re: Ann: Company Insight MD on recent USD265 ... LNC cost saving...

re: Ann: Company Insight MD on recent USD265 ...

LNC cost saving announcement

Verses what actually happened.


Annual report 2012 page 23
Operating Expenses
The Group experienced a significant increase in staff costs during the financial year with employee benefits expenses increasing
from $38,395,000 in 2011 to $51,548,000 in 2012. This increase reflected a full year of costs in the US following the ramp up in
operational and corporate support functions during the latter part of the 2011 financial year. As a result of the restructuring of the
Group into the four core business units in June 2012 and a focus on cost reduction, a total of 60 employees or positions were
made redundant in the US and Australia, with staff numbers in these locations reducing to 232 by the end of the financial year
(2011: 238). The redundancies are expected to save an estimated $4,500,000 per annum. Total staff numbers across the Group
decreased to 430 as at 30 June 2012 (2011: 464).
Total administration and corporate costs for the period increased from $57,550,000 to $74,743,000 reflecting the significant
increase in staff costs detailed above and administrative costs as a result of the continued global expansion of the business,
particularly in the United States with the acquisition