Tox Free : Toxfree Annual Report - August 2017

Annual Report‌

Toxfree Solutions Ltd

ABN 27 058 596 124

CONTENTS

FY17 HIGHLIGHTS 02

BOARD AND MANAGEMENT 04

CHAIRMAN AND MANAGING DIRECTOR'S LETTER 24

REVIEW OF OPERATIONS 26

SUSTAINABILITY REPORT 40

DIRECTORS' REPORT 49

CORPORATE GOVERNANCE STATEMENT 88

AUDITOR'S INDEPENDENCE DECLARATION 89

FINANCIAL REPORT

CONSOLIDATED STATEMENT OF PROFIT OR LOSS 90

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 91

CONSOLIDATED BALANCE SHEET 92

CONSOLIDATED STATEMENT OF CASH FLOWS 94

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 95

CONTENTS OF THE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 97

DIRECTORS' DECLARATION 185

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS 186

SHAREHOLDER INFORMATION 190

CORPORATE DIRECTORY 193

FY17Highlights

Toxfree partners with customers to deliver tailored,

Underlying Non IFRS Results 2017

Revenue EBITDA* NPATA* Dividend Cash Conversion**

innovative and efficient waste management solutions

and produced strong underlying earnings growth

$496.1m $82.8m $28.6m 9.5cps

26% 14% 14% 6%

91%

Statutory IFRS Results 2017

Revenue EBITDA NPATA Dividend Cash Conversion

$496.1m $68.7m $16.8m 9.5cps

26% 15% 12% 6%

110%

Acquired Daniel's Health - Australia's largest provider of healthcare waste

treatment services

Maintained successful track record of contract wins - awarded contracts

totalling over $100m of revenue in FY17

Australia Business Awards winner for Human Resource Management 2016 - "Closing the Gap" initiative re-defined approach to indigenous engagement

Diversification strategies successfully reduced earnings concentration risk

Focused on improving return on invested capital - undertook effective asset swap with JJ Richards1

Demonstrated leadership in environmental sustainability - developed Toxfree Fuel solution, transforming waste into fuel

1. Asset swap at equivalent earnings (EBITDA) and asset value

02

** Gross operating cast flow to EBITDA

*Non-IFRS Financial Information - Normalised for non-operational adjustments - see Table 2 on page 30

Experienced Board of Directors and Executive team

Dedicated directors with over 150 years of combined corporate experience

ROBERT McKINNON

Non-Executive Chairman

STEVE GOSTLOW

Managing Director

MICHAEL HUMPHRIS

Non-Executive Director

2017 Annual Report

Extensive operating network with nationwide coverage

Strong executive team with significant industry, financial and technical expertise

RICHARD ALLEN

Non-Executive Director

KATHY HIRSCHFELD

Non-Executive Director

DAVID McARTHUR

Company Secretary

1,564

Employees

81

Operating locations

895

Vehicles

Strong reputation for innovation and technical excellence

23

248

2

14 21

293

4

18

13

134

15

180

3

8

MICHAEL CONSTABLE

Chief Financial Officer

SARAH BAGSHAWE

04

Executive General Manager Human Resources

PETER GOODWIN

Chief Operating Officer

JOSH BOVELL

Chief Information Officer

JASON DIXON

Executive General Manager Corporate & Risk

Toxfree's deep technical expertise across a broad range of hazardous and specialty waste streams reflects a capability and passion for developing effective, safe technology solutions with a positive environmental impact.

Toxfree will continue to commit significant resources to technical improvement and innovation, to meet

evolving customer needs and provide best-practice waste management solutions.