Beyond international
AnnuAl RepoRt
Chasing Monsters
2
contents
4
Chairman’s report
6
managing DireCtor’s report
12
Corporate governanCe
20
BoarD of DireCtors
21
DireCtors’ report
35
auDitor’s inDepenDenCe DeClaration
36
finanCial statements
80
DireCtors’ DeClaration
81
inDepenDent auDitor’s report
83
shareholDer information
85
Corporate DireCtory
2015
BEYOND INTERNATIONAL
ANNUAL REPORT
3
Beyond InternatIonal AnnuAl RepoRt 2015 chairman’s report
On behalf of the Directors of Beyond
International Ltd (ASX code: BYI) I am
pleased to highlight some of the main
issues and achievements that occupied
the Director’s attention during the
last financial year to 30th June 2015
particularly those that may effect
future growth and expectations. Mr
Mikael Borglund deals with the 2015
operational financial results of each
of our four divisions in his Managing
Director’s Report,
Overall 2014-15 financial year was
a busy year for Beyond with major
changes in all divisions driven partly
by changing market conditions,
new technology and the emergence
of major new content distribution
platforms in key markets. These
trends are expected to accelerate and
have already significantly changed
the traditional business models for
Beyond’s in house content production
and are extending to the distribution
businesses of Beyond Distribution
and Beyond Home Entertainment.
The critical mass achieved in
streaming video on demand (SVOD)
by Netflix, Amazon, Hulu and others
initially in the USA and spreading
rapidly to other major markets has
disrupted many established regulatory
regimes, geographical boundaries
and industry rules and practices that
have operated in some countries
since the introduction of free-to-air
television. These changes present
great challenges and opportunities for
content producers and aggregators
particularly those like Beyond with
established international networks and
expertise operating in major markets.
On the other hand the increased
competition and uncertainty caused
partly by the sheer scale of new
technological changes and new
business models with reserves of
capital that are not concerned with
profitability has challenged many of
Beyond’s traditional clients in most
markets. Your Directors expect this
restructuring in Beyond’s major
markets to continue for some time.
The Directors believe these
new circumstances will provide
opportunities for each of Beyond’s
operating divisions to break out from
its historical levels of activity. We are
looking for opportunities to grow each
of the divisions, internally, by joint-
venture and by acquisition.
Table 1 is a 10 year summary of some
key performance indicators of Beyond
International and is prepared to assist
shareholders to put annual results in
perspective. The Directors currently
expect the 2015-16 EBIT and NPAT
to improve over 2014-15 however it
is too early in the financial year to be
accurate or reliable so Directors will
comment further on progress when the
Half Yearly results to 31st December,
2015 are released to the ASX in late
February, 2016.
The Directors have announced a 2015
Final Dividend of 5 cents per share
to be paid on 16th October 2015 to
all shareholders registered on 18th
September, 2015. This follows an
Interim Dividend of 5 cents per share
paid on 20th April, 2015 making a
total of 10 cents per share for the
2014-15 financial year. Directors expect
to maintain the Interim and Final
Dividend at this level in 2015-16.
The Directors thank all the individuals
who have contributed to the continued
success of Beyond. We are very aware
of the increasing challenges that
dealing daily in multiple time zones,
languages and regulatory regimes
present and value the knowledge,
commitment and courtesy that is
usual within Beyond.
For and on Behalf of the Board,
Ian Ingram
8th September, 2015.
BeyonD international limiteD ten year results
eBit
$000’s
net profit
$000’s
eps
(Cents per
share)
nta
per share
total
equity
$000’s
return on
equity
DiviDenDs
(Cents per
share)
4,818
6,524
7,483
5,047
6,205
8,178
10,190
10,841
8,837
7,870
3,100
4,340
4,992
4,280
4,939
5,099
8,463
9,273
7,975
5,885
5.26
7.27
8.36
7.28
8.40
8.67
14.39
15.12
13.00
9.59
41.32
45.61
43.03
42.40
42.63
45.22
48.33
59.00
64.58
64.28
26,702
28,705
28,220
28,964
30,384
31,377
11.61%
15.12%
17.69%
14.78%
16.26%
16.25%
36,249
23.35%
42,074
22.04%
45,639
17.47%
3.00
4.00
5.00
5.00
6.00
6.00
6.00
7.00
9.00
45,490
12.94%
10.00
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
4
CHAIRMAN’S REPORT 2015 Highway Thru Hell
5
Beyond InternatIonal AnnuAl RepoRt 2015 managing Director’s report
finanCial performanCe for the 12 month perioD to 30th June 2015
• Operating revenue increased by 1.6% to $91,172,000;
• Net profit after tax and before outside equity interests decreased 26.6% to $5,885,000;
• Earnings per share has decreased by 26.2% to 9.59 cents;
• EBIT for the period has decreased by 28.3% to $5,964,000;
• Net cash flows from operating activities decreased by 8.7% to $8,135,000 from $8,907,000;
• Net cash reduced by $582,000 to $10,403,000 and the Company has no bank debt.
fy 2015
$ 000’s
fy 2014
$ 000’s
varianCe $
$ 000’s
varianCe
%
Operating Revenue
Expense
Operating EBIT
Non-operating Items
Additional Amortisation
Restructuring Costs
EBIT
Net Interest Income
Profit Before Tax
Tax Expense
Profit After Tax
OEI
Net Profit
EPS (Cents per Share)
Dividends per Share (cents)
NTA
91,172
89,772
1,400
(83,302)
(80,935)
7,870
8,837
(2,367)
(967)
(1,906)
–
(1,906)
–
5,964
49
6,013
(128)
5,885
–
5,885
9.59
10.00
64.28
(516)
8,321
228
8,549
(537)
8,012
(37)
7,975
13.00
9.00
64.58
1.6%
2.9%
(10.9%)
–
–
(28.3%)
(78.5%)
(29.7%)
(76.1%)
(26.6%)
516
(2,357)
(179)
(2,536)
409
(2,128)
37
(100.0%)
(2,091)
(3.41)
1.00
(0.30)
(26.2%)
(26.2%)
11.1%
(0.5%)
6
MANAGING DIRECTOR’S REPORT 2015
revieW of operations By segment for the finanCial year enDeD 30th June 2015
Revenue
Productions & Copyright
Home Entertainment
Distribution
Digital Marketing
Total Revenue
OPERATING EBIT
Productions & Copyright
Home Entertainment
Distribution
Digital Marketing
Corporate
7Beyond Joint Venture
Foreign Exchange Gain / (Loss)
Operating EBIT
Non Operating Items
Home Entertainment
Digital Marketing
Copyright
EBIT
NMF – Not a meaningful figure
fy 2015
$ 000’s
fy 2014
$ 000’s
varianCe $
$ 000’s
varianCe
%
33,270
22,463
22,612
12,828
91,172
9,360
1,827
2,420
132
(5,818)
(560)
509
7,870
–
–
(1,906)
5,964
31,494
24,606
23,080
10,592
89,772
9,423
2,395
3,171
(531)
(5,938)
(239)
556
8,837
(398)
(118)
–
8,321
1,776
(2,143)
(468)
2,236
1,400
(63)
(568)
(751)
663
120
(321)
(47)
(967)
398
118
(1,906)
(2,357)
5.6%
(8.7%)
(2.0%)
21.1%
1.6%
(0.7%)
(23.7%)
(23.7%)
NMF
2.0%
NMF
(8.4%)
(10.9%)
100.0%
100.0%
–
(28.3%)
Minuscule
7
Beyond InternatIonal AnnuAl RepoRt 2015 1. television proDuCtions
anD Copyright segment
Segment revenue increased by
$1,776,000 or 5.7% to $33,270,000
compared to the prior year. The
number of programmes in production
at any point in time is subject to
the commissioning process, and the
timing of commissions is outside the
Company’s control. In the financial year
ended 30 June 2015, the Company
experienced an increase in the number
of projects in production. During the
2015 financial year, over 206 hours of
television commenced production,
with 38 hours commissioned by
US broadcasters.
The segment EBIT of $9,360,000
was 0.5% lower than the $9,423,000
reported in the 2014 financial year.
The decline in EBIT was due to
a review of the carrying value of
capitalised production costs, with
additional amortisation of $1,895,000
recognised in the financial year.
Copyright income (included in total
segment revenue above) increased
slightly by $28,000 to $6,242,000
compared to FY2014.
US broadcast commissions produced
during the period include returning
series Deadly Women series 9, Facing
Evil 6 and the 11th season of MythBusters.
New titles include Self Shot Survival,
Shark Island, Exodus and a number of
pilots for the 7Beyond joint venture that
were fully funded by US broadcasters.
Australian program commissions
during the period included Blood &
Thunder: The Sound of Alberts, Deep
Water 2, Santos Tour Down Under,
Dazzle or Die, Fanshaw & Crudnut,
and season 8 and season 9 of
Selling Houses Australia.
The 12 months to June has seen a rapid
increase in the penetration of video
on demand platforms in a number of
important territories throughout the
world. As noted in the Chairman’s report
this development is causing disruption
to the traditional free to air and cable
tv program commissioning models.
Companies such as Netflix, Hulu,
Amazon and Youtube are bringing with
them both challenges and opportunities
for the production business. Additional
program commissioning opportunities
are emerging with the new media
platforms – including a demand for
programming aimed at children and
teens. The demand for high-end
animation is increasing as a result of the
video on demand platforms focusing on
the children’s market as a subscription
driver. Beyond is well placed to
capitalize on this market segment,
with two animation series currently
in production.
The strategic focus for the coming
12 months includes:
• targeting buyers who value our
ability to co-produce and co-finance;
• strengthening relationships with
“new media” outlets;
• capitalizing on strong relationships
with existing clients and within our
proven genre strengths; and
• early adoption of new technology
to gain market leadership and
reputation. This includes the
production of Ultra High Definition
(4k) content as well as Virtual
Reality content to augment linear
content production.
2. home entertainment
segment (Bhe)
Revenue decreased by 9% to
$22,463,000 (2014: $24,606,000)
compared to the corresponding
12-month period.
The segment EBIT (including non-
operating items) decreased by 23.7%
to $1,827,000 compared to $2,395,000
in the 2014 year.
To counter this decrease, BHE has
broadened its digital distribution
channels, to complement its physical
media business, and is now an accredited
content ingestion partner for local and
international territories with Netflix,
Apple iTunes and Google Play. The BHE
digital business achieved revenues of
$1.1m in FY15 which was a 220% increase
on the corresponding 12-month period.
In 2015 BHE performed strongly within
its strategic market categories. The
business continues to gain market share
in its target genres and as at 30th June
2015 holds:
• Number one market share in sport;
• Number one market share in stand
up comedy;
• Number one market share in
factual television;
• Number two market share in
documentary content (up from
#3 last year); and
• Number four market share in
children’s (down from #3 last year).
BHE was successful in acquiring and
launching market leading content in 2015
including two television series Australia:
The Story of Us and Catching Milat, both
broadcast on the Seven Network and a
collector’s gift set from Australia’s number
one stand-up comedian Carl Barron.
To complement the existing portfolio of
content, BHE will launch Carl Barron’s
first feature film Manny Lewis and two
significant drama series which will
be broadcast on the Seven Network
in 2015/16: 800 Words starring Erik
Thomson (Packed to the Rafters) with
Bridie Carter (McLeod’s Daughters) and
Peter Allen – Not The Boy Next Door
starring Joel Jackson (Deadline Gallipoli),
Sigrid Thornton (Underbelly: The Golden
Mile, SeaChange) and Rebecca Gibney
(Packed to the Rafters, Winter). Both
series are expected to be high rating
event programming in Seven’s schedule.
In August 2015, BHE acquired a new
key licensor in the AFL. The AFL will
complement and grow significantly the
company’s already impressive sports
label which includes: NRL, NBA, V8
Supercars (including Bathurst), ESPN,
UFC, A-League, and Wimbledon.
3. DistriBution tv
anD film segment
Revenue reduced by $468,000 or
2% to $22,612,000 compared to the
corresponding 2014 period. Period
EBIT declined 24% to $2,420,000
compared to $3,171,000 in the
corresponding 2014 period.
Lower EBIT was a result of higher
costs increased as a result of re-
allocating costs previously attributed
to corporate, particularly in relation to
accounting and administration services
($218,000), the impact of a declining
Australian dollar against the British
pound ($90,000) and an increase
in provisions against distribution
guarantees ($150,000).
Third party programs are primarily
sourced from independent producers
in the US, UK and Canada. Product
focus continues to be factual series,
documentaries, family and children’s
programs as there is a steady demand
for these genres from broadcasters
throughout the world. With the
proliferation of media platforms
– both over the air, cable and on
the web – channels are becoming
increasingly focused on specific
audience demographics when
acquiring content.
8
MANAGING DIRECTOR’S REPORT 2015
During the year significant sales for
third party producers were achieved
for Highway Thru Hell, Love It or List
It, Airshow and BBQ Crawl and both
MythBusters and Deadly Women from
Beyond Productions.
The share of revenue by third party
produced programmes continues
to rise with a large volume of new
episodes of existing series; third party
revenue is now at 58% – a 4% point
rise on 2014.
Traditional cable broadcasters are still
strong worldwide and this combined
with the growth of Video on Demand
(OTT) platforms will have a positive
impact on revenues in this division
in the future.
This year has also seen a return
to quality genre specific factual
programming at many of the networks,
which will benefit Beyond’s distribution
activities as the quality of third party
programmes increases. With the
increase in quality there will be more
of an international market for these
factual programming.
Consolidation within the industry has
increased in 2015, with independent
production companies being acquired
by major distributors/producers.
There has been significant corporate
activity in the sector including the
acquisition of All3Media by Discovery
Communications and the Endemol,
Shine and Core merger.
There are now fewer medium sized
independent producers/distributors
active in the international market
than at any time in the modern era
– and this is an advantage to the
medium sized entities in attracting
new product and customers as these
companies offer an alternative to
the dominance of the handful of
large entities that dominate the
international content business.
4. Digital marketing segment
Full year revenues for BeyondD were
$12,828,000 21% up on last year’s total
of $10,592,000.
The operating result for the 12 months
was a profit of $132,000 against an
operating loss of $649,000 for the
corresponding period last year.
The year was underpinned by a
consistent flow of digital production
revenues from key clients in Australia
and an improvement in the search
consulting business in New Zealand.
Both the Australian and New Zealand
search operations refocused their
search operations into a new service
offering around conversion rate
optimization. This enabled the business
to secure new clients as well as retain
existing clients.
The lead generation and performance
media section of BeyondD had a more
difficult year. The market in these
offerings is very competitive and
continues to be subject to competitive
undercutting which negatively
impacts profitability
Management continue to implement
initiatives to increase digital inventory
and publisher partnerships to improve
lead generation revenues.
At the end of the 2015 financial year
management decided to bring the two
divisions of the digital business closer
together with the establishment of a
unified performance media offering.
A Head of Performance Media was
hired and charged with this unification
process. A secondary aim of this
decision is that it will enable the
business to better attract and
retain quality staff.
The business continues to work closely
with other divisions in the Beyond
group. Websites were produced for
Beyond Productions’ feature films
and the Home Entertainment and
Distribution divisions were serviced
in the maintenance and production
of digital assets.
With the continued vigilance on cost
structure and expected continued
success of the production and
consulting business, management
expects that the business will continue
the improvement in profitability that
was shown in FY 14/15 in the coming
12 months.
5. 7BeyonD Joint venture
The 7Beyond joint venture started
operations in September 2013 and
FY2015 was the first full year of
operations. The Group’s share of
operating costs to June 2015 was
$560,000. The venture had a number
of projects in development during the
year, with one, My Dream Lottery Home,
being commissioned by HGTV in the
United States.
The joint venture has a deep slate of
projects in development and is actively
working with US broadcasters to
develop and produce new programs
for the US market.
9
Beyond InternatIonal AnnuAl RepoRt 2015 NRL
10
MANAGING DIRECTOR’S REPORT 2015
foreign exChange – impaCt on results
The Group has significant exposure to
foreign exchange fluctuations in the
television production and distribution
operating segments with over 40% of
Group revenues derived from overseas.
In the normal course, the company
hedges production costs denominated
in US$. Foreign currency contracts
entered into by the distribution
segment are generally not hedged.
business segments in the 2014 and
2015 reporting periods.
There continued to be volatility in the
currency markets during the reporting
period, with the Australian dollar
ranging from a high of $0.938 to a low
of $0.772 against the US dollar. This
volatility is reflected in the different
The total foreign exchange gain
for FY2015 is $509,240 (2014: gain
$556,149). This gain is allocated to
the operating segments as follows:
item
segment
June 2015
June 2014 movement $ movement %
Realised Gain/(Loss).
Distribution/TV
353,904
(181,235)
Unrealised Gain/(Loss)
Distribution/TV
Mark to market revaluation
of Currency Hedges (Loss)
Other*
Unrealised Gain
Other
Other Gain
total fx (gain) / loss
87,098
(86,798)
112,447
42,588
509,239
96,969
330,120
277,931
32,364
556,149
535,139
(9,871)
(416,917)
(165,484)
10,224
(57,133)
295%
10%
126%
60%
(32%)
(10%)
* The Australian dollar expense component of US dollar denominated production contracts are hedged when the contracts are entered into.
DiviDenD
The Directors have determined to
maintain the 2015 (financial year) Final
Dividend at 5 cents (unfranked) per
share. Shareholders registered on the
books on 18 September 2015 will be
entitled to this dividend, which will
be paid on 16 October 2015.
A 5 cent per share (unfranked) 2015
Interim Dividend was paid on 17 April
2015 making the total dividend for
the 2015 financial year 10 cents per
share (unfranked).
Mikael Borglund
CEO & Managing Director
27 August 2015
11
Beyond InternatIonal AnnuAl RepoRt 2015
corporate governance statement
Love It Or List It UK
12
CORPORATE GOvERNANCE STATEMENT 2015
beyond international limited
and its controlled entities
abn 65 003 174 409
corporate Governance statement, 30 June 2015
This Corporate Governance Statement of Beyond International Limited (the ‘company’) has been prepared
in accordance with the 3rd Edition of the Australian Securities Exchange’s (‘ASX’) Corporate Governance
Principles and Recommendations of the ASX Corporate Governance Council (‘ASX Principles and
Recommendations’). The company’s ASX Appendix 4G, which is a checklist cross-referencing the ASX
Principles and Recommendations to the relevant disclosures in either this statement, our website or Annual
Report, is contained on our website at http://www.beyond.com.au/corporate/corporate-governance.
This statement has been approved by the company’s Board of Directors (‘Board’) and is current as at
27 August 2015.
The ASX Principles and Recommendations and the company’s response as to how and whether it follows
those recommendations are set out below.
prinCiple 1: lay soliD founDations
for management anD oversight
reCommenDation 1.1 – a listeD entity
shoulD DisClose: (a) the respeCtive roles
anD responsiBilities of its BoarD anD
management; anD (B) those matters
expressly reserveD to the BoarD anD
those DelegateD to management.
The Board is ultimately accountable for the performance of
the company and provides leadership and sets the strategic
objectives of the company. It appoints all senior executives
and assesses their performance on at least an annual basis.
It is responsible for overseeing all corporate reporting
systems, remuneration frameworks, governance issues, and
stakeholder communications. Decisions reserved for the
Board relate to those that have a fundamental impact on
the company, such as material acquisitions and takeovers,
dividends and buybacks, material profits upgrades and
downgrades, and significant closures.
Management is responsible for implementing Board
strategy, day-to-day operational aspects, and ensuring
that all risks and performance issues are brought the
Boards attention. They must operate within the risk
and authorisation parameters set by the Board.
reCommenDation 1.2 – a listeD entity shoulD:
(a) unDertake appropriate CheCks Before
appointing a person, or putting forWarD to
seCurity holDers a CanDiDate for eleCtion,
as a DireCtor; anD (B) proviDe seCurity
holDers With all material information in its
possession relevant to a DeCision on Whether
or not to eleCt or re-eleCt a DireCtor.
The company undertakes comprehensive reference checks
prior to appointing a director, or putting that person
forward as a candidate to ensure that person is competent,
experienced, and would not be impaired in any way from
undertaking the duties of director. The company provides
relevant information to shareholders for their consideration
about the attributes of candidates together with whether
the Board supports the appointment or re-election.
reCommenDation 1.3 – a listeD entity shoulD
have a Written agreement With eaCh DireCtor
anD senior exeCutive setting out the terms of
their appointment.
The terms of the appointment of a non-executive director,
executive directors and senior executives are agreed upon
and set out in writing at the time of appointment.
reCommenDation 1.4 – the Company seCretary
of a listeD entity shoulD Be aCCountaBle
DireCtly to the BoarD, through the Chair,
on all matters to Do With the proper
funCtioning of the BoarD.
The Company Secretary reports directly to the Board
through the Chairman and is accessible to all directors.
reCommenDation 1.5 – a listeD entity shoulD
(a) have a Diversity poliCy WhiCh inCluDes
requirements for the BoarD or a relevant
Committee of the BoarD to set measuraBle
oBJeCtives for aChieving genDer Diversity
anD to assess annually Both the oBJeCtives
anD the entity’s progress in aChieving them;
(B) DisClose that poliCy or a summary of it; anD
(C) DisClose as at the enD of eaCh reporting
perioD the measuraBle oBJeCtives for
aChieving genDer Diversity set By the BoarD
or a relevant Committee of the BoarD in
aCCorDanCe With the entity’s Diversity poliCy
anD its progress toWarDs aChieving them, anD
either: (1) the respeCtive proportions of men
anD Women on the BoarD, in senior exeCutive
positions anD aCross the Whole organisation
(inCluDing hoW the entity has DefineD “senior
exeCutive” for these purposes); or (2) if the
entity is a “relevant employer” unDer the
WorkplaCe genDer equality aCt, the entity’s
most reCent “genDer equality inDiCators”, as
DefineD in anD puBlisheD unDer that aCt.
The company does not have a formal diversity policy. The
company however undertakes to assess an individual’s
credentials on their merit, with complete objectivity and
13
Beyond InternatIonal AnnuAl RepoRt 2015 without bias so that the company may attract, appoint and
retain the best people to work within the company where all
persons have equal opportunity.
prinCiple 2: struCture the BoarD
to aDD value
As at the date of this report, 51% of the organisation were
women (49% men); and 56% of senior executive positions
were occupied by women (44% men). For this purpose, the
Board defines a senior executive as a person who makes,
or participates in the making of, decisions that affect the
whole or a substantial part of the business or has the
capacity to affect significantly the company’s financial
standing. This therefore includes all senior management
and senior executive designated positions as well as senior
specialised professionals.
No entity within the consolidated entity is a ‘relevant
employer’ for the purposes of the Workplace Gender
Equality Act 2012 and therefore no Gender Equality
Indicators to be disclosed.
reCommenDation 1.6 – a listeD entity shoulD (a)
have anD DisClose a proCess for perioDiCally
evaluating the performanCe of the BoarD,
its Committees anD inDiviDual DireCtors; anD
(B) DisClose, in relation to eaCh reporting
perioD, Whether a performanCe evaluation
Was unDertaken in the reporting perioD in
aCCorDanCe With that proCess.
The company does not currently have a formal process for
evaluating the performance of the Board, its committees or
individual directors. The Board conducts an introspective
annual discussion of its performance on a collective basis
to identify general aspects of its performance that could be
improved upon, and such analysis includes the roles played
by each Board member. Such reviews therefore encapsulate
collective discussion around the performance of individual
Board members, their roles on specific projects during the
financial year, and where relevant, how their role could be
modified or suggestions for individual development or
performance improvement for the future.
Until such time as the company expands to justify an
expansion of Board members, the Board is of the current
opinion that such performance evaluation is suitable for
the company.
reCommenDation 1.7 – a listeD entity
shoulD (a) have anD DisClose a proCess for
perioDiCally evaluating the performanCe
of its senior exeCutives; anD (B) DisClose, in
relation to eaCh reporting perioD, Whether
a performanCe evaluation Was unDertaken
in the reporting perioD in aCCorDanCe With
that proCess.
The Board conducts an annual performance assessment
of the CEO against agreed performance measures
determined at the start of the year. The CEO undertakes
the same assessments of senior executives. In assessing
the performance of the individual, the review includes
consideration of the senior executive’s function, individual
targets, group targets, and the overall performance of
the company. Such reviews are conducted during the
first quarter of a new financial year.
reCommenDation 2.1 – the BoarD of a listeD
entity shoulD:
(a) have a nomination Committee WhiCh:
(1) has at least three memBers, a maJority
of Whom are inDepenDent DireCtors; anD
(2) is ChaireD By an inDepenDent DireCtor,
anD DisClose:
(3) the Charter of the Committee;
(4) the memBers of the Committee; anD
(5) as at the enD of eaCh reporting perioD,
the numBer of times the Committee
met throughout the perioD anD the
inDiviDual attenDanCes of the memBers
at those meetings; or
(B) if it Does not have a nomination
Committee, DisClose that faCt anD the
proCesses it employs to aDDress BoarD
suCCession issues anD to ensure that
the BoarD has the appropriate BalanCe
of skills, knoWleDge, experienCe,
inDepenDenCe anD Diversity to
enaBle it to DisCharge its Duties
anD responsiBilities effeCtively.
The Board does not maintain a Nomination Committee as
it is considered that the current size of the Board does not
warrant the formal establishment of a separate committee.
The Board therefore performs the function of such a
committee which includes the identification of skills and
competencies required for the Board and related committees,
as well as nomination, selection and performance evaluation
of non-executive directors. The Board does not actively
manage succession planning and instead relies upon the
Board’s extensive networking capabilities and/or executive
recruitment firms to identify appropriate candidates when
a Board vacancy occurs or when a vacancy is otherwise
envisaged. Attributes of candidates put forward will be
considered for ‘best-fit’ to the needs of the Board which
are assessed at the time of the vacancy.
reCommenDation 2.2 – a listeD entity shoulD
have anD DisClose a BoarD skills matrix
setting out the mix of skills anD Diversity
that the BoarD Currently has or is looking
to aChieve in its memBership.
The Board’s skills matrix indicates the mix of skills,
experience and expertise that are considered necessary
at Board level for optimal performance of the Board. The
matrix reflects the Board’s objective to have an appropriate
mix of industry and professional experience including skills
such as leadership, governance, strategy, finance, risk, IT, HR,
policy development, international business and customer
relationship. External consultants may be brought in with
specialist knowledge to address areas where this is an
attribute deficiency in the Board.
14
CORPORATE GOvERNANCE STATEMENT 2015
reCommenDation 2.3 – a listeD entity shoulD
DisClose: (a) the names of the DireCtors
ConsiDereD By the BoarD to Be inDepenDent
DireCtors; (B) if a DireCtor has an interest,
position, assoCiation or relationship of the
type DesCriBeD in Box 2.3 But the BoarD is of
the opinion that it Does not Compromise the
inDepenDenCe of the DireCtor, the nature
of the interest, position, assoCiation or
relationship in question anD an explanation
of Why the BoarD is of that opinion; anD
(C) the length of serviCe of eaCh DireCtor.
Details of the Board of directors, their appointment dated,
length of service as independence status is as follows:
DireCtor’s
name
Date
appointeD
Ian
Robertson
27
September
2005
length of
serviCe at
reporting
Date
9 years
status
inDepenDenCe
status
Independent
Non-
executive
The Board may determine that a director is independent
notwithstanding the existence of an interest, position,
association or relationship of the kind identified in the
examples listed under Recommendation 2.3 of the ASX
Principles and Recommendations.
reCommenDation 2.4 – a maJority of
the BoarD of a listeD entity shoulD
Be inDepenDent DireCtors.
There are currently 4 members on the company’s
Board. Having regard to the company’s response to
Recommendation 2.3 above, the majority of the Board are
not independent. The Board considers that the company is
reliant upon the business relationships and interests that it
has with the non-independent directors in order to achieve
its objectives at this time. Until such time as the company is
of a size that warrants the appointment of additional non-
executive and independent directors, the Board is of the
view that the absence of a majority of independent directors
is not an impediment to its operations, shareholders or
other stakeholders
reCommenDation 2.5 – the Chair of the BoarD
of a listeD entity shoulD Be an inDepenDent
DireCtor anD, in partiCular, shoulD not Be
the same person as the Ceo of the entity.
The roles of the Chair of the Board and Chief Executive
Officer are separate. Ian Ingram is Chair of the Board
and is not considered to be an independent director of
the company. Mikael Borglund is the CEO. The Board
acknowledges the ASX Recommendation that the Chair of
the Board be an independent director, however the Board
has formed the view that Mr Ingram is the most appropriate
person to lead the Board given his experience and skills.
reCommenDation 2.6 – a listeD entity shoulD
have a program for inDuCting neW DireCtors
anD proviDe appropriate professional
Development opportunities for DireCtors
to Develop anD maintain the skills anD
knoWleDge neeDeD to perform their role
as DireCtors effeCtively.
New directors undertake an induction program coordinated
by the Company Secretary that briefs and informs the
director on all relevant aspects of the company’s operations
and background. A director development program is also
available to ensure that directors can enhance their skills
and remain abreast of important developments.
prinCiple 3: aCt ethiCally
anD responsiBly
Recommendation 3.1 – A listed entity should: (a) have a
code of conduct for its directors, senior executives and
employees; and (b) disclose that code or a summary of it.
The company maintains a code of conduct for its directors,
senior executives and employees. In summary, the code
requires that each person act honestly, in good faith and in
the best interests of the company; exercise a duty of care;
use the powers of office in the best interests of the company
and not for personal gain, declare any conflict of interest;
safeguard company’s assets and information and undertake
any action that may jeopardise the reputation of company.
That code is available on the company’s website.
prinCiple 4: safeguarD integrity
in Corporate reporting
reCommenDation 4.1 – the BoarD of a listeD
entity shoulD: (a) have an auDit Committee
WhiCh: (1) has at least three memBers, all of
Whom are non-exeCutive DireCtors anD a
maJority of Whom are inDepenDent DireCtors;
anD (2) is ChaireD By an inDepenDent DireCtor,
Who is not the Chair of the BoarD, anD
DisClose: (3) the Charter of the Committee; (4)
the relevant qualifiCations anD experienCe
of the memBers of the Committee; anD
(5) in relation to eaCh reporting perioD,
the numBer of times the Committee met
throughout the perioD anD the inDiviDual
attenDanCes of the memBers at those
meetings; or (B) if it Does not have an auDit
Committee, DisClose that faCt anD the
proCesses it employs that inDepenDently
verify anD safeguarD the integrity of
its Corporate reporting, inCluDing the
proCesses for the appointment anD removal
of the external auDitor anD the rotation
of the auDit engagement partner.
15
Beyond InternatIonal AnnuAl RepoRt 2015 The Board maintains a combined Audit and Risk Committee,
the members of which are:-
DireCtor’s
name
Anthony Lee
– Chair
exeCutive
status
inDepenDenCe
status
Non-Executive
Not independent
Ian Ingram
Non-Executive
Not independent
The majority of the Committee members and the Chair are
not independent. The current size of the Board does not
allow for this recommendation to be met.
obligations. Where any such person is of any doubt as to
whether they possess information that could be classified
as market sensitive, they are required to notify the
Company Secretary immediately in the first instance. The
Company Secretary is required to consult with the CEO
in relation to matters brought to his or her attention for
potential announcement. Generally, the CEO is ultimately
responsible for decisions relating to the making of market
announcements. The Board is required to authorise
announcements of significance to the company. No
member of the company shall disclose market sensitive
information to any person unless they have received
acknowledgement from the ASX that the information
has been released to the market.
Details of the qualifications and experience of the members
of the Committee is detailed in the ‘Information of directors’
section of the Directors’ report.
prinCiple 6: respeCt the rights
of seCurity holDers
The Charter of the Committee is available at the company’s
website.
The number of Committee meetings held and attended
by each member is disclosed in the ‘Meetings of directors’
section of the Directors’ report.
reCommenDation 4.2 – the BoarD of a listeD
entity shoulD, Before it approves the entity’s
finanCial statements for a finanCial perioD,
reCeive from its Ceo anD Cfo a DeClaration
that, in their opinion, the finanCial reCorDs
of the entity have Been properly maintaineD
anD that the finanCial statements Comply
With the appropriate aCCounting stanDarDs
anD give a true anD fair vieW of the finanCial
position anD performanCe of the entity
anD that the opinion has Been formeD
on the Basis of a sounD system of risk
management anD internal Control
WhiCh is operating effeCtively.
For the financial year ended 30 June 2015 and the half-year
ended 31 December 2014, the company’s CEO and CFO
provided the Board with the required declarations.
reCommenDation 4.3 – a listeD entity that
has an agm shoulD ensure that its external
auDitor attenDs its agm anD is availaBle to
ansWer questions from seCurity holDers
relevant to the auDit.
The audit engagement partner attends the AGM and is
available to answer shareholder questions from shareholders
relevant to the audit.
prinCiple 5: make timely anD
BalanCeD DisClosure
reCommenDation 5.1 – a listeD entity shoulD (a)
have a Written poliCy for Complying With its
Continuous DisClosure oBligations unDer the
listing rules; anD (B) DisClose that poliCy or a
summary of it.
The company maintains a written policy that outlines
the responsibilities relating to the directors, officers and
employees in complying with the company’s disclosure
reCommenDation 6.1 – a listeD entity shoulD
proviDe information aBout itself anD its
governanCe to investors via its WeBsite.
The company maintains information in relation to governance
documents, directors and senior executives, Board and
committee charters, annual reports, ASX announcements
and contact details on the company’s website.
reCommenDations 6.2 anD 6.3
A listed entity should design and implement an investor
relations program to facilitate effective two-way
communication with investors (6.2).
A listed entity should disclose the policies and processes
it has in place to facilitate and encourage participation at
meetings of security holders (6.3).
In order for the investors to gain a greater understanding
of the company’s business and activities, the company
schedules regular interactions between the CEO, CFO and/
or Managing Director where it engages with institutional and
private investors, analysts and the financial media. These
meetings are not held within a four week blackout period
in advance of the release of interim or full-year results. The
company encourages shareholders to attend its AGM and
to send in questions prior to the AGM so that they may
be responded to during the meeting. It also encourages
ad hoc enquiry via email which are responded to. Written
transcripts of the meeting are made available on the
company’s website.
Recommendation 6.4 – A listed entity should give security
holders the option to receive communications from, and
send communications to, the entity and its security
registry electronically.
The company engages its share registry to manage the
majority of communications with shareholders. Shareholders
are encouraged to receive correspondence from the
company electronically, thereby facilitating a more effective,
efficient and environmentally friendly communication
mechanism with shareholders. Shareholders not already
receiving information electronically can elect to do so
through the share registry, Computershare Australia Limited
at https://www-au.computershare.com/investor/?gcc=au.
16
CORPORATE GOvERNANCE STATEMENT 2015
prinCiple 7: reCognise
anD manage risk
reCommenDations 7.1 & 7.2
The board of a listed entity should: (a) have a committee
or committees to oversee risk, each of which: (1) has at
least three members, a majority of whom are independent
directors; and (2) is chaired by an independent director, and
disclose: (3) the charter of the committee; (4) the members
of the committee; and (5) as at the end of each reporting
period, the number of times the committee met throughout
the period and the individual attendances of the members
at those meetings; or (b) if it does not have a risk committee
or committees that satisfy (a) above, disclose that fact and
the processes it employs for overseeing the entity’s risk
management framework (7.1).
The board or a committee of the board should: (a) review
the entity’s risk management framework at least annually to
satisfy itself that it continues to be sound; and (b) disclose,
in relation to each reporting period, whether such a review
has taken place (7.2).
The Board maintains a combined Audit and Risk
Committee. The members of the Committee are
detailed in Recommendation 4.2 above.
The charter of the Risk Committee can be found on
the company’s website.
The Audit and Risk Committee reviews the company’s risk
management framework annually to ensure that it is still
suitable to the company’s operations and objectives and
that the company is operating within the risk parameters
set by the Board. As a consequence of the last review
undertaken for the year ended 30 June 2015, there were
no significant recommendations made.
The Board acknowledges that it has not followed the
ASX Recommendations in relation to the number of
members and independence due to the size of the Board.
The company maintains internal controls which assist in
managing enterprise risk, and these are reviewed as part of
the scope of the external audit, with the auditor providing
the Board with commentary on their effectiveness and the
need for any additional controls. The Managing Director
and CEO are responsible for monitoring operational risk,
ensuring all relevant insurances are in place, and ensuring
that all regulatory and compliance obligations of the
company are satisfied.
reCommenDation 7.3 – a listeD entity shoulD
DisClose: (a) if it has an internal auDit
funCtion, hoW the funCtion is struCtureD
anD What role it performs; or (B) if it Does
not have an internal auDit funCtion, that
faCt anD the proCesses it employs for
evaluating anD Continually improving the
effeCtiveness of its risk management anD
internal Control proCesses.
The company does not have a dedicated internal audit
function. The responsibility for risk management and internal
controls lies with both the Managing Director and CFO who
continually monitor the company’s internal and external
risk environment. Necessary action is taken to protect the
integrity of the company’s books and records including by
way of design and implementation of internal controls, and
to ensure operational efficiencies, mitigation of risks, and
safeguard of company assets.
reCommenDation 7.4 – a listeD entity shoulD
DisClose Whether it has any material
exposure to eConomiC, environmental anD
soCial sustainaBility risks anD, if it Does, hoW
it manages or intenDs to manage those risks.
Refer to the company’s Annual Report for disclosures
relating to the company’s material business risks (including
any material exposure to economic, environmental
or social sustainability risks). Refer to commentary at
Recommendations 7.1 and 7.2 for information on the
company’s risk management framework.
prinCiple 8: remunerate fairly
anD responsiBly
reCommenDation 8.1 – the BoarD of a listeD
entity shoulD: (a) have a remuneration
Committee WhiCh: (1) has at least three
memBers, a maJority of Whom are inDepenDent
DireCtors; anD (2) is ChaireD By an inDepenDent
DireCtor, anD DisClose: (3) the Charter
of the Committee; (4) the memBers of the
Committee; anD (5) as at the enD of eaCh
reporting perioD, the numBer of times the
Committee met throughout the perioD anD
the inDiviDual attenDanCes of the memBers
at those meetings; or (B) if it Does not have a
remuneration Committee, DisClose that faCt
anD the proCesses it employs for setting the
level anD Composition of remuneration for
DireCtors anD senior exeCutives anD ensuring
that suCh remuneration is appropriate anD
not exCessive.
The Board maintains a combined Nomination and
Remuneration Committee. The members of the Committee
are detailed below.
DireCtor’s
name
exeCutive
status
inDepenDenCe
status
Ian Robertson
– Chair
Anthony Lee
– Chair
Non-Executive
Independent
Non-Executive
Not independent
Ian Ingram
Non-Executive
Not independent
Details of the qualifications and experience of the members
of the Committee is detailed in the ‘Information of directors’
section of the Directors’ report.
The Remuneration Committee oversees remuneration
policy and monitors remuneration outcomes to promote
the interests of shareholders by rewarding, motivating and
retaining employees. The committee’s charter sets out the
roles and responsibilities, composition and structure of the
Committee and is available on the company’s website.
The number of Committee meetings held and attended
by each member is disclosed in the ‘Meetings of directors’
section of the Directors’ report.
17
Beyond InternatIonal AnnuAl RepoRt 2015
The Dengineers
18
CORPORATE GOvERNANCE STATEMENT 2015
The Board acknowledges that
it has not followed the ASX
Recommendations in relation
to the number of members and
independence due to the size of
the Board.
reCommenDation 8.2
– a listeD entity shoulD
separately DisClose its
poliCies anD praCtiCes
regarDing the remuneration
of non-exeCutive DireCtors
anD the remuneration of
exeCutive DireCtors anD
other senior exeCutives.
Non-executive directors are
remunerated by way of cash fees,
superannuation contributions and
non-cash benefits in lieu of fees.
The level of remuneration reflects
the anticipated time commitments
and responsibilities of the position.
Performance based incentives are not
available to non-executive directors.
Executive directors and other
senior executives are remunerated
using combinations of fixed and
performance based remuneration. Fees
and salaries are set at levels reflecting
market rates and performance based
remuneration is linked directly to
specific performance targets that are
aligned to both short and long term
objectives. Further details in relation to
the company’s remuneration policies
are contained in the Remuneration
Report, within the Directors’ report.
reCommenDation 8.3
– a listeD entity WhiCh has
an equity-BaseD remuneration
sCheme shoulD: (a) have
a poliCy on Whether
partiCipants are permitteD
to enter into transaCtions
(Whether through the use
of Derivatives or otherWise)
WhiCh limit the eConomiC
risk of partiCipating in the
sCheme; anD (B) DisClose that
poliCy or a summary of it
The use of derivatives or other
hedging arrangements for unvested
securities of the company or vested
securities of the company which are
subject to escrow arrangements is
prohibited. Where a director or other
senior executive uses derivatives or
other hedging arrangements over
vested securities of the company,
this will be disclosed.
19
Beyond InternatIonal AnnuAl RepoRt 2015 boarD of Directors
mikael BorglunD
managing DireCtor anD Ceo
BBus, Ca
A founding director of Beyond
International in 1984, Mikael Borglund
became Managing Director of
the Beyond International Limited
Group of companies in 1991 having
been responsible for production,
international sales and finance. During
an outstanding career in the film and
television industry Mikael has executive
produced a number of Australian award
winning feature films including Kiss Or
Kill (1996), Lantana (2001), and James
Cameron’s Deepsea Challenge (2014).
Mikael has been Executive Producer
of hundreds of hours of television
for broadcasters around the globe.
His credits include a number of
internationally successful shows
including, MythBusters, Stingers,
Good Guys/Bad Guys, Halifax Fp,
Atlas: Australia, South Side Story,
Damage Control and the animated
series Beat Bugs.
A highly regarded member of the
Australian film and television industry,
Mikael was elected to the council of
the Screen Producers Association of
Australia (SPAA) in 1994, and appointed
to the Board of the Australian Film
Institute in 1997 – 2005.
ian roBertson
non-exeCutive DireCtor
llB, BCom, faiCD
Ian Robertson is a corporate and
media lawyer who heads the media
and entertainment practice of national
law firm, Holding Redlich. He is also
the managing partner of the firm’s
Sydney office. He has worked in and
for the media and entertainment
industries for most of his career,
including in the 1980’s as the in-house
counsel for David Syme & Co Limited,
publisher of the The Age newspaper,
and as a senior executive of the
video, post-production and facilities
company, AAV Australia. He became
a partner of Holding Redlich in
Melbourne in 1990 and established
the firm’s Sydney office in 1994.
He is also the deputy chair of the peak
Australian Government film agency,
Screen Australia and president of the
board of the Victorian Government
film agency, Film Victoria. His former
appointments include board member
of the Australian Broadcasting
Authority, director and chair of
Ausfilm, director and deputy chair of
Film Australia Limited, and director
of the predecessor agency to Film
Victoria, Cinemedia.
Mr Robertson is a Fellow
of the Australian Institute
of Company Directors.
ian ingram
Chairman
Ba, BsC (eCon) (hons),
Barrister at laW
Mr Ingram was the founding Chairman
of Beyond International Limited when
it was formed in September 1986
and is currently the Non Executive
Chairman. During his tenure, Beyond
has emerged as one of the world’s
leading film and television production,
sales and distribution organisations.
anthony hsien pin lee
non-exeCutive DireCtor
B.a. prinCeton university
neW Jersey usa,
mBa the Chinese university
of hong kong
Mr Lee is a private investor and a
Director of Aberon Pty Limited, his
investment company. Prior to moving
to Sydney from Hong Kong in 1987, Mr
Lee was a corporate finance executive
with a leading British merchant bank.
20
BOARD Of DIRECTORS 2015
Directors’ report
your DireCtors present their report on the Company anD its
ControlleD entities (“ConsoliDateD entity” or “group”) for
the finanCial year enDeD 30 June 2015.
1. DireCtors
The names of Directors in office at
any time during or since the end of
the financial year are;
IAN INGRAM Non-Executive Chairman
MIkAEl BORGluND Managing Director
ANThONy lEE Non-Executive Director
IAN ROBERTSON Non-Executive Director
Directors have been in office since the
start of the financial year to the date
of this report unless otherwise stated.
2. Company seCretary
The following person held the position
of Company Secretary during and at
the end of the financial year:
Mr. Paul Wylie, joined Beyond on the
7 November 2013 and was appointed
Company Secretary on 7 November
2013. Mr. Wylie is also the General
Manager of Finance for the Group.
3. prinCipal aCtivities
of the group
The principal activities of the group
during the financial year were television
program production, international sales
of television programs and feature
films, home entertainment and digital
marketing. There was no significant
change in the nature of those activities
during the financial year.
4. operating results
The consolidated profit attributable
to members of the Company for the
financial year was $5,885,000 (2014:
$7,975,000).
5. DiviDenDs
An interim 2015 dividend of 5 cents per
share was paid in April 2015 and the
Company will pay a final 2015 dividend
of 5 cents per share in October 2015.
This brings the total dividend for the
2015 year to 10 cents per share.
6. revieW of operations
Revenue from operations for the year
has increased by 1.6% from $89,772,000
to $91,172,000 with operating expenses
increasing by $2,367,000 or 2.9% year
on year. In addition the Group incurred
additional amortisation of copyright
assets of $1,906,000.
Net profit after tax is $5,885,000 for
the 2015 financial year – a decrease
of 27% over the 2014 financial year.
Net cash flow from operating activities
was $8,135,000 (2014: $8,907,000) with
the final 2014 and interim 2015 dividend
totalling $6,522,778 being paid during
the period.
television proDuCtion anD
Copyright segment
Television production revenue increased
by $1,776,000 or 5.6% to $33,270,000.
In 2015 the net “copyright income” from
the further exploitation of the programs
by Beyond Distribution is $6,248,000
compared to $6,213,000 in 2014, an
increase of 0.6%.
home entertainment
segment (Bhe)
Revenue decreased by 8.7% to
$22,463,000 (2014: $24,606,000)
compared to the corresponding
12-month period.
The segment EBIT has decreased
by 23.7% to $1,827,000 (2014:
$2,395,000) compared to the
corresponding 12-month period.
In 2015 BHE performed strongly
within its strategic market categories.
The business continues to gain market
share in its target genres and as at
30th June 2015 holds:-
• Number one market share in sport;
• Number one market share in stand
up comedy;
• Number one market share
in factual television;
• Number two market share in
documentary content (up from
#3 last year); and
• Number four market share in
children’s (down from #3 last year).
Segment EBIT for the 12-month period
decreased 0.7% to $9,360,000 (2014:
$9,423,000).
The result for the 2014 financial
year includes restructuring costs
of $398,000.
The television series’ produced for the
US market during the year includes
returning titles MythBusters (series 10
and 11), Deadly Women (series 9), and
Facing Evil (series 6). New commissions
in the year include Self Shot Survival,
Shark Island, Exodus and a number of
pilots for 7Beyond fully funded by US
broadcasters.
Australian program commissions during
the period include Blood & Thunder: The
Sound of Alberts, Deep Water 2, Santos
Tour Down Under, Dazzle or Die, Fanshaw
& Crudnut, and season 8 and season 9
of Selling Houses Australia.
In the 2015 financial year 37% of total
segment revenues were transacted in
US dollars (2014: 46%).
The 7Beyond joint venture began
operating in late 2013, and the result for
the current year includes a 50% share
of net operating costs of $560,000. The
venture has received a commission from
HGTV for My Dream Lottery Home.
tv anD film
DistriBution segment
(BeyonD DistriBution)
Segment revenue has decreased
by $468,000 or 2% to $22,612,000
compared to the corresponding 12
month period (2014: $23,080,000).
The segment EBIT for the twelve
months decreased by 23.7% to
$2,420,000 from $3,171,000 in 2014.
Increases in costs were due to a
realignment of costs, particularly in
relation to accounting services, and
an increase in provisions against
distribution advances.
During the current period 71% of total
segment revenues are denominated in
US$ (2014: 71%).
During the year successful sales
were achieved for in house produced
series’, which include MythBusters and
Deadly Women.
The most successful third party
products sold were Highway Thru Hell,
Love It Or List It, Income Property and
BBQ Crawl.
21
Beyond InternatIonal AnnuAl RepoRt 2015 Deadly Women
22
DIRECTORS’ REPORT 2015
Digital marketing segment (BeyonDD)
Segment revenue has increased by $2,236,000 or 21% to
$12,828,000 compared to the corresponding 12 month
period (2014: $10,592,000).
The segment EBIT for the twelve months increased to a profit
of $132,000 from a loss of $649,000 in 2014. The result for
2014 includes $118,000 of restructuring costs.
The year was underpinned by a consistent flow of digital
production revenues from key clients in Australia and an
improvement in the search consulting business in New
Zealand. Both the Australian and New Zealand search
operations refocused their search operations into a new
service offering around conversion rate optimization. This
enabled the business to secure new clients as well as retain
existing clients.
7. signifiCant Changes in
the state of affairs
There were no significant changes in the state of affairs of
the Group during the financial year ended 30 June 2015.
8. matters suBsequent to the
enD of the finanCial year
On 27 August 2015 the company declared a final dividend of 5
cents per share to be paid in October 2015. With the exception
of dividends there are no subsequent events to declare.
9. likely Developments anD
expeCteD results of operations
The Beyond International Group of companies delivered
another strong result for the 12 months to 30 June 2015
despite a difficult global economic climate.
All four operating segments are facing competitive pressures
and technological challenges. The television production and
distribution segments operate in an international environment
and are subject to economic fluctuations that occur in
the different markets in which they operate. Although the
company has successfully traded in these markets for over
twenty five years it is difficult to predict how these various
economies will perform over the short term.
Beyond has continued to strengthen its balance sheet to
ensure the company is positioned to create and acquire
media content that will be exploited through both
traditional media outlets and new delivery platforms.
Over the next twelve months the Company’s focus will be to
further strengthen the financial performance in all operating
segments of the Group in order to generate surplus cash to
pay dividends, invest in working capital, and new content.
Beyond is also actively seeking and assessing strategic
acquisition opportunities in both core business and the
digital media sector.
23
Beyond InternatIonal AnnuAl RepoRt 2015 10. information on DireCtors & Company seCretary
DireCtor
qualifiCations & experienCe
speCial
responsiBilities
DireCtors’ interests
in shares of BeyonD
international limiteD
I INgRAM
BA, Bsc(Econ),
Honours
Barrister at Law
Chairman of Winchester
Investments Group Pty Ltd and
Sealion Media Ltd as well as
Chairman of various private venture
capital and investment companies.
Member of the Board since 1986
Chairman, member of
the Audit Committee,
member of the
Remuneration Committee,
and Chairman of the
Nomination Committee.
17,452,571
direct/indirect
M BORgLUNd
B.Bus, CA
Extensive management & finance
experience. Former member
of the board of the Australian
Film Institute.
Member of the Board since 1990
A LEE
BA, MBA
Director of Aberon Pty Ltd, a private
investment company, a substantial
shareholder in the company.
Member of the Board since 1990
IAN
ROBERTsON
LL.B.
BComm, FAICD
A media and corporate lawyer who
heads the media and entertainment
practice of national law firm Holding
Redlich and is the Managing
Partner of the firm’s Sydney office.
He is President of the Board of
the Victorian Government screen
agency Film Victoria. His former
appointments include Deputy
Chair Screen Australia.
Member of the Board since 2006
PAUL WyLIE
BA Acctg, CPA
Extensive media finance experience
with over 30 years in broadcast and
subscription television and television
production industries. Company
Secretary roles for a number of
entities during this period
Managing Director, CEO
and member of the
Nomination Committee.
3,150,949
direct/indirect
Non-Executive Director,
Chairman of the Audit
Committee, member
of the Remuneration
Committee, and member
of the Nomination
Committee.
5,474,997
direct/indirect
Non-Executive Director,
Chairman of the
Remuneration Committee
and member of the
Nomination Committee.
110,000
direct/indirect
General Manager, Finance
Company Secretary
2,000
Indirect
The particulars of Directors’ interests in shares are as at the date of this report.
24
DIRECTORS’ REPORT 2015
11. DireCtors’ meetings
The numbers of meetings of the Company’s Board of Directors and of each Committee held during the financial year ended
30 June 2015, and the number of meetings attended by each Director was:
BoarD of
DireCtors
meetings
auDit
Committee
meetings
remuneration
Committee
meetings
nomination
Committee
meetings
Director
I Ingram
M Borglund
A Lee
I Robertson
number
eligible
to attend
number
attended
number
eligible
to attend
number
attended
number
eligible
to attend
number
attended
number
eligible
to attend
number
attended
8
8
8
8
8
8
8
8
2
-
2
-
2
-
2
-
2
-
2
2
2
-
2
2
2
2
2
2
2
2
2
2
Pokemon
25
Beyond InternatIonal AnnuAl RepoRt 2015 12. inDemnifiCation anD insuranCe
of DireCtors anD offiCers
The Company has entered into agreements to indemnify all
Directors of the Company named in section 1 of this report,
and current and former executive officers of the Group,
against all liabilities to persons (other than the Company or a
related body corporate) which arise out of the performance
of their normal duties as Director or executive officer, unless
the liability relates to conduct involving a lack of good
faith. The Group has agreed to indemnify the Directors and
executive officers against all costs and expenses incurred
in defending an action that falls within the scope of the
indemnity and any resulting payments.
The Group paid insurance premiums totalling $24,877
in respect of Directors’ and officers’ liability insurance.
The policy does not specify the premium of individual
Directors and executive officers.
The directors’ and officers’ liability insurance provides cover
against all costs and expenses involved in defending legal
actions, and any resulting payments arising from a liability to
persons (other than the Company or a related body corporate)
incurred in their position as Director or executive officer, unless
the conduct involves a wilful breach of duty or an improper use
of inside information or position to gain advantage.
13. remuneration report
a) remuneration poliCy
The broad approach by the Group to remuneration is to
ensure that remuneration packages:
• properly reflect individual’s duties and responsibilities;
• are competitive in attracting, retaining and motivating staff
of the highest quality; and
• uphold the interests of shareholders.
The remuneration policies adopted are considered to
have contributed to the growth of the Group’s profits and
shareholder benefit by aligning remuneration with the
performance of the Group.
B) remuneration approaCh – non-exeCutive
DireCtors
Non-Executive Directors are remunerated from a maximum
aggregate amount of $350,000 per annum.
Current rates effective 1 October 2013 paid to Non-Executive
Directors are:
Chairman
$188,025 p.a.
Non-Executive Director
$50,000 p.a.
Additional Duties
Chairman of a board committee
$10,000 p.a.
Member of a board committee
$5,000 p.a.
The Board’s policy is to remunerate Non-Executive Directors
at market rates from comparable companies having regard
to the time commitments and responsibilities assumed.
There are no termination payments to Non-Executive
Directors on retirement from office other than payments
relating to their accrued superannuation entitlements.
26
DIRECTORS’ REPORT 2015
C) ContraCtual arrangements – key management personnel
name
position
Duration of
Contract
period of notice to terminate the Contract
M Borglund Managing Director
No fixed term
Either party may terminate on twelve months
notice
J Luscombe
General Manager – Productions
& Senior Vice President
No fixed term
Either party may terminate on twelve months
notice
P Tehan
T McGee
General Manager – Legal &
Business Affairs
General Manager – Business
Development
No fixed term One month notice given by either party
No fixed term One month notice given by either party
M Murphy
General Manager – Distribution No fixed term Three months notice given by either party
P Wylie
General Manager – Finance &
Company Secretary
P Maddison
J Ward
General Manager – Home
Entertainment
General Manager – Digital
Marketing
No fixed term Three months notice given by either party
No fixed term One month notice given by either party
No fixed term Three months notice given by either party
The contracts referred to are currently on foot and variously part performed as to the duration of them. The contracts are
terminable by the Company in the event of serious misconduct or non-rectified breach. Only remuneration that is due but
unpaid up to the date of termination and normal statutory benefits will be paid in these circumstances.
Australia: The Story Of Us
27
Beyond InternatIonal AnnuAl RepoRt 2015 D) key management personnel remuneration
The Board undertakes an annual review of its performance and the performance of the Board Committees against goals set
at the start of the financial year. Any performance related bonuses are available to executives of the Company and thus no
bonuses are payable to Non-Executive Directors. Any performance related bonuses will be based on the divisional net profit
before tax exceeding the annual budget approved by the Board prior to the commencement of the relevant financial year by a
minimum percentage, and achieving pre-agreed KPI’s. Details of the nature and the remuneration of each Director of Beyond
International Limited and each of the seven executives with the greatest authority for the strategic direction and management
of the Company and the Group are set out in the following tables.
DireCtors of BeyonD international limiteD
2015
name
salary &
fees
Bonus
non-
monetary
Benefits
post-employment
Benefits
(superannuation)
share
BaseD
payments
other
long
term
Benefits
(leave)
total share
BaseD
payments
% of
total
M Borglund
$719,234
I Ingram
$188,025
A Lee
$54,795
I Robertson
$54,795
total
$1,016,849
-
-
-
-
-
-
-
-
-
-
$18,783
$12,628
-
$5,205
$5,205
-
-
-
-
-
-
-
$750,645 0%
$188,025 0%
$60,000 0%
$60,000 0%
$29,193
$12,628
- $1,058,670 0%
Mikael Borglund’s bonus as a percentage of his salary and fees is 0% (2014: 0%). The bonus calculation is based on the Group’s
net profit before tax against budget.
2014
name
salary &
fees
Bonus
non-
monetary
Benefits
post-employment
Benefits
(superannuation)
share
BaseD
payments
other
long
term
Benefits
(leave)
total share
BaseD
payments
% of
total
M Borglund
$699,274
I Ingram
$195,804
A Lee
$54,920
I Robertson
$54,920
total
$1,004,918
-
-
-
-
-
-
-
-
-
-
$17,775
$25,286
-
$5,080
$5,080
-
-
-
-
-
-
-
$742,335 0%
$195,804 0%
$60,000 0%
$60,000 0%
$27,935
$25,286
- $1,058,139 0%
Mr Borglund is the only Executive Director employed by Beyond International Limited.
During the 2015 financial year the Group did not exceed the budget by the set criteria and as such Mikael Borglund was not
entitled to a performance bonus. For the 2014 financial year the Group did not exceed the budget by the set criteria and as
such Mikael Borglund was not entitled to a performance bonus.
28
DIRECTORS’ REPORT 2015
exeCutive offiCers’ remuneration
2014
name
salary &
fees
Bonus
J Luscombe
$547,450 $670,145
P Wylie
T McGee
$224,899
$268,845
-
-
M Murphy
$259,714
$45,011
P Tehan
$205,447
P Maddison
$329,171
-
-
-
J Ward
ToTal
2015
name
$199,999
$2,035,525 $715,156
salary &
fees
Bonus
non-
mone-
tary
Benefits
post-
employment
Benefits
(super-
annuation)
other
long
term
Benefits
(leave)
total
termin-
ation
Benefits
share
BaseD
pay-
ments
share
BaseD
payments
% of
total
-
-
-
-
-
-
-
-
$18,783
$29,215
$18,783
$(2,470)
$18,783
$16,849
-
$4,339
$18,783
$12,854
$18,783
$4,924
$18,783
$7,569
$112,698
$73,280
-
-
-
-
-
-
-
-
- $1,265,593 0%
- $241,212
- $304,477
- $309,064
- $237,084
- $352,878
- $226,351
0%
0%
0%
0%
0%
0%
- $2,936,659 0%
non-
mone-
tary
Benefits
post-
employment
Benefits
(super-
annuation)
other
long
term
Benefits
(leave)
total
termin-
ation
Benefits
share
BaseD
pay-
ments
share
BaseD
payments
% of
total
J Luscombe
$531,879 $595,429
P Wylie
$141,308
T McGee
$230,768
M Murphy
$251,279
R Milne
P Tehan
$182,766
$198,241
P Maddison
$321,103
-
-
-
-
-
-
J Ward
J Ostler
ToTal
$170,000 $25,736
$231,919
-
$2,259,263 $621,165
-
-
-
-
-
-
-
-
-
-
$17,775
$15,087
$11,486
-
$17,775 $(13,477)
-
$1,806
$6,714
-
$17,775
$13,003
$17,775
($1,459)
$17,775
$(1,101)
-
-
-
-
-
-
-
-
- $1,160,170
- $152,794
- $235,066
- $253,085
- $189,480
- $229,019
- $337,419
- $212,410
$13,331
- $109,545
- $354,795
0%
0%
0%
0%
0%
0%
0%
0%
0%
$120,406
$13,859 $109,545
- $3,124,238 0%
John Luscombe’s bonus as a percentage of his salary and fees is 122% (2014: 112%). The bonus calculation is based on the financial performance
of programs created and produced, and divisional net profit before tax performance to budget.
Michael Murphy’s bonus as a % of his salary and fees is 17.3% (2014: 0%). The bonus is based on earnings before foreign exchange, interest and
income tax against budget for the 2013/14 financial year. This bonus was paid in the 2015 financial year.
James Ward’s bonus as a % of his salary and fees is 0% (2014: 13.7%). The bonus calculation is based on revenues written during the year.
During the 2015 financial year, the Group did not exceed the budget by the set criteria or for the individual divisions. As such
no executives, other than John Luscombe and Michael Murphy were entitled to a performance bonus. Both have been received
and are detailed above.
In the 2014 financial year the budget criteria was not met and consequently those executives other than John Luscombe and
James Ward were not entitled to this bonus.
29
Beyond InternatIonal AnnuAl RepoRt 2015 Catching Milat
30
DIRECTORS’ REPORT 2015
exeCutive offiCers’ shareholDings
2014
speCifieD
exeCutives
J Luscombe
T McGee
P Wylie
P Tehan
P Maddison
M Murphy
J Ward
total
2014
speCifieD
exeCutives
J Luscombe
T McGee
F Crago
R Milne
P Wylie
P Tehan
P Maddison
M Murphy
J Ostler
J Ward
total
BalanCe
1.07.14
reCeiveD as
remuneration
options
exerCiseD
net Change
other*
BalanCe
30.06.15
273,478
75,000
2,000
75,000
75,000
-
-
475,478
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
BalanCe
1.07.12
reCeiveD as
remuneration
options
exerCiseD
net Change
other*
273,478
75,000
125,000
150,000
-
75,000
75,000
-
-
-
773,478
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(125,000)
(150,000)
2,000
-
(25,000)
-
-
-
273,478
75,000
2,000
75,000
50,000
-
-
475,478
BalanCe
30.06.13
273,478
75,000
-
-
2,000
75,000
50,000
-
-
-
* The net change from the opening balance represents sale or purchase of shares during the year.
(298,000)
475,478
My Little Pony
31
Beyond InternatIonal AnnuAl RepoRt 2015 transaCtions With other relateD parties
J Luscombe is a director of Ryzara Pty Ltd. The company
has received payments for services rendered by J Luscombe
during the year. These fees are included as part of the Executive
Remuneration disclosed in Note 26 and the Director’s Report.
K Borglund (M Borglund’s daughter) is the owner of Idylic
Interiors. Idylic Interiors provided refurbishment services to the
organisation, with a total value of $0 (2014: $17,358) during
the financial year.
M Borglund was a director of Wight Expedition Films Pty
Ltd (Resigned 14/10/14). Beyond International Limited has
provided services – including executive producer, production,
production accountancy and administration services – to Wight
Expedition Films Pty Ltd. An amount of $0 (2014: $90,000)
was recognised in the accounts during the financial year.
voting anD Comments maDe at the Company’s
2014 annual general meeting (agm)
The company received 100% of “for” votes in relation to its
remuneration report for the year ended 30 June 2014. The
company did not receive any specific feedback at the AGM
regarding its remuneration policy.
BeyonD international employee share plan
The Board has adopted an employee share plan (note 23) under
which employees and Directors of the Group may subscribe for
shares in the Company using funds loaned to them by the Group.
The Board has also adopted a share plan on substantially
the same terms for consultants of the Group (Consultant
Plan). The purpose of the Employee Share Plan is to:
• assist in the retention and motivation of employees and
Directors of the Group by providing them with a greater
opportunity to participate as shareholders in the success
of the group; and
• create a culture of share ownership amongst the
employees of the Group. The employee share plan was
approved by shareholders at the Company’s extraordinary
general meeting on 12th April 2006.
2,587,500 shares have been issued under the Employee Share
Plan to eligible employees and Directors and the Group has
entered into loan agreements with participants to provide the
funds necessary to subscribe for those shares. Shares have been
issued in accordance with the Employee Share Plan rules.
Under the Employee Share Plan rules the Board of the Group
has the power to decide which full time or permanent part-time
employees and Directors of the Group will participate in the
Employee Share Plan and the number of shares offered to each
participant. The number of shares offered to be issued under the
Employee Share Plan and Consultants Plan in a five year period
must not exceed 5% of the total number of issued shares at the
time of the offer, disregarding certain share issues.
The shares granted under the Employee Share Plan may be
subject to any restrictions the Board considers appropriate and
the Board may implement any procedure the Board considers
appropriate to restrict the disposal of shares acquired under the
Employee Share Plan. The Board also has the power to vary or
terminate the Employee Share Plan at any time, subject to the
ASX Listing Rules and the Corporations Act 2001.
Below are the key financial indicators for the previous five years.
eBit
000s
net profit
000s
eps (Cents
per share)
nta per
share
2011
2012
2013
2014
2015
8,178
10,190
10,841
8,837
5,964
5,099
8,463
9,273
7,975
5,885
8.67
14.39
15.12
13.00
9.59
45.22
48.33
59.00
64.58
64.28
total
equity
000s
31,377
36,249
42,074
45,639
45,490
return on
equity
DiviDenDs
(Cents per
share)
16.25%
23.35%
22.04%
17.47%
12.94%
6.00
6.00
7.00
9.00
10.00
This concludes the remuneration report that has been audited.
32
DIRECTORS’ REPORT 2015
MythBusters
33
Beyond InternatIonal AnnuAl RepoRt 2015 21. auDitors
inDepenDenCe
DeClaration
A copy of the auditor’s independence
declaration as required under section
307C of the Corporations Act 2001
is included on page 27 of the
Directors’ Report.
22. auDitor Details
BDO East Coast Partnership continues
in office in accordance with section 327
of the Corporations Act 2001.
This report is made in accordance with
a resolution of the Board of Directors.
For and on behalf of the Board
Mikael Borglund
Managing Director
27 August 2014
Sydney
14. total numBer of
employees
19. proCeeDings on
Behalf of Company
The total number of fulltime equivalent
employees employed by the Group at 30
June 2015 was 137 as compared with 151
at 30 June 2014.
15. shares unDer option
At the date of this report, there are no
un-issued ordinary shares of Beyond
International Limited under option.
No person has applied for leave of
court to bring proceedings on behalf
of the Company or intervene in any
proceedings to which the Company
is a party for the purpose of taking
responsibility on behalf of the Company
for all or any part of those proceedings.
The Company was not a party to any
such proceedings during the year.
16. shares reDeemeD
unDer the employee
share plan
125,000 shares have been redeemed
from the Beyond International Limited
employee share plan during or since
the end of the financial year. No further
shares have been approved by the
Board of Directors under this plan.
17. environmental
regulations
The Group has assessed whether
there are any particular or significant
environmental regulations which apply
to it and has determined that there
are none.
18. rounDing of
amounts
The Group is of a kind referred to in
Class Order 98/100, issued by the
Australian Securities and Investment
Commission, relating to the “rounding
off” of amounts in the report. Amounts
in the financial report have been
rounded off in accordance with that
Class Order to the nearest thousand
dollars, or in certain cases, to the
nearest dollar.
20. non auDit serviCes
During the year BDO, the Company’s
auditor, delivered tax services and
performed audits in relation to non-
statutory submissions.
The following fees for non-audit
services were paid/payable to the
external auditors during the year
ended 30 June 2015:
Tax compliance services $32,575
When considering BDO to provide
additional services the Board considers
the non-audit services provided to
ensure it is satisfied that the provision
of these non-audit services by the
auditor is compatible with, and will not
compromise the auditor independence
requirements of the Corporations Act
2001. In particular it ensures that:
• All non-audit services are reviewed
and approved by the Audit
Committee prior to commencement
to ensure they do not adversely
affect the integrity and objectivity
of the auditor; and
• Non-audit services provided do not
undermine the general principles
relating to audit independence, as
they would not involve reviewing
or auditing the auditor’s own work,
acting in a management or decision
making capacity for the Company,
acting as an advocate for the
Company, or jointly sharing risks
and rewards.
34
DIRECTORS’ REPORT 2015
aUDitor’s inDepenDence DecLaration
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret St
Sydney NSW 2000
Australia
DECLARATION OF INDEPENDENCE BY CRAIG MAXWELL TO THE DIRECTORS OF BEYOND
INTERNATIONAL LIMITED
As lead auditor of Beyond International Limited for the year ended 30 June 2015, I declare that, to the
best of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Beyond International Limited and the entities it controlled during the
year.
Craig Maxwell
Partner
BDO East Coast Partnership
Sydney, 27 August 2015
BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd
ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership and BDO (Australia) Ltd are members of BDO International
Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme
approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.
27
35
Beyond InternatIonal AnnuAl RepoRt 2015
financiaL statements
36
fINANCIAL STATEMENTS 2015
Prison Songs
37
Beyond InternatIonal AnnuAl RepoRt 2015 statement of profit or loss anD other Comprehensive inCome
for the year enDeD 30 June 2015
notes
ConsoliDateD entity
2014
$000's
89,772
2015
$000’s
91,172
Revenue from continuing operations
Other income
Royalty expense
Production costs
Home entertainment direct costs
Digital marketing direct costs
Administration costs
Employee benefits expense
Finance costs
Provisions
Depreciation and amortisation expense
Share of loss of joint venture accounted for using the equity method
Profit before income tax
Income tax expense
Profit after income tax for the year
3 (a)
3 (a)
3 (b)
3 (b)
14
4 (b)
4 (a)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Changes in the fair value of available-for-sale financial assets
10 (a)
Foreign currency translation
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Profit is attributable to:
Owners of Beyond International Limited
Non-controlling interest
Total comprehensive income for the year is attributable to:
Owners of Beyond International Limited
Non-controlling interest
Earnings per share attributable to the owners of Beyond International ltd
Basic and diluted earnings per share
Dividends per share (cents)
5
20
The above Statement of Profit or Loss and Other Comprehensive Income should
be read in conjunction with the accompanying notes.
851
869
17,036
17,629
25,726
22,892
7,787
8,329
8,901
6,834
6,240
7,270
14,575
14,549
49
1,589
3,546
560
21
1,204
3,127
239
6,013
8,549
(128)
5,885
(537)
8,012
(4)
12
8
1
1
2
5,893
8,014
5,885
7,975
–
37
5,885
8,012
5,893
7,977
–
37
5,893
8,014
Cents
Cents
9.59
13.00
10.00
9.00
38
fINANCIAL STATEMENTS 2015
statement of finanCial position as at 30 June 2015
notes
ConsoliDateD entity
2014
$000's
2015
$000's
assets
Current assets
Cash and cash equivalents
Trade and other receivables
Financial assets
Inventories
Other current assets
total Current assets
non-Current assets
Trade and other receivables
Investments accounted for using the equity method
Financial assets
Property plant and equipment
Intangible assets
Deferred tax assets
Other non-current assets
total non-Current assets
total assets
liaBilities
Current liaBilities
Trade and other payables
Financial liabilities
Employee benefits
Current tax liabilities
Other current liabilities
total Current liaBilities
non-Current liaBilities
Deferred tax liabilities
Employee benefits
Other non-current liabilities
total non-Current liaBilities
total liaBilities
net assets
equity
Issued capital
Reserves
Retained earnings
6
7
10(b)
8
9
7
14
10(a)
11
12
4(c)
9
13
10(b)
15
4(d)
16
4(c)
15
16
17
18
10,403
10,985
29,603
27,218
–
–
3,069
3,441
16,770
17,768
59,845
59,412
1,831
3,318
–
4
82
8
1,850
1,890
6,062
6,028
3,437
3,449
518
347
13,703
15,122
73,548
74,534
6,025
5,995
91
5
2,902
2,768
134
–
10,946
11,608
20,097
20,376
6,663
7,288
588
710
614
617
7,961
8,520
28,058
28,896
45,490
45,639
33,867
33,775
(103)
(111)
11,727
11,976
total equity
The above Statement of Financial Position should be read in conjunction with the accompanying notes.
45,490
45,639
39
Beyond InternatIonal AnnuAl RepoRt 2015 statement of Changes in equity for the year enDeD 30 June 2015
reserves
retaineD
earnings
$000's
non-
Controlling
interests
$000's
total
$000's
ConsoliDateD entity
Balance at 1 July 2014
Profit for the year
Other comprehensive income
for the year, net of tax
Total comprehensive income
for the year
Transactions with owners in
their capacity as owners:
Dividends paid or provided
for
Employee share plan
issueD
Capital
$000's
33,775
–
–
–
–
92
(111)
11,976
45,639
–
8
8
5,885
5,885
–
8
5,885
5,893
–
(6,134)
(6,134)
–
–
92
Balance at 30 June 2015
33,867
(103)
11,727
45,490
total
equity
$000's
45,639
5,885
8
5,893
(6,134)
92
45,490
–
–
–
–
–
–
–
Balance at 1 July 2013
33,315
(113)
Profit for the year
Other comprehensive income
for the year, net of tax
Total comprehensive income
for the year
Transactions with owners in
their capacity as owners:
Dividends paid or provided
for
Transfer of non-controlling
interest reserve
Employee share plan
Balance at 30 June 2014
–
–
–
–
–
460
33,775
–
2
2
–
–
9,114
7,975
–
42,316
7,975
2
(242)
42,074
37
–
8,012
2
7,975
7,977
37
8,014
–
(4,906)
(4,906)
–
(4,906)
(205)
(205)
205
–
–
460
(111)
11,976
45,639
–
–
460
45,639
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.
40
fINANCIAL STATEMENTS 2015
statement of Cash floWs for the year enDeD 30 June 2015
notes
ConsoliDateD entity
2014
$000's
2015
$000’s
Cash floWs from operating aCtivities
Receipts from customers
Payments to suppliers and employees
Interest received
Finance costs paid
Income tax paid
90,391
86,709
(81,859)
(77,030)
184
(49)
249
(21)
(532)
(1,000)
Net cash from by operating activities
6(b)
8,135
8,907
Cash floWs from investing aCtivities
Purchase of property, plant and equipment
Investment in websites and databases
Distribution guarantees paid
Distribution guarantees recouped
Prepaid royalties
Prepaid royalties recouped
Proceeds from sale of property, plant and equipment
Payment for investments & joint venture
Investment in development projects
Net cash flows used in investing activities
Cash floWs from finanCing aCtivities
Proceeds from share issue
Dividend paid
Net cash flows used in financing activities
Net (decrease)/increase in cash held
Cash and cash equivalents at the beginning of the financial year
(899)
(1,497)
(706)
(701)
(2,285)
(1,705)
1,605
1,617
(2,427)
(4,591)
3,084
3,715
(1)
(303)
(356)
151
(320)
(548)
(2,286)
(3,879)
23
92
459
(6,523)
(4,628)
(6,431)
(4,169)
(582)
859
10,985
10,126
Cash and cash equivalents at the end of the financial year
6(a)
10,403
10,985
The above Statement of Cash Flows should be read in conjunction with the accompanying notes.
41
Beyond InternatIonal AnnuAl RepoRt 2015 notes to the financiaL statements for the year enDeD 30 jUne 2014
1. summary of signifiCant
aCCounting poliCies
The financial report of Beyond
International Limited for the year
ended 30 June 2015 was authorised for
issue in accordance with a resolution
of the Board of Directors on 27th
August 2015.
Beyond International Limited is
a company limited by shares,
incorporated and domiciled in
Australia and whose shares are
publicly traded on the Australian
Securities Exchange.
The financial report covers the
consolidated entity of Beyond
International Limited and its controlled
entities (“the Consolidated Entity”
and/or “the group”).
(a) statement of ComplianCe
The financial report is a general
purpose financial report that has
been prepared in accordance with
Australian Accounting Standards
and Interpretations issued by the
Australian Accounting Standards
Board (AASB) and the Corporations
Act 2001, as appropriate for profit
oriented entities. The financial
report has been prepared on an
accruals basis and is based on
historical costs, except where stated.
The Consolidated Entity has not
adopted a policy of revaluing its
non-current assets on a regular basis.
Non-current assets are revalued
from time to time as considered
appropriate by the directors and
are not stated at amounts in excess
of their recoverable amounts.
Australian Accounting Standards
set out accounting policies that the
AASB has concluded would result in
a financial report containing relevant
and reliable information about
transactions, events and conditions
to which they apply. Compliance with
Australian Accounting Standards
ensures that the financial statements
and notes also comply with
International Financial Reporting
Standards, as issued by the
International Accounting Standards
Board (IASB). Material accounting
policies adopted in the preparation
of this financial report are presented
below. They have been consistently
applied unless otherwise stated.
In the current year, the Consolidated
Entity has adopted all of the new and
revised Standards and Interpretations
issued by the AASB that are relevant
to its operations and effective for the
current annual reporting period. The
adoption of the revised Standards
and Interpretations has had no
material impact on the recognition
and measurement criteria, only minor
changes to some of the disclosure
within the financial statements.
The following Australian Accounting
Standards have been issued or
amended and are applicable to
aasB
amenDment
AASB 9
AASB 9 'Financial
Instruments'
affeCteD
stanDarD(s)
effeCt of Change in aCCounting
poliCy
appliCation
Date of
stanDarD
appliCation
Date for
group
1 January 2018 1 July 2018
1 January 2017 1 July 2017
1 January 2016 1 July 2016
1 January 2016 1 July 2016
The potential effect of the initial
application of the expected Standard has
been considered by the Directors, and
they do not believe it will have a material
impact on the financial statements.
Due to the recent release of this
standard, the entity has not yet made a
detailed assessment of the impact of this
standard.
The potential effect of the initial
application of the expected Standard has
been considered by the Directors, and
they do not believe it will have a material
impact on the financial statements.
The potential effect of the initial
application of the expected Standard has
been considered by the Directors, and
they do not believe it will have a material
impact on the financial statements.
AASB 15
AASB 15 'Revenue
from Contracts with
Customers'
AASB 2014-4 Amendments
to Australian
Accounting Standards
– Clarification of
Acceptable Methods
of Depreciation and
Amortisation
AASB 2014-3 Amendments to
Australian Accounting
Standards –
Accounting for
Acquisitions of
Interests in Joint
Operations
AASB 2015-2 Amendments to
Australian Accounting
Standards – Disclosure
Initiative: Amendments
to AASB 101
These amendments affect presentation
and disclosures only. Therefore on first
time adoption of these amendments on
1 July 2016, comparatives will need to
be restated in line with presentation and
note ordering.
1 January 2016 1 July 2016
42
NOTES TO THE fINANCIAL STATEMENTS 2015
notes to the financiaL statements for the year enDeD 30 jUne 2014
the Consolidated Entity but are not
yet effective. They have not been
adopted in preparation of the financial
statements at reporting date. This list
is not complete however it represents
the key standards applicable to the
Consolidated Entity.
(B) Basis of ConsoliDation
The consolidated financial statements
incorporate the assets and liabilities of
all subsidiaries of Beyond International
Limited (‘company’ or ‘parent entity’)
as at 30 June 2015 and the results of
all subsidiaries for the year then ended.
Beyond International Limited and its
subsidiaries together are referred to
in these financial statements as “the
consolidated entity” and/or “the Group”.
Subsidiaries are all those entities over
which the consolidated entity has
control. The consolidated entity controls
an entity when the consolidated entity
is exposed to, or has rights to, variable
returns from its involvement with the
entity and has the ability to affect those
returns through its power to direct the
activities of the entity. Subsidiaries
are fully consolidated from the date
on which control is transferred to
the consolidated entity. They are
de-consolidated from the date
that control ceases.
Intercompany transactions, balances
and unrealised gains on transactions
between entities in the consolidated
entity are eliminated. Unrealised
losses are also eliminated unless the
transaction provides evidence of the
impairment of the asset transferred.
Accounting policies of subsidiaries
have been changed where necessary
to ensure consistency with the policies
adopted by the consolidated entity.
The acquisition of subsidiaries is
accounted for using the acquisition
method of accounting. A change in
ownership interest, without the loss of
control, is accounted for as an equity
transaction, where the difference
between the consideration transferred
and the book value of the share of
the non-controlling interest acquired
is recognised directly in equity
attributable to the parent.
Non-controlling interest in the results
and equity of subsidiaries are shown
separately in the statement of profit or
loss and other comprehensive income,
statement of financial position and
statement of changes in equity of the
consolidated entity. Losses incurred by
the consolidated entity are attributed
to the non-controlling interest in full,
even if that results in a deficit balance.
Where the consolidated entity
loses control over a subsidiary, it
derecognises the assets including
goodwill, liabilities and non-controlling
interest in the subsidiary together with
any cumulative translation differences
recognised in equity. The consolidated
entity recognises the fair value of the
consideration received and the fair value
of any investment retained together
with any gain or loss in profit or loss.
A list of controlled entities is
contained in note 24 to the financial
statements. Investments in subsidiaries
are accounted for at cost, less any
impairment, in the parent entity.
(C) inCome tax
The income tax expense for the year
comprises current income tax expense
and deferred tax expense.
Current income tax expense charged
to the profit or loss is the tax payable
on taxable income calculated using
applicable income tax rates enacted, or
substantially enacted, as at the reporting
date. Current tax liabilities (assets) are
therefore measured at the amounts
expected to be paid to (or recovered
from) the relevant tax authority.
Deferred tax expense reflects
movements in deferred tax asset and
deferred tax liability balances during
the year as well as unused tax losses.
Deferred tax assets and liabilities
are ascertained based on temporary
differences arising between the tax
bases of assets and liabilities and
their carrying amounts in the financial
statements. Deferred tax assets also
arise where amounts have been fully
expensed but future deductions are
available. No deferred income tax will be
recognised from the initial recognition of
an asset or liability, excluding a business
combination, where there is no effect on
accounting or taxable profit or loss.
Deferred tax assets and liabilities are
calculated at the tax rates that are
expected to apply to the period when
the asset is realised or the liability is
settled, based on tax rates enacted or
substantively enacted at the reporting
date. Their measurement also reflects
the manner in which management
expects to recover or settle the carrying
amount of the related asset or liability.
Deferred tax assets relating to
temporary differences and unused tax
losses are recognised only to the extent
that it is probable that future taxable
profit will be available against which
the benefits of the deferred tax asset
can be utilised.
Tax consolidation
Beyond International Limited and its
wholly-owned Australian subsidiaries
have formed an income tax consolidated
group under the tax consolidation
regime. Each entity in the group
recognises its own deferred tax assets
and liabilities, except for any deferred
tax assets resulting from unused
tax losses and tax credits, which are
immediately assumed by the head
entity, being Beyond International
Limited. The current tax liability for
each group entity is then subsequently
assumed by the parent entity.
The tax consolidated group has
entered into a tax funding arrangement
whereby each company in the group
contributes to the income tax payable
by the group in proportion to their
contribution to the group’s taxable
income. Pursuant to the funding
arrangement, transfers of tax losses or
tax liabilities are assumed by the head
entity through intercompany loans.
(D) gooDs anD serviCes tax (gst)
“Revenues, expenses and assets are
recognised net of the amount of GST,
except when the GST incurred on a
purchase of goods and services is
not recoverable from the taxation
authority. In these circumstances the
GST is recognised as part of the cost
of acquisition of the asset or as part
of the expense item as applicable.
Receivables and payables in the
Statement of Financial Position
are shown inclusive of GST.
The net amount of GST recoverable
from, or payable to, the taxation
authority is included as part of
receivables or payables in the
Statement of Financial Position.
Cash flows are presented in the
Statement of Cash Flows on a gross
basis and the GST component of
cash flows arising from investing
and financing activities, which is
recoverable from, or payable to, the
taxation authority are classified as
operating cash flows.
Commitments and contingencies are
disclosed net of the amount of GST
recoverable from, or payable to, the
taxation authority.
(e) revenue reCognition
Revenue from operating activities
represents revenue earned from the
sale and licensing of the Consolidated
Entity’s products and services, net of
returns and trade allowances. Other
revenue from outside the operating
43
Beyond InternatIonal AnnuAl RepoRt 2015 activities includes interest income on
short term investments, proceeds from
sale of plant and equipment and net
gains on foreign currency transactions.
Revenue is recognised to the extent that
it is probable that the economic benefit
will flow to the Consolidated Entity and
the revenue can be reliably measured.
The following specific recognition
criteria must also be met before
revenue is recognised:
• Revenue from Australian and
international television production
contracts is recognised using the
percentage of completion method.
• Revenues from international
television and feature film licensing
contracts are recognised when the
programming is able to be delivered
and a licence agreement is signed
by both parties.
• When the contract outcome cannot
be estimated reliably, revenue is
recognised only to the extent
of the expenses recognised
that are recoverable.
• Royalty revenue within the
Distribution and Film divisions
is recognised when received.
• Revenues from the sale of DVD
inventory is recognised at the time
the goods are dispatched, apart
from consignment arrangements
where revenue is recognised upon
sale to the end customer.
• Rending of services revenue from
a digital marketing contract to
provide services is recognised
by reference to the stage of
completion of the project. Other
digital marketing revenue is
recognised when it is received
or when the right to receive
payment is established.
Where amounts are invoiced before
revenue is earned, a deferred revenue
liability is brought to account.
(f) BorroWing Costs
Borrowing costs are recognised
as an expense when incurred.
Borrowing costs include:
•
Interest on bank overdraft
and short-term and long-term
borrowings; and
• Finance lease charges.
(g) Cash anD Cash equivalents
Cash and short-term deposits in
the Statement of Financial Position
comprise cash at bank and in hand and
short term deposits with an original
maturity of three months or less.
For the purposes of the Statement of
Cash Flows, cash and cash equivalents
consist of cash and cash equivalents
as defined above, net of outstanding
bank overdrafts.
(h) reCeivaBles
Trade receivables are recognised and
carried at original invoice amount less an
allowance for any uncollectable amounts
or impairment. The following specific
recognition criteria must also be met
before a receivable is recognised:
• Production debtors – receivables
are recognised as they are due for
settlement, within a term of no
more than 30 days.
• Licensing debtors – receivable
is recognised once a licence
agreement is signed by both
parties and the programme is able
to be delivered. Payment terms
are usually based upon signature,
delivery and acceptance. In certain
contracts instalment payments
may extend over the term of the
licence agreement.
A provision for doubtful debts is raised
when there is objective evidence that
the Consolidated Entity will not be able
to collect the debts based on a review of
all outstanding amounts at the reporting
date. Bad debts are written off when
they are identified.
(i) inventories
Inventories are measured at the lower of
cost and net realisable value. Inventories
represent stock TV footage and DVD
stock at cost. As the footage is used it
will be included within the production
cost of the programme.
Inventories sold on consignment remain
in the financial statements as stock on
hand until sold to the end customer.
Costs are assigned to an individual
item of inventory on the basis of
weighed average costs.
(J) investments
Investments have been brought to
account as follows:
Interests in subsidiary companies
and trusts
• The Company’s interests in listed
and un-listed companies and
trusts are brought to account
at cost and dividends and other
distributions are recognised in the
Statement of Profit or Loss and
Other Comprehensive Income when
receivable. Controlled entities are
accounted for in the consolidated
financial statements as set out in
note 1 (B).
• Where, in the opinion of the
Directors, there has been a
diminution in the value of an
investment, the carrying amount
of the investment is written down
to its recoverable amount.
(k) CapitaliseD
proDuCtion Costs
Television production costs are
capitalised and amortised against
future sales revenue. Forecast sales
revenues are reviewed regularly and
the amortisation rate is adjusted to
reflect the estimates of future licensing
revenue of each production. Where
doubt exists as to the ability to recover
the expenditure from future sales, the
amounts in doubt are provided for in the
year in which the assessment is made.
Capitalised production costs are
disclosed in the accounts net of any
cash progress payments received on
projects. Where such progress payments
exceed these costs the net amounts are
disclosed as deferred revenue.
(l) CapitaliseD
Development Costs
Costs of developing new programme
concepts, which the Directors believe
are probable of being recovered
from future revenues, are capitalised.
Capitalised costs are costed into the
production or are written off in the event
that the programme does not proceed.
These costs are classified as current
assets as the costs of developing new
programmes are expected to be realised
within one year.
(m) DistriBution aDvanCes
anD prepaiD royalties
Distribution advances for television
and feature film distribution rights, and
prepaid royalties for the DVD rights, are
capitalised at cost as paid, and recouped
from future sales on cash receipt.
Where doubt exists as to the ability to
recover the expenditure from future
sales, the amounts in doubt are provided
for in the year in which the assessment
is made.
(n) leases
A distinction is made between finance
leases which effectively transfer from
the lessor to the lessee substantially
all the risks and benefits incidental to
44
NOTES TO THE fINANCIAL STATEMENTS 2015
ownership of leased non current assets,
and operating leases under which the
lessor effectively retains substantially
all such risks and benefits.
Where property, plant and equipment
is acquired by means of finance leases,
the present value of the minimum lease
payments is recognised as an asset at
the beginning of the lease term and
amortised on a straight line basis over
the expected useful life of the leased
asset. A corresponding liability is also
established and each lease payment
is allocated between the liability and
finance charge.
Operating lease payments are charged
to the Statement of Profit or Loss and
Other Comprehensive Income on a
straight line basis.
(o) property, plant anD
equipment
Property, plant and equipment are
measured at cost.
Depreciation and Amortisation
Depreciation on property, plant and
equipment is calculated on a straight
line basis to write off the net cost
over its expected useful life to the
Consolidated Entity. Estimates of the
remaining useful lives are made on a
regular basis for all assets, with annual
reassessment for major items.
The expected useful lives are as follows:
• Plant equipment & leasehold
improvements: 2 – 15 years
The assets’ residual values, useful lives
and amortisation methods are reviewed,
and adjusted if appropriate, at each
financial year end.
Gains and losses on disposals are
determined by comparing proceeds
with the carrying amount. These
gains and losses are included in the
Statement of Profit or Loss and Other
Comprehensive Income.
(p) intangiBle assets
Goodwill
Goodwill acquired and goodwill on
consolidation are initially recorded at the
amount by which the purchase price for
a business or for an ownership interest
in a controlled entity exceeds the fair
value attributed to its net assets at date
of acquisition. Goodwill on acquisitions
of subsidiaries is included in intangible
assets. Goodwill on acquisition of
associates is included in investments in
associates. Goodwill is tested annually
for impairment and carried at cost less
accumulated impairment losses. Gains
and losses on the disposal of an entity
include the carrying amount of goodwill
relating to the entity sold.
the reporting date and are measured
at the amounts expected to be paid
when the liabilities are settled.
Patents and licenses
Other long-term employee benefits
Patents and trademarks are recognised
at cost of acquisition. Patents and
trademarks have a finite life and are
carried at cost less any accumulated
amortisation and any impairment losses.
Patents and trademarks are amortised
over their useful life, which is 20 years.
Websites and Databases
Websites and Databases are recognised
at cost. Websites and Databases are
amortised over their useful life, which
is 4 years.
(q) impairment of assets
At each reporting date, the group
reviews the carrying values of its
tangible and intangible assets to
determine whether there is any
indication that those assets have been
impaired. If such an indication exists,
the recoverable amount of the asset,
being the higher of the asset’s fair value
less costs to sell and value in use, is
compared to the asset’s carrying value.
Any excess of the asset’s carrying value
over its recoverable amount is expensed
to the Statement of Profit or Loss and
Other Comprehensive Income.
Where it is not possible to estimate
the recoverable amount of an
individual asset, the group estimates
the recoverable amount of the
cash-generating unit to which
the asset belongs.
(r) traDe anD other payaBles
These amounts represent liabilities for
goods and services provided to the
Consolidated Entity prior to the end
of the financial year and which are
unpaid. These amounts are unsecured
and are usually paid within 30 days
of recognition.
(s) proDuCer share payaBles
These amounts represent the amounts
due to producers contracted for
payment as royalties upon receipt
of licensing sales.
(t) employee Benefits
Short-term employee benefits
Liabilities for wages and salaries,
including non-monetary benefits,
annual leave and long service leave
expected to be settled within 12
months of the reporting date are
recognised in current liabilities in
respect of employees’ services up to
The liability for long service leave not
expected to be settled within 12 months
of the reporting date are recognised in
non-current liabilities, provided there is
an unconditional right to defer settlement
of the liability. The liability is measured
as the present value of expected future
payments to be made in respect of
services provided by employees up to the
reporting date. Consideration is given to
expected future wage and salary levels,
experience of employee departures
and periods of service. Expected future
payments are discounted using market
yields at the reporting date on national
government bonds with terms to
maturity and currency that match,
as closely as possible, the estimated
future cash outflows.
Defined contribution
superannuation expense
Contributions to defined contribution
superannuation plans are expensed in
the period in which they are incurred.
(u) share-BaseD
payment transaCtions
Equity settled transactions:
The group provides benefits to
employees of the group in the form
of share-based payments, whereby
employees render services in exchange
for shares or rights over shares (equity-
settled transactions).
There is currently one plan in place to
provide these benefits: the Employee
Share Loan Plan.
The cost of these equity-settled
transactions with employees is measured
by reference to the fair value of the
equity instruments at the date at which
they are granted. The fair value is
determined using the market value of a
share on the date which they are granted.
The cost of equity-settled transactions is
recognised in the Statement of Profit or
Loss and Other Comprehensive Income
over the vesting period.
The cumulative expense recognised
for equity-settled transactions at
each reporting date until the vesting
date reflects:
• (i) the extent to which the vesting
period has expired; and
• (ii) the group’s best estimate of the
number of equity instruments that
will ultimately vest.
45
Beyond InternatIonal AnnuAl RepoRt 2015 (v) BorroWings
Loans and borrowings are recorded at
their principal amounts. Subsequently
they are measured at amortised cost
using the effective interest method.
(W) foreign CurrenCy
translation
Transactions denominated in a foreign
currency are converted to Australian
currency at the exchange rate at
the date of the transaction. Foreign
currency receivables and payables at
the reporting date are translated at
exchange rates at the reporting date.
Exchange gains and losses are brought
to account in determining the profit or
loss for the year.
Exchange gains and losses arising on
forward foreign exchange contracts
entered into as hedges of specific
commitments are deferred and
included in the determination of the
amounts at which the transactions
are brought to account. Specific
hedging is undertaken in order to
avoid or minimise possible adverse
financial effects of movements in
foreign exchange rates. If the hedging
transaction is terminated prior to
its maturity date and the hedged
transaction is still expected to occur,
deferral of any gains and losses which
arose prior to termination continues,
and those gains and losses are
included in the measurement of
the hedged transaction.
In those circumstances where a
hedging transaction is terminated
prior to maturity because the hedged
transaction is no longer expected
to occur, any previous deferred
gains or losses are recognised in the
Statement of Profit or Loss and Other
Comprehensive Income at the date
of termination. All exchange gains
and losses relating to other hedge
transactions are brought to account
in the Statement of Financial Position
in the same period as the exchange
differences on the items covered by
the hedge transactions. Costs on such
contracts are expensed as incurred.
Exchange gains and losses on the other
hedge transactions entered into as
hedges of general commitments are
brought to account in the Statement of
Profit or Loss and Other Comprehensive
Income in the financial year in which the
exchange rate changes.
Non-monetary items measured at fair
value in a foreign currency are translated
using the exchange rates at the date
when the fair value was determined.
Assets and liabilities of overseas
controlled entities and branches are
translated at exchange rates existing at
the reporting date and the exchange
gain or loss arising on translation is
carried directly to a foreign currency
translation reserve.
(x) foreign CurrenCy
transaCtions anD BalanCes
Functional and presentation currency
The functional currency of each of
the group’s entities is measured using
the currency of the primary economic
environment in which that entity
operates. The consolidated financial
statements are presented in Australian
dollars which is the Company’s
functional and presentation currency.
Transaction and balances
Foreign currency transactions are
translated into functional currency using
the exchange rates prevailing at the date
of the transaction. Foreign currency
monetary items are translated at the
year-end exchange rate. Non-monetary
items measured at historical cost
continue to be carried at the exchange
rate at the date of the transaction. Non-
monetary items measured at fair value
are reported at the exchange rate at the
date when fair values were determined.
Exchange differences arising on the
translation of monetary items are
recognised in the Statement of Profit or
Loss and Other Comprehensive Income.
(y) availaBle-for-sale
finanCial assets
Shares held in a listed entity are
classified as being available-for-sale.
These assets were initially recorded
at cost and at each reporting date are
revalued to fair value. Gains and losses
arising from changes in fair value are
recognised directly in the investments
revaluation reserve unless there is a
prolonged or significant decline, upon
which the loss is recognised in the
Statement of Profit or Loss and
Other Comprehensive Income.
The classification of items within
this category depends on the nature
and purpose of the financial assets
and is determined at the time of
initial recognition.
(Z) Derivative finanCial
instruments
The Consolidated Entity enters into
forward foreign exchange agreements
and foreign currency options on
production contracts in order to manage
its exposure to foreign exchange rate
risks. Exchange contracts are brought
to account as explained in note 1(W).
(aa) issueD Capital
Ordinary shares are classified as 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.
(aB) earnings per share
Basic earnings per share is calculated
as net profit attributable to members
of the parent, adjusted to exclude
any costs of servicing equity (other
than dividends) and preference share
dividends, divided by the weighted
average number of ordinary shares,
adjusted for any bonus element.
Diluted earnings per share is calculated
as net profit attributable to members of
the parent, adjusted for:
• costs of servicing equity (other
than dividends) and preference
share dividends;
• the after tax effect of dividends
and interest associated with dilutive
potential ordinary shares that have
been recognised as expenses; and
• other non-discretionary changes
in revenues or expenses during
the period that would result
from the dilution of potential
ordinary shares;
divided by the weighted average
number of ordinary shares and dilutive
potential ordinary shares, adjusted for
any bonus element.
(aC) Comparative figures
When required by Accounting
Standards, comparative figures
have been adjusted to conform
to changes in presentation for
the current financial year.
(aD) rounDing of amounts
The Consolidated Entity has applied the
relief available to it under ASIC Class
Order 98/100 and accordingly, amounts
in the financial report and Directors’
report have been rounded off to the
nearest $1,000, or in certain cases,
the nearest dollar.
(ae) fair value measurement
When an asset or liability, financial or
non-financial, is measured at fair value
for recognition or disclosure purposes,
the fair value is based on the price that
would be received to sell an asset or
paid to transfer a liability in an orderly
46
NOTES TO THE fINANCIAL STATEMENTS 2015
transaction between market participants
at the measurement date; and assumes
that the transaction will take place
either: in the principal market; or
in the absence of a principal market,
in the most advantageous market.
Fair value is measured using the
assumptions that market participants
would use when pricing the asset
or liability, assuming they act in
their economic best interest. For
non-financial assets, the fair value
measurement is based on its highest
and best use. Valuation techniques that
are appropriate in the circumstances
and for which sufficient data are
available to measure fair value, are
used, maximising the use of relevant
observable inputs and minimising the
use of unobservable inputs.
Assets and liabilities measured at fair
value are classified, into three levels,
using a fair value hierarchy that reflects
the significance of the inputs used in
making the measurements. Classifications
are reviewed each reporting date and
transfers between levels are determined
based on a reassessment of the lowest
level input that is significant to the fair
value measurement.
For recurring and non-recurring fair
value measurements, external valuers
may be used when internal expertise
is either not available or when the
valuation is deemed to be significant.
External valuers are selected based
on market knowledge and reputation.
Where there is a significant change in
fair value of an asset or liability from
one period to another, an analysis is
undertaken, which includes a verification
of the major inputs applied in the latest
valuation and a comparison, where
applicable, with external sources of data.
(af) CritiCal aCCounting
estimates anD JuDgments
The Directors evaluate estimates
and judgments incorporated into the
financial report based on historical
knowledge and best available current
information. Estimates assume a
reasonable expectation of future events
and are based on current trends and
economic data, obtained both
externally and within the group.
Sections within this financial report
whereby estimates and judgments
have a material impact are as follows:
• the recoverability of Distribution
Advances and Prepaid Royalties
in Note 9 has been assessed using
an estimate of future sales for the
respective titles;
• the recoverability of Capitalised
Development Costs in Note 9 is
assessed based on a judgment as to
whether each program will proceed
in the forthcoming year(s);
• Capitalised Production Costs
in Note 9 are calculated using
an estimate of future sales on a
specified title. The recoverability of
this asset is assessed based on a
judgment as to whether the initial
estimated sales will be reached;
• Goodwill and other intangible
assets are assessed annually based
on an estimate of the value-in-use
of the cash generating units to
which goodwill and other intangible
assets have been allocated. The
value-in-use calculation requires the
Consolidated Entity to estimate the
future cash flows expected to arise
from the cash-generating unit. The
calculation also uses an estimated
growth rate, and a discount rate in
order to calculate present value.
Details of these estimated rates
are provided in Note 12.
• Deferred tax assets are recognised
for deductible temporary differences
and brought forward income tax
losses only if the consolidated entity
considers it is probable that future
taxable amounts will be available to
utilise those temporary differences
and losses.
(ag) parent entity
information
These financial statements present the
results of the Consolidated Entity only.
Supplementary information about the
parent entity is disclosed in Note 28.
(ah) Joint ventures
A joint venture is a joint arrangement
whereby the parties that have joint
control of the arrangement have rights
to the net assets of the arrangement.
Investments in joint ventures are
accounted for using the equity method.
Under the equity method, the share of
the profits or losses of the joint venture
is recognised in profit or loss and the
share of the movements in equity is
recognised in other comprehensive
income. Investments in joint ventures
are carried in the statement of financial
position at cost plus post-acquisition
changes in the consolidated entity’s
share of net assets of the joint venture.
Goodwill relating to the joint venture is
included in the carrying amount of the
investment and is neither amortised
nor individually tested for impairment.
Income earned from joint venture
entities reduces the carrying amount of
the investment. A liability is recognised
in other creditors and accruals when the
losses generated by the joint venture
exceed the amount invested into it.
47
Beyond InternatIonal AnnuAl RepoRt 2015 2. operating segments
Corporate benefit/(expense)
Europe
Management has determined the
operating segments based on the
reports reviewed by the Board
that are used to make strategic
decisions. The Board considers the
business on a global basis in the
following four operating divisions:
TV production and copyright
Production of television
programming and ownership
of television product copyright.
Film and Television distribution
International distribution of television
programmes and feature films.
home Entertainment
Distribution in Australia and
New Zealand of DVDs.
Digital Marketing
Online search optimisation,
website creation, development and
performance and online media sales
in Australia and New Zealand.
Operating Segment
REVENUE
Includes the parent entity, centralised
administrative support services
to the group comprising legal
and business affairs, finance and
human resources, in addition to
internet development. None of these
activities constitute a separately
reportable business segment.
Geographical segments
Although the Consolidated
Entity’s divisions are managed
on a global basis they operate
in four main geographical areas:
Australia
The home country of the parent
entity. The areas of operation
include all core business segments.
North America
A portion of the group’s production,
film and television sales are
generated from North America, with
production offices in Los Angeles.
Substantial film and television
distribution proceeds are derived
from European markets. The group’s
head office for multinational activities
is located in Dublin. This office is
responsible for production and
development, and for the acquisition
and international sales of all television
programmes and feature films. The
Dublin office manages the direct sales
and marketing activities of the office
located in London, which represents
the second overseas sales office base.
Rest of World
The Rest of World comprises all
other territories from which film
and television distribution income
is derived including the Middle
East, Asia, and Latin America.
tV prOductiOn
& cOpyright
Film &
teleViSiOn
diStributiOn
hOme
entertainment
digital
marketing
inter Segment
eliminatiOnS
cOnSOlidatiOn
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
$000'S
$000'S
$000'S
$000'S
$000'S
$000'S
$000'S
$000'S
$000'S
$000'S
$000'S
$000'S
External revenues excluding fx, interest
33,270
31,494
22,612
23,080
22,463
24,606
12,828
10,592
Other income
Other segments (b)
Total revenue
Result before fx, interest and D&A
Depreciation & amortisation
Impairment of assets
–
–
–
–
4,868
6,016
–
78
–
130
–
20
–
–
–
313
–
426
(5,279)
38,136
37,510
22,690
23,210
22,483
24,606
13,141
11,018
(5,279)
8,915
2,021
–
10,625
2,436
3,186
2,437
2,874
1,441
–
16
–
15
–
610
–
877
–
848
716
–
132
(9)
640
–
(649)
–
–
–
–
Result before interest, fx & other unallocated expenses
6,894
9,184
2,420
3,171
1,827
1,997
Net interest income
Foreign exchange gain
Corporate expenses
Profit before income tax
Income tax expense
Profit after income tax
Non-controlling interest loss
Profit for the year
–
–
(6,571)
(6,571)
–
–
–
–
91,172
89,772
–
–
–
–
91,172
89,772
14,636
16,676
3,364
2,973
–
–
11,273
13,703
49
509
228
556
(5,818)
(5,938)
6,013
(128)
5,885
–
5,885
8,549
(537)
8,012
(37)
7,975
48
NOTES TO THE fINANCIAL STATEMENTS 2015
Operating Segment
ASSETS
Segment assets
Deferred tax assets and other non-current assets
Corporate assets
Total assets
LIABILITIES
Segment liabilities
Deferred tax liabilities
Corporate liabilities
Total liabilities
Other
Capital expenditure
Other non cash expenses
Impairment of assets
tV prOductiOn
& cOpyright
Film &
teleViSiOn
diStributiOn
hOme
entertainment
digital
marketing
inter Segment
eliminatiOnS
cOnSOlidatiOn
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
$000'S
$000'S
$000'S
$000'S
$000'S
$000'S
$000'S $000'S
$000'S
$000'S
$000'S
$000'S
86,573
86,103
128,969
125,057
26,372
25,377
5,518
4,412
(206,096)
(197,855)
41,336
43,094
3,437
3,449
28,775
27,991
73,548
74,534
22,656
17,331
160,158
157,233
11,860
11,942
6,089
5,163
(183,931)
(176,614)
16,832
15,055
6,663
4,563
7,288
6,553
28,058
28,896
280
332
–
296
670
–
2
567
–
34
451
–
617
867
–
–
–
–
–
54
–
26
42
–
–
–
–
899
953
–
1,223
1,163
–
–
–
geographiCal
information
segment revenues from
external Customers
Carrying amount of
segment assets
aCquisition of non
Current segment assets
Australia
North America
Europe
Rest of World
2015
$000's
54,709
19,500
9,356
7,606
91,172
2014
$000's
50,088
23,896
6,499
9,289
2015
$000's
66,215
(1,340)
5,579
3,094
2014
$000's
63,310
960
6,414
3,850
2015
$000's
787
111
1
–
2014
$000's
1,164
24
34
1
89,772
73,548
74,534
899
1,223
Notes to and forming part of the
segment information
(a) aCCounting poliCies
Segment revenues, expenses, assets
and liabilities are those that are directly
attributable to a segment and the
relevant portion that can be allocated
to the segment on a reasonable basis.
Segment assets include all assets used
by a segment and consist primarily
of operating cash, receivables,
inventories, capitalised production
and development costs, investments,
distribution advances, inventories,
property, plant and equipment and
goodwill and other intangible assets,
net of any related provisions. While
most of these assets can be directly
attributable to individual segments,
the carrying amounts of certain assets
used jointly by segments are allocated
based on reasonable estimates of
usage. Segment liabilities consist
primarily of trade and other creditors,
producers share payable, bills of
exchange and employee entitlements.
(B) other segments
Segment revenues, expenses and
results include transfers between
segments. Such transfers are priced
on an “arm’s length” basis and are
eliminated on consolidation.
(C) maJor Customers
Included in total revenues is revenue
from customers in excess of 10% of total
revenue individually. Total revenues
relating to these customers are $19m
(2014: $26m) within the TV Production
& Copyright and Film & Television
distribution segments, $9m (2014:
$12m) within the Home Entertainment
segment and $1.6m (2014: $1.3m) within
the Digital Marketing segment.
49
Beyond InternatIonal AnnuAl RepoRt 2015 3. revenues anD expenses
Revenue and other income
Revenue
Sales revenue
Dividend
Royalty revenue
Rental revenue
Other income
Realised/unrealised foreign currency translation gains (note 3(b))
Management service fees
External interest
Gain on the sale of fixed assets
Total Revenue and other income
Profit before tax includes the following:
Bad and doubtful debts
– Trade receivables written off / (recovered) during the period
– Trade receivables movement in provision (Note 7)
Provision for non recovery of advances
Projects in development written off
Rental expense on operating leases
– Minimum lease payments
Finance costs
– External
loss on disposal of asset
Depreciation and amortisation
– Tangible assets (note 11)
– Intangible assets (note 12)
– Other assets (Note 9)
Foreign exchange gain
Fair value decrease/(increase) in derivative financial instruments
Other realised/unrealised foreign currency translation gains
Auditors' Remuneration
Remuneration of the auditor of the parent entity and its controlled entities for:
– Audit or review of the financial report
– Other assurance services
– Tax compliance services
Remuneration of network firms for:
– Tax compliance services
Remuneration of other auditors of subsidiaries for:
– Audit or review of the financial report
– Other assurance services
– Tax compliance services
ConsoliDateD entity
2014
$000's
2015
$000's
88,926
–
1,580
665
88,141
–
974
658
91,172
89,772
509
158
184
–
92,023
556
35
249
29
90,642
44
40
1,096
248
10
24
626
306
2,548
2,662
49
1
960
671
1,915
3,546
87
(596)
(509)
2015
$
21
–
1,124
671
1,331
3,127
(330)
(226)
(556)
2014
$
307,000
24,000
32,575
50,337
339,000
35,960
33,985
20,967
55,416
12,240
14,094
54,034
1,578
8,985
NOTES TO THE fINANCIAL STATEMENTS 2015
(a)
(b)
(c)
50
4. inCome tax expense
ConsoliDateD entity
2014
$000's
2015
$000's
(a)
The components of tax expense comprise:
Current income tax
Deferred income tax
Adjustments in respect of current income tax of previous years
Income tax expense reported in the Statement of Profit or Loss and Other
Comprehensive Income
(b)
The prima facie tax on profit from ordinary activities before income tax is
reconciled to the income tax expense as follows:
Profit before income tax
Prima facie tax payable on profit from ordinary activities before income tax at 30%
(2014: 30%)
Less:
Tax effect of :
– Other non-assesable/deductible items
Less:
Tax effect of :
– Adjustments in respect of current income tax of previous years
– Withholding tax losses written off from prior years
– Effect of lower tax rate on overseas income
– Other
Income tax expense
The applicable weighted average effective tax rates are as follows:
(c)
Deferred Tax
Deferred tax assets
Deferred tax assets comprise:
Provisions and accruals
Deferred tax assets attributable to tax losses
Deferred tax assets expected to be recovered within 12 months
Deferred tax assets expected to be recovered after more than 12 months
Deferred tax liabilities
Deferred tax liabilities comprises:
Distribution guarantees and unrecouped program expenses
Capitalised production costs and other expenses
Deferred tax liabilities expected to be recovered within 12 months
Deferred tax liabilities expected to be recovered after more than 12 months
607
748
(693)
215
128
(142)
(69)
537
6,013
8,549
1,804
2,565
(938)
(783)
866
1,782
(122)
337
(69)
–
(1,029)
(1,243)
77
128
2%
67
536
6%
2,158
1,279
2,126
1,323
3,437
3,449
2,149
1,288
2,431
1,018
3,437
3,449
4,964
1,699
6,663
6,235
428
5,316
1,972
7,288
6,839
449
6,663
7,288
Deferred tax liabilities for Beyond TV Properties Bermuda and Beyond Film Properties Bermuda totaling
$801,943 (2014: $795,519) have not been recognised due to the existence of tax losses not brought to account.
Movement in deferred tax assets & deferred tax liabilities has gone through the Statement of Profit or Loss and
Other Comprehensive Income.
51
Beyond InternatIonal AnnuAl RepoRt 2015 4. inCome tax expense (continued)
(d)
Liabilities
Current
Income tax
ConsoliDateD entity
2014
$000's
2015
$000's
134
–
The above is a current provision for income tax payable by the parent and subsidiaries of the Consolidated Entity.
(e)
Tax Consolidation
Beyond International Limited and its wholly owned Australian subsidiaries have formed an income tax
consolidated group under the tax consolidated regime. Each entity in the group recognises its own current and
deferred tax assets, except for any deferred tax assets resulting from unused tax losses and tax credits, which are
immediately assumed by the head entity, being Beyond International Limited. The current tax liability for each
group entity is then subsequently assumed by the parent entity.
The tax consolidated group has entered into a tax funding arrangement whereby each company in the group
contributes to the income tax payable by the group in proportion to their contribution to the group's taxable
income. Pursuant to the funding arrangement, transfers of tax losses or tax liabilities are assumed by the head
entity through intercompany loans.
5. earnings per share
Basic and diluted earnings per share:
Diluted earnings per share:
ConsoliDateD entity
2014
Cents per
share
2015
Cents per
share
9.59
9.33
13.00
12.49
The following reflects the income and share data used in the basic and diluted earnings per share computations
Net profit attributable to ordinary equity holders (used in calculating basic earning
and diluted per share)
ConsoliDateD entity
2014
2015
$000's
5,885
$000's
7,975
Net profit attributable to ordinary equity holders (used in calculating diluted earning
per share)
5,885
7,975
Weighted average number of ordinary shares in calculating basic earnings and
diluted per share
Number
Number
Effect of dilution:
Employee Share Plan (note 23)
61,336,968
61,336,968
1,760,000
2,537,500
Weighted average number of ordinary shares adjusted for the effect of dilution
63,096,968
63,874,468
52
NOTES TO THE fINANCIAL STATEMENTS 2015
6. Cash floW information
Cash at bank and in hand
The average effective interest rate on cash at bank was 1.62% (2014: 1.73%)
ConsoliDateD entity
2014
2015
$000's
10,403
$000's
10,985
(a) Reconciliation of Cash
For the purposes of the Statement of Cash Flows, cash and cash equivalent comprise
the following at 30 June:
Cash at bank and in hand
10,403
10,985
(b) Reconciliation of cash flows from operations with net profit after income tax
Profit after income tax
Adjustment for non-cash flow in profit:
Depreciation and amortisation
Net gain on sale of non-current assets
Share of Joint venture operation
Unrealised foreign exchange (gain)/loss
Changes in assets and liabilities, net of the effects of business acquisitions:
(Increase)/decrease in trade and other receivables
Decrease/(increase) in inventory
(Increase)/decrease in other assets
Decrease/(increase) in deferred tax assets
Increase/(decrease) in trade and other creditors
(Increase)/decrease in deferred income tax liability
Increase/(decrease) in other liabilities
Increase/(decrease) in provisions
Cash flow from operations
(c) Disclosure of financing facilities
Details of credit standby arrangements and loan facilities are included in note 14.
5,885
8,012
3,546
1
560
3,127
(29)
239
(509)
(407)
(1,403)
374
8
778
(466)
(2,961)
12
(959)
1,431
(1,034)
(625)
(804)
134
819
1,388
(74)
8,135
8,907
53
Beyond InternatIonal AnnuAl RepoRt 2015 6. Cash floW information (continued)
(c) Financing facilities available
At reporting date, the following financing facilities had been negotiated and were
available
Secured multi option facility
Used at reporting date *
Unused at reporting date
Total facility
ConsoliDateD entity
2014
2015
$000's
$000's
625
1,765
2,390
764
1,626
2,390
* The amount of the facility used at reporting date is for bank guarantees on various building leases held by the
Group
The multi option facility may be drawn at any time and may be terminated by the bank on demand.
The interest rate on the facility is the commercial base rate (8.30% at 30 June 2015).
The facility is secured by certain covenants on the Consolidated Entity that these
financial conditions are met –
a) That earnings before interest, tax, depreciation and amortisation will exceed
1 x total group facility
b) Receivables must remain over $8,000,000 at all times
c) Minimum capital adequacy rate of 50%
Secured credit card facilities
Used at reporting date
Unused at reporting date
Total facility
Secured equipment loan facility
Used at reporting date
Unused at reporting date
Total facility
–
245
245
–
500
500
–
245
245
–
500
500
The interest rate on the facility is determined on usage as at the time. As no facility is being used
no rate is applicable.
Amount of Assets Pledged as Security
Fixed and floating charge over assets
Total assets pledged as security
73,548
74,534
73,548
74,534
54
NOTES TO THE fINANCIAL STATEMENTS 2015
7. traDe anD other reCeivaBles
Current
Trade receivables (i)
Provision for impairment of receivables
Non-current
Trade receivables (i)
ConsoliDateD entity
2014
2015
$000's
$000's
31,948
29,524
(2,345)
(2,306)
29,603
29,603
27,218
27,218
1,831
1,831
3,318
3,318
(i) Credit terms for the Consolidated Entity's receivables vary between individual divisions. Distribution, Films and
Productions debtors are generally due based on milestones achieved. Debtors within other divisions have credit
terms ranging from 30 to 90 days. An allowance has been made for estimated irrecoverable trade receivable
amounts arising from the past sale of goods and rendering of services, based on an assessment of individual
debtors and the likelihood of recoverability. For Distribution & Films debtors, the Consolidated Entity provides
fully for receivables over 360 days, with the exception of specific identifiable receivables which are still considered
recoverable. Distribution and Film debtors consist largely of television networks, many of which are government
owned, or are listed entities whose published annual reports indicate they continue to be credit-worthy.
Debtors within other divisions, including the Beyond D business unit, are provided for on a specific basis based on
an assessment of recoverability. Home Entertainment debtors largely consist of multi-national retail chains, many
of which are listed and whose published annual reports indicate they continue to be credit-worthy.
Included in the Consolidated Entity's trade receivables balance are debtors with a carrying amount of $3.1m
(2014: $3.4m) which are past due between 0 and 180 days at the reporting date.
Included in the Consolidated Entity's trade receivables balance are debtors with a carrying amount of $0.2m
(2014: $0) which are past due more than 180 days at the reporting date.
Ageing of debtors
Not past due
Past due 0-90 days
Past due 91-180 days
Past due 180+ days
Reconciliation of provision for impairment of receivables
Opening balance
Additional provision recognised
Utilised
Closing balance
ConsoliDateD entity
2015
$000's
2014
$000’s
Gross
Provision
Gross
Provision
28,126
2,877
–
–
227
(18)
27,177
3,222
186
–
–
(50)
2,549
(2,327)
2,256
(2,256)
33,779
(2,345)
32,841
(2,306)
ConsoliDateD entity
2014
2015
$000's
$000's
(2,306)
(2,282)
(55)
16
(28)
4
(2,345)
(2,306)
55
Beyond InternatIonal AnnuAl RepoRt 2015
8. inventories
Current
DVD Stock – raw material at cost
DVD Stock – finished goods at net realisable value
Stock footage – at cost
9. other assets
Current
Capitalised development costs
Less: deferred revenue
Distribution advances
Accumulated ammortisation of distribution advances (i)
Prepaid royalties
Capitalised production costs
Prepayments
Non-current
Distribution advances
Accumulated ammortisation of distribution advances (i)
ConsoliDateD entity
2014
2015
$000's
$000's
381
2,651
37
3,069
828
2,566
47
3,441
ConsoliDateD entity
2014
2015
$000's
$000's
1,659
(909)
750
1,567
(750)
817
5,387
4,871
(3,878)
(3,456)
1,509
1,415
6,577
7,346
7,085
849
7,934
7,623
567
8,190
16,770
17,768
1,241
(723)
518
1,033
(686)
347
(i) Distribution advances and capitalised production costs are monitored on a title by title basis. The provision
detailed above is included within the depreciation and amortisation expense disclosed in the Statement of Profit
or Loss and Other Comprehensive Income.
56
NOTES TO THE fINANCIAL STATEMENTS 2015
10. finanCial assets & finanCial liaBilities
Available-for-sale financial assets
Derivative financial liabilities
(a) Available-for-sale financial (non current)
Listed investments:
Shares – at fair value (i)
(b) Derivative financial liabilities (current)
notes
ConsoliDateD entity
2014
2015
$000's
4
(91)
(87)
$000's
8
(5)
3
4
8
Foreign currency forward contracts – at fair value
25
(91)
(5)
(i) In 2008, the Consolidated Entity purchased 10% of the ordinary share capital of Motive Television Plc.
The shares have been revalued at year end to the closing share price at 30 June 2015, and losses including
the revaluation to Australian dollar, totaling $4,119 (2014: $1,635 gain) have been recognised in Other
Comprehensive Income.
Fair value of financial instruments measured on a recurring basis
The financial instruments recognised and disclosed at fair value in the Statement of Financial Position have
been analysed and classified using a fair value hierarchy reflecting the significance of the inputs used in making
the measurements. The fair value hierarchy consists of the following levels:
quoted prices 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 (as prices) or indirectly (derived from prices) (Level 2); and
inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).
Financial assets and financial liabilities:
Available-for-sale financial assets:
- listed investments
Financial liabilities at fair value through profit or loss:
- derivative instruments
ConsoliDateD entity
ConsoliDateD entity
2015
2014
level 1 level 2
$000's
$000's
total level 1 level 2
$000's
$000's
$000's
total
$000's
4
–
4
–
4
(91)
(91)
(91)
(87)
8
–
8
–
8
(5)
(5)
(5)
3
During the 2015 financial period, the Consolidated Entity had nil value of Level 3 financial assets and financial
liabilities (2014: nil).
Included within Level 1 of the hierarchy are listed investments. The fair values of these financial assets have
been based on the closing quoted bid prices at reporting date, excluding transaction costs.
There has been no change in the valuation technique used in the current or previous reporting period.
Included within Level 2 of the hierarchy are derivatives not traded in an active market (foreign currency
forward contracts). The fair values of these derivatives are determined using valuation techniques which
uses only observable market data relevant to the hedged position.
There has been no change in the valuation technique used in the current or previous reporting period.
During the current and previous reporting periods, there were no transfers between levels.
57
Beyond InternatIonal AnnuAl RepoRt 2015
10. finanCial assets & finanCial liaBilities (continued)
Fair value of financial instruments not measured at fair value on a recurring basis
The following financial instruments are not measured at fair value in the statement of financial position.
These had the following fair values:
NON-CuRRENT ASSETS
Trade and other receivables
NON-CuRRENT lIABIlITIES
Other non-current liabilities
ConsoliDateD entity ConsoliDateD entity
2015
2014
Carrying
amount
$000's
fair
value
$000's
Carrying
amount
$000's
fair
value
$000's
1,831
1,831
1,695
1,695
3,318
3,318
3,072
3,072
710
710
658
658
617
617
571
571
The fair values of the trade and other receivables and other non-current liabilities above are included in the
level 2 category and have been determined in accordance with generally accepted pricing models based on
a discounted cash flow analysis, with the most significant input being a discount of 8% to determine fair value
Due to their short-term nature, the carrying amounts of cash and cash equivalents, current trade and other
receivables, current trade and other payables are assumed to approximate their fair value.
Refer to note 25 for further information on financial instruments.
58
NOTES TO THE fINANCIAL STATEMENTS 2015
11. property, plant anD equipment
ConsoliDateD entity
year ended 30 June 2015
Balance at 1 July 2014
Additions
Disposal
Depreciation charge for the year
Exchange adjustment
Carrying amount at 30 June 2015
As at 1 July 2014
Cost
Accumulated depreciation and impairment
Net carrying amount
As at 30 June 2015
Cost
Accumulated depreciation and impairment
Net carrying amount
year ended 30 June 2014
Balance at 1 July 2013
Additions
Disposal
Depreciation charge for the year
Exchange adjustment
Carrying amount at 30 June 2014
As at 1 July 2013
Cost
Accumulated depreciation and impairment
Net carrying amount
As at 30 June 2014
Cost
Accumulated depreciation and impairment
Net carrying amount
plant &
equipment
$000's
$000's
leaseD mv &
equipment
$000's
$000's
1,890
899
(3)
(960)
24
1,850
12,739
(10,849)
1,890
13,645
(11,795)
1,850
1,619
1,482
(122)
(1,088)
(1)
1,890
–
–
–
–
–
–
385
(385)
–
385
(385)
–
36
–
–
(36)
–
–
total
$000's
$000's
1,890
899
(3)
(960)
24
1,850
13,124
(11,234)
1,890
14,030
(12,180)
1,850
1,655
1,482
(122)
(1,124)
(1)
1,890
12,252
(10,633)
1,619
385
12,637
(349)
(10,982)
36
1,655
12,739
(10,849)
1,890
385
(385)
–
13,124
(11,234)
1,890
59
Beyond InternatIonal AnnuAl RepoRt 2015 12. intangiBle assets
Patents and Licenses – at cost
Less: Accumulated amortisation
Websites and Databases – at cost
Less: Accumulated amortisation
Goodwill – at cost
Accumulated amortisation and impairment
Less: Impairment
ConsoliDateD entity
2014
$000's
232
2015
$000's
232
(81)
150
(77)
155
3,312
2,606
(1,999)
(1,333)
1,312
5,250
–
(650)
4,600
6,062
1,273
5,250
(650)
4,600
6,028
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are
set out below:
Balance at 30 June 2013
Additions
Amortisation expense
Balance at 30 June 2014
Additions
Amortisation expense
gooDWill
$'000
4,600
WeBsites
anD
DataBases
$'000
1,122
–
–
4,600
–
–
702
(551)
1,273
706
(666)
ConsoliDateD entity
patents
anD
liCenses
$'000
160
total
$'000
5,882
–
(5)
155
–
(5)
702
(556)
6,028
706
(671)
Balance at 30 June 2015
4,600
1,312
150
6,062
Intangible assets, other than goodwill, have finite useful lives. Patents and licenses have been assessed as
having a finite life and are amortised using the straight line method over 20 years. Websites and Databases have
been assessed as having a finite life of 4 years and are amortised using the straight line method. The current
amortisation charges for intangible assets are included under depreciation and amortisation expense per the
Statement of Profit or Loss and Other Comprehensive Income. Goodwill is assessed as having has an infinite life
subject to an annual impairment review.
If an impairment indication arises, the recoverable amount is estimated and an impairment loss is recognised to
the extent that the recoverable amount is lower than the carrying amount.
60
NOTES TO THE fINANCIAL STATEMENTS 2015
12. intangiBle assets (continued)
Impairment Disclosure
There were no impairment losses recognised by the consolidated entity in respect of the current financial
year (2014: nil).
The following assumptions were used in the value-in-use calculations:
groWth rate
2014
2015
DisCount rate
2014
2015
Beyond D business
All other businesses
5%
5%
2%
5 – 10%
15%
10%
15%
10 – 12%
Historical performance of the relevant businesses show the above growth rates to be reasonable.
Sensitivity – Digital Marketing Division
As disclosed in Note 1 (AF) the directors have made judgements and estimates in respect of impairment testing
of goodwill. Should these judgements and estimates not occur the resulting goodwill may vary in carrying
amount. The sensitivities are as follows:
a. If the growth rate decreased by up to 15%, with all other assumptions remaining constant, impairment of
goodwill would still not be required.
b. If the discount rate increased up to 18% , with all other assumptions remaining constant, impairment of goodwill
would still not be required.
Management believes that other reasonable changes in the key assumptions on which the recoverable amount
of the digital marketing division goodwill is based would not cause the cash-generating unit's carrying
amount to exceed its recoverable amount.
If there are negative changes in the key assumptions on which the recoverable amount of goodwill is based,
this would result in a further impairment of the digital marketing division goodwill.
13. traDe anD other payaBles
Current (unsecured)
Trade payables (i)
Other creditors and accruals
Employee benefits
ConsoliDateD entity
2014
$000's
2015
$000's
3,364
2,661
–
3,257
2,738
–
6,025
5,995
(i) Credit terms on trade payables vary between business units and range from 7 days to 90 days. Contractual
maturities of trade and other payables have been disclosed in Note 25.
61
Beyond InternatIonal AnnuAl RepoRt 2015 14. investments aCCounteD for using the equity methoD
Investment in joint venture
ConsoliDateD entity
2014
2015
$000's
–
–
$000's
82
82
Interests in joint ventures are accounted for using the equity method of accounting. Information relating to the
consolidated entity's joint venture is set out below:
name
7Beyond Media Rights Ltd
prinCipal plaCe of Business /
Country of inCorporation
United States of America / Ireland
summariseD finanCial information
Summarised statement of financial position
Cash and cash equivalents
Other current assets
Non-current assets
Total assets
Current financial liabilities (excluding trade and other payables and provisions)
Other current liabilities
Non-current financial liabilities (excluding trade and other payables and provisions)
Total liabilities
Net assets
Summarised statement of profit or loss and other comprehensive income
Revenue
Other revenue
Production costs
Administration costs
Net foreign exchange loss
Loss before income tax
Income tax benefit
Loss after income tax
Total comprehensive income
oWnership interest
2014
2015
%
50%
%
50%
7BeyonD meDia
rights ltD
2015
$000's
2014
$000's
736
110
179
62
170
105
1,025
337
595
743
34
6
167
–
1,372
173
(347)
164
1,086
20
(1,966)
(179)
(240)
(1,279)
160
(1,119)
(1,119)
–
–
(378)
(82)
(18)
(478)
–
(478)
(478)
62
NOTES TO THE fINANCIAL STATEMENTS 2015
14. investments aCCounteD for using the equity methoD (continued)
Reconciliation of the consolidated entity's carrying amount
Opening carrying amount
Investment in joint venture
Share of loss after income tax
Closing carrying amount
The above amount has been accounted for in accordance with Note 1 (AH).
Contingent liabilities
There are no contingent liabilities provided for.
Commitments
There are no outstanding commitments at reporting date.
15. employee Benefits
Current
Provision for annual leave and long service leave
Non-current
Provision for long service leave
Total employee benefits
ConsoliDateD entity
2014
$000's
2015
$000's
82
302
(560)
(176)
–
321
(239)
82
–
–
–
–
ConsoliDateD entity
2014
$000's
2015
$000's
2,902
2,902
2,768
2,768
588
588
614
614
3,490
3,382
The current provision for employee benefits includes accrued annual leave and long service leave. For long
service leave it covers all unconditional entitlements where employees have completed the required period of
service. The entire amount of the annual leave provision is presented as current, since the consolidated entity
does not have an unconditional right to defer settlement for any of these obligations. However, based on past
experience, the consolidated entity does not expect all employees to take the full amount of accrued leave or
require payment within the next 12 months. The following amounts reflect leave that is not expected to be taken
or paid within the next 12 months.
Annual leave obligations accounted for as current and expected to be settled after
12 months
481
481
470
470
63
Beyond InternatIonal AnnuAl RepoRt 2015 16. other liaBilities
Current
unsecured liabilities
Deferred revenue
GST payable
Producer share payable
Other
Non-current
unsecured liabilities
Producer share payable
Other
17. issueD Capital
(a) Share Capital
ConsoliDateD entity
2014
$000's
2015
$000's
3,419
195
7,332
–
2,307
247
9,041
13
10,946
11,608
710
–
710
617
–
617
61,336,968 ordinary shares – fully paid (2014: 61,336,968)
33,867
33,775
The company has authorised capital amounting to 100,000,000 ordinary shares of no par value.
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the company
in proportion to the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled
to one vote, and upon a poll each share is entitled to one vote.
(b) Share Options
On 1 May 1998 at an extraordinary general meeting shareholders approved the establishment of the Beyond
Employee Share Option Plan.
Under the plan any options on issue are cancellable at the Directors discretion upon an option holder ceasing
to be an employee.
(c) Employee Share Plan
On 21 April 2006, a total of 962,500 shares were issued under the employee plan to eligible employees and
directors, and the company has entered into limited non-recourse loan agreements with participants to provide
the funds necessary to subscribe for those shares. Shares were issued in accordance with the Employee Plan
rules (refer note 23).
On 7 December 2009 and 11 March 2010, a total of 1,625,000 shares were issued under the employee plan to
eligible employees and directors, and the company has entered into limited non-recourse loan agreements with
participants to provide the funds necessary to subscribe for those shares. Shares were issued in accordance with
the Employee Plan rules (refer note 23).
64
NOTES TO THE fINANCIAL STATEMENTS 2015
18. reserves
Employee Share Plan Benefit Reserve
The employee share plan benefit reserve records items recognised as expenses on valuation of employee
share options.
Investment Revaluation Reserve
The investment revaluation reserve records unrealised share price and foreign exchange gains and losses
on the available-for-sale financial instruments in Note 10(a).
Foreign Currency Translation Reserve
The foreign currency translation reserve records the variance between converting the Statement of Financial
Position at closing spot rate and the Statement of Profit or Loss and Other Comprehensive Income at average
rate for Magna Home Entertainment NZ Limited and Beyond D (NZ) Limited which have a functional currency
of New Zealand Dollars (NZD).
19. non-Controlling interest
Interest in:
Accumulated losses
Transfers
ConsoliDateD entity
2014
$000's
2015
$000's
–
–
–
(205)
205
–
During the 2014 financial year, the Group acquired the remaining 49% of Beyond Screen Productions Pty Ltd for
$49, increasing its interest to 100%. An amount of $205,000 (being the proportionate share of the carrying
amount of the net liabilities of the non-controlling interest at the date of acquisition) was transferred to
retained earnings.
20. DiviDenDs
Distributions paid
Interim unfranked ordinary dividend of five cents per share totalling $3,066,848 (2014:
four cents)
3,067
2,453
On 27th August 2015, the directors declared a final unfranked dividend of five cents per
share, totaling $3,066,848 (2014: five cents per share totaling $3,066,848).
Net franking credits available based on a tax rate of 30% (2014: 30%)
3,067
577
3,067
577
The above amounts represent the balance of the franking account as at the end of the financial year, adjusted for:
(a) franking credits that will arise from the payment of the current tax liability
(b) franking debits that will arise from the payment of dividends recognised as a liability at the reporting date
(c) franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date
(d) franking credits that may be prevented from being distributed in subsequent financial years
21. Contingent assets anD liaBilities
The consolidated entity had no contingent assets as at 30 June 2015 (2014: nil).
The consolidated entity has given bank guarantees as at 30 June 2015 of $605,166 (2014: $1,344,287)
to various landlords.
65
Beyond InternatIonal AnnuAl RepoRt 2015
22. Commitments
ConsoliDateD entity
2014
$000's
2015
$000's
(i) OPERATING lEASE PAyABlE COMMITMENTS
Total lease expenditure contracted at reporting date but not recognised in the financial statements:
Payable no later than one year
Payable later than one, not later than five years
Payable later than five years
2,003
2,568
–
2,281
3,409
–
4,571
5,690
Operating lease commitments includes contracted amounts for various offices and plant and equipment under
non-cancellable operating leases expiring within one to five years with, in some cases, options to extend.
The leases have various escalation clauses. On renewal, the terms of the leases are renegotiated.
(ii) DISTRIBuTION GuARANTEE COMMITMENTS
In the course of the Consolidated Entity's feature film, television and Home Entertainment businesses,
commitments to pay distribution guarantees and advances of minimum proceeds from sales have been
made to producers at reporting date but not recognised in the financial statements:
Not later than one year
Distribution Guarantee
Home Entertainment Advances
Later than one year but not later than five years
Distribution Guarantee
Home Entertainment Advances
Later than five years
Home Entertainment Advances
1,477
2,722
1,224
2,401
301
76
–
428
–
–
4,576
4,053
The above commitments to pay distribution guarantees have been entered into in the normal course of business.
(iii) OPERATING lEASE RECEIVABlE COMMITMENTS
Total lease receipts contracted at reporting date but not recognised in the financial statements:
Receivable no later than one year
Receivable later than one, not later than five years
Receivable later than five years
477
–
–
645
430
–
477
1,075
Operating lease commitment relates to the sub lease of part of the Brisbane office with a lease term of 20
months. The lease commenced in September 2013 and will not be renewed.
66
NOTES TO THE fINANCIAL STATEMENTS 2015
23. share BaseD payments
General Employee Share loan Plan
"The Board has adopted an employee share plan under which employees and Directors of the Consolidated
Entity may subscribe for shares in the Company using funds loaned to them by the Consolidated Entity. The
Board has also adopted a share plan on substantially the same terms for consultants of the Consolidated Entity
(Consultant Plan). The purpose of the Employee Plan is to:
(a) assist in the retention and motivation of employees and Directors of the Consolidated Entity by providing
them with a greater opportunity to participate as shareholders in the success of the Consolidated Entity; and
(b) create a culture of share ownership amongst the employees of the Consolidated Entity.
There have been three issues of shares under the Employee Share plan as follows:
– On 12 April 2006, 962,500 shares were issued under the Employee Plan to eligible employees and Directors
of Beyond International Limited and its controlled entities. 700,000 of these shares remain redeemable at
30 June 2015.
– On 7 December 2009, 300,000 shares were issued under the Employee Plan to eligible employees and
Directors of Beyond International Limited and it's controlled entities. All of these shares remain redeemable
at 30 June 2015.
– On 11 March 2010, 1,325,000 shares were issued under the Employee Plan to eligible employees and Directors
of Beyond International Limited and it's controlled entities. 835,000 of these shares remain redeemable at
30 June 2015.
In all cases the company entered into limited non-recourse loan agreements to provide participants the funds
necessary to subscribe for those shares. Shares were issued in accordance with the Employee Plan rules.
The loans were made based on the greater of market value of the shares on allotment date and $0.645 (Dec
09 – 2010 plan), $0.75 (Mar 10 – 2010 plan) & $0.60 (2006 plan). As the loans are non-recourse, the value of the
loans are not recognised as an asset, and the corresponding share value is not recorded in equity. The total of
the Plan Shares are included in Issued Capital at note 17(a).
Notwithstanding any other provision of the Plan, each Participant has a legal and beneficial interest in the Shares
issued to him or her and is at all times absolutely entitled to those Plan Shares, except that any dealings with
those Shares by the Participant may be restricted in accordance with the plan rules. Plan Shares rank equally
with all existing Shares from the date of issue in respect of all rights issues, bonus issues, dividends and other
distributions to, or entitlements of, holders of existing Shares where the record date for such corporate actions
is after the relevant Plan Shares are issued. On termination, the Participant may elect to pay the loan or transfer
all of their Plan Shares back to the Company, subject to requirements of the Corporations Act. If the Participant
transfers the shares back to the Company, the Company may:
i) transfer the Plan Shares for the issue price to a person nominated by the Company; or
ii) procure a broker to sell all or any of the Plan Shares on-market.
Share movements in the plan as follows:
Outstanding at the beginning of year
Redemption of shares under the employee share plan
Exercisable at year end
numBer of
shares
1,885,000
(125,000)
1,760,000
Change in
equity value
$000's
92
The Plan Shares issued as part of the 2010 Plan required that Participants could only deal with the shares on
a pro-rata basis for a 3 year period. During this period, the Company accounted for the Plan Shares as if they
were options. The grant fair value of the shares was amortised across the vesting period as follows:
vesting perioD
11 March 2010 to 30 June 2010
amortisation $
15,587
Financial year ending 30 June 2011
Financial year ending 30 June 2012
Financial year ending 30 June 2013
66,718
66,718
47,602
67
Beyond InternatIonal AnnuAl RepoRt 2015
23. share BaseD payments (continued)
The grant fair value of the 2010 plan was calculated by using the Black Scholes option pricing model applying the
following inputs:
Weighted average exercise price
Weighted average life of the option
Underlying share price
Expected share price volatility (i)
Risk free interest rate
Expected dividend rate
Weighted average fair value price
$0.75
3
$0.75
30%
5.00%
6.00%
$0.10
(i) Expected share price volatility has been estimated based on the historical volatility of the Company's share price.
24. ControlleD entities
(a) Controlled entities consolidated
name of entity
ultimate parent entity
Beyond International Limited
Controlled entities of
Beyond International limited:
Beyond Films Limited
Beyond Television Group Pty Ltd
Beyond Television Pty Ltd
Beyond Entertainment Pty Ltd
Beyond Simpson le Mesurier Pty Ltd
Liberty & Beyond Pty Ltd
Beyond Imagination Pty Ltd
Beyond Miall Kershaw Pty Ltd
Pacific & Beyond Pty Ltd
Beyond Screen Productions Pty Ltd
Beyond Home Entertainment Pty Ltd
Beyond Entertainment Holdings Limited
Beyond D Pty Ltd
Beyond West Pty Ltd
Controlled entities of
Beyond Entertainment Pty ltd:
Mullion Creek and Beyond (partnership)
Equus Film Productions Pty Ltd
BTVUS Pty Ltd
Controlled entities of
liberty & Beyond Pty ltd:
Country of
formation or
inCorporation
BeyonD international limiteD
DireCt interest
in orDinary shares
2015
%
2014
%
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Ireland
Australia
Australia
Australia
Australia
Australia
100
100
26
100
51
51
51
51
51
100
100
100
100
100
51
51
100
100
100
26
100
51
51
51
51
51
100
100
100
100
100
51
51
0
Liberty & Beyond Productions Pty Ltd
Australia
100
100
68
NOTES TO THE fINANCIAL STATEMENTS 2015
24. ControlleD entities (continued)
Controlled entities of
Beyond Television Group Pty ltd:
Beyond Television Pty Ltd
Controlled entities of
Beyond Television Pty ltd:
Beyond Properties Pty Ltd
Beyond Productions Pty Ltd
Beyond Distribution Pty Ltd
Controlled entities of
Beyond Properties Pty ltd:
Beyond Pty Ltd
Beyond International Group Inc
The Two Thousand Unit Trust *
Australia
74
74
Australia
Australia
Australia
Australia
USA
Australia
100
100
100
100
100
100
100
100
100
100
100
100
* The corporate trustee of the trust is Beyond Properties Pty Ltd.
Controlled entities of
Beyond International Group Inc:
Beyond Productions Inc
name of entity
Controlled entities of
Beyond Simpson le Mesurier Pty ltd:
Beyond Simpson le Mesurier Productions Pty Ltd
BSLM Productions Pty Ltd
Something in the Air Pty Ltd
Something in the Air 2 Pty Ltd
Beagle Productions Pty Ltd
Stingers 3 Pty Ltd
Stingers 4 Pty Ltd
Stingers 5 Pty Ltd
Halifax 5 Pty Ltd
Halifax 6 Pty Ltd
Controlled entities of
Beyond Entertainment holdings limited
Beyond Entertainment Limited
Beyond Films Limited
Controlled entities of
Beyond Entertainment limited
Beyond Finance (BOC) Inc. (refer note 25(b))
Beyond Finance (MERC) Inc (refer note 25(b))
Controlled entities of
Beyond Distribution Pty limited
Beyond TV Properties Bermuda
USA
100
100
Country of
formation or
inCorporation
interest in orDinary shares
2015
%
2014
%
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Ireland
Ireland
USA
USA
100
100
100
100
100
100
100
100
100
100
100
100
0
0
100
100
100
100
100
100
100
100
100
100
100
100
0
0
Bermuda
100
100
69
Beyond InternatIonal AnnuAl RepoRt 2015 24. ControlleD entities (continued)
name of entity
Controlled entities of
Beyond Films limited
Country of
formation or
inCorporation
interest in orDinary shares
2015
%
2014
%
Beyond Film Properties Bermuda
Bermuda
100
100
Controlled entities of
Beyond home Entertainment Pty limited
Magna Home Entertainment Pty Ltd
Australia
100
100
Controlled entities of
Magna home Entertainment Pty limited
Magna Home Entertainment (NZ) Limited
New Zealand
100
100
Controlled entities of
Beyond D Pty ltd
Beyond D (NZ) Ltd
Entity controlled jointly by
Beyond TV Properties Bermuda and
Beyond Films Properties Bermuda
New Zealand
100
100
Beyond International Services Limited
United Kingdom
100
100
Controlled entities of
BTVuS Pty ltd
B U.S.A. Holdings, Inc.
Controlled entities of
B u.S.A. holdings, Inc
Move It or List It, Inc
25. finanCial instruments
(i) Capital Risk Management
USA
USA
100
100
0
0
The Consolidated Entity manages its capital to ensure that entities in the group will be able to continue as
a going concern while maximising the return to stakeholders. The Consolidated Entity’s strategy remains
unchanged from 2014.
The capital structure of the group consists of cash and equity attributable to the equity holders of the parent
entity, comprising issued capital, reserves and retained earnings. The Consolidated Entity operates globally,
primarily through subsidiary companies established in the markets in which the group trades. The consolidated
entity is subject to certain financing arrangements covenants and meeting these are given priority in all capital risk
management decisions. For further details on events of default on these financing arrangements, refer to note 6(c).
Operating cash flows are used to make the routine outflows of tax and dividends.
(ii) Market Risk
The Consolidated Entity’s activities expose it primarily to the financial risks of changes in foreign currency
exchange rates (refer note 25 (iii)).
(iii) Foreign Currency Risk Management
The Consolidated Entity undertakes certain transactions denominated in foreign currencies, hence exposures
to exchange rate fluctuations arise.
Derivative financial instruments are used by the Consolidated Entity to hedge exposure to exchange rate risk
associated with foreign currency trade receivables. Mark-to-market gains on derivative financial instruments
used by the economic entity are recognised in the financial statements. Transactions for hedging purposes are
undertaken without the use of collateral as only reputable institutions with sound financial positions are dealt with.
70
NOTES TO THE fINANCIAL STATEMENTS 2015
25. finanCial instruments (continued)
Foreign currency sensitivity analysis
The Consolidated Entity is mainly exposed to US dollars (USD), Euro (EUR), Great British Pound (GBP)
and New Zealand Dollars (NZD).
The carrying amount of the foreign currency denominated financial assets and liabilities at the reporting date
is as follows:
ConsoliDateD entity
US Dollars
Euro
Great British Pound
New Zealand Dollars
Other
finanCial
assets
$000's
10,314
2015
finanCial
liaBilities
$000's
93
finanCial
assets
$000's
10,185
2014
finanCial
liaBilities
$000's
315
1,837
1,923
914
102
15,090
55
142
1,011
30
1,331
962
1,504
705
171
13,527
101
67
655
–
1,138
The following table details the Consolidated Entity's sensitivity to a 10% increase and decrease in the Australian
dollar against the relevant foreign
currencies. A sensitivity rate of 10% is considered reasonable based on exchange rate fluctuations over the past
12 months. The sensitivity analysis includes
only outstanding foreign currency financial assets and liabilities and adjusts their translation at the period end for
a 10% change in foreign currency rates.
ConsoliDateD entity
Profit/(loss)
Other reserves
10%
inCrease
$000's
(980)
2015
10%
DeCrease
$000's
1,228
10%
inCrease
$000's
(936)
–
–
(1)
(980)
1,228
(937)
2014
10%
DeCrease
$000's
1,143
1
1,144
71
Beyond InternatIonal AnnuAl RepoRt 2015 25. finanCial instruments (continued)
Forward foreign exchange contracts
It is the policy of the Consolidated Entity to enter into forward foreign exchange contracts to cover specific
production foreign currency receipts.
The Consolidated Entity does not enter into derivative financial instruments for speculative purposes.
The following table details the forward foreign currency contracts outstanding as at the reporting date.
ConsoliDateD entity
Outstanding Contracts
Sell USD
Less than 3 months
3 to 6 months
Longer than 6 months
Gains or losses from forward
exchange contracts
Unrealised gains
Unrealised losses
(iv) Interest Rate Risk Management
average
exChange
rate
2015
average
exChange
rate
2014
prinCipal
amount
2015
$000's
prinCipal
amount
2014
$000's
0.8130
0.7954
0.9427
0.9403
0.9312
1,300
520
–
1,820
–
91
91
1,362
602
326
2,290
–
5
5
The Consolidated Entity's exposure to interest rate risk is minimal. The group does not have significant borrowings
in the current or prior periods. At 30 June 2015 there are no borrowings attached to variable interest rates.
The Consolidated Entity's exposures to interest rates on financial assets and financial liabilities are detailed in
the liquidity risk management section of this note, per below.
Interest rate sensitivity analysis
The sensitivity analysis below have been determined based on the exposure to interest rates at the reporting
date and the stipulated change taking place at the beginning of the financial year and held constant throughout
the reporting period. A sensitivity analysis of 50 basis points is considered reasonable based on interest rate
fluctuations over the past 12 months.
At reporting date, if interest rates had been 50 points higher or lower and all other variables were held constant,
net interest received from cash held by the Consolidated Entity would increase or decrease by $39,536 (2014:
$46,667).
(v) liquidity Risk Management
Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have built
an appropriate liquidity risk management framework for the management of the Consolidated Entity's short,
medium and long-term funding and liquidity management requirements. This framework is not formally
documented. The Consolidated Entity manages liquidity risk by maintaining adequate reserves and banking
facilities by continuously monitoring forecast and actual cash flows. Included in note 6(c) is a listing of additional
undrawn facilities that the Consolidated Entity has at its disposal to further reduce liquidity risk.
72
NOTES TO THE fINANCIAL STATEMENTS 2015
25. finanCial instruments (continued)
liquidity and interest risk tables
The following tables detail the Consolidated Entity's remaining contractual maturity for it's financial liabilities.
ConsoliDateD
entity
notes
average
interest
rate %
less
than 6
months
$000's
6 months
to 1 year
5+
1 to 5
years
years
$000's $000's $000's
total
outfloWs
$000's
Carrying
amount
$000's
2015
Financial liabilities
Trade & other payables 13
Financial derivatives
10
Producer share payable 16
Other payables
16
Total financial liabilities
2014
Financial liabilities
Trade & other payables 13
Financial derivatives
10
Producer share payable 16
Other payables
16
Total financial liabilities
(vi) Credit Risk Exposures
–
–
–
–
–
–
–
–
6,025
91
–
–
–
–
3,666
3,666
710
195
–
–
9,977
3,666
710
5,995
5
4,522
260
–
–
–
–
4,519
617
–
–
10,782
4,519
617
–
–
–
–
–
–
–
–
–
–
6,025
6,025
91
91
8,042
8,042
195
195
14,354
14,354
5,995
5,995
5
9,658
260
15,918
5
9,658
260
15,918
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Consolidated Entity. The consolidated entity has adopted a policy of only dealing with creditworthy
counterparties as a means of mitigating the risk of financial loss from defaults. This information is supplied by
credit rating agencies and, if not available, the Consolidated Entity uses publicly available financial information
to assess the credit-worthiness.
Trade receivables consist of a large number of customers, spread across diverse geographical areas. Ongoing
reviews are conducted of accounts receivable balances. The Consolidated Entity does not have significant
credit risk exposure to any single counterparty. The credit risk on liquid funds and derivative financial
instruments is limited because the counterparties are banks with high credit-ratings assigned by international
credit-rating agencies.
The credit risk on financial assets of the Consolidated Entity which are recognised on the Statement of Financial
Position is generally the carrying amount, net of any provisions for doubtful debts.
(vii) Price Risk
The Consolidated Entity is marginally exposed to equity price risk arising from the equity investments classified
as available-for-sale assets in Note 10(a). Equity investments are held for strategic rather than trading purposes.
The Consolidated Entity does not actively trade in this investment.
(viii) Equity price sensitivity analysis
The sensitivity analysis below have been determined based on the exposure to equity price risks at the reporting
date and the stipulated change taking place at the reporting date. A sensitivity analysis of 20 percent is
considered reasonable based on movements in equity markets over the last twelve months.
At reporting date, if the relevant equity price had been 20 percent higher or lower and all other variables were
held constant, the Consolidated Entity's reserves would increase or decrease by $838 (2014: $1,661), as a result
of changes in fair value of available-for-sale shares.
73
Beyond InternatIonal AnnuAl RepoRt 2015 25. finanCial instruments (continued)
(ix) Net Fair Value of Financial Instruments
The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and liabilities
approximates their carrying values. A discount rate of 8% (2014: 8%) has been applied to all non-current
receivables & borrowings to determine fair value.
The net fair value of other monetary financial assets and liabilities is based upon market prices where a market
exists or by discounting the expected future cash flows by the current interest rates for assets and liabilities with
similar risk profiles.
For forward exchange contracts the net fair value is taken to be the unrealised gain or loss as at the date of
the report calculated by reference to the current forward rates for similar contracts.
Financial assets
Cash and cash equivalents
Loans and receivables
Available for sale
Financial liabilities, at amortised cost
Trade and other payables
Other payables
Financial derivatives
Producer share payable
Carrying amount
2014
$000's
2015
$000's
net fair value
2015
$000's
2014
$000's
10,403
10,985
10,403
10,985
31,434
30,536
31,299
30,290
4
8
4
8
41,841
41,529
41,706
41,283
6,025
5,995
6,025
5,995
195
91
8,042
14,354
260
5
9,658
15,917
195
91
260
5
7,990
9,612
14,301
15,872
74
NOTES TO THE fINANCIAL STATEMENTS 2015
26. key management personnel Compensation
Directors
The following persons were directors of Beyond International Limited during the financial year:
Chairman
Ian Ingram
Executive directors
Mikael Borglund – Managing Director
Non-executive directors
Anthony Lee
Ian Robertson
Executives (other than directors) with the greatest authority for strategic direction and management
The following persons were the seven executives with the greatest authority for the strategic directions and
management of the Consolidated Entity ("specified executives") during the financial year.
Name
Position
Employer
J Luscombe General Manager – Productions & Executive Vice President Beyond Television Group Pty Limited
T McGee
General Manager – Business Development
Beyond Television Group Pty Limited
M Murphy General Manager – Distribution
Beyond Entertainment Limited
P Wylie
General Manager – Finance & Company Secretary
Beyond Television Group Pty Limited
P Tehan
General Manager – Legal & Business Affairs
Beyond Television Group Pty Limited
P Maddison General Manager – Home Entertainment
Beyond Home Entertainment Pty Limited
J Ward
General Manager – Beyond D
Beyond D Pty Limited
Information on key management personnel compensation is disclosed below and in the Directors' Report.
(ii) REMuNERATION
The aggregate compensation made to directors and other members of key management personnel of the
consolidated entity is set out below:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Share-based payments
ConsoliDateD entity
2015
$
3,767,639
141,893
85,910
–
2014
$
3,994,891
148,341
–
–
3,995,442
4,143,232
75
Beyond InternatIonal AnnuAl RepoRt 2015 26. key management personnel Compensation (continued)
(iii) ShAREhOlDINGS
Number of Shares held by Directors and Specified Executives, including their personally related parties
parent entity
DireCtors
M Borglund
I Ingram
A Lee
I Robertson
Total
BALANcE 1.07.14
3,150,949
16,176,716
5,474,997
110,000
24,912,662
2015
REcEIvEd As
remuneration
–
OPTIONs
exerCiseD
–
NET chANgE
OThER *
–
BalanCe
30.6.15
3,150,949
–
–
–
–
–
–
–
–
1,275,855
17,452,571
–
–
5,474,997
110,000
1,275,855
26,188,517
speCifieD exeCutives BalanCe 1.07.14
273,478
J Luscombe
REcEIvEd As
remuneration
–
OPTIONs
exerCiseD
–
NET chANgE
OThER *
–
T McGee
P Wylie
P Tehan
P Maddison
M Murphy
J Ward
Total
75,000
2,000
75,000
50,000
–
–
475,478
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
BalanCe
30.6.54
273,478
75,000
2,000
75,000
50,000
–
–
475,478
parent entity
DireCtors
M Borglund
I Ingram **
A Lee
I Robertson
Total
BalanCe 1.07.13
3,509,101
16,154,716
5,474,997
110,000
25,248,814
2014
REcEIvEd As
remuneration
–
OPTIONs
exerCiseD
–
NET chANgE
OThER *
(358,152)
BalanCe
30.6.14
3,150,949
–
–
–
–
–
–
–
–
22,000
16,176,716
–
–
5,474,997
110,000
(336,152)
24,912,662
speCifieD exeCutives BalanCe 1.07.13
273,478
J Luscombe
REcEIvEd As
remuneration
–
OPTIONs
exerCiseD
–
NET chANgE
OThER *
–
BalanCe
30.6.14
273,478
T McGee
F Crago
R Milne
P Wylie
P Tehan
P Maddison
M Murphy
J Ostler
J Ward
Total
75,000
125,000
150,000
–
75,000
75,000
–
–
–
773,478
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
75,000
(125,000)
(150,000)
2,000
–
(25,000)
–
–
–
–
–
2,000
75,000
50,000
–
–
–
(298,000)
475,478
* Net Change Other refers to shares purchased or sold during the financial year.
** I Ingram opening balance has been restated to include Family members.
76
NOTES TO THE fINANCIAL STATEMENTS 2015
27. relateD parties
(i) CONTROllING ENTITIES
Beyond International Limited is the ultimate parent entity in the wholly-owned group comprising the Company
and its wholly-owned controlled entities which are disclosed in note 24.
(ii) kEy MANAGEMENT PERSONNEl
Disclosures relating to key management personnel are set out in note 26 and the remuneration report in
the directors' report.
loans to key management personnel
There were no outstanding loans as at 30 June 2015 or at any point during the year (2014: nil).
Equity transactions with directors and their director-related entities
The aggregate number of equity instruments acquired or disposed of by directors of the Consolidated Entity
and their director-related entities during the year were:
Acquisitions
Disposals
Ordinary shares
Ordinary shares
2015
ConsoliDateD entity
2014
numBer
–
1,275,855
–
(336,152)
The aggregate number of equity instruments held by directors of the Consolidated Entity and their director-
related entities at balance date were:
Issuing entity
Class of equity instruments
numBer
Beyond International Limited
Ordinary shares
26,188,517
24,912,662
Options over ordinary shares
–
–
Other transactions with directors of the Company and controlled entities and their director-related entities
The following directors and their director related entities provided executive producer services to entities in the
Consolidated Entity.
ConsoliDateD entity
2014
$
2015
$
Directors
Denis Spencer
Director related entity
Beyond Screen Productions Pty Ltd
–
24,000
All transactions are on normal terms and conditions and in the ordinary course of business.
The aggregate amounts recognised in respect of each of the above transactions with directors of entities
in the Consolidated Entity and their director-related entities:
Transaction type
Executive producer services
–
24,000
77
Beyond InternatIonal AnnuAl RepoRt 2015 27. relateD parties (continued)
(iii) TRANSACTIONS WITh ENTITIES IN ThE WhOlly-OWNED GROuP
Beyond International Limited is the ultimate parent entity in the wholly-owned group comprising the Company
and its wholly-owned controlled entities. The Company advanced and repaid loans, received loans, provided
management services, received dividends and charged rent to other entities in the wholly-owned group during
the current and previous financial years. With the exception of loans advanced free of interest to wholly-owned
subsidiaries, these transactions were on commercial terms and conditions. Such loans are repayable on demand.
(iv) TRANSACTIONS WITh OThER RElATED PARTIES
ConsoliDateD entity
2014
2015
$
$
The aggregate amounts recognised in respect of the following types of transactions and each class of related
party involved were:
Transaction type
Class of other related party
Legal services (Holding Redlich)
Associates
52,833
6,388
The above transactions were made on commercial terms and conditions, at market rates.
J Luscombe is a director of Ryzara Pty Ltd. The company has received payments for services rendered by
J Luscombe during the year. These fees are included as part of the Executive Remuneration disclosed in Note 26
and the Directors Report.
K Borglund (M Borglund's daughter) is the owner of Idylic Interiors. Idylic Interiors provided refurbishment
services to the organisation, with a total value of $0 (2014: $17,358) during the financial year.
M Borglund was a director of Wight Expedition Films Pty Ltd (Resigned – 14/10/14). Beyond International Limited
provided services in 2014 – including executive producer, production, production accountancy and administration
services – to Wight Expedition Films Pty Ltd.
Amount of the services provided to Wight Expedition Films date which has
been recognised in the financial year
ConsoliDateD entity
2014
$
2015
$
–
90,000
Beyond Entertainment Limited, a subsidiary of the parent company, holds 50% of the shares in 7Beyond Media
Rights Limited (refer to note 14). At 30 June 2015 Beyond Entertainment Limited had a liability of $176,415 (2014:
$nil) owing to 7Beyond Media Rights Limited. This liability relates to funding provided for operating costs in
7Beyond Media Rights Limited and has been disclosed in Note 14. Beyond Productions Inc, another subsidiary of
the parent company, had an amount of $510,638 (2014: payable of $57,155) owing from 7Beyond Media Rights
Limited at 30 June 2015. This amount relates to production services provided by Beyond Productions Inc on
behalf of 7Beyond Media Rights Limited and has been included in Receivables (Note 7). Beyond Entertainment
Limited charged 7Beyond Media Rights Limited a management fee of $158,331 (2014: $34,940) for the provision
of accounting and administration services. The management fee has been disclosed as Other income in Note 3(a).
(v) TRANSACTIONS WIThIN ThE WhOlly OWNED GROuP
Due to the nature of the operations of the Consolidated Entity, normal operating transactions take place between
subsidiaries within the group. These are all at arms length and are eliminated on consolidation.
78
NOTES TO THE fINANCIAL STATEMENTS 2015
28. parent entity
The following information relates to the parent entity Beyond International Limited. The information presented
has been prepared using accounting policies that are consistent with those presented in Note 1.
Statement of financial position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Contributed equity
Reserves
Accumulated losses
Total equity
Profit for the year
Other comprehensive income
Total comprehensive income for the year
Contingent Assets and liabilities
parent entity
2015
$000's
10,567
9,953
20,520
497
–
497
33,867
341
(14,185)
20,023
6,187
–
6,187
2014
$000's
10,261
9,643
19,904
781
–
781
33,774
341
(14,992)
19,123
4,769
–
4,769
The parent entity has given a bank guarantee as at 30 June 2015 of $579,416
(2014: $579,416) to its landlord.
Capital Commitments – Operating lease Commitments
Total lease expenditure contracted at reporting date but not recognised in the financial statements:
Payable no later than one year
Payable later than one, not later than five years
Payable later than five years
29. suBsequent events
(i) DiviDenD
671
1,413
–
2,084
648
2,084
–
2,732
Final dividend declared as detailed in Note 20. With the exception of the dividends, there are no subsequent events
to disclose.
30. Company Details
The registered office & principal place of business of the company is:
Beyond International Limited
109 Reserve Road
Artarmon, NSW 2064
Australia
79
Beyond InternatIonal AnnuAl RepoRt 2015 BEYOND INTERNATIONAL LIMITED AND ITS CONTROLLED ENTITIES
ABN 65 003 174 409
DIRECTORS’ DEClARATION
In the directors’ opinion:
• the attached financial statements and notes thereto comply with the Corporations Act
2001, the Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements;
• the attached financial statements and notes thereto comply with International Financial
Reporting Standards as issued by the International Accounting Standards Board as
described in note 1 to the financial statements;
• the attached financial statements and notes thereto give a true and fair view of the
consolidated entity’s financial position as at 30 June 2015 and of its performance for
the financial year ended on that date;
• there are reasonable grounds to believe that the company will be able to pay its debts
as and when they become due and payable; and
The directors have been given the declarations required by Section 295A of the Corporations
Act 2001.
Signed in accordance with a resolution of the directors made pursuant to section 295(5)
of the Corporations Act 2001.
On behalf of the directors
Mikael Borglund
Managing Director
27 August 2015
Sydney
80
DIRECTORS’ DECLARATION 2015
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret St
Sydney NSW 2000
Australia
INDEPENDENT AUDITOR’S REPORT
To the members of Beyond International Limited
Report on the Financial Report
We have audited the accompanying financial report of Beyond International Limited, which comprises
the consolidated statement of financial position as at 30 June 2015, the consolidated statement of
profit or loss and other comprehensive income, the consolidated statement of changes in equity and
the consolidated statement of cash flows for the year then ended, notes comprising a summary of
significant accounting policies and other explanatory information, and the directors’ declaration of the
consolidated entity comprising the company and the entities it controlled at the year’s end or from
time to time during the financial year.
Directors’ Responsibility for the Financial Report
The directors of the company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error. In Note 1(A), the directors also state, in accordance with Accounting Standard AASB 101
Presentation of Financial Statements, that the financial statements comply with International
Financial Reporting Standards.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our
audit in accordance with Australian Auditing Standards. Those standards require that we comply with
relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain
reasonable assurance about whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial report. The procedures selected depend on the auditor’s judgement, including the
assessment of the risks of material misstatement of the financial report, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the company’s
preparation of the financial report that gives a true and fair view 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 internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting estimates made by the directors, as
well as evaluating the overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd
ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership and BDO (Australia) Ltd are members of BDO International
Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme
approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.
72
81
Beyond InternatIonal AnnuAl RepoRt 2015
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations
Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which
has been given to the directors of Beyond International Limited, would be in the same terms if given to
the directors as at the time of this auditor’s report.
Opinion
In our opinion:
(a)
the financial report of Beyond International Limited is in accordance with the Corporations Act
2001, including:
(i)
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2015
and of its performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(b)
the financial report also complies with International Financial Reporting Standards as disclosed in
Note 1(A).
Report on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June
2015. The directors of the company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
Opinion
In our opinion, the Remuneration Report of Beyond International Limited for the year ended 30 June
2015 complies with section 300A of the Corporations Act 2001.
BDO East Coast Partnership
Craig Maxwell
Partner
Sydney, 27 August 2015
73
2
82
INDEPENDENT AUDITOR’S REPORT 2015
sharehoLDer information
rank
holDer
units
% of issueD Capital
11,948,422
11,338,888
5,600,182
3,442,000
2,671,683
2,531,111
2,416,224
2,228,044
1,921,083
1,757,862
1,581,751
1,211,770
1,200,000
1,012,500
614,700
559,016
546,820
450,000
425,990
419,031
53,877,077
7,459,891
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
FREMANTLEMEDIA OVERSEAS LIMITED
SEALION MEDIA LIMITED
NATIONAL NOMINEES LIMITED
WINCHESTER INVESTMENTS GROUP PTY LIMITED
MR IAN INGRAM
WILVESTOR LIMITED
WILGRIST NOMINEES LIMITED
MS YUN CHUN MARIE CHRISTINE LEE
AXPHON PTY LIMITED
CLIPPER HOLDINGS LTD
NOMITOR LIMITED
MR MIKAEL JOHN BORGLUND
DRESDNER FAMILY SUPERANNUATION FUND
PEARL FINANCE LIMITED
ALLAN DALE HOLDINGS PTY LTD
SOURCE INCORPORATED
DIXSON TRUST PTY LIMITED
LSW INVESTMENTS PTY LIMITED
MS IRENE YUN LIEN LEE
20
DEBOURS PTY LIMITED
Totals: Top 20 holders of ISSuED CAPITAl
Total Remaining holders Balance
DISTRIBuTION OF EQuITy SECuRITIES
range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – 9,999,999,999
Total
total holDers
223
238
96
134
31
722
There were 136 holders of less than a marketable parcel of shares.
19.48%
18.49%
9.18%
7.33%
4.82%
4.13%
3.94%
3.63%
3.13%
2.58%
1.98%
1.96%
1.65%
0.91%
0.89%
0.73%
0.69%
0.68%
0.55%
0.54%
87.84%
12.16%
83
Beyond InternatIonal AnnuAl RepoRt 2015 Dance Moms
84
CORPORATE DIRECTORY 2015
corporate Directory
DireCtors
Ian Ingram
Chairman of Directors
109 Reserve Road
Artarmon NSW 2064
Mikael Borglund
Managing Director
109 Reserve Road
Artarmon NSW 2064
Anthony lee
Non-Executive Director
109 Reserve Road
Artarmon NSW 2064
Ian Robertson
Non-Executive Director
109 Reserve Road
Artarmon NSW 2064
offiCers
Mikael Borglund
Chief Executive Officer
Paul Wylie
Company Secretary
offiCes
Bankers
Sydney
109 Reserve Road
Artarmon NSW 2064
Australia
Telephone: +61 (0) 2 9437 2000
Facsimile: +61 (0) 2 9437 2181
www.beyond.com.au
Brisbane
701 Macarthur Avenue Central
Eagle Farm QLD 4009
Australia
Telephone: +61 (0) 7 3267 9888
Facsimile: +61 (0) 7 3267 1116
Dublin
78 Merrion Square South
Dublin 2
Ireland
Telephone: +353 (0) 1 614 6270
Facsimile: +353 (0) 1 639 4944
london
3rd Floor, 167 Wardour Street
London, W1F 8WP, United Kingdom
Telephone: +44 (0) 20 7323 3444
Facsimile: +44 (0) 20 7580 6479
auDitor / aCCountant / aDvisors
BDO East Coast Partnership
Chartered Accountants
Level 11, 1 Margaret Street
Sydney NSW 2000
St George Bank
Level 12, 55 Market Street
Sydney NSW 2000
Bank of Ireland
Colvill House
Talbot Street
Dublin 1
Ireland
soliCitors
Addisons
Level 12, 60 Carrington Street
Sydney NSW 2000
holding Redlich
Level 65, MLC Centre
19 Martin Place
Sydney NSW 2000
Gaines, Solomon law Group llP
1901 Avenue of the Stars
Suite 1100
Los Angeles, California 90067
United States of America
share registry
Computershare Investor Services Pty ltd
Level 3, 60 Carrington Street
Sydney NSW 2000
Telephone: 1300 855 080
Blood + Thunder: The Sound of Alberts
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Beyond InternatIonal AnnuAl RepoRt 2015 Beyond International Annual Report
www.beyond.com.au