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AVJennings Limited

ABN: 44 004 327 771

30 June 2010 Preliminary Final Report Appendix 4E

This Financial Report does not include all the notes of the type normally included in an Annual Financial Report. Accordingly, it is recommended that this Report be read in conjunction with the Annual Report for the year ended 30 June 2009 and any public

announcements made by AVJennings Limited during the year ended 30 June 2010 in accordance with the continuous disclosure requirements of the Listing Rules of the Australian Securities Exchange.

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AVJennings Limited ABN 44 004 327 771 – 30 June 2010 Preliminary Final Report

Contents

PageResults for Announcement to the Market…………………………………………………………………………………………………………..3Directors' Report………………..………………………………………………………………………..4Statement of Comprehensive Income……………………………………………………………………………….…………………………8Statement of Financial Position……………………………………………………………………………..……………………………………..9Statement of Changes in Equity…………………………………..…………………………………………………..10Statement of Cash Flows…………………………………………………………..…………………………………………….11Notes to the Financial Statements………………………………….…………………………………………………..121 Corporate information……..………………………………………………………………..122 Basis of preparation and accounting policies…………………………………………………………123 Revenues and expenses……………………………………………………………………………………………..134 Income tax…………………………………………………………………………………..145 Dividends paid and proposed…………………………………………………………………………………….156 Discontinuing operations......................................................................................... 157 Contributed equity …………………..………………………………………………………………………………………………………….178 Cash and cash equivalents……………………………………………………………………………………………..189 Operating segments…………………………………………………………………………………………………1810 Net tangible asset backing……………………………………………………………………………………….2111 Interest in joint venture operations…………………………………………………………………….2112 Investments accounted for using the equity method………………………………………2213 Contingencies…………………………………………………………………………………2214 Events after the balance sheet date………………………………………………………………………………….2215 Status of review of accounts...........................................................................................23

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Results for Announcement to the MarketAppendix 4E for the year ended 30 June 2010

2010 2009 $'000 $'000 $'000 %

Continuing operationsRevenues 259,123 355,921 (96,798) (27.2)%

Profit after tax fromcontinuing operations 14,245 5,365 8,880 165.5%

Discontinuing operationsLoss after tax fromdiscontinuing operations (4,629) (18,089) 13,460 74.4%

Net profit / (loss) attributable to members 9,616 (12,724) 22,340 175.6%

Cents per Franked amount persecurity security at 30% tax

Interim dividendFinal dividendTotal dividend

Previous corresponding periodTotal dividend

Record date for determining entitlements to dividend:

Payment date:

The Company's Dividend Re-Investment Plan has been suspended.

Explanation of results

Please refer to the Review of Operations in the attached Directors' Report for an explanation of theresults.

Increase/(Decrease)

Dividends

1.5 1.5

NIL NIL

17 September 2010

30 September 2010

NIL NIL

1.5 1.5

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Directors’ Report For the year ended 30 June 2010 Your Directors present their Report on the Company and its controlled entities for the year ended 30 June 2010. DIRECTORS

The names of the Company’s Directors in office during the year and until the date of this Report are as below. Directors were in office for the entire period unless otherwise stated. Mr Simon Cheong (Chairman) Mr Jerome Rowley (Deputy Chairman) Mr Peter K Summers Mrs Elizabeth Sam Mr Herman R Hochstadt Mr Bobby Chin Mr Bruce G Hayman REVIEW OF OPERATIONS Financial Performance The Company increased Net Profit after Tax by 176% to $9.6m for the full year to 30 June 2010. Net Profit from Continuing Operations was $14.2m, an increase of 166%, while the Discontinuing Operations (Contract Building sold to Sekisui House Australia) returned a loss of $4.6m for the full year – a 74% improvement on the previous year’s loss of $18.1m. The last 18 months have been challenging and there are still some hurdles to overcome, but the Company is back on track to profitability. The sale of the Contract Building Division to Sekisui House Australia is an indicator of the Board and Management’s strategy to focus on our core skills of Land, Integrated Housing and Low-Rise Apartment Buildings. Business Performance Increasing levels of uncertainty in the market and a desire to re-position the Company for the future resulted in the Company taking a conservative view in the last 12 months. This included the postponement in the commencement of some projects. These projects are now underway and will contribute to improved revenues towards the second half of FY11. However, some uncertainty remains in relation to the upcoming State and Federal government elections, the end to the First Home Owner’s Grant, recent increases in interest rates, inadequate government planning, excessive government charges and the lack of co-ordinated land release strategies. Victoria has performed strongly. While the Company has benefited from the state’s strong migration program and reasonable planning and approval processes, the major factor has been the Company’s ability to create high quality projects in strong growth areas. New South Wales continues to be slow, though it has improved on 2009. The removal of stamp duty for sales off the plan under $600,000 is expected to be positive in the medium to long-term – however it has reduced housing starts as there is a substantial disincentive to start construction without pre-sales. The results for the year benefited positively from the Erskineville apartment project. Key components of the project’s success were the location, and the mix of high-quality affordable housing constructed – both essential in the still subdued Sydney market.

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Directors’ Report For the year ended 30 June 2010 REVIEW OF OPERATIONS (continued) Business Performance (continued) The Queensland market has not been as buoyant as other states. However, good revenue streams are anticipated as the Company has a number of projects in good locations and at price points that are attractive to buyers. The South Australian market and the Company’s performance within that market has been satisfactory. The Company’s flagship project, the redevelopment of the Cheltenham Racecourse, is being undertaken as a joint venture with Urban Pacific Limited. Development will commence in the coming months, and the project will be an important new revenue stream. Land and Integrated Housing Land development is, and will continue to be, an important element of the Company’s operations. However, the Company’s skill in delivering high quality Integrated Housing has been a key factor in its ability to respond to demanding times in recent years. This skill will be even more important as planning approval processes become more complex and the need to deliver affordable housing in spite of rising land prices increases. Contract Building Following a number of years of losses and a detailed operational review in the early part of FY10, the Board was optimistic that the Division could be turned around. However, the unsolicited approach by Sekisui House Australia in December 2009 provided the opportunity for the Company to form an alliance with this leading international residential builder. The transaction, which settled on 2 August 2010, resulted in the Company selling the assets of its Contract Building Division – including freehold and leasehold displays, house designs and the right to manage all existing contracts. In return, the Company received payments of approximately $20.0m. Sekisui will also pay royalties for the right to use the AVJennings brand for its contract building operations for the next 3 years. Financial Strength and Funding Capital management has been a key focus of the Board and Management, particularly over the last 2 years. This is reflected in the continued strengthening of the AVJennings Balance Sheet through the reduction of bank debt. As at 30 June 2010, Net Debt, including a proportionate share of joint venture debt, was $81.4m, a 35% reduction over the previous year, and a 58% reduction from 2008 when Net Debt was $194.3m. Consequently, the Company is well placed to capitalise on new growth opportunities that are starting to emerge in the residential sector. The Company has received offers from its bankers to renew its main facilities. Over the year, it has also introduced new financial institutions allowing the Company greater project funding flexibility.

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Directors’ Report For the year ended 30 June 2010 REVIEW OF OPERATIONS (continued) Management Structure The full year results reflect the total review of the Company’s operations undertaken early in 2009. The outcome has been a stronger management team, with more responsibility and more accountability for their own areas of control and expertise. The focus on building a strong national management team has resulted in greater planning and project monitoring, reduced costs and better workflow control at the local level. Outlook The major focus for the next 12-18 months is sustained, consistent improvement. The Company has a solid base of some 9,400 developable lots in its pipeline, the benefit of the AVJennings brand and, coupled with improved internal structures, a stronger management team and strengthened financial resources. Consequently, challenging goals have been set. Despite slow land release processes in parts of Australia, the Company is actively looking to build its pipeline in the coming 12-18 months. The Company will continue to adopt the same prudent investment criteria in assessing acquisition opportunities. DIVIDENDS Reflecting confidence in the refocussed AVJennings, Directors have resumed dividends, declaring a final dividend of 1.5 cents per share, fully franked (2009: Nil). It was also decided to suspend the Dividend Reinvestment Plan. COMPARATIVE FIGURES To enable meaningful comparison, some comparatives have been reclassified to conform with the current year’s presentation. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS The Consolidated Entity’s main banking facilities mature on 30 September 2010. As a result, the borrowings under these facilities are shown as a current liability on the Statement of Financial Position at 30 June 2010. As mentioned in the Review of Operations, subsequent to the end of the financial year, the Company has received approval from its bankers to renew its main banking facilities. On 10 June 2010, AVJennings Limited entered into a contract to sell its Contract Building Division to a Japanese listed company, Sekisui House Limited (via its wholly owned Australian subsidiary Sekisui House Australia Holdings Pty Limited). The transaction was conditional upon approval of the Foreign Investment Review Board (FIRB) and other regulatory approvals. These approvals were subsequently received and the transaction settled on 2 August 2010.

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Directors’ Report For the year ended 30 June 2010 EVENTS AFTER BALANCE SHEET DATE Other than matters relating to extension of the main banking facilities and the sale of the Contract Building Division discussed elsewhere in this Report, no matter or circumstance has arisen since 30 June 2010 that has significantly affected, or may significantly affect:

a) the Consolidated Entity’s operations in future financial years; or b) the results of those operations in future financial years; or c) the Consolidated Entity’s state of affairs in future financial years.

ROUNDING OF AMOUNTS The Company is of a kind referred to in the Australian Securities and Investments Commission Class Order 98/0100 dated 10 July 1998. Accordingly, amounts in the Directors' Report, the Financial Statements and the Notes thereto have been rounded to the nearest thousand dollars, or in certain cases, to the nearest dollar.

This Report is made in accordance with a resolution of the Directors.

Peter Summers Director 12 August 2010

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Statement of Comprehensive Income For the year ended 30 June 2010

2010 2009Note $’000 $’000

Continuing operationsRevenues 3 259,123 355,921 Share of profits of associates and joint ventures accounted for us ing the equity m ethod 12 2,124 1,361 Change in inventories , finished goods and work-in-progress (210,567) (304,352) Other operational expenses (4,030) (5,346) Advertis ing expenses (3,389) (4,105) Display cos ts (1,096) (1,433) Em ployee expenses (21,869) (26,076) Depreciation and am ortisation expense (1,639) (1,983) Finance cos ts 3 (641) (1,109) Fair value gain/(loss ) on interes t rate derivatives 2,855 (4,412) Other expenses (2,042) (677)

Profit from continuing operations before income tax 18,829 7,789 Incom e tax expense 4 (4,584) (2,424)

Profit from continuing operations after income tax 14,245 5,365

Discontinuing operationsLoss from discontinuing operations after incom e tax 6 (4,629) (18,089)

Net profit / (loss) for the year 9,616 (12,724)

Other comprehensive incomeForeign currency trans lation (1) 1

Other comprehensive income / (loss) for the year net of tax (1) 1

Total comprehensive income / (loss) for the year 9,615 (12,723)

Earnings per share for profit from continuing operations attributable to ordinary equity holders of the parent:

Cents Cents

Bas ic earnings per share 5.19 1.97Diluted earnings per share 5.19 1.97

Earnings per share for profit/(loss ) attributable to ordinary equity holders of the parent:

Bas ic earnings per share 3.50 (4.68)Diluted earnings per share 3.50 (4.68)

Consolidated

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Statement of Financial Position As at 30 June 2010

2010 2009Note $’000 $’000

CURRENT ASSETSCash and cash equivalents 8 24,110 6,475 Trade and other receivables 15,409 15,229 Inventories 108,522 188,539 Other current assets 1,712 4,367 Assets of disposal group class ified as held for sale 43,228 - Total current assets 192,981 214,610

NON-CURRENT ASSETSInventories 233,640 217,434 Inves tm ents accounted for us ing the equity m ethod 41,268 40,021 Property, plant and equipm ent 1,866 5,207 Intangible asset 2,816 3,062 Total non-current assets 279,590 265,724

Total assets 472,571 480,334

CURRENT LIABILITIESTrade and other payables 28,788 50,966 Derivative financial ins trum ents 509 3,365 Interes t-bearing loans and borrowings 67,212 109,152 Tax payable 905 - Provis ions 3,565 4,831 Liabilities directly associated with the assets class ified as held for sale 21,966 - Total current liabilities 122,945 168,314

NON-CURRENT LIABILITIESTrade and other payables 17,150 5,319 Interes t-bearing loans and borrowings 15,014 460 Deferred tax liabilities 17,398 15,651 Provis ions 646 847 Total non-current liabilities 50,208 22,277

Total liabilities 173,153 190,591

Net assets 299,418 289,743

EQUITYEquity attributable to equity holders of the parent Contributed equity 7 122,578 122,578 Reserves 81 22 Retained earnings 176,759 167,143

Total equity 299,418 289,743

Consolidated

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Statement of Changes in Equity For the year ended 30 June 2010

Attributable to equityholders of the parent Total equity

Issued Reserves Retainedcapital earnings

Note $'000 $'000 $'000 $'000

At 1 July 2008 119,247 - 185,199 304,446

Loss for the year - - ( 12,724 ) ( 12,724 ) Other comprehensive income for the year - 1 - 1 Total comprehensive loss for the year - 1 ( 12,724 ) ( 12,723 ) Transactions with owners in their capacity as owners- Ordinary share capital raised 7(a) 3,590 - - 3,590 - Treasury shares acquired 7(b) ( 259 ) - - ( 259 ) - Share-based payment reserve 21 - 21 - Dividends 5 - - ( 5,332 ) ( 5,332 )

3,331 22 ( 18,056 ) ( 14,703 )

At 30 June 2009 122,578 22 167,143 289,743

At 1 July 2009 122,578 22 167,143 289,743

Profit for the year - - 9,616 9,616 Other comprehensive loss for the year - ( 1 ) - ( 1 ) Total comprehensive income for the year - ( 1 ) 9,616 9,615 Transactions with owners in their capacity as owners- Share-based payment reserve - 60 - 60

- 59 9,616 9,675

At 30 June 2010 122,578 81 176,759 299,418

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Statement of Cash Flows For the year ended 30 June 2010

2010 2009Note $’000 $’000

CASH FLOWS FROM OPERATING ACTIVITIESReceipts from cus tom ers 491,400 559,961 Paym ents to suppliers , land vendors and em ployees (432,079) (468,300) Interes t paid (13,751) (15,434) Incom e taxes refunded - 706

Net cash from operating activities 45,570 76,933

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipm ent 629 292 Purchase of property, plant and equipm ent (756) (2,230) Interes t received 567 567 Dis tribution received 1,120 240 Inves tm ents in associates and joint venture entities (2,367) (7,528)

Net cash used in investing activities (807) (8,659)

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from borrowings 136,098 135,922 Repaym ent of borrowings (162,549) (201,738) Paym ent of finance lease liability (677) (932) Paym ent for treasury shares 7(b) - (259) Equity dividends paid - (1,742)

Net cash used in financing activities (27,128) (68,749)

NET INCREASE/(DECREASE) IN CASH HELD 17,635 (475) Cash and cash equivalents at beginning of year 6,475 6,950

CASH AND CASH EQUIVALENTS AT END OF YEAR 8 24,110 6,475

Consolidated

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Notes to the Financial Statements For the year ended 30 June 2010 1. CORPORATE INFORMATION The Financial Statements of AVJennings Limited and its subsidiary companies (‘the Consolidated Entity’) for the year ended 30 June 2010 were authorised for issue in accordance with a resolution of the Directors on 12 August 2010. The Company is incorporated in Australia and limited by shares, which are publicly traded on the Australian Securities Exchange. The nature of the operations and principal activities of the Consolidated Entity are described in Note 9, Operating Segments. These Financial Statements have been prepared in accordance with the requirements of the Australian Securities Exchange (ASX) listing rules. 2. BASIS OF PREPARATION AND ACCOUNTING POLICIES These general purpose condensed Financial Statements for the year ended 30 June 2010 have been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001. The Statements have been prepared on a historical basis except for derivative financial instruments which have been measured at fair value. The condensed Financial Statements do not include all notes of the type normally included within the annual Financial Statements and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Consolidated Entity as the full financial statements. It is recommended that these Financial Statements be read in conjunction with the Annual Report for the year ended 30 June 2009 and considered together with any public announcements made by AVJennings Limited during the year-ended 30 June 2010 in accordance with the continuous disclosure obligations of the ASX listing rules. These Financial Statements are presented in Australian Dollars and all values are rounded to the nearest thousand dollars ($’000) unless otherwise stated under the option available to the Company under Australian Securities and Investments Commission Class Order 98/0100. The Company is an entity to which the class order applies. The accounting policies and methods of computation are the same as those adopted in the Financial Statements for the year ended 30 June 2009. The following amending Standards have been adopted from 1 July 2009. Adoption of these Standards did not have any effect on the financial position or performance of the Consolidated Entity. • AASB 8 Operating Segments and AASB 2007-3 Amendments to Australian Accounting Standards

arising from AASB 8. • AASB 101 Presentation of Financial Statements (revised September 2007), AASB 2007-8

Amendments to Australian Accounting Standards arising from AASB 101. • AASB 123 Borrowing Costs (revised), AASB 2007-6 Amendments to Australian Accounting

Standards arising from AASB 123. • AASB Interpretation 15 Agreements for the Construction of Real Estate. • AASB 1039 Concise Financial Reports (revised). • AASB 2007-10 Further Amendments to Australian Accounting Standards arising from AASB 101. Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective have not been adopted by the Consolidated Entity for the annual reporting period ended 30 June 2010. These are not expected to have any significant impact on the Financial Statements or performance of the Consolidated Entity.

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Notes to the Financial Statements For the year ended 30 June 2010 3. REVENUES AND EXPENSES Profit from ordinary activities before income tax includes the following revenues and expenses:

2010 2009$’000 $’000

Revenues from continuing operationsDevelopm ents 248,338 341,659 Hom e Im provem ents 6,380 7,946 Interes t revenue 685 2,609 Managem ent fees 3,012 2,697 Rental revenue 67 49 Sundry revenue 641 961

Total revenues 259,123 355,921

Finance costs for continuing operationsBank loans and overdrafts 13,676 15,303 Finance charges payable under finance leases 75 131 Total finance cos ts 13,751 15,434

Less : Am ount capitalised to inventories (13,110) (14,325)

Total finance costs expensed 641 1,109

Consolidated

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Notes to the Financial Statements For the year ended 30 June 2010 4. INCOME TAX

2010 2009$’000 $’000

Income tax expense

The major components of income tax expense are:Current incom e tax Current incom e tax charge 771 -

Adjus tm ent for prior periods 20 793Deferred incom e tax

Current year tem porary differences 1,766 (5,343) Adjus tm ent for prior periods 43 (778)

Income tax (credit) / expense reported in theStatement of Comprehensive Income 2,600 (5,328)

Consolidated

Numerical reconciliation between aggregate tax expense recognised in the Statement of Comprehensive Income and tax expense calculated per the statutory income tax rate: Accounting profit before income tax from continuing operations 18,829 7,789 Loss before income tax from discontinuing operations (6,613) (25,842) Total accounting profit / (loss) before income tax 12,216 (18,053)

Tax at Aus tralian incom e tax rate of 30% (2009 - 30%) 3,665 (5,416) Adjus tm ent for prior periods (559) 15 Equity accounted share of Joint Venture profits (544) (119) Other non-deductible item s and variations 38 192 Aggregate income tax expense / (benefit) 2,600 (5,328)

Aggregate incom e tax expense/(benefit) is attributable to:Continuing operations 4,584 2,424 Discontinuing operations (1,984) (7,752)

2,600 (5,328)

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Notes to the Financial Statements For the year ended 30 June 2010 5. DIVIDENDS PAID AND PROPOSED

2010 2009$’000 $’000

Dividends paid on ordinary shares during the year2008 final dividend of 2.0 cents per fully paid share,paid 31 October 2008. Fully franked @ 30% tax - 5,332

Total dividends paid during the year - 5,332

Dividends proposed and not recognised as a liability2010 final dividend of 1.5 cents per fully paid share, to be paid 30 Septem ber 2010. Fully franked @ 30% tax 4,119 -

Total dividends proposed 4,119 -

Consolidated

6. DISCONTINUING OPERATIONS

(a) Details of operations held for sale On 10 June 2010, AVJennings Limited entered into a conditional contract to sell its Contract Building division to the Japanese listed company, Sekisui House Limited (via its wholly owned Australian subsidiary Sekisui House Australia Holdings Pty Limited). The arrangement will also see the two companies form an alliance around land and the use of the AVJennings brand, ownership of which will remain with AVJennings Limited. The contract became unconditional subsequent to the year end and was settled on 2 August 2010. On completion, AVJennings received a payment of approximately $20 million under the arrangement which equates to the net asset value of the business on 31 July 2010. The total payment is subject to adjustment when final accounts are completed. The Contract Building division forms part of the Contract Building segment. At 30 June 2010 the Contract Building division was classified as a disposal group held for sale. AVJennings will retain ownership of the AVJennings brand and continue to use this brand for its Developments operations. It has licensed to Sekisui House the “AVJennings” brand and associated trade marks for use in the Contract Building business in return for a royalty based on the revenue and profit for the business for an initial three year term.

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Notes to the Financial Statements For the year ended 30 June 2010 6. DISCONTINUING OPERATIONS (continued)

(b) Financial performance of operations held for sale The results of the discontinuing operations for the current and prior year are presented below:

2010 2009

Note $’000 $’000

External sales 203,345 150,910 Other revenue 172 24 Change in inventories, finished goods and work-in-progress (165,252) (128,076) Other expenses (44,878) (48,700)

Loss from discontinuing operations before tax (6,613) (25,842) Tax benefit 1,984 7,753 Loss from discontinuing operations after tax (4,629) (18,089)

Reconciliation to segment results

Segment results 9 6,775 (8,925)Other revenue 172 24Indirect expenses (13,339) (14,895)Interest expense (221) (2,046)

Loss from discontinuing operations before tax (6,613) (25,842) Tax benefit 1,984 7,753 Loss from discontinuing operations after tax (4,629) (18,089)

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Notes to the Financial Statements For the year ended 30 June 2010 7. CONTRIBUTED EQUITY

Consolidated2010 2009 2010 2009

Number Number $’000 $’000

Ordinary shares 274,588,694 274,588,694 122,837 122,837 Treasury shares (666,667) (1,000,000) ( 259 ) ( 259 )

Share capital 122,578 122,578

(a) Movement in ordinary share capital Number Number $’000 $’000

As at the beginning of the year 274,588,694 266,624,462 122,837 119,247

Dividend Reinves tm ent Plan issue31 October 2008 - is sue price $0.45 per share - 7,964,232 - 3,590

- 7,964,232 - 3,590

As at the end of the year 274,588,694 274,588,694 122,837 122,837

Fully paid ordinary shares carry one vote per share and carry the right to dividends. There are currently no unexercised or outstanding options. No options were exercised during the year. (b) Movement in treasury shares

As at the beginning of the year (1,000,000) - (259) - Acquis ition of shares by AVJ Deferred Em ployeeShare Plan Trus t - (1,000,000) - (259) Em ployee shares issued 333,333 - - -

As at the end of the year (666,667) (1,000,000) (259) (259)

Treasury shares are shares in AVJennings Limited that are held by the AVJ Deferred Employee Share Plan Trust for the purpose of issuing shares to the Chief Executive Officer via the AVJ Deferred Employee Share Plan. The original cost of the shares is treated as a reduction in share capital and the underlying shares identified separately as treasury shares.

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Notes to the Financial Statements For the year ended 30 June 2010 8. CASH AND CASH EQUIVALENTS For the purpose of the Statement of Cash Flows, cash and cash equivalents comprise the following:

2010 2009 $’000 $’000

Cash at bank and in hand 24,110 6,475

Consolidated

9. OPERATING SEGMENTS Identification of reportable segments The Consolidated Entity has identified its operating segments based on the internal reports that are reviewed and used by the chief operating decision makers in assessing performance and in determining the allocation of resources. The operating segments are identified by management based on the nature of the products sold and services provided. Discrete financial information about each of these operating businesses is reported on a monthly basis. The reportable segments are based on aggregated operating segments determined by the similarity of the products produced and sold and services provided, as these are the sources of the Consolidated Entity's major risks and have the most effect on the rates of return. Types of products and services The Consolidated Entity operates primarily in residential development and contract building and reports by operating segment. Accounting policies and inter-segment transactions The accounting policies used in reporting segments are the same as those contained in note 2 to the Financial Statements and those used in the Financial Statements for the year ended 30 June 2009. Operating segments Land Development Builders buy land from AVJennings onto which they package their building products, or end customers buy land from an AVJennings estate and choose their own builder. Integrated Housing and Apartments Development The customer buys a completed home, townhouse or apartment within an AVJennings development. Contract Building The customer contracts to build a home with AVJennings on land they have sourced themselves. Other This includes the Home Improvements business where AVJennings carries out work on renovating a customer’s house. This segment operates in South Australia only.

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Notes to the Financial Statements For the year ended 30 June 2010 9. OPERATING SEGMENTS (continued) The following table presents the revenues and results information regarding operating segments for the year ended 30 June 2010.

Continuing Operations Discontinuing Operations Total Operations

Land Integrated Housing Apartments Other Contract Building Consolidated2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

RevenuesExternal sales 80,586 166,371 99,158 145,634 68,594 29,654 6,380 7,946 203,345 150,910 458,063 500,515 Managem ent fees 1,749 1,285 1,263 186 - 1,226 - - - - 3,012 2,697 Other revenue - - - - - - 1,393 3,619 172 24 1,565 3,643

Total revenues 82,335 167,656 100,421 145,820 68,594 30,880 7,773 11,565 203,517 150,934 462,640 506,855

ResultsSegm ent results * 12,545 11,722 6,477 9,634 6,519 (602) 267 (206) 6,775 (8,925) 32,583 11,623 Fair value m ovem ent in interes t rate derivatives - - - - - - - - - - 2,855 (4,412) Other incom e - - - - - - 1,393 3,619 172 24 1,565 3,643 Unallocated depreciation and am ortisation - - - - - - - - - - (1,639) (1,983) Unallocated expenses - - - - - - - - - - (22,507) (25,814) Unallocated interes t expense - - - - - - - - - - (641) (1,109) Profit/(loss ) before tax 12,216 (18,052) Incom e tax (2,600) 5,328

Net profit/(loss) 9,616 (12,724)

Operating segments

* Please refer to note 6(b) for a reconciliation of the segment results of the discontinuing operations to the loss after tax.

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Notes to the Financial Statements For the year ended 30 June 2010 9. OPERATING SEGMENTS (continued) The following table presents the assets and liabilities information regarding operating segments as at 30 June 2010.

Continuing Operations Discontinuing Operations Total Operations

Land Integrated Housing Apartments Other Contract Building Consolidated2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

AssetsSegm ent assets 221,334 259,989 174,510 112,028 1,875 52,917 (1,666) 369 43,228 42,144 439,281 467,447 Unallocated assets - - - - - - - - - - 33,290 12,887

Total assets 221,334 259,989 174,510 112,028 1,875 52,917 (1,666) 369 43,228 42,144 472,571 480,334

LiabilitiesSegm ent liabilities 28,628 22,970 12,045 9,978 1,669 3,943 (2,619) 295 21,966 16,880 61,689 54,066 Unallocated liabilities - - - - - - - - - - 111,464 136,525

Total liabilities 28,628 22,970 12,045 9,978 1,669 3,943 (2,619) 295 21,966 16,880 173,153 190,591

Operating segments

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Notes to the Financial Statements For the year ended 30 June 2010 10. NET TANGIBLE ASSET BACKING

2010 2009Cents Cents

Net Tangible Asset backing (NTA) - cents per ordinary security 108.0 104.4

Consolidated

Ordinary shares on issue as at 30 June 2010 were 274,588,694 (2009: 274,588,694). Refer to note 7 for details. 11. INTEREST IN JOINT VENTURE OPERATIONS The Consolidated Entity’s interest in the profits and losses of Joint Venture Operations is included in the Statement of Comprehensive Income under the following classifications:

2010 2009$’000 $’000

Revenues 63 10,430 Cos t of sales - ( 8,976 ) Other expenses ( 312 ) ( 288 )

(Loss) / profit before income tax ( 249 ) 1,166 Incom e tax credit / (expense) 75 ( 350 )

Net (loss)/profit attributable to members of the parent ( 174 ) 816

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Notes to the Financial Statements For the year ended 30 June 2010 12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD The interest in an associate or a joint venture entity is accounted for using the equity method of accounting and is carried at cost. Under the equity method, the consolidated entity’s share of the results of the associate or the joint venture entity is recognised in the Statement of Comprehensive Income, and the share of movements in reserves is recognised in the Statement of Financial Position. The information is set out below:

2010 2009$'000 $'000

Epping JV 10% 10% 311 700 Creekwood (Meridan Plains ) 50% 50% 208 88 Eas twood 50% 50% 713 265 Sydney Olym pic Park Developm ent 50% 50% - - Woodville 50% 50% 892 308 Profit after tax 2,124 1,361

2010 2009

Share of Net profitEquity accounted

Associates & Joint Ventures Interes t held in output

Nam e of Associate & Joint Ventures

13. CONTINGENCIES Secured Performance guarantees Contingent liabilities in respect of certain performance guarantees, granted by controlled entities in the normal course of business to unrelated parties, at 30 June 2010, amounted to $18,836,000 (2009: $29,393,000). No liability is expected to arise. Financial guarantees Financial guarantees granted by the Consolidated Entity’s bankers to unrelated parties in the normal course of business at 30 June 2010, amounted to $871,000 (2009: $968,000). No liability is expected to arise. 14. EVENTS AFTER BALANCE SHEET DATE Other than matters relating to extension of the main banking facilities and the sale of the Contract Building Division discussed elsewhere in this report, no matter or circumstance has arisen since 30 June 2010 that has significantly affected, or may significantly affect: a) the Consolidated Entity’s operations in the future financial years; or b) the results of those operations in future financial years; or c) the Consolidated Entity’s state of affairs in future financial years.

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Notes to the Financial Statements For the year ended 30 June 2010 15. STATUS OF REVIEW OF ACCOUNTS This Financial Report is based on accounts which are in the process of being audited.

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for personal use only - asx.com.au fileavjennings limited abn 44 004 327 771 – page 3 30 june 2010...

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