THE HILLS STORY

The History of the Hills company is well documented

It is one of Australia's biggest success stories; a story which has become part of Australian folklore.

It has captured the imagination and the hearts of the Australian people because it started with a regular bloke who had a simple idea.

THE FIRST 50 YEARS

A man called Lance Hill decided to make a less expensive rotary clothesline. Together with his brother-in-law Harold Ling, the two men started an Australian manufacturing enterprise destined to grow from a humble backyard operation into a multi-national company distributing a diverse range of products throughout the world.

In 1996, the company that began in the wash shed of a South Australian home celebrated its fiftieth year, as the remarkable story continues into the future.

THE LAUNCH OF THE 'HILLS HOIST'

In 1946, "The Hills Rotary Hoist" was launched, and the orders came rolling in. Salvage army trucks were purchased to keep up with deliveries. Progressively a galvanising plant, tube mill and plating plant were purchased to provide independence from outside vendors.

By 1948 the hoist was selling for 11 pounds - twice the average weekly wage - and was in such demand that the new Hills factory could scarcely keep pace.

AUSTRALIAN ENTERPRISE AT ITS BEST

1948 saw the launch of an expanded range of laundry products to supplement the hoist. Harold Ling was working long hours to take the company further. The enterprise already an industrial power in South Australia, wanted to go national. Harold Ling decided branches should be established in the Eastern States.

Under the guidance of the Board, Hills' activities were also being expanded overseas, with agencies being established in London and New Zealand.

In 1954 the company's activities were consolidated into new premises on South Road at Edwardstown on the former site of Pengelley's Coach Builders.

By the end of 1955 all Hills' activities were centralised and materials could now be directed towards mass production.

A NEW ERA OF TECHNOLOGY

Realising that television was on the way, Hills set up a research and development program in 1955, utilising their expertise and resource in tube manufacturing to design and produce a range of television antennae. Today Hills Industries is the largest antenna producer in this country.

1959 saw Hills enter yet another new field - that of television repair service, and 'Hills Telefix' was born, but this business was sold in 1996. By 1960 Hills Industries had become a major force in the television antenna field in Australia.

The range of consumer products was also growing, with a vast distribution network extending throughout the nation and overseas. The manufacture of children's play equipment became another important facet to the business, with steel tube production complementing Hills existing manufacturing expertise.

In the meantime the original "Hills Rotary Hoist" had evolved into a range of household clotheslines to cater for a new generation of Australians. The Frazer range of ironing boards and covers was added to the laundry range, and still new products kept coming.

Hills has continued to diversify through acquisition. Bailey Ladders, Kelso Wheelbarrows, Direct Alarm Supplies, Vicam CCTV Systems, Pacific Communications and K.Care Group are all examples of this strategy.

In April 2005, Hills acquired a 75% interest in the plastic rotational moulding business known as Team Poly. The Team Poly business, which is based at Lonsdale in South Australia, employs approximately 130 people and is involved primarily in the manufacture of water storage tanks, chemcial storage and septic and holding tank solutions, acquaculture tanks as well as Smartbar vehicle frontal protection systems and leisure deck pontoon systems.

In June 2005, Hills acquired Audio Telex Communications and Crestron Control Solutions. Audio Telex Communications is a leader in all segments of the professional audio and sound reinforcement markets in Australia and New Zealand. Creston Control Solutions is one of the world's leading manufacturers of advanced control and automation systems for integration and control of audio, video, computer and the Internet. These two companies complement and expand the offer of our Electronic Security and Entertainment Division's products.

In December 2005, Hills acquired the business of BSM, one of Queensland's leading rollformers. This completes a network of Fielders mainland branches across Australia.

In January 2006, Hills acquired the Toowoomba based business of Alquip. Alquip is a leading player in the aluminium scaffold industry. The business is complimentary to the Hills ladder business, trading as Bailey Ladders and Oldfield Ladders, and is part of the Hills strategy to provide the widest range of products to assist in compliance with State Working at Heights legislation.

April 2006 saw the acquisition of the Australian Audio Supplies business by Hills. Australian Audio Supplies are the exclusive Australian distributor of Mackie and Tapco audio products.

NEW STATUS AS A CULTURAL SYMBOL

In 1994, Hills celebrated the sale of its 5 millionth Hills hoist, an event the whole country stopped to recognise as a milestone. The "Hills Rotary Hoist" had become an emblem of Australian enterprise.

Today Hills employs over 2,000 Australians, and hardly a day goes by when Australians do not encounter a Hills product in their daily lives.

As a closing chapter of the first fifty years of the Hills Company, the 1996 Adelaide Festival of Arts chose the "Hills Rotary Hoist" as a symbol to promote and market their programme of cultural events to the world. Held high like a flaming torch, the hoist expressed a celebration of individual effort and Australian endeavour.

In a celebration of Australian Icons the familiar Hills Hoist was prominent in the closing ceremony of the Sydney 2000 Olympic Games. These were tributes to the significant role Hills products have played in becoming part of the Australian culture.

A NEW ERA BEGINS

Bob Hill-Ling was the first Cadet Engineer at Hills. He joined the Company in 1952, gaining his engineering degree from Adelaide University in 1957.

When Bob joined the Board of Hills Industries Limited in 1958 (which had first listed on the Stock Exchange earlier that year) the Company's sales were dominated by clotheslines. Seven years later in November 1965 at the age of 32, Bob became Chairman and Managing Director of Hills.

In that year turnover exceeded $10 million for the first time, the net profit was just over $300,000 and the market capitalisation was a little more than $3 million.

Sales are now in excess of $800 million, the net profit is over $36 million and the market capitalisation is over $750 million. This growth has been achieved while keeping debt to a modest level and continuin to pay high dividends to shareholders.

Under Bob's leadership as Managing Director and Chairman over 40 years the Company is now unrecognisable from the one that he joined.

Bob saw the need to move the Company into new fields so that it was not reliant on clothesline sales. By embracing new technology he was able to pioneer moves into television repair and television antennae and later into electronic security.

During Bob's years Hills has made many acquisitions and has at the same time disposed of many business operations. Some of the larger acquisitions that Bob encouraged include Bailey Ladders, Direct Alarm Supplies, Pacific Communications, Kelso Wheelbarrows, Woodroffe Industries and only recently Team Poly and Audio Telex.

Bob has always taken a fair and reasonable approach to his dealings with all stakeholders in the Company, including employees, suppliers, bankers and shareholders. His simple view has always been that the Company should act in the best interests of the majority.

While Hills has grown and diversified over those 40 years, Bob has always ensured that the doctrine of commonsense has applied.

In 1981 Bob was awarded an Officer of the Order of Australia for his services to Industry, recognising his long and valuable contribution. For many years Bob represented Hills on a number of Boards including Korvest, Radio Frequency Systems, the Australian Industry Group and the Engineering Employers Association of South Australia. He has always been a champion of employee share ownership firstly through the unique vehicle of Hills Associates, but also through wide spread Employee Share Plans. Well over 75% of Hills employees are now shareholders in Hills.

In November 1992, after 27 years as Managing Director, Bob handed the role of Managing Director over to David Simmons and became the non-executive Chairman.

Bob handed over the Chairmanship of Hills to his daughter Jennifer Hill-Ling following the AGM in October 2005. She will be continuing the family involvement in the Company since its inception.

More than anyone before him, Bob has left an indelible mark on Hills and its people. His contribution at Board level and his involvement with the business operations will be missed.

We welcome Jennifer Hill-Ling to the role of Chairman as the Company enters into the next chapter of its development.

TOWARD A NEW CENTURY OF PROGRESS

Hills long term success depends on the high quality of its products. That is why research and development are such important aspects of Hills' manufacturing operation today. It is commitment, innovation and advanced technology that will take the company into the new century, and into a new era of progress.

A QUALITY ENDORSED COMPANY RECOGNISED INTERNATIONALLY

Hills believe their long term success depends on the high quality of their products. This is why research and development are such important aspects of Hills' manufacturing operations.

The company is committed to the continual upgrading of their products, and to improved production performance and efficiency.

AUSTRALIAN PRODUCTS FOR AUSTRALIANS TO USE EVERY DAY

While Hills is a household name, many Australians do not realise how much the company has grown, or how diverse the Hills product range has now become. The acquisition of prominent Australian companies such as Bailey, Mote Kennett and Oldfields ladders, Kelso wheelbarrows, Homeguard Screen and Security doors, Direct Alarm Supplies, Vicam CCTV Systems, Pacific Communications, K.Care and Woodroffe Industries and diversification by investment in companies with activities complementary to Hills like Fielders, Orrcon Steel & Tube and Korvest has broadened Hills interests into a wide range of areas, in addition to their traditional base.

This strategy was continued in October 1999 when the Triton range of products was added to the stable of Hills products. As Hills product range evolved over the years, the Triton business was sold in May 2005.

See how many Hills' Group products you can recognise:

Hills products:

Clotheslines
Laundry Trolleys, Ironing boards and Clothes Airers
Playtime Trampolines, Gymsets, and Slides
Folding Beds
Garden and Household Sprayers
Security Screen Doors
Termite Traps

Wheel Barrows: Builders, General and Garden
Hand Trucks and Trolleys
Ladders: Domestic and Industrial
Scaffold Systems
Trestles and planks
Temporary Fencing
Concert Staging
Stairway Access and Access Ramps

Shower Commodes
Bathroom Toilet Aids
Bedroom Furniture
Mobility Equipment
Adjustable Seating
GrabRails
Patient Lifter
Flexi-carts
Shower Trolley
Ward Equipment
Theatre Equipment
Laundry and Cleaning Equipment
Physiotherapy Equipment
Mortuary Equipment

VHF/UHF Television Receiving Antenna and Ancillary Equipment
Microwave Antenna
Satellite Antenna and Receivers
Guyed, Winch-up and Free-standing Towers
Amplifiers and MATV Equipment
Steel Tubing: Round, Square, Rectangular and Oval Sections
Steel Flats and Angles
Steel Fence and Sign Posts
Domestic and Commercial Electronic Security Equipment
Closed Circuit Television Equipment and Systems

Steel Tubing Round, Square, Rectangular and Oval Sections
Steel Flats and Angles
Steel Fence ans Sign Posts
Roll Formed and custom made metal building products
Door Frames
Centenary Carports
Endurance Sheds
High precision metal products
Stainless Steel products

Hot Dip Galvanising
Ezy Strut cable and pipe support systems

Water Storage Tanks
Chemical Storage Tanks
Septic and Holding Tanks
Troughs
Smartbars
Pontoon Systems
Aquaculture Tanks

Australian Monitor Installation Series
Australian Monitor Pro Series
Beyerdynamic Microphone and Conference Systems
Lab Gruppen Power Amplifiers
MediaMatrix
Mipro Portable PA and Wireless Microphone Systems
Misco Ceiling Speakers
Peavey Architectural Acoustics
Rane Signal Processors and DJ Mixers
Soundsphere Speaker Systems
Sabine Feedback Exterminators and Wireless Systems
Turbosound Loudspeaker Systems
Touchpanel Media Centers
Touchpanels
Wall-Mounted Touchpanels
Wireless & Handhelds
Keypads
Control Solutions
Control PAKs
Audio Distribution
Video Distribution
Intercoms
Tuners
Digital Home Theatre
Lighting Solutions & Shade Control
HVAC & Humidity Control

Our high quality standard has been recognised with international certification as a 'Quality Endorsed Company'. This certification process is an accredited quality system that is recognised throughout the world, giving consumers an assurance of quality.

TAKING AUSTRALIAN ENTERPRISE TO THE WORLD

When Australians start making a name for themselves overseas, we all like to hear about it.

Hills Industries is one Australian name that is making it big, becoming familiar to people throughout the world. Hills ladders are used in Hong Kong and throughout South East Asia. Hills clotheslines are now used by people as far away as Wellington and London. In New Zealand, children play on Australian made Hills gym sets.

Trade links are now forged with many countries around the world.

Hills Industries, the company that began in an Australian backyard, is now an international company exporting Australian products to the world.

USING THE STRENGTH OF TOUGH AUSTRALIAN STEEL

Every year many thousands of tonnes of steel goes into making Hills consumer products........many million metres of steel tube every year. Hills subsidiary Orrcon, have their own tube making plants at O'Sullivan's Beach, South Australia and Salisbury, Queensland, where the steel arrives as huge coils of flat metal, each coil weighing about 10 tonnes. The coil is cut into strips, which are then rolled into shape and welded to form round tube. The tube is then shaped into its final appearance as round or square tube, and is delivered daily to Hills and many other manufacturers where it is turned into the products you will see in the stores tomorrow.

USING RESEARCH AND DEVELOPMENT TO ADVANCE AUSTRALIA

Hills have their own laboratories where they conduct research into new technologies that will improve their products or assist in the development of new products.

Hills have established a test site to test their antennae and subject them to conditions typical to those they will experience in intended use, while Hills factory research and technical department puts each Hills consumer product through intensive product testing.

From testing production materials such as paint and components to ensure they are up to standard, to testing product performance to ensure continued product quality, Hills attention to detail safeguards the quality of every Hills product.