Glossary of Terms

A-IFRS

Australian equivalents to International Financial Reporting Standards.

Barrel (per barrel)

A measure used for oil production and sales. One barrel equals approximately 160 litres.

Caltex Refiner Margin (CRM)

CRM represents the difference between the cost of importing a standard Caltex basket of products to eastern Australia and the cost of importing the crude oil required to make that product basket. The CRM calculation basically represents: average Singapore refiner margin + product quality premium + crude discount / (premium) + product freight - crude freight - yield loss.

Capital expenditure

Investment in acquisition or improvement of long-term assets, such as property, plant or equipment.

EBITDA

Earnings before interest, tax, depreciation and amortisation.

EPA

Environment Protection Authority or equivalent state authority.

Hedge

A financial instrument to manage the risk created by price volatility for a commodity (such as crude oil) on a spot market. Buyers and sellers of the commodity may enter into long or short-term contracts at an agreed price.

Lost Time Injury Frequency Rate (LTIFR)

The number of injuries causing lost time for employees and contractors per million hours worked.

Major Spills

An accidental or unplanned spill or release to land, air or water that is of a volume sufficient to cause actual or likely harm to human health and/or damage to the environment; or has caused community outrage, e.g. numerous complaints (>10) and involvement of Regulatory Authorities; or a spill of hydrocarbon of a volume of 50 bbls/8000ltr (1 barrel = 160L) or greater to land; or any spill of hydrocarbon to a body of water (e.g. river, lake, marine). A spill includes any accidental or unplanned release that:

• Escapes from primary containment (intended container) onto a surface, or to air, water or land.
• Escapes from primary containment (intended container) into secondary containment not associated with routine operating practices, scheduled maintenance or authorised discharge.
• Results from company owned and/or operated transport of oil products.

RCOP

The replacement cost of sales operating profit (RCOP) excludes the impact of the rise or fall in oil prices (a key external factor) and presents a clearer picture of the company's underlying business performance. It is calculated by restating the cost of sales using the replacement cost of goods sold rather than the historical cost, including the effect of contract based revenue lags.