FP Report 2012

FISHER & PAYKEL
APPLIANCES HOLDINGS LIMITED

ANNUAL REPORT
For the year ended 31 March 2012
Contents
1
Chairman's Review
Managing Director and CEOs Review
15
Our Brand
26
Corporate Responsibilities
42
Directors
48
Directors' Report and Corporate Governance
54
Auditors' Report
66
Financial Statements
68
Notes to the Financial Statements
73
10
Company Information
165
P2
FISHER & PAYKEL APPLIANCES HOLDINGS LIMITED AND SUBSIDIARIES
TECH
p
37.8M
NEW DIRECT DRIVE MOTOR AGREEMENT
FINANCE BUSINESS PERFORMANCETHE
AGREEMENT TO DEVELOP, DESIGN AND
FINANCE BUSINESS REPORTED A
MANUFACTURE DIRECT DRIVE WASHING
NORMALISED OPERATING PROFIT BEFORE
MACHINE MOTORS SIGNED IN
INTEREST AND TAX OF $37.8 MILLION
AUGUST 2011
p
$0.9M
p
$4M
NORTH AMERICAN BUSINESS PROFIT
IMPROVED CASHFLOWCASHFLOW FROM
THE NORTH AMERICAN DISTRIBUTION
OPERATIONS, EXCLUDING THE MOVEMENT
AND SERVICES BUSINESS MADE AN
IN FINANCE LOANS WAS $117 MILLION
OPERATING PROFIT BEFORE INTEREST
COMPARED TO $113 MILLION LAST YEAR
AND TAX OF $0.9 MILLION
CHAIRMANS REVIEW
P3
RANGE
q
$65M
NEW PRODUCTSNEW PRODUCT
DEBT REDUCTIONAPPLIANCES NET
RELEASES INCLUDED THE PHASE 7
DEBT AS AT 31 MARCH 2012 WAS
DISHDRAWER, GAS ON GLASS COOK TOPS
$65 MILLION
AND THE DCS UNITED INDOOR COOKING

RANGES AND DCS REFRIGERATION
INDIA
APPLIANCES ENTERED THE MARKET IN
INDIA WITH A FOCUS ON THE SPECIFER,
DESIGNER AND ARCHITECT COMMUNITY
IN THE DELHI REGION
P4
Milton Keynes
UK
Ontario
Canada
Dublin
Ireland
Los Angeles
USA
Borso del Grappa
Italy
Clyde
USA
Reynosa
Mexico
Refrigeration
Cooking
Laundry
DishDrawer
Regional/Sales
Office
Research And
Development
P5
Qingdao
China
Rayong
Thailand
Singapore
Auckland
New Zealand
Sydney
Australia
Marketing and selling
in over 50 countries.
Dunedin
New Zealand
A Global Company
Fisher & Paykel
Appliances Holdings
Limited comprises two
operating divisions:
__Appliances
__Finance (New Zealand
only)
Founded in 1934 as an
importer business.
Now has over 3,300
employees.
Internationally recognised brand.

__#1 in New Zealand
__#2 in Australia
__Niche high-end
market positions
in North America,
Europe and China
Marketing and selling
in over 50 countries.
Designs, manufactures
and sells direct drive
washing machine components and technology
to the global appliances
industry
Research and Development centres based in

Auckland and Dunedin,
New Zealand.
Fisher & Paykel Finance

is a leading provider of
consumer finance in
New Zealand.
P6
CHAIRMANS REVIEW
P7
Dr Keith Turner, Chairman
P8
RESULTS
on profitable sales, notably in North America. Total
Group net profit after tax was $18.4 million for the
operating revenue for the Appliances business was
financial year ended 31 March 2012. This result com-
down 7.6% to $891 million compared to $965 million
pares to $33.5 million for the previous year.
for the previous year. This reflected weaker retail
There were three items which affected comparability, namely an onerous lease charge of $2.7 mil-
market conditions, rebalancing for profitable sales and

unfavourable currency translation effects.
lion before tax (Appliances business), a fair valuation
Gross margin, as a percentage of sales, increased
adjustment for property held for sale (Appliances
by 0.9 percentage points to 31.2%. Appliances gross
business) of $1.2 million before tax and litigation costs
margin in dollar terms decreased by $13.5 million to
of $6.8 million before tax (Finance Group). In aggre-
$278.4 million for the year ended 31 March 2012 as
gate these one off items resulted in a charge of $10.7
a result of lower sales and higher raw materials and
million before tax compared to a gain of $5.1 million
freight costs. Sales, general & administration costs
for the previous year.
reduced by $10.9 million to $215 million on cost sav-
Adjusting for items affecting comparability, normalised group net profit after tax was $26.3 million
compared to $30.0 million last year.
ings, in particular in North America and favourable

currency translation effects.
The full year result was also impacted by trans-
Net bank debt as at 31 March 2012 was $65.2
actional hedging losses of $25.6 million, with $5.3
million compared to $100.2 million as at 31 March
million recorded in the second half following a mid
2011, excluding operating borrowings for the Finance
year change in hedging policy.
business. Group interest charges, excluding Finance
On a segment reporting basis the North Ameri-
operating interest expense, decreased by 30% from
can distribution business reported an operating profit
$15.4 million to $10.9 million on lower debt levels.
before interest and tax of $0.9 million for the year
Cashflow from operations, before the movement
compared to a $9.8 million loss in the previous year.
in loans to Finance business customers, was $117 mil-
The Finance business recorded a solid result
lion compared to $113 million for the previous year.
with reported operating earnings before interest and
Group capital expenditure for the year was $50.5
tax (including operating interest) of $31.0 million,
million including capital expenditure related to new
compared to $34.7 million for the previous year. After
motor contracts of $22 million. Capital expenditure in
adjusting for litigation costs of $6.8 million before tax,
the previous financial year was $28.3 million.
normalised profit before interest and tax (including
The Appliances business reported an operating
operating interest) was $37.8 million compared to
profit before interest and tax of $7.3 million compared
$34.7 million last year. This result is above the market
to $28.8 million last year. After adjusting for items
guidance provided in December 2011 of around $32
affecting comparability of $3.9 million before tax,
million. Net income remained steady on 2011 levels.
normalised profit before interest and tax was $11.3
Bad debt expenses were lower than the prior year,
million compared to $23.7 million last year. This result
however operating costs were higher due to increased
is ahead of market guidance provided in December
promotional activity to grow Q Card receivables.
2011 of approximately $10 million.
In respect of litigation costs, a case raised by a
For the second half the Appliances business re-
U.S. based software company was heard in the High
ported a normalised operating profit before interest
Court at Auckland, New Zealand in late 2011. A judge-
and tax of $13.7 million, compared to a loss of $2.4
ment on the issue is now expected this year. There are
million in the first half.
complex legal issues and a range of possible outcomes.
As foreshadowed in November 2011, the full year
Accordingly, the Directors took the prudent decision at
result reflects lower revenue as the business refocuses
the half year to make a provision given this uncertainty.
CHAIRMANS REVIEW
GROUP FINANCIAL PERFORMANCE
P9
YEAR
6 MONTHS
31 March
31 March
31 March
2012
2011
2012
30 Sept
2011
NZ$000
NZ$000
NZ$000
NZ$000
891,449
965,053
450,603
440,846
139,719
145,289
69,417
70,302
6,790
10,601
3,497
3,293
1,037,958
1,120,943
523,517
514,441
(2,374)
Total Revenue and Other Income

Appliances business
Finance business
Other Income
Normalised Operating Profit/(Loss) before Interest and Taxation

Appliances business
11,282
23,675
13,656
Finance business (including Operating Interest)
37,814
34,722
19,447
18,367
49,096
58,397
33,103
15,993
Onerous contracts
(2,694)
(882)
(147)
(2,547)
Litigation costs
(6,774)
(857)
(5,917)
(1,241)
(500)
(1,241)
6,508
38,387
63,523
30,858
7,529
(10,857)
(15,403)
(5,414)
(5,443)
27,530
48,120
25,444
2,086
(9,099)
(14,575)
(7,989)
(1,110)
Items affecting comparability
Fair Valuation of Non-Current Assets held for Sale (East Tamaki site)
Profit on Sale of Land & Buildings
Earnings before Interest & Taxation
Interest (excluding Finance Business Operating Interest)
Operating Profit before Taxation
Taxation
Group Profit after Taxation
Normalised Group Profit after Taxation
CAPITAL STRUCTURE
18,431
33,545
17,455
976
26,300
30,040
19,408
6,892
New Zealand. In March 2011, the recycling building
During 2012 financial year further progress was made
at the East Tamaki site was sold for $2.25 million and
towards reducing bank debt and improving the overall
settlement was completed in December 2011. In May
financial position of the Company. As at 31 March
2012, the Company sold the components building at
2012, the Appliances business had total outstand-
the East Tamaki site for $5.1 million with settlement
ing net bank debt of $65.2 million, a reduction of
expected by October 2012.
$35 million since 31 March 2011. Debt reduction was

primarily achieved by improved operating cashflow.
GOVERNANCE
On 11 November 2011, the Company renewed its
The Board refreshment programme continued during
Guaranteeing Group banking facilities on materially
the year with two director retirements and two new
similar terms and conditions as the previous debt
director appointments.
facilities. In March 2012, the Banking Group agreed to
In September 2011, the Company announced
remove the FPAL Interest Coverage Ratio. This ratio
the appointment of Lynley Marshall as a Director.
only included earnings before interest, tax, deprecation
Lynleys extensive commercial, retail and media ex-
and amortisation derived by the Appliances business.
perience brings a dimension to the Board at a time
As at 31 March 2012, the Group was in full compliance
when brand, communication and digital strategy is
with all its banking covenants.
increasingly important. Her Australasian experience
During the year, the Company continued with
and proven track record at delivering business growth
property sales at the East Tamaki site in Auckland,
make her a strong addition to the Board. Pursuant to
P10
the Companys Constitution, Lynley Marshall will hold
ued support and commitment from all employees
office until the Annual Shareholders Meeting set for
during what has been a year of consolidation and
23 August 2012 and being eligible, will offer herself
improvement. With over 3,300 employees located
for election.
across the globe, the Board recognises the important
In September 2011, the Company also announced
contribution that each individual employee makes to
the appointment of Philip Lough as a Director. Philip
the future development of the Company. The Board
filled the vacancy created by the retirement of John
would like to record its thanks to all employees for
Gilks. Philip is currently the Chairman of Methven
their dedicated efforts.
Limited and Quotable Value, Deputy Chairman of Port

Nelson Limited and a director of Livestock Improve-
DIVIDENDS
ment Corporation. Philip is well known in business
The Directors intend to restore dividend payments
circles and brings a wealth of international experi-
to shareholders as soon as possible. However, with
ence and strong governance credentials to the Board.
conditions in our key markets remaining very un-
Pursuant to the Companys Constitution, Philip Lough
certain, the Directors believe it is prudent to take a
will hold office until the Annual Shareholders Meeting
cautious approach and have resolved not to pay a
set for 23 August 2012 and being eligible, will offer
dividend at this time.
himself for election.

OUTLOOK
The new Directors bring with them a wealth of experience to complement that of the existing Directors.
Retail market conditions are expected to remain
As foreshadowed in the 2011 Annual Report,
soft across all of the Companys key markets in the
John Gilks retired from the Board in August 2011. The
near term due to global economic uncertainty. The
Board would like to thank John for his outstanding
Board remains particularly concerned about retail
contribution during his long service to the Company
market conditions in Australia, which deteriorated
as a non-executive Director and Deputy Chairman of
in the second half of the 2012 financial year. While
the Board. John has continued as Chairman of the
there was a slight improvement in the U.S. economic
Finance business board.
outlook, there are already signs that this might not
In March 2012, Peter Lucas retired from the
be sustained.
Board in accordance with the board refreshment pro-
In the past two years the Appliances business
gramme that commenced in 2010. The Board would
has rejuvenated investment in new products and at
like to thank Peter for his extensive contribution to
the same time has significantly reduced bank debt
the Company as an independent director over his 10
and controlled working capital and overheads. The
year tenure.
business has been repositioned for the current eco-
On behalf of the Board I would like to wish both

John and Peter all the best for the future.
The Board refreshment plans will be completed
nomic climate and now has the financial flexibility to

pursue market opportunities including growth in the
components and technology business.
this year with the previously announced retirement of
In financial year 2013 (FY13), the Appliances busi-
Gary Paykel at the 2012 Annual Shareholders Meeting
ness will benefit from the commencement of two new
in August.
motor contracts signed in 2011. The line for the Haier
The Finance business continues to maintain its

own separate board of directors.
motor contract was commissioned in April 2012 with

commercial volumes expected to ramp up in October
2012. A second line for another customer is on track
PEOPLE
for production in the second quarter of FY13, with a
The Board would like to acknowledge the contin-
ramp up to commercial volumes from October 2012.
CHAIRMANS REVIEW
In addition, the product development programme

of the past few years will culminate in the release of
new refrigeration, laundry and cooking products during the coming year. On the downside, raw material
prices have increased in recent months.
The Finance businesses earnings should remain
resilient in the coming year, despite an expectation
that New Zealand retail trading conditions will remain
soft. Increased promotional activity with the Farmers
Trading Company and a broader merchant base for
Q Card should improve interest income.
Capital expenditure for the Group is expected
to be approximately $42 million in the 2013 financial
year.
An update on trading and market conditions
will be provided at the Annual Shareholders Meeting
in August 2012.
Dr. K S Turner
Chairman
24 May 2012
P11
P14
MANAGING DIRECTOR AND CEOS REVIEW
P15
Stuart Broadhurst
Managing Director & CEO
P16
OVERVIEW
It has been a year of consolidation for the Company
__
The Finance business successfully navigated

through the expiry of the Crown Guarantee.
as we continue to build for the future. We have made

further progress on our core strategies in the past
These achievements show that progress has been
year as demonstrated by:
made over the year, notwithstanding the difficult
__
Delivery of new products;
global economic conditions the business has faced
__
Continued improvement in systems and struc-
across its key markets. While our financial goals for
tures to improve product quality;
Appliances have not been met this year we have
Maintained strong operating cashflow, reduced
continued to invest for the future.
__
working capital and made further reductions

__
__
The Finance business delivered a record nor-
in net debt;
malised result and continues to build on the strength
Appliances gross margin improved as a per-
of Q Card and Farmers Finance Card. There are op-
centage of sales demonstrating that we are
portunities to continue to grow the business further,
maintaining our product mix despite difficult
without losing focus on the core business of providing
market conditions;
consumer point of sale solutions.
The North American sales and customer services business returning to profit on a segment
Overall we remain committed to generating a

healthy yield for shareholders in the future.
reporting basis;
__
__
__
Continued investment in product development,
Group Results
brand and our people;
In New Zealand dollar terms, Total Revenue and Other
Signed two new component and technology
Income decreased by $83 million to $1,038 million.
supply agreements with major global appliance
Appliances revenue was down 7.6% from $965
manufacturers for development, design and
million to $891 million on lower volumes and unfa-
manufacturing technology;
vourable foreign exchange translation effects. Sales
Achieved a record normalised profit for the
in Australia were down 2.4% in local currency terms
Finance business;
compared to the previous year. As foreshadowed in
GROUP REVENUE
YEAR
6 MONTHS
31 March
31 March
31 March
2012
2011
2012
30 Sept
2011
NZ$000
NZ$000
NZ$000
NZ$000
Appliances business
New Zealand
159,829
162,429
81,652
78,177
Australia
410,493
419,035
214,505
195,988
North America
165,766
207,883
75,882
89,884
Europe
64,304
81,330
34,997
29,307
Rest of World
74,393
69,505
36,461
37,932
874,785
940,182
443,497
431,288
3,406
4,701
12,217
1,295
11,963
12,654
5,811
6,152
Total Appliances
891,449
965,053
450,603
440,846
Finance business
139,719
145,289
69,417
70,302
6,790
10,601
3,497
3,293
1,037,958
1,120,943
523,517
514,441
Appliances business other sales of goods revenue

Appliances business sales of service
Other Income
Total Revenue & Other Income
the first half, sales in North America declined as that
__
P17
Litigation costs: In respect of litigation costs, a
business focused on profitable sales. European sales
case was heard in the High Court at Auckland,
decreased by 17.7% on the last year in local currency
New Zealand in late 2011. A judgement on
terms.
this issue is now expected this year. There are
Finance business revenue was down slightly from
complex legal issues and a range of possible
$145 million to $140 million as a result of continued
outcomes. Accordingly, the Directors took the
soft retail market conditions in New Zealand.
prudent decision at the half year to make a

provision given this uncertainty. This amount,
together with subsequent further legal costs,
The Group recorded three one-off items during the
has been reported as litigation costs in the
financial year, which together resulted in a net charge
Financial Statements. Litigation costs for the
of $10.7 million before tax compared to a gain of
current financial year were $6.8 million, with a
$5.1 million for the previous year. The three one-off
$0.9 million increase in the second half.
items were:
__
__
Onerous lease: A provision was made for the
Depreciation and Amortisation
estimated unavoidable costs associated with a
The charge for depreciation and amortisation was
warehouse lease in Chicago, USA. This resulted
$40.6 million for the year ended 31 March 2012, com-
in a charge of $2.7 million before tax.
pared to $40.9 million for the previous year.
Fair valuation adjustment: The fair value of the

remaining East Tamaki property held for sale has
Capital Expenditure
been reassessed on a vacant possession sale
Total capital expenditure for the Group on a cash
basis. This resulted in a further charge of $1.2
flow basis was $50.5 million for the year ended 31
million before tax. The remaining property titles
March 2012. Capital expenditure for the Appliances
at East Tamaki continue to be offered for sale.
business at $48.3 million accounted for the majority
ITEMS AFFECTING COMPARABILITY
Fair Valuation of Non-Current Assets held for Sale (East Tamaki site)
Onerous contracts
YEAR
31 March
31 March
31 March
2012
2011
2012
2011
NZ$000
NZ$000
NZ$000
NZ$000
Total Items Affecting Comparability
(1,241)
(500)
(1,241)
(882)
(147)
(2,547)
6,508
(6,774)
(857)
(5,917)
(10,709)
5,126
(2,245)
(8,464)
DEPRECIATION AND AMORTISATION
Appliances business
Finance business
30 Sept
(2,694)
Profit on Sale of Land & Buildings

Litigation costs
6 MONTHS
YEAR
31 March
31 March
31 March
2012
2011
2010
31 March
2009
NZ$000
NZ$000
NZ$000
NZ$000
31,667
32,550
38,096
50,625
8,959
8,343
8,010
7,864
40,626
40,893
46,106
58,489
P18
of the investment which was primarily focused on
Appliances Business
new product development and new motor supply
Appliances revenue at $891 million was down 7.6%
agreements signed in 2011. Of the total spend for
compared to the previous year. This reflected weaker
Appliances, $22.2 million relates to the two new mo-
retail market conditions, rebalancing volumes for
tor contracts signed in 2011. Total capital expenditure
profitable sales, in particular in North America, and
for the Group increased by $22 million compared to
unfavourable currency translations effects.
the previous year.
Appliances gross margin, as a percentage of

sales, increased by 0.9 percentage points to 31.2%.
Cash Flow and Group Net debt
Gross margin in dollar terms declined by $13.5 million
Cash flow from operating activities, before the move-
to $278 million as a result of lower volumes and higher
ment in loans to Finance business customers, was $117
raw materials and freight costs.
million compared to $113 million for the previous year.
Overheads were also lower as a result of cost
Group Net Debt (excluding operating borrowings
savings, notably in North America, and favourable
for the Finance business) as at 31 March 2012 was $65.2
currency translation effects. The North American sales
million, compared to $100.2 million as at 31 March 2011.
and customer services business reported an operating
CAPITAL EXPENDITURE IN CASH FLOW TERMS
Appliances business
Finance business
APPLIANCES BUSINESS FINANCIAL PERFORMANCE
Operating Revenue
YEAR
31 March
31 March
31 March
2012
2011
2010
2009
NZ$000
NZ$000
NZ$000
NZ$000
48,313
24,263
29,738
71,768
2,163
4,078
2,036
2,282
50,476
28,341
31,774
74,050
YEAR
31 March
6 MONTHS
31 March
31 March
31 March
2012
2011
2012
30 Sept
2011
NZ$000
NZ$000
NZ$000
NZ$000
891,449
965,053
450,603
440,846
11,282
23,675
13,656
(2,374)
Normalised Operating Profit/(Loss) before Interest and Taxation

- Appliances business
(2,694)
(882)
(147)
(2,547)
(1,241)
(500)
(1,241)
6,508
Reported Operating Profit before interest and Taxation
7,347
28,801
12,268
(4,921)
Gross Margin
31.2%
30.3%
30.7%
31.8%
1.3%
2.5%
3.0%
-0.5%
379,104
419,098
379,928
408,806
3.0%
5.6%
5.6%
3.6%
- Onerous contracts
- Fair Valuation of Non-Current Assets held for Sale (East Tamaki site)
- Profit on Sale of Land & Buildings
Operating Margin*
Invested Capital
Return on Invested Capital**
*Normalised Operating Profit before Interest and taxation to Operating Revenue
**Last 12 months normalised operating Profit before Interest and taxation to Invested Capital
P19
profit before interest and tax of $0.9 million compared
tions, via a combination of selected price reductions
to a loss of $9.8 million for the previous year.
and discounting.
Normalised operating profit before interest and
Appliances' revenues were down 1.6% on the
tax improved in the second half of the year to $13.7
previous year, however, second half revenues were up
million compared to a loss of $2.4 million in the first
0.6% on the previous corresponding period. Fisher &
half. As signalled in the Interim Report, the full year
Paykel branded volumes were flat compared to last
result was negatively impacted by transactional hedg-
year, however, market share increased in unit terms.
ing losses of $25.6 million, of which $5.3 million was
The reduction in Fisher & Paykel brand revenues was
incurred in the second half.
due to selected price discounting, however gross
Return on invested capital declined from 5.6%
margin increased due to product mix improvements.
as at 31 March 2011 to 3.0%, reflecting lower earnings
De Longhi branded sales through third party distribu-
and capital expenditure that will start generating a
tors also declined and contributed to lower overall
return in financial year 2013 (FY13).
sales for the year. Spare parts sales were lower due
to improved product quality.
MARKET REVIEWS
Appliances revenue, by geographic region and local
Haier sales continued to grow as additional

products were added to existing distribution channels.
currency, has been compared to the previous year in

the table below. Revenues continue to be impacted
Australia
by weak retail market conditions, currency translation
The Australian home appliances market decreased
effects and intense competition across all markets.
by 0.2% in unit terms compared to the previous year.

However, there was a significant slow down in the
New Zealand
second half of the financial year when the market
Appliance imports for the industry were down 5.0%
declined by 2.2%.
in unit terms compared to the previous year and
Weaker consumer confidence and record low
market demand for appliances did not recover post
building consents negatively impacted retail sales. The
the Rugby World Cup. Record low building consents
2012 financial year was characterised by intense compe-
in New Zealand were also a contributing factor to
tition as suppliers passed on the benefits of a high cur-
weaker demand conditions. Competition was intense
rency to consumers through selected price reductions.
as suppliers chased sales in soft retail market condi-
Australian revenue was down 2.4% in local cur-
APPLIANCES REVENUE ANALYSIS IN LOCAL CURRENCY
YEAR
6 MONTHS
31 March
31 March
31 March
2012
2011
2012
30 Sept
2011
NZ$000
NZ$000
NZ$000
NZ$000
Appliances business
New Zealand
NZD
159,829
162,429
81,652
78,177
Australia
AUD
316,955
324,727
166,486
150,469
North America
USD
134,684
152,915
63,049
71,635
Europe
EUR
36,733
44,617
19,663
17,070
Rest of World
NZD
74,393
69,505
36,462
37,931
NZD
4,701
12,217
1,295
3,406
Appliances business sales of service
NZD
11,963
12,654
5,811
6,152
P20
rency terms, reflecting difficult market conditions.
Other International markets
Fisher & Paykel brand revenue was down on lower
European sales were down 17.7% in local currency
volumes and selected price reductions. Market share
terms. Difficult market conditions continued in Ire-
in unit terms increased in the cooking segment, how-
land and the United Kingdom. Revenues were lower
ever, was down slightly across other categories. Haier
in part due to lower sales by our Italian factory to
brand sales continued to grow at the value end of the
third party customers. In January 2012, distribution
retail appliance market. Sales of spare parts were also
of Haier branded products commenced in Ireland.
lower due to further product quality improvements.
Rest of World revenues increased by 7.0% in

New Zealand dollar terms compared to the previous
North America
year, however, second half sales declined by 1.8%.
The U.S. market contracted by 7.5% in unit terms
Price increases and higher volumes were more than
compared to the previous year, in part due to the
offset by unfavourable currency translation effects.
absence of Government stimulus incentives compared
As indicated in the Interim Report, Singaporean sales
to the first quarter for the financial year 2011 (FY11).
were lower compared to the previous year due to
Fears of a U.S. double dip recession and the European
the Company ceasing the distribution of Whirlpool
crisis negatively impacted consumer confidence in the
product on 1 April 2011.
first three quarters of the financial year. Early signs
During the year the Company commenced sales
of economic improvement appeared in January and
in India following an 18 month market assessment.
February this year, however, it is too early to determine
The market entry strategy is to target the specifier,
whether this will be sustained. Notwithstanding the
designer and architect community, starting with one
weaker demand environment, competitors increased
distributor in the Delhi region. The Company views
prices in January 2012.
the Indian market as a long term growth opportunity.
North American revenues were down 11.9% in local currency terms, due to a focus on profitable sales.
Haier Relationship
Pleasingly, second half revenues were only down 1.8%
The relationship with Haier continues to develop with
in tough market conditions. Fisher & Paykel brand
further milestones achieved in the past year.
revenues were lower as the focus shifted to profit-
In March 2011, the Company announced a com-
able sales, however gross margin improved due to an
ponent and technology supply agreement with Haier
improved product mix. DCS brand sales were higher
for the development, design and manufacture of
following the release of the DCS United indoor cook-
direct drive washing machine motors for the Chinese
ing range in the first half of the year.
market. The installation and commissioning of the
The result also reflected lower component and

technology sales in North America.
The focus on profitable sales and cost reduc-
manufacturing plant has been completed in Thailand

and first commercial volumes were shipped to Haier
in April 2012.
tion activities resulted in the North American sales
The sale of Haier branded product in Australia
and customer services business reporting a segment
and New Zealand continues to grow as new products
operating profit before interest and tax of $0.9 million
are added to the portfolio. As mentioned previously,
compared to a $9.8 million loss in the previous year.
Fisher & Paykel commenced distribution of the Haier
Pleasingly, gains from the first half were held through
brand in Ireland in January 2012.
the fourth quarter, which is traditionally the weakest

sales quarter for the business.
Sales of Fisher & Paykel branded products in

China have been slower than expected. The process
for certification of product for the China market has
been frustratingly slow and for many products will not
P21
be completed until the end of the calendar year. As
ings by growing our component and technology busi-
a result of slower than expected sales, the Company
ness and explore the potential to expand our original
is boosting support in China to assist Haier to deliver
equipment manufacturing business. Examples of this
increased sales of Fisher & Paykel branded products.
strategy in action include the two new direct drive
The relationship continues to grow and both
motor contracts signed in the last year and our new
companies are working on other mutually beneficial
compressor technology developed in conjunction
opportunities.
with Embraco. We will seek to explore other options

to monetise our technology investment in a way that
Appliances Business Strategy
is complementary to building the core appliances
The business has been focused on delivering Five Main
business.
Things to improve the return for our Shareholders.
A strong Fisher & Paykel brand is critical to the
Our Strategic Plan has two main themes, to improve
future of our components and technology business as
the core appliances business and seek to monetise
we need to demonstrate to other appliance manufac-
our technology investment.
turers our ability to deliver world leading technologies.
The Appliances business is focused on our
We continue to focus on Five Main Things, an
customers and we put our customers at the centre
element of which includes Five Key Opportunities for
of everything we do. This is across all aspects of our
the business (see pages 22 and 23).
business to ensure we deliver premium customer
Financial targets for financial year 2016 (FY16)
experiences, products and services. As a business
have been set, including revenue growth 2% 4% per
we will continue to drive technology innovation, but
annum, earnings before interest and tax margin (EBIT
also bring innovation and creativity across all touch
Margin) of 6% 8% and a return on invested capital
points in the business to improve everyday life for our
(ROIC) of 15%. Our investment in product develop-
customers. We have a clearly focused market strategy
ment, quality, brand and people in recent times will
and are delivering our product development plans.
start to improve results this year and we will continue
A key aspect of our strategy is to diversify earn-
STRATEGIC THEMES
to build towards reaching our financial goals.
APPROACH
FY16 TARGETS
Put the customer at the

centre of everything
we do
Revenue Growth
Improve 'Core'
2-4% pa
Appliances
Execute our market
strategy and deliver our
Product Plan
Five Main Things

AND
Five Key
EBIT Margin
6-8% pa
Opportunities
Grow earnings from
Monetise Technology
to Diversify Earnings
technology and seek

original equipment
ROIC
manufacture
15%
opportunities
P22
Five Main Things
We continue to implement the business excel-
We continue to focus on the Five Main Things in the
lence framework to build best in class processes and
business.
deliver continuous improvement across the business.
We will execute our Marketing and Product
We continue to create the right environment
Plans to provide consumers with an experience and
to recruit and retain talented and passionate people
products that exceeds their expectations. To achieve
needed to achieve our goals.
this goal the business has increased investment in
Cost reduction is focused on lean thinking as a
products, brands and people over the past few years.
key principle across the Group, and we must continue
We are committed to ensuring that the quality of our
to optimise costs across all aspects of the business to
products and services delivers customer satisfaction,
remain competitive.
which builds the reputation and value of the Fisher &

Paykel brand. We continue to make improvements in
Five Key Opportunities
product quality and have now achieved best in class
Fisher & Paykel Appliances has a 100 year heritage in
across many categories.
cooking and is well positioned to leverage both the
Our market strategy is well defined and targeted.
Fisher & Paykel and DCS brands to grow earnings.
We will protect and grow our home markets of New
We have increased our focus in the cooking category,
Zealand and Australia, whilst seeking profitable growth
as evidenced by new products, the Social Kitchen
in niche market segments in North America and in
branding, improved product training and online
other countries. China and India are long term growth
content like Our Kitchen cooking blog. In addition,
options, as both markets are expected to experience
our sponsorship of food and cooking events such as
double digit growth per annum in appliances sales
New Zealand Masterchef and the Australian Good
over the next five years. We are taking a low cost entry
Food & Wine show, has increased. We are leveraging
approach to build a niche position in the commercial
the cooking opportunity in the context of our wider
segment in selected cities.
kitchen strategy.
FIVE MAIN THINGS

Customer focused, differentiated products
DelIvering Customer
Benefits
Brand experience
Product innovation
Focus on quality
Environmental
New Zealand and Australiaprotect and grow home markets
North Americaprofitable growth
Disciplined Market
Rest of Worldprofitable sales
Growth
China/Indialong term options to access growth markets

AlliancesHaier, Whirlpool and others
Components & Technologybuild expertise and diversify earnings
Business Excellence
Organisational excellence framework

Structures and systems
Organisational
People and leadership
Capability
Talent management
Consolidate manufacturing cost reduction
Cost Reduction
Ongoing review of manufacturing facilities

"Delivering Profitable Growth" program
Lean thinkingraw materials and overheads
P23
FINANCE BUSINESS
North America is a potential growth market

for the Company. Over the last two years the North
The Finance business reported a solid result for the
American business has been resized to focus on build-
year ended 31 March 2012. Operating profit before
ing a strong niche market position for both the Fisher
interest and tax (including operating interest) was
& Paykel and DCS brands. In the next few years, new
down $3.7 million to $31.0 million after provisioning
product releases and a refocused business model are
$6.8 million for litigation costs. Please refer to Note
expected to deliver earnings growth for the Company.
8 of the Financial Statements for an explanation of

the litigation costs.
We have commenced our global manufacturing

review to ensure our manufacturing facilities are op-
Normalised operating profit before interest and
erating at the fore-front of advanced manufacturing
tax of $37.8 million was up 9% from $34.7 million the
technologies and processes. In addition, we are also
previous year.
reviewing the location of our manufacturing facilities
The improved result was built on higher net
that remain in high cost labour locations to ensure
margins, cost containment and a continued focus on
that our products remain competitive in the long term.
credit management.
Growth in components and technology has been
Although operating revenue was lower and operating
a feature during the past year with the addition of
costs increased due to promotional expenditure, these
two new direct drive motor contracts. The business
were offset by lower bad debt expenses.
is targeting revenue of $120 million to $150 million by
Operating revenue decreased from $145.3 mil-
financial year 2016. We have three foundation custom-
lion to $139.7 million. Interest expense was margin-
ers which should deliver between $56 million to $86
ally down, reflecting lower funding costs and lower
million in financial year 2014.
volumes of new lending.
We are also exploring opportunities to com-
The bad debt expense to gross receivables ratio
mercialise our technology beyond the reach of the
decreased from 3.1% to 1.8%. This partly reflected the
Fisher & Paykel brand and we are actively exploring
full reversal of the $2 million Christchurch earthquake
partnership opportunities with Haier.
provision which was established in FY11. As it transpired, this was not required.
In summary, the Strategic Plan sets out the

roadmap for the business over the next four years.
Operating costs increased by $5.4 million (exclud-
We have aligned our activity to this Plan to ensure we
ing litigation costs) primarily as a result of increased
achieve our operating and financial goals and deliver
promotion related to the Q Card product.

Net finance receivables increased by 1% in the
a healthy return for our Shareholders.
FIVE KEY OPPORTUNITIES

STRATEGIC THEMES
KEY OPPORTUNITIES
1. Cooking Strategy
Improve 'Core' Appliances Earnings
2. North American Distribution

3. Global Manufacturing Review
4. Components & Technology
Monetising Technology To Diversify Earnings

5. Original Equipment Manufacture (OEM)
OUTCOME
Category growth
Improve profitability
Advanced manufacturing
Reduce product costs
FY16 Revenue target $120m$150m
Commercialise "knowhow" beyond
Fisher & Paykel brand market reach
P24
second half to $594 million, however, were down 1%
ness and the Non Bank Deposit Taker, Fisher & Paykel
on March 2011 levels. Growth in the second half re-
Finance Limited. Fisher & Paykel Appliances Holdings
flected a strengthening promotional program with the
Limited injected a further $8.5 million as capital into
Farmers Trading Company. Q Card receivables were
Fisher & Paykel Finance Limited to take the capital
flat on March 2011 levels, with new receivables growth
adequacy ratio to 15.27% compared to the minimum
offsetting the loss of a major account representing
requirements of 8.0%. Fisher & Paykel Finance Limited,
approximately $50 million in receivables. Farmers
as a Non Bank Deposit Taker, has maintained a long
Finance Card receivables declined by 3% on March
term issuer credit rating of BB (Stable Outlook) from
2011 levels, however, increased by 1% on September
Standard & Poors.
2011 levels. Farmers fixed instalment business declined

from $13 million last year to $10 million. Bulk funding
Finance Business Strategic Direction
receivables were down $2 million to $74 million.
There are opportunities to continue to grow the
Total external debt funding at 31 March 2012

was $551 million. The Finance business continues to
business without losing focus on the core business

of consumer point of sale solutions.
maintain a diversified funding portfolio represented by
We want to grow Q Card and Farmers Finance
retail debentures (21%), RFS commercial paper (37%)
Card receivables and enhance our other offerings in
and term wholesale bank debt (42%). The business
the market.
Going forward the business is focused on the
continued to maintain surplus liquidity in the form of

undrawn term and standby committed banking facili-
following growth opportunities:
ties. The Finance business has successfully navigated
__
the expiry of the Crown Deposit Guarantee Scheme on

31 December 2011. Monthly retail debenture reinvest-
Trading Company;
__
ment rates have increased post 31 December and the

reinvestment rate in March 2012 was 89%. As a result
Fully develop the partnership with Farmers

Broaden merchant reach (target to move from
15% to 20% in the next two years);
__
of increased retail debentures, the Finance business
Target new retail channels, for example, the

health and agriculture sectors;
intends to remove $85 million of wholesale banking
__
Promote customer loyalty to retailers;
facilities that were principally put in place to cover
__
White label opportunities for retail stores;
any shortfall in debenture funding post the expiry
__
Expand gift and cash card offerings;
of the Crown Deposit Guarantee. Net of this reduc-
__
Deliver further technology solutions to custom-
tion undrawn term and standby committed banking

facilities amounted to $152 million as at 31 March 2012
During the year further steps were taken to
ers including digital and on-line;

__
Consider selective acquisitions of core portfolio

receivables.
strengthen the funding position of the Finance busi-
FINANCE BUSINESS FINANCIAL PERFORMANCE
Operating Revenue
Normalised Operating Profit before Interest and Taxation (including Operating Interest)
YEAR
6 MONTHS
31 March
31 March
31 March
2012
2011
2012
30 Sept
2011
NZ$000
NZ$000
NZ$000
NZ$000
139,719
145,289
69,417
70,302
37,814
34,722
19,447
18,367
(5,917)

- Litigation costs
Reported Operating Profit before Interest and Taxation (including Operating Interest)
Net Finance Receivables
(6,774)
(857)
31,040
34,722
18,590
12,450
594,532
601,595
594,532
589,337
People
I would like to acknowledge the significant contribution
of our staff over the past year. Their talent, passion,
creativity and dedication have been instrumental in
positioning the Company for the future. I am grateful
for the efforts made by the Fisher & Paykel team across
both Appliances and Finance and believe we have the
momentum to make further advancements this year.
I would also like to thank our suppliers, customers and business partners for their continued support
during the year.
SUMMARY
In the next financial year our investment in product
development, quality brand and direct drive motors
will start to deliver results. This is an exciting prospect
as we deliver new refrigeration, laundry and cooking
products to the market and the two direct drive motor contracts commence. While market conditions are
expected to remain difficult, our strategic roadmap
provides clarity and direction for the business and
we are aligned to delivering on the Five Main Things
and Five Key Opportunities.
The Finance business has continued to perform
in difficult retail market conditions and is a world-class
consumer point of sale finance business. We see opportunities to further grow this business over the next
few years within its core capabilities.
The business has come a long way in the past three
years and the balance sheet is now in a much stronger position. Going forward I am looking forward to
meeting the challenges of the next few years as we
deliver on our strategic plan and generate a healthy
return for our Shareholders.
S B Broadhurst
Managing Director & Chief Executive Officer
24 May 2012
P25
P26
A GLOBAL
OUR BRAND
BRAND
VALUES
2012 SAW THE FURTHER DEVELOPMENT
REAL
OF A BRAND AND COMMUNICATIONS
GENEROUS
STRUCTURE TO SUPPORT FISHER &
HUMAN
PAYKELS BUSINESS OBJECTIVES AND
CURIOUS
PROVIDE CLEAR FOCUS FOR A GLOBAL

BRAND PLATFORM.
The aim is to refresh, realign and reposition the brand
Real
globally over a medium-term horizon, in tandem with
Our brand has real substance and is delivered with
other initiatives including our product development
integrity by ordinary people with extra-ordinary skill
strategy.
and commitment to build relationships with our cus-
When we talk about brand, we mean the sum
tomers through trust and reputation.
of all experiences, large and small, that people have

with Fisher & Paykel. Our brand is our company-wide
Generous
reputation, not just our logo.
We care about our customers, our people and our
We have taken our products to the world. Now

we need to support them with the stories that build
planet and have a willingness and spirit of openness

throughout our business.
our reputation beyond high performance products

to a brand that people aspire to have in their lives.
Human
Life is about routine as much as it is about the unexpected, and we cater for both. Our customers are
people with routines and rituals, expectations and
surprises, busy and quiet times, joys and tragedies.
Curious
We understand the dynamic nature of modern living.
Were curious about the world and how people live,
wherever they may be. Our outlook is global, but we
understand each local neighbourhood.
OUR BRAND
P27
EVERYDAY
OUR BRAND
PREMIUM
VISION
OUR POSITIONING IS EVERYDAY PREMIUM.
TO BE THE MOST
FOR US, THIS MEANS HIGH QUALITY AT
HUMAN-CENTRED APPLIANCE
AFFORDABLE PRICES AND ASPIRATIONAL
BRAND IN THE WORLD.
DESIGN THAT IS ACHIEVABLE TO OWN.
Our Positioning
At the heart of the Fisher & Paykel story are people
Everybody deserves product that is well designed,
looking for the innovation that changes the everyday
with real value and substance. We are in the middle
into something out of the ordinary. It appeals to our
and upper middle positions in the market, over the
basic human desire to live life and improve it. Our
best of the conventional offerings and below the
brand voice sets the tone for the way we look, sound
ultra-premium solutions. This is where our heritage
and communicate.
and legacy has brought us and where we can add

real value.
All brand communications over the past year

have been executed with this vision in mind. They
have been varied and wide-reaching.
Our Brand Goal

The goal is to create an everyday premium brand
that is very aspirational yet still accessible; a brand
that continues to be human-focused and real. One
that people are proud to be part of, whether they are
consumers, distributors, employees or shareholders.
P28
OUR DESIGN PHILOSOPHY:

DESIGN FOR REAL LIFE
We are curious about people. How they live, where

they live, what they do and how they use things. This
is where hidden insights wait to be uncovered. We are
curious not only with the function and performance
of our products but with the emotional role they play
in peoples lives. For us, design is not a self-serving
goal; it is a human endeavour to make life better.
Continuous innovation is part of the Fisher &
Paykel design philosophy. As evident in the release
of the Phase 7 DishDrawer, we have applied valuable research insights to deliver a product that is
considerably more in tune with the way that humans
are living their lives.
We live in a designed world and we believe everybody deserves good design. who use our products
day in and day out. The ongoing collaboration between design engineers and customers has changed
the course of appliance design for us as a company
and for those who use our products day in and day
out. Our future will be built on fostering this spirit of
collaboration and curiosity.
P30
DISHDRAWER
PHASE 7
Released in 2012, the latest DishDrawer dishwasher

continues to change the way people wash their dishes.
The Phase 7 DishDrawer brings a new level of
performance and quality into the kitchen. Range improvements include: pitch adjustable racking that can
also be folded flat for large items and accommodate
plates and deep bowls, improved fit for seamless installation into kitchen cabinetry, a wireless badge to
provide uninterrupted surfaces on integrated models,
reduced operating sound and an increase in wash and
energy performance.
We have found new ways to improve usability,
increasing the height of the drawer to allow for even
larger plates and platters. No longer limited to one
size of DishDrawer dishwasher, a wider version has
been developed to suit smaller families. We all know
every kitchen is different. The DishDrawer family is
designed for choice and convenience, offering multiple configurations, along with a choice of material
finishes to integrate seamlessly into new and existing
kitchen designs.
P32
GAS ON GLASS
COOKTOP
The Gas on Glass cooktop range combines the

cleanability of the highest quality glass surface with
the efficiency of gas cooking. It delivers total cooking precision through the latest burner technology
and elegant stainless steel controls. Gas on Glass is
a modular family of appliances, available in a range
of sizes to suit every home.
Premium quality materials and finish are strong
design cues in the Gas on Glass cooktop range. Trivets
of heavy duty cast iron sit alongside black glass and
a polished stainless trim, a combination that signifies
this range of everyday premium product.
P34
COMPANION
PRODUCTS
The Companion Product range has been designed to

complement any kitchen. The range includes a Coffee
Maker, Steam Oven, Compact Oven and Combination Microwave Oven, offering a complete modular
family. Whether its a fresh coffee in the morning, a
healthy steamed lunch or a quick ready-made meal
in the evening, the companion product range takes
convenience to a new level.
Each product is based on standard dimensions and can be easily configured to suit the kitchenwhether it is stacked vertically, placed side by
side in a linear fashion or configured in a Two x Two
Block. Any combination will deliver a unified built-in
solution. Design features including capacitive touch
controls, standard fascia height and brushed handles,
Stopsol glass and chrome trim ensure the Companion
Products sit perfectly alongside the broader Fisher &
Paykel range.
P36
FRENCH DOOR
REFRIGERATOR
The refreshed French Door Refrigerator was launched

late 2011. As the hero product of Fisher & Paykel's
refrigeration range, the French Door Refrigerator is
powered by our latest refrigeration development:
ActiveSmart Technology, embodying our sophisticated knowledge of food care.
This technology means that at the heart of
Fisher & Paykel refrigerators is the ability to sense
and respond to daily use in an intelligent way. The
combination of temperature sensors with smart
electronics and variable speed fans creates a
controlled environment and optimum temperature
for better food care.
Combining Ice & Water features with ergonomic
sliding drawers and a large 610 litre capacity, the
French Door Refrigerator provides the ultimate food
care solution.
P38
At the heart of all Fisher & Paykel washing machines

is the ability to sense and respond to each load in
an intelligent way. The combination of a direct drive
motor with smart electronics means greater reliability and better performance. We call it SmartDrive
technology.
P40
At the heart of Fisher & Paykel refrigerators is the ability to sense and respond to daily use in an intelligent
way. The combination of temperature sensors with
smart electronics and variable speed fans creates a
controlled environment and optimum temperature for
better food care. We call it ActiveSmart Technology.
P42
ENVIRONMENTAL RESPONSIBILITY
Direct Drive motor technology continues to evolve
Fisher & Paykel Appliances Holdings Limited ("Fisher &
and play a powerful role, enabling new efficiencies
Paykel") has long been committed to environmentally
across the upgraded SmartDrive washing machine
conscious operations as a business, and to creating
range. Consumers can now select machines based
new products that increasingly limit the impact on
on their households unique needs, be it top water
the environments natural resources.
and energy efficiency or optimal clothes care for a
New Zealands clean, green reputation has

formed part of our philosophy for decades. Today we
longer-wearing wardrobe, all due to technology developments at the core.
strive to emphasise sustainability in everything we do,

from comprehensive recycling programmes in New
Local Product Stewardship
Zealand and abroad, to continual energy and water
Fisher & Paykel appreciates that the environmental
consumption reduction efforts both in manufacturing
impact of an appliance continues long after it leaves
and new product design.
the factory gate. Taking responsibility for our products

throughout their life cycle, we opened our appliance
Efficiency
recycling operation in New Zealand nearly two de-
Fisher & Paykel aims to meet the highest industry
cades ago. Through this initiative, Fisher & Paykel is
standards with our appliances achieving top ranking
able to save around 25,000 appliances from landfill
results with Energy Star and WELS water ratings.
each year and enable the re-use of bulk materials.
Over the past thirty years our appliance energy and
Alongside appliance recycling, we recently
water usage has decreased across all our appliances.
launched a local programme for operational appliances
The most dramatic result in energy use is from
ten years or older in partnership with the Energy Ef-
the highest-consuming whiteware appliance in the
ficiency and Conservation Authority (EECA).
house, the refrigerator, which has reduced energy
Called Take Back, this initiative offers free col-
consumption on average by over 60 percent. Water
lection of working but unwanted refrigerators and
use by our dishwashers and clothes washers has also
freezers in New Zealands main centres. As well as
decreased, with these appliances now using around
recycling these products, we report back to EECA,
55 percent and 80 percent less water on average
calculating the amount of energy saved from the
respectively.
appliances decommissioning and replacement with
Last year we launched our world-leading, revo-
a more efficient, modern model. Take Back has so
lutionary refrigerator compressor design that is up to
far collected more than 650 refrigerators and freez-
35 percent more energy efficient than conventional
ers, delivering a total estimated energy savings of
compressors and further reduces the consumption of
394MWh/y, or enough energy to power around 200
the most energy-hungry appliance in the home. The
homes over a year.
compressor is now in trial and will be entering the

market in the next couple of years. We continued our
Global Initiatives
environmental improvements in 2012, this time in the
Across the globe our people are similarly commit-
laundry with our unique Direct Drive motor technol-
ted to reducing our environmental footprint through
ogy providing eco-friendly engineering and design
aggressive waste reduction and energy reduction
innovation behind our new suite of washing machines.
targets. We are successfully meeting our own high
When we developed Direct Drive motor tech-
targets in each country we are located and comply
nology 20 years ago, the focus was on delivering
with the strict emissions rules specific to each country.
higher performance and reliability in our washing
Our goal is to continually reduce our emissions
machines at a lower cost to the consumer. Today, the
and apply the principle of reduce, re-use and re-cycle
P43
to all of our process waste in all markets in which we
alongside the schools, provides trophies and certifi-
operate.
cates, an exciting field trip for the winning students

and a donation to assist with school fees and materials.
OUR COMMUNITIES
Further afield in Thailand, our factories have
Across the globe, Fisher & Paykels people share
consultative committees made up of staff represen-
a drive to help the communities in which we are
tatives and management who consider the requests
located. To do this we forge relationships with key
that come in from the community. One example of the
community organisations who, at a local level help
many donations made to schools, orphanages and
us identify the people most at need, and the things
underprivileged groups is the annual end of year food
they need most to assist them.
packs donated by staff members and supplemented

by company donations, which are then sourced by
Regional Responses
local Monks and distributed to those in need among
At the heart of our business lie two core areasour
the community.
appliances and our people. Both are integral to the
In Mexico the team has multiple initiatives to
initiatives through which we can demonstrate support
support its communities, from donations of native
to our local communities.
trees to ecology units for study and redistribution
From New Zealand to Italy and in between,
where needed, to appliances donated to educational
Fisher & Paykel acts locally to support projects close
institutions for the students investigations into new
to our people, their families, and our customers. Our
technologies. Like so many others in the Fisher &
outreach can be through donated appliances, commu-
Paykel family, Mexico is an active supporter of those
nity sponsorship, grass roots charity funding, schools
communities affected by natural disasters, donating
initiatives, or simply, people power.
essential supplies and fundraising to help people get
Our peoples expertise ranges across engineering and
back on their feet.
design, to sales and marketing, manufacturing and

customer service, so their guidance can be invaluable
Helping Hands in Hard Times
when donated to assist with community projects.
Providing practical responses to communities in need
In many of the markets we reside, Fisher & Paykel
is an integral part of our culture in every region we
taps into the community in areas where we can assist
operate. The worldwide Fisher & Paykel family rally
through local activity. In New Zealand for example, Re-
with fundraising to support relief efforts for the com-
cycling Days are just one way our people can engage
munities in which we operate.
with the community to make a difference. As part of
In New Zealand for example, the region of Can-
our ongoing appliance recycling effort we host these
terbury has continued to be rattled by unsettling
days where the public is invited to drop off any retired
aftershocks following the devastating earthquakes
whiteware appliances to our main centres for free. Not
that destroyed communities in 2010 and 2011. As
only are we able to save thousands of tonnes from
communities gather in a now-familiar response to
landfill as a result, but these events provide an easy
support one another, our people continue to provide
recycling option for the public and an opportunity to
appliances to community service centres when needed
meet our neighbours.
and help relief efforts as required, to get this stoic
Our Auckland Head Office has also long sup-
region through.
ported an initiative to recognise hardworking students
When Australia felt the impact of the Queensland
from three local schools in the East Tamaki and Otara
floods in 2010 our people rallied to respond with relief
area, The Young Endeavour Award. As part of the pro-
efforts in the community and assistance provided to
gramme, Fisher & Paykel participates in the judging
relief organisations like the Red Cross.
P44
Culinary Coaching
in sick leave and turnover.
The kitchen has always been the heart of the home

and it is still where families and friends share their
Sharing Our Design Stories
lives, even in todays busy world. Enjoying a feast with
There is a story of fresh thinking behind every Fisher
family and friends is one of lifes simple pleasures
& Paykel appliance stories of the people who chal-
and Fisher & Paykel designs products specifically to
lenged the norm and those who designed new ways
make cooking easier, more enjoyable and more social.
of doing things. Fisher & Paykel takes great pride in
As an extension of this driving product philoso-
sharing these design stories with our customers and
phy, our New Zealand, Australian and US markets are
regularly seeks opportunities to do so.
passionate supporters of a range of cooking schools,
Displaying the talents from our flagship design
community programmes, events and shows. One new
centres in Auckland and Dunedin, events like Urbis
programme we support in New Zealand is called Gar-
Design Day are an opportunity for our designers and
den to Table, where school children are taught how
engineers to engage directly with our customers.
to eat healthily and create meals from items theyve
Through their creation of bespoke design installations
grown themselves.
inspired by Fisher & Paykels Social Kitchen concept,
These are just some examples of our community
our people are able to demonstrate the unique think-
hand up in action across our global markets. Our
ing and stories behind our appliances and discuss the
philosophy is to support the communities in which we
impact of our designs with the people who use our
live, or where our customers reside, and through our
products every day.
people, expertise, funding and products we can be

the helping hand that assists these neighbourhoods
Globally Grown, Locally Honed
where they need it most.
The pioneering spirit of our founders drove the early

development of the business and that focus continues
OUR PEOPLE
today as we expand globally. Key to our success in
Fisher & Paykel is renowned for its leading-edge,
each market is the quality and consistency of our
human-centred products, and it is ultimately the
staff, all focussed on delivering the best customer
human element of our Company our people that
experience possible. This is fostered by the high-
drive this innovation and excellence. Their knowledge
quality leadership we have in each country we oper-
and commitment is the foundation on which Fisher
ate, enabling us to grow strong local teams united
& Paykel builds its reputation. From product design
by a common purpose and belief in the Companys
to point-of-sale, it is our excellent people, working
strategic direction.
together, who have set the Fisher & Paykel brand apart.
Our growth internationally means the Fisher &

Paykel of today is a rapidly changing business made up
A Wellness Strategy
of a diverse range of people spread around the globe
The health of our people is critical to the strength of
in Oceania, Asia, Europe and the Americas. While New
our business and a focus that transcends divisions
Zealand remains the hub for our collective design
through Company-wide involvement and leadership.
and engineering expertise and home to around 44%
Wellness programmes across the business, such as
of our employee base, our workforce is increasingly
Fisher & Paykel Finances recently awarded programme
representative of the global nature of our business
in New Zealand, are delivering marked improvements
and the customers and communities that we serve.
in the overall health and wellbeing of our staff. The
With responsibility for more than 50 international
programmes are also contributing to health and safety
markets, our New Zealand and Australian Call Centres
risk reduction and outcomes, and downward trends
act as a central point for both local and global mar-
P45
kets, working to provide consistently high standards

of customer support. As we expand, this service becomes intrinsic to the calibre and perception of our
brand internationally.
Career Opportunities
The future of Fisher & Paykel is truly global and we
encourage opportunities for career enhancement for
our people both within their local markets and outside their borders as we grow the brand's strengths
world-wide.
By helping to foster individual talent, we grow
our collective expertise, and it is common to find our
people on international assignments within the Company. From engineers to managers to those within our
sales force, our people regularly head to our centres
overseas and we welcome staff from abroad.
The recent global expansion of our Fisher &
Paykel sales force mirrors our growing presence in
markets like Canada, China and India. As we grow, so
to do the career opportunities within our business. All
the while, we strive to build talent through our product
development pipeline to ensure our engineering capability remains strong and able to support our increased
investment in research and development. Our global
manufacturing teams are equally committed to quality
and excellence in all they do, ensuring our products
meet the highest standards of production.
Fisher & Paykel people remain united by a common belief in the Companys past track record of
entrepreneurship and success, and a commitment
from all markets to being part of its future success.
P48
KEITH TURNER, 61, was appointed Chairman of the Company in February

2011 and has been a Director since November 2010. Dr Turner is a now a
professional director and is the Deputy Chairman of Auckland International
Airport, a Director of Spark Infrastructure (in Australia) and a Director of
Chorus, the newly established NZ telecommunications network operator.
He is also currently Chairman of Solar City Limited. Dr Turner possesses
extensive experience in the New Zealand energy sector. Most recently, he
served for 9 years as Chief Executive Officer of Meridian Energy Limited
from 1999 to 2008. Prior to that, he worked as a private energy expert
advising a range of large corporate clients and Government. He has previously served in a number of industry reform functions that established the
current New Zealand industry structure and has had many years in senior
industry operations and planning roles. He has a PhD in Engineering and
is a Distinguished Fellow of IPENZ
PHILIP LOUGH, 65, is a professional Director. His current roles include
Chairman of Methven Limited and Quotable Value, Deputy Chairman of
Port Nelson Limited and Director of Livestock Improvement Corporation.
Mr Lough is the former Chairman of New Zealand Trade and Enterprise.
He has had an executive career in building businesses in the dairy and
seafood industries that have succeeded by developing a network of global
distribution channels. His previous roles include the New Zealand Dairy
Board, Mainland Foods, Ernest Adams, Sealord Group and Deputy Chief
Executive of the New Zealand Dairy Board. Mr Lough holds a Bachelor of
Technology and is a Fellow of the Institute of Directors in New Zealand.
STUART BROADHURST, 45, was appointed Managing Director and Chief
Executive Officer on 11 December 2009. Mr Broadhurst has over 24 years
industry experience in every aspect of the Companys global operations.
Since 1988 he has held a number of senior management positions within
New Zealand and Australia. He has been employed in key leadership roles
for the Fisher & Paykel Appliances Group in the USA, the United Kingdom
and Europe, where he project managed, established and developed major
business units. Mr Broadhurst received a Bachelor of Commerce degree
from the University of Auckland.
LIANG HAISHAN, 45, has been a Director of the Company since April 2011.
Mr Liang has been Executive Vice President of Haier Group and President
of Haier White Goods Group since 2007. Prior to his current roles, Mr
Liang was Vice President of Haier Group and Managing Director of Haier
Refrigeration Division since 2005. Between 2002 and 2005, Mr Liang was
the Vice President of Haier Group and Managing Director of Haier Home
Integration Product Division. Previously he was the Acting Vice President
of Haier Group and Managing Director of Haier Logistics Division since
1999. Mr Liang joined Haier in 1988 and prior to his appointment to the
position of Managing Director of Haier Air Conditioner Division in 1995,
held a variety of positions in the manufacturing, engineering, QC and enterprise management departments. Mr Liang received a Bachelor Degree
of Management Science & Engineering from Xian Jiaotong University and
has a PhD Business Administration.
DIRECTORS
P49
TAN LIXIA, 41, has been a Director of the Company since July 2009. Ms
Tan was appointed as Senior Vice President of the Haier Group in 2010 in
addition to her existing role as Chief Financial Officer. Previously, Ms Tan
was Vice President of Haier Group Corporation and Director of the Finance
Division of Haier Group Corporation, responsible for the Groups financial
management including its risk, investment and financing strategies. Between
2002 and 2006 Ms Tan was the Director of the Haier Overseas Business
Division, where she established Haier as a household name in overseas
markets. Ms Tan has received awards for her outstanding contributions
towards Haiers globalisation strategy as Chinas Female Business Enterprise
and Creator of the Year, 2006, Chinas Chief Accountant of the Year, 2006,
one of Chinas Top Ten Businesswomen in 2006, Chief Finance Officer of
the Year, 2009 and Outstanding Entrepreneur in Shandong Province. Ms
Tan is a 1992 graduate of the Central University of Finance and Economics
and has an EMBA from China Europe International Business School in 2009.
LYNLEY MARSHALL, 52, has over 25 years experience in senior executive
roles in the media and consumer product sectors across New Zealand and
Australia. Mrs Marshall has expertise in competitive strategy, consumer
markets, innovation, taking new technology and services to the market
and multi-channel retail. She is Executive Director of the ABC Commercial
Division of the Australian Broadcasting Corporation. Mrs Marshall was appointed to ABC in 2000 as Director of New Media and Digital Services and
was responsible for the integrated delivery of ABCs digital content and
multi channel services, development and delivery of Australias first freeto-air digital television and broadband services. Prior to joining ABC she
held a variety of executive positions in radio, television and new media in
New Zealand. Mrs Marshall is a Non Executive Director of the Melbourne
Jazz Festival. She is a member of the Australian Institute of Company
Directors and has an Executive MBA from the University of Auckland.
GARY PAYKEL, 70, was Chairman of the Company from April 2004 until he
stood down from his role in November 2009. Mr Paykel remains a Director
of the Company. Mr Paykel was Executive Chairman of the Company following the separation from Fisher & Paykel Industries Limited. He was a
Director of Fisher & Paykel Industries from August 1979, Managing Director
from April 1987 and Chief Executive Officer from December 1989. He was
appointed Chairman of Fisher & Paykel Healthcare Corporation Limited
(previously Fisher & Paykel Industries Limited) following the separation
in November 2001. Mr Paykel joined Fisher & Paykel Industries Limited
in 1960 and prior to his appointment to the position of Sales Director
in 1985, held a variety of positions in the manufacturing, engineering,
purchasing and sales departments. Mr Paykel is a Companion of the New
Zealand Order of Merit.
BILL ROEST, 64 is the Chief Financial Officer of Fletcher Building Limited,
having been appointed on the separate listing of that company in 2001.
He had several leadership roles in the New Zealand finance sector before
joining Fletcher Challenge Limited upon the acquisition of Group Rentals
in 1986. Since then, he has been Managing Director of Fletcher Residential
and Fletcher Aluminium before taking up his present position. Mr Roest
is an Associate Chartered Accountant and a member of the Institute of
Chartered Accountants of New Zealand and a fellow of the Association
of Certified Corporate Accountants (UK).
From top Left: Keith Turner, Philip Lough,

Stuart Broadhurst, Liang Haishan, Tan Lixia,
Lynley Marshall, Gary Paykel, Bill Roest.
P50
STUART BROADHURST, was appointed Managing Director and Chief

Executive Officer on 11 December 2009. Mr Broadhurst has over 24 years
industry experience in every aspect of the Companys global operations.
Since 1988 he has held a number of senior management positions within
New Zealand and Australia. He has been employed in key leadership roles
for the Fisher & Paykel Appliances Group in the USA, the United Kingdom
and Europe, where he project managed, established and developed major
business units. Mr Broadhurst received a Bachelor of Commerce degree
from the University of Auckland.
BRETT BUTTERWORTH, Vice President, Components & Technology,
Production Machinery, Haier PMO, has extensive international experience
in the Companys manufacturing and commercial businesses and has held
a variety of senior executive positions within the organisation over the
past 30 years. His current role also includes project management of the
Companys Haier business relationship, VP of Production Machinery, and
more recently appointment as VP Components & Technology, reflecting
the increasing importance of this business to the Company.
ANDREW COOKE, Vice President, Supply Chain Management and
Information Technology, joined Fisher & Paykel Appliances in 1987 as
a Control Systems Engineer in the East Tamaki Refrigeration Division.
He has held several manufacturing support roles in Australia and New
Zealand before moving to Information Technology in 1997. He was appointed Vice President of Information Technology in 2002 and in 2009
was appointed to the additional role of Vice President Supply Chain
Management. Andrew has a Bachelor of Engineering with First Class
Honours from the University of Auckland.
ROGER COOPER, Vice President Operations, was appointed to this
role in 2010. He has gained extensive knowledge and experience of our
global operations since he joined our Company in 1973, progressing
from junior supervisory roles in the early stages of his career, to senior
management positions, including an appointment as Site Manager of our
Cleveland, Australia operations prior to his current Role. Roger has a NZ
Certificate of Engineering.
DALE FARRAR, Vice President Human Resources, joined Fisher & Paykel
Appliances in July 2010 on her appointment as Vice President Human
Resources. Prior to that Dale was General Manager Human Resources
at the Ministry of Social Development. Dale has extensive experience
in human resource management in international contexts. Before 2004,
Dale held senior global human resource roles at Fonterra Co-operative
Group, New Zealand Dairy Board and Air New Zealand Ltd. Dale has a
Bachelor of Arts (History) and Bachelor of Laws and Law Professionals
from Victoria University of Wellington. She has been admitted as a Barrister and Solicitor of the High Court of New Zealand.
EXECUTIVES / APPLIANCES
GARRY MOORE, Vice President Quality and Customer Services, was

appointed Vice President Quality and Customer Services in March 2011.
Prior to that he was General Manager Global Quality. Garry joined Fisher
& Paykel in 1991 as a Quality Engineer in our Cleveland, Australia operation. He moved to operational management in 1994 and has been Site
Manager for both our Dunedin and Auckland operations, and in 2008,
he was appointed New Zealand Operations Manager.
MATT ORR, Vice President Corporate Planning and Investor Relations,
joined Fisher & Paykel Appliances in 2009 as Vice President Corporate
Planning. In addition to this, he took up the role of Vice President Investor Relations in early 2010. Prior to joining Fisher & Paykel Appliances he
was Vice President Investment Banking at Deutsche Bank New Zealand.
Before 2003, Matt held roles at ABN Amro, Ernst & Young and Telecom
New Zealand. Matt has a Bachelor of Commerce with Combined Honours (First Class Accounting and Finance) from the University of Otago.
CRAIG REID, Chief Sales & Marketing Officer, joined Fisher & Paykel
Appliances in 2010, on his appointment as Chief Sales & Marketing Officer. Craig has extensive international sales and marketing experience,
acquired in a variety of roles within the Fisher & Paykel and Panasonic
organisations. This experience included senior management roles within
Panasonic New Zealand, culminating in his appointment as Managing
Director of that organisation in 2008.
DAVID SULLIVAN, Chief Financial Officer, joined Fisher & Paykel Appliances in August 2011. David has extensive financial and global commercial experience spanning 28 years. His previous business background
includes Chief Financial Officer roles at SkyCity Entertainment Group and
Vodafone New Zealand. He has also worked in a number of senior finance
executive roles in New Zealand and Internationally. He has a Bachelor of
Commerce degree and is a Chartered Accountant.
DANIEL WITTEN-HANNAH, Vice President Product Development, was
appointed Vice President of Product Development in February 2010. He
has extensive experience in all aspects of the Companys engineering and
project management operations. In 2008 Daniel was appointed to the
position of Dunedin Site Manager and prior to that held management
positions within our Cooking, Dishwashing and Refrigeration engineering operations. Daniel has a BE (Hons) of Mechanical Engineering from
Auckland University. Daniel is also leading a working group review of the
Companys Go to Market opportunities, to ensure the Company provides
an integrated consumer experience and a positive environment for their
decision making process.
From top Left: Stuart Broadhurst, Brett Butterworth,

Andrew Cooke, Roger Cooper, Dale Farrar, Garry Moore, Matt
Orr, Craig Reid, David Sullivan, Daniel Witten-Hannah.
P51
P52
ALASTAIR MACFARLANE, Managing Director of Fisher & Paykel Finance

Group, joined Fisher & Paykel Finance in 1988 in his current role and has
been extensively involved in the development of the Finance business,
as the Finance Group has evolved from a small strategic investment into
the current operation offering retail point of sale finance to customers
through a diversified range of retail merchants and commercial dealers.
Prior to joining Fisher & Paykel, Alastair was with Citibank in New Zealand
and KPMG, London, San Francisco and Auckland in an accountancy role.
Alastair has a Bachelor of Commerce degree from Auckland University
and is a member of the NZ Institute of Chartered Accountants.
IAN MCGREGOR, Chief Financial Officer of Fisher & Paykel Finance
Group, joined Fisher & Paykel Finance in 2010 in his current role. Ian
has extensive experience in top tier investment banks in New Zealand
and overseas. Prior to his current role he was Head of Market Risk for
the BNZ, after a secondment to Tokyo with the NAB. Ian changed from
banking to the corporate sector 10 years ago. While in the UK he established a market risk treasury consulting team for SunGard, a global
financial software firm. On returning to New Zealand he joined Fonterra
as a Manager in Group Treasury. Ian has a Bachelor of Business Studies
degree from Massey University and is a registered CPA.
SARAH CARSTENS, General Counsel and Company Secretary, joined
Fisher & Paykel Finance in December 2009. Prior to that, Sarah was a
lawyer with ANZ National Bank Ltd, responsible for legal affairs for its
subsidiary company, UDC Finance Ltd. Sarah has also acquired legal
experience in her previous employment with law firms Buddle Findlay
and Minter Ellison. Prior to that Sarah was with Linklaters London, in their
banking and restructuring team. Sarah has an honours degree in Law
and Bachelor of Science from Canterbury University. She is admitted to
practise as a Barrister and Solicitor of the High Court of New Zealand.
Sarah is currently on parental leave from her General Counsel role, but
remains as Company Secretary.
ADRIAN LICHKUS, Chief Risk Officer, joined Fisher & Paykel Finance in
January 2006 as Chief Credit Risk Officer. Prior to that, Adrian was head
From top Left: Alastair Macfarlane, Ian McGregor,
Sarah Carstens, Adrian Lichkus, Sarah O'Connor,
Gregory Shepherd, Colin Smith.
of the Internal Audit function of the Auckland District Health Board. He

has Chaired the Auckland Branch of the Institute of Internal Auditors of
New Zealand and represented Auckland on the National Board of the
Institute. Adrian has over 15 years experience in credit risk management decision roles, both consumer and commercial, in the banking
sector. Adrian was with Deloitte for 3 years, completing his professional
development training. Adrian has a Bachelor of Commerce from Natal
University and a Bachelor of Accounting Science (Honours) from the
University of South Africa.
EXECUTIVES / FINANCE
SARAH OCONNOR, Chief Human Resources Officer, was appointed to

her current role in 2010. Sarahs experience includes Customer Service
Manager for Retail Financial Services before she moved to Fisher & Paykel
Finance, following the purchase of the Farmers Finance business. She
has been involved in process improvement, procurement and human
resources. Sarah has also held operational management roles with the
ANZ Bank, culminating in a role managing the Mortgage Operations
Team at their Lending Support Centre.
GREGORY SHEPHERD, Chief Operating Officer, was appointed to his
current role in May 2006 and prior to that was Group General Manager
Lending & Business Development. Gregory has extensive financial services experience with Westpac Banking Corporation and Bank of New
Zealand and Securities Trading (debt and equity instruments). He has held
a number of senior management roles in regional banking, marketing,
operations and business development. Gregory was a member of strategic
leadership and project management programmes for Westpac and the
Bank of New Zealand on cross Tasman initiatives. He has a Bachelor of
Commerce from Otago University and a NZ Stock Exchange Diploma.
COLIN SMITH, Chief Information Officer, joined Fisher & Paykel Finance
in 2010. Prior to that, Colin was Chief Information Officer of Manukau
City Council. His other experience includes responsibility for group and
business management functions at 3i plc. This included the areas of
business intelligence, financial systems, operations, customer service and
information technology. Colin has a Bachelor of Science (Hons) degree
from the University of East Anglia and a Masters of Business Administration degree from Aston University.
P53
P54
DIRECTORS REPORT
NZX Waivers
Your Directors are pleased to submit to shareholders
NZSX Listing Rule 9.2.1
their Annual Report, incorporating the financial state-
In 2009, the Company conducted an equity capital
ments and the auditors report, for the year ended
raising, a consequence of which was that Haier became
31 March 2012.
a 20% shareholder in the Company and is accordingly

a Related Party of the Company. At the time of the
Result
equity raising, it was also announced that Haier and
Profit for the year was $18.4 million after tax, com-
the Company had entered into a Cooperation Agree-
pared to $33.5 million after tax for the previous year.
ment to work together on a number of initiatives for
Earnings were 2.5 cents per share (2011 earnings
the benefit of both companies. It is possible that, over
of 4.6 cents per share).
time, aspects of the specific agreements entered into

to give effect to the terms of the Cooperation Agree-
Shareholders Equity
ment will exceed the thresholds in NZSX Listing Rule
Shareholders equity as at 31 March 2012 totalled
9.2.1. The rule provides that entry by an Issuer into
$605.2 million (2011 $614.9 million).
a Material Transaction with a Related Party must be
The Group had 724,235,162 authorised and issued

shares as at 31 March 2012.
During the year no shares were issued.
approved by an Ordinary Resolution of the Issuer.

On 22 March 2010, NZX granted the Company
a waiver, subject to certain conditions, from the requirement in NZSX Listing Rule 9.2.1 that would have
Dividends
required the Company to seek shareholder approval
The Directors have not declared a dividend for the
of the agreements entered into to give effect to the
year ended 31 March 2012 (2011 no dividend declared)
terms of the Cooperation Agreement.
due to continued uncertain market conditions. The
On 30 November 2011, NZX granted the Com-
Directors are conscious of the importance of dividends
pany a waiver from NZSX Listing Rule 9.2.1 such that
to shareholders and will resume dividends as soon as
the Company need not obtain shareholder approval for
financial and operating conditions permit.
the sale of parts under a Motor Supply Agreement that

the Company entered into with Haier on 21 March 2011.
Directors
A condition of each of these waivers was that
In accordance with the Companys Constitution, Dr
the Company includes details in its annual report of
Keith Turner and Ms Tan Lixia will retire by rotation
the values of products sold to, and purchased from,
and being eligible offer themselves for re-election. Mr
the Haier group under the various agreements in the
Philip Lough and Mrs Lynley Marshall, being eligible,
relevant financial year. In relation to the financial year
offer themselves for election.
ended 31 March 2012 that information is set out in Note
As previously announced, Mr Gary Paykel intends
39 to the Financial Statements.
to retire at the Annual Shareholders Meeting set for

23 August 2012.
Remuneration of Directors
The remuneration of the Directors for the year ended
Disclosure of Interests by Directors
31 March 2012 has been disclosed on page 59 of this
Directors certificates to cover entries in the Inter-
Annual Report.
ests Register in respect of remuneration, insurance,

indemnities, dealing in the Companys shares and
other interests have been disclosed as required by
the Companies Act 1993.
DIRECTORS' REPORT AND CORPORATE GOVERNANCE
Outlook
P55
CORPORATE GOVERNANCE
An update on trading and market conditions will be
The Board and management of the Company are
provided at the Annual Shareholders Meeting set for
committed to ensuring that the Company adheres to
23 August 2012.
best practice governance principles and maintains the

highest ethical standards. The Board has agreed to
regularly review and assess the Companys governance
structures to ensure that they are consistent, both in
The Board of Directors of the Company authorised
form and substance, with best practice.

The Company operates under a dual listed com-
the financial statements for issue on 24 May 2012.
pany structure, being listed in both New Zealand and

For and on behalf of the Board
Australia. Corporate governance requirements apply

in both jurisdictions. These requirements include the
ASX Corporate Governance Councils Principles and
Recommendations (2nd edition), the New Zealand

K S Turner
S B Broadhurst
Securities Commissions (now the Financial Markets
Chairman
Managing Director &
Authority) Governance Principles and Guidelines con-
Chief Executive Officer
tained in its report entitled Corporate Governance in

New Zealand Principles and Guidelines (together,
24 May 2012
the Principles) and the NZX Corporate Governance

Best Practice Code (NZX Code).
The Board has adopted a Governance Manual
for the Company, consisting of various charters and
policies which reflect the Principles.
The Board considers that the Companys corporate governance practices and procedures are not
materially different to the Principles.
The Company meets all of the best practice
requirements of the Principles and the NZX Code as
at the date of this Annual Report.
Code of Conduct (Ethics)
The Company expects its Directors and employees to
maintain high ethical standards. A Code of Conduct
for the Company and a separate Directors Code of
Conduct apply.
Both Codes address, amongst other things:
__
conflicts of interest
__
receipt of gifts
__
corporate opportunities
__
confidentiality
__
expected behaviours
__
delegated authority
__
reporting issues regarding breaches of the Code
P56
__
of Conduct, legal obligations or other policies
ficer of the Company. Mr Broadhurst was appointed
of the Company
to this role on 11 December 2009.

Mr Liang Haishan was appointed to the Board
obligations for a Director to act in good faith

and in what the Director believes to be the best
on 14 April 2011.
Mr Simon Botherway resigned on 30 April 2011.
interests of the Company
Mr John Gilks retired on 25 August 2011 but

The full content of the Companys Codes of Conduct
continues as Chairman of the Finance business board.

Mr Philip Lough and Mrs Lynley Marshall were
can be found on the Companys website (www.fisherpaykel.co.nz). At the date of this Annual Report, no
appointed to the Board on 12 September 2011.
serious instances of unethical behaviour have been
Mr Peter Lucas retired on 31 March 2012.
reported under the Companys Code of Conduct.
A summary of the tenure, skills and experience

of each Director is provided at pages 48 to 49 of this
Responsibilities of the Board and Management
Annual Report.
The business and affairs of the Company are managed

under the direction of the Board of Directors. At a
Independence of Directors
general level, the Board is elected by shareholders to:
The factors the Board considers to assess the indepen-
__
establish the Companys objectives
dence of its Directors are set out in its Board Charter.
__
develop, in consultation with the Chief Executive
No materiality thresholds have been adopted, as the
Officer, strategies for achieving the Companys
Boards approach is to determine independence on
objectives
a case by case basis.

After consideration of these factors and criteria,
__
identify and manage risks
__
determine and approve the overall policy frame-
the Board is of the view that:
work within which the business of the Company
__
__
Mr Liang Haishan and Ms Tan Lixia are not
is conducted
independent directors as they are associated
monitor managements performance with respect
directly with Haier (Singapore) Management
to these matters
Holding Co. Pte Ltd, a substantial shareholder of

the Company. No other Director is a substantial
The Board Charter regulates internal board procedure
shareholder of the Company or an officer of, or
and describes the Boards specific role and responsi-
otherwise associated directly with, a substantial
bilities. A copy of the Board Charter is provided on
shareholder of the Company.
the Companys website.
__
There is one Director who within the last three
The Board delegates management of the
years has been employed in an executive capacity
daytoday affairs of the Company to the Executive
by the Company or another Group member, or
team under the leadership of the Managing Director &
been a Director after ceasing to hold any such

employment, namely Mr Stuart Broadhurst.
Chief Executive Officer to deliver the strategic direction and goals determined by the Board.
__
No Director is a material supplier or customer

of the Company or other Group member, or an
The Board
officer of or otherwise associated directly or
Board Composition
indirectly with a material supplier or customer,
At present there are eight Directors on the Board, of
other than Mr Liang Haishan and Ms Tan Lixia.
which seven are nonexecutive Directors.
Mr Liang and Ms Tan are executive officers of
The Executive Director is Mr Stuart Broadhurst,

who is the Managing Director & Chief Executive Of-
Haier which is both a supplier to and customer

of the Company.
__
__
__
No Director other than the Haier representative
acumen, leadership, communication capabilities, tech-
Directors has a material contractual relationship
nology, finance industry and manufacturing industry
with the Company or another Group member
experience. In respect of diversity, the Board aims to
other than as a Director of the Company.
have members who have a broad range of experience,
No Director has served on the Board for a period
who will bring and express a diversity of thought, can
which could, or could reasonably be perceived
operate as a team and see a wide range of oppor-
to, materially interfere with the Directors abil-
tunities for the Company. The Board recognises that
ity to act in the best interests of the Company.
diversity in a variety of forms, including in particular
All Directors are free from any interest or busi-
gender diversity, contributes to improved Company
ness or other relationship, which could or could
performance. Details regarding each Director can be
reasonably be perceived to, materially interfere
found at pages 48 to 49.
with the Directors ability to act in the best in__
P57
Having reviewed the position, the Company con-
terests of the Company.
siders that the Board is composed of an appropriate
Based on the above assessments, the Company
mix of skills, expertise and independence.
considers that five of the current eight Directors are independent directors, namely Dr Keith
Committees
Turner, Mrs Lynley Marshall and Messrs Philip
Specific responsibilities are delegated to the Audit &
Lough, Gary Paykel and Bill Roest.
Risk Management Committee, the Human Resources

and Remuneration Committee and the Nomination
As Mr Stuart Broadhurst held an executive position
Committee. These Board Committees support the
during the financial year he is not, in the Boards
Board by working with management on relevant is-
opinion, independent.
sues at a suitably detailed level and then reporting
The Company notes it has a minimum of three
back to the Board. Each of these Committees has
independent directors as required by the NZSX List-
a charter setting out the committees objectives,
ing Rules.
procedures, composition and responsibilities. These
Following his retirement from the Board on 25

August 2011, Mr John Gilks continued as Chairman of
charters can be viewed on the Companys website,

www.fisherpaykel.co.nz.
the Finance business board. Mr Gilks is a director and

shareholder of a company which provides debt collec-
Audit & Risk Management Committee
tion services to the Finance business in the ordinary
Under the Audit & Risk Management Committee
course of business. Mr Gilks does not take part in the
Charter, the Committee Chair must be an indepen-
selection of debt collection service providers on behalf
dent Director and not the Chairman of the Board,
of the Finance business or the day to day running of
the Committee must have at least three members,
the debt collection company.
the Committee must consist only of non-executive

directors and a majority of the Committees members
Board Statement
must be independent. The members of the Committee
The Board is committed to ensuring that the mix of
are presently Mr Bill Roest, Mrs Lynley Marshall and
skills and diversity at Board level reflects the nature
Ms Tan Lixia. Mr Roest succeeded Mr John Gilks as
and structure of the business and its customer base
Chairman of the Committee on 27 May 2011.
in order to maximise the future success of the Com-
The Audit & Risk Management Committee
pany. The skills that are considered necessary for the
Charter is available on the Companys website, www.
Board include retail markets knowledge, branding and
fisherpaykel.co.nz. The qualifications and expertise of
marketing, international business, financial, strategic
each member of the Committee is outlined on pages
P58
48 to 49 of the Annual Report.

The Committees role is to assist the Board in
its oversight of all matters relating to the financial
of the Committee satisfies the requirement of the

Committee Charter that a majority of the members
be independent.
accounting and reporting of the Company. The Com-
The Nomination Committee Charter is available
mittee also monitors risk management, the processes
on the Companys website, www.fisherpaykel.co.nz.
which are undertaken by management and both
The qualifications and expertise of each member of
external and internal auditors. External auditors are
the Committee is outlined on pages 48 to 49 of the
monitored in accordance with the External Auditors
Annual Report.
Policy, a summary of which appears on the Companys

website, www.fisherpaykel.co.nz.
Board Processes
The Board held 12 monthly meetings during the
Human Resources and Remuneration Committee
year ended 31 March 2012. The table on the follow-
The Human Resources and Remuneration Commit-
ing page shows attendance at the Board (including
tees role is to assist the Board in establishing co-
Board meetings additional to the scheduled monthly
herent human resources and remuneration policies
meetings), Finance business board and Committee
and practices. The current members of the Human
meetings. Board meetings are normally held monthly,
Resources and Remuneration Committee are Messrs
with the exception of January and June. There is a
Philip Lough and Gary Paykel and Mrs Lynley Marshall.
formal procedure agreed by the Board to allow Direc-
The composition of the Committee satisfies the re-
tors to take independent professional advice at the
quirement of the Committee Charter that a majority
expense of the Company.
of the members be independent.
There is a separate board for the Finance busi-
The Human Resources and Remuneration Com-
ness. This is chaired by Mr John Gilks. The other
mittee Charter is available on the Companys website,
directors are Messrs Stuart Broadhurst, Alastair Mac-
www.fisherpaykel.co.nz. The qualifications and exper-
farlane, Gary Paykel, Carlos da Silva and Hugh Rennie
tise of each member of the Committee is outlined on
QC. Messrs da Silva and Rennie QC are autonomous
pages 48 to 49 of the Annual Report.
directors as required by the Reserve Bank of New

Zealand Act 1989 and the Deposit Takers (Fisher &
Nomination Committee
Paykel Finance Limited) Exemption Notice 2010. The
The procedure for the appointment and removal of
Finance business board normally meets monthly, with
Directors is ultimately governed by the Companys
the exception of January and June.
Constitution. A Director is appointed by ordinary

resolution of the shareholders, although the Board
Directors Remuneration
may fill a casual vacancy.
Shareholders fix the total remuneration available to
The Board has delegated to the Nomination
nonexecutive Directors. Shareholders approved the
Committee the responsibility for recommending candi-
current annual fee pool limit at the annual meeting
dates to be nominated as a Director on the Board and
in August 2010 as $1,250,000.
candidates for the committees. When recommending
The Company recognises the key role personnel
candidates to act as a Director, the Committee takes
play in the pursuit of its strategic objectives. The Hu-
into account such factors as it deems appropriate,
man Resources and Remuneration Committee reviews
including the experience and qualifications of the
Director remuneration and is charged with establishing
candidate.
remuneration policies and guidelines to ensure links
Currently, all of the Directors of the Board serve
exist between corporate performance and remunera-
on the Nomination Committee. The composition
tion paid to Directors. The policies are also designed
P59
to enable the Company to attract, retain and motivate
Philip Carmichael
$3,185* (retired 14 April 2011)
Directors who will create value for shareholders.
John Gilks
$65,120 (retired 25 August 2011)
Liang Haishan
$86,015* (appointed 14 April 2011)
Philip Lough
$53,618 (appointed 12 September
The Company takes advice from independent

consultants to benchmark Directors fees with fees
paid to directors of comparable companies in New
2011)
Zealand and Australia.

The Companys policy is to pay its nonexecutive
Peter Lucas
$87,200 (retired 31 March 2012)
Lynley Marshall
$57,480 (appointed 12 September
Gary Paykel
$117,200
Directors fees in cash. However, the Company encour-
2011)
ages the Directors to hold shares in the Company.

Non-executive Directors received the following
Willem (Bill) Roest $110,526
Directors fees (including a retirement allowance where
Tan Lixia
$104,200*
applicable) from the Company in the year ended 31
Keith Turner
$178,200
March 2012:
* Paid to Haier (Singapore) Management Holding Co. Pte Ltd
Simon Botherway $9,350 (retired 30 April 2011)
2012 BOARD AND OTHER MEETING

ATTENDANCE
MONTHLY BOARD
MEETINGS 1
Eligible Attended
BOARD
COMMITTEE
MEETINGS
OTHER BOARD
MEETINGS
Eligible Attended
ARMC 2
Eligible Attended
HR & REM
COMMITTEE
Eligible Attended
Eligible Attended
Directors
Keith Turner
John Gilks [retired 25.08.11]
Simon Botherway [retired 30.04.11]
12
12
Stuart Broadhurst
12
12
Liang Haishan
12
12
12
Philip Lough [appointed 12.09.11]

Peter Lucas
Lynley Marshall [appointed 12.09.11]
Gary Paykel
12
11
Bill Roest
12
12
Tan Lixia
12
Alternate Directors
Hou Xinlai (alternate for Liang Haishan)
12
11
Tommy Leung (alternate for Tan Lixia)
12
12
FINANCE MTHLY
BOARD MTGS
Eligible Attended
FINANCE OTHER
BOARD MTGS
Eligible Attended
BOARD
COMMITTEE MTGS
Eligible Attended
Finance business board

Stuart Broadhurst
10
10
13
12
Carlos da Silva
10
10
13
12
John Gilks
10
13
12
Alastair Macfarlane
10
10
13
13
Gary Paykel
10
13
10
Hugh Rennie
10
13
10
1
2
As all Directors of the Board serve on the Nomination Committee, Committee meetings were held as part of the Board Meetings
Audit & Risk Management Committee
P60
Mr Stuart Broadhurst does not receive remunera-
allowance of $120,928 based on the per annum aver-
tion as a Director of the Company or any subsidiary
age of the fees received by Mr Waters in the previous
company. Mr Broadhurst acting in his capacity as an
three years. Except for Mr Waters, no other Director
employee of the Company and subsidiaries received
was paid a retirement benefit by the Company in the
total remuneration, inclusive of the value of other
year ended 31 March 2012.
benefits, in respect of the year ended 31 March 2012

of $977,244 (2011 $770,659).
The Company has provisioned for Directors

retirement allowances, based on the per annum aver-
As directors of the Finance business board,
age of the fees received by the qualifying Directors
Messrs John Gilks and Gary Paykel received $18,098
in the previous three years. As at 31 March 2012, the
and $30,000 respectively (included in the remunera-
provisioned amount was $384,402 ($528,795 as at
tion figures quoted above) in the year ended 31 March
31 March 2011).
2012. Mr Gilks received a further $26,902 (not included

in the remuneration figures quoted previously) for his
Senior Management Remuneration
continued services as Chairman of the Finance busi-
The Human Resources and Remuneration Committee
ness board following his retirement from the Board,
is responsible for reviewing the remuneration of the
in the year ended 31 March 2012. Messrs Carlos da
Companys senior management in consultation with
Silva and Hugh Rennie QC received directors fees
the Managing Director & Chief Executive Officer of the
of $53,268 each for serving on the Finance business
Company. Similar policies and principles that guide
board, in the year ended 31 March 2012. Mr Alastair
remuneration of Directors apply to the remuneration
Macfarlane did not receive remuneration as a director
of the Companys senior management, although
of the Finance business board.
remuneration packages consist of a mixture of cash
Except as stated above, no employee of the
and other benefits, including Company share based
Company or its subsidiaries receives or retains any
payments. The expected outcomes of the Companys
remuneration or other benefits in their capacity as
remuneration policies for senior management are
a Director.
to balance motivating and retaining key employees,
Under the Companys constitution, the Board is
attracting quality management and providing perfor-
permitted under the NZSX Listing Rules to authorise
mance incentives that allow executives to share the
the payment of retirement allowances to any Direc-
rewards of the success of the Company. In addition,
tor who was in office before 1 May 2004 and has
an Executive Long Term Incentive Plan was recently
continued to hold office since that date, where such
implemented to secure the retention of key execu-
payments do not exceed the total remuneration of a
tives and is focused on achieving the objective of
Director in any three years. The Board has resolved,
long term shareholder wealth.
however, that it will not pay out any future retire-
ASX recommends that listed companies that
ment benefits for Directors appointed prior to 1 May
are not required to comply with section 300A of the
2004, other than at the Boards discretion, an amount
Corporations Act (which requires disclosure of the top
equivalent to one years fees calculated according to
five (5) senior management remuneration packages
the per annum average of the fees paid to that Direc-
paid by the Company) should consider the range of
tor in their last three years of office. Subject to Board
means by which they may achieve the same ends. As
approval, any such retirement benefit will be payable
these figures are distorted by the Company having
following each Directors retirement.
a number of senior managers who reside outside of
Mr Ralph Waters retired from the Board on 28
New Zealand, where remuneration market levels differ
February 2011 and during the year ended 31 March
widely, senior management remuneration is included
2012 the Board approved payment of a retirement
in the wider disclosure made by the Company on
P61
page 167 of this Annual Report, where the Company
material business risks, as well as related internal
has included in relevant bandings the number of em-
compliance systems that are designed to:
ployees, whose remuneration, inclusive of the value of
__
other benefits received by such employees, exceeds

$100,000.
optimise the return to and protect the interests

of stakeholders
__
safeguard the Companys assets and maintain

its reputation
Performance Evaluation and Training
__
improve the Companys operating performance
The Board has a range of policies in place relating to
__
fulfil the Companys strategic objectives
the performance evaluation of the Board, the Boards

committees, individual Directors and Executives. Dur-
The Board, through management, ultimately has
ing the year ended 31 March 2012, the Chairman led a
responsibility for internal control and compliance.
performance evaluation of the Board, its committees
Twice yearly, management prepares a detailed re-
and Directors in accordance with its policies. The
view of material business risks for the Audit & Risk
Chief Executive Officer led a performance evaluation
Management Committee. The Committee reports to
of the senior Executives in accordance with Company
the Board on the effectiveness of the Companys
policies. A summary of the Companys Performance
management of its material business risks. The Board
Evaluation Policy is available on the Companys web-
has received the report of the effectiveness of the
site, www.fisherpaykel.co.nz.
Companys management of material business risks
The Board Charter requires the Board to under-
for the year ended 31 March 2012.
take an annual performance evaluation of itself that:
Whilst s295A of the Corporations Act 2001 (Cth)
compares the performance of the Board with
does not apply to the Company, the Board monitors
the requirements of its Charter
financial reporting risks in relation to the financial
reviews the performance of the Boards
statements and ensures they are founded on an effec-
committees
tive system of risk management and internal control.
__
__
__
__
sets forth the goals and objectives of the business for the upcoming year
Market Disclosure and Shareholder Communication
effects any improvements to the Board Charter
The Company is dedicated to upholding a high stan-
deemed necessary or appropriate
dard of disclosure, ensuring that all investors have

equal and timely access to material information and
The Company believes that a mix of skills and ex-
that information is presented in a clear and balanced
perience is important to ensure that the Board per-
way. A summary of the Companys Market Disclosure
forms most effectively. The Nomination Committee
Policy is available on the Companys website, www.
has responsibility for the Boards appointment and
fisherpaykel.co.nz.
training processes. The selection criteria and training
The Company communicates with its sharehold-
policy for directors can be found in the Nomination
ers publicly by posting information on the Companys
Committee Charter.
website, www.fisherpaykel.co.nz, by releasing on the

NZX and ASX as well as providing an annual review
Risk Management
and interim review to all shareholders.
The Companys Risk Management Policy Summary

is available on the Companys website, www.fisher-
Diversity
paykel.co.nz.
The Company has a Group wide Diversity Policy
The Company has a number of risk management
which reflects the Companys commitment to diversity
policies for the oversight of financial and nonfinancial
and provides a structure for, and complements, the
P62
Companys diversity related initiatives and policies.
tives for achieving diversity, including gender diversity.
A copy of the Companys Diversity Policy is available
The table below details the measureable objectives for
on the Companys website www.fisherpaykel.co.nz.
achieving diversity set by the Board and the progress
In accordance with the Companys Diversity

Policy, the Board has established measureable objec-
made towards achieving these during the year ended

31 March 2012.
MEASURABLE OBJECTIVES
FOCUS
Board
Organisational Analysis
OBJECTIVE
Ensure that the director selection process includes a suitable

pool of candidates with the aim of achieving diversity on the
Board.
2nd female director appointed September 2011.
Conduct an analysis of the current state of diversity (including

gender diversity) in the global organisation that captures:
A comprehensive report for the year ended 31 March 2012 has

been prepared. The current state of the Companys gender
and age diversity is now known.
__
__
__
__
Common View
Systems and Structures
PROGRESS TO 31 MARCH 2012
Representation by organisational strata

Representation by occupational group
Retention rates
Attraction and recruitment rates
Female representation increased from 11% to 22% in year

ended 31 March 2012.
Establishment of data capture for other diversity dimensions

(e.g. ethnicity) is a priority.
Build knowledge and alignment among the leadership team

about the benefits of diversity to the organisation through selfassessment, education and debate.
Three Executive members are on the Steering Group.
Review (and where necessary modify) core recruitment and

promotion systems to ensure that processes are designed to
support the achievement of diversity at all levels and across all
areas of the organisation.
The initial focus towards achieving this objective has been on:
The programme objectives and format for achieving a

common view have been agreed. Relevant background
information has been gathered and Executive sessions
scheduled.
__
__
__
__
Initiatives /
programmes
Reporting
Understanding the barriers to diverse representation in

leadership
Reviewing the Companys recruitment process and practice globally
Establishing a dedicated project team
Focusing on systemic factors that need to be addressed to
ensure a wider pool of skills and capability are identified
Establish a Steering Group to assist the Executive with

overseeing the development and implementation, and ongoing
monitoring of the Companys diversity strategy and progress
towards achievement of objectives.
Achieved. Development of this Steering Group's strategy,

actions and milestones are being developed.
Establish a process for measuring and reporting on progress

towards achieving diversity.
Six monthly reporting to Executive initiated. The reporting

focus for the year ending 31 March 2013 will be on Gender,
including in particular:
__
__
__
Gender in each Business Unit and Country

Gender in each Management Tier
Leadership appointments (attraction and selection rates)
Other dimensions will be added once gaps in the Companys

data are closed.
P63
PROPORTION OF FEMALE EMPLOYEES

Fisher & Paykel
Appliances
Finance
Appliances Group
business
business
Whole Organisation
35%
33%
71%
Senior Executive Positions
18%*
10%
29%
Fisher & Paykel
Fisher & Paykel
Finance business
Appliances Holdings
Appliances Limited
board
0%
0%
Limited
Women on the Board
As at 31 March 2012
*Managing Director included in both Board and Executive numbers
The table above details the proportion of women in

the whole organisation, on the Board and in senior
Executive positions for the entire Fisher & Paykel
Appliances Group, the Appliances business and Finance business.
Policies
Other than policies referred to earlier in this Corporate Governance section, the Company has in place
a number of policies related to respecting the rights
of shareholders and other stakeholders, which aim to:
__
ensure the Company communicates effectively

with them
__
provides appropriate access to the Board, management and external auditors
__
encourage effective shareholder participation

at shareholder meetings
__
prescribe the circumstances where directors,

officers and employees can trade in Company
securities
All policies relating to corporate governance are

available either in full or in summary form on the
Companys website, www.fisherpaykel.co.nz.
22%*

FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2012
P66
Independent Auditors Report

to the shareholders of Fisher & Paykel Appliances Holdings Limited
Report on the Financial Statements

We have audited the financial statements of Fisher & Paykel Appliances Holdings Limited on
pages 68 to 163 which comprise the statements of financial position as at 31 March 2012, the
income statements, statements of comprehensive income, statements of changes in equity and
cash flow statements for the year then ended, and the notes to the financial statements that
include a summary of significant accounting policies and other explanatory information for both
the Company and the Group. The Group comprises the Company and the entities it controlled at
31 March 2012 or from time to time during the financial year.
Directors' Responsibility for the Financial Statements
The Directors are responsible for the preparation of these financial statements in accordance
with generally accepted accounting practice in New Zealand and that give a true and fair view of
the matters to which they relate and for such internal controls as the Directors determine are
necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with International Standards on Auditing (New Zealand) and
International Standards on Auditing. These standards require that we comply with relevant
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors
judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers the internal controls relevant to the Company's and Group's preparation of financial
statements that give a true and fair view of the matters to which they relate in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Company's and Group's internal control. An
audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
We have no relationship with, or interests in Fisher & Paykel Appliances Holdings Limited or
any of its subsidiaries other than in our capacities as providers of providers of audit, tax
compliance and other assurance services. These services have not impaired our independence
as auditors of the Company and Group.
PricewaterhouseCoopers, 188 Quay Street, Private Bag 92162, Auckland 1142, New Zealand
T: +64 (9) 355 8000, F: +64 (9) 355 8001, www.pwc.com/nz
AUDITORS' REPORT
P67
Independent Auditors Report

Fisher & Paykel Appliances Holdings Limited
Opinion
In our opinion, the financial statements on pages 68 to 163:
(i)
comply with generally accepted accounting practice in New Zealand;
(ii)
comply with International Financial Reporting Standards; and
(iii)
give a true and fair view of the financial position of the Company and Group as at
31 March 2012, and their financial performance and cash flows for the year then
ended.
Report on Other Legal and Regulatory Requirements

We also report in accordance with Sections 16(1)(d) and 16(1)(e) of the Financial Reporting Act
1993. In relation to our audit of the financial statements for the year ended 31 March 2012:
(i)
we have obtained all the information and explanations that we have required; and
(ii)
in our opinion, proper accounting records have been kept by the Company as far as
appears from an examination of those records.
Restriction on Distribution or Use

This report is made solely to the Company's shareholders, as a body, in accordance with Section
205(1) of the Companies Act 1993. Our audit work has been undertaken so that we might state
to the Company's shareholders those matters which we are required to state to them in an
auditors' report and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the Company and the Company's
shareholders, as a body, for our audit work, for this report or for the opinions we have formed.
Chartered Accountants
24 May 2012
Auckland
P68
INCOME STATEMENT
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
Notes
$000
$000
$000
$000
1,031,168
1,110,342
Revenue
Operating revenue
Other income
Profit on sale of land & buildings
Other income
Total other income
Total revenue and other income
6,508
6,790
4,093
6,790
10,601
1,037,958
1,120,943
1
-
Items affecting comparability:

Onerous contracts
(2,694)
(882)
Fair valuation of non-current assets held for sale
(1,241)
(500)
Litigation costs
(6,774)
(10,709)
(1,382)
(988,862) (1,056,038)
136
111
Other operating expenses

Total operating expenses
Operating profit
Finance costs
Profit before income tax

Income tax expense
Profit for the year
(999,571) (1,057,420)
27
The above Income Statement should be read in conjunction with the accompanying Notes.
For and on behalf of the Board

Date: 24 May 2012

K S Turner S B Broadhurst
Chairman Managing Director & Chief Executive Officer
111
112
63,523
(10,857)
(15,403)
27,530
48,120
136
112
(9,099)
(14,575)
(82)
35
18,431
33,545
54
147
2.5
4.6
Profit per share attributable to the ordinary equity holders of the Company during the year:
Basic and diluted profit per share
136
136
38,387
P69
STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED
Notes
Profit for the year
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
18,431 33,545 54 147
Other comprehensive (loss) / income

Cash flow hedges
36 17,073 (15,041) - -
Exchange differences on translation of foreign operations
28 (40,491) (10,352) - -
Income tax relating to components of other comprehensive income
36 (4,780) 5,644 - -
Other comprehensive (loss) / income for the year net of tax
(28,198) (19,749)
- -
Total comprehensive (loss) / income for the year
(9,767) 13,796 54 147
The above Statement of Comprehensive Income should be read in conjunction with the accompanying Notes.
P70

STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2012
CONSOLIDATED
APPLIANCES
BUSINESS*
FINANCE BUSINESS
PARENT
31 March
31 March
31 March
31 March
31 March
31 March
31 March
2012
2011
2012
2011
2012
2011
2012
31 March
2011
Notes
$000
$000
$000
$000
$000
$000
$000
$000
10
109,347
113,529
22,273
21,375
87,074
92,154
11
125,652
150,628
116,354
140,547
9,298
10,081
21
27
Assets
Current assets
Cash & cash equivalents
Trade receivables & other current assets
Finance business receivables
12
359,662
369,876
359,662
369,876
Inventories
13
151,772
195,108
151,772
195,108
Non-current assets classified as held for sale
14
13,843
15,021
13,843
15,021
Derivative financial instruments
15
2,365
2,654
2,361
2,654
2,023
1,162
2,023
1,162
637,620
637,585
764,664
847,978
308,626
375,867
456,038
472,111
637,646
637,613
200,521
202,155
199,448
200,909
1,073
1,246
Tax receivables
Intergroup advances
39
Total current assets

Non-current assets
Property, plant & equipment
16
Investment in subsidiaries
33
100,263
100,263
-
207,362
205,383
Intangible assets
17
196,709
210,948
83,252
90,649
113,457
120,299
Finance business receivables
12
234,870
231,719
234,870
231,719
15
151
103
48
7,015
7,015
18
54,783
55,857
71,275
75,385
148
228
Investment in Finance business
Tax receivables
Deferred taxation
Other non-current assets
Total non-current assets
Total assets
1,988
2,738
1,432
1,694
556
1,044
689,022
710,436
562,872
581,038
350,004
354,309
100,411
100,497
1,453,686
1,558,414
871,498
956,905
806,042
826,420
738,057
738,110
Liabilities
Current liabilities
19
3,205
3,205
20
319,865
328,917
319,865
328,917
21
96,560
99,141
96,560
99,141
17
17
Provisions
22
20,485
18,341
20,477
18,333
15
2,881
21,000
2,213
20,397
668
603
1,515
6,869
1,515
6,869
2,138
3,857
23
62,359
73,534
34,457
49,600
27,902
23,934
774
820
506,870
547,819
158,427
194,357
350,581
357,319
774
820
Current borrowings
Finance business borrowings
Trade creditors
Current finance leases
Tax liabilities
Other current liabilities
Total current liabilities
Non-current liabilities
19
83,605
121,557
83,605
121,557
20
231,101
244,998
231,101
244,998
Provisions
22
15,575
14,195
14,979
13,696
596
499
15
2,782
5,701
734
3,151
2,048
2,550
Deferred taxation
24
5,610
6,871
5,610
6,871
14,354
15,671
Other non-current liabilities
25
2,962
2,325
2,962
2,325
61
Total non-current liabilities
341,635
395,647
107,890
147,600
248,099
263,718
61
Total liabilities
848,505
943,466
266,317
341,957
598,680
621,037
774
881
Non-current borrowings
Finance business borrowings
Non-current finance leases
Shareholders equity
Contributed equity
26
841,869
841,869
841,869
841,869
842,381
842,381
Accumulated losses
28
(147,992)
(166,423)
(147,992)
(166,423)
(107,068)
(107,122)
Reserves
28
(88,696)
(60,498)
(88,696)
(60,498)
1,970
1,970
207,362
Investment in Finance business

Total shareholders equity
Total liabilities and shareholders equity
205,383
605,181
614,948
605,181
614,948
207,362
205,383
737,283
737,229
1,453,686
1,558,414
871,498
956,905
806,042
826,420
738,057
738,110
*For disclosure purposes, the Appliances business includes both the Parent entity and AF Investments Limited
The above Statement of Financial Position should be read in conjunction with the accompanying Notes.
P71
STATEMENT OF CHANGES IN EQUITY

CONSOLIDATED
ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY

Share Accumulated
Balance at 1 April 2011
Translation
Foreign
Interest
Treasury
Share-
Total
of foreign
exchange
rate
stock
based
equity
operations
hedges
hedges
$000
$000
$000
$000
$000
$000
(166,423)
(50,370)
(11,350)
(1,260)
512
1,970
614,948
(28,198)
capital
losses
$000
$000
841,869
payments
Changes in equity
Other comprehensive income for the year
(40,491)
12,363
(70)
Profit for the period
18,431
18,431
Balance at 31 March 2012
841,869
(147,992)
(90,861)
1,013
(1,330)
512
1,970
605,181
841,869
(199,968)
(40,018)
(3,213)
512
1,970
601,152
(19,749)
Changes in equity
(10,352)
(8,137)
(1,260)
Profit for the year
33,545
33,545
841,869
(166,423)
(50,370)
(11,350)
(1,260)
512
1,970
614,948
PARENT
ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY

Share Accumulated
Translation
Foreign
Interest
Treasury
Share-
Total
of foreign
exchange
rate
stock
based
equity
capital
losses
$000
$000
$000
$000
$000
$000
$000
$000
842,381
(107,122)
1,970
737,229
operations
hedges
payments
Changes in equity
Profit for the period
54
54
842,381
(107,068)
1,970
737,283
842,381
(107,269)
1,970
737,082
Changes in equity
Profit for the year
147
147
842,381
(107,122)
1,970
737,229
The above Statement of Changes in Equity should be read in conjunction with the accompanying Notes.
P72

CASH FLOW STATEMENT
CONSOLIDATED
Notes
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
Cash flows from operating activities

Receipts from customers
912,704 985,208 - -
Financing interest and fee receipts
140,941 144,808 - -
Interest received
780 504 - 1
(872,796)
Payments to suppliers and employees
(958,656) (1,292) (1,785)
Income taxes paid
(12,824) (1,896) - -
Interest paid
(52,023) (57,066) - 116,782 112,902 (1,292) (1,784)

571,897 579,958 - -
Principal on loans repaid by Finance business customers
(577,974)
New loans to Finance business customers

Net cash inflow / (outflow) from operating activities
(586,699) - -
35
110,705 106,161 (1,292) (1,784)
Sale of property, plant & equipment
2,080 29,335 - -
Purchase of property, plant & equipment
16
Capitalisation of intangible assets
17
Cash flows from investing activities

(40,023)
(17,734) - -
(10,453) (10,607) - -
Acquisition of Mexican operations instalment
(12,812) (12,419) - -
Other investments
500 - - -
Net cash inflow / (outflow) from investing activities
(60,708) (11,425) - -
Cash flows from financing activities

New noncurrent borrowings
19
133,754 50,426 - -
New Finance business borrowings
20
119,080 104,057 - -
Repayment of borrowings
19
(162,502) (140,159)
- -
Repayment of Finance business borrowings
20
(142,447) (79,102) - -
Lease liability payments
2 (344) - -
Intercompany borrowings
- - 1,292 1,785
Net cash inflow / (outflow) from financing activities
(52,113) (65,122) 1,292 1,785
Net increase / (decrease) in cash & cash equivalents
(2,116) 29,614 - 1
Cash & cash equivalents at the beginning of the year
113,529 82,650 1 (2,066) 1,265 - -
Effects of foreign exchange rate changes on cash & cash equivalents

Cash and cash equivalents at the end of the year
The above Cash Flow Statement should be read in conjunction with the accompanying Notes.
10
109,347 113,529 1 1
NOTES TO THE FINANCIAL STATEMENTS
P73
CONTENTS OF THE NOTES

TO THE FINANCIAL STATEMENTS
Page
1
General information
Summary of significant accounting policies
74
Critical accounting estimates and judgements
86
74
Financial risk management Appliances business & Parent
88
Financial risk management Finance business
96
Segment information
106
Revenue & other income
110
Expenses
111
Income tax expense
114
10
115
11
Trade receivables & other current assets
116
12
Finance receivables
118
13
Inventories
122
14
Noncurrent assets classified as held for sale
122
15
123
16
126
17
Intangible assets
128
18
Deferred tax assets
132
19
Current and noncurrent borrowings
133
20
Finance borrowings
135
21
Trade creditors
140
22
Provisions
141
23
Other current liabilities
143
24
Deferred tax liabilities
143
25
Other noncurrent liabilities
144
26
Contributed equity
144
27
Earnings per share
146
28
Accumulated losses and reserves
146
29
Imputation credits
148
30
Defined benefit obligations
149
31
Contingencies
154
32
Commitments
154
156
33
Investments in subsidiaries
34
Sharebased payments
157
35
Reconciliation of profit after income tax to net cash inflow from operating activities
159
36
Disclosure of components of other comprehensive income
160
37
Disclosure of tax effects relating to each component of other comprehensive income
160
38
Government grants
160
39
Related party transactions
161
40
Events occurring after the Statement of Financial Position date
163
41
Foreign currency exchange rates
163
P74
1. GENERAL INFORMATION
The Group and Company are profitoriented limited liability entities incorporated and domiciled in New Zealand.
The Company is dual listed on the New Zealand and Australian Stock exchanges and, under dual listing rules, the
Company is required to have registered offices in each country. The addresses are:
__
78 Springs Road, East Tamaki, Auckland, New Zealand
__
Weippin Street, Cleveland, Queensland 4163, Australia
The financial statements were authorised for issue by the Board of Directors on 24 May 2012.
The Group has two principal areas of business:
__
Appliance manufacturer, distributor and marketer (Appliances business)
__
Financial services in New Zealand (Finance business)
The principal activity of the Appliances business is the design, manufacture and marketing of major household appliances. Its major markets are New Zealand, Australia, North America and Europe. The Appliances business has
manufacturing operations in New Zealand, United States of America, Mexico, Italy and Thailand.
The Finance business is a leading provider of retail point of sale consumer finance (including the Farmers Finance
Card and Q Card), insurance services and rental & leasing finance.
The Directors do not have the authority to amend the financial statements after issue.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These general purpose financial statements for the year ended 31 March 2012 have been prepared in accordance
with New Zealand Generally Accepted Accounting Practice (NZ GAAP) and comply with New Zealand Equivalents
to International Financial Reporting Standards (NZ IFRS), International Financial Reporting Standards (IFRS) and
any other applicable Financial Reporting Standards.
(a) Basis of preparation
Entities reporting and statutory base
The Parent Companys financial statements are for Fisher & Paykel Appliances Holdings Limited as a separate legal
entity (the Company) and the consolidated financial statements are for the Fisher & Paykel Appliances Holdings
Limited Group (the Group), which includes all its subsidiaries. The Group and Company are reporting entities for
the purpose of the Financial Reporting Act 1993 and the financial statements comply with that Act and the Companies Act 1993.
Going concern
The financial statements have been prepared under the going concern convention, which assumes the Group continues to operate in full compliance with banking covenants.
In the absence of an unanticipated deterioration in the Groups operating performance, the Directors consider there
is reasonable headroom between the forecast financial performance of the Guaranteeing Group and that required
to meet banking covenants. This is supportive of the financial statements being prepared on a going concern basis.
These financial statements are stated in New Zealand dollars rounded to the nearest thousand unless otherwise indicated.
In accordance with NZ IAS 1 (Revised), Presentation of Financial Statements, items which are relevant to understanding the Groups financial performance are disclosed on the face of the Income Statement.
Historical cost convention
These financial statements have been prepared under the historical cost convention, as modified by the revaluation
of certain financial assets and liabilities (including derivative instruments) at fair value through profit or loss.
Critical accounting estimates and judgements

The preparation of financial statements in conformity with NZ IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgement in the process of applying the Groups accounting
policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates
are significant to the financial statements, are highlighted in Note 3.
(b) Principles of Consolidation
Subsidiaries are entities that are controlled either directly by the Company or where the substance of the relationship
between the Company and the entity indicates the Company controls it. A list of subsidiaries appears in Note 33. The
results of subsidiaries acquired or disposed of during the year are included in the Consolidated Income Statement
from the date of acquisition or up to the date of disposal.
The Company and subsidiary company accounts (including special purpose entities) applies the acquisition method
to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair
values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests
issued by the group. The consideration transferred includes the fair value of any asset or liability resulting from a
contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed
in a business combination are measured initially at their fair values at the acquisition date. The Group recognises
any noncontrolling interest in the acquiree on an acquisition byacquisition basis, either at fair value or at the
noncontrolling interests proportionate share of the recognised amounts of acquirees identifiable net assets. The
excess of the cost of acquisition over the fair value of the Groups share of the identifiable net assets acquired is
recorded as goodwill.
All material intercompany transactions, balances and unrealised gains on transactions between Group companies are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the
asset transferred. Accounting policies of subsidiaries are consistent with those adopted by the Group.
Acquisitionrelated costs are expensed as incurred.
Where settlement of any cash consideration is deferred, the amounts payable in the future are discounted to their
present value as at the date of exchange. The discount rate used is the Groups incremental borrowing rate, being
the rate at which a similar borrowing could be obtained under the Groups existing funding arrangements.
(c) Segment reporting
An operating segment is presented on the same basis as that used for internal reporting purposes and its results
are regularly reviewed by the chief operating decision maker, which consists of the Board of Directors together with
the Executives of the Appliances and Finance businesses.
All costs are directly allocated to the segment in which they are incurred, otherwise they are presented as unallocated.
(d) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of the Groups entities are measured using the currency that best
reflects the economic substance of the underlying events and circumstances relevant to that entity (the functional
currency), which is currently the country of domicile for each overseas subsidiary. The consolidated and Company
financial statements are presented in New Zealand dollars, which is the Groups presentation currency and Companys
functional currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions or at the hedged rate if financial instruments have been used to reduce exposure.
At balance date, monetary assets and liabilities in foreign currency are translated at the yearend closing or hedged rates.
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Translation differences are recognised in the Income Statement, except when deferred in equity as qualifying cash
flow hedges or net investment hedges.
(iii) Foreign Operations
The financial statements of foreign operations with a different functional currency are translated to the presentation
currency at the following exchange rates:
__
yearend closing exchange rate for assets and liabilities
__
monthly weighted average exchange rates for revenue and expense transactions
Exchange differences arising from the translation of any net investment in foreign operations are taken to shareholders equity.
Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated as assets and liabilities
of the foreign operation and translated at the closing rate.
(e) Revenue recognition
(i) Sales of goods
Revenue from sales of goods is recognised when the significant risks and rewards of ownership have transferred
to the buyer.
(ii) Sales of services
Revenue from sales of services is recognised when the service, such as installation or repair of products, has been
performed.
(iii) Longterm contracts
Revenue on longterm contracts is recognised over the period of the project, once the outcome can be estimated
reliably. The stage of completion method is used to determine the appropriate amount of revenue to recognise at
balance date. The stage of completion is determined by reference to contract terms agreed with the customer. The
full amount of any expected loss, including that related to future work on the contract, is recognised in the Income
Statement as soon as it becomes probable.
(iv) Income on Finance receivables
Interest income on Finance receivables is recognised in the Income Statement and is measured at amortised cost
using the effective interest method.
Yield related fees for finance receivables are accrued to income over the term of the loan using the effective interest method. Fees not included in the effective interest calculation are recognised on an accruals basis when the
service has been provided.
Fees charged to customer accounts in arrears are recognised as income at the time the fees are charged.
(v) Premium revenue
Premium revenue comprises revenue from direct business and includes amounts charged to the insured but excludes
fire service levies, GST and other amounts collected on behalf of third parties.
Premium revenue is recognised in the Income Statement when it has been earned from the attachment date over the
period of the contract for direct business. The proportion of premium received or receivable not earned in the Income
Statement as at balance date is recognised in the Statement of Financial Position as an unearned premium liability.
(vi) Interest income
Interest income is recognised on a timeproportionate basis using the effective interest method, which takes into
account the effective yield on the financial asset.
(vii) Royalty income

Royalty income is recognised on an accruals basis in accordance with the substance of the relevant agreements.
(viii) Dividend income
Dividend income from investments is recognised when the shareholders right to receive payment is established.
(f) Government grants
Government grants include government assistance relating to specific research activities, amounts received to encourage retention of employees and also amounts received to encourage set up of operations in certain regions.
Grants are deducted against the expenses they are intended to compensate.
(g) Income tax
The income tax expense for the period is the total of the tax payable on the current periods taxable income based
on the income tax rate for each jurisdiction. This is then adjusted for any changes in deferred tax assets and liabilities
attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in
the financial statements and any unused tax losses.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rate expected to apply when the
assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantially enacted for
each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary
differences to measure the deferred tax asset or liability. An exception is made for certain temporary differences
arising from the initial recognition of an asset or liability. No deferred tax asset or liability is recognised in relation
to these temporary differences if they arose in a transaction, other than a business combination, that at the time of
the transaction did not affect either accounting profit or taxable profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable
that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are not recognised for temporary differences between the carrying amount and
tax bases of investments in foreign operations where the company is able to control the timing of the reversal of
temporary differences and it is probable that the differences will not reverse in the foreseeable future.
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly
in equity.
(h) Goods and Services Tax (GST)
The financial statements have been prepared so that all components are stated exclusive of GST except where the
GST is not recoverable from the IRD. In these circumstances the GST component is recognised as part of the underlying item. Trade and other receivables and payables are stated GST inclusive. The net amount of GST recoverable
from or payable to the IRD is included within these categories.
(i) Leases
(i) Group as lessee
Leases under which the Group assumes substantially all the risks and rewards of ownership are classified as finance
leases. All other leases are classified as operating leases. Assets acquired under finance leases are stated at an
amount equal to the lower of their fair value and the present value of the minimum lease payments at the inception
of the lease, less accumulated depreciation and any impairment losses.
Each lease payment is allocated between the liability and finance charges. The corresponding rental obligations, net
of finance charges, are included in other longterm payables. The interest element of the finance cost is charged to
the income statement over the lease period so as to produce a constant periodic rate of interest on the remaining
balance of the liability for each period. Payments made under operating leases (net of any incentives received from
the lessor) are charged to the income statement on a straightline basis over the period of the lease.
P77
P78

(ii) Group as lessor
Assets leased out to third parties under a finance lease are recognised as a receivable at an amount equal to the
present value of the minimum lease payments. The difference between the gross receivable and the present value
of the receivable is recognised as unearned finance income. Finance lease income is recognised over the term of the
lease using the net investment method, which reflects a constant periodic rate of return.
(j) Insurance expenses (Finance business)
Claims handling costs include costs that can be associated directly with individual claims, such as legal and other
professional fees, and costs that can only be indirectly associated with individual claims, such as claims administration costs. Discounting is not applied as claims are typically resolved within one year.
Amounts paid to insurers under insurance contracts are recorded as an outwards reinsurance expense and are
recognised in the Income Statement from the attachment date over the period of the indemnity of the reinsurance
contract in accordance with the expected pattern of the incidence of risk ceded.
(k) Cash & cash equivalents
Cash & cash equivalents includes cash on hand, deposits held at call with financial institutions, bank overdrafts and
other shortterm, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Bank overdrafts
are shown within current liabilities on the Statement of Financial Position.
The Finance business has determined that certain money market deposits and government stock are held to support
general insurance liabilities. These assets are designated at fair value through profit or loss. Initial recognition is at
fair value in the Statement of Financial Position and subsequent measurement is at fair value with any resultant fair
value gains or losses recognised in the Income Statement. The fair value of these assets is recorded at amounts based
on valuations using rates of interest equivalent to the yields obtainable on comparable investments at balance date.
(l) Trade receivables
Trade receivables are recognised initially at fair value less transaction costs and subsequently measured at amortised
cost less an allowance account for impaired receivables. The amount of any loss is recognised in the Income Statement within Administration expenses.
Collectability of trade receivables is reviewed on an ongoing basis. When there is objective evidence the Appliances
business will not be able to collect all amounts due, they are written off against the allowance account for impaired
trade receivables.
(m) Inventories
Inventories are valued at the lower of cost, on a firstin, firstout basis, or net realisable value. Cost includes direct
materials, direct labour, an appropriate proportion of variable and fixed overhead expenditure (the latter being allocated on the basis of normal operating capacity) but excludes finance, administration, research & development and
selling & distribution overheads. Net realisable value is the estimated selling price in the ordinary course of business
less all estimated costs of completion and the costs incurred in marketing, selling and distribution.
(n) Financial assets
Regular purchases and sales of financial assets are recognised on the trade date, i.e. the date on which the Group
commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from
the investments have expired or the Group has transferred substantially all the risks and rewards of ownership.
Financial assets are classified into the following specified categories: financial assets at fair value through profit or
loss, held to maturity investments, availableforsale financial assets and loans and receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.
Financial assets at fair value through profit or loss
This category has two subcategories: financial assets held for trading and those designated at fair value through
profit or loss at inception. A financial asset is classified in this category if acquired principally for the purpose of
selling in the short term or if so designated by management. Derivatives are also categorised as held for trading
unless they are designated as hedges. Assets in this category are classified as current assets if they are either held
for trading or are expected to be realised within 12 months of the balance date.
Held to maturity investments
Held to maturity investments are nonderivative financial assets with fixed or determinable payments and fixed
maturities that the Group has the positive intention and ability to hold to maturity.
Loans & receivables
Loans & receivables are nonderivative instruments with fixed or determinable payments that are not quoted in an
active market. They are included in current assets, except for maturities greater than 12 months after the balance
date, which are classified as noncurrent assets. Loans & receivables are reported separately in Trade or Finance
receivables on the Statement of Financial Position.
Availableforsale financial assets
Availableforsale financial assets are nonderivatives that are either designated in this category or not classified in
any of the other categories. They are included in noncurrent assets unless the company intends to dispose of the
investment within 12 months of the balance date.
Availableforsale financial assets and financial assets at fair value through profit or loss are carried at fair value. Held
to maturity investments and loans & receivables are carried at amortised cost less impairment using the effective
interest method. Realised and unrealised gains and losses arising from changes in the fair value of the financial assets
through profit or loss category are recognised in the Income Statement in the period in which they arise. Unrealised
gains and losses arising from changes in the fair value of nonmonetary securities classified as availableforsale are
recognised in equity. When securities classified as availableforsale are sold, the accumulated fair value adjustments
are included in the Income Statement as gains and losses from investment securities.
(o) Insurance assets (Finance business)
Assets that back general insurance liabilities are designated at fair value through profit or loss. Initial recognition is at
cost in the Statement of Financial Position and subsequent measurement is at fair value with any resultant fair value
gains or losses recognised in the Income Statement. The fair value of these assets is recorded at amounts based on
valuations using rates of interest equivalent to the yields obtainable on comparable investments at the reporting date.
Acquisition costs incurred in obtaining general insurance contracts are deferred and recognised as assets where they
can be reliably measured and where it is probable they will give rise to premium revenue that will be recognised in
the Income Statement in subsequent reporting periods.
Deferred acquisition costs are amortised systematically in accordance with the expected pattern of the incidence
of risk under the general insurance contracts to which they relate. This pattern of amortisation corresponds to the
earning pattern of the corresponding premium revenue.
(p) Derivatives
The Group enters into a variety of derivative financial instruments to manage its exposure to foreign exchange rate
risk and interest rate risk including forward foreign exchange contracts, interest rate swaps and options. Further
details of derivative financial instruments are provided in Note 15.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
remeasured to their fair value at each balance date. Recognition of the resulting gain or loss depends on whether
the derivative is designated as a hedging instrument and the nature of the item being hedged. As appropriate, the
Group designates derivatives as either hedges of the fair value of recognised assets or liabilities or firm commitments
(fair value hedges) or hedges of highly probable forecast transactions (cash flow hedges).
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(i) Fair value hedge
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the
Income Statement, together with any changes in the fair value of the hedged asset or liability that are attributable
to the hedged risk.
If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged
item for which the effective interest method is used is amortised to profit or loss over the period to maturity.
(ii) Cash flow hedge
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges
is recognised in equity in the hedging reserve. The gain or loss relating to the ineffective portion is recognised immediately in the Income Statement.
Amounts accumulated in equity are recycled in the Income Statement in the periods when the hedged item will
affect profit or loss (for instance when the forecast sale that is hedged takes place). However, when the forecast
transaction that is hedged results in the recognition of a nonfinancial asset (for example, inventory) or a nonfinancial
liability, the gains and losses previously deferred in equity are transferred from equity and included in the initial
measurement of the asset or liability.
When a hedging instrument expires, is sold or terminated, or when a hedge no longer meets the hedge accounting criteria, any cumulative gain or loss existing in equity at that time remains in equity and is recognised in the
Income Statement when the forecast transaction is ultimately recognised in the Income Statement. When a forecast
transaction is no longer expected to occur, the cumulative gain or loss that was deferred in equity is immediately
transferred to the Income Statement.
(iii) Derivatives that do not qualify for hedge accounting
Changes in the fair value of derivatives that do not qualify for hedge accounting are recognised immediately in the
Income Statement.
(q) Noncurrent assets held for sale
Noncurrent assets held for sale are stated at the lower of their carrying amount and fair value less costs to sell.
Noncurrent assets are not depreciated or amortised while they are classified as held for sale.
(r) Property, plant & equipment
Property, plant & equipment is stated at historical cost less accumulated depreciation and any impairment losses
if applicable. Historical cost includes all expenditure directly attributable to the acquisition or construction of the
item, including interest.
Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the asset will flow to the Group and the cost of
the asset can be measured reliably. All other repairs and maintenance are charged to the Income Statement during
the financial period in which they are incurred.
Property, plant & equipment, other than Freehold Land and Capital WorkinProgress, is depreciated on a straightline
basis over its estimated useful life as follows:
Freehold buildings 50 years
Leasehold improvements Life of lease
Plant & equipment 315 years
Fixtures & fittings 310 years
Motor vehicles 5 years
An assets useful life is reviewed and adjusted, if appropriate, at each balance date.
Property, plant & equipment which is temporarily idle (mothballed) is held at historical cost and is depreciated on a
straightline basis over its estimated useful life as above.

(s) Intangible assets
Acquired intangible assets
(i) Goodwill
Goodwill arises on the acquisition of subsidiaries, and represents the excess of the consideration transferred over
the groups interest in net fair value of the net identifiable assets, liabilities and contingent liabilities of the acquiree.
Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised but is tested for
impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired,
and is carried at cost less any accumulated impairment losses.
Goodwill is allocated to cash generating units for the purpose of impairment testing. Impairment losses on goodwill
are not reversed.
Goodwill is allocated to those cash generating units that are expected to benefit from the business combination in
which the goodwill arose, identified according to operating segment.
(ii) Patents, trademarks and licences
Patents, trademarks and licences are finite life intangible assets and are recorded at cost less accumulated amortisation and impairment losses. Amortisation is charged on a straightline basis over their estimated useful lives,
which vary from 10 to 20 years. The estimated useful life and amortisation method is reviewed at each balance date.
(iii) Computer software
External software costs together with payroll and related costs for employees directly associated with the development of software are capitalised. Costs associated with upgrades and enhancements are capitalised to the extent
they result in additional functionality. Amortisation is charged on a straightline basis over the estimated useful life
of the software of 315 years. The estimated useful life and amortisation method is reviewed at each balance date.
(iv) Brands
Acquired brands, for which all relevant factors indicate there is no limit to the foreseeable net cash flows, are not
amortised on the basis that they have an indefinite useful life and are carried at fair value acquired less any accumulated impairment losses. The carrying amount of acquired brands is tested annually for impairment.
(v) Customer relationships
Customer relationships are finite life intangible assets and are recorded at fair value acquired less accumulated amortisation and any impairment losses. Amortisation is charged on a straightline basis over their estimated useful life
of 10 years. The estimated useful life and amortisation method is reviewed at each balance date.
Internally generated intangible assets
(vi) Research & development
Research expenditure is expensed as it is incurred. Development expenditure is expensed as incurred, unless that
expenditure directly relates to new or improved products where the level of certainty of their future economic benefits and useful life is probable, in which case the expenditure is capitalised and amortised on a systematic basis
reflecting the period of consumption of the benefit, which varies from 35 years.
(t) Impairment of nonfinancial assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment.
Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances
indicate the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which
the assets carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an assets fair
value less costs to sell and value in use.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash flows (cash generating units).
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(u) Impairment of financial assets (Finance business)
The Finance business classifies its receivables at amortised cost (using the effective interest method) less any impairment adjustment.
An assessment is made at each reporting date whether there is objective evidence that a financial asset or group
of financial assets is impaired. A financial asset or group of financial assets is impaired and impairment losses are
incurred if, and only if, there is objective evidence of impairment as a result of one or more events that occurred
after the initial recognition of the asset (a loss event) and that loss event (or events) has an impact on the estimated
future cash flows of the financial asset or group of financial assets that can be reliably estimated.
Objective evidence that a financial asset or group of assets is impaired includes observable data about the following loss events:
__
significant financial difficulty of the issuer or obligor
__
breach of contract, such as default or delinquency in interest or principal payments
__
a concession granted to the borrower that the lender would not otherwise consider for economic or legal
reasons relating to the borrowers financial difficulty
__
it becoming probable that the borrower will enter bankruptcy or other financial reorganisation
__
the disappearance of an active market for that financial asset because of financial difficulties
__
observable data indicating that there is a measurable decrease in the estimated future cash flows from a group
of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified
with the individual financial assets in the group including adverse changes in the payment status of borrowers
in the group
Firstly an assessment is made whether objective evidence of impairment exists individually for financial assets that
are individually significant, and individually or collectively for financial assets that are not individually significant.
If it is determined that no objective evidence exists for an individually assessed financial asset, whether significant
or not, the assets are included in a group of financial assets with similar credit risk characteristics and collectively
assessed for impairment. Assets that are individually assessed for impairment and for which an impairment loss is
or continues to be recognised are not included in a collective assessment of impairment.
If there is objective evidence that an impairment loss on loans and receivables carried at amortised cost has been
incurred, the amount of loss is measured as the difference between the assets carrying amount and the present
value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the
financial assets original effective interest rate. The carrying amount of the asset is reduced through the use of an
allowance account and the amount of the loss is recognised in the statement of comprehensive income. If a loan
has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate
determined under the contract. As a practical expedient impairment may be measured on the basis of an instruments
fair value using an observable market price.
The calculation of the present value of the estimated future cash flows of a collateralised financial asset reflects the
cashflows that may result from foreclosure less costs for obtaining and selling collateral, whether or not foreclosure
is probable.
For the purposes of a collective evaluation of impairment, financial assets are grouped on the basis of similar credit
risk characteristics. Those characteristics are relevant to the estimation of future cash flows for groups of such assets
by being indicative of the debtors ability to pay all amounts due according to the contractual terms of the assets
being evaluated. Future cash flows in a group of financial assets that are collectively evaluated for impairment are
estimated on the basis of the contractual cash flows of the assets in the Finance business and historical loss experience for assets with credit characteristics similar to those in the Group. Estimates of changes in future cash flows
for groups of assets should reflect and be directionally consistent with changes in related observable data from
period to period (for example, changes in payment status or other factors indicative of changes in probability of
losses in the group and their magnitude). The methodology and assumptions used for estimating future cash flows
are reviewed regularly to reduce any differences between loss estimates and actual loss experience. When a loan
is uncollectible, it is written off to the statement of comprehensive income. Such loans are written off after all the
necessary procedures have been completed and the amount of the loss has been determined. If, in a subsequent
period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as an improvement in the debtors credit rating), the previously
recognised impairment loss is reversed by adjusting the allowance account. The amount of the reversal is recognised
in the statement of comprehensive income.
(v) Borrowings and borrowing costs
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in the Income Statement over the period of the borrowings using the effective interest method.
Borrowing costs are expensed, except for costs directly attributable to assets under construction, which are capitalised
during the period of time that is required to complete and prepare the asset for its intended use.
(w) Trade and other payables
Trade and other payables are recognised when the Group becomes obliged to make future payments resulting from
the purchases of goods and services.
Trade and other payables are recognised initially at fair value and, if applicable, subsequently measured at amortised
cost using the effective interest method.
(x) Employee benefits
(i) Wages & salaries, annual leave and sick leave
Liabilities for wages & salaries, including nonmonetary benefits, annual leave and accumulating sick leave expected
to be settled within 12 months of the reporting date are recognised in other payables in respect of employees services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.
(ii) Long service leave
Liabilities for long service leave, which are not expected to be settled within 12 months of the balance date are
measured as the present value of estimated future cash outflows from the Group in respect of services provided by
employees up to the balance date. Consideration is given to expected future wage and salary levels, experience of
employee departures, periods of service and age.
(iii) Defined contribution plan
Contributions to the defined contribution superannuation plans are recognised as employee benefit expenses when
incurred. The Group has no further payment obligations once the contributions have been paid.
(iv) Defined benefit plan
The cost of providing benefits is determined using the Projected Unit Credit Method, with independent actuarial
valuations being carried out annually. Actuarial gains and losses arising from experience adjustments and changes
in actuarial assumptions in excess of the greater of 10% of the value of the plan assets or 10% of the defined benefit
obligation are charged or credited to income over the expected average remaining working lives of employees
participating in the plan. Otherwise, the actuarial gain or loss is not recognised.
Net provision for postemployment benefits in the Statement of Financial Position represents the present value of
the Groups obligations at yearend less market value of plan assets, together with adjustments for unrecognised
actuarial gains and losses and unrecognised past service costs.
Where the calculation results in a net benefit to the Group, the recognised asset is limited to the net total of any
unrecognised actuarial losses and past service costs and the present value of any future refunds from the plan or
reductions in future contributions to the plan.
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(v) Sharebased payments
The Group has operated equitysettled share option and share ownership schemes and a cash settled sharebased
payment scheme. Currently, only one cash settled scheme is active.
The fair value of share options and shares is expensed on a straightline basis over the vesting period with a corresponding increase in equity. The fair value of options granted is measured using a binomial model taking into
consideration factors such as expected dividends and estimates of the number of options that are expected to become exercisable and shares expected to be distributed. Advances from within the Group fund the initial purchase
of shares in the share ownership scheme, which is taken into consideration in arriving at fair value.
For cashsettled schemes, the Group recognises an employee benefit expense over the life of the scheme and remeasures the fair value of the associated liability at each reporting date, with any change in fair value recognised
in profit or loss for the period.
(vi) Profitsharing and bonus plans
The Group recognises a liability and an expense for bonuses and profitsharing based on a formula that takes into
consideration the profit attributable to the companys shareholders after certain adjustments. The Group recognises
a provision where contractually obliged or where there is a past practice that has created a constructive obligation.
(y) Insurance liabilities (Finance business)
The liability for outstanding claims is measured as the central estimate of the present value of expected future payments against claims incurred at the reporting date under general insurance contracts issued by the Finance business,
with an additional risk margin to allow for the inherent uncertainty in the central estimate.
The expected future payments include those in relation to claims reported but not yet paid; claims incurred but not
reported (IBNR), claims incurred but not enough reported (IBNER) and anticipated claims handling costs. Actuarial
calculations were performed to determine the outstanding claims liability. The outstanding claims liability has been
determined using the BornhuetterFergusson (incurred claims) methodology. It has been assumed that future incurred
claims patterns for each group of business will continue to follow observed historic patterns.
(z) Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result of a past event
and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation. Where the effect of the time value of money is material, the amount
recognised is the present value of the estimated expenditures.
(i) Warranty
Provisions for warranty costs are recognised at the date of sale of the relevant products or resultant from specific
issues, at managements best estimate of the expenditure required to settle the Groups liability based on historical
warranty trends. Warranty terms vary, but generally are 12 years parts & labour (dependent on region) with selected
parts (only) covered for periods up to 10 years.
(ii) Redundancy
A redundancy provision is recognised when as part of a publicly announced restructuring plan a reliable estimate
can be made of the direct costs associated with the plan and where it has raised a valid expectation of its implementation for those employees affected.
(iii) Onerous contracts
An onerous contract provision is recognised where the unavoidable costs of meeting the contract obligations exceed
the economic benefits expected to be received under the contract.
(aa) Contributed equity

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction,
net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or options for the
acquisition of a business are included in the cost of the acquisition as part of the purchase consideration.
Treasury stock is used to recognise those shares held and controlled by Fisher & Paykel Employee Share Purchase
Trustee Limited.
(ab) Dividends
Provision is made for the amount of any dividend declared on or before the end of the financial year but not distributed at balance date.
(ac) New and amended accounting Standards adopted by the Group
During the year the Group adopted the following new and amended NZ IFRSs as of 1 April 2011:
NZ IAS 24 (Revised), Related Party Disclosures.
The revised Standard clarifies and simplifies the definition of a related party. The group has disclosed transactions
between its subsidiaries and its associates. However, there has been no impact on any amounts recognised in the
financial statements.
(ad) Standards, interpretations and amendments to published standards that are not yet effective
New standards, amendments and interpretations to existing standards have been published by the International
Accounting Standards Board (IASB) and the External Reporting Board (XRB) that are mandatory for future periods
and which the Group will adopt when they become mandatory. These new standards, amendments and interpretations include:
__
NZ IAS 1 Amendments Presentation of Items of Other Comprehensive Income (effective 1 July 2012)
The amendment requires entities to separate items presented in other comprehensive income into two groups,
based on whether they may be recycled to profit or loss in the future. This will not affect the measurement of
any of the items recognised in the balance sheet or the profit or loss in the current period. The group intends
to adopt the new standard from 1 April 2012.
__
NZ IFRS 9 Financial Instruments: Classification and Measurement (mandatory for annual periods beginning
on or after 1 January 2015). The major changes under the Standard are:
__ NZ IFRS 9 replaces parts of NZ IAS 39 Financial Instruments: Recognition and Measurement that relate
to the classification and measurement of financial instruments. IFRS 9 requires financial assets to be
classified into two measurement categories: amortised cost and fair value.
__ The classification depends on the entities business model for managing its financial instruments and the
contractual cash flow characteristics of the instrument.

__ For financial liabilities the standard retains most of IAS 39 requirements. The main change is that in cases
where the fair value option is taken for financial liabilities, the part of a fair value change due to an entitys
own credit risk is recorded in other comprehensive income rather than in the income statement, unless
this creates an accounting mismatch.
__ The Group will apply NZ IFRS 9 prospectively from 1 April 2015.
__
NZ IFRS 10 Consolidated Financial Statements and NZ IFRS 12 Disclosure of Interests in Other Entities (effective 1 January 2013) NZ IFRS 10 replaces all of the guidance on control and consolidation in NZ IAS 27
Consolidated and Separate Financial Statements, and NZ IFRIC 12 Consolidation Special Purpose Entities.
The core principle that a consolidated entity presents a parent and its subsidiaries as if they are a single economic entity remains unchanged, as do the mechanics of consolidation. However, the standard introduces a
single definition of control that applies to all entities. It focuses on the need to have both power and rights or
exposure to variable returns before control is present. Power is the current ability to direct the activities that
significantly influence returns. Returns must vary and can be positive, negative or both. There is also new guidance on participating and protective rights and on agent/principal relationships. The group does not expect the
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new standard to have a significant impact on its composition.NZ IFRS 12 sets out the required disclosures for
entities reporting under the new standard, NZ IFRS 10. The group does not expect the new standards to have
a significant impact on the Financial Statements.
__
NZ IFRS 13 Fair Value Measurement (effective 1 January 2013) NZ IFRS 13 explains how to measure fair value and
aims to enhance fair value disclosures. The group has yet to determine which, if any, of its current measurement
techniques will have to change as a result of the new guidance. It is therefore not possible to state the impact,
if any, of the new rules on any of the amounts recognised in the financial statements. However, application of
the new standard will impact the type of information disclosed in the notes to the financial statements. The
group does not intend to adopt the new standard before its operative date, which means that it would be first
applied in the annual reporting period ending 31 March 2014.
__
Revised NZ IAS 19 Employee Benefits (effective 1 January 2013) The standard requires the recognition of all
remeasurements of defined benefit liabilities/assets immediately in other comprehensive income (removal of
the socalled corridor method) and the calculation of a net interest expense or income by applying the discount rate to the net defined benefit liability or asset. This replaces the expected return on plan assets that is
currently included in profit or loss. The standard also introduces a number of additional disclosures for defined
benefit liabilities/assets and could affect the timing of the recognition of termination benefits. The amendments
will have to be implemented retrospectively. The group does not expect the new standard to have a significant
impact on the Financial Statements.
__
FRS 44 New Zealand Additional Disclosures and Harmonisation Amendments (effective 1 July 2012) FRS 44
sets out New Zealand specific disclosures for entities that apply NZ IFRSs. These disclosures have been relocated from NZ IFRSs to clarify that these disclosures are additional to those required by IFRSs. Adoption of the
new rules will not affect any of the amounts recognised in the financial statements, but may simplify some of
the groups current disclosures. The Harmonisation Amendments amends various NZ IFRSs for the purpose of
harmonising with the source IFRSs and Australian Accounting Standards. The significant amendments include
introduction of the option to use the indirect method of reporting cash flows that is not currently in NZ IAS 7.
In addition, various disclosure requirements have been deleted. The group intends to adopt FRS 44 and the
Harmonisation Amendments from 1 July 2012.
__
Other interpretations and amendments are unlikely to have an impact on the Groups accounts and have
therefore not been analysed in detail.
3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
(a) Critical accounting estimates and assumptions
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
(i) Impairment of goodwill and other indefinite life intangible assets
The Group annually tests whether goodwill or brands have suffered any impairment, in accordance with the accounting policy stated in Note 2(s). The recoverable amounts of cash generating units for goodwill impairment testing
have been determined based on valueinuse calculations and recoverable amounts for brands have been based on
relieffromroyalty calculations. These calculations require the use of assumptions. Refer Note 17 for details of these
assumptions and the potential impact of changes to these assumptions.
(ii) Impairment of property, plant & equipment

The Group tests for impairment of property, plant & equipment when indicators exist that an impairment may have
occurred. The recoverable amount of property is based on fair market valuation less costs to sell and the recoverable
amount of plant & equipment assets is based on valueinuse calculations requiring the use of assumptions. Refer Note
16 for details of these assumptions and the impact on the performance for the years ended 31 March 2012 and 2011.
(iii) Warranty provision
Provision is made for estimated warranty claims in respect of products sold which are still under warranty at balance date. The majority of these claims are expected to be settled within the next 24 months but this may extend
to 10 years for certain washer components. Management estimates the present value of the provision based on
historical warranty claim information and any recent specific trends that may suggest future claims could differ
from historical amounts.
While changes in managements assumptions would result in different valuations, management considers the effect
of any likely changes would be immaterial to the Groups result or financial position.
As at 31 March 2012, the Group had recognised a warranty provision amounting to $18.3 million (2011 $21.8 million).
(iv) Product support provision
Provision is made for costs to support older products sold in previous years which are outside warranty periods.
The provision recognised is based on estimated costs to address product issues.
As at 31 March 2012 the Group had recognised a product support provision amounting to $4.9 million (2011 nil).
(v) Finance receivables
Allowance is made for losses to Finance receivables where there is objective evidence that impairment has occurred
due to one or more loss events. Management assesses whether these loss events have an impact upon the estimated
future cash flows of the receivables on either an individual (if significant) or collective (if similar characteristics) basis.
As at 31 March 2012, the Group had recognised an allowance for impairment losses amounting to $20.7 million
(2011 $26.7 million).
(vi) Inventories
The cost of inventory is sensitive to currency fluctuations. Management applies a blended exchange rate to account
for purchases covered by forward foreign exchange contracts. As at 31 March 2012, a 10% movement in the blended
rate used is estimated to have a $6.7 million impact on the value of inventory.
The provision for obsolescence has reduced in the year ended 31 March 2012 to $9.5 million (2011 $11.3 million).
Whilst Management are satisfied the provision is fairly stated, this involves significant judgement on forecast usage
of materials.
(vii) Income taxes
The Group is subject to income taxes in New Zealand and jurisdictions where it has foreign operations. Significant
judgement is required in determining the worldwide provision for income taxes. There are certain transactions and
calculations undertaken during the ordinary course of business for which the ultimate tax determination may be
uncertain. Where the final tax outcome of these matters is different from the amounts that were initially recorded,
such differences will impact the current and deferred tax provisions in the period in which such determination is made.
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3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)

As at 31 March 2012, the Group had recognised $49.2 million net deferred tax assets in excess of deferred tax liabilities. The Group has assumed continuity of shareholdings as required by New Zealand and USA tax legislation
and therefore has included all available tax loss carry forwards and other deductible temporary differences in the
computation of deferred tax assets except for $0.6 million of New Zealand operating losses and unrecognized US
tax losses and credits totalling $24.0 million.
(viii) Employment benefits
The Group provides long service leave benefits to employees in certain countries and calculation of the provision for
the unvested component of these obligations is based on assumptions about future salary/wage increases, promotion rates and employee turnover. The discount rates used to calculate the present value of these obligations are
based on 10 year Government bond yields as no deep market is deemed to exist for high quality corporate bonds
in these countries.
While changes in managements assumptions would result in different liabilities, management considers the effect
As at 31 March 2012, the Group had recognised a provision for unvested long service leave amounting to $9.0 million (2011 $8.2 million).
(ix) Restructuring charges
Restructuring charges comprise estimated costs for associated redundancies and relocation costs. These charges
are calculated based on detailed plans that are expected to improve the Groups cost structure and productivity. The
outcomes of similar historical restructuring plans are used as a guideline to minimise any uncertainties arising. There
were no restructuring plans announced during the year ended 31 March 2012 (2011 $0.9 million).
(x) Litigation costs
Fisher & Paykel Financial Services Limited is currently involved in legal proceedings with a software supplier. The
case was heard in the High Court at Auckland, New Zealand in late 2011 and a judgement on the issue is expected
this year (refer Note 8).
(b) Critical judgements in applying the entitys accounting policies
Special purpose entity
The activities of Retail Financial Services Limited are funded through a master trust securitisation structure established
on 8 May 2006. This structure allows for the creation of multiple, separate, standalone trusts. The first trust created
under the master trust structure was the RFS Trust 20061 (the Trust). Fisher & Paykel Financial Services Limited
is the residual income and capital beneficiary of the Trust and therefore the financial statements of the Trust have
been consolidated in the Groups financial statements. Refer Note 33.
4. FINANCIAL RISK MANAGEMENT APPLIANCES BUSINESS & PARENT

The Groups business activities expose it to a variety of financial risks, namely market risk (including currency risk,
interest rate risk and commodity risk), credit risk and liquidity risk. The overall risk management approach focuses on
the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance
of the business. Derivative financial instruments such as foreign exchange contracts, foreign exchange options and
interest rate swaps are used to hedge certain risk exposures.
The Board of Directors has approved policy guidelines for the Appliances business and Parent that identify, evaluate
and authorise various financial instruments to hedge financial risks.
The principal financial risks and hedging policies for the Appliances business and Parent are shown below.
(a) Market risk

(i) Foreign exchange risk
The Appliances business operates internationally and is exposed to foreign exchange risk arising from both transacting in foreign currencies and from translation of the net assets of overseas subsidiaries into New Zealand dollars
for consolidation purposes.
The principal currency exposures are the United States dollar cross rates with the Australian dollar and Thai baht.
The Appliances business monitors current and anticipated future foreign currency operating cash flows to determine
net exposures, which are hedged with forward exchange contracts within prescribed bands for up to a maximum
period of 12 months (24 months by exception). Major capital expenditure in foreign currency is hedged with forward
foreign exchange contracts. The Groups exposure to translation risk of foreign currency denominated net assets
is not hedged.
Notional principal of foreign exchange agreements outstanding at 31 March 2012 were as follows:
__
Purchase commitments forward exchange contracts $127.7 million (2011 $280.0 million)
__
Sale commitments forward exchange contracts $40.4 million (2011 $122.9 million)
(ii) Interest rate risk

Debt funding for the Appliances business is subject to floating interest rates which can impact on the segments
financial result. When considered appropriate, in accordance with the policy guidelines, the Appliances business
enters into interest rate swaps and caps to manage its exposure to such fluctuations. These financial instruments
are subject to the risk that interest rates may change subsequent to implementation.
Notional principal or contract amounts outstanding on interest rate swaps and caps at 31 March 2012 were $65.7
million (2011 $80.7 million). The interest rate contracts in place at the time of the debt restructuring in March 2009,
were deemed to be ineffective and are fair valued through profit or loss. Interest rate contracts entered into subsequent to the restructuring are deemed effective and fair valued through the cash flow hedge reserve.
(iii) Commodity risk
Pricing for some of the Appliances business raw material purchases is subject to fluctuations in commodity indices for
base metals and crude oil. This is routinely managed through agreements with suppliers however, when considered
appropriate and in accordance with the policy guidelines, the Appliances business enters into commodity derivatives
to manage its exposure to such fluctuations.
Appliances has commodity derivatives as at 31 March 2012 these were less than $1,000 (2011 $Nil).
(iv) Summarised sensitivity analysis
The following table summarises the sensitivity of the Appliances business financial assets and financial liabilities (with
all other variables held constant) to interest rate risk and foreign exchange risk. The sensitivity analyses represent
the range of movements for each type of risk that are considered reasonably possible as at balance date. The risk
profile will vary throughout the financial year.
Figures disclosed within profit in the sensitivity analyses represent the after tax impact of the variable movements.
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4. FINANCIAL RISK MANAGEMENT APPLIANCES BUSINESS & PARENT (CONTINUED)

APPLIANCES BUSINESS
INTEREST RATE RISK

1%
Carrying
FOREIGN EXCHANGE RISK
+2%
15%
+15%
Profit
Equity
Profit
Equity
Profit
Equity
Profit
Equity
$000
$000
$000
$000
$000
$000
$000
$000
$000
22,273
(137)
(137)
275
275
3,624
3,624
(2,679)
(2,679)
108,456
9,344
9,344
(6,906)
(6,906)
amount
31 March 2012
Financial assets
Trade receivables
2,361
2,897
8,417
(2,141)
(6,221)
103
(4)
30
38
(9)
(9)
Borrowings
(86,810)
707
707
(1,414)
(1,414)
(7,322)
(7,322)
5,412
5,412
Trade creditors
(96,560)
(9,685)
(9,685)
7,159
7,159
(1,736)
7,761
8,844
(5,736)
(6,537)
(1,211)
(183)
(183)
353
353
178
178
(132)
(132)
387
383
(756)
(748)
6,788
13,391
(5,016)
(9,897)
Foreign exchange derivatives

Interest rate derivatives
Financial liabilities

Total increase/ (decrease)
APPLIANCES BUSINESS
INTEREST RATE RISK

1%
+2%
15%
+15%
Profit
Equity
Profit
Equity
Profit
Equity
Profit
Equity
$000
$000
$000
$000
$000
$000
$000
$000
$000
21,375
(135)
(135)
270
270
3,678
3,678
(2,719)
(2,719)
Trade receivables
128,117
11,902
11,902
(8,797)
(8,797)
2,657
(1,887)
(1,635)
1,394
1,208
Carrying
amount
31 March 2011
Financial assets

Borrowings
(121,557)
910
910
(1,819)
(1,819)
(11,051)
(11,051)
8,168
8,168
Trade creditors
(99,141)
(9,057)
(9,057)
6,694
6,694
Other creditors
(10,934)
(1,343)
(1,343)
993
993
(20,213)
3,000
22,529
(886)
(12,663)
(3,334)
(196)
(196)
371
371
412
412
(305)
(305)
579
579
(1,178)
(1,178)
(4,346)
15,435
4,542
(7,421)

PARENT
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INTEREST RATE RISK

1%
Carrying
+2%
15%
+15%
Profit
Equity
Profit
Equity
Profit
Equity
Profit
Equity
$000
$000
$000
$000
$000
$000
$000
$000
amount
31 March 2012
$000
Financial assets
1
Other current assets
27
Intergroup advances
637,585
PARENT
INTEREST RATE RISK

1%
Carrying
+2%
15%
+15%
Profit
Equity
Profit
Equity
Profit
Equity
Profit
Equity
$000
$000
$000
$000
$000
$000
$000
$000
amount
31 March 2011
$000
Financial assets
1
Other current assets
21
Intergroup advances
637,620
(b) Credit risk

The Appliances business incurs credit risk with trade receivables and has a credit policy which is used to manage
exposure to this credit risk. As part of this policy, limits are reviewed on a regular basis. In addition, risk is selectively
mitigated through trade indemnity policies and letters of credit where an unacceptably high credit risk is perceived
to exist.
Foreign currency forward exchange contracts and interest rate swaps have been entered into with trading banks.
The Appliances business exposure to credit risk from these financial instruments is limited because it does not
expect nonperformance of the obligations contained therein due to the credit rating of the financial institutions
concerned. The Appliances business does not require collateral or other security to support financial instruments.
Further disclosure on Trade receivables is reported in Note 11.
(i) Concentrations of credit exposure
As at 31 March 2012, the Appliances business had trade receivables from certain major customers of $29.4 million
(2011 $25.0 million). However, this largely comprises Australian receivables and all Australian receivables balances
are covered by trade indemnity insurance, the main terms of which include:
__
maximum sum insured of A$30 million
__
insured percentage of 90% subject to A$5,000 excess
__
discretionary credit limit up to A$300,000
__
maximum payment terms of 60 days from the end of the month following delivery of goods
__
Excluding the major customers above, the Appliances business had no other significant concentration of credit
exposure.
(ii) Geographic concentrations of trade receivables

The Appliances business maximum exposure to credit risk for trade receivables by geographic region is as follows:
P92

31 March
31 March
2012
2011
$000
$000
New Zealand
20,510
17,456
Australia
40,774
51,699
16,817
31,144
23,532
18,167
North America
Europe
6,823
9,651
108,456
128,117
Less than
Between
Between
1 year
1 and 2
2 and 5
years
years
$000
$000
$000
Rest of World
(c) Liquidity risk

Prudent liquidity risk management requires maintaining sufficient cash to meet contractual obligations, the availability
of funding through an adequate amount of committed credit facilities and the ability to closeout market positions.
Pursuant to its banking facilities, Management is required to maintain sufficient headroom to meet facility requirements.
The Board of Directors approves all new loans and funding facilities and is updated regularly on liquidity risk.
The table below analyses the Appliances business financial liabilities into relevant maturity groupings based on the
remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the
contractual undiscounted cash flows, except for interest rate swaps.
On Call
31 March 2012
$000
Borrowings
10,103
13,764
79,440
Trade creditors
96,560
Finance lease liabilities
Interest rate swaps *
477
734
31 March 2011
Borrowings
128,151
Trade creditors
99,141
Finance lease liabilities
17
Interest rate swaps *
2,353
933
49
* The amounts expected to be payable in relation to the interest rate swaps have been estimated using forward interest rates applicable at the reporting date.
P93
The table below analyses the Appliances business derivative financial instruments that will be settled on a gross
basis into relevant maturity groupings based on the remaining period to the contractual maturity date at balance
date. The amounts disclosed in the table are the contractual undiscounted cash flows. They are expected to occur
and affect profit or loss at various dates between balance date and the following 24 months.
Less than
Between
1 year
1 and 2
years
31 March 2012
$000
$000
168,719
168,094
Forward foreign exchange contracts cash flow hedges

inflow
outflow
Forward foreign exchange contracts cash flow hedges
inflow
378,718
6,155
outflow
399,171
6,557
(d) Fair value estimation

The fair value of financial instruments are estimated using discounted cash flows. Fair value of interest rate swaps
is calculated as the present value of the estimated future cash flows. The fair value of forward exchange contracts
is determined using forward exchange market rates at balance date.
The carrying value less impairment provision of trade receivables and payables is a reasonable approximation of
their fair values due to the shortterm nature of trade receivables. The fair value of financial liabilities for disclosure
purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is
available to the Appliances business for similar financial instruments.
Unless otherwise stated, all other carrying amounts are assumed to equal or approximate fair value.
Financial instruments are measured in the Statement of Financial Position at fair value, which requires disclosure of
fair value measurements by level of the following fair value measurement hierarchy:
__
Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).
__
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(that is, as prices) or indirectly (that is, derived from prices) (Level 2).
__
Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).
P94

Level 1
Level 2
Level 3
Total
balance
31 March 2012
$000
$000
$000
$000
Assets
Derivative financial instruments held for trading
934
934
Derivative financial instruments cash flow hedges
1,530
1,530
Total assets
2,464
2,464
2,823
2,823
124
124
Total liabilities
2,947
2,947
Level 1
Level 2
Level 3
Liabilities
Total
balance
31 March 2011
$000
$000
$000
$000
1,205
1,205
1,452
1,452
Total assets
2,657
2,657
Assets
Liabilities
6,193
6,193
17,355
17,355
Total liabilities
23,548
23,548
There are no financial instruments carried at fair value in the Parent entity.
The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting
date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer,
broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arms length basis. The quoted market price used for financial assets held by the
Group is the current bid price. These instruments are included in Level 1.
The fair value of financial instruments that are not traded in an active market (for example, overthecounter derivatives) is determined by using valuation techniques. These valuation techniques maximise the use of observable
market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs
required to fair value an instrument are observable, the instrument is included in Level 2.
If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
Specific valuation techniques used to value financial instruments include:
__
Quoted market prices or dealer quotes for similar instruments.
__
The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based
on observable yield curves.
__
The fair value of forward foreign exchange contracts is determined using forward exchange rates at balance
date, with the resulting value discounted back to present value
__
Other techniques, such as discounted cash flow analysis, are used to determine fair value for other financial
instruments.
Note that all of the resulting fair value estimates for the Appliances business are included in Level 2.
P95
(e) Financial instruments by category

ASSETS AS PER STATEMENT OF FINANCIAL POSITION
Fair value
Derivatives
Loans and
through
used for
receivables
profit or
hedging
Total
lossheld
for trading
$000
$000
$000
$000
22,273
22,273
Trade receivables
108,456
108,456
934
1,530
2,464
934
1,530
130,729
133,193
21,375
21,375
Trade receivables
128,117
128,117
1,205
1,452
2,657
1,205
1,452
149,492
152,149
Intergroup advances
637,620
637,620
637,621
637,621
Intergroup advances
637,585
637,585
637,586
637,586
Derivatives Measured at
Total
Appliances business
31 March 2012

31 March 2011

Parent
31 March 2012
31 March 2011
LIABILITIES AS PER STATEMENT OF FINANCIAL POSITION
Fair value
through
used for
amortised
profit or
hedging
cost
$000
$000
$000
lossheld
for trading
$000
Appliances business
31 March 2012
Borrowings
Trade creditors
Finance leases
86,810
86,810
96,560
96,560
2,823
124
2,947
2,823
124
183,370
186,317
121,557
121,557
31 March 2011
Borrowings
Trade creditors
Finance leases
99,141
99,141
6,193
17,355
23,548
17
17
6,193
17,355
220,715
224,263
P96
5. FINANCIAL RISK MANAGEMENT FINANCE BUSINESS

The Finance business activities expose it to a variety of financial risks including credit risk, liquidity risk and interest
rate risk. The Finance business has a separate Board of Directors, which has appointed the following committees and
other specialists to manage these risks and report key outcomes to the Board in accordance with approved policy:
Asset & Liability Committee
Comprises the Managing Director, Chief Operating Officer, Chief Financial Officer (Chair) and Treasury & Funding
Manager. The Committee is responsible for managing interest rate risk, liquidity risk and Statement of Financial
Position and capital structure. The Committees activities are governed by a formal charter to ensure all treasury
risk management policies are followed.
Pricing, Marketing & Operations Committee
Comprises the Managing Director, Chief Operating Officer (Chair) and Chief Financial Officer. Its principal responsibility is to establish and review interest rates on money advanced to customers and productivity, performance and
compliance of Finance business operations.
Credit Committee
Comprises the Managing Director, Chief Operating Officer, Chief Financial Officer and Chief Risk Officer (Chair). The
committees principal responsibility is to oversee all aspects of credit risk assessment and management and operates
within formal credit policies and guidelines that ensure any credit risk incurred falls within acceptable parameters.
Insurance Committee
Comprises the Managing Director, Chief Operating Officer (Chair), Chief Financial Officer and Marketing Manager.
The committees principal responsibility is to oversee all aspects of the insurance business; including approving
and recommending strategies, monthly review of risks and returns and the delivery of and compliance to current
prudential and regulatory requirements for the insurance sector.
Information & Support Services Steering Committee
Comprises the Management Director, the Chief Operating Officer, Chief Financial Officer and Chief Information &
Support Services Officer (Chair). The committee is responsible for approving strategy, setting policy, monitoring risk
and reviewing work in progress across information services, human resources, process improvement and procurement.
Treasury
The Treasury functions principal responsibility is the daytoday management of the liability side of the statement
of financial position, especially focusing on maintaining the appropriate level and mix of funding sources and ensuring that the Finance business has sufficient liquidity for its requirements. In addition, Treasury is responsible for:
__
execution of interest rate risk management strategies including the use of derivative financial instruments in
accordance with formal treasury risk management policies
__
ensuring compliance with all internal and external measures, covenants and ratios.
(a) Interest rate risk

Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. Fair value interest rate risk is the risk that the value of a financial instrument will
fluctuate because of changes in market interest rates.
The Finance business is exposed to fluctuations in the prevailing levels of market interest rates on both fair value
and cash flow risks relating to its financial instruments. Interest margins may increase or decrease, as the case may
be, as a result of changes in market interest rates.
(i) Interest rate risk management process
The Asset & Liability Committee is responsible for managing interest rate risk in accordance with its Charter and
treasury risk management policy. A Pricing Committee is responsible for establishing and reviewing interest rates
on money lent.
The Finance business manages interest rate risk through:
__
monitoring the maturity profile of assets and liabilities and seeking, where appropriate, to match the date at
which these mature and reprice
__
monitoring market interest rates and reviewing the impact of these on interest rate risk exposure
__
economically hedging a portion of any residual risk exposure using financial derivative instruments. This activity
is undertaken in accordance with treasury risk management policies approved by the Finance business Board
of Directors
__
reviewing lending rates from time to time
(ii) Concentrations of interest rate exposure

The Finance business borrowings are generally short term in nature to match the profile of the maturing assets.
Borrowings issued at variable rates expose the Finance business to cash flow interest rate risk. Borrowings issued
at fixed rates expose the Finance business to fair value interest rate risk.
(iii) Repricing schedule
The Finance business has a policy which establishes risk control limits for the net repricing gap. Interest rate exposure
is monitored on a regular basis and reported to and reviewed monthly by the Asset and Liability Committee and the
Finance business Board of Directors.
The table below summarises the Finance business exposure to interest rate risks. It includes the Finance business
financial instruments at carrying amounts, categorised by the earlier of their contractual repricing or expected
maturity dates.
P97
P98
5. FINANCIAL RISK MANAGEMENT FINANCE BUSINESS (CONTINUED)

Weighted
0 to 6
7 to 12
13 to 24
25 to 60
Over 60
Non
average
months
months
months
months
months
interest
effective
Total
bearing
interest
rate
31 March 2012
$000
$000
$000
$000
$000
$000
$000
2.5
87,074
2.8
87,074
48
Finance receivables
18.1
495,111
52
51,342
37,972
10,095
12
594,532
Other financial assets
0.5
Financial assets
556
2,817
3,373
582,189
51,342
38,020
10,651
12
2,817
685,031
245,507
Finance borrowings
Bank loans
4.0
245,507
Debentures
7.4
50,331
39,930
18,361
2,740
111,362
Notes
3.5
194,097
194,097
3.9
213
455
949
1,099
2,716
10,972
10,972
490,148
40,385
19,310
3,839
10,972
564,654
92,041
10,957
18,710
6,812
12
(8,155)
120,377
Total
Other financial liabilities

Net effective interest rate gap
Weighted
0 to 6
7 to 12
13 to 24
25 to 60
Over 60
Non
average
months
months
months
months
months
interest
effective
bearing
interest
rate
31 March 2011
$000
$000
$000
$000
$000
$000
$000
3.6
92,154
92,154
2.8
18.0
466,733
43,229
74,400
17,164
69
601,595
Financial assets
Finance receivables
0.7
1,044
2,682
3,726
558,887
44,273
74,401
17,164
69
2,682
697,476
224,837
Finance borrowings
Bank loans
4.2
224,837
Debentures
7.0
79,422
39,568
17,232
4,190
140,412
Notes
4.1
134,805
134,805
Committed liquidity facilities
4.0
73,861
73,861
4.0
170
432
1,325
1,225
3,152
5,143
5,143
513,095
40,000
18,557
5,415
5,143
582,210
45,792
4,273
55,844
11,749
69
(2,461)
115,266

Net effective interest rate gap
P99
(iv) Summarised sensitivity analysis

The following table summarises the sensitivity of the Finance business financial assets and financial liabilities to
interest rate risk in terms of the effect on posttax profit and equity. The analysis is based on the assumption that all
other variables remain constant and incorporates the effect a /+ 100 basis point movement in interest rates has on
the financial assets and financial liabilities held at balance date. The sensitivity analyses below represent the range
of movements for each type of risk that are considered reasonably possible as at balance date. The risk profile will
vary throughout the financial year.
INTEREST RATE RISK
1%
Carrying
+1%
Profit
Equity
Profit
Equity
$000
$000
$000
$000
amount
31 March 2012
$000
Financial assets
Finance receivables
87,074
(628)
(628)
628
628
594,532
(4,282)
(4,282)
4,282
4,282
52
(243)
(285)
239
279
3,373
(4)
(4)
(550,966)
3,958
3,958
(3,958)
(3,958)
(2,716)
(527)
(1,548)
517
1,508
(10,972)
(1,726)
(2,789)
1,712
2,743
Finance borrowings
INTEREST RATE RISK

1%
Carrying
+1%
Profit
Equity
Profit
Equity
$000
$000
$000
$000
amount
31 March 2011
$000
Financial assets
Finance receivables
92,154
(648)
(648)
648
648
601,595
(4,211)
(4,211)
4,211
4,211
3,726
Finance borrowings
(573,915)
4,010
4,010
(4,010)
(4,010)
(3,153)
(778)
(2,254)
763
2,807
(5,143)
(1,627)
(3,103)
1,612
3,656

(b) Credit risk
The Finance business is exposed to credit risk, which is the risk that a counterparty will cause a financial loss for the
Finance Business by failing to discharge an obligation. Credit risk arises principally on advances made to customers
and deposits held with other entities and also in offstatement of financial position items such as loan commitments.
(i) Credit risk management process
A Credit Committee oversees all aspects of credit risk assessment and management and operates within credit policies and guidelines approved by the Finance business Board of Directors. These policies ensure that any credit risk
incurred falls within acceptable parameters.
P100

The Finance business manages credit risk in a number of ways:
__
In consumer lending, robust credit processes are employed to originate new loans to customers. These processes
incorporate credit scorecards, credit checks, fraud detection software, business rules and review of customer
credit history to assess a customers credit worthiness. Wherever appropriate, a charge will be taken by way of
reservation of title over the asset financed, except for personal loans, where advances are generally unsecured.
The personal loans business ceased originating new loans in January 2006. Additionally where appropriate the
Finance business registers a Purchase Money Security Interest (PMSI) charge over each customer and all details
of the asset used as security on the Personal Property Securities Register.
__
In commercial lending, the integrity and financial standing of approved borrowers is relied upon. All equipment
finance and rental & leasing contracts are assessed in accordance with a range of credit criteria and the amount
of each advance. Criteria include credit checks, trade references and financial account analysis. These contracts
are secured over the goods financed and guarantees are requested from business proprietors in certain circumstances. Assets financed include machinery and plant & equipment but do not include residential or commercial
property. Additionally where appropriate the Finance business registers a PMSI charge over each customer and
all equipment used as security on the Personal Property Securities Register.
__
In bulk funding, security is a general security interest charging all present and after acquired personal property
and a specific security interest (first mortgage) over the Finance receivables sold to Smithcorp Finance Limited.
In addition, several factors are taken into account in determining the amount of money advanced, including
average yield and arrears levels. A general security reserve is also maintained to ensure a margin exists between
the amounts advanced and the value of the underlying Finance receivables.
__
Interest rate instruments have been entered into with trading banks. The Finance business exposure to credit
risk from these financial instruments is limited because it does not expect nonperformance of the obligations
contained therein due to the credit rating of the financial institutions concerned. The Finance business does
not require collateral or other security to support these financial instruments.
(ii) Concentrations of Credit Exposure

As at 31 March 2012, the Finance business had advanced $74.5 million to Smithcorp Finance Limited, a bulk finance
merchant (2011 $75.4 million). Security is a general security interest charging all present and after acquired property
and a specific interest over finance receivables. These receivables, taken as individual finance receivable agreements,
are largely low value advances to retail customers.
Excluding Smithcorp Finance Limited, the Finance business had no exposure to retailers, commercial accounts or
individual receivable agreements that exceeded 10% of Finance business equity (2011 Nil).
Maximum exposure to credit risk before collateral held or other credit enhancements is shown in the table below:
31 March
31 March
2012
2011
$000
$000
87,074
92,154
Credit exposures relating to onstatement of financial position assets:

Finance receivables
52
594,532
601,595
3,373
3,726
Credit exposures relating to offstatement of financial position items:

Undrawn lending commitments*
1,819,864
1,775,323
2,504,895
2,472,799
*Undrawn lending commitments include unutilised Q Card, Farmers Finance Card and fixed instalment limits, which can be unconditionally cancelled at any time.
The above table represents a maximum credit risk exposure at 31 March 2012, without taking into account any collateral, other credit enhancements attached or the cancellation of undrawn lending commitments. For onstatement
of financial position assets, the exposures set out above are based on net carrying amounts as reported in the
P101
Statement of Financial Position.

Further details on Finance receivables and impairment are disclosed in Note 12.
(iii) Geographic Concentrations of Finance Receivables
The table below details the geographic split of Finance receivables:
31 March
31 March
2012
2011
$000
$000
Upper North Island
208,904
212,691
Central North Island
138,832
138,386
Lower North Island

South Island
Upper North Island comprises the Auckland and Northland regions. Lower North Island comprises the Wellington
and Manawatu regions.
(c) Liquidity risk
Liquidity risk is the risk that the Finance business is unable to meet its payment obligations associated with its
financial liabilities when they fall due. It includes the risk that the Finance business may have insufficient liquid
funds or may not be able to raise sufficient funds at short notice to meet its payment obligations associated with
financial liabilities when they fall due. This situation can arise if there is a significant mismatch of its financial assets
and financial liabilities.
(i) Liquidity risk management process
The Finance business operates an Asset & Liability Committee that oversees all aspects of statement of financial
position risk. This Committee has a formal charter, which outlines its role and responsibilities. All treasury related
activity must comply with treasury risk management policies approved by the Finance business Board of Directors.
Liquidity risk is managed through:
__
day to day funding requirements and future cash flows are monitored to ensure requirements can be met. This
includes replenishment of funds as they mature or are borrowed by customers. The Finance business maintains
an active presence in local money markets to enable this to happen
__
regularly forecasting future cash flows to assess maturity mismatches between financial assets and financial
liabilities in advance
__
not relying on one funding source, but maintaining a diverse and stable funding base
__
maintaining strong bank relationships and committed bank credit balances
__
monitoring statement of financial position liquidity ratios against internal and external requirements
The Asset & Liability Committee also monitors the level and type of undrawn lending commitments against committed credit facilities to ensure there is sufficient capacity.
The table below analyses the Finance business financial assets and financial liabilities and net settled derivative
financial instruments into relevant maturity groupings based on the remaining period at the reporting date to the
contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows, except
for derivative financial instruments.
75,969
77,049
170,827
173,469
594,532
601,595
P102

Call
31 March 2012
$000
0 to 6
7 to 12
13 to 24
25 to 60
Over 60
months
months
months
months
months
Total
$000
$000
$000
$000
$000
$000
87,074
Financial assets
87,074
Derivative financial instruments*
25
60
17
110
Finance receivables
223,979
148,718
171,624
201,225
40,920
786,466
2,830
15
30
545
3,420
87,074
226,817
148,758
171,714
201,787
40,920
877,070
256,267
Finance borrowings
Bank loans
4,931
142,016
4,205
105,115
Debentures
5,478
47,894
41,440
20,706
3,043
118,561
Notes
195,000
195,000
1,145
728
644
174
2,691
10,972
10,972
5,478
259,942
184,184
25,555
108,332
583,491
Total
Call
31 March 2011
0 to 6
7 to 12
13 to 24
25 to 60
Over 60
months
months
months
months
months
$000
$000
$000
$000
$000
$000
$000
92,411
Financial assets
23,653
68,758
(1)
Finance receivables
225,663
151,043
174,366
205,551
53,344
809,967
2,537
1,030
3,567
23,653
296,957
152,073
174,367
205,551
53,344
905,945
246,451
Finance borrowings
Bank loans
4,761
4,735
112,310
124,645
Debentures
8,288
74,478
41,012
19,516
4,630
147,924
Notes
135,500
135,500
1,840
73,728
75,568
1,491
1,242
708
(172)
3,269
4,968
4,968
8,288
223,038
120,717
132,534
129,103
613,680
* The amounts expected to be receivable/payable in relation to the derivative financial instruments have been estimated using forward interest rates applicable at the reporting date.
(d) Fair value estimation

The fair value of financial instruments that are not traded in an active market is determined using generally accepted
valuation techniques. The Finance business uses a variety of methods and makes assumptions that are based on
market conditions existing at each balance date. Quoted market prices or dealer quotes for similar instruments are
used for longterm debt instruments held. Other techniques, such as estimated discounted cash flows, are used to
determine fair value for the remaining financial instruments. The fair value of interest rate swaps is calculated as the
present value of the estimated future cash flows.
The fair value of financial liabilities and financial assets for disclosure purposes is estimated by discounting the future
contractual cash flows at the current market interest rate that is available to the Finance business for similar financial
instruments. For shortterm financial assets and liabilities, their carrying amount is a reasonable approximation of
their fair values.
P103
Where present value techniques are used to value future cash flows deriving from interest rate derivative contracts, the Finance
business uses an MS Excel based valuation model licensed from a reputable third party vendor. Market data used for valuation
purposes (i.e. interest rate yield curves) are provided by independent third party data providers where possible. In addition,
monthend derivative portfolio valuations are obtained from all derivative counterparties for comparison with internal valuations.
Financial instruments which are measured in the Statement of Financial Position at fair value, require disclosure of fair value
measurements by level of the following fair value measurement hierarchy:
__
Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).
__
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is,
as prices) or indirectly (that is, derived from prices) (Level 2)
__
Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).
The following table presents the Groups assets and liabilities that are measured at fair value.
Level 1
Level 2
Level 3
Total
balance
31 March 2012
$000
$000
$000
$000
Deposits
16,950
16,950
33
33
Assets
12
12
Government stock
556
556
Total assets
556
17,002
17,558
2,035
2,035
641
641
Derivative financial instruments fair value hedges
40
40
Total liabilities
2,716
2,716
Level 1
Level 2
Level 3
Liabilities
Total
balance
31 March 2011
$000
$000
$000
$000
Deposits
20,123
20,123
Government stock
1,044
1,044
Total assets
1,044
20,124
21,168
1,881
1,881
991
991
281
281
Total liabilities
3,153
3,153
Assets
Liabilities
The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group,
pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arms
length basis. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are
included in Level 1. Government stock has been included in Level 1.
The fair value of financial instruments that are not traded in an active market (for example, overthecounter derivatives) is
determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is
available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are
observable, the instrument is included in Level 2.
P104

If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
Specific valuation techniques used to value financial instruments include:
__
Quoted market prices or dealer quotes for similar instruments.
__
The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based
on observable yield curves.
__
Other techniques, such as discounted cash flow analysis, are used to determine fair value for the remaining
financial instruments.
The following table presents the changes in Level 3 instruments.

Bulk
finance
receivables
31 March 2012
$000
Balance at the beginning of the year
Gains & losses recognised in the Income Statement
Interest & similar charges
Repayments
Balance at the end of the year
Bulk
finance
receivables
31 March 2011
$000

Gains & losses recognised in the Income Statement
Interest & similar charges
Repayments
11,292
(17)
148
(11,423)
As at 31 March 2012, all bulk finance receivables were measured at amortised cost.
Total loss for the year ended 31 March 2012 included in the Income Statement (included within Finance business
revenue) for assets held at 31 March 2012 was $nil (2011 $nil).
P105
(e) Financial instruments by category

ASSETS AS PER STATEMENT OF FINANCIAL POSITION
Fair value
Fair value
Loans and
Derivatives
through
through
receivables
used for
profit or
profit or
loss
loss held
designated
for trading
$000
$000
$000
Total
hedging
$000
$000
87,074
31 March 2012
16,950
70,124
33
19
52
Finance receivables
594,532
594,532
Cash and cash equivalents
556
2,816
3,372
17,506
33
667,472
19
685,030
92,154
31 March 2011
20,123
72,031
Finance receivables
601,595
601,595
1,044
2,682
3,726
21,167
676,308
697,476
Derivatives Measured at
Total
LIABILITIES AS PER STATEMENT OF FINANCIAL POSITION
Fair value
through
used for
amortised
profit or
hedging
cost
$000
$000
$000
550,966
loss held
for trading
$000
31 March 2012
Borrowings
550,966
641
2,075
2,716
10,972
10,972
641
2,075
561,938
564,654
573,915
31 March 2011
Borrowings
573,915
991
2,162
3,153
5,143
5,143
991
2,162
579,058
582,211
P106
6 SEGMENT INFORMATION
Chief Operating Decision Maker
The Chief Operating Decision Maker has been identified as the Board of Directors together with the Executives of
the Appliances and Finance businesses, who review the Groups internal reporting in order to assess performance
and allocate resources. Management has determined the operating segments based on these reports.
Reportable segments
The Appliances business reportable segments are based primarily on the nature of activities undertaken (factory
operations and sales/customer service companies) and are then split by geographic location. Factory operations
include sites that manufacture goods for both the Group and external customers. Sales & service includes sales &
distribution operations and also customer service operations.
The Finance business is considered as one reportable segment.
Other segment information
Performance of operating segments is assessed based on a measure of earnings before interest and taxation (operating profit or loss). This excludes interest costs associated with core funding and other overheads that are held
at Group level and cannot be allocated.
Intersegment revenue is recognised on the basis of arms length transactions and reflects returns required for taxation transfer pricing purposes where applicable.
Other information provided, except as noted below, is measured in a manner consistent with that in the financial
statements.
Significant oneoff costs have been excluded from the segment disclosures to reflect underlying segment operating
performance.
Segment total assets exclude certain elements of deferred tax that are associated with adjustments held for consolidation purposes, derivative financial instruments and noncurrent assets held for sale that are managed on a central
basis and fair value adjustments held on consolidation. These form part of the reconciliation to total assets in the
Statement of Financial Position.
P107
SEGMENT REVENUE & PROFIT ANALYSIS

31 MARCH 2012
31 MARCH 2011
Revenue
Inter-
Total
Operating
Revenue
Inter-
Total
Operating
from
segment
segment
profit
from
segment
segment
profit
external
revenue
revenue
external
revenue
revenue
$000
$000
$000
$000
$000
$000
$000
4,701
114,287
118,988
3,173
12,220
135,550
147,770
19,736
(1,629)
customers
customers
$000
Factory operations
New Zealand
Australia
North America
Thailand
Europe
28,855
83,546
112,401
(12,838)
33,071
105,614
138,685
(7,758)
224,219
224,219
36,738
225,338
225,338
43,173
97,044
34,625
131,669
8,833
106,283
44,687
150,970
4,484
130,600
456,677
587,277
35,906
151,574
511,189
662,763
58,006
Sales & customer service

New Zealand
162,295
7,343
169,638
13,655
162,825
7,801
170,626
8,462
Australia
412,143
2,121
414,264
49,622
423,263
3,145
426,408
40,086
North America
135,653
135,653
916
172,863
172,863
(9,802)
Europe
17,966
17,966
307
18,270
18,270
118
Rest of World
32,792
32,792
1,637
36,258
36,258
112
760,849
9,464
770,313
66,137
813,479
10,946
824,425
38,976
Unallocated overheads
(65,150)
(59,122)
Currency Fluctuations
(25,611)
(14,185)
One-off expenses*
(3,935)
(1,382)
One-off income*
Appliances business
Finance business
Total
6,508
891,449
466,141
1,357,590
7,347
965,053
522,135
1,487,188
28,801
139,719
139,719
31,040
145,289
145,289
34,722
1,031,168
466,141
1,497,309
38,387
1,110,342
522,135
1,632,477
63,523
SEGMENT REVENUE RECONCILIATION TO THE INCOME STATEMENT

$000
$000
Total segment revenue
1,497,309
1,632,477
Inter-segment revenue elimination
(466,141)
(522,135)
Interest income
2,408
1,484
Other miscellaneous income
4,382
9,117
1,037,958
1,120,943
Total revenue & other income as per the Income Statement
* Refer Notes 8 & 14
P108
6 SEGMENT INFORMATION (CONTINUED)

SEGMENT TOTAL ASSETS
31 March
31 March
2012
2011
$000
$000
16,661
22,209
Factory operations
New Zealand
Australia
North America
Thailand
Europe
111,913
127,344
114,474
101,177
78,778
92,157
321,826
342,887

New Zealand
Australia
44,267
52,140
103,930
130,667
35,464
45,433
Europe
7,638
8,072
Rest of World
7,623
8,835
198,922
245,147
(15,945)
(16,799)
North America
Inter-segment eliminations
Unallocated assets
159,333
180,287
Appliances business
664,136
751,522
Finance business
806,042
826,420
Intersegment Eliminations
(16,492)
(19,528)
1,453,686
1,558,414
Total assets as per the Statement of Financial Position
OTHER SEGMENT
DEPRECIATION
AMORTISATION
DISCLOSURES
31 March 31 March
31 March 31 March
P109
INTEREST
INTEREST
CAPITAL
EXPENSE*
INCOME**
EXPENDITURE
31 March 31 March
31 March 31 March
WORKING
31 March 31 March
CAPITAL
31 March 31 March
2012
2011
2012
2011
2012
2011
2012
2011
2012
2011
2012
2011
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
2,772
3,806
(9)
(51)
North America
7,455
7,976
579
165
(365)
1,418
Thailand
6,893
7,669
20
19
1,683
1,614
(2)
(2)
Europe
2,223
2,102
4,277
4,556
554
964
(33)
(46)
19,343
21,553
4,879
4,744
1,872
3,996
(44)
(99)
Factory operations
New Zealand
Australia

New Zealand
Australia
North America
Europe
Rest of World
Unallocated
Appliances business
Finance business
Total
320
73
94
93
1,038
766
10
35
(398)
(366)
811
843
81
116
(2)
(2)
31
117
17
2,281
1,915
113
137
17
(400)
(368)
360
283
4,691
3,918
8,985
11,389
(335)
(15)
21,984
23,751
9,683
8,799
10,857
15,403
(779)
(482)
48,313
24,263
163,668
224,084
493
483
8,466
7,860
(1,629)
(1,002)
2,163
4,078
22,477
24,234
18,149
16,659
10,857
15,403
(2,408)
(1,484)
50,476
28,341
163,668
224,084
Refer also Note 8

* Excludes Finance business operating interest
** Excludes interest on Finance business receivables, which forms part of revenue from external customers
P110
7. REVENUE & OTHER INCOME

CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
Appliances business sales of goods revenue

New Zealand
159,829
162,429
Australia
410,493
419,035
North America
165,766
207,883
Europe
64,304
81,330
Rest of World
74,393
69,505
4,701
12,217

Appliances business sales of services revenue
Finance business revenue
Total operating revenue
11,963
12,654
139,719
145,289
1,031,168
1,110,342
Other income
Interest
Net gains on disposal of property, plant & equipment
Appliances business fee income
Appliances business miscellaneous income
Finance business fair valuation adjustments
Total other income
Total revenue & other income
2,408
1,484
6,300
1,412
1,250
2,665
2,341
305
(774)
6,790
10,601
1,037,958
1,120,943
(a) Sales revenue

Revenue figures reported above are disclosed by location of customer and therefore do not agree directly to Segment disclosures at Note 6, where revenue is reported by country or region of operation.
(b) Net gains on disposal of property, plant & equipment
Net gains on disposal of property, plant & equipment for the period ending 31 March 2011 included a gain on sale
of land & buildings of $6.5 million.
P111
8. EXPENSES
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
613,017
673,118
2,694
882
1,241
500
25,611
14,185
Other administration expenses
133,729
134,834
Administration expenses
163,275
150,401
Selling, marketing & distribution expenses
112,666
123,106
888,958
946,625
Net gains and expenses

Profit before income tax includes the following specific expenses:
Appliances business
Cost of goods sold (COGS)
Onerous contracts
Fair valuation of noncurrent assets held for sale (refer note (i))
Net foreign exchange losses
The above expenses include:

531,905
573,312
Employee benefits
187,512
189,718
Depreciation
21,984
23,751
Amortisation
9,683
8,799
22,946
25,383
12,874
12,500
17,153
15,668
16
352
External interest expense
10,857
15,403
Finance costs expensed
10,857
15,403
Movement of inventory within COGS
Rental expense relating to operating leases

Defined contribution superannuation expense
Research & development
Donations
Appliance business finance costs
P112
8. EXPENSES (CONTINUED)
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
Finance business
18,762
19,545
Recovery of amounts previously written off
(1,670)
(1,509)
Movement in allowance for impairment
(5,980)
1,312
Impairment charge for credit losses (refer subnote (ii))
11,112
19,348
Interest expense & similar charges
40,818
41,360
6,774
Other Finance business expenses before unearned premium movements
53,599
47,548
Movement in unearned insurance & warranty premiums
(1,690)
2,539
Receivables written off during the year
Litigation costs (refer subnote (iii))
Other Finance business expenses

51,909
50,087
110,613
110,795
Other Finance business expenses include:

17,725
15,585
Depreciation
493
483
Amortisation
8,466
7,860
Marketing & promotion
7,396
5,529
Insurance and warranty commissions & claims
3,648
3,392
1,471
1,988
718
686
Employee benefits
Rental expense relating to operating leases

Defined contribution superannuation expense
Donations
(i) Asset Impairments

In the year ended 31 March 2012 on fair valuing the remaining East Tamaki, Auckland land & buildings held for sale,
an impairment of $1.2 million (2011 $0.5 million) was recognised refer also Note 14.
(ii) Christchurch earthquake adjustment
In the year ended 31 March 2011, the impairment charge for credit losses includes a provision overlay of $2.0 million
in relation to the Christchurch earthquake that occurred in February 2011. This provision overlay was fully released
in the current year.
(iii) Litigation costs
Previously a contingency has been reported for litigation which alleged that software developed by Fisher & Paykel
Financial Services Limited (FPFS) breaches intellectual property rights of a USA software company. No specific provision was previously made for this, as the known basis of claim was considered to have little or no prospect of success.
The case was heard in the High Court at Auckland, New Zealand in late 2011 and a judgement on the issue is expected this year.
At trial, the USA software company modified its previous stance that FPFS copied software and instead focussed on
its alleged intellectual property rights in the logic that underpins certain software functionality.
While the Directors believe on the information available to them that the claim is novel and lacks commercial merit,
P113
there are complex legal issues and a range of possible outcomes. Accordingly, the Directors consider it is now prudent to make a provision given this uncertainty.
This amount, together with legal costs incurred by FPFS through to 31 March 2012, has been reported as Litigation
Costs in the Income Statement. The amount of the provision recorded by FPFS has not been disclosed separately
as this may prejudice FPFSs position in this matter.
Auditors fees
During the year the following fees were paid or payable for services provided by the Auditor of the Company and
the Group, its related practices and nonrelated audit firms:
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
1,137
1,181
35
31
Fisher & Paykel Finance Limited Debenture Prospectus audit
10
10
Farmers Finance securitisation compliance audit
33
30
(a) Assurance services

Audit services
PricewaterhouseCoopers
Statutory audit current year
Statutory audit prior year
Compliance audits Appliances Thailand
Share register audit
Other audit firm

24
23
1,241
1,277
Review of Group Interim Financial Statements
84
106
Accounting advice
35
28
Tax compliance services
97
65
Other assurance services
254
61
Total remuneration for other assurance services
470
260
Total remuneration for assurance services
1,711
1,537
Statutory reporting software
25
28
Total remuneration for advisory services
25
28
1,736
1,565
Statutory audit current year

Total remuneration for audit services
Other assurance services
(b) Other services

Total remuneration
P114
9. INCOME TAX EXPENSE

CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
(a) Income tax expense

14,068
23,259
66
(4,969)
(8,684)
82
(101)
9,099
14,575
82
(35)
Decrease/(increase) in deferred tax assets (Note 18)
(3,707)
(8,313)
82
(101)
(Decrease)/increase in deferred tax liabilities (Note 24)
(1,262)
(371)
(4,969)
(8,684)
82
(101)
27,530
48,120
136
112
7,708
14,436
38
34
1,116
16
Current tax
Deferred tax
Deferred income tax (credit)/expense included in income tax expense comprises:
(b) Numerical reconciliation of income tax expense to prima facie tax payable
Profit from continuing operations before income tax expense
Tax at the New Zealand tax rate of 28% (2011: 30%)
Tax effect of a change in New Zealand tax rate to 28%
Tax effect of amounts which are not deductible/(taxable) in calculating taxable income:
(490)
(2,541)
Forfeited NRWT
298
823
Unrealised losses on New Zealand FC1 debenture
391
182
(524)
(1,680)
44
(151)
Other nonassessable income
Net (Recognition) / Derecognition of deferred tax

Credits provided to/from Group companies
Other nondeductible amounts
1,442
3,144
8,825
15,480
82
(101)
Difference in overseas tax rates
(62)
(126)
Under/(over) provision in prior years
336
(779)
66
Income tax expense
274
(905)
66
9,099
14,575
82
(35)
Tax legislation passed in 2010 reduced the New Zealand company tax rate from 30% to 28%, effective
1 April 2011.
The weighted average applicable effective tax rate was 33.1% (2011 30.3%).
The Group has estimated New Zealand tax losses available to carry forward of $21.7 million (2011 $15.9
million), subject to shareholder continuity being maintained as required by New Zealand tax legislation.
In addition, the Group has unrecognized New Zealand tax losses of $0.6 million.
The Group has estimated North American tax losses available to carry forward of $14.6 million (2011
$14.8 million) and tax credits of $2.8 million. These are subject shareholder continuity being maintained
as required by US tax legislation. In addition, the Group has unrecognized US tax losses and credits
totalling $24.0 million.
P115
10. CASH & CASH EQUIVALENTS

CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
Cash at bank and on hand
35,497
40,654
Deposits
73,850
72,875
109,347
113,529
(a) Reconciliation to cash at the end of the year

The above figures are reconciled to cash at the end of the financial year as shown in the Cash Flow Statement as follows:
CONSOLIDATED
Balance as above
31 March
31 March
31 March
2012
2011
2012
2011
$000
$000
$000
$000
109,347
113,529
(b) Cash at bank and on hand

This consists of both interest and noninterest bearing balances denominated in various currencies. The weighted
average interest rate as at 31 March 2012 was 2.0% (2011 1.8%).
(c) Deposits
These are Finance business call and term deposits. The call deposits bear a weighted average interest rate of 2.5%
(2011 2.5%). There were no fixed term deposits during the year to 31 March 2012 (2011 weighted average interest
rate ranged from 3.3% to 4.3%). During the year to 31 March 2011 the average maturity period was 39 days.
(d) Fair value
The carrying amount for cash & cash equivalents equals the fair value.
PARENT
31 March
P116
11. TRADE RECEIVABLES & OTHER CURRENT ASSETS

CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
109,079
129,222
(623)
(1,105)
108,456
128,117
17,196
22,511
21
27
125,652
150,628
21
27
Net trade receivables

Trade receivables
Allowance account for impairment of trade receivables
Other debtors & prepayments
(a) Impaired receivables

As at 31 March 2012 current trade receivables of the Group with a nominal value of $0.6 million (2011 $1.1 million),
which relate to a number of customers, were fully impaired and provisioned. There were no impaired trade receivables in the Parent in 2012 or 2011.
The ageing of these impaired receivables is as follows:
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
0 to 60 days
67
390
61 to 120 days
72
66
Over 120 days
484
649
623
1,105
As of 31 March 2012, trade receivables of $3.0 million (2011 $5.1 million) were past due but not impaired. These
relate to a number of customers who pay outside terms (but consistent with custom & practice for their sector) and
for whom there is no recent history of default. The ageing analysis of these past due but not impaired receivables
is as follows:
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
0 to 60 days
3,544
3,638
61 to 120 days
(156)
888
Over 120 days
(423)
584
2,965
5,110
P117
Movements in the provision for impairment of receivables are as follows:
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
2011
$000
$000
$000
$000
Carrying amount at the start of the year
1,105
1,568
Exchange rate variance on opening balance
(126)
(46)
263
749
(619)
(1,166)
623
1,105
Additional provision recognised

Utilised during the year
The creation and release of the provision for impaired receivables has been included in Administration expenses in
the Income Statement. Trade Receivables are provisioned when there is no expectation of collection.
The other classes within trade and other current assets do not contain impaired assets and are not past due. Based
on the credit history of these other classes, it is expected that these amounts will be received when due.
(b) Bad and doubtful trade receivables
The Group has recognised a net gain of $203,000 in respect of bad and doubtful trade receivables during the year
ended 31 March 2012 (2011 net loss $373,000). This gain / expense has been included in Administration expenses.
(c) Other debtors & prepayments
These amounts generally arise from transactions outside the usual operating activities of the Group.
Other debtors & prepayments as at 31 March 2011 included $2.0 million deferred sale proceeds from the sale of
land & buildings in East Tamaki, Auckland. These proceeds were received on 19 December 2011, refer also Note 14.
(d) Foreign exchange and interest rate risk
A summarised analysis of the sensitivity of trade and other receivables to foreign exchange and interest rate risk
can be found in Note 4.
(e) Fair value and credit risk
Due to the short term nature of these trade receivables, carrying value is assumed to approximate their fair value.
31 March
P118
12. FINANCE RECEIVABLES

31 March
31 March
2012
2011
$000
$000
376,083
391,475
Current
Finance receivables
(3,889)
(5,186)
Allowance for impairment
(12,532)
(16,413)
Total current Finance receivables
359,662
369,876
Finance receivables
245,593
245,250
Provision for unearned interest
(2,540)
(3,249)
(8,183)
(10,282)
Provision for unearned interest
Noncurrent
Allowance for impairment

Total noncurrent Finance receivables
234,870
231,719
Total Finance receivables
594,532
601,595
31 March
31 March
The Finance business recognised an impairment charge for credit losses of $11.1 million in respect of impaired
receivables for the year ended 31 March 2012 (2011 $19.3 million). Refer to Note 8.
(a) Finance business leases
Included within finance receivables are finance leases which the Finance business provides to customers for purchase
of office and other equipment.
2012
2011
$000
$000
Finance lease receivables

Gross receivables from finance leases:
Not later than 1 year
20,435
21,624
Later than 1 year and not later than 5 years
20,544
21,626
Later than 5 years
13
83
40,992
43,333
Unearned finance income
(2,160)
(2,511)
Allowance for uncollectible minimum lease payments receivable
(1,143)
(1,914)
(3,303)
(4,425)
37,689
38,908
Net investment in finance leases
P119
The net investment in finance leases is analysed as follows

31 March
Not later than 1 year

Later than 1 year and not later than 5 years
Later than 5 years
31 March
2012
2011
$000
$000
18,540
19,151
19,137
19,689
12
68
37,689
38,908
31 March
31 March
(b) Impaired receivables

Net Finance receivables are summarised as follows:
Neither past due nor impaired
2012
2011
$000
$000
559,287
562,002
Past due but not impaired
26,376
32,252
Impaired individually assessed
29,584
34,036
615,247
628,290
Gross
Less:
Allowance for impairment collectively assessed
2,928
5,690
Allowance for impairment individually assessed
17,787
21,005
594,532
601,595
31 March
31 March
Net Finance receivables
The past due but not impaired category includes those Finance receivables for which the customer has failed to make
a payment when contractually due and for which the receivable has not been individually assessed for impairment.
The gross figures disclosed include the customers entire balance rather than the overdue portion.
The carrying amount of Finance receivables that would otherwise be past due whose terms have been renegotiated
at 31 March 2012 was $46.6 million (2011 $44.5 million). These receivables are included in the neither past due nor
impaired category and are considered by Management to be fully performing.
The table below shows a reconciliation of the movement in gross Finance receivables (after provision for unearned
interest) that are individually determined to be impaired.
Balance at 1 April
Net additions to class
Receivables written off during the year
Balance at 31 March
2012
2011
$000
$000
34,036
37,009
12,187
14,300
(16,639)
(17,273)
29,584
34,036
P120
12. FINANCE RECEIVABLES (CONTINUED)

The ageing of other gross Finance receivables past due but not impaired is as follows:
31 March
Up to 30 days
31 March
2012
2011
$000
$000
17,819
22,324
3160 days
6,197
7,312
6190 days
2,285
2,546
Over 90 days
75
70
26,376
32,252
31 March
31 March
Collateral held for Finance receivables individually determined to be impaired and Finance receivables past due but
not impaired is as follows:
__
Q Card advances are generally secured by way of reservation of title over the asset financed. Personal Loans
are generally unsecured
__
Farmers credit card receivables are unsecured. Farmers fixed instalment receivables are generally secured over
the goods financed
__
It is impracticable to estimate the fair value of collateral held because of the average size of each advance
outstanding, the number of advances outstanding, the term to maturity of each advance and the wide
variety and condition of each asset financed. The Finance business will, in the first instance, attempt to
collect the outstanding debt without recourse to the secured asset. In many instances third party collection agencies are utilised. Repossession of secured assets occurs only in limited circumstances and where
it is economic to do so. The carrying amount of these collateralised assets at balance date was immaterial
Movements in the allowance for impairment collectively assessed is as follows:
Balance at 1 April
Movement in allowance for impairment during the year
Balance at 31 March
2012
2011
$000
$000
5,690
3,288
(2,762)
2,402
2,928
5,690
31 March
31 March
Movements in the allowance for impairment individually assessed is as follows:
2012
2011
$000
$000
Balance at 1 April
21,005
22,095
Movement in allowance for impairment during the year
(3,218)
(1,090)
17,787
21,005
Balance as at 31 March
The creation and release of the allowances for impaired Finance receivables has been included in the Impairment
charge for credit losses in Note 8. Amounts charged to the allowance account are generally written off when there
is no expectation of recovering additional cash.
P121
(c) Fair values

The fair values and carrying values of Finance receivables are as follows:
31 MARCH
31 MARCH
2012
Carrying
2011
Fair value
amount
Finance receivables
Fair value
amount
value
$000
$000
$000
$000
594,532
594,409
601,595
598,640
The fair values of Finance receivables other than bulk finance receivables are based on cash flows discounted using
current lending rates ranging between 13.7% to 14.8% (2011 15.4% to 15.7%).
The fair value of Finance lease receivables are based on cash flows discounted using a current lending rate of 13.3%
(2011 14.8%).
The fair values of bulk Finance receivables are based on cash flows discounted using current lending rates ranging
between 2.7% to 2.9% (2011 2.5% to 2.9%).
The fair value of other Finance receivables equals their carrying amount as the effect of discounting was immaterial.
(d) Interest rate risk
For an analysis of the sensitivity of Finance receivables to interest rate risk, refer to Note 5.
(e) Credit risk
Refer to Note 5 for more information on credit risk from Finance receivables including objectives, policies and processes for managing credit risk.
Carrying
P122
13. INVENTORIES
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
Raw materials
43,678
54,355
Spare parts
12,953
15,909
Workinprogress
12,407
13,605
Finished goods
82,734
111,239
151,772
195,108
Inventory expense
Raw materials, consumables and changes in finished goods and workinprogress recognised as cost of goods sold
in the year ending 31 March 2012 was $531.9 million (2011 $573.3 million).
Writedowns of inventories to net realisable value recognised as an expense during the year ended 31 March 2012
amounted to $1.4 million (2011 $2.1 million). This expense is included in cost of goods sold in the Income Statement.
The carrying value of inventories carried at fair value less costs to sell as at 31 March 2012 was $9.5 million (2011
$11.3 million).
14. NONCURRENT ASSETS CLASSIFIED AS HELD FOR SALE

CONSOLIDATED
Land
Buildings
31 March
31 March
31 March
2012
2011
2012
2011
$000
$000
$000
$000
31 March
7,757
9,501
6,086
5,520
13,843
15,021
Surplus land & buildings at East Tamaki, New Zealand are currently for sale under 3 separate titles. These have been
recorded at the lower of cost or fair value less anticipated costs to sell. There is currently a signed conditional agreement
on one of the properties. If all conditions are met then the property sale will settle on or before 30 September 2012.
An impairment charge of $1.2 million (2011 $0.5 million) was recognised in the year ended 31 March 2012 relating
to fair value adjustments for the land & buildings at the East Tamaki site. These assets are classified as unallocated
assets in the Segment Note refer Note 6.
In March 2011, subdivided land & buildings at the East Tamaki site were sold for $2.25 million and the final instalment
of sale proceeds amounting to $2 million was received on 19th December 2011.
PARENT
P123
15. DERIVATIVE FINANCIAL INSTRUMENTS

CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
2,361
2,654
2,365
2,654
Current assets
Forward foreign exchange contracts ((a)(i))
Interest rate swaps ((a)(ii))
Total current derivative financial instrument assets
Noncurrent assets
-
151
Total noncurrent derivative financial instrument assets
151
2,516
2,658
1,736
20,029
1,145
971
Total current derivative financial instrument liabilities
2,881
21,000
Total derivative financial instrument assets

Current liabilities
Noncurrent liabilities
-
183
2,782
5,518
Total noncurrent derivative financial instrument liabilities
2,782
5,701
Total derivative financial instrument liabilities
5,663
26,701
(3,147)
(24,043)
Total derivative financial instruments
Derivative financial assets and liabilities are classified as current or noncurrent according to the underlying hedge relationship. Where an effective hedged item has a remaining maturity of more than 12 months it is classified as noncurrent.
(a) Instruments used by the Group
The Group is party to derivative financial instruments in the normal course of business in order to hedge exposure
to fluctuations in interest and foreign exchange rates in accordance with the Groups financial risk management
policies(Refer Notes 4 & 5).
(i) Forward foreign exchange contracts
The Appliances business hedges net receipts of US dollars from related parties for products manufactured in Thailand.
The Appliances business hedges net payments in US dollars for imported raw materials and appliances from third
parties and finished products manufactured in Thailand and Mexico into New Zealand, Australia, Canada, Singapore
and the United Kingdom.
These contracts are hedging highly probable forecasted purchases and receipts for up to 12 months (24 months by
exception) and the contracts are timed to mature when payments are scheduled to be made or when sales have
been recognised.
The Appliances business also hedges significant capital expenditure transactions with a policy de minimis of NZ$500,000.
The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised
directly in equity. When the cash flows occur, the Appliances business adjusts the initial measurement of the component recognised in the Statement of Financial Position by the related amount deferred in equity.
During the year ended 31 March 2012 a loss of $19.4 million (2011 loss of $11.6 million) was reclassified from equity
and included in gross margin. There was no hedge ineffectiveness in the current or prior year.
P124
15. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)

(ii) Interest rate derivatives
Appliances business
The Appliances business has loans totalling 6million and THB800million that form part of the core borrowings rather
than operational floats. The Group Treasury Policy states between 30 and 70 percent of these loans should be fixed
via interest rate derivatives to protect the Group from exposure to fluctuations in interest rates. Accordingly, the
Group has entered into interest rate swap and cap contracts under which it is obliged to receive interest at variable
rates and to pay interest at fixed rates.
The interest rate contracts in place at the time of the debt restructuring in March 2009 were deemed to be ineffective and are fair valued through profit or loss. Interest rate contracts entered into subsequent to the restructuring
are deemed effective and fair valued through the cash flow hedge reserve.
The Appliances business has interest rate swaps with a notional value of USD 24million; there is no USD loan outstanding as at 31 March 2012. There are swaps and caps currently in place to cover approximately 208% (2011 78%)
of the Euro loan principal amount. The swap cover on the US dollar and Euro loans are outside policy limits (with
Board consent), due to the reduction of foreign currency denominated loans as total debt levels have fallen.
There is an interest rate swap with a notional value of NZD $5 million that hedges NZD floating rate risk. The remaining floating rate risk is offset by a floating rate receivable from the Finance business. There are Caps in place to
cover approximately 35% of the Thai Baht loan principal outstanding (2011 44% coverage with interest rate swaps).
The fixed interest rates average 4.25% for the Euro loan (2011 4.25%) and 3.52% for NZD loan. On the THB debt
Caps have been bought that protect at an average rate of 4.75%. The variable rates are set at the LIBOR 90 day
settlement rates for the Euro loans and NZD BBR Bid for NZD, and THBFIX 180 day for THB, at balance date were
0.89% (2011 1.18%) for the Euro and 2.80% (2011 2.70%) for the NZD. For the THB the rate of 3.08% was under the
Cap rate (2011 1.88%).
The contracts require settlement of net interest receivable or payable each 90/180 days as appropriate. The contracts
are settled on a net basis.
Finance business
The Finance business only applies fair value hedge accounting for hedging fixed interest on its bulk Finance receivables and uses fair value hedges to protect against movements in the fair value of its fixed rate receivables due to
movements in market interest rates. Changes in the fair value of derivative financial instruments that are designated
and qualify as fair value hedges are recorded in the statement of comprehensive income (within Finance business
fair value adjustments in Other Income refer Note 7), together with any changes in the fair value of the hedged
item that are attributable to the hedged risk.
The Finance business has designated certain interest rate swaps as hedging instruments against loans and advances
made to Smithcorp Finance Limited (bulk Finance receivables). The notional principal outstanding at 31 March 2012
for these interest rate swaps was $73.3 million (2011 $74.0 million).
The fair value movement on the hedging instrument (interest rate swaps) for the year ended 31 March 2012 was
a gain of $242,000 (2011 loss of $201,000). The fair value movement on the hedged item (attributable risk of bulk
Finance receivables) for the year ended 31 March 2012 was a loss of $242,000 (2011 gain of 201,000).
The Finance business only applies cash flow hedge accounting for hedging the variability in cash flows arising from
the rollover of its bank loans and uses cash flow hedges to protect against variability in future cash flows due to
movements in market interest rates. Changes in the fair value of derivative financial instruments that are designated
and qualify as cash flow hedges are recorded in equity (Interest rate hedge reserve).
The Finance business has designated a portion of certain interest rate swaps as hedging instruments against the variability in the cash outflows arising on the rollover of bank loans after 1 April 2010. The notional principal outstanding
at 31 March 2012 for these interest rate swaps was $117 million (2011 $99 million).
The fair value movement on the hedging instrument for the year ended 31 March 2012 recognised in equity was a
loss of $70,000 (2011 $1.26 million). For the year ended 31 March 2012 there was no ineffectiveness recognised in
the Income Statement arising from these cash flow hedges.
The Finance business uses interest rate swaps to economically hedge a portion of its asset/liability gap. The notional principal outstanding at 31 March 2012 for these interest rate swaps was $102.0 million (2011 $104.0 million).
Refer also to Financial risk management Finance business Note 5(d) & (e) for further details on Finance business
derivatives.
(b) Credit risk exposures
Credit risk arises from the potential failure of counterparties to meet their obligations under the respective contracts
at maturity. At balance date $2.4 million is receivable (New Zealand dollar equivalents) for the Appliances business
from forward foreign exchange contracts (2011 $2.7 million).
The Appliances business undertakes 100% of its transactions in foreign exchange, interest rate and commodity price
contracts with financial institutions. Management spreads this risk across several counterparties, all of which are
required to hold a minimum Standard & Poors longterm credit rating of BBB+. Credit risk control limits are then
applied to Board approved counterparties dependent on the rating.
The Finance business enters into interest rate derivatives with Board approved financial institutions. All approved
counterparties have a minimum Standard & Poors longterm credit rating of AA and the Finance business does
not require collateral or other security to support these financial instruments. At balance date $52,000 (2011 $1,000)
is receivable in respect of these financial instruments.
(c) Interest rate risk exposures
For an analysis of the sensitivity of derivatives to interest rate risk refer to Notes 4 and 5.
P125
P126
16. PROPERTY, PLANT & EQUIPMENT

Freehold
Freehold
Leasehold
Plant &
Fixtures
Motor
Capital
land
buildings
improve-
equipment
& fittings
vehicles
Workin
$000
$000
$000
$000
$000
$000
ments
Total
Progress
$000
$000
1 April 2010
Cost
Accumulated depreciation & impairment
Net book amount
19,215
61,387
6,317
529,132
11,131
1,984
4,743
633,909
(4,650)
(3,934)
(398,065)
(6,960)
(1,926)
(415,535)
19,215
56,737
2,383
131,067
4,171
58
4,743
218,374
218,374
Year ended 31 March 2011

Opening net book amount
19,215
56,737
2,383
131,067
4,171
58
4,743
Additions
42
1,660
13,011
633
72
3,906
19,324
Disposals
(19)
(5,185)
(102)
(1)
--
(5,307)
Reclassification*
(2,738)
2,738
Depreciation charge
(997)
(933)
(21,305)
(952)
(47)
(24,234)
Exchange differences
(343)
(1,174)
(56)
(4,241)
56
(1)
(243)
(6,002)
Closing net book amount
18,872
51,870
3,035
116,085
3,806
81
8,406
202,155
31 March 2011
Cost
Net book amount
18,872
57,490
7,437
511,501
11,552
1,953
8,406
617,211
(5,620)
(4,402)
(395,416)
(7,746)
(1,872)
(415,056)
18,872
51,870
3,035
116,085
3,806
81
8,406
202,155
* Assets incorrectly classified as Buildings in prior periods were reclassified in the current period to Plant & equipment.
Depreciation rates were unaffected and remain valid for these assets, which are infrastructure related items located in Thailand.
P127
Freehold
Freehold
Leasehold
Plant &
Fixtures
Motor
Capital
land
buildings
improve-
equipment
& fittings
vehicles
Workin
$000
$000
$000
$000
$000
$000
ments
Total
Progress
$000
$000

18,872
51,870
3,035
116,085
3,806
81
8,406
202,155
Additions
75
145
25,514
462
15
13,618
39,829
Disposals
(2)
(129)
(13)
(144)
Depreciation charge
(1,049)
(704)
(19,739)
(959)
(26)
(22,477)
(2,164)
(5,732)
(123)
(10,217)
(258)
(6)
(342)
(18,842)
16,708
45,162
2,353
111,514
3,038
64
21,682
200,521
31 March 2012
Cost
Net book amount
16,708
51,123
7,164
505,773
10,737
1,832
21,682
615,019
(5,961)
(4,811)
(394,259)
(7,699)
(1,768)
(414,498)
16,708
45,162
2,353
111,514
3,038
64
21,682
200,521
31 March
31 March
(a) Leased assets

Plant & equipment includes the following amounts where the Group is a lessee under a finance lease:
2012
2011
$000
$000
Cost
131
Accumulated depreciation
(54)
Net book amount
77
(b) Impairment charges

Total impairment charges for property, plant & equipment in the year ended 31 March 2012 were $nil (2011 $nil).
Refer also Note 17 for details of impairment charges relating to associated intangible assets.
P128
17. INTANGIBLE ASSETS

Develop-
Goodwill
ment
Patents &
Computer
trademarks
software
Brands
$000
$000
$000
Licences
Total
Relation-
costs
$000
Customer
ships
$000
$000
$000
$000
1 April 2010
Cost
23,820
117,422
6,579
34,844
22,101
147,430
35,853
388,049
(13,589)
(56,438)
(3,457)
(24,183)
(58,407)
(13,744)
(169,818)
10,231
60,984
3,122
10,661
22,101
89,023
22,109
218,231
10,231
60,984
3,122
10,661
22,101
89,023
22,109
218,231
Additions
7,588
497
4,618
12,707
(157)
(157)
(3,228)
(614)
(2,836)
(6,555)
(3,426)
(16,659)
Accumulated amortisation & impairment

Net book amount
Subsidiary sold
Amortisation charge
Impairment charge
(476)
(765)
36
(228)
(1,241)
(89)
(411)
(3,174)
14,115
60,219
2,884
12,215
20,860
82,383
18,272
210,948
31 March 2011
Cost
Net book amount
32,609
115,890
6,104
39,899
20,860
147,091
35,366
397,819
(18,494)
(55,671)
(3,220)
(27,684)
(64,708)
(17,094)
(186,871)
14,115
60,219
2,884
12,215
20,860
82,383
18,272
210,948
Develop-
Goodwill
Brands
Licences
Customer
Total
ment
Patents &
Computer
trademarks
software
Relation-
costs
ships
$000
$000
$000
$000
$000
$000
$000
$000
14,115
60,219
2,884
12,215
20,860
82,383
18,272
210,948
Additions
9,019
327
2,347
11,693
Disposals
(10)
(220)
(230)
(4,531)
(426)
(3,408)
(6,540)
(3,244)
(18,149)
(530)
(2,462)
(37)
11
(1,734)
(665)
(2,136)
(7,553)
18,073
57,757
2,738
10,945
19,126
75,178
12,892
196,709
Amortisation charge
31 March 2012
Cost
Net book amount
40,326
106,461
6,165
41,131
19,126
143,978
30,940
388,127
(22,253)
(48,704)
(3,427)
(30,186)
(68,800)
(18,048)
(191,418)
18,073
57,757
2,738
10,945
19,126
75,178
12,892
196,709
P129
(a) Goodwill
(i) Impairment tests for goodwill
Goodwill is allocated to the Groups cashgenerating units (CGUs) according to the operations expected to benefit
from the synergies of the business combination.
A summary of the goodwill allocation is shown below:
Sales &
Factory
Consumer
customer
operations
finance
Other
Total
services
2012
$000
$000
$000
$000
$000
Appliances New Zealand
7,427
7,427
Appliances North America
2,478
7,765
10,243
Appliances Australia
3,645
3,645
2,718
2,718
32,118
1,606
33,724
16,268
7,765
32,118
1,606
57,757
Sales &
Factory
Consumer
Other
Total
customer
operations
finance
$000
$000
$000
$000
$000
7,921
7,921
Appliances North America
2,833
8,467
11,300
Appliances Australia
4,167
4,167
Appliances Rest of World
3,107
3,107
32,118
1,606
33,724
18,028
8,467
32,118
1,606
60,219
Appliances Rest of World

Finance business
services
2011
Appliances New Zealand
Finance business
(ii) Key assumptions used for value in use calculations

The recoverable amount of a CGU is determined based on value in use calculations. These calculations use cash flow
projections based on financial budgets prepared by management and approved by the Board covering a five year
period. Cashflow projections are derived using past experience, expectations for the future and external sources of
financial and economic data where appropriate.
In arriving at the projected cashflows, management has made assumptions about sales revenue growth, key raw
material prices and foreign currency average exchange rates based on industry and economic indicators.
The following EBITDA (operating earnings before interest, taxation, depreciation & amortisation) growth rates
(Finance business uses NPBT or net profit before taxation) have been applied by management in the budgeted
cashflow projections:
__
EBITDA growth rate applied to sales & customer services goodwill: Nil
__
EBITDA growth rate applied to North America factory operations goodwill: between 11 - 27% (3 years based on
Management 5 year forecast including new products and refreshed United Range, 2% growth applied thereafter)
__
NPBT growth rate applied to Consumer Finance goodwill: 9.5% (on average; ranges from 4.8% 12.6%)
The terminal growth rates used to extrapolate cash flows beyond the budget period were:
__
North American factory operations goodwill: 2.0%
__
Sales & customer services goodwill: 2.0%
__
Consumer Finance goodwill: 2.1%
P130
17. INTANGIBLE ASSETS (CONTINUED)

The following pretax discount rates have been applied to the cash flow projections:
__
Goodwill allocated to North American factory operations: 11.88%
__
Goodwill allocated to sales & customer services: ranges between 10.9% and 11.2%
__
Goodwill allocated to Consumer Finance: 15.28%
(iii) Impact of possible changes in key assumptions

The recoverable amount of the North American factory operations CGU was $40.2 million, which exceeded the carrying amount by $12.6 million. If the EBITA was 70% of the forecast then the recoverable amount of the CGU would
approximately equal the carrying value.
Management does not consider any reasonably possible change in other key assumptions applied to other goodwill
balances would reduce the recoverable amounts below their carrying amounts.
(b) Brands
(i) Impairment tests for brands
Acquired brands are allocated to the Groups CGUs identified according to country of operation.
2012
Sales & customer services North America
Sales & customer services New Zealand
DCS
Elba
Total
$000
$000
$000
15,867
15,867
3,259
3,259
15,867
3,259
19,126
DCS
Elba
Total
2011
$000
$000
$000
Sales & customer services North America
17,135
-
3,725
3,725
17,135
3,725
20,860
Sales & customer services New Zealand
(ii) Key assumptions used for relieffromroyalty calculations

The recoverable amount for brands is determined based on relieffromroyalty calculations. These calculations use
cash flow projections based on financial budgets prepared by management and approved by the Board covering a
fiveyear period. Cashflow projections are derived using past experience, expectations for the future and external
sources of financial and economic data where appropriate.
In arriving at the projected cashflows, management has made assumptions about sales revenue growth and foreign
currency average exchange rates based on industry and economic indicators.
The following growth rates have been applied to brand sales revenue by management in the cash flow projections:
__
DCS: between 2 16% (3 years based on Management 5 year forecast including new products and refreshed
__
Elba: Nil
United Range, 2% growth applied thereafter)
The royalty rates used in the relieffromroyalty calculations were as follows:

__
DCS: 3.0%
__
Elba: 2.0%
The terminal growth rates used to extrapolate cash flows beyond the budget period were:
__
DCS: 2%
__
Elba: Nil
17,135
The following pretax discount rates have been applied to the cash flow projections:
__
DCS: 11.88%
__
Elba: 12.62%
(iii) Impact of possible changes in key assumptions

DCS brand
The recoverable amount of the DCS brand at 31 March 2012 is estimated to be $28.1 million, which exceeds the
carrying amount by $12.2 million.
Detailed sales figures for the DCS brand are considered commercially sensitive and therefore are not disclosed.
Management have used budgeted sales revenues for 2012/13, and Management have performed a detailed 5 year
forecast, which has been used for 2013/14 - 2015/16 and results in a growth rate of up to 16%. Thereafter a growth
rate of 2% and a terminal growth rate of 2% have been used.
Management does not consider any reasonably possible change in other key assumptions would reduce the recoverable amount below the carrying amount.
Elba brand
The recoverable amount of the Elba brand at 31 March 2012 is estimated to be $4.7 million, which is $1.4 million above
the carrying amount. The recoverable amount is based on nil sales growth over the next 5 years and nil terminal growth.
Detailed sales figures for the Elba brand are considered commercially sensitive and therefore are not disclosed.
The recoverable amount is sensitive to changes in the assumed royalty rate. If the royalty rate decreased from 2.0%
to 1.4%, the recoverable amount is equal to the carrying amount.
Management does not consider any reasonably possible change in other key assumptions would reduce the recoverable amount below the carrying amount.
(d) Other material intangible assets
The Finance business has a license with a net book value of $70.4 million as at 31 March 2012 (2011 $76.5 million).
This is an exclusive license to provide financial services to the Farmers Trading Company for a period of 20 years.
The license has a remaining amortisation period of 11.6 years.
There were no indicators of impairment in the year ended 31 March 2012.
P131
P132
18. DEFERRED TAX ASSETS

CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
The balance comprises temporary differences attributable to:

Receivables provisions
6,329
8,216
Employee benefits
6,012
5,633
40
228
Inventories
1,702
2,429
Warranty provisions
3,963
4,130
4,956
9,969
Intangibles (excl DCS brand)
(17,049)
(21,425)
814
2,841
DCS brand
3,907
4,230
305
2,005
2,813
4,260
Tax losses to carry forward*
36,368
30,605
Other temporary differences
4,663
2,964
108
54,783
55,857
148
228
55,857
76,206
228
127
800
(16)
101
Impairment of barter credits

USA energy tax credit*
Net deferred tax assets

Movements:
Opening balance at 1 April
Effect of a change in New Zealand tax rate to 28%
Credited/(charged) to the Income Statement (Note 9)
Credited /(charged) to equity
Prior period adjustment
Transfer from Deferred tax liabilities
Foreign exchange differences
Other movements
Closing balance at 31 March
3,898
8,313
(39)
(4,780)
(5,646)
(726)
(5,140)
(41)
6
-
(1)
(19,487)
(2,645)
2,406
3,180
(1,595)
10
54,783
55,857
148
228
Expected settlement
Within 12 months
15,830
17,167
59
204
In excess of 12 months
38,953
38,690
89
24
54,783
55,857
148
228
* The utilisation of these deferred tax assets is dependent on future taxable profits in excess of the profits arising from the reversal of existing taxable temporary differences and shareholder continuity being
maintained in accordance with New Zealand and USA tax legislation. The recognition of these deferred tax assets is evidenced by forecasts of taxable income arising in the next ten years.
P133
19. CURRENT AND NON-CURRENT BORROWINGS

CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
3,205
Noncurrent borrowings
83,605
121,557
Total current and noncurrent borrowings
86,810
121,557
Current borrowings
(a) Assets pledged as security

The Appliances business borrowings are secured through the Guaranteeing Group by a Security Trust Deed with
the Groups banking syndicate. The Guaranteeing Group comprises Fisher & Paykel Appliances Holdings Limited
and subsidiary companies except for the New Zealand Finance business entities. All borrowings are drawn down at
interest rates current at draw down date.
The Security Trust Deed, as amended and restated from time to time, limits any other security over the Guaranteeing
Groups assets and imposes the following financial covenants:
__
(i) Total Leverage ratio of the Guaranteeing Group each quarter < 3.0 times
__
(ii) Total Interest Cover ratio of the Guaranteeing Group each quarter > 3.0 times
__
(iii) FPAL Interest Cover Ratio of the Guaranteeing Group each quarter > 2 times. This covenant was removed
effective 26 March 2012
__
(iv) Total tangible assets of the Guaranteeing Group shall constitute no less than 95% of the total tangible assets
of the Consolidated Group, excluding the Finance business entities, for each quarter
__
(v) Total EBITDA of the Guaranteeing Group shall constitute no less than 95% of the EBITDA for the Consolidated Group, excluding the Finance business entities, for each quarter.
For the purposes of the financial covenants above:

Total Leverage Ratio is the ratio of Total Bank Debt to Normalised EBITDA.
Total Interest Cover means the ratio of Normalised EBITDA to Total Interest
FPAL Interest Cover Ratio is the ratio of FPAL Normalised EBITDA to Total Interest.
Total Interest means, interest and financing costs of the Guaranteeing Group for the last 12 months, less any interest
received on cash held at the bank (for the avoidance of doubt, interest received on loans to the Finance business
shall not reduce Total Interest).
"Normalised EBITDA means operating earnings before interest, tax, depreciation and amortisation for the last 12
months for the Guaranteeing Group, adjusted to exclude certain nonrecurring items. Normalised EBITDA includes
the Appliances business earnings plus any dividends or interest paid by the Finance business to its parent, AF Investments Limited, a subsidiary of the ultimate parent Fisher & Paykel Appliances Holdings Limited.
FPAL Normalised EBITDA means operating earnings before interest, tax, depreciation and amortisation for the last
12 months for the Guaranteeing Group adjusted to exclude certain nonrecurring items and any dividends or interest
paid by the Finance business to its parent AF Investments Limited.
Total Bank Debt means Guaranteeing Group indebtedness to the Groups banking syndicate less cash deposited with
the banking syndicate or other approved banks. As at 31 March 2012 Total Bank Debt was approximately $65.2 million.
The current debt facilities expire on 30 September 2014, except for repayments under a $27 million Amortising Facility which funds capital expenditure associated with the recently announced motor supply contracts. The Amortising
facility is subject to the following minimum repayments:
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19. CURRENT AND NON-CURRENT BORROWINGS (CONTINUED)

Repayment date
Repayment amount
$000s
30 September 2012
$1,470
31 March 2013
$2,000
30 September 2013
$3,610
31 March 2014
$3,610
Further repayments are required under the Amortising Facility to the extent of 50% of Free Cash Flow attributable to
the new motor supply contracts. Free Cash Flow is defined as free cash flow attributable to the new motor supply
contracts less the repayments above for a 6 month period.
(b) Financing arrangements
The Appliances business had unrestricted access at balance date to the following lines of credit, except for $27 million
which can only be used to finance capital expenditure associated with motor supply contracts:
31 March
31 March
2012
2011
$000
$000
Total facilities
47,000
50,000
202,000
183,649
249,000
233,649
Working capital
Borrowings
Used at balance date

-
9,221
86,810
121,557
86,810
130,778
Working capital*
Borrowings
Unused at balance date

Working capital
47,000
40,779
Borrowings
115,190
62,092
162,190
102,871
*The March 2011 amount of $9.2 million utilisation in the table above relates to Letters of Credit issued in favour of selected suppliers and balance of payment guarantees.
(c) Fair value

The carrying amounts of borrowings at 31 March 2012 were equal to their fair values (2011 equal).
(d) Risk exposures
The exposure of the Appliances business borrowings to interest rate changes and the contractual repricing dates
at balance date were as follows:
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
Less than 12 months
3,205
One to two years

Two to three years
7,220
121,557
76,385
86,810
121,557
The borrowings were aged in accordance with the facilitys terms.
P135
The carrying amounts of the Appliances business borrowings were denominated in the following currencies:
CONSOLIDATED
New Zealand dollars

US dollars
Euros
Thai baht
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
45,387
45,740
11,203
9,777
29,801
31,646
34,813
86,810
121,557
31 March
31 March
(e) Interest rate risk

For an analysis of the sensitivity of the Appliance business borrowings to interest rate risk refer to Note 4.
20. FINANCE BORROWINGS
2012
2011
$000
$000
Current secured
Bank loans
35,507
1,260
Debentures
90,261
118,991
194,097
134,805
Notes
73,861
319,865
328,917
Bank loans
210,000
223,577
Debentures
21,101
21,421
231,101
244,998
231,101
244,998
550,966
573,915

Total current Finance borrowings
Non-current secured
Total non current interest bearing Finance borrowings

Total non current Finance borrowings
Total Finance borrowings
There were no unsecured Finance borrowings as at 31 March 2012 (2011 Nil).

(a) Assets pledged as security
(i) Bank loans and debentures
Bank loans and debentures are secured by a first ranking general security interest in favour of the Trustee over the
undertaking and assets of the Fisher & Paykel Finance Limited Charging Group. Bank overdrafts and bank borrowings
are secured by Security Stock issued under the terms of the Trust Deed. The Fisher & Paykel Finance Limited Charging
Group includes Fisher & Paykel Finance Limited and all of its subsidiaries except Consumer Insurance Services Limited.
P136
20. FINANCE BORROWINGS (CONTINUED)

The carrying amounts of Charging Group assets pledged as security for Charging Group bank loans and debentures are:
31 March
31 March
2012
2011
$000
$000
Current
Finance receivables
Other assets
Total current assets pledged as security
56,290
46,761
219,096
223,200
8,895
9,187
284,281
279,148
Noncurrent
1,074
1,247
Intangible assets
9,295
10,056
176,221
171,132
Finance receivables
19
Total noncurrent assets pledged as security
186,609
182,436
Total assets pledged as security
470,890
461,584
31 March
31 March
(ii) Notes and Committed liquidity facilities

Notes issued and Committed liquidity facilities utilised under the securitisation programme are secured by a first ranking
general security interest over Finance receivables plus cash & cash equivalents in the special purpose entity RFS Trust
20061 (the Trust). The book value of these assets as at 31 March 2012 totalled $211.1 million (2011 $223.7 million).
The carrying amounts of assets pledged as security by the Trust for secured interest bearing liabilities were:
2012
2011
$000
$000
11,240
15,292
Finance receivables
199,904
208,359
Noncurrent liability
211,144
223,651
(b) Bank loans

The bank loans are a combination of call and shortterm loans (with fixed interest rates for periods of approximately
90 days) and bear interest at a weighted average interest rate (excluding line fees, establishment fees and extension
fees) of 4.0% (2011 4.2%).
Fisher & Paykel Finance Limited has a $385 million ( refer note 20 (e)) syndicated banking facility with a maturity
profile as follows:
__
Tranche A ($20 million) matures 10 April 2015
__
Tranche B ($105 million) matures 10 October 2013
__
Tranche C ($105 million) matures 10 October 2012
__
Tranche D ($105 million) matures 10 April 2014
__
Tranche E ($50 million) matures 10 October 2012
The syndicated banking facility imposes a number of financial covenants with which the Charging Group must comply
and requires a formal compliance certificate to be provided to the facility agent and the lending banks on a monthly
basis. The financial covenants comprise:
__
a liquidity ratio
__
an interest cover ratio
__
a minimum capitalisation covenant
__
a limit on lending concentration
__
two impaired asset tests, one relating to asset net writeoff levels and one relating to the level of greater than
__
a prior charges limit
three month impaired assets compared to total receivables
If a covenant breach occurs and depending on its nature, the Charging Group is generally able to remedy the breach
by procuring additional capital from its immediate parent (Fisher & Paykel Finance Holdings Limited) in the form
of equity or subordinated debt. Under the facility agreement, the Charging Group is only permitted one remedy in
any twelve month period.
The facility documentation also includes a Change in Market Conditions clause, which defines a Market Disruption Event as:
__
(i) Circumstances, such as adverse funding conditions or market liquidity constraints, which result in a lender
becoming unable to participate in an advance requested under the facility, or
__
(ii) Notification to the facility agent by a lender that its cost of obtaining matching deposits in the interbank
market would be in excess of the base rate for an advance
In the event of a market disruption event occurring, and depending on the exact circumstances, then the parties to
the agreement will enter into negotiations either to agree a substitute basis for maintaining advances, or to agree
the rate of interest applicable to further advances.
During the year ended 31 March 2012 and up to the date these financial statements were signed, no market disruption event occurred.
(c) Debentures
Debenture stock which is issued on the basis that it is repayable on demand, may be repaid by the Finance business at any time. Other debenture stock is issued on terms ranging from 3 months to 5 years and is repayable on
the maturity date. For the majority of debentures, interest is payable quarterly in arrears on the last day of March,
June, September and December. On other debentures, interest is paid on the last working day of each month. The
weighted average interest rate of the debenture stock (excluding brokerage and New Zealand Deposit Guarantee
fees) at 31 March 2012 was 7.4% (2011 7.0%).
P137
P138
20. FINANCE BORROWINGS (CONTINUED)

(d) Notes and Committed liquidity facilities
Each Note issued has a minimum subscription price of $500,000 and must be a multiple of $100,000. The term of
Notes cannot exceed 364 days or the maturity of the Committed liquidity facility, whichever is earlier. Notes are
normally issued on the basis that they bear no interest but are issued at a discount to their principal amount. The
weighted average interest rate of Notes at 31 March 2012 was 3.5% (2011 4.1%).
Liquidity support for the Notes is provided under a Committed liquidity facility. The committed liquidity facility
was undrawn as at 31 March 2012. The weighted average interest rate of the liquidity facility (excluding line fees,
establishment fees and extension fees) at 31 March 2011 was 4.0%.
(e) Financing arrangements
Unrestricted access was available at each balance date to the following lines of credit:
31 March
31 March
2012
2011
$000
$000
335,000
385,000
Credit standby arrangements

Total facilities
Bank loans
Bank overdrafts
Notes/Committed liquidity facilities
5,100
5,100
250,000
285,000
590,100
675,100
245,000
225,000
Used at balance date

Bank loans
Bank overdrafts
193,325
207,626
438,325
432,626
90,000
160,000
Unused at balance date

Bank loans
Bank overdrafts
The figures in the above tables for financing arrangements are principal amounts only.
The bank loan facilities were $385 million at 31 March 2012 and had maturity dates in October 2012 ($155 million),
October 2013 ($105 million) and April 2014 ($105 million) and April 2015 ($20 million). However, this has been
reported as $335 million due to the expectation that the Finance business will elect, post balance date, to reduce
surplus facilities by $50 million which are maturing in October 2012.
The committed liquidity facilities were $285 million as at 31 March 2012 and mature on 26 October 2012. However,
this has been reported as $250 million due to the expectation that the Finance business will elect, post balance date,
to reduce surplus facilities by $35 million. On 23 April 2012, the maturity date of the committed liquidity facility was
extended from 26 October 2012 to 29 April 2013.
5,100
5,100
56,675
77,374
151,775
242,474
P139
(f) Fair value

The fair values of Finance business borrowings are:
31 MARCH 2012
31 MARCH 2011
Carrying
Carrying
Fair value
amount
Fair value
amount
$000
$000
$000
$000
Bank loans
245,507
245,531
224,837
224,870
Notes
194,097
194,112
134,805
134,861
73,861
73,883
111,362
111,937
140,412
141,320
550,966
551,580
573,915
574,934
Onbalance sheet

Debentures
(i) Onbalance sheet

The fair value of Bank loans for the year ended 31 March 2012 was based on cash flows discounted using a borrowing rate of 3.9% (2011 4.0%).
The fair value of Notes is based on cash flows discounted using borrowing rates averaging 3.4% based on the maturity
date of those Notes (2011 averaging 3.7%).
The fair value of the Committed liquidity facility for 31 March 2011 was based on cash flows discounted using a
borrowing rate of 3.7%.
The fair values of Debentures are based on cash flows discounted using borrowing rates varying from 5.8% to 7.7%,
depending on the maturity date of those debentures (2011 5.0% to 7.8%).
(ii) Contingent liabilities
There were no interest bearing contingent liabilities as at 31 March 2012 (2011 Nil).
(g) Priority of claims
In the event the Finance business was liquidated or ceased trading, bank loans and debentures rank equally as to
the priority of claims over the assets of the Charging Group. The Notes and the liquidity facility are secured over the
Finance receivables and cash & cash equivalents held by the special purpose entity RFS Trust 20061.
(h) Interest rate risk
For an analysis of the sensitivity of Finance business borrowings to interest rate risk refer to Note 5.
P140
21 TRADE CREDITORS
CONSOLIDATED
Trade creditors
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
96,560
99,141
96,560
99,141
(a) Foreign currency risk

The carrying amounts of the Groups trade creditors are denominated in the following currencies
CONSOLIDATED
New Zealand dollars

Australian dollars
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
10,656
17,001
5,642
8,569
United States dollars
27,703
21,423
Euros
26,154
31,118
Thai baht
25,385
19,737
58
622
851
554
111
117
96,560
99,141
Canadian dollars
British pounds
Other
For an analysis of the sensitivity of trade creditors to foreign currency risk refer to Note 4.
P141
22. PROVISIONS
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
-
Current
Employee benefits
Warranty
Redundancy
76
76
14,577
17,028
284
4,866
Onerous contracts
699
544
Other
267
409
20,485
18,341
Product support
Total current provisions

Noncurrent
Employee benefits
8,987
8,166
Warranty
3,694
4,751
Onerous contracts
2,302
776
592
502
15,575
14,195
36,060
32,536
Other provisions
Total noncurrent provisions
Total provisions
(a) Employee benefits

Current
In certain jurisdictions, the Group is required to accrue for accumulating shortterm benefits such as sick leave.
Noncurrent
Provision is made for both vested and unvested long service leave accruing to employees. Vested long service leave
is calculated on unused entitlements according to Group policy and unvested long service leave is calculated on an
actuarial basis taking into account future entitlements under Group policy. Key assumptions in the actuarial model
include:
__
Discount rate: 4.09% (2011 5.71%)
__
Exit rate: Variable (2011 Variable)
__
Promotion rate: 0.50% (2011 0.50%)
__
Wage/salary inflation rate: 3.00% (2011 3.50%)
The method for calculating the exit rate assumed in the actuarial model uses exit rate patterns which vary according
to length of service and a mix of exponential decay formulae in addition to straightline assumptions and excludes
the extreme values in the historical data.
(b) Warranty
Provision is made for estimated warranty claims in respect of products sold which are still under warranty at balance date. The majority of these claims are expected to be settled within the next 24 months but this may extend
to 10 years for washing machine motor components. Management estimates the present value of the provision
based on historical warranty claim information and any recent trends that may suggest future claims could differ
from historical amounts.
The warranty provision has been discounted using an interest rate of 3.61% (2011 4.25%).
(c) Product support
Provision is made for costs to support older products sold in previous years which are outside warranty periods.
The provision recognised is based on estimated costs to address product issues.
P142
22. PROVISIONS (CONTINUED)

(d) Onerous contracts
In the year ended 31 March 2012, additional provision was made for the estimated unavoidable costs associated with
a warehouse lease in Chicago, USA. This is expected to be paid out in the years ending 31 March 2013 through 2016.
(e) Other
Other noncurrent provisions as at 31 March 2012 includes a $0.5 million (2011 $0.4 million) dilapidations provision
associated with the onerous warehouse lease adjustment referred to in (d) above.
(f) Movements in provisions
Movements in each class of provision during the financial year are set out below:
Employee
Warranty Redundancy
benefits
$000
Product
Onerous
Other
support
contracts
provisions
$000
Total
$000
$000
$000
$000
$000
284
1,320
911
32,536
(88)
(38)
(1,476)
2012
Carrying amount at start of year
8,242
21,779
(150)
(1,200)
2,046
19,808
4,866
2,585
10
29,315
(997)
(22,147)
(284)
(774)
(17)
(24,219)
(78)
31
(42)
(7)
(96)
9,063
18,271
4,866
3,001
859
36,060
Warranty Redundancy
Product
Onerous
Other
Total
support
contracts
provisions
Change in discounted amount arising from passage of time

and effect of any change in the discount rate
Carrying amount at end of year
Employee
benefits
$000
$000
$000
$000
$000
$000
$000
34,331
2011
Carrying amount at start of year
8,440
23,703
1,410
350
428
119
381
40
550
861
19,802
461
1,279
484
22,887
(917)
(22,076)
(1,627)
(317)
(3)
(24,940)
Change in discounted amount arising from passage of time
(261)
(31)
(292)
8,242
21,779
284
1,320
911
32,536
and effect of any change in the discount rate

Carrying amount at end of year
P143
23. OTHER LIABILITIES

CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
280
Employee entitlements
24,051
25,119
144
Other creditors
37,924
48,092
246
217
384
323
384
323
62,359
73,534
774
820
Directors retirement allowances
Employee entitlements include a statutory termination indemnity obligation (TFR) for employees of the Groups
Italian operating subsidiary refer Note 30(2). Also included within employee entitlement are liabilities for employee
leave entitlements, wage & salary withholdings and wages & salaries payable.
24. DEFERRED TAX LIABILITIES

CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
The balance comprises temporary differences attributable to:

(1,259)
(876)
4,925
5,629
Intangible assets
2,940
4,008
(1,028)
(1,203)
(43)
(532)
75
(155)
5,610
6,871
6,871
27,730
80
(371)
(19,487)
329
(426)
Foreign exchange differences
(864)
(129)
Other movements
(807)
(446)
Closing balance at 31 March
5,610
6,871
Provisions
Tax credits
Other temporary differences
Net deferred tax liabilities
Movements:
Opening balance at 1 April
Charged/(credited) to the Income Statement (Note 9)
Transfer to Deferred tax assets
Prior period adjustment
Expected settlement
Within 12 months
(295)
(109)
in excess of 12 months
5,905
6,980
5,610
6,871
P144
25. OTHER NONCURRENT LIABILITIES

CONSOLIDATED
Accrued rent expense

Retirement benefit obligation
PARENT
31 March
31 March
31 March
2012
2011
2012
2011
$000
$000
$000
$000
2,436
1,919
526
345
61
61
2,962
2,325
61
Directors retirement allowances
31 March
(a) Accrued rent expense

In certain jurisdictions where the Group operates, operating lease agreements for land & buildings contain periodic
fixed rental increases. The associated lease payments are recognised on a straightline basis resulting in an accrued
rent expense.
(b) Retirement benefit obligation
Further details of the Groups retirement benefit obligation are provided at Note 30.
26. CONTRIBUTED EQUITY

(a) Movements in ordinary share capital:
Opening balance of ordinary shares authorised and issued

Issue of ordinary shares during the year
Closing balance of ordinary shares issued
31 March
31 March
31 March
2012
2011
2012
2011
Shares
Shares
$000
$000
724,235,162
724,235,162
841,869
841,869
724,235,162
724,235,162
841,869
841,869
(b) Ordinary shares

All shares issued are fully paid and have no par value. All ordinary shares rank equally with one vote attached to
each fully paid ordinary share.
(c) Capital risk management Appliances business & Parent
The Companys objective when managing capital is to safeguard its ability to continue as a going concern, so that
it can continue to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal
capital structure to reduce the cost of capital after taking into consideration the cyclical nature of the industry.
In order to maintain or adjust the capital structure, the Companys options include adjusting the amount of dividends
paid to shareholders, returning capital to shareholders, issuing new shares or selling assets to reduce debt.
The Appliances business manages capital risk by ensuring there is an adequate amount of headroom above the
minimum requirements of the banking covenants. The principal indicator used is the Total Leverage Ratio, which is
calculated as Net Debt divided by Normalised operating earnings before Interest, Tax, Depreciation and Amortisation
of the Guaranteeing Group (refer Note 19). Net Debt is calculated as total borrowings less cash & cash equivalents
(excluding the Finance business).
The capital risk management policy for the Appliances business is to maintain the Total Leverage Ratio below 2.5 times
compared to the current maximum permitted level under the Guaranteeing Groups banking facilities of 3.0 times.
31 March
(d) Capital risk management Finance business

The Finance business objective when managing capital is to safeguard its ability to continue as a going concern,
so that it can continue to provide returns to its shareholder and to maintain a strong capital base to support the
development of its business.
Fisher & Paykel Finance Limited
The level and mix of capital in Fisher & Paykel Finance Limited (the Charging Group) is determined by the Finance
business Board taking into account the requirements of the Debenture Trust Deed (under which the Charging Group
issues debentures) and financial covenants contained in the syndicated banking facility documentation.
The syndicated banking facility documentation contains a minimum capitalisation covenant, under which:
__
(i) the ratio of net tangible assets to total tangible assets must not be less than 12.0%.
The Charging Group has fully complied with this covenant during all periods reported.
During the reporting period the Charging Groups Debenture Trust Deed was amended to incorporate a new capital
adequacy covenant in compliance with the Part 5D of the Reserve Bank of New Zealand Act 1989 and the Deposit
Takers (Credit Ratings, Capital Ratios, and Related Party Exposures) Regulations 2010.
Under the terms of this covenant the Charging Groups minimum capital ratio should not be less than:
__
(a) 8%, for as long as Fisher & Paykel Finance Limited has a credit rating, or
__
(b) 10% at all other times
The Charging Group has complied with this minimum capital ratio covenant since it came into force on 1 December
2010. As at 31 March 2012, the capital ratio was 15.3%.
During the year ended 31 March 2012, Fisher & Paykel Finance Limited increased its share capital by $13.5 million
to $86.3 million.
Fisher & Paykel Financial Services Limited
Fisher & Paykel Financial Services Limited is the company that owns and operates the Famers Finance business,
which is funded under a master trust securitisation programme.
The securitisation programme requires a minimum level of credit enhancement that is provided by way of a subordinated loan from Fisher & Paykel Financial Services Limited. The minimum level of credit enhancement is the
greater of 7.5% (2011 7.5%) of receivables or the amount established by applying a dynamic credit enhancement
calculation. 31 March 2012 was 8.7%.
Fisher & Paykel Finance Holdings Limited
Whilst there are no minimum levels of capital required in Fisher & Paykel Finance Holdings Limited, capital is maintained at a level to ensure compliance with the Finance business capital management objectives outlined above.
P145
P146
27. EARNINGS PER SHARE
Basic and diluted earnings per share (cents)
31 March
31 March
2012
2011
2.5
4.6
31 March
31 March
(a) Reconciliations of earnings used in calculating earnings per share
2012
2011
$000
$000
18,431
33,545
31 March
31 March
Basic earnings per share

Profit attributable to the ordinary equity holders of the Company used in calculating basic and diluted earnings per share
(b) Weighted average number of shares used as the denominator
Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share
2012
2011
Number
Number
724,235,162
724,235,162
724,235,162
724,235,162
Adjustments for calculation of diluted earnings per share

Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted earnings per share
28. ACCUMULATED LOSSES AND RESERVES

CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
-
(a) Reserves
512
512
Foreign exchange cash flow hedge reserve
1,013
(11,350)
Sharebased payments reserve
1,970
1,970
1,970
1,970
(90,861)
(50,370)
(1,330)
(1,260)
(88,696)
(60,498)
1,970
1,970
Treasury stock
Foreign currency translation reserve

Interest rate cash flow hedge reserve
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
Opening balance
512
512
Balance 31 March
512
512
Movements:
Treasury Stock
In the Parent Company financial statements, amounts showing as Treasury Stock in the Group financial statements
are recorded as share capital. This increases share capital in the Parent Company by $512,000 at balance date (2011
$512,000).
P147
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
(11,350)
(3,213)
12,363
(8,137)
1,013
(11,350)
Movements:
Hedging reserve cash flow hedges
Opening balance
Recognised income & expense
Balance 31 March
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
Movements:
Sharebased payments reserve
Opening balance
1,970
1,970
1,970
1,970
Balance 31 March
1,970
1,970
1,970
1,970
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
Movements:
Foreign currency translation reserve
Opening balance
(50,370)
(40,018)
Translation differences arising during the year
(40,491)
(10,352)
Balance 31 March
(90,861)
(50,370)
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
Movements:
Interest rate cash flow hedge reserve
Opening balance
Recognised income & expense
Balance 31 March
(1,260)
(70)
(1,260)
(1,330)
(1,260)
P148
28. ACCUMULATED LOSSES AND RESERVES (CONTINUED)

(b) Nature and purpose of reserves
(i) Treasury Stock
Treasury stock is used to recognise those shares held and controlled by Fisher & Paykel Appliances Employee Share
Purchase Trustee Limited.
(ii) Foreign exchange hedge reserve
The cash flow hedge reserve is used to record gains or losses on a hedging instrument in a forward foreign currency
cash flow hedge that are recognised directly in equity. Amounts are recognised in profit and loss when the associated hedged transaction affects profit and loss.
(iii) Sharebased payments reserve
The sharebased payments reserve is used to recognise the fair value of options granted but not exercised and
discounted employee share scheme entitlements.
(iv) Foreign currency translation reserve
Exchange differences arising on translation of foreign operations are taken to the foreign currency translation reserve.
When any net investment is disposed of, the related component of the reserve is recognised in profit and loss.
(v) Interest rate hedge reserve
The interest rate hedge reserve is used to record gains or losses on a hedging instrument in an interest rate hedge
that are recognised directly in equity. Amounts are recognised in profit and loss when the associated hedged transaction affects profit and loss.
When a forecast transaction is no longer expected to occur or becomes ineffective, the cumulative gain or loss that
was deferred in equity is immediately transferred to the Income Statement.
(c) Accumulated losses
CONSOLIDATED
Opening balance
Net profit for the year
Closing balance
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
(166,423)
(199,968)
(107,122)
(107,269)
18,431
33,545
54
147
(147,992)
(166,423)
(107,068)
(107,122)
29. IMPUTATION CREDITS

31 March
31 March
2012
2011
$000
$000
Balance at beginning of year
1,746
1,635
Tax payments, net of refunds
(1,009)
69
42
737
1,746
Direct Fisher & Paykel Appliances Holdings Limited Imputation Group
737
1,746
Balance at end of year
737
1,746
Other adjustments
Balance at end of year
Imputation credits are available to shareholders as follows:
P149
30. DEFINED BENEFIT OBLIGATIONS

The Group has two defined benefit schemes, one in New Zealand and one in Italy. These are presented separately below.
(1) Superannuation Scheme New Zealand
All New Zealand employees of the Group are entitled to benefits from the Groups superannuation scheme on retirement, disability or death. Previously, the New Zealand scheme consisted of a defined benefit plan and a defined
contribution plan.
The defined benefit plan provided lump sum benefits based on years of service and final average salary and has
been closed to new members for several years. On 1 October 2006, all except 30 members transferred from the
defined benefit plan to a new defined contribution master trust plan. There are 14 members remaining in the plan
as at 31 March 2012.
The remaining obligation is largely in respect of certain defined benefit guarantees provided to members who
transferred from the defined benefit plan to the new defined contribution master trust plan and is fully provided
for as at 31 March 2012.
The defined contribution plan receives fixed contributions from Group companies and the Groups legal or constructive obligation is limited to these contributions.
The following tables set out details in respect of the defined benefit liabilities only.
(a) Statement of Financial Position amounts
The amounts recognised in the Statement of Financial Position are determined as follows:
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
830
767
(519)
(536)
Present value of unfunded obligations
311
231
Adjustment for ESCT*
153
114
Net liability in the Statement of Financial Position
464
345
Present value of the defined benefit obligation

Fair value of defined benefit plan assets
*ESCT Employer Superannuation Contribution Tax
(b) Categories of plan assets

The major categories of plan assets are as follows:
CONSOLIDATED
PARENT
31 March
31 March
31 March
31 March
2012
2011
2012
2011
81
78
10
Debt instruments
10
Property
100
100
Cash
Equity instruments
P150
30. DEFINED BENEFIT OBLIGATIONS (CONTINUED)

(c) Reconciliations
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
Reconciliation of the present value of the defined benefit obligation, which is partly funded:
767
662
Current service cost
33
27
Interest cost
26
24
264
250
(260)
(196)
830
767
Actuarial gains & losses

Benefits paid
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
536
371
27
22
(19)
(2)
Contributions by Group companies
83
180
Contributions by plan participants
152
161
(260)
(196)
519
536
Reconciliation of the fair value of plan assets:

Expected return on plan assets
Benefits paid
(d) Amounts recognised in Income Statement

The amounts recognised in the Income Statement are as follows:
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
-
Current service cost
33
27
Interest cost
26
24
(27)
(22)
Net actuarial losses (gains) recognised in year
283
252
Total included in employee benefits expense
315
281
12
23
Actual return on plan assets
P151
(e) Principal actuarial assumptions

The principal actuarial assumptions used (expressed as weighted averages) were as follows:
CONSOLIDATED
PARENT
31 March
31 March
31 March
31 March
2012
2011
2012
2011
Discount rate
2.94%
4.11%
-%
-%
5.00%
5.00%
-%
-%
Future salary increases
3.00%
4.00%
-%
-%
The expected rate of return on assets has been based on historical and future expectations of returns for each of the
major categories of asset classes as well as the expected and actual allocation of plan assets to these major categories.
(f) Historic summary
31 March
Defined benefit plan obligation

Plan assets
31 March
2012
2011
$000
$000
830
767
(519)
(536)
311
231
ESCT
153
114
Deficit
464
345
Experience adjustments arising on plan liabilities
264
250
Experience adjustments arising on plan assets
(19)
(2)
(2) Termination Indemnity (TFR) Italy

TFR is a mandatory severance pay plan for employees of Italian entities. A lump sum payment is provided in any
case of employment termination (e.g. dismissal, voluntary resignation, disability, death).
Every year, the employee accrues 6.91% of his/her salary. The accrual is fully employer sponsored. The amount accrued at the beginning of the year is revalued at the end of the year by an index stated as follows: 1.5% plus 75% of
the actual inflation rate. The revaluation is reduced net of an 11% tax rate.
Advance payments can be made for house purchase and medical expenses, subject to certain conditions.
Pursuant to legislation enacted on 1 January 2007, the future annual accrual for companies with over 50 employees
was transferred either to an external pension fund or to the State fund held by INPS (Instituto Nazionale Previdenza
Sociale) and meets the definition of a defined contribution plan. However, the TFR liability accrued prior to 1 January 2007 remains in the Statement of Financial Position of the Groups Italian operating subsidiary (Fisher & Paykel
Appliances Italy S.p.A.) and meets the definition of a defined benefit plan.
P152
30. DEFINED BENEFIT OBLIGATIONS (CONTINUED)

The following tables set out details in respect of the defined benefit liabilities:
(a) Statement of Financial Position amounts
The amounts recognised in the Statement of Financial Position are determined as follows:
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
Present value of the defined benefit obligation
3,686
3,912
Net liability in the Statement of Financial Position
3,686
3,912
(b) Reconciliations
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
Reconciliation of the present value of the defined benefit obligation, which is partly funded:
3,912
4,218
Interest cost
187
182
397
(315)
Benefits paid
(306)
(105)
Foreign currency exchange rate changes
(504)
(68)
3,686
3,912
(c) Amounts recognised in Income Statement

The amounts recognised in the Income Statement are as follows:
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
Interest cost
187
182
Total included in employee benefits expense
187
182
P153
(d) Principal actuarial assumptions

The principal actuarial assumptions used (expressed as weighted averages) were as follows:
CONSOLIDATED
PARENT
31 March
31 March
31 March
31 March
2012
2011
2012
2011
Discount rate
4.00%
5.50%
-%
-%
2.00%
2.00%
-%
-%
Future salary increases
2.00%
2.00%
-%
-%
(e) Employer contributions

Employer contributions to the TFR defined benefit plan ceased on 31 December 2006.
(f) Historic summary
31 March
31 March
2012
2011
$000
$000
Defined benefit plan obligation
3,686
3,912
Deficit
3,686
3,912
P154
31. CONTINGENCIES
Periodically, the Group is party to litigation including product liability claims. To date, such claims have been settled
for relatively small amounts, which have either been expensed or covered by insurance.
32. COMMITMENTS
(a) Capital commitments
Capital expenditure contracted for at balance date but not recognised as liabilities is as follows:
CONSOLIDATED
Property, plant and equipment
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
5,153
4,719
5,153
4,719
The above balances have been committed in relation to future expenditure on capital projects. Amounts already
spent have been included as work in progress in the current year results.
(b) Lease commitments
(i) Operating leases
These relate mainly to building occupancy leases under noncancellable operating leases expiring within 15 years. The
leases have varying terms, escalation clauses and renewal rights. On renewal, the terms of the leases are renegotiated.
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
Within one year
22,073
24,947
Between one and two years
18,969
22,962
Between two and three years
15,648
18,286
Between three and four years
12,336
15,197
Between four and five years
9,448
11,595
49,496
58,971
127,970
151,958
Commitments for minimum lease payments in relation to noncancellable operating leases are payable as follows:
Over five years
(ii) Finance leases

The Appliances business has no finance leases as at 31 March 2012 (2011 carrying value of plant & equipment under
finance lease of $0.1 million).
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
Within one year
17
Minimum lease payments
17
P155
The weighted average interest rate implicit in the finance leases is N/A (2011 4.5%).
(c) Undrawn lending commitments (Finance business)
Undrawn lending commitments include unutilised Q Card, Farmers Finance Card and fixed instalment limits, which
can be unconditionally cancelled by the Finance business at any time.
CONSOLIDATED
Undrawn lending commitments
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
1,819,864
1,775,323
P156
33. INVESTMENTS IN SUBSIDIARIES

The Parent Companys investment in subsidiaries comprises shares at cost plus sharebased payments expensed by
the Finance business. The assets and liabilities attributed to Fisher & Paykel Appliances Holdings Limited are owned
by the following subsidiaries:
NAME OF ENTITY
COUNTRY OF INCORPORATION
PRINCIPAL ACTIVITY
EQUITY HOLDING
2012
2011
AF Investments Limited*
New Zealand
Nontrading holding company
100
100
Fisher & Paykel Appliances Employee Share Purchase
New Zealand
Employee share purchase scheme
100
100
Fisher & Paykel Appliances Limited*
New Zealand
Manufacture & distribution of appliances
100
100
Fisher & Paykel Production Machinery Limited*
New Zealand
Machinery manufacturer
100
100
New Zealand Export Corporation Limited*
New Zealand
Contract manufacture of appliances
100
100
Allied Industries Limited*
New Zealand
100
100
Fisher & Paykel Australia Holdings Limited*
Australia
100
100
Fisher & Paykel Australia Pty Limited*
Australia
Distribution of appliances
100
100
Fisher & Paykel Manufacturing Pty Limited*
Australia
Manufacture of appliances
100
100
Fisher & Paykel Customer Services Pty Limited*
Australia
Servicing of appliances
100
100
Fisher & Paykel Appliances (USA) Holdings Inc*
USA
100
100
Fisher & Paykel Appliances Inc*
USA
100
100
Trustee Limited
Appliances business
Dynamic Cooking Systems Inc*
USA
100
100
Fisher & Paykel Laundry Manufacturing Inc*
USA
100
100
Fisher & Paykel Appliances Canada Inc*
Canada
100
100
Fisher & Paykel Appliances Mexico, S. de R.L. de C.V.*
Mexico
Contract manufacture of appliances
100
100
Fisher & Paykel Appliances Limited*

Fisher & Paykel Appliances Italy Holdings S.r.l.*
UK
100
100
Italy
100
100
Italy
Manufacture & distribution of appliances
100
100
Singapore
100
100
Thailand
100
100
New Zealand
100
100
New Zealand
Consumer & bulk finance
100
100
100
Fisher & Paykel Appliances Italy S.p.A.*

Fisher & Paykel (Singapore) Pte Limited*
Fisher & Paykel Appliances (Thailand) Co. Ltd*
Finance business
New Zealand
Securitisation services
100
Consumer Finance Limited
New Zealand
Consumer finance
100
100
Consumer Insurance Services Limited
New Zealand
Consumer insurance & extended warranty
100
100
Equipment Finance Limited
New Zealand
Commercial finance
100
100
Retail Financial Services Limited
New Zealand
Consumer finance
100
100
*Fisher & Paykel Appliances Holdings Limited together with the companies above marked with an asterisk are the companies in the Security Trust Deed (refer note 19).
All subsidiaries have a balance date of 31 March, except for Fisher & Paykel Appliances Mexico, S. de R.L. de C.V.,
which has a balance date of 31 December to comply with local regulations.
The activities of Retail Financial Services Limited are funded through a master trust securitisation structure established on 8 May 2006. This structure allows for the creation of multiple, separate, standalone trusts. The first trust
created under the master trust structure was the RFS Trust 20061 (the Trust). Fisher & Paykel Financial Services
Limited is the residual income and capital beneficiary of the Trust. The financial statements of the Trust have been
consolidated in the Groups financial statements.
P157
Fisher & Paykel Appliances (Thailand) Co. Ltds immediate parent is Fisher & Paykel (Singapore) Pte Limited (486,198
ordinary shares). Thai law requires a minimum of three shareholders, therefore in accordance with normal practice,
two ordinary shares are also held individually by Company executives.
34. SHAREBASED PAYMENTS

(a) Executive Long Term Incentive Plan
The Board approved a new Long Term Incentive Plan (the Plan) for selected executive managers, effective 1 October
2011. The Plan is designed to secure the retention of key executives and is focused on achieving the objective of
long term shareholder wealth creation.
Under the Plan, phantom options are granted to participants from time to time. The phantom options are not securities issued by the Company and should a phantom option become exercisable, it will be settled in cash.
The phantom options become exercisable three years after the grant date provided Total Shareholder Returns per
annum for Fisher & Paykel Appliances Holdings Limited are equal to or greater than a compound annual posttax
rate of 13.8% for the preceding three year period. The Total Shareholder Return of 13.8% per annum includes a 1
percentage point stretch component above the Companys assessed cost of equity.
Phantom options remain exercisable for a period of two years from the date that they become exercisable.
The maximum amount payable to a participant on the exercise of phantom options shall not exceed an amount equal
to five times the aggregate grant value of those phantom options.
The phantom options will lapse if a participate ceases to be an employee of the Company. However should that occur
by reason of injury, ill health, permanent disability, death or redundancy the Board may at its discretion determine
that the phantom options will not lapse.
Set out below is a summary of phantom options granted under the Plan:
31 MARCH 2012
Expiry date
Balance
Granted
Vested
Lapsed
at start
during
during
/forfeited
Balance
at end
of the year
the year
the year
during
of the year
Number
Number
Number
Number
Number
10,473,192
10,473,192
the year
GRANT DATE
01/10/11
30/09/16
The assessed fair value of the Plan was $848,000 as at grant date and $865,000 as at 31 March 2012. The fair value
was derived using a 250period binomial options pricing model and the following inputs:
__
(a) Grant date: 1 October 2011
__
(b) Issue price : $0.463 (based on the volume weighted average share price over the 20 days immediately
preceding the grant date)
__
(c) Share price on grant date: $0.45
__
(d) The Phantom options were granted for no consideration
__
(e) Exercisable date: 30 September 2014
__
(f) Lapse date: 30 September 2016
__
(g) Assumed cost of equity: 12.8%
__
(h) Assumed stretched cost of equity:13.8%
__
(i) Volatility: 31.9% annualised
__
(j) Expected dividends: market consensus
__
(k) Riskfree interest rate: 3.57% continuous compounding
P158
34. SHAREBASED PAYMENTS (CONTINUED)

(b) Executive Long Term Performance Incentive
The Board has an executive longterm performance incentive scheme (the Scheme) for selected senior managers
to link their remuneration with shareholder returns and encourage those employees to hold and retain shares in the
Company. Payment of any benefit is dependent on remaining employed during the vesting period and also on the
Groups total shareholder return exceeding the 75th percentile of the total shareholder return (including imputation
credits) of a comparative group of companies over a three year vesting period.
Entitlements are granted under the Scheme for no consideration. At the end of the vesting period, the Group will pay
a cash bonus to the participating employees equivalent to half their allocated entitlement, which should be used to
buy shares in the Company onmarket (subject to Insider Trading rules) unless the employees personal shareholding
(calculated at current market values) is greater than 50% of their annual fixed remuneration. To the extent performance
targets have been met, up to half of the allocated entitlement will also be paid as a cash bonus to the participating
employee and this should be used to buy shares onmarket (subject to Insider Trading rules) unless the employees
personal shareholding (calculated at current market values) is greater than 50% of their annual fixed remuneration.
If employment ceases prior to the vesting date due to death, serious illness, accident, permanent disablement or redundancy, the Board will make a pro rata payment or other such payment as may be determined at their sole discretion.
Set out below is a summary of movements in the number of shares attached to cash benefits granted under the Scheme:
31 MARCH 2012
Grant Date
01/10/08
Expiry date
30/09/11
Balance
Granted
Vested
Lapsed
Balance
at start of
during the
during the
/forfeited
at end of
the year
year
year
during the
the year
Number
Number
Number
Number
Number
635,000
(605,000)
(30,000)
Balance
Granted
Exercised
Lapsed
Balance
at start of
during the
during
/forfeited
at end of
the year
year
the year
during the
the year
Number
Number
Number
Number
Number
720,000
(40,000)
(45,000)
635,000
319,000
(319,000)
1,039,000
(359,000)
(45,000)
635,000
31 MARCH 2011
Grant Date
Total
Expiry date
01/10/08
30/09/11
01/07/07
30/06/10
Entitlements associated with the Scheme implemented effective 1 October 2008 matured on 30 September 2011 resulting
in a cash payment of approximately $226,000 for the retention component and $Nil for the performance component.
(c) Employee Share Scheme
No employee share offers were in operation during the years ended 31 March 2012 or 2011.
As at 31 March 2012 203,316 shares (2011 203,316) were held by the Trustee, being 0.03% (2011 0.03%) of the Groups
issued and paid up capital. No shares are allocated to employees (2011 Nil) as there is no current offer under the
Scheme. All shares are allocated to employees at the time of issue, on the condition that should they leave the
Company before the qualifying period ends, their shares will be repurchased by the Trustees at the lesser of market
price and the price at which the shares were originally allocated to the employee, subject to the repayment of the
original loan. Any such repurchased shares are held by the Trustees for allocation to future issues under the Scheme.
P159
(d) Expenses arising from sharebased payment transactions

Total expenses arising from sharebased payment transactions recognised during the period as part of employee
benefit expense were as follows:
CONSOLIDATED
Expenses in relation to Executive LongTerm Incentive Plan

Expenses in relation to Executive LongTerm Performance Incentive
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
144
144
(250)
25
(280)
25
(106)
25
(136)
25
35. RECONCILIATION OF PROFIT AFTER INCOME TAX TO NET CASH INFLOW

FROM OPERATING ACTIVITIES
CONSOLIDATED
Profit for the year after income tax
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
18,431
33,545
54
147
Add/(deduct) noncash items:

Depreciation of property, plant & equipment to recoverable amount
22,477
24,234
Amortisation of intangible assets
18,149
16,659
Impairment loss on property, plant & equipment
Impairment loss on intangible assets
Fair valuation adjustments

Loss/(gain) on sale of noncurrent assets
Finance business bad debts written off
Movement in accrued interest
Net (increase) in loans and advances to customers
Movement in provisions
1,241
500
76
(6,300)
12,782
20,983
275
(558)
(6,077)
(6,741)
3,427
(1,675)
Movement in tax
640
6,435
(82)
104
Movement in payables and accruals
408
(17,568)
(106)
(361)
Movement in debtors and other current assets
22,920
29,986
Movement in inventories
43,336
10,533
(647)
2,288
275
774
(136)
25
(136)
25
(1,022)
(1,699)
Fair value adjustment/reclassification to derivative financial instruments

Fair value adjustments to other financial assets
Noncash sharebased payments expense
Internal cash flow from financing activities
Foreign currency exchange translation
(26,872)
(6,959)
Net cash inflow / (outflow) from operating activities
110,705
106,161
(1,292)
(1,784)
P160
36. DISCLOSURE OF COMPONENTS OF OTHER COMPREHENSIVE INCOME

CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
(40,491)
(10,352)
(Gains) arising during the year
(2,211)
(27,519)
Reclassification adjustments for losses included in profit or loss
19,284
12,478
17,073
(15,041)
Income tax relating to components of other comprehensive income
(4,780)
5,644
(28,198)
(19,749)
Other comprehensive income:

Exchange differences on translating foreign operations
Cash flow hedges:
The Appliances business has substantial foreign operations with assets and liabilities denominated in functional currencies other than the New Zealand dollar (NZD). The value of these investments, when translated to NZD, fluctuates
with exchange rate movements. Due to the appreciation of the NZD during the year ended 31 March 2012 (refer
Note 41) a $40.5 million adverse translation difference has arisen (2011 loss of $10.4 million).
37. DISCLOSURE OF TAX EFFECTS RELATING TO EACH COMPONENT

OF OTHER COMPREHENSIVE INCOME
Before tax
Tax
Netoftax
amount
(expense)/
amount
benefit
$000
$000
$000
(40,491)
(40,491)
17,073
(4,780)
12,293
(23,418)
(4,780)
(28,198)
(10,352)
Consolidated
31 March 2012
Cash flow hedges
Other comprehensive income
31 March 2011
(10,352)
Cash flow hedges
(15,041)
5,644
(9,397)
(25,393)
5,644
(19,749)
Other comprehensive income
38. GOVERNMENT GRANTS

The Appliances business has received funding for selected research & development activities from the Foundation
for Research, Science & Technology (FRST now merged into the Ministry of Science & Innovation), a Crown Agent
that invested in such activities on behalf of the New Zealand government. The detailed nature and extent of this
funding is commercially sensitive. FRST grant funding of $0.3 million was recognised in the financial statements for
the year ended 31 March 2012 (2011 $Nil).
P161
39. RELATED PARTY TRANSACTIONS

(a) Key management personnel compensation
The key management personnel are the Directors of the Company, the Directors of the Finance business and the
Executive teams of both the Appliances and Finance businesses.
Compensation of key management personnel for the years ended 31 March 2012 and 31 March 2011 was as follows:
Shortterm
Post
Other
benefits employment
benefits
Termination Sharebased
benefits
payments
Total
benefits
longterm
$000
$000
$000
$000
$000
$000
2012
8,635
418
121
49
9,223
2011
7,372
330
57
(2)
7,757
Where there have been changes of key management personnel during the years ended 31 March 2012 and 31 March
2011, remuneration for these employees has been appropriately allocated on a prorata basis.
(b) Other transactions with key management personnel or entities related to them
Information on transactions with key management personnel or entities related to them, other than compensation,
are set out below.
(i) Other transactions and balances
Key management personnel invested cash in debenture stock issued by the Finance business during the period.
The debenture stock was acquired on the same terms & conditions that applied to other investors at the time the
investments were made.
During the year the company sold household appliances to key management personnel on the same terms and
conditions as available to all staff.
The Chairman of the Finance business board, Mr John Gilks, is a director and shareholder of Receivables Management
(NZ) Limited, a company which provides debt collection services to the Finance business. The services are provided
on normal commercial terms and conditions.
(c) Subsidiaries
Interests in subsidiaries are set out in Note 33.
(d) Parent Company
As at 31 March 2012, the Parent company had advanced funds to Group companies of $637.6 million (2011 $637.6
million). These intraGroup advances are interest free and repayable on demand.
(e) Transactions with related parties
Haier Group Corporation is a related party owing to its 20% shareholding in the Parent Company.
P162
39. RELATED PARTY TRANSACTIONS (CONTINUED)

The following transactions occurred with Haier Group Corporation (and its associated entities) during the years
ended 31 March 2012 and 2011:
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
Sales of goods
5,383
11,598
Sales of services
1,506
1,330
6,889
12,928
Sales of goods and services
CONSOLIDATED
PARENT
31 March
31 March
31 March
2012
2011
2012
31 March
2011
$000
$000
$000
$000
32,273
33,579
32,273
33,579
287
188
287
188
287
188
287
188
Purchases of goods
Purchases of goods
Other transactions
Directors fees and travel costs paid to subsidiaries of Haier Group Corporation
(f) Outstanding balances with related parties

The following balances are outstanding at balance date in relation to transactions with Haier Group Corporation:
CONSOLIDATED
PARENT
31 March 31 March
31 March 31 March
2012
2011
2012
2011
$000
$000
$000
$000
Current receivables (sales of goods and services)
3,751
1,432
Current receivables (other)
1,930
10,124
2,482
Current payables (purchases of goods and services)
Current Receivables (other) reflects the estimated costs of Product Support reported as part of Provisions (refer
Note 22) related to Haier manufactured product and which Haier Group Corporation has agreed to indemnify the
Company for. The indemnity shall not exceed actual costs.
No allowances for impairment have been raised in relation to any outstanding balances and no expense has been
recognised in respect of bad or doubtful debts due from Haier Group Corporation.
(g) Terms & conditions of related party transactions
All transactions were made on normal commercial terms & conditions and at market rates.
Outstanding balances are unsecured and are repayable in cash.
P163
40. EVENTS OCCURRING AFTER THE STATEMENT OF FINANCIAL POSITION DATE

On 23 April 2012, the maturity date of the RFS Trust 2006-1 Committed liquidity facility in the Finance business was
extended from 26 October 2012 to 29 April 2013.
41. FOREIGN CURRENCY EXCHANGE RATES

31 March
31 March
2012
2011
Australian dollar
0.7879
0.7353
United States dollar
0.8193
0.7587
Euro
0.6137
0.5369
NZ$1.00 =
25.28
22.98
Mexican peso
10.4751
9.0597
British pound
0.5129
0.4715
Thai baht
COMPANY
INFORMATION
P166
FIVE YEAR TREND STATEMENT (UNAUDITED)

NZ$000 except where stated otherwise
2012
2011
2010
2009
2008
Total operating revenue
1,031,168
Net profit after taxation
18,431
1,110,342
1,157,029
1,359,531
1,399,709
33,545
(83,328)
(95,254)
54,212
26,300
30,040
17,950
33,780
65,545
Before movement in Finance business receivables
116,782
112,902
87,602
9,380
83,672
Movement in Finance business receivables
(6,077)
(6,741)
(49,978)
(23,096)
(63,650)
Group
Normalised net profit after taxation1

Cash flow from operations
110,705
106,161
37,624
(13,716)
20,022
1,453,686
1,558,414
1,652,199
1,996,354
1,830,224
Basic
2.5
4.6
(13.6)
(33.1)
19.1
Diluted
2.5
4.6
(13.6)
(33.1)
18.7
5.0
18.0
891,449
965,053
1,020,966
1,222,613
1,275,816
Total assets
Earnings per share (cents)
Dividends per share (cents)

Appliances business
Operating revenue
Operating profit before interest and taxation
7,347
28,801
(103,779)
(85,522)
68,432
3,935
(5,126)
133,198
141,092
14,832
Normalised operating profit before interest and taxation
11,282
23,675
29,419
55,570
83,264
1.3%
2.5%
2.9%
4.5%
6.5%
664,136
751,522
858,059
1,232,237
1,051,612
139,719
145,289
136,063
136,918
123,893
37,814
34,722
28,904
21,086
26,143
(6,774)
745
Normalised operating margin2

Assets employed
Finance business
Operating revenue
Operating profit before interest and taxation3
Normalised operating profit before interest and taxation
Finance receivables
1 Excludes items affecting comparability
2 Normalised operating profit to operating revenue
3 Includes operating interest
31,040
34,722
28,904
21,086
26,888
594,532
601,595
615,693
587,326
584,931
P167
EMPLOYEE REMUNERATION
The Group operates in a number of countries where remuneration market levels differ widely. During the year, the
number of employees, not being Directors of Fisher & Paykel Appliances Holdings Limited, who received remuneration and the value of other benefits exceeding $100,000 was as follows:
REMUNERATION
NUMBER OF EMPLOYEES
2012
REMUNERATION
2011
Overseas New Zealand
NUMBER OF EMPLOYEES
2012
2011
100001-110000
15
61
33
38
340001-350000
110001-120000
24
27
26
26
350001-360000
120001-130000
23
25
31
16
360001-370000
130001-140000
22
18
12
11
380001-390000
140001-150000
13
15
11
390001-400000
150001-160000
15
12
400001-410000
160001-170000
410001-420000
170001-180000
15
420001-430000
180001-190000
440001-450000
190001-200000
450001-460000
200001-210000
460001-470000
210001-220000
470001-480000
220001-230000
480001-490000
230001-240000
500001-510000
240001-250000
510001-520000
250001-260000
520001-530000
260001-270000
550001-560000
270001-280000
570001-580000
280001-290000
590001-600000
290001-300000
600001-610000
300001-310000
660001-670000
310001-320000
730001-740000
320001-330000
790001-800000
330001-340000
P168
SHAREHOLDER INFORMATION
Size of Holdings
Number of
Number of
Holders
Ordinary
Shares
1 999
1,755
12.97
858,462
0.12
1,000-4,999
5,432
40.16
13,749,680
1.90
5,000-9,999
2,412
17.83
16,446,487
2.27
10,000-99,999
3,613
26.71
86,848,691
11.99
315
2.33
606,331,842
83.72
13,527
100.0
724,235,162
100.00
Over 100,000
Total
2,347 shareholders held less than a marketable parcel of shares as per the ASX Listing Rules 4.10.8.
The details set out above were as at 21 May 2012.
Substantial Security Holders
Pursuant to Section 35F of the Securities Markets Act 1988, the substantial security holders as at 21 May 2012 were
as follows:
Holder
Ordinary
Shares
Haier (Singapore) Management Holding Co. Pte Ltd (notice dated 6 July 2009)
144,847,032
Orbis Investment Management (Australia) Pty Ltd (notice dated 29 November 2011)
125,794,772
Accident Compensation Corporation Limited (notice dated 26 August 2011) [1] [2]
54,407,522
AMP Capital Investors (New Zealand) Limited (notice dated 20 March 2012)
37,458,541
[1] Including Nicholas Bangnall, an employee and portfolio manager of Accident Compensation Corporation Limited (notice dated 29 August 2011) 54,208,842 ordinary shares
[2] Including Blair Cooper, an employee and portfolio manager of Accident Compensation Corporation Limited (notice dated 29 August 2011) 54,239,166 ordinary shares
P169
Principal Shareholders
The names and holdings of the twenty largest registered shareholders as at 21 May 2011 were:
Holder
Ordinary
Shares
New Zealand Central Securities Depository Limited
226,306,217
31.24
Haier (Singapore) Management Holding Co Pte Limited
144,847,032
19.99
JP Morgan Nominees Australia Limited
40,234,019
5.55
National Nominees Limited
36,845,152
5.08
Citicorp Nominees Pty Limited
29,711,117
4.10
HSBC Custody Nominees (Australia) Limited
22,772,588
3.14
Superlife Trustee Nominees Limited (SL NZ A/C)
6,403,305
0.88
Irene Margaret Fisher & Michael John Fisher & Pravir Atindra Tesiram & NZ Guardian Trust Company Limited
5,425,328
0.74
FNZ Custodians Limited
4,851,636
0.66
Gary Albert Paykel & Dorothy Mary Paykel & Keith Raymond Rushbrook
4,183,320
0.57
Citicorp Nominees Pty Limited [Colonial First State Inv A/c]
3,691,734
0.50
New Zealand Depository Nominee Limited
3,411,951
0.47
Michael Walter Daniel & Nigel Geoffrey Ledgard Burton & Michael Murray Benjamin
2,100,000
0.28
Investment Custodial Services Limited (A/C R)
2,089,001
0.28
John Julian Aubrey Williams & Shirley Anne Williams & William Lindsay Gillanders
2,035,464
0.28
Investment Custodial Services Limited [A/c C]
1,911,688
0.26
Forsyth Barr Custodians Limited
1,753,762
0.24
Robert Michael Lerner & John Keith Radley
1,597,424
0.22
Michael John Fisher & Gurshon Fisher & The New Zealand Guardian Trust Company Limited
1,439,776
0.19
Custodian Services Limited
1,347,466
0.18
P170
New Zealand Central Securities Depository Limited provides a custodial depository service to institutional shareholders and does not have a beneficial interest in these shares. Its major holders as at 21 May 2012 were:
Holder
Ordinary
Shares
Accident Compensation Corporation
59,020,843
Custody and Investment Nominees Limited
30,878,890
JP Morgan Chase Bank NA
22,817,120
Citibank Nominees (New Zealand) Limited
20,961,347
AMP Investments Strategic Equity Growth Fund
17,085,025
HSBC Nominees (New Zealand) Limited A/c State Street
15,564,771
New Zealand Superannuation Fund Nominees Limited
11,761,720
NZGT Nominees Limited - AIF Equity Fund
8,567,439
Tea Custodians Limited
7,375,140
National Nominees New Zealand Limited
7,153,756
Premier Nominees Ltd Onepath Wholesale Australasian Shr Fund
6,423,553
Cogent Nominees (NZ) Limited
6,265,279
HSBC Nominees (New Zealand) Limited
3,591,610
Public Trust O/A Permanent Nominees Limited Tower NZ Equity Trust
2,566,207
Newburg Nominees Limited
2,231,940
Cogent Nominees (NZ) Limited
1,443,791
NZGT Nominees Limited AMP Capital NZ Shares Index Fund
717,100
AMP Custodians Services Limited
510,866
Premier Nominees Ltd Onepath Wholesale NZ Share Fund
498,332
Onepath (NZ) Nominees Limited
490,198
Private Nominees Limited
259,910
NZGT Nominees Ltd
78,530
Mint Nominees Limited
42,850
A number of these registered shareholders hold shares as nominees on behalf of other parties.
P171
Directors Shareholdings
Directors held interests in the following shares in the Company at 31 March 2012:
2012
2011
Ordinary
Ordinary
Shares
Shares
500,000
500,000
500,000 *
500,000
S B Broadhurst
Ordinary Shares
Beneficially Owned
J W Gilks (Retired 25 August 2011)
Ordinary Shares
Held by an Associated Person
P V Lough (Appointed 12 September 2011)
Ordinary Shares
22,936

P D Lucas (Retired 31 March 2012)
Ordinary Shares
200,000
200,000
4,183,320
4,183,320

G A Paykel
Ordinary Shares
* Holding as at date of retirement/resignation
Share Dealings by Directors

The Board has received no disclosures, in accordance with Section 148(2) of the Companies Act 1993, from Directors of acquisitions or dispositions of relevant interests in the Company between 31 March 2011 and 31 March 2012.
Subsidiary Company Directors
Section 211(2) of the Companies Act 1993 requires the Company to disclose, in relation to its subsidiaries, the total
remuneration and value of other benefits received by Directors and former Directors, and particulars of entries in
the interests registers, made during the year ended 31 March 2012.
The remuneration and other benefits of such employees (received as employees) totalling $100,000 or more during the
year ended 31 March 2012, are included in the relevant bandings for remuneration disclosed on page 167 of this report.
No employee of the Group appointed as a Director of the Companys subsidiaries receives or retains any remuneration or other benefits in their capacity as Director. Payments were made to persons who are not employees of the
Group for their directorships of subsidiary companies. John Gilks received $45,000 and Gary Paykel received $30,000
(of which $18,098 for Mr Gilks and $30,000 for Mr Paykel were included as part of their total remuneration as Directors of the Group outlined on page 59) and Carlos da Silva and Hugh Rennie, QC each received $53,268 for their
directorships in the Finance business companies. Boardroom Corporate & Advisory Services Pte Limited received
S$1,800 for providing a nominee director for the Companys wholly-owned subsidiary, Fisher & Paykel Singapore
Pte Limited, as required by Singaporean law.
The following persons respectively held office as Directors of the Companys subsidiaries at 31 March 2012:
AF Investments Limited
Stuart Broadhurst, Mark Richardson, Gary Paykel
Fisher & Paykel Appliances Limited
P172
Fisher & Paykel Production Machinery Limited

Allied Industries Limited
Fisher & Paykel Appliances Employee Share Purchase Trustee Limited
Mark Richardson, Dale Farrar
New Zealand Export Corporation Limited
Fisher & Paykel Australia Holdings Limited
Stuart Broadhurst, Mark Richardson, Michael Church, Timothy Kirkup, Roger Lonsdale-Cooper
Fisher & Paykel Finance Pty Limited
Fisher & Paykel Australia Pty Limited
Fisher & Paykel Manufacturing Pty Limited
Fisher & Paykel Customer Services Pty Limited
Fisher & Paykel Appliances Limited (UK)
Stuart Broadhurst, Mark Richardson, Craig Reid
Fisher & Paykel Appliances Italy Holdings S.r.l.
Stuart Broadhurst, Mark Richardson
Fisher & Paykel Appliances Italy S.p.A.
Stuart Broadhurst, Antonio Pilati
Fisher & Paykel (Singapore) Pte Limited
Stuart Broadhurst, Mark Richardson, Gary Paykel, Baey Cheng Song
Fisher & Paykel Appliances (Thailand) Co., Limited
Stuart Broadhurst, Mark Richardson, Gary Paykel, Roger Lonsdale-Cooper, Shaneel Prasad
Fisher & Paykel Appliances (USA) Holdings Inc
Dynamic Cooking Systems Inc
Fisher & Paykel Appliances Inc
Fisher & Paykel Laundry Manufacturing, Inc
Fisher & Paykel Appliances Canada Inc

Fisher & Paykel Appliances Mexico, S. de R.L. de C.V.
Stuart Broadhurst, Gary Paykel, Alastair Macfarlane, John Gilks, Carlos da Silva and Hugh Rennie
Consumer Finance Limited
Consumer Insurance Services Limited
Equipment Finance Limited
Retail Financial Services Limited
P173
P174
GENERAL DISCLOSURE OF INTEREST BY DIRECTORS

SECTION 140(2) COMPANIES ACT 1993
The Directors and Alternate Directors of Fisher & Paykel Appliances Holdings Limited named below have made
a general disclosure of interest, that has not been disclosed elsewhere in this Annual Report, by a general notice
disclosed to the Board and entered in the Companys interests register. General notices of interest were given by
these directors during the financial year ended 31 March 2012:
S B Broadhurst
Director of: Saratal Limited
a Shareholder in: Fisher & Paykel Appliances Holdings Limited
Liang Haishan
an Executive Officer of: Haier Group
P V Lough
Chairman of: Methven Ltd
Quotable Value
Deputy Chairman of: Port Nelson Limited
a Director of: Livestock Improvement Corporation
indirectly a
Shareholder in: Fisher & Paykel Appliances Holdings limited
P D Lucas (retired 31 March 2012)
L A C Marshall
Executive Director of: ABC Commercial Division, Australian Broadcasting Corporation
a Director of: Melbourne International Jazz Festival
G A Paykel
Chairman of: Fisher & Paykel Healthcare Corporation Limited
a Director of: ACG Capital (NZ) Limited
Atlantis Healthcare Limited
Endeavour Yachting Limited
Fisher & Paykel Healthcare Corporation Limited
Fisher & Paykel Healthcare Employee Share Purchase Trustee Limited
Howgate Holdings Limited
Keano Enterprises Limited
Lady Ruby Investments Limited
Levante Holdings Limited
New Zealand 93 Limited
Stonex Systems Limited
Team New Zealand Ltd
a Trustee of: Andsar Family Trust
Levante No. 2 Trust
Maurice Paykel Charitable Trust (Inc)
Maurice & Phyllis Paykel Trust (Inc)
Team New Zealand Trust
W J Roest
an Executive Officer of: Fletcher Building Limited
a Director of: Fletcher Building Limited Subsidiaries and Associated Companies
Housing Foundation Limited

New Zealand Housing Foundation
a Trustee of: Building Products Superannuation Fund Ltd
Crane Share Plan Pty Limited
Fletcher Building Nominees Limited
G E Crane Superannuation No 2 Pty Ltd
G E Crane Superannuation Pty Ltd
Penrose Retirement Nominees Limited
Rocla Group Superannuation Fund Pty Limited
Tan Lixia
an Executive Officer of: Haier Group
K S Turner
Chairman of: Waitaki Wind Limited
Solar City New Zealand Ltd
Deputy Chairman of: Auckland International Airport Limited
a Director of: Chorus Limited
Keith Turner & Associates Limited
Pacific Simulators 2010 Ltd
Spark Infrastructure Group and Subsidiaries
Alternate Directors
Tommy Leung
an Executive Officer of: Haier International Co. Ltd
Hou Xinlai
an Executive Officer of: Haier Electrical Appliances Corp. Ltd
Subsidiaries of Fisher & Paykel Appliances Holdings Limited
The Directors of the New Zealand subsidiaries of Fisher & Paykel Appliances Holdings Limited named below have
made a general disclosure of interest, that has not been disclosed elsewhere in this Annual Report, by a general notice
disclosed to the board of the relevant company and entered in the relevant interests register(s). General notices of
interest were given by these directors during the financial year ended 31 March 2012:
C M da Silva
a Director of: King St Advertising Limited
IT Partners Limited
IT Partners Group Limited
Trelise Cooper Group Limited
Trelise Cooper Property Limited
LGC Trustee Limited
Fisher & Paykel Finance Limited & Subsidiaries
Advisory Board of: Westervelt Sporting Lodges (NZ) Ltd
a Trustee of: Guarda Trust
Andrew Johnson Business Trust
Te Maunga Trust
Seguro Trust
Cabeca Trust
Coromandel Trust
Waikato Rental Trust
Homeopathic Trust
P175
P176
J W Gilks
Chairman of: Queenstown Airport Corporation
Receivables Management (NZ) Limited and Subsidiaries
Fisher & Paykel Finance Holdings Limited and Subsidiaries
a Director of: Business Mentors NZ Limited
Dublin Bay Investments Limited
Fundit Holdings Limited
H B Rennie
a Director of: Cooke Family Childrens Trust
Estate Michael Avigdor Hirschfeld
Harbour Chambers Limited
Hebare Trust
Hirschfield Custodian Nominees Limited
Michael Hirschfeld Family Trust
Michael Hirschfeld Childrens Trust
Theatre Arts Charitable Trust
NZ Institute of Chartered Accountants
Fisher & Paykel Finance Ltd
Directors Indemnity and Insurance
The Group has arranged, as provided for under its Constitution, policies of Directors and Officers Liability Insurance which, with a Deed of Indemnity, entered into with all Directors, ensures that generally Directors will incur no
monetary loss as a result of actions undertaken by them as Directors. Certain actions are specifically excluded, for
example, the incurring of penalties and fines, which may be imposed in respect of breaches of the law.
Use of Company Information
There were no notices from Directors of the Company requesting to use Company information received in their
capacity as Directors, which would not otherwise have been available to them.
Additional Information
The Company was incorporated in Auckland, New Zealand.
The Company is not subject to Chapters 6, 6A, 6B and 6C of the Corporations Act 2001 (Australia) dealing with the
acquisition of shares (ie substantial holdings and takeovers).
Limitations on the acquisition of securities imposed by the jurisdiction in which the Company is incorporated (New
Zealand) are:
__
a. In general, securities in the Company are freely transferable and the only significant restrictions in relation
to the acquisition of securities are those imposed by New Zealand laws relating to takeovers, overseas investment and competition.
__
b. The Takeovers Code creates a general rule under which the acquisition of more than 20% of the voting rights
in the Company, or the increase of an existing holding of 20% or more of the voting rights in the Company,
can only occur in certain permitted ways. These include a full takeover offer in accordance with the Takeovers
Code, a partial takeover offer in accordance with the Takeovers Code, an acquisition approved by an ordinary
resolution, an allotment approved by an ordinary resolution, a creeping acquisition (in certain circumstances)
or compulsory acquisition if a shareholder holds 90% or more of the shares in the Company.
__
c. The Overseas Investment Act 2005 and various Overseas Investment Regulations regulate certain investments in New Zealand by overseas persons. In general terms, the consent of the Overseas Investment Office is
likely to be required where an overseas person acquires shares or an interest in shares in the Company that
amount to more than 25% of the shares issued by the Company, or, if the overseas person already holds 25%
or more, the acquisition increases that holding.
__
d. The Commerce Act 1986 is likely to prevent a person from acquiring shares in the Company if the acquisition
would have, or would be likely to have, the effect of substantially lessening competition in a market.
The Companys securities are quoted on the NZX and ASX.

As at 21 May 2012, the Company has only one class of equity securities, being ordinary shares. Each of the Companys ordinary shares entitles the holder to one vote.
P177
P178
EXECUTIVE
Parent Company
Stuart Broadhurst Managing Director and Chief Executive Officer
David Sullivan Chief Financial Officer
Appliances Business
Stuart Broadhurst Managing Director
Brett Butterworth VP Components & Technology, Production Machinery Limited and Haier PMO
Andrew Cooke VP Supply Chain Management & Information Technology
Roger Cooper VP Operations
Dale Farrar VP Human Resources
Garry Moore VP Quality & Customer Services
Matthew Orr VP Corporate Planning & Investor Relations
Craig Reid Chief Sales & Marketing Officer
David Sullivan Chief Financial Officer
Daniel Witten-Hannah VP Product Development
Finance Business
Alastair Macfarlane Managing Director
Sarah Carstens Company Secretary & General Counsel
Adrian Lichkus Chief Risk Officer
Ian McGregor Chief Financial Officer
Sarah OConnor Chief Human Resources Officer
Greg Shepherd Chief Operating Officer
Colin Smith Chief Information Officer
DIRECTORY
Fisher & Paykel Appliances Holdings Limited
Registered Offices
New Zealand
78 Springs Road, East Tamaki, Auckland 2013, New Zealand
Australia
Weippin Street, Cleveland, Queensland 4163, Australia
Contact Details
New Zealand
Company Secretary Mark Richardson
PO Box 58546, Botany, Auckland 2163, New Zealand
Telephone: +64 9 273 0600
Facsimile: +64 9 273 0609
Australia
PO Box 798, Cleveland, Queensland 4163, Australia
Telephone: +61 7 3826 9100
Facsimile: +61 7 3821 2666
USA
5900 Skylab Road, Huntington Beach, CA 92647, USA
Telephone: +1 714 372 7000
Facsimile: +1 714 372 7002
United Kingdom
Maidstone Road, Kingston, Milton Keynes, MK10 0BD, UK
Telephone: +44 1908 585577
Facsimile: +44 1908 586235
Mexico
Blvd Montebello Lotes 1, 2, 3, Manzana 8, Col. Parque Industrial Colonial, Reynosa, Tamaulipas C.P 88780, Mexico
Telephone: +52 899 9217200
Facsimile: +52 899 9217299
Europe
Via Fabbian Matteo 7, Borso del Grappa, Treviso 31030, Italy
Telephone: +39 0423 9121
Facsimile: +39 0423 9124
Singapore
150 Ubi Avenue 4, #03-01A, Ubi Biz-hub, Singapore 408825
Telephone: +65 67482067
Facsimile: +65 65470123
Thailand
7/252, 7/282 Moo 6, Amata City Industrial Estate, Tambol Mapyangporn, Amphur Pluakdaeng, Rayong 21140, Thailand
Telephone: +66 38 640400
Facsimile: +66 38 650269
Internet Address
www.fisherpaykel.com
e-Mail
corporate.enquiries@fisherpaykel.com
Share Registry
New Zealand
Computershare Investor Services Ltd
Private Bag 92119, Auckland 1142, New Zealand
Telephone: +64 9 488 8777
Facsimile: +64 9 488 8787
Email: enquiry@computershare.co.nz
Australia
Computershare Investor Services Pty Ltd
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FP Report 2012

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FP Report 2012

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FISHER & PAYKEL

APPLIANCES HOLDINGS LIMITED

Managing Director and CEOs Review

Directors' Report and Corporate Governance

Notes to the Financial Statements

FISHER & PAYKEL APPLIANCES HOLDINGS LIMITED AND SUBSIDIARIES

NEW DIRECT DRIVE MOTOR AGREEMENT

FINANCE BUSINESS PERFORMANCETHE

AGREEMENT TO DEVELOP, DESIGN AND

FINANCE BUSINESS REPORTED A

MANUFACTURE DIRECT DRIVE WASHING

NORMALISED OPERATING PROFIT BEFORE

MACHINE MOTORS SIGNED IN

INTEREST AND TAX OF $37.8 MILLION

NORTH AMERICAN BUSINESS PROFIT

IMPROVED CASHFLOWCASHFLOW FROM

THE NORTH AMERICAN DISTRIBUTION

OPERATIONS, EXCLUDING THE MOVEMENT

AND SERVICES BUSINESS MADE AN

IN FINANCE LOANS WAS $117 MILLION

OPERATING PROFIT BEFORE INTEREST

COMPARED TO $113 MILLION LAST YEAR

AND TAX OF $0.9 MILLION

NEW PRODUCTSNEW PRODUCT

DEBT REDUCTIONAPPLIANCES NET

RELEASES INCLUDED THE PHASE 7

DEBT AS AT 31 MARCH 2012 WAS

DISHDRAWER, GAS ON GLASS COOK TOPS

AND THE DCS UNITED INDOOR COOKING

FISHER & PAYKEL APPLIANCES HOLDINGS LIMITED AND SUBSIDIARIES

Internationally recognised brand.

Research and Development centres based in

Fisher & Paykel Finance

FISHER & PAYKEL APPLIANCES HOLDINGS LIMITED AND SUBSIDIARIES

Dr Keith Turner, Chairman

FISHER & PAYKEL APPLIANCES HOLDINGS LIMITED AND SUBSIDIARIES

on profitable sales, notably in North America. Total

operating revenue for the Appliances business was

financial year ended 31 March 2012. This result com-

down 7.6% to $891 million compared to $965 million

pares to $33.5 million for the previous year.

for the previous year. This reflected weaker retail

market conditions, rebalancing for profitable sales and

lion before tax (Appliances business), a fair valuation

Gross margin, as a percentage of sales, increased

adjustment for property held for sale (Appliances

by 0.9 percentage points to 31.2%. Appliances gross

business) of $1.2 million before tax and litigation costs

margin in dollar terms decreased by $13.5 million to

of $6.8 million before tax (Finance Group). In aggre-

$278.4 million for the year ended 31 March 2012 as

gate these one off items resulted in a charge of $10.7

a result of lower sales and higher raw materials and

million before tax compared to a gain of $5.1 million

freight costs. Sales, general & administration costs

for the previous year.

reduced by $10.9 million to $215 million on cost sav-

ings, in particular in North America and favourable

Net bank debt as at 31 March 2012 was $65.2

actional hedging losses of $25.6 million, with $5.3

million compared to $100.2 million as at 31 March

million recorded in the second half following a mid

2011, excluding operating borrowings for the Finance

year change in hedging policy.