strategy of expansion through organic growth of our existing oering and client base and acquisitions that t our strategic needs.
Directors interests
The relevant interest of each Director in the shares, options and Performance Rights issued by the Company at the date of this report is as follows:
Director Ordinary shares Options over ordinary shares Performance Rights Share Appreciation Rights
Mr Peter Watson Mr Giles Everist Mr Peter Wall Mr Damian Young Mr Steve Banning
388,835 510,000 127,001 48,750 28,516
100,000
200,000 249,014
825,065
Options and Performance Rights granted to directors and ocers of the Company
During or since the end of the nancial year, the Company granted options and rights over unissued ordinary shares in the Company to the Key Management Personnel as set out below:
Director or Key Management Options Performance Rights Share Appreciation Rights
Peter Watson Steve Banning Matthew Adamo Karsten Guster Flora Furness
200,000 249,014 145,443 152,228 54,877 801,562
825,065 481,901 504,379 181,826 1,993,171
Options and Performance Rights over unissued ordinary shares in the Company granted in the previous nancial year were detailed in the previous Annual Report. The Performance Rights and Share Appreciation Rights require certain hurdles to be met and for the holder to remain employed by the Company prior to vesting.
Unissued shares under options

At the date of this report unissued ordinary shares of the Company under option are:
Expiry date Exercise price Number of shares
2 March 2013 30 May 2014
$0.85 $1.20
621,999 100,000 721,999
All options expire on the earlier of their expiry date or termination of the employees employment. In addition, the ability to exercise the options is conditional on the price of the shares on the ASX. These options do not entitle the holder to participate in any share issue of the Company or any other body corporate.
Indemnication and insurance of ocers and auditors

Insurance premiums Under the Companys Constitution, the Company indemnies each current and former ocer of the Group against certain liabilities and costs incurred by them as an ocer of the Group. The Company also indemnies each current and former ocer of the Group against certain liabilities and costs incurred when the ocer acts as an ocer of another body corporate at the Companys request and the liability or cost is incurred in that capacity. Neither indemnity extends to liabilities or costs from which the Company is prohibited from indemnifying current or former ocers under the Corporations Act. In addition the Company has entered into Deeds of Access, Indemnity and Insurance with certain ocers of the Group. Under those Deeds, the Company agrees to matters including the following: yy Indemnify the ocer to the extent permitted by law and under the Companys Constitution; and yy Maintain a Directors and Ocers insurance policy. Since the end of the previous nancial year the Group has paid insurance premiums of $22,739 (2011: $24,484) in respect of directors and ocers liability insurance policies
21
Directors Report
For the year ended 30 June 2012 Non-audit services
During the year KPMG, the Groups auditor, has performed certain other services in addition to their statutory duties. The board has considered the non-audit services provided during the year by the auditor and in accordance with written advice provided by resolution of the audit committee, is satised that the provision of those non-audit services during the year by the auditor is compatible with, and did not compromise, the auditor independence requirements of the Corporations Act 2001 for the followingreasons: yy all non-audit services were subject to the corporate governance procedures adopted by the Company and have been reviewed bythe Audit and Risk Committee to ensure they do not impact the integrity and objectivity of the auditor; and yy the non-audit services provided do not undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants, as they did not involve reviewing or auditing the auditors own work, acting in amanagement or decision making capacity for the Company, acting as an advocate for the Company or jointly sharing risks andrewards. Details of the amounts paid to the auditor of the Group, KPMG, and its related practices for audit and non-audit services provided during the year are set out below. In addition, amounts paid to other auditors for the statutory audit have been disclosed:
Consolidated 2012 $ Consolidated 2011 $
Audit services: Auditors of the Group: Audit and review of financial reports (KPMG Australia) Services other than statutory audit: Other assurance services Taxation compliance services (KPMG Australia) 144,660 144,660 162,075 162,075 183,000 169,500
Proceedings on behalf of the Company

No person has applied to the court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf ofthe Company for all or part of those proceedings. No proceedings have been brought or intervened in on behalf of the Company with leave of the court under section 237 of the Corporations Act 2001.
Auditors independence declaration

The auditors independence declaration is set out on page 58 and forms part of the directors report for nancial year ended 30 June 2012.
Rounding o
The Company is of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and in accordance with that Class Order, amounts in the nancial report and directors report have been rounded o to the nearest thousand dollars, unless otherwise stated.
This report is made with a resolution of the directors:
Peter Watson Chairman Dated at Brisbane, Queensland this 27th day of August, 2012.
22
Consolidated Statement of Financial Position

As at 30 June 2012
In thousands of AUD Note 2012 2011
Assets Cash and cash equivalents Trade and other receivables Inventories Current tax asset Total current assets Investments in equity accounted investees Property, plant and equipment Deferred tax assets Intangible assets Total non-current assets Total assets Liabilities Trade and other payables Loans and borrowings Employee benefits Current tax payable Provisions Deferred income Total current liabilities Loans and borrowings Employee benefits Total non-current liabilities Total liabilities Net assets Equity Share capital Retained earnings Total equity attributable to owners of the Company The notes on pages 27 to 54 are an integral part of these consolidated nancial statements. 51,152 17,494 68,646 52,513 9,637 62,150 20 21 19 20 21 17 22 23 11,550 31 4,614 802 140 733 17,870 1,251 1,251 19,121 68,646 5,963 33 3,335 165 2,040 11,536 31 1,338 1,369 12,905 62,150 15 16 17 18 12a 13 14 17 16,430 29,770 46,200 91 3,552 1,751 36,173 41,567 87,767 13,527 21,878 134 25 35,564 79 1,693 1,798 35,921 39,491 75,055
23
Consolidated Statement of Comprehensive Income

Revenue Cost of sales Gross profit Other income Business development expenses Administrative expenses Results from operating activities Finance income Finance expenses Net finance income/(expense) Share of loss of equity accounted investees Profit before income tax Income tax benefit/(expense) Profit for the year Other comprehensive income for the year, net of income tax Total comprehensive income for the period attributable to the Owners of the company Earnings per share: Basic earnings per share (cents per share AUD) Diluted earnings per share (cents per share AUD) The notes on pages 27 to 54 are an integral part of these consolidated nancial statements.
123,055 (78,661) 44,394 82 (3,808) (30,031) 10,637 420 (10)
97,813 (64,729) 33,084 65 (3,703) (25,129) 4,317 189 (51) 138 (64) 4,391 239 4,630 4,630
10 15
410 (55) 10,992
11
(303) 10,689 10,689
24 24
15.9 15.7
7.6 7.5
24
Consolidated Statement of Changes in Equity

Noncontrolling interest
In thousands of AUD
Note
Share Capital
Retained earnings
Total
Total Equity
Balance at 1 July 2011 Total comprehensive income Profit Other comprehensive income Total comprehensive income Transactions with owners, recorded directly in equity Issue of ordinary shares Shares bought back Treasury shares Dividends paid Share-based payments Balance at 30 June 2012 25 25
52,513
9,637 10,689 10,689
62,150 10,689 10,689
62,150 10,689 10,689
100 (186) (1,275) 51,152
(3,208) 376 17,494
100 (186) (1,275) (3,208) 376 68,646
100 (186) (1,275) (3,208) 376 68,646

In thousands of AUD Note Share Capital Retained earnings Total Noncontrolling interest Total Equity
Balance at 1 July 2010 Total comprehensive income Profit Other comprehensive income Total comprehensive income Transactions with owners, recorded directly in equity Issue of ordinary shares Exercise of options Equity raising transaction costs, net of tax Dividends paid Share-based payments Balance at 30 June 2011
44,135
8,477 4,630 4,630
52,612 4,630 4,630
201
52,813 4,630 4,630
8,500 157 (279) 52,513
(4,066) 596 9,637
8,500 157 (279) (4,066) 596 62,150
(201)
8,500 157 (279) (4,267) 596 62,150
The notes on pages 27 to 54 are an integral part of these consolidated nancial statements.
25
Consolidated Statement of Cash Flows

Cash flows from operating activities Receipts from customers Payments to suppliers and employees 114,255 (104,983) 9,272 Interest paid Income taxes refunded/(paid) Net cash inflow from operating activities Cash flows from investing activities Interest received Proceeds from sale of property, plant and equipment Acquisition of a business Acquisition of property, plant and equipment Acquisition of intangible assets Net cash outflow from investing activities Cash flows from financing activities Proceeds from issue of share capital Acquisition of treasury shares Acquisition of shares bought back Proceeds from borrowings Payment of capital raising transaction costs Repayment of borrowings Dividends paid to the shareholders of the Company Dividends paid to minority interest Net cash inflow from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of financial year Cash and cash equivalents at end of financial year The notes on pages 27 to 54 are an integral part of these consolidated nancial statements. 12a 25 (1,275) (186) (33) (3,208) (4,702) 2,903 13,527 16,430 8,657 630 (399) (648) (4,066) (201) 3,973 6,912 6,615 13,527 7 16 18 420 28 (528) (2,148) (2,228) 189 (848) (9) (668) 12b (10) 571 9,833 100,355 (96,157) 4,198 (51) (540) 3,607
26
Notes to the Financial Statements

Note 1. Reporting entity
LogiCamms Limited (the Company) is a company domiciled inAustralia. The address of the Companys registered oce is 433 Boundary Street, Brisbane, Australia. The consolidated nancial statements of the Company as at and for the year ended 30 June 2012 comprise the Company and its subsidiaries (together referred to as the Group and individually as Group entities) and the Groups interest in associates and jointly controlled entities. The Group is primarily is involved with the resources, energy and infrastructure sectors providing engineering project delivery and asset management services inAustralia. yy Notes 8 and 13 revenue recognition and project work inprogress yy Note 18 measurement of the recoverable amounts of cash-generating units containing goodwill yy Note 26 measurement of share-based payments
e. Changes in accounting policies

The Group has not changed its accounting policies since the end of the previous nancial year.
Note 3. Signicant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these consolidated nancial statements, and have been applied consistently byGroup entities. The Group has not elected to adopt early any accounting standards and amendments.
Note 2. Basis of preparation

a. Statement of compliance
The consolidated nancial statements are general purpose nancial statements which have been prepared in accordance with Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The consolidated nancial statements comply with International Financial Reporting Standards (IFRSs) adopted by the International Accounting Standards Board(IASB). The nancial statements were approved by the Board of Directors on 27 August 2012.
a. Basis of consolidation
i. Business combinations Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is transferred to the Group. Control is the power to govern the nancial and operating policies of an entity so as to obtain benets from its activities. In assessing control, the Group takes into consideration potential voting Rights that currently are exercisable. Acquisitions on or after 1 July 2009 For acquisitions, the Group measures goodwill at the acquisition date as: yy the fair value of the consideration transferred; plus yy the recognised amount of any non-controlling interests in the acquiree; plus if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree; less yy the net recognised amount (generally fair value) of the identiable assets acquired and liabilities assumed. When the excess is negative, a bargain purchase gain is recognised immediately in prot or loss. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognised in prot or loss. Costs related to the acquisition, other than those associated with the issue of debt or equity securities, that the Group incurs in connection with a business combination are expensed asincurred. Any contingent consideration payable is recognised at fair value at the acquisition date. If the contingent consideration is classied as equity, it is not re-measured and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of the contingent consideration are recognised in prot or loss.
b. Basis of measurement
The consolidated nancial statements have been prepared on the historical cost basis, except for specic assets and liabilities to be measured at fair values which are discussed further in Note 4.
c. Functional and presentation currency

These consolidated nancial statements are presented in Australian dollars, which is the Companys functional currency. The Company is of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and in accordance with that Class Order, all nancial information presented in Australian dollars has been rounded to the nearest thousand unless otherwise stated.
d. Use of estimates and judgements

The preparation of nancial statements requires management to make judgements, estimates and assumptions that aect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may dier from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods aected. In particular, information about signicant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most signicant eect on amounts recognised in the nancial statements are included in the following notes:
27

Note 3. Signicant accounting policies (continued)
ii.Subsidiaries Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the nancial and operating policies of an entity so as to obtain benets from its activities. In assessing control, potential voting Rights that currently are exercisable are taken into account. The nancial statements of subsidiaries are included in the consolidated nancial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries have been changed when necessary to align them with the policies adopted by the Group. iii. Joint ventures (equity accounted investees) Jointly controlled entities are those entities over whose activities the Group has joint control, established by contractual agreement and requiring unanimous consent for strategic, nancial and operating decisions. Jointly controlled entities are accounted for using the equity method (equity accounted investees) and are initially recognised at cost. The Groups investment includes goodwill identied on acquisition, net of any accumulated impairment losses. The consolidated nancial statements include the Groups share of the income and expenses and equity movements of equity accounted investees, after adjustments to align the accounting policies with those of the Group, from the date that signicant inuence or joint control commences until the date that signicant inuence or joint control ceases. When the Groups share of losses exceeds its interest in an equity accounted investee, the carrying amount of that interest (including any long-term investments) is reduced to nil and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee. iv. Transactions eliminated on consolidation Intra-group balances, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated nancial statements. Unrealised gains arising from transactions with equity accounted investees are eliminated against the investment to the extent of the Groups interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. Gains and losses are recognised when the contributed assets are consumed or sold by the equity accounted investees or, if not consumed or sold by the equity accounted investee, when the Groups interest insuch entities is disposed of.
c. Financial instruments
i. Non-derivative nancial instruments Non-derivative nancial instruments comprise investments in equity securities, trade and other receivables, cash and cash equivalents, and trade and other payables. Non-derivative nancial instruments are recognised initially at fair value plus, for instruments not at fair value through prot or loss, any directly attributable transaction costs. Subsequent to initial recognition non-derivative nancial instruments are measured as described below. A nancial instrument is recognised if the Group becomes a party to the contractual provisions of the instrument. Financial assets are derecognised if the Groups contractual Rights to the cash ows from the nancial assets expire or if the Group transfers the nancial asset to another party without retaining control or substantially all risks and rewards of the asset. Regular way purchases and sales of nancial assets are accounted for at trade date, i.e., the date that the Group commits itself to purchase or sell the asset. Financial liabilities are derecognised if the Groups obligations specied in the contract expire or are discharged or cancelled. Cash and cash equivalents comprise cash balances and term deposits. Accounting for nance income and expense is discussed in Note 3(n). Other Other non-derivative nancial instruments are measured at amortised cost using the eective interest method, less any impairment losses. ii. Share capital Ordinary shares Ordinary shares are classied as equity. Incremental costs directly attributable to the issue of ordinary shares and share options are recognised as a deduction from equity, net of any tax eects. Dividends Dividends are recognised as a liability in the period in which they are declared. Treasury shares Where share capital recognised as equity is repurchased, the amount of consideration paid, which includes directly attributable costs, net of any tax eects, is recognised as a deduction from equity.
b. Foreign currency
i. Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of the transactions.
d. Property, plant and equipment

i. Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses.
28
Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. Borrowing costs related to the acquisition or construction of qualifying assets are recognised in prot or loss as incurred. When parts of an item of property, plant and equipment have dierent useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net within other income inprot or loss. ii. Subsequent costs The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benets embodied within the part will ow to the Group and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in prot or loss as incurred. iii.Depreciation Depreciation is recognised in prot or loss on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership bythe end of the lease term. Land is not depreciated. The estimated useful lives for the current and comparative periods are as follows: yy plant and equipment yy building t out costs yy motor vehicles 3 10 years 4 7 years 4 5 years
resources to complete development and to use or sell the asset. The expenditure capitalised includes the cost of materials, direct labour and overhead costs that are directly attributable to preparing the asset for its intended use. Other development expenditure is recognised in prot or loss as incurred. Capitalised development expenditure is measured at cost less accumulated amortisation and accumulated impairment losses. iii. Subsequent expenditure Subsequent expenditure is capitalised only when it increases the future economic benets embodied in the specic asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in prot or loss as incurred. iv.Amortisation Amortisation is recognised in prot or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use.
f. Leased assets
Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classied as nance leases. Upon initial recognition the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Other leases are operating leases and the leased assets are not recognised on the Groups balance sheet.
g.Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the rst-in rst-out principle, and includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
Depreciation methods, useful lives and residual values are reviewed at each reporting date.
e. Intangible assets
i.Goodwill Goodwill arises on the acquisition of subsidiaries, associates and jointly controlled entities. Goodwill represents the excess of the cost of the acquisition over the Groups interest in the net fair value of the identiable assets, liabilities and contingent liabilities of the acquiree. Subsequent measurement Goodwill is measured at cost less accumulated impairment losses. In respect of equity accounted investees, the carrying amount of goodwill is included in the carrying amount of theinvestment. ii. Course development Course development expenditure is capitalised only if development costs can be measured reliably, and course is technically and commercially feasible, future economic benets are probable, and the Group intends to and has sucient
h. Project work in progress

Project work in progress represents the gross unbilled amount expected to be collected from customers for contract work performed to date. It is measured at cost plus prot recognised to date (see Note 3(l)(i)) less progress billings and recognised losses. Cost includes all expenditure related directly to specic projects and an allocation of xed and variable overheads incurred in the Groups contract activities based on normal operating capacity. Project work in progress is presented as part of trade and other receivables in the balance sheet. If payments received from customers exceed the income recognised, then the dierence is presented as deferred income in the balance sheet.
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i.Impairment
i. Financial assets A nancial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A nancial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative eect on the estimated future cash ows of that asset. An impairment loss in respect of a nancial asset measured at amortised cost is calculated as the dierence between its carrying amount, and the present value of the estimated future cash ows discounted at the original eective interest rate. An impairment loss in respect of an available-for-sale nancial asset is calculated by reference to its fair value. Individually signicant nancial assets are tested for impairment on an individual basis. The remaining nancial assets are assessed collectively in groups that share similar credit risk characteristics. All impairment losses are recognised in prot or loss. Any cumulative loss in respect of an available-for-sale nancial asset recognised previously in equity is transferred to prot or loss. An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised. For nancial assets measured at amortised cost and available-for-sale nancial assets that are debt securities, the reversal is recognised in prot or loss. ii. Non-nancial assets The carrying amounts of the Groups non-nancial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists then the assets recoverable amount is estimated. For goodwill and intangible assets that have indenite lives or that are not yet available for use, recoverable amount is estimated at each reporting date. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash ows are discounted to their present value using a pre-tax discount rate that reects current market assessments of the time value of money and the risks specic to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inows from continuing use that are largely independent of the cash inows of other assets or groups of assets (the cash-generating unit). The goodwill acquired in a business combination, for the purpose of impairment testing, is allocated to cash-generating units that are expected to benet from the synergies of thecombination. An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in prot or loss. Impairment losses recognised in respect of cash-generating units are allocated rst to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit (group of units) on a prorata basis. An impairment loss in respect of goodwill is not reversed. Inrespect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
j. Employee benets
i. Long-term employee benets The Groups net obligation in respect of long-term employee benets is the amount of future benet that employees have earned in return for their service in the current and prior periods plus related on costs; that benet is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is the yield at the reporting date on AA credit-rated or government bonds that have maturity dates approximating the terms of the Groups obligations. ii. Short-term benets Liabilities for employee benets for wages, salaries, annual leave, long service leave and sick leave represent present obligations resulting from employees services provided to reporting date and are calculated at undiscounted amounts based on remuneration wage and salary rates that the Group expects to pay as at reporting date including related on-costs, such as workers compensation insurance and payroll tax. Non-accumulating non-monetary benets, such as medical care, housing, cars and free or subsidised goods and services, are expensed based on the net marginal cost to the Group as the benets are taken by the employees. A liability is recognised for the amount expected to be paid under short-term cash bonus or prot-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. iii. Share-based payment transactions The grant date fair value of options, performance Rights or share appreciation Rights granted to employees is recognised as an employee expense over the contractual life of the option or right that the employees become unconditionally entitled to. The corresponding movement in equity is recognised when the instrument is exercised. The amount recognised as an expense is adjusted to reect the actual number of share options that vest, except for those that fail to vest due to market conditions not being met. When the Company grants options over or Rights to its shares to employees of subsidiaries, the fair value at grant date is recognised as an increase in the investments in subsidiaries, with a corresponding increase in equity over the vesting periodof the grant.
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k.Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outow of economic benets will be required to settle the obligation. Provisions are determined by discounting the expected future cash ows at a pre-tax rate that reects current market assessments of the time value of money and the risks specic to the liability. i.Warranties A provision for warranties is recognised when the underlying products or services are sold. The provision is based on historical warranty data and a weighting of all possible outcomes against their associated probabilities.
Before a provision is established, the Group recognises any impairment loss on the assets associated with that contract (seeNote 3(i)(i)).
m. Lease payments
Payments made under operating leases are recognised in prot or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease. Minimum lease payments made under nance leases are apportioned between the nance expense and the reduction of the outstanding liability. The nance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.
l.Revenue
i. Revenue from projects Contract revenue includes the initial amount agreed in the contract plus any variations in contract work, claims and incentive payments to the extent that it is probable that they will result in revenue and can be measured reliably. As soon as the outcome of a contract can be estimated reliably, contract revenue and expenses are recognised in prot or loss in proportion to the stage of completion of the contract. The stage of completion is assessed by reference to costs incurred to date as a percentage of total estimated cost for each contract. When the outcome of a contract cannot be estimated reliably, contract revenue is recognised only to the extent of contract costs incurred that are likely to be recoverable. An expected loss on a contract is recognised immediately in protor loss. ii. Revenue from services Revenue from services rendered is recognised in prot or loss in proportion to the stage of completion of the transaction at the reporting date. The stage of completion is assessed by reference to internal surveys of work performed. Revenue from training courses is recognised when the course is completed. iii. Goods sold Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns, trade discounts and volume rebates. Revenue is recognised when the signicant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods and the amount of revenue can bemeasured reliably. iv. Onerous Contracts A provision for onerous contracts is recognised when the expected benets to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing the contract.
n. Finance income and expense

Finance income comprises interest income on funds invested and dividend income. Interest income is recognised as it accrues in prot or loss, using the eective interest method. Dividend income is recognised in prot or loss on the date that the Groups right to receive payment is established. Finance expenses comprise interest expense on borrowings, unwinding of the discount on provisions and impairment losses recognised on nancial assets. All borrowing costs are recognised in prot or loss using the eective interest method.
o. Income tax
Income tax expense comprises current and deferred tax. Current and deferred tax is recognised in prot or loss except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity or in other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognised in respect of temporary dierences between the carrying amounts of assets and liabilities for nancial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for: yy Temporary dierences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that aects neither accounting nor taxable prot. yy Temporary dierences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeablefuture. yy Taxable temporary dierences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to the temporary dierences when they reverse, using tax rates enacted or substantively enacted by the reporting date.
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In determining the amount of current and deferred tax the Group takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. The Group believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New information may become available that causes the Group to change its judgement regarding the adequacy of existing tax liabilities. Such changes to tax liabilities will impact tax expense in the period that such a determination is made. Deferred tax assets and liabilities are oset if there is a legally enforceable right to oset current tax liabilities and assets; and they relate to income taxes levied by the same tax authority on the same taxable entity, or on dierent tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously. A deferred tax asset is recognised to the extent that it is probable that future taxable prots will be available against which the temporary dierence can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benet will be realised. Additional income taxes that arise from the distribution of dividends are recognised at the same time as the liability to pay the related dividend is recognised. The company and its wholly-owned Australian resident entities are part of a tax-consolidated group. As a consequence, all members of the tax-consolidated group are taxed as a single entity. The head entity within the tax-consolidated group is LogiCamms Limited.
q. Earnings per share

The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the prot or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the prot or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the eects of all dilutive potential ordinary shares, which comprise convertible notes and share options orRights granted to employees.
r. Segment reporting
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Groups other components. The Groups operating results as a whole are regularly reviewed by the Groups Managing Director to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete nancial information is available.
s. New standards and interpretations not yet adopted

A number of new standards, amendments to standards and interpretations are eective for annual periods beginning after 1 July 2011, and have not been applied in preparing these consolidated nancial statements. None of these is expected to have a signicant eect on the consolidated nancial statements of the Group, except for AASB 9 Financial Instruments, which becomes mandatory for the Groups 2014 consolidated nancial statements and could change the classication and measurement of nancial assets. The Group does not plan to adopt this standard early and the extent of theimpact has not been determined.
p. Goods and services tax

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the statement of nancial position. Cash ows are included in the statement of cash ows on a gross basis. The GST components of cash ows arising from investing and nancing activities which are recoverable from, orpayable to, the ATO are classied as operating cash ows.
Note 4. Determination of fair values

A number of the Groups accounting policies and disclosures require the determination of fair value, for both nancial and non-nancial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. Where applicable, further information about the assumptions made in determining fair values is disclosed in the notes specic to that asset or liability.
a. Property, plant and equipment

The fair value of property, plant and equipment recognised as a result of a business combination is based on market values. The market value of property is the estimated amount for which a property could be exchanged on the date of valuation between a willing buyer and a willing seller in an arms length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. The market value of items of plant, equipment, xtures and ttings is based on the quoted market prices for similar items.
32
b. Intangible assets
The fair value of intangible assets recognised as a result of a business combination represents the excess of the purchase consideration over the fair value of tangible assets acquired atthe time of acquisition.
Credit risk
Credit risk is the risk of nancial loss to the Group if a customer or counterparty to a nancial instrument fails to meet its contractual obligations, and arises principally from the Groups receivables from customers as well as nancial guarantees granted to customers. The Group is also exposed to credit risk from its nancing activities including deposits with nancialinstitutions. Credit risks related to trade receivables Credit risk related to trade receivables is inuenced mainly by the individual characteristics of each customer. The demographics of the Groups customer base, including the default risk of the industry in which customers operate, has lessof an inuence on credit risk. New customers are typically analysed individually for creditworthiness before credit terms are allowed. The Groups review can include external ratings if necessary. For large contracts, credit worthiness is assessed as part of the process of submitting the bid and negotiating terms and conditions. Outside special terms required for large contracts, purchase limits are established for each customer, which represents the maximum open amount without requiring approval. Customers that fail to meet the Groups benchmark creditworthiness may transact with the Group only on a prepayment basis. Most of the Groups customers have either been transacting with the Group for over two years, are Government bodies, or large contracting companies. Outstanding customer receivables are regularly monitored and any credit concerns are highlighted to senior management. Large progress claims on construction contracts are monitored against the agreed contract conditions and the Group may consider ceasing work, in extreme cases, until any delayed payments are resolved. Goods are sold subject to retention of title clauses, so that in the event of non-payment the Group may have a secured claim. The Group does not require collateral in respect of trade and other receivables. The Group has established an allowance for impairment that represents their estimate of incurred losses in respect of trade and other receivables. Credit risks related to nancial instruments and cash deposits Credit risk from balances with banks and nancial institutions is managed by the Groups Finance team. Investments of surplus funds are made with the Groups bankers, National Australia Bank, and the ANZ Bank.
c.Inventories
The fair value of inventories acquired in a business combination is determined based on its estimated selling price in the ordinary course of business less the estimated costs of completion and sale, and a reasonable prot margin based onthe eort required to complete and sell the inventories.
d. Trade and other receivables

The fair value of trade and other receivables, excluding construction work in progress, is estimated as the present value of future cash ows, discounted at the market rate of interest at the reporting date.
e. Share-based payment transactions

The fair value of employee stock options, Performance and Share Appreciation Rights is measured using a binomial option valuation methodology. Measurement inputs include the companys share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility adjusted for changes expected due to publicly available information), weighted average expected life of the instruments (based on historical experience and general option or right holder behaviour), expected dividends, the risk-free interest rate (based on government bonds), and performance hurdles. Service and non-market performance conditions attached to the transactions are not taken into account in determining fair value.
Note 5. Financial risk management

Overview
The Group has exposure to the following risks from its use ofnancial instruments: yy Credit risk yy Liquidity risk yy Currency risk yy Market risk This note presents information about the Groups exposure to each of the above risks, their objectives, policies and processes for measuring and managing risk, and the management of capital. Further quantitative disclosures are included throughout this nancial report. The Audit and Risk Committee oversees how management monitors and reviews the adequacy of the risk management framework in relation to the risks faced by the Group.
33

Note 5. Financial risk management (continued)
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its nancial obligations as they fall due. The Group manages this risk by ensuring, as far as possible, that it always has sucient liquidity to meet its liabilities when due, under both normal and stressed conditions. The Group ensures that it has sucient cash on demand to meet expected operational commitments in the short term including the servicing of nancial obligations. The Group regularly forecasts cash ows to assess future liquidity requirements with sucient time to hold discussions with the Groups bankers, if such discussions are required. The Company will aim to distribute 40% 60% of net prot after tax in the form of dividends. The ultimate dividend paid will be determined by the board after consideration of general business and nancial conditions, working capital requirements, taxation position, and future capital expenditure requirements. The Group does have a share buy-back plan which commenced on 21 February 2012 for a period of up to 12 months. The timing and number of shares to be bought back will depend on market conditions. The Groups debt covenants are set out in Note 20.
Note 6. Segment reporting

The results and nancial position of the Groups single operating segment, being engineering services in Australia, are prepared for the Managing Director on bases consistent with Australian Accounting Standards, and thus no additional disclosures in relation to the revenues, prot or loss, assets and liabilities and other material items have been made. Revenue from one customer of the Group represents $20,147 thousand (2011: $14,465 thousand) of the Groups total revenuesfor the year ended 30 June 2012.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will aect the Groups income or the value of its holdings of nancial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The Group assesses its market risk as low as it is not currently exposed to changes in foreign exchange rates or equity prices and only has limited exposure to changes in interest rates.
Note 7. Acquisitions
On 31 August 2011 the Group acquired 100% of a business called Power Supply Services and Training (PSST). The consideration paid totalled $777,000 of which $528,000 was paid during the current nancial year ($100,000 was settled through a share issue and the remaining $149,000 will be paid in cash during the year ending 30 June 2013). The fair value of identiable net assets acquired totalled $525,000 and acquired goodwill totalled $252,000. The contribution of PSST to the consolidated Group prot for the period was not material. This acquisition is expected to provide the Group with an increased share of the competency training and assurance market through access to the business customer base. The Group also expects to realise certain synergies and reduce coststhrough economies of scale.
Currency risk
The Group is not exposed to a material extent to currency risk on sales and purchases that are denominated in a currency other than the functional currency of the Groups entities being the Australian dollar. The Group does not have any borrowings denominated in a currency other than the Australian dollar.
Interest rate risk

The Groups borrowings are on xed interest rates (nance leases). Interest rate risk is managed by ensuring that total interest rate cover is well in excess of minimum bank covenant requirements, to ensure the Group retains a high level of exibility to absorb any adverse movements in interest rates.
Capital management
The Boards policy is to maintain a strong capital base so as to maintain investor, creditor and market condence and to sustain future development of the business. The Board of Directors monitors the return on capital, which the Group denes as net operating income divided by total shareholders equity. The Board of Directors also monitors the level of dividends to ordinary shareholders.
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Note 8. Revenue
In thousands of AUD 2012 2011
Project and services revenue Training courses Other
115,847 6,651 557 123,055
93,999 2,796 1,018 97,813
Note 9. Expenses
The statement of comprehensive income includes the following specic expenses:
Personnel expenses Contractor expenses Operating leases Contributions to dened contribution superannuation funds
61,225 17,996 3,044 4,365 86,630
45,570 6,637 2,468 3,202 57,877
Note 10. Finance income and expense

Recognised in prot or loss
Interest income on bank deposits Finance income Interest expense on financial liabilities Finance expense Net finance income/(expense)
420 420 (10) (10) 410
189 189 (51) (51) 138
Note 11. Income tax expense

Current tax expense Current year Adjustments for prior year (tax incentives) Deferred tax expense Origination and reversal of temporary differences Total income tax (benefit)/expense 17 47 303 62 (239) 2,016 (1,760) 256 546 (847) (301)
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Note 11. Income tax expense (continued)
Numerical reconciliation between tax expense and pre-tax accounting prot
Profit for the year Total income tax expense/(benefit) Profit before income tax Income tax using the Companys domestic tax rate of 30% Tax incentives current financial year Tax incentives previous financial year adjustment Non-deductible expenses Other Total income tax expense/(benefit)
10,689 303 10,992 3,298 (1,216) (1,760) 47 (66) 303
4,630 (239) 4,391 1,317 (840) (847) 209 (78) (239)
The dierence between the actual income tax expense and the income tax expense using the Companys domestic rate of 30% ismainly attributable to research and development tax incentives.
Note 12a. Cash and cash equivalents

Operating bank accounts Term deposits Cash and cash equivalents in the statement of cash flows
9,065 7,365 16,430
8,297 5,230 13,527
The Groups exposure to interest rate risk and a sensitivity analysis for nancial assets and liabilities are disclosed in Note 27.
Note 12b. Reconciliation of cash ows from operating activities

Cash flows from operating activities Profit for the year Adjustments for: Depreciation Amortisation of intangible assets Net finance benefit Share of loss of equity accounted investees (Profit)/loss on sale of property, plant and equipment Equity-settled share-based payment transactions Income tax expense/(benefit) Operating profit before changes in working capital andprovisions Change in trade and other receivables Change in inventories Change in trade and other payables Change in deferred income Change in provisions and employee benefits Interest paid Income taxes refunded/(paid) Net cash from operating activities
10,689 16 18 10 15 26 11 682 _ (410) 55 174 376 303 11,869 (7,891) 134 5,300 (1,307) 1,167 9,272 (10) 571 9,833
4,630 570 47 (138) 64 596 (239) 5,530 2,843 10 (3,998) (689) 502 4,198 (51) (540) 3,607
Note 13. Trade and other receivables

Current Trade receivables Provision for impairment of trade receivables Prepayments and sundry debtors Project work in progress 22,986 (412) 527 23,101 6,669 29,770 16,668 (259) 494 16,903 4,975 21,878
At 30 June 2012 trade receivables include retentions of $113,000 relating to contracts in progress (2011: $140,000). The Groups exposure to credit risk and impairment losses related to trade and other receivables (excluding project work in progress) are disclosed in Note 27.
Note 14. Inventories

Finished goods
134
Note 15. Equity accounted investees (joint venture)

The Groups share of prots in its equity accounted investee, the LogiCamms-Electro 80 joint venture, for the year is set out below inthe summary nancial information:
Ownership % Current assets Non current assets Total assets Current liabilities Non current liabilities Total liabilities Net assets Groups share of net assets Revenues Expenses Profit/(loss) Groups share of loss
50% 2,140 65 2,205 2,023 2,023 182 91 4,771 (4,881) (110) (55)
50% 1,271 137 1,408 1,250 1,250 158 79 2,656 (2,785) (129) (64)
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Note 16. Property, plant and equipment
In thousands of AUD Plant and equipment Building fit outs Motor Vehicles Total
Cost Balance at 1 July 2010 Additions Disposals Balance at 30 June 2011 Balance at 1 July 2011 Additions Acquired through business combination Disposals Balance at 30 June 2012 Depreciation and impairment losses Balance at 1 July 2010 Depreciation for the year Disposals Balance at 30 June 2011 Balance at 1 July 2011 Depreciation for the year Disposals Balance at 30 June 2012 Carrying amounts At 1 July 2010 At 30 June 2011 At 1 July 2011 At 30 June 2012 1,150 1,471 1,471 2,157 171 151 151 1,263 94 71 71 132 1,415 1,693 1,693 3,552 2,602 527 3,129 3,129 586 (885) 2,830 19 20 39 39 74 113 206 23 229 229 22 (154) 97 2,827 570 3,397 3,397 682 (1,039) 3,040 3,752 848 4,600 4,600 855 525 (993) 4,987 190 190 190 1,186 1,376 300 300 300 107 (178) 229 4,242 848 5,090 5,090 2,148 525 (1,171) 6,592
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Note 17. Tax assets and liabilities

Current tax assets and liabilities
Current assets Current financial year Current liabilities Current financial year 802 25
Recognised deferred tax assets and liabilities

Deferred tax assets and liabilities are attributable to the following:
In thousands of AUD Assets 2012 2011 Liabilities 2012 2011 Net 2012 2011
Property, plant and equipment Trade receivables Revenue received in advance Work in progress Employee benefits Other payables Provisions Transaction costs Tax assets/(liabilities)
123 83 1,750 639 42 176 2,813
71 102 1,392 161 50 286 2,062
(1,062) (1,062)
(264) (264)
123 83 (1,062) 1,750 639 42 176 1,751
71 102 (264) 1,392 161 50 286 1,798
Movement in temporary dierences during the year

Balance Recognised 1 July in profit Recognised 2010 or loss in equity Balance 30 June 2011 Balance 1 July 2011 Recognised in profit Recognised or loss in equity Balance 30 June 2012
In thousands of AUD
Plant and equipment Trade receivables Revenue received in advance Work in progress Employee benefits Other payables Provisions Transaction costs
(5) 84 (245) 1,215 298 85 308 1,740
5 (13) 102 (19) 177 (137) (35) (142) (62)
120 120
71 102 (264) 1,392 161 50 286 1,798
71 102 (264) 1,392 161 50 286 1,798
52 (19) (798) 358 478 (8) (110) (47)
123 83 (1,062) 1,750 639 42 176 1,751
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Note 18. Intangible assets
In thousands of AUD Goodwill Development costs & other Total
Costs Balance at 1 July 2010 Write off of merger and acquisition costs Balance at 30 June 2011 Balance at 1 July 2011 Acquired through business combination Written off accumulated amortisation Balance at 30 June 2012 Amortisation and impairment losses Balance at 1 July 2010 Amortisation for the year Impairment loss Balance at 30 June 2011 Balance at 1 July 2011 Written off against cost Balance at 30 June 2012 Carrying amounts Balance at 1 July 2010 Balance at 30 June 2011 Balance at 1 July 2011 At 30 June 2012 35,921 35,921 35,921 36,173 38 35,959 35,921 35,921 36,173 81 47 128 128 (128) 81 47 128 128 (128) 35,921 35,921 35,921 252 36,173 119 9 128 128 (128) 36,040 9 36,049 36,049 252 (128) 36,173
Impairment testing of goodwill

Goodwill is an intangible asset with an innite life which is tested at least twice a year for impairment. For the purpose of impairment testing, impairment is considered at the cash generating unit level. The Group considers that it has one cash generating unit for the purpose of this standard and for the subsequent impairment testing of goodwill. The recoverable amount of the goodwill is based on a value in use calculation with respect to the cash generation unit and was determined by applying a 5 year net present value calculation of projected cash ows and a terminal value at the end of the fth year. The recoverable amount was in excess of the carrying value of the goodwill, so no impairment loss was required. The calculation of value in use was determined having regard to the following key assumptions: yy A pre-tax discount rate applied to cash ows of 18.45% yy Expected future prots for the rst year based on internal nancial forecasts and reect managements expectations ofcontinuedgrowth yy Future nominal revenue growth of 5.0% per year for years two to ve yy After the fth year a terminal value was applied using a growth rate of 1.5%
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Note 19. Trade and other payables

Trade payables GST payable Accrued expenses
3,802 665 7,083 11,550
2,485 415 3,063 5,963
The Groups exposure to currency and liquidity risk related to trade and other payables is disclosed in Note 27.
Note 20. Loans and borrowings

This note provides information about the contractual terms of the Groups interest-bearing loans and borrowings which are measured at amortised cost. For more information about the Groups exposure to interest rate, foreign currency liquidity and risk, see Note27.
Current liabilities Finance lease liabilities Non-current liabilities Finance lease liabilities 31 As at the balance date the Group had no debt facilities and had a bank guarantee facility of $7,000 thousand (utilised $3,031 thousand). This facility was secured by a xed and oating charge over all the Company, its subsidiaries and all assets of the Group. The banks nancial covenants imposed on the Group are as follows and have been met: 1. Ratio of net cash plus debtors less than 90 days divided by total drawn facilities (bank guarantees) to exceed 2.0 times; and 2. Capital adequacy ratio (tangible net assets divided by total tangible assets) to exceed 40 percent. 31 33
Note 21. Employee benets

Current Liability for long service leave Liability for time off in lieu Liability for annual leave Salaries and wages accrued Total employee benefits current Non-Current Liability for long service leave 1,251 1,338 834 567 3,180 33 4,614 573 331 2,398 33 3,335
Note 22. Provisions

Balance at the beginning of the year Provisions made during the year Provisions used during the year Provisions reversed during the year Balance at the end of the year
165 173 (63) (135) 140
285 184 (55) (249) 165
This provision relates to warranties on projects completed for which the Group retains warranty commitments at the end of the nancial year. The provision is based on estimates made from historical warranty data associated with similar products and services. The Group expects to incur most of the liability over the next year.
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Note 23. Deferred income
Revenue in advance
733
2,040
Note 24. Earnings per share

Basic earnings per share
The calculation of basic earnings per share at 30 June 2012 was based on the prot for the year and a weighted average number ofordinary shares outstanding of 67,267,000 (2011: 61,259,000) calculated as follows: Prot attributable to ordinary shareholders
Profit for the year Weighted average number of ordinary shares

In thousands of shares
10,689
2012
4,630
2011
Shares on issue at beginning of year Effect of performance Rights exercised (370,833 weighted down) Effect of shares options exercised Effect of ordinary shares issued (114,649 weighted down) Effect of shares bought back (200,000 weighted up) Effect of shares bought back by EST (1,200,000 weighted up)(A) Weighted average number of ordinary shares at end of year
67,142 291 96 (64) (198) 67,267
59,984 165 45 1,065 61,259
Diluted earnings per share

The calculation of diluted earnings per share at 30 June 2012 was based on the prot for the year and a weighted average number of ordinary shares outstanding after adjustment for the eects of all dilutive potential ordinary shares of 68,112,000 (2011: 61,661,000) calculated as follows: Prot attributable to ordinary shareholders
Profit for the year Weighted average number of ordinary shares (diluted)
10,689
2012
4,630
2011
Weighted average number of ordinary shares (basic) Effect of performance Rights on issue (993,229 weighted down) Effect of share appreciation Rights on issue (1,993,171 weighted down) Weighted average number of ordinary shares at end of year (diluted) The options (refer Note 26) do not have any dilutive impact on the earnings per share as at 30 June 2012.
67,267 648 197 68,112
61,259 402 61,661
(A) During the financial year the Group established an Employee Share Trust (EST). As at the end of the financial year the EST had acquired 1,200,000 ordinary shares on-market in the Company. These shares will be held by the EST to meet future obligations toemployees under the incentive plans upon vesting of granted Performance and Share Appreciation Rights.
42
Note 25. Capital and reserves

Share capital
Number of Ordinary Shares 2012 Number of Ordinary Shares 2011
On issue at 1 July Issued for cash Issued in business combinations Bought back Exercise of Performance Rights Exercise of options On issue at 30 June fully paid
(1)
67,142 115 (200) 371 67,428
59,984 6,800 207 151 67,142
The Company does not have authorised capital or par value in respect of its issued shares. The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All shares rank equally with regard to the Companys residual assets. 114,649 shares ($99 thousand) were issued as a result of the acquisition of PSST (2011: nil). Additionally, 370,833 shares were issued as a result of the exercise of Performance Rights arising from the incentive programme granted to Key Management Personnel (2011: 207,500). 200,000 shares ($186 thousand) were bought back under the on-market share buyback programme which commenced 21 February 2012 for a period of up to 12 months. The timing and number of shares to be bought back will depend on market conditions.
(1) As at 30 June 2012, 1,200,000 treasury shares included in the consolidated statements of financial position and changes in equity to the value of $1,275 thousand (2011: nil) relate to shares acquired on-market by the Employee Share Trust.
The Group has also issued share options, Performance Rights and Share Appreciation Rights (refer Note 26).
Dividends
After 30 June 2012 the following dividends were declared by the directors for 2012. The declaration and subsequent payment ofdividends has no income tax consequences.
In thousands of AUD Cents per share Total amount Franked/ unfranked Date of payment
Final ordinary for FY2012
5.00
3,371
Franked
26 September 2012
The nancial eect of this dividend has not been brought to account in the nancial statements for the nancial year ended 30 June 2012 and will be recognised in subsequent nancial reports.
Dividend franking account 30 percent franking credits available to shareholders of the Company for subsequent financial years 3,814 3,098
The above available amounts are based on the balance of the dividend franking account at year-end adjusted for: a. franking credits that will arise from the payment of the current tax liabilities; b. franking debits that will arise from the payment of dividends recognised as a liability at the year end; c. franking credits that will arise from the receipt of dividends recognised as receivables by the tax consolidated group at the year end; and d. franking credits that the entity may be prevented from distributing in subsequent years. The ability to utilise the franking credits is dependent upon there being sucient available prots to declare dividends. The impact onthe dividend franking account of dividends proposed after the balance sheet date but not recognised as a liability is to reduce it by$1,445 thousand (2011: $840 thousand).
43

Note 26. Share-based payments
Share Option Programme
From December 2007 to December 2010, the Group provided Directors and Employees with an Option Plan that entitled them purchase shares in the Company. The terms and conditions of the unexpired options at the end of the nancial year are as follows. Alloptions are to be settled by physical delivery of shares.
Grant date/employees entitled Number of instruments Vesting conditions Contractual life of options
Options granted on 2 March 2010
621,999
162,000 options on or after 12 months after issue provided the price of shareson the ASX is above $1.00; 230,000 options on or after 24 months afterissue provided the price of shares on the ASX is above $1.20; 229,999 options on or after 36 months after issue provided the price of shares on theASX is above $1.40 33,333 options on or after 12 months after issue provided the price of shareson the ASX is above $1.30; 33,333 options on or after 24 months afterissue provided the price of shares on the ASX is above $1.60; 33,334 options on or after 36 months after issue provided the price of shares on theASX is above $1.90
3.5 years
Options granted on 30 November 2010
100,000
3.5 years
Total share options
721,999
The number and weighted average exercise prices of share options are as follows:
Weighted average exercise price 2012 Number of options 2012 Weighted average exercise price 2011 Number of options 2011
Outstanding at beginning of year Forfeited during the year Exercised during the year Granted during the year Outstanding at 30 June Exercisable at 30 June
1.17 1.35 0.90
1,821,999 (1,100,000) 721,999
1.18 1.20 1.04 1.20 1.17
3,564,999 (1,691,834) (151,166) 100,000 1,821,999
The options outstanding at 30 June 2012 have an exercise price in the range of $0.85 to $1.20 (2011: $0.85 to $1.35) and a weighted average remaining contractual life of 0.9 years (2011: 1.1 years). The fair value of services received in return for share options granted is based on the fair value of share options granted, measured using a binomial lattice model, incorporating the probability of the relative total shareholder return vesting condition being met, withthe following inputs: Fair value of share options and assumptions
621,999 options granted in 2010 financial year 100,000 options granted in 2011 financial year
Fair value at grant date Share price at grant date Exercise price Expected volatility (weighted average) Option life (expected weighted average) Expected dividends Risk-free interest rate (based on Government bonds)
$111,090 0.84 0.85 75.00% 3.5 years 6.00% 5.00%
$22,923 1.18 1.20 45.87% 3.5 years 5.32% 5.06%
44
Long Term Incentive Plan

During the year ended 30 June 2011 the Group established a Long Term Incentive Plan under which the Board at its discretion canoer Performance Rights and Share Appreciation Rights to Key Management Personnel. In addition, there remains a number ofPerformance Rights issued on or before 10 November 2011. The terms and conditions of the Rights are as follows:
Remaining Number of instruments Contractual life of Rights
Grant date/employees entitled
Vesting conditions
Performance Rights issued on 31 August 2010 Performance Rights issued on 6 January 2011 Performance Rights issued on 30 June 2011 Performance Rights issued on 10 November 2011 Performance Rights issued on 20 February 2012 Total Performance Rights Share Appreciation Rights issued on 20 February 2012 Total Rights at 30 June 2012
140,000 51,667 200,000 601,562 993,229 1,993,171 2,986,400
140,000 on or after 31 August 2012 25,000 on 1 July 2011 51,667 on or after 14 February 2013 66,667 on 2 June 2014; 66,667 on or after 2 June 2015; 66,666 on or after 2 June 2016 601,562 on 30 June 2014 1,993,171 on 30 June 2014
2.0 years 1.7 years 4.5 years 2.4 years 2.4 years
The terms of the Performance Rights issued on or before 10 November 2011 require that the recipient must remain in the continuous employment of the Company until the vesting date. These Rights have no exercise price and are to be settled by physical delivery ofshares at a conversion ratio of 1:1. In addition to the tenure condition noted above, the terms of the Performance and Share Appreciation Rights issued on 20 February 2012 have two performance conditions: yy A relative total shareholder return measure over the performance period yy An absolute earnings per share growth target over the performance period The performance measures are mutually exclusive. Performance will be assessed over a period of two years from 1 July 2011 to 30June 2013 with a further condition of an additional service of one year beyond the performance period. The exercise price for thesePerformance Rights is nil, while the eective exercise price of the Share Appreciation Rights is equal to the share price at grant, and the payo is equivalent to dierence between the price at the end of the performance period, and the allocation share price, withthe value settled in shares at the end of the additional 1 year service period. No dividends are received on shares during this additional 1 year service period. During the nancial year the Group established an Employee Share Trust (EST). As at the end of the nancial year the EST had acquired 1,200,000 ordinary shares on-market in the Company. These shares will be held by the EST to meet future obligations toemployees under the incentive plans upon vesting of granted Performance and Share Appreciation Rights. The movement in the share Rights for the year is as follows:
2012 2011
Outstanding at beginning of year Granted during the year Forfeited during the year Exercised during the year Outstanding at 30 June Exercisable at 30 June The Rights outstanding at 30 June 2012 have a weighted average contractual life of 1.9 years.
662,500 2,804,733 (110,000) (370,833) 2,986,400
870,000 (207,500) 662,500
45

Note 26. Share-based payments (continued)
Fair value of Performance Rights and Share Appreciation Rights and assumptions
140,000 51,667 Performance Performance Rights grated Rights granted on 31 August on 30 June 2010(A) 2011(A) 200,000 601,562 1,993,171 Share Performance Performance Appreciation Rights granted Rights granted Rights granted on 10 November on 20 February on 20 February 2011(A) 2012 2012
Fair value at grant date Share price at grant date Exercise price Expected volatility (weighted average) Option life (expected weighted average) Expected dividends Risk-free interest rate (based on Government bonds)
$124,600 0.890 0.000 N/A N/A N/A N/A
$57,867 1.120 0.000 N/A N/A N/A N/A
$161,999 0.810 0.000 N/A N/A N/A N/A
$300,782 0.850 0.000 50.00% 3.0 years 5.75% 3.72%
$298,976 0.850 0.825 50.00% 3.0 years 5.75% 3.72%
(A) The Rights issued on 10 November 2011 or earlier only have a tenure condition therefore the fair value was determined by the share price at the date of grant.
Employee expenses relating to equity settled share based payments

Gift shares granted to employees Share options granted Performance Rights Share appreciation Rights Total expense recognised as employee costs
3 31 295 47 376
47 69 480 596
46
Note 27. Financial instruments

The main risks arising from the Groups operations have been identied as credit risk, liquidity risk and interest rate risks.
Credit risk
Exposure to credit risk The Groups credit risk arises from cash and cash equivalents, trade and other receivables and the granting of nancial guarantees. Credit risks relating to trade receivables are managed by maintaining strong relationships with high quality clients, ensuring we only trade with creditworthy parties (assessed at the time of contract acceptance), and constantly reviewing the aging. Credit risks related to cash and cash equivalents are managed by the placement of surplus working capital with nancial institutions ofappropriate credit worthiness, currently that being the Groups bankers. The carrying amount of the Groups nancial assets represents the maximum credit exposure. The Groups maximum exposure tocredit risk at the reporting date was:
Trade receivables Sundry debtors and prepayments Project work in progress Cash and cash equivalents
22,574 527 6,669 29,770 16,430 46,200
16,409 494 4,975 21,878 13,527 35,405
At 30 June 2012, $3,031 thousand of nancial guarantees had been issued to customers (2011: $3,383 thousand). The Group has aguarantee facility of $7,000 thousand with their banker which is reviewed regularly by the Board and senior management in line withreviews of the overall banking facilities. Of the Groups exposure to credit risk for trade receivables at the reporting date, $745 thousand relates to contracts with overseas entities contracted in Australian dollars. The balance relates to contracts within Australia. Details of the Groups most signicant customer receivable balances at 30 June 2012 are shown in the following table. The most signicant single customer at 30 June 2012 is a large multi-national company in the resources and energy sector and contracts with many of the companys trading subsidiaries.
Carrying amount 2012 % of trade receivables 2012 Carrying amount 2011 % of trade receivables 2011
In thousands of AUD
Most significant single customer Top ten most significant customers
3,705 12,348
16% 54%
1,626 8,096
10% 48%
Credit risk associated with project work in progress is managed by monthly commercial and performance reviews of each major project by senior management to ensure that the carrying value of each projects work in progress is recoverable. All contracts are being billed in accordance with the contractual terms and resultant work in progress balances have been assessed as being fullyrecoverable.
47

Note 27. Financial instruments (continued)
Impairment losses The aging of the Groups trade receivables at the reporting date was:
In thousands of AUD Gross 2012 Impairment 2012 Gross 2011 Impairment 2011
Not past due Past due 030 days Past due 31120 days Past due 121 days to one year More than one year Retentions (not past due)
18,697 1,691 1,489 680 316 113 22,986
(96) (316) (412)
12,177 1,762 1,480 862 247 140 16,668
(12) (247) (259)
The credit quality of trade receivables is assessed based the quality of the client, the clients history with the Group and the circumstances of the specic contract where relevant. Based on the Groups monitoring of customer credit risk, the Group believes that, except as indicated above, no impairment allowance is necessary in respect of trade receivables not past due and not before past due 121 days. The movement in the allowance for impairment in respect of trade receivables during the year was as follows:
Balance at start of year Impairment losses recognised Amounts written off as non-recoverable Balance at 30 June
259 310 (157) 412
278 88 (107) 259
The impairment loss at 30 June 2012 relates to specic invoices that the Group considers are unlikely to be recovered as well as an additional provision covering receivables past due 121 days or more. The allowance account in respect of trade receivables is used to record impairment losses unless the Group is satised that no recovery of the amount owing is possible; at that point the amount is considered irrecoverable and is written o against the nancial asset directly.
Liquidity risk
The following are the contractual maturities of the Groups assets and liabilities, including estimated interest payments and excluding the impact of netting agreements:
2012 2011
In thousands of AUD
ContractCarrying ual cash Less than amount flows 1 year 12 years 25 years
ContractCarrying ual cash Less than amount flows 1 year 12 years 25 years
Financial assets Cash and cash equivalents 16,430 46,200 Financial liabilities Finance leases Trade and other payables 31 11,550 11,581 38 11,550 11,588 38 11,550 11,588 64 5,963 6,027 92 5,963 6,055 92 5,963 6,055 16,430 30,182 46,612 16,430 30,182 46,612 13,527 21,878 35,405 13,527 22,137 35,664 13,527 22,137 35,664 Trade and other receivables 29,770
48
Interest rate risk

Prole At reporting date the interest rate prole of the Groups interest-bearing nancial instruments was:
Carrying amount
In thousands of AUD
2012
2011
Fixed rate instruments Financial liabilities Variable rate instruments Financial assets Financial liabilities 16,430 13,527 31 64
Cash ow sensitivity analysis for variable rate instruments A change of 200 basis points in interest rates would have increased (decreased) equity and prot by the amounts shown below. A sensitivity of 2% (2011: 2%) has been selected as this is considered reasonable. The Directors cannot nor do not seek to predict movements in interest rates. These sensitivities are shown for illustrative purposes only.
Effect on profit increase/(decrease) If interest rates were 2% higher (2011: 2%) If interest rates were 2% lower (2011: 2%) Effect on profit after tax increase/(decrease) If interest rates were 2% higher (2011: 2%) If interest rates were 2% lower (2011: 2%) Effect on shareholders equity increase/(decrease) If interest rates were 2% higher (2011: 2%) If interest rates were 2% lower (2011: 2%) 230 (230) 188 (188) 230 (230) 188 (188) 329 (329) 269 (269)
Fair values versus carrying amounts The fair values and carrying amounts of nancial assets and liabilities shown in the balance sheet were not materially dierent at30June 2012 due to the short term nature of these nancial assets and liabilities. The Group has no nancial instruments carried at fair value and therefore has not disclosed the fair value hierarchy.
49

Note 28. Operating leases
Leases as lessee
Non-cancellable operating lease rentals are payable as follows:
Less than one year Between one and five years More than five years
4,190 13,820 3,656 21,666
3,027 9,166 1,257 13,450
The Group leases properties in Brisbane, Perth, Melbourne and Adelaide as well as in several regional locations. The leases typically run for a period of 2 to 10 years, with options to renew. Most leases increase annually to reect market rentals or movement in the consumer price index. During the year ended 30 June 2012 $3,044 thousand (2011 $2,463 thousand) was recognised as an expense inthe income statement in respect of operating leases
Note 29. Related parties

Key Management Personnel compensation
The Key Management Personnel compensation included in personnel expenses (see Note 9) is as follows
In AUD 2012 2011
Short-term employee benefits Other long term benefits Post-employment benefits Share-based payments Termination benefits
2,124,747 30,332 124,143 296,364 221,633 2,797,219
1,936,710 29,315 135,404 542,188 594,013 3,237,630
The compensation disclosed above represents an allocation of the Key Management Personnels estimated compensation from the Group in relation to their services rendered to the Company.
Individual directors and executives compensation disclosures

Information regarding individual Directors and executives compensation and some equity instruments disclosures as required byCorporations Regulations 2M.3.03 are provided in the Remuneration Report section of the Directors Report. Apart from the details disclosed in this note, no Director has entered into a material contract with the Group since the end of the previous nancial year andthere were no material contracts involving Directors interests existing at year-end.
Loans to Key Management Personnel and their related parties

No loans were made to Key Management Personnel and their related parties during the year. The Group has not advanced loans tokey management persons or their related parties.
Movements in shares
360,833 of ordinary shares were granted to Key Management Personnel during the reporting period upon exercise of rights granted ascompensation in prior periods (2011: 197,500).
Non-Key Management Personnel disclosures

There were no transactions with non-Key Management Personnel during the year that require disclosure.
Acquisition of shares from related parties

There were no acquisitions of shares from related parties in the 2012 nancial year.
50
Other Key Management Personnel transactions

The terms and conditions of these transactions with management persons and their related parties were no more favourable than those available, or which might reasonably be expected to be available, on similar transactions to non-director related entities onanarms length basis. Options and Rights over equity instruments The movement during the reporting year in the number of options or rights over ordinary shares in the Company held, directly, indirectly or benecially, by each Key Management Person, including their related parties, is as follows:
Held at Granted as 1 July 2011 compensation Expired or forfeited Held at 30 June 2012 Vested during the year Vested and exercisable at 30 June 2012
Exercised
Directors Peter Watson Giles Everist Peter Wall Chris Greig Damian Young Steve Banning Executives Matthew Adamo Rights Karsten Guster Flora Furness Paul Harrison Rights Rights Rights 155,000 262,500 245,000 627,344 656,607 236,703 (103,333) (122,500) (135,000) (110,000)(A)
Expired or forfeited
Rights Options Options Options Rights
100,000 100,000
200,000 1,074,079(B)
(100,000)
200,000 100,000 1,074,079
679,011 796,607 236,703

Held at 30 June 2011
103,333 122,500 135,000

Vested during the year

Vested and exercisable at 30 June 2012
Held at Granted as 1 July 2010 compensation
Exercised
Directors David Humann Peter Watson Giles Everist David Humann Peter Wall Chris Greig Damian Young Executives Matthew Adamo Rights Karsten Guster Adam Keats Paul Harrison Rights Options Rights 175,000 155,000 350,000 355,000 (87,500) (110,000) (175,000) 155,000 262,500 245,000 Options Options Options Options Options Options Options 100,000 100,000 100,000 100,000 175,000 100,000 (100,000) (100,000) (100,000) (175,000) 100,000 100,000
Garry McGrechan Options
(A) Held at resignation. (B) Subject to shareholder approval.
51

Note 29. Related parties (continued)
Movements in shares The movement during the reporting year in the number of ordinary shares in the Company held, directly, indirectly or benecially, byeach key management person, including their related parties, is as follows:
Received on exercise of options or Rights
Held at 1 July 2011
Purchases
Sales
Directors Peter Watson Giles Everist Peter Wall Damian Young David Humann Garry McGrechan Chris Greig Executives Steve Banning Matthew Adamo Karsten Guster Flora Furness Paul Harrison 59,376 108,500 110,000 28,516 53,000 103,332 122,500 135,000
Received on exercise of options or Rights
250,000 67,001 38,750 145,000 1,266,001
388,835 260,000 60,000 10,000
388,835 510,000 127,001 48,750 145,000(A) 1,266,001(A) (A)
28,516 162,708 284,000 245,000(A)
Held at 1 July 2010
Purchases
Sales
Directors Peter Watson Giles Everist Peter Wall Damian Young David Humann Garry McGrechan Chris Greig Executives Matthew Adamo Karsten Guster Paul Harrison Adam Keats
(A) Held at resignation.
67,001 38,750 225,000 1,266,001
250,000
(80,000)
250,000 67,001 38,750 145,000 1,266,001
21,000 3,837,033
59,376
87,500 110,000
59,376 108,500 110,000 3,837,033(A)
There is a related party relationship between the parent, LogiCamms Limited, and each of its subsidiaries listed in Note 32.
52
Note 30. Subsequent events

There are no material events subsequent to balance date that management is aware of that require disclosure.
Note 31. Auditors remuneration

In AUD 2012 2011
Audit services KPMG Australia: Audit and review of financial reports Other services KPMG Australia: Taxation services Other assurance services 144,660 144,660 162,075 162,075 183,000 169,500
Note 32. Group entities

Parent and ultimate controlling party
As at, and throughout, the nancial year ended 30 June 2012 the parent company of the Group and ultimate controlling party in the Group was LogiCamms Ltd. The subsidiary companies are listed below
Country of incorporation
Ownership interest
2012
2011
LogiCamms (WA) Pty Ltd LogiCamms Consultants LogiCamms (QLD) Pty Ltd Competency Training Pty Ltd LogiCamms Northern Pty Ltd HSE Holdings Pty Ltd Process Essentials Pty Ltd LogiCamms Projects Pty Ltd LogiCamms (CGH) Pty Ltd LogiCamms (Central) Pty Ltd LogiCamms Shared Services Pty Ltd Camms Profit Impact Pty Ltd Camms Global Technologies Pty Ltd Camms Global Technologies (IP) Pty Ltd
Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia
100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
53

Note 32. Group entities (continued)
Parent entity disclosures
Result of the parent entity Profit and comprehensive income for the year Financial position of parent entity at year end Current assets Total assets Current liabilities Total liabilities Net assets Total equity of the parent entity comprising of Share capital Retained earnings Total equity 63,553 15,299 78,852 63,639 6,866 70,505 31,480 86,251 6,147 7,399 78,852 31,571 85,555 13,713 15,050 70,505 11,265 9,890
Parent entity contingencies

GST liabilities of other entities within the GST group Tax liabilities of other entities within the tax consolidated group
665 802
460 (25)
54
Directors Declaration
1. In the opinion of the directors of LogiCamms Ltd (the Company): a. the consolidated nancial statements and notes set out on pages 23 to 54, and the Remuneration report in the Directors report, set out on pages 11 to 20, are in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Groups nancial position as at 30 June 2012 and of its performance for the nancial period ended on that date; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; b. the nancial report also complies with International Financial Reporting Standards as disclosed in Note 2(a); c. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due andpayable. 2. The directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the managing director and chief nancial ocer for the nancial year ended 30 June 2012. Signed in accordance with a resolution of the directors:
Peter Watson Chairman Dated at Brisbane, Queensland, this 27th day of August 2012.
55
ABCD
Independent Auditors Report Report on the financial report
Independent auditors report to the members of LogiCamms Limited
We have audited the accompanying financial report of LogiCamms Limited (the company), which comprises the consolidated statement of financial position as at 30 June 2012, and consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year ended on that date, notes 1 to 32 comprising a summary of significant accounting policies and other explanatory information and the directors declaration of the Group comprising the company and the entities it controlled at the years end or from time to time during the financial year.
ABCD
Directors responsibility for the financial report Independent auditors report to the members of LogiCamms Limited The directors of the company are responsible for the preparation of the financial report that on the financial report with Australian Accounting Standards and the gives aReport true and fair view in accordance Corporations Act 2001 and for such internal control as directors Limited determine necessary to We have audited the accompanying financial report ofthe LogiCamms (theis company), enable which the preparation of the financialstatement report that is free from material misstatement whether comprises the consolidated of financial position as at 30 June 2012, and due to consolidated fraud or error. In note 2comprehensive (a), the directors alsoconsolidated state, in accordance Australian statement of income, statement with of changes in equity and consolidated statement ofPresentation cash flows forof the year ended on that date, notes 1 to 32 Accounting Standard AASB 101 Financial Statements , that the financial comprising summary of significant accounting policies and other explanatory information and statements of the a Group comply with International Financial Reporting Standards. Auditors responsibility
the directors declaration of the Group comprising the company and the entities it controlled at the years end or from time to time during the financial year.
Directors responsibility foran the financial report Our responsibility is to express opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Standards. These Auditing The directors of the company are responsible for Auditing the preparation of the financial report that gives a true and in accordance with Australian Accounting Standards and the Standards require thatfair weview comply with relevant ethical requirements relating to audit Corporations Act and 2001perform and for such internal the directors determine is necessary engagements and plan the audit to control obtain as reasonable assurance whether the to enable theis preparation the financial report that is free from material misstatement whether financial report free fromof material misstatement.
An audit involvesStandard performing procedures to obtain audit evidence about thethe amounts and Accounting AASB 101 Presentation of Financial Statements , that financial disclosures in the financial report. The procedures selected depend on the auditors judgement, statements of the Group comply with International Financial Reporting Standards. including the assessment of the risks of material misstatement of the financial report, whether due to Auditors fraud or error. In making those risk assessments, the auditor considers internal control responsibility relevant to the entitys preparation of the financial report that gives a true and fair view in order Our responsibility is to express an opinion on the financial report based on our audit. We to design audit procedures that are appropriate in the circumstances, but not for the purpose of conducted our audit in accordance with Australian Auditing Standards. These Auditing expressing an opinion the of the entitys internal control. An Standards requireon that weeffectiveness comply with relevant ethical requirements relating toaudit audit also includes evaluating the appropriateness of accounting policies used and the reasonableness accounting engagements and plan and perform the audit to obtain reasonable assurance whetherof the estimates made by the directors, as well as evaluating the overall presentation of the financial financial report is free from material misstatement. report.
disclosures inprocedures the financial report. The procedures selected depend on the auditors judgement, We performed the to assess whether in all material respects the financial report including the assessment of the risks of material misstatement of the financial report, whether presents fairly, in accordance with the Corporations Act 2001 and Australian Accounting due to fraudand or error. In making those risk assessments, theunderstanding auditor considers control Standards, a true fair view which is consistent with our ofinternal the Groups relevant to the entitys preparation of the financial report that gives a true and fair view in order financial position and of its performance. An audit involves performing procedures to obtain audit evidence about the amounts and
due to fraud or error. In note 2 (a), the directors also state, in accordance with Australian
to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal and control. An audit also includes We believe that the audit evidence we have obtained is sufficient appropriate to provide a evaluating the appropriateness of accounting policies used and the reasonableness of accounting basis for our audit opinion. estimates made by the directors, as well as evaluating the overall presentation of the financial report. We performed the procedures to assess whether in all material respects the financial report presents fairly, in accordance with the Corporations Act 2001 and Australian Accounting Standards, a true and fair view which is consistent with our understanding of the Groups financial position and of its performance.
65
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity.
Liability limited by a scheme approved under Professional Standards Legislation.
56
LogiCamms 65 Financial Report 2012
ABCD
Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. Auditors opinion In our opinion: (a) the financial report of the Group is in accordance with the Corporations Act 2001, including: (i) (ii) (b) giving a true and fair view of the Groups financial position as at 30 June 2012 and of its performance for the year ended on that date; and complying with Australian Accounting Standards and the Corporations Regulations 2001.
the financial report also complies with International Financial Reporting Standards as disclosed in note 2 (a).
Report on the remuneration report

We have audited the Remuneration Report included in pages 11 to 20 of the directors report for the year ended 30 June 2012. The directors of the company are responsible for the preparation and presentation of the remuneration report in accordance with Section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with auditing standards. Auditors opinion In our opinion, the remuneration report of LogiCamms Limited for the year ended 30 June 2012, complies with Section 300A of the Corporations Act 2001.
KPMG
Stephen Board Partner Brisbane 27 August 2012
66
57
ABCD
Lead Auditors Independence Declaration Report on the financial report
We have audited the accompanying financial report of LogiCamms Limited (the company), which comprises the consolidated statement of financial position as at 30 June 2012, and consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year ended on that date, notes 1 to 32 comprising a summary of significant accounting policies and other explanatory information and the directors declaration of the Group comprising the company and the entities it controlled at the years end or from time to time during the financial year. Directors responsibility for the financial report The directors of the company are responsible for the preparation of the financial report that Lead Auditors Independence Declaration under Section 307C of the gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act Corporations Act 2001 and2001 for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement whether due to To: fraud error. In 2 (a), the directors also state, in accordance with Australian theor directors of note LogiCamms Limited Accounting Standard AASB 101 Presentation of Financial Statements, that the financial I declare that, to the comply best of my knowledge and belief, in relation to the audit for the year ended statements of the Group with International Financial Reporting Standards.
30 June 2012 there have been:
Independent auditors report to the members of LogiCamms Limited
Auditors (i) responsibility no contraventions of the auditor independence requirements as set out in the Corporations Our responsibility is to express an opinion on the financial report based on our audit. We (ii) our no audit contraventions of any with applicable code of professional conduct in relation to the audit. conducted in accordance Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and KPMG disclosures in the financial report. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to theBoard entitys preparation of the financial report that gives a true and fair view in order Stephen to design audit procedures that are appropriate in the circumstances, but not for the purpose of Partner expressing an opinion on the effectiveness of the entitys internal control. An audit also includes Brisbane evaluating the appropriateness of accounting policies used and the reasonableness of accounting 27 August 2012 estimates made by the directors, as well as evaluating the overall presentation of the financial report. We performed the procedures to assess whether in all material respects the financial report presents fairly, in accordance with the Corporations Act 2001 and Australian Accounting Standards, a true and fair view which is consistent with our understanding of the Groups financial position and of its performance. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Act 2001 in relation to the audit; and
65
KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity.
Liability limited by a scheme approved under Professional Standards Legislation.
58
LogiCamms Financial Report 2012 67

KPMG, an Australian partnership and a member firm of the KPMG
ASX Information
Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this report is set out below. Theinformation is correct at 5 September 2012.
Shareholdings
Twenty largest shareholders
The number of shares held by substantial shareholders and their associates are set out below:
Shareholder Units % of Units
UBS NOMINEES PTY LTD NATIONAL NOMINEES LIMITED THORNEY HOLDINGS PTY LTD AMW CONSULTANCY SERVICES PTY LTD J P MORGAN NOMINEES AUSTRALIA LIMITED MR ADAM ROBERT KEATS <MCKEAT FAMILY A/C> RBC INVESTOR SERVICES AUSTRALIA NOMINEES PTY LIMITED <BKCUST A/C> MR ADAM ROBERT KEATS + MRS NATASHA ELIZABETH KEATS <KEATS FAMILY SUPER FUND A/C> MR PAUL DAVID WALKER <YAAPAZ ACCOUNT> PACIFIC CUSTODIANS PTY LIMITED <LCM EMPLOYEE SHARE TST A/C> MR ADAM MURRAY HORE + MS MEAGHAN LEE ROWE <HORE/ROWE FAMILY A/C> MR PAUL WALKER + MRS LEANNE WALKER <I LUV FISHING SUPERFUND A/C> MR WAYNE THOMAS KIRBY + MRS CLARE MAREE KIRBY <THE KIRBY FAMILY P/F A/C> MR IAN HAMILTON PATERSON ACN 059 050 574 PTY LTD <CROMBIE TAIT FAMILY A/C> MS CINDY SCHMIDTCHEN MR ADAM ROBERT KEATS + MR STEVEN MICHAEL WILD <M KEATS TESTAMENTARY A/C> MR ADAM ROBERT KEATS + MR STEVEN MICHAEL WILD <BARRY KEATS ESTATE A/C> INVESCO NOMINEE PTY LTD RUMINATOR PTY LTD Totals: Top 20 holders of Ordinary Fully Paid Shares (Total) Total Remaining Holders Balance
7,068,410 4,763,216 4,571,078 3,491,840 2,709,006 2,093,003 2,011,783 1,414,126 1,298,730 1,200,000 1,106,706 828,770 783,450 745,183 661,894 625,257 589,484 544,484 535,000 513,644 37,555,064 29,810,891
10.49 7.07 6.79 5.18 4.02 3.11 2.99 2.10 1.93 1.78 1.64 1.23 1.16 1.11 0.98 0.93 0.88 0.81 0.79 0.76 55.75 44.25
Substantial Shareholders
Shareholder Units % of Units
TIGA Trading Pty Ltd & Related Parties Paradice Investment Management Pty Ltd Mr Adam Robert Keats & Related Parties AMW Consulting Services Pty Ltd
10,869,751 4,376,250 3,837,033 3,491,840
16.14 6.50 5.70 5.18
59
ASX Information
Range of Shares
Ordinary Fully Paid Shares
Range Total Holders Units % of Issued Capital
1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 - 9,999,999,999 Rounding Total
201 433 299 487 62 1,482
157,655 1,512,447 2,423,014 13,714,603 49,558,236 67,365,955
0.23 2.25 3.60 20.36 73.57 -0.01 100.00
Unmarketable Parcels
There were 32 holders of unmarketable parcels of less than $500.
Voluntary Escrow
No shares under voluntary escrow.
Unlisted Securities Performance Rights

Issue Date Vesting Date Number of Shares
31 August 2010 30 June 2011 10 November 2011 10 November 2011 10 November 2011 20 February 2012
On or after 31 August 2012 On or after 14 February 2013 On or after 2 June 2014 On or after 2 June 2015 On or after 2 June 2016 On or after 30 June 2014
140,000 51,667 66,667 66,667 66,666 601,562 993,229
The Performance Rights are exercisable into shares for nil consideration. The terms of the Performance Rights require that the recipient must remain in the continuous employment of the Company until the vesting date.
60
Unlisted Securities Options

Expiry Date Exercise Price Number of Shares
2 March 2013 30 May 2014
$0.85 $1.20
621,999 100,000 721,999
All options expire on the earlier of their expiry date or termination of the employees employment. In addition, the ability to exercise the options is conditional on the price of the shares on the ASX. These options do not entitle the holder to participate in any share issue of the Company or any other body corporate.
Unlisted Securities Share Appreciation Rights

Issue Date Vesting Date Number of Rights
20 February 2012
30 June 2014
1,993,171
The eective exercise price of the share appreciation rights is equal to the share price at the date of grant and the payo is equivalent to the dierence between the price at the end of the performance period and the allocation share price, with the value settled in shares at the end of an additional 1 year period.
Securities Exchange
The Company is listed on the Australian Securities Exchange. The Home exchange is Perth, Western Australia.
Other information
LogiCamms Ltd, incorporated and domiciled in Australia, is a publicly listed company limited by shares.
Buy Back
There is no current on-market buy-back.
Voting rights
Ordinary shares
The voting rights attached to the ordinary shares are governed by the Constitution. On a show of hands every person present who is a member or representative of a member shall have one vote and on a poll, every member present in person or by proxy or by attorney or duly authorised representative shall have one vote for each share held.
Options
There are no voting rights attached to the options.
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LogiCamms Limited ASX:LCM ACN 127 897 689 ABN 90 127 897 689 Registered Oce 433 Boundary Street Spring Hill QLD 4000 Tel. + 61 7 3058 7000 Location of Share Registry Computershare Investor Services Limited 45 St Georges Terrace West Perth WA 6000 Tel. + 61 8 9323 2000
State Oces 433 Boundary Street Spring Hill QLD 4000 Tel. + 61 7 3058 7000 251 Adelaide Terrace Perth WA 6000 Tel. +61 8 6331 8888 431-439 King William Street Adelaide SA 5000 Tel. +61 8 8415 5600 484 St Kilda Road Melbourne VIC 3004 Tel. + 61 3 8639 3200
Regional Oces 39-41 Tank Street Gladstone QLD 4680 Tel. +61 7 3058 7000 19B Darling Terrace Whyalla SA 5600 Tel. +61 8 8645 2145 48-50 Smith Street Darwin NT 0801 Tel. +61 8 8943 0625 43 River Street Mackay QLD 4740 Tel. +61 7 4953 3000
www.logicamms.com.au

LCM Logicams AR2012

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LCM Logicams AR2012

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Annual Report

Key Metrics FY12

Record basic earnings per share

Record dividend per share

Record return on equity

Performance Highlights Our Business Chairmans Report

Managing Directors Report 6 Project Snapshot 8 9 Our Vision and Values

Strategy Board and Management

People, Health & Safety

Projects & Customers

Pipeline & Order Book

rance & Assu g/ leneckin Debott n io at Optimis

IONAL OPERAT CE EN EXCELL

LogiCamms Annual Review 2012

ELIVE RY C APA BIL RIO TI ITY NTO RIO TI NTO

E BP SID D OO A W AP GAS A SE QGC

TY QUALI AND HSE IN IVOT CE INCITEC P EN N SUCROGE LL CE BORAL EX SUNSTATE

TURE STRUC INFRA INDUSTRY &

Infrastructure & Industry

Mining & Minerals

Governance and risk management

Board and management

LogiCamms Annual Review 2012

EPS (cents per share)

DPS (cents per share)

Health and safety

Peter Watson Non-Executive Chairman

Employees at LogiCamms Brisbane oce

Managing Directors Report

It is with great pleasure thatI report on LogiCamms performance during 2012.

Health and safety

Our business performance

LogiCamms Annual Review 2012

Markets and project activity

Strategy and outlook

Steve Banning Managing Director

Project lifecycle phases

LogiCamms Annual Review 2012

Our Vision is to be a market leader delivering outstanding customer solutions.

Delivering QUality ResUlts

What we want to achieve

LogiCamms Annual Review 2012

Services and Contracts

Leveraged foundation capabilities

People and Organisation

People and Culture strategy Focus on talent management

People and Culture strategy Ongoing workforce training and

Strengthened strategy and risk

management framework Bolstered business systems and project delivery framework

How we will deliver

Our competitive advantages

Board and Management

Business leader with an accomplished career history in engineering, construction andservices.

Senior management expertise and corporate governance specialist.

Long standing tenure at S. Smith & Sons (The Yalumba WineCompany)

Qualied engineer and management professional with decades of operationalexpertise.

Former CFO at MonadelphousGroup Chairman of Decmil Group(ASX:DGL)

Former senior management tenures atMobil Oil and Santos

Former corporate lawyer at AGL Energy andLinklaters in London

Former GM of Global Strategy and Mergers & Acquisitions for WorleyParsons

Former senior roles with Ernst &Young and WorleyParsons

LogiCamms Annual Review 2012

LogiCamms Financial Report 2012