Infomedia

Annual Report 2008

A Celebration of Innovation

Table of Contents

Results at a Glance

Chairman’s Letter

Company Profi  le

CEO’s Report

Year in Review

Strong Management

Directors’ Report

Auditor’s Independence Declaration

Income Statement

Balance Sheet

Cash Flow Statement

Statement of Changes in Equity

Notes to the Financial Statements

Directors’ Declaration

Independent Audit Report

Corporate Governance

Additional Information

Corporate Directory

1   infomedia.com.au

2

3

5

7

13

19

23

35

36

37

38

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41

80

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82

89

90

© 2008 Infomedia Ltd. All rights reserved worldwide. 
This document may not be reproduced in whole or in part 
without the express written permission of Infomedia Ltd.

Sales Revenue

,

08
51.7

(in $ millions)
,

00
21.0

,

01
34.5

,

02
43.9

,

03
61.9

,

05
59.1

,

04
69.6

EBITDA

(in $ millions)

,

08
20.0

,
00
12.6

,

07
54.6

,

06
55.6

,

07
23.6

,

06
25.8

,

05
27.3

Results at a Glance

NPAT

,

08
13.1

(in $ millions)
,
00
7.7

,

04
20.7

,
01
12.8

,

02
13.4

,

03
18.3

,

07
15.3

,

06
18.1

,
01
20.0

,

05
5.5

,

02
20.9

,

03
30.6

,

04
35.7

Product Subscriptions

Electronic Parts Catalogues

Superservice Menus

60,000

50,000

40,000

30,000

20,000

10,000

0

,

98

,
99

,

00

,

01

,
02

,
03

,

04

,

05

,

06

,

07

‘08

infomedia.com.au     2

Chairman’s Letter

Dear Fellow Shareholders,

In refl  ecting on FY2008, I am pleased 

to report that your Company has 

made further strides towards 

consolidating the business in what 

has undoubtedly been a challenging 

economic climate.

Encouragingly, the Company’s cash 

fl ows and recurring revenue sales 

both remain strong. In particular, 

Superservice Menus™ continues 

to be positively received by the 

automakers. The Company signed a 

global agreement with Hyundai for 

the Superservice Menus solution, as 

part of which Hyundai will endorse the 

use of the Company’s service menu 

pricing systems to all Hyundai service 

departments worldwide. And of 

particular interest is our agreement to 

supply Superservice Menus to General 

Motors Corporation (GM). Under the 

terms of this agreement, Infomedia 

will offer Superservice Menus to the 

huge network of General Motors 

dealerships, representing the brands 

of Buick, Cadillac, Chevrolet, GMC 

Truck, Oldsmobile, Pontiac, Saturn, 

H2, H3 and Saab.

3   infomedia.com.au

“

Microcat® and Partfi nder®, which 

grew by 6% – a growth which, when 

taken together with Superservice 

Menus, saw the Company’s total 

subscription numbers exceed 60,000 

for the fi rst time in our history. 

“

and will end no later than April 2009. 

As of this writing, we have purchased 

5,517,157 shares at an average price 

of 37.78 cents for a total cost of 

$2,084,644. 

As mentioned in previous Letters, and 

despite an active hedging policy, the 

Company continues to be affected 

by foreign currency translation. This 

The Company also successfully renewed 

currency impact, together with the 

a number of existing contracts for our 

cessation of our General Motors 

world class Electronic Parts Catalogue 

EPC subscription revenue, has had a 

(EPC) during the year, with Ford Mexico, 

dampening effect on revenue. Sales 

Ford Asia Pacifi c, Toyota Mexico and 

Revenue declined by 5.3% from $54.6 

Toyota USA. All of these contracts are 

million in FY2007 to $51.7 million in 

for multi-year terms, and in the case 

FY2008, and Normalised Net Profi t 

of Ford, represent another successful 

After Tax (NPAT) declined by 14.4% 

chapter in our long association.

from $15.3 million in FY2007 to $13.1 

Overall, I believe you can be particularly 

encouraged by the continuing strength 
in our core products, Microcat® and 
Partfi nder®, which grew by 6% – a 

million in FY 2008.

Rest assured your Board and 

Management is not content with this 

result. Performance is at the centre 

growth which, when taken together 

of our thinking, and whilst we are 

with Superservice Menus, saw the 

pleased by the continuing growth in 

Company’s total subscription numbers 

our subscriptions, and by the rising 

exceed 60,000 for the fi rst time in 

demand for Superservice Menus, we 

our history. 

In view of your Board’s confi dence 

in the underlying strength of our 

Company, and in line with our current 

payout policy, I am pleased to report 

a fully franked dividend of 3.2 cents 

for the year. And in order to more 

effectively manage our capital, in April 

this year the Company announced its 

intention to commence an on-market 

share buy back. This began on April 15 

have also moved to trim our operating 

costs and to invest in new technology 

as a powerful accelerator for our next 

generation of innovative ideas.

… the need for our solutions in the 

dealership and aftermarket has 

never been greater.

“

“

Chairman’s Letter

“

We recognise that to maintain

 and extend our position we must 

continually invest in our personnel 

and in new technology.

“

As you may have read, Peter Adams 

In essence, the need for our solutions 

in the dealership and aftermarket has 

never been greater.

I mentioned our requirement for 

innovation underpinned by technology. 

At our core, Infomedia is a company 

that turns data into information. We 

recognise that to maintain and extend 

our position we must continually 

invest in our personnel and in new 

technology. In FY2008 we recruited a 

number of highly experienced technical 

personnel, including Dr Michael 

Bodner, who commenced as Chief 

Information Offi  cer in May 2008. 

“

Infomedia stands as a proven partner 

who delivers world class productivity 

solutions to automakers and their 

dealers, priced to add value rather 

than cost.

“

I imagine that you would be aware 

of the current volatile state of the 

automotive industry. However diffi  cult 

the times may be, I believe that for 

Infomedia, the current environment 

represents many opportunities. 

Infomedia stands as a proven partner 

Michael is responsible for guiding the 

resigned from the position of the Chief 

who delivers world class productivity 

Solution Development and Information 

Financial Offi  cer in March this year. Mr 

solutions to automakers and their 

Technology teams.

The Company has also commenced a 

rapid development program to provide 

a path for our customers to move from 

disc based solutions to entirely web 

based solutions. This evolution will 

deliver lower supply chain costs and 

faster data and application development 

turnaround time for our customers. 

The fi rst of these new web based 

solutions was released in September 

2008 and releases will continue during 

the next 12 months.

dealers, priced to add value rather 

than cost. The continuing growth 

of our subscriptions in the face of 

currency headwinds and a challenging 

retail environment shows that our 

expertise is highly regarded by our 

customers. New car sales may have 

declined this year, but the longer people 

hold on to their current cars, the more 

they will need Parts and Service.  

Through our Auto PartsBridge™ 

system, originally developed for 

Toyota in the USA, and our Microcat® 

MARKET™ solution, Infomedia can 

help to ensure that this demand is met 

by genuine parts sales rather than 

aftermarket parts. The Company also 

provides tools for the after sales area 

to help dealers either fi nd parts with 

our EPCs (Microcat, Microcat® LIVE™ 

and Microcat MARKET) or sell service 

schedules, repair operations and 

accessory fi tments with our service 

menu pricing tool (Superservice Menus).

Adams commenced with the Company 

in 2001 and contributed signifi cantly 

to the growth of the Company during 

his tenure. I would like to take this 

opportunity to sincerely thank Peter 

for his contribution to the Company 

and wish him the very best for the 

future. Mr Jonathan Pollard, who was 

the Company’s Finance Manager, was 

subsequently appointed to the position

of Acting Chief Financial Offi  cer effective 

31 March 2008.

Finally, I would like to take this oppor-

tunity to thank you for your continued 

support of Infomedia and convey to 

you my confi dence in the continuing 

growth of your Company. I hope that 

you enjoy this Annual Report and 

would welcome the opportunity to 

meet you at the Company’s Annual

General Meeting if you are able to attend.

Richard David Graham

Chairman of the Board

infomedia.com.au    4 

A Celebration of Innovation

You will notice that this year’s Annual 

Report has a theme – this being a 

“celebration of innovation”. This is a 

refl ection of the challenges that the 

Company must continually face in a 

changing technological world and 

our continual evolution to meet 

and overcome them.

We have chosen to celebrate eight 

inventions that fundamentally 

changed the world as we know it. 

Some are well known and some not 

so well known, but they have changed 

the lives of all mankind and helped 

to forge the new paths we travel 

down today.

We hope that they will be an 

inspiration for us to be inventive, 

innovative and, to always seek to fi nd 

the answer in the unorthodox and 

the unconventional.

“

By using the Company’s technology 

and expertise, Infomedia has also 

introduced EPCs to other parts 

and service industries, such 

as the whitegoods industry.

“

Infomedia produces other comple-

mentary parts and service related 

data products. Superservice MenusTM 

is a system that enables the service 

department to produce quick and 

accurate service quotations for its 

customers. By using the Company’s 

technology and expertise, Infomedia 

has also introduced EPCs to other 

parts and service industries, such 

as the whitegoods industry.

Infomedia has been developing its 

products since 1991. The expertise 

and experience gained over the years 

position the Company to continue to 

produce reliable products well into 

the future.

Company Profi le

Infomedia Ltd is a leading supplier 

of information solutions to the 

parts and service sector of the 

global automotive industry.

Subscribed to by over 60,000 users 

from franchised and independent 

auto dealers and auto repairers, the 

Company’s products are used every 

day in more than 160 countries and 

are provided in 28 languages.  

Infomedia’s Electronic Parts 

Catalogues (EPCs) allow dealers 

to quickly and precisely identify 

replacement parts manufactured 

by the world’s leading automotive 

companies.  As the auto manufacturers’ 

data is constantly changing, a 

recurring monthly subscription for 

Infomedia’s products ensures that 

customers receive and access the 

most current parts information on 

CD, DVD or via the Internet.

“

...the Company’s products are used 

every day in more than 160 countries 

and are provided in 28 languages. 

“

5   infomedia.com.au

Innovations

1. Antikythera Mechanism (c. 150 B.C.)

The Antikythera Mechanism was discovered by a Greek 

sponge diver, Elias Stadiatis, in the wreck of an ancient ship 

off   the coast of Greece’s Antikythera Island in April 1900.

Its function was speculated over for many years, not helped 

by its advanced state of corrosion. Theories formed that it 

was an astrolabe, an orrery (mechanical device that shows 

the relative positions and motions of the planets and 

moons in the solar system), or an astronomical clock.

Only a few years ago, using advanced digital radiography, 

additional cogs and gears were revealed, buried underneath 

layers of corrosion.

The Antikythera Mechanism has a system of up to 70 gears, 

each with teeth of equilateral triangles – a clockwork of 

such complexity and miniaturisation, nothing of its kind was 

seen again until well into the 18th century.

It was designed to calculate astronomical positions in the 

solar system. The orbits of the moon, the fi ve then known 

planets, and the position of the sun are plotted on dials, 

possibly for astrological purposes or for setting and 

adjusting the calendars of the ancient world.

infomedia.com.au    6

A reconstruction of the Antikythera Mechanism

CEO’s Report

“

Early in 2008 our software subscription 

numbers surpassed 60,000 for the 

fi rst time ever – an improvement 

of more than 8% over the previous 

corresponding period.

“

The past year has been a busy and 

positive one for Infomedia Ltd. As 

Chief Executive Offi  cer, I am proud of 

what we have accomplished, and the 

direction in which we are heading. 

Our teams around the world have 

been focused on the task at hand and 

worked together in a coordinated 

effort to deliver as promised to 

  our customers. 

Early in 2008 our software subscription 

numbers surpassed 60,000 for the 

fi rst time ever – an improvement 

of more than 8% over the previous 

corresponding period. I am confi dent 

that over the coming year we will 

continue to see more subscription

increases as we expand our current 

solutions to new markets, and strengthen 

our share in existing markets.

Superservice Menus 

Maintains Solid Growth

As in prior years, the success of 

Superservice Menus™ continues, 

and this year subscriptions reached a 

record high of 3,946, representing an 

increase of 51% on last year’s fi gures. 

A number of launches to new markets 

occurred throughout Asia Pacifi c and 

Europe in the past year. In Europe, 

Superservice Menus was launched 

to Daihatsu Norway, Hyundai Turkey, 

Kia France, Kia Norway and Subaru 

Norway. Within Asia Pacifi c, the product 

was introduced to Holden New Zealand, 

Kia Australia, Lexus Australia and 

Suzuki Australia – with Lexus and Suzuki 

representing two new automakers 

to adopt Superservice Menus. Both 

Lexus and Suzuki recognised the 

tremendous value of the solution and 

signed an exclusive agreement with 

of Toyota dealers in Australia now 

using Superservice Menus. As at 

the end of the 2008 fi nancial year, 

Infomedia provides Superservice 

Menus to 11 automotive manufacturers 

in over 20 countries.

The growing success of Superservice 

Menus can be attributed not only 

to the effi  ciency and productivity 

advantages it provides to service 

personnel using the system, but, 

just as importantly, to the benefi ts 

it provides to their customers. 

Superservice Menus gives a clear 

and accurate breakdown of the work 

required for a customer’s vehicle, and 

an explanation of the charges. For 

the customer, their satisfaction with 

the service increases, as well as their 

confi dence in the dealer being fair and 

honest. This transparency strengthens 

customer loyalty, and leads to repeat 

business for the service department 

of the dealership.

Infomedia, which means that all Lexus 

Solution Expansion 

and Suzuki dealers in Australia now 

Continues Around the Globe

subscribe to Superservice Menus. 

Infomedia’s solutions continue to 

Existing customer subscriptions also 

experience growth around the world. 

continued to grow, with a total of 65% 

The Company’s Microcat® Electronic 

“

The growing success of Superservice 

Menus can be attributed... to 

the effi  ciency and productivity 

advantages it provides to service 

Parts Catalogue continues its expansion, 

with subscriptions rising in Latin 

America and China. In particular, 

China’s light truck company, Jiangling 

Motors Co., Ltd (JMC), has increased 

its Microcat subscriptions over the 

past year.

“

personnel using the system...

7   infomedia.com.au

Innovations

2. Gutenberg Press (1440)

The earliest dated book was printed in China in 868AD, 

and in 1041 movable clay type was fi rst invented. Johan-

nes Gutenberg, a goldsmith and businessman from the 

German city of Mainz, changed the world of printing when 

he borrowed money to invent the Gutenberg Press. 

After an idea that came to him in a “ray of light”, Gutenberg 

embarked on a secret project with fi nancial backing from 

a wealthy gem cutter and the owner of a paper mill. 

Gutenberg’s secret was the use of a screw based press in 

combination with movable metal type. His background in 

metalwork was invaluable in this development, which 

used an alloy of lead, tin and antimony, poured into 

moulds to create letters. A new ink which was oil 

based was invented to replace previously existing 

water based inks. This new technique could transfer 

printed characters to vellum (calf skin parchment) or 

paper. The Gutenberg Press was completed by 1440, and it 

brought down the price of printed materials to make them 

available to the masses – not just the elite.

The impact of Gutenberg’s invention on Europe was 

enormous and was a major contributor to the blooming 

of scientifi c discovery, the humanistic revolution of the 

Renaissance and even the Reformation. Almanacs, travel 

books, chivalric romances, poetry, music, scientifi c 

discoveries and more were widely distributed. The use of 

Latin as the language of scholars declined as literacy rose 

and texts were published in native languages. Human 

knowledge and creativity were never before so accessible. 

Time Life magazine named Gutenberg’s Press as the most 

important invention of the second millennium. 

infomedia.com.au   8 

CEO’s Report

Microcat® LIVE™ has extended its 

Three separate agreements were 

reach with launches to Toyota dealers 

signed between Toyota and Infomedia 

in New Zealand, as well as nine new 

throughout the year. The fi rst was a 

markets in Europe, including: Belgium, 

renewal of our contract with Toyota 

France, Germany, Netherlands, 

USA to supply Infomedia’s EPC products 

Spain and Switzerland. 

Microcat® MARKET™, our Internet 

parts ordering system that links 

independent repairers to their genuine 

parts dealer, has experienced notable 

growth in both Europe and the Asia 

Pacifi c region. Dealer licences in Asia 

Pacifi c increased by 134% and trade 

customer licences increased by 189%. 

It is anticipated that the product’s 

growth will continue, with further 

launches scheduled in the 

coming months.

New Contracts Signed and 

Existing Contracts Extended

for a further three years, to 2011. 

The second was an agreement for 

Infomedia to also supply Toyota USA 

with a web-based product that allows 

the processing of parts orders between 

an Independent Repair Facility (IRF) 

and a Toyota dealership. Finally, 

Toyota Material Handling USA (TMHU) 

signed a fi ve year exclusive agreement 

with Infomedia to supply a web-based 

EPC for its forklift division. The system 

will be utilised by repairers of Toyota 

industrial equipment to search for 

parts and electronically submit 

orders to their parts dealer. All TMHU 

dealers (over 180 in the USA), will be 

The past year has seen the renewal of 

provided with the EPC solution. The 

a number of Infomedia’s current 

signing of these contracts extends and 

contracts, and the signing of several 

strengthens the Company’s relationship, 

new contracts. The fi rst renewal was 

as more of Infomedia’s products are 

the Company’s agreement to supply 

adopted by Toyota.

Ford Mexico with Microcat for a 

further fi ve years, until 2012. As 

part of the contract, Microcat LIVE 

and Microcat MARKET will also be 

delivered to Ford Mexico, building on 

the strong partnership we’ve developed 

since 1999. Toyota Mexico also 

renewed their contract with Infomedia 

to supply Microcat for a further fi ve 

years. This continues the exclusive 

renewal, the Company is authorised 

to use Ford’s parts data for producing 

the Microcat EPC through to 2010. 

Hyundai USA also renewed its 

agreement for Infomedia to produce 

Microcat for Hyundai for another three 

distribution agreement that Infomedia 

years. In Canada, Infomedia now has 

and Toyota Mexico have shared 

an exclusive agreement with Kia and 

since 2002. 

all dealers use the Microcat EPC. 

“

The past year has seen the renewal 

of a number of Infomedia’s current 

contracts, and the signing of several 

new contracts.

“

9   infomedia.com.au

“

The increasing awareness and 

traction of Superservice Menus is 

evident in the two new contracts 

that the Company signed 

during the fi nancial year.

“

The increasing awareness and traction 

of Superservice Menus is evident 

in the two new contracts that the 

Company signed during the fi nancial 

year. General Motors (GM) became 

the fi rst North American customer for 

Superservice Menus when they signed 

an agreement to supply the product to 

its North American dealers. As GM is 

contract represents sizeable growth 

opportunities for Superservice Menus.

The Company also signed a fi ve year 

agreement with Hyundai Motor 

Company, which is endorsing the use 

of Superservice Menus to Hyundai 

service departments worldwide. 

Hyundai has committed to recom-

mending the use, and promoting the 

merits, of Superservice Menus to its 

distributors and dealers. Hyundai 

also invited Infomedia to participate 

alongside its management team 

at Hyundai service conferences 

around the world. 

Another important contract the 

the the world’s largest automaker, and 

Company renewed was with Ford 

has over 7,000 dealerships in North 

Asia Pacifi c. Under the terms of the 

America alone, the non-exclusive 

Innovations

3. The John Bird Sextant (1759)

Until the sextant was created, ocean navigation had been 

inaccurate and very dangerous. The determination of latitude 

was in use from around 120AD, yet the calculation of 

longitude proved elusive, making sea travel dangerous 

and expensive. 

After four English warships were wrecked on the Scilly Isles 

in 1714 due to navigational error, the British parliament 

issued the Longitude Act, with a large cash prize for whoever 

could discover a useable method of determining longitude.

Two technologies solved this problem. One was the precise 

measure of time using accurate and transportable marine 

chronometers and the other was the sextant. 

The fi rst sextant was produced by the instrument maker 

John Bird in 1759. Using two double-refl ecting mirrors, 

the angular distance of the sun, a star, or other 

heavenly body, could be measured from the 

horizon. The angle and time measured could then 

be used to calculate a position line on a nautical chart.

The impact of the device was huge. It directly led to the 

great voyages of discovery by Captain James Cook and 

others, and helped the expansion of the British Empire.

The sextant was used exclusively until the First World

War and merchant vessels are still required to have 

one today, in the event of electronic failure. The skilled

use of a sextant is still considered to be the ultimate 

test of seamanship.

infomedia.com.au   10 

“

 Over the next year, we are focused 

on transitioning our Microcat and 

Microcat LIVE disc solutions to a 

web platform that will enable our 

customers to do their business 

more productively...

“

Financial Outlook

In the year ahead, the Company will 

see through to conclusion the previously 

communicated reduction in General 

Motors subscriptions. However, 

growth in other subscriptions, 

particularly Superservice Menus, is 

forecasted to give rise to net subscription 

The recent successful contract 

renewals in Europe, North America

and Asia Pacifi c, along with the positive 

reception of our new solutions, 

provide a solid platform for growth 

in subscription volumes. Further 

advances in EPC technology for both 

the franchised automotive dealer and 

the independent motor trade will 

create increased sales momentum 

and diversifi cation of the Company’s 

customers and product portfolio over 

the medium term.

The outlook for Superservice Menus 

remains strong, with continuing 

growth expected into 2009 and 

beyond. The Company continues to 

expand both domestically and interna-

tionally with new automakers and 

organic growth from current releases.

growth for the 2009 year. While the 

I look forward to leading the 

Company maintains an active foreign 

Infomedia team in the coming year. 

currency hedging program, the projected 

With our expertise, commitment, 

strength of the Australian dollar 

during the course of the 2009 year 

enthusiasm and adaptability, I am 

confi dent that we will continue to 

is likely to have a further dampening 

deliver solutions which our customers 

effect on reported profi t, despite the 

value and provide a return on 

anticipated net subscription growth.

your investment. 

Gary Martin

Chief Executive Offi  cer

CEO’s Report

The Year Ahead

Operational Outlook

Infomedia is committed to developing 

and delivering solutions that represent 

the best value for our customers. 

Our adaptation to evolving customer 

and market needs has always been 

approached with both eagerness and 

enthusiasm, as we recognise that to 

maintain our competitive advantage 

we need to always be ahead of 

the competition.

Re-evaluating and re-inventing our 

ways of doing business are essential 

factors to our continued success. In 

today’s climate, this involves a shift 

in technology. More specifi cally for 

us, it means moving our traditionally 

disc-based products to web-based 

products. Over the next year, we are 

focused on transitioning our Microcat 

and Microcat LIVE disc solutions to 

a web platform that will enable our 

customers to do their business more 

productively, whilst improving our 

own production processes and 

opportunities for increased revenue. 

With the launch of Superservice 

Menus to new markets in North 

America and existing markets in 

Europe and Asia Pacifi c in the coming 

year, it is anticipated that strong 

growth will be maintained around the 

world. The commercial launch of Auto 

PartsBridge and scheduled launches 

of Microcat MARKET further increase 

our global reach and opportunities 

for revenue.

11   infomedia.com.au

Innovations

4. Sholes & Glidden 
  Typewriter (1873)

The idea of a machine to replace the hand written word is 

not a new one. In 1714, an English engineer named Henry 

Mill patented an “artifi cial machine for the impressing or 

transcribing of letters” but lacked the patience to build the 

complex machine.

It took three American inventors, Christopher Latham 

Sholes, Carlos Glidden and Samual Soule, to bring such a 

machine to reality. The “Type-Writer” as they named it, was 

fi rst developed in 1867 with almost 30 prototypes following. 

The prototypes were horribly unreliable. If the operator 

typed at any reasonable speed, the machine jammed. 

Sholes (who later left the trio) got around the problem 

by inventing the “QWERTY” keyboard layout, still used 

well over a century later. The intention was to slow the 

operator down by separating common “digraphs” or two 

letter combinations forming one sound, such as “sh”. Even 

after reliability problems were later solved, the keyboard 

layout remained.

An entrepreneur named James Densmore sold the inventors’ 

design to gun and sewing machine manufacturer, Remington. 

Remington’s sewing machine engineers ironed out remaining 

reliability issues and even added a sewing machine style 

foot pedal to advance the paper. 

The fi rst machine was released for sale in 1873 and between 

1873 and 1878 only 5,000 units were sold. Additional 

models were released a few years later, when sales suddenly 

skyrocketed as the public saw what a productivity advantage 

the renamed “Typewriter” gave them. By the late 1880s, 

in a remarkably short period of time, typewriters were 

common around offi  ces in America and Europe.

 infomedia.com.au   12 

almost instantaneously. Removing 

the need to install a disc each month, 

as well as the previously mentioned 

benefi ts, are at the forefront of 

automaker and dealer requirements, 

and the Company is confi dent that 

the new solutions will deliver the 

desired functionality. 

“

As a part of a review of Infomedia’s 

technology, Dr. Michael Bodner was 

appointed to the position of Chief 

Information Offi  cer in May.

“

experience in a number of ventures. 

Prior to joining Infomedia, Dr. Bodner 

held positions with leading software 

companies including The Thomson 

Corporation and ProQuest Business 

Solutions. Among his various roles 

at ProQuest, he was responsible for 

transitioning existing applications 

from traditional technology to Service 

Oriented Architecture based platforms.

In his position at Infomedia, Dr Bodner is 

responsible for leading and developing 

the Solution Development and Information 

Technology teams to deliver on the 

Company’s technology vision. Upon 

his appointment as Chief Information 

Offi  cer, Dr Bodner said, “I am very 

excited to be joining Infomedia. I 

believe the Company has the technology 

prowess and executive leadership to 

Dr Michael Bodner

As a part of a review of Infomedia’s 

take full advantage of opportunities 

technology, Dr Michael Bodner was 

in the information service provider’s 

appointed to the position of Chief 

market space and I’m delighted to 

Information Offi  cer in May. Dr Bodner 

be a part of it.”

is a senior technology executive and 

widely respected IT professional who 

brings with him nearly 30 years of 

Year in Review

Technology

Infomedia continues to evaluate 

new technologies and competitive 

forces as part of its normal 

business practice. 

In order for Infomedia to continue to 

lead in the always evolving, information 

driven industry, the technology 

platform currently in use must be 

transformed. This involves providing 

a path for our customers from 

disc-based solutions to web-based 

solutions. By doing so, not only does 

the Company improve effi  ciencies and 

lower supply chain costs, but the ability 

to provide higher quality solutions 

to customers is increased. The web 

platform provides the fl exibility for 

data to be more frequently updated 

than the current format permits, and 

modifi cations and improvements to 

the program itself can be released 

“

In order for Infomedia to continue 

to lead in the always evolving, 

information-driven industry, the 

technology platform currently 

in use must be transformed.

13   infomedia.com.au

“

Innovations

5. Fender Telecaster (1950)

The Fender Telecaster was the fi rst mass produced solid 

body electric guitar. Pure and simple in design, the 

Telecaster revolutionised popular music. Updated

 models are still sold by Fender today.

The Telecaster or “Tele” was developed by Leo Fender 

during the 1940s and was based on other solid body

electric guitars which had little impact on the market. 

A crude prototype was built as early as 1943 and proved

to be popular with country musicians, which spurred 

on further development.

A second hand built prototype appeared in 1949, with 

almost all the features of a production Telecaster. It had 

a simple and modular design suited for mass production 

and ease of repair, accessible electronics, two single coil 

pickups (transducers that capture mechanical vibrations) 

controlled by a selector switch placed with a volume 

control and a tone control.

When released for production in 1950, the Telecaster 

proved to be very popular. The bright, cutting, steel guitar 

like tone of a Tele found a natural home in country music, 

but it was also a direct infl uence on a new musical genre 

that emerged in the early 1950s – rock and roll. Buddy Holly 

played on a Telecaster and his backing band, The Crickets, 

defi ned the format for the modern rock band, still with 

us more than half a century later. The “bite” of a Tele also 

proved well suited for outdoor playing but, perhaps more 

importantly, was also well suited to a TV or radio studio. 

The Telecaster is a true instrument of the modern age.

Artists who have used a Telecaster include Keith Richards, 

Jimmy Page, Eric Clapton, George Harrison, Muddy Waters, 

Jeff   Beck, Joe Strummer and Bruce Springsteen.

infomedia.com.au   14 

Year in Review
Year in Review

New Traineeship Program

In July 2008, Infomedia implemented 

a traineeship program whereby two 

trainee computer programmers were 

appointed. In line with the Company’s 

ongoing goal of providing career 

By administering the traineeship, 

Infomedia is eligible for Commonwealth 

and State Government incentives. 

However, the real benefi ts are that the 

Company is offsetting skills shortages, 

improving mentoring opportunities 

for team leaders, inspiring Company 

and competencies in the areas of 

values, and preparing a workforce for 

business planning, business 

the future. 

development, team leadership and 

staff   management. Through 

evaluation and analysis of current

practices and the development of new 

opportunities for employees, one of 

Career Development Initiatives 

the appointees was an existing employee, 

for Infomedia Employees

whilst the other trainee was appointed 

from a group of external candidates. 

Infomedia Ltd is committed to ensuring 

practices, participants learnt modern 

that staff   reach their full potential. 

management and leadership 

The traineeship has been designed to 

As part of this ongoing commitment, 

principles and procedures.

educate programmers in methodologies 

Infomedia embarked upon a career 

and systems that are applicable to 

development initiative with the 

Infomedia. The initiative is supported 

specifi c objective of providing a range 

and supplemented with studies at the 

of business skills to staff   to enable 

Technical College of Advanced and 

them to becomemore profi cient and 

Further Education (TAFE). 

productive in their roles now and into 

The trainees will gain skills in languages 

used in commercial systems and upon 

In February 2007, our team leaders 

completion of their training they will 

and managers commenced the 

their future with Infomedia.

In addition to the Frontline Management 

course, Infomedia’s Customer Service 

Specialists undertook Certifi cate 

IV in Customer Contact. The course 

gave an insight into team leadership 

and analysed and evaluated current 

practices. The Customer Service 

team focused on improving customer 

service techniques by developing 

work as entry level programmers. 

Certifi cate IV in Business with a Frontline 

communication methods, encouraging 

Although they require mentoring, it is 

Management focus. The 12 month 

a greater awareness of customer 

expected that the trainees work and 

contribute as a part of the team.

course provided a trainer facilitated 

needs and enhancing customer 

program of learning to develop skills 

relationships to increase revenue. 

“

Infomedia Ltd is committed 

to ensuring that staff   reach 

their full potential. 

“

Infomedia’s traineeship program participants – Jessica Canabou and Tarek Bisher

15   infomedia.com.au

Innovations

6. RCA Victor CT-100 

Colour Television (1954)

The RCA Victor CT-100 was the fi rst all-electronic colour 

television shipped in volume to consumers’ living rooms. 

It effectively changed forever how people spent their 

non-working hours.

The CT-100 was known as “Merrill” to RCA Victor and was 

manufactured at a plant in Bloomington, Indiana. It had a 

tiny 15” colour picture tube when measured diagonally, had 

36 vacuum tubes and colour phosphors that fully utilised 

the colour capability of the NTSC signal, still the standard 

in the United States. Thus, the CT-100 actually had a wider 

colour range than many modern sets, with richly saturated 

reds and greens. However, overall picture quality did look 

strangely artifi cial. In marked contrast to modern television, 

the CT-100 had a red mahogany cabinet.

Over 4,000 were produced and were sold for $995 – roughly 

equivalent to the cost of a car for the 1950s consumer. The 

price soon fell to $495, but after spending $100 million in 

technology and research during the nine years it took to get 

the CT-100 to production, RCA Victor didn’t see a profi table 

return on its investment until 1962.

On the CT-100’s introduction in 1954, special TV shows 

were produced to show off   its capabilities, including NBC’s 

“Living Colour” Saturday evening program. 

Only about 30 CT-100s are still functional and today they 

are a collectors’ item.

infomedia.com.au   16 

 
Year in Review

“

For us as an international organisation 

it is imperative that product solutions 

and communications are delivered 

in all of the languages spoken by 

the Company’s customers...

“

In order to face the challenges of 

operating in a multilingual market, 

Infomedia has revised its translation 

Both courses were structured towards 

and localisation processes, and 

providing tailored education for 

implemented an advanced and 

Infomedia employees to enable 

innovative solution for localisation 

them to reach their full potential. 

and terminology management. 

Participation in these programs 

enabled Infomedia to take advantage 

of the Federal Government incentives, 

which equated to $39,500.

text and terms to ensure their

applicability to the market in which 

they will be delivered. It differs from 

Feedback received from participants 

translation in that it doesn’t look just 

from both courses has been positive, 

at the words, but considers specifi c 

with many experiencing greater 

market idiosyncrasies.

confi dence as a result of their newly 

acquired skill sets.

Supported by localisation specialists, 

•  a localisation knowledge base 

that enables translators to more

  effectively retrieve relevant

information and access various 

terminology resources such 

  as an online glossary of 

Infomedia’s customers;

•  an online localisation forum that

  gives translators a tool for collabo- 

  and gives Infomedia employees the  

  ability to submit a terminology  

request for explanation direct to 

the terminology specialist; and

•  a feedback management tool 

that enables Infomedia to collect   

terminology requests from customers

Localisation is the process of reviewing 

rating on problem solving activities  

new translation service providers, 

  and employees for correction 

Innovation via Enhanced Localisation 

and the most advanced tools for 

  and improvement.

and Translation Methods

translation management, Infomedia 

For us as an international organisation 

has developed:

it is imperative that product solutions 

•  a new process for terminology,

and communications are delivered in 

localisation and quality assessment

all languages spoken by the Company’s 

  management that mirrors the

customers, and new languages 

   highest and most recognised  

are offered to customers in 

international standards of the 

emerging markets.

localisation industry;

These new tools have had an immediate 

positive impact on the overall quality 

of the translations and a reduction in 

translation costs. Internally, the use 

of technical writing, terminology style 

guides and controlled vocabulary 

will continue to improve the quality 

of the Company’s intra-departmental 

communication – leading to more 

effective communication both 

internally and externally. 

“

These new tools have had an 

immediate positive impact on the 

overall quality of the translations 

and a reduction in translation costs. 

“

17   infomedia.com.au

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Innovations

7. Regency Transistor 

Radio (1954)

The transistor was a piece of high technology created in the 

Bell Telephone Laboratories in 1947. William Shockley, John 

Bardeen and Walter Brattain discovered a semi conducting 

device capable of amplifying an electrical signal as well as 

rectifying it, thus making the vacuum tube obsolete. For 

this, the trio were awarded the Nobel Prize in Physics.

For something as groundbreaking as the transistor, it’s 

somewhat surprising that a commercial application for 

the invention was, at fi rst, diffi  cult to fi nd.

Texas Instruments recognised its potential and designed 

and built a prototype radio using the transistor – immediately 

making the device far smaller, less power hungry, much 

less complicated and more reliable. No major existing radio 

manufacturers were interested but a small company in 

Indianapolis, I.D.E.A, was very interested.

In 1954 the Regency TR-1 transistor radio was sold for 

$49.95, about the equivalent price of a high end iPod today. 

The TR-1 was encased in futuristic plastic packaging, was

small enough to hold in your hand or pocket and came in 

four colours at fi rst, with seven more added afterwards. 

Advertising used the slogan, “See it! Hear it! Get it!” The 

youth market immediately seized upon it as rock and roll 

spread throughout the globe.

Music was for the fi rst time mobile and accessible almost 

everywhere. The technology within went on to morph into the 

integrated circuit, the silicon chip and the modern computer.

infomedia.com.au   18 

 
Strong Management

Your Company is led by a management team with extensive experience across multiple disciplines and industries. 

The group works together closely to ensure a consistent direction across all areas of the business and in all 

locations in which the Company operates. 

Gary Martin – Chief Executive Offi  cer

Gary Martin joined the Company as International Sales Manager in 1998 and was 

appointed as General Manager, Electronic Catalogues Division in August 2001. 

Mr Martin was appointed to the Board in 2004 and then to the position of CEO 

in January 2005. Mr Martin has extensive experience in the automotive industry, 

having held various positions at automotive dealerships since 1987. In his time 

with Ford dealers, Mr Martin was awarded the Ford Management Excellence 

Award in four consecutive years and participated on various automaker 

committees. In his role as CEO, Gary provides strategic direction and 

oversees all areas of the business. 

Michael Bodner – Chief Information Offi  cer

Dr Michael Bodner has almost 30 years experience across a number of high 

technology ventures. He has a Ph.D. in Theoretical Physics and was one of 

the scientists assigned to the Apollo project at NASA. He has been a college 

professor, and then entered the emerging microcomputer industry, in which he 

worked in a number of small and very large companies. After several years at 

The Thomson Corporation, where he served as the Chief Technology Offi  cer 

and Senior Director of Technology Strategy in Zurich, he returned to the US and 

entered the automotive information provider industry. Immediately prior to 

joining Infomedia in May 2008 as Chief Information Offi  cer, Dr Bodner worked 

for a leading software company in the position of Vice President, Emerging 

Technologies and Global Architecture and Standards, and then as Acting Chief 

Information Offi  cer responsible for development of the company’s corporate 

technology strategy. At Infomedia, Michael is responsible for the Company’s 

global technology direction and delivery and leads the Development and 

Systems teams in creating new customer solutions.

Nick Georges – General Counsel & Company Secretary

Nick Georges is a qualifi ed lawyer, admitted to the Supreme Courts of Victoria in 

1991 and New South Wales in 1999. Prior to joining Infomedia and becoming its 

General Counsel & Company Secretary in 1999, Mr Georges worked in general 

practice as a solicitor in Victoria before moving to Sydney in 1995 to take up 

an executive role with an international software development company where 

he obtained extensive experience in the information technology industry. Nick 

provides legal advice and support to all areas of the business globally, as well 

as performing his duties as Company Secretary.

19   infomedia.com.au

Innovations

8. Apple I Personal Computer (1976)

From the late 1950s, a computer was generally considered 

to be a mainframe computer sold by huge companies 

housed in dedicated rooms and run by highly trained staff  .

However, things changed in the 1970s. The introduction of 

the microprocessor, a stand alone chip with miniaturised 

components, led a small number of hobbyists 

to dream of owning their own computer. 

These fi rst personal computers were primitive 

by today’s standard. They had no keyboard, 

display or even storage, and input was performed 

by toggling switches, giving an output of blinking lights.

Steve Wozniak (or “Woz”) was an engineer working for the 

pocket calculator division of Hewlett Packard. In his spare 

time he built digital telephone hacking devices to make 

free long distance phone calls with a teenage delinquent 

named Steve Jobs. Jobs dragged a reluctant Wozniak to the 

newly formed “Homebrew Computer Club”, which also had 

a young Bill Gates as a member.

As Woz was too broke to buy a computer, he decided to 

build his own, and designed the Apple I – a computer of 

brilliant simplicity and advanced technology. All the elements 

we see in computers today were present. Keyboard input, 

graphical output (to any TV) and storage in RAM or tape. 

Jobs convinced Wozniak that there was a market for them

(the idea of selling it never occurred to Woz) and the two 

built circuit boards in Jobs’ parents’ garage in California.

Wozniak improved his design with the Apple II in 1977, 

which added high resolution graphics (Woz “threw it in” as 

he “didn’t know if people would use it”), colour and sound 

on a circuit board of staggering simplicity and expandability. 

Woz challenged himself to design with as few chips as 

possible, always fi nding ways to do more with less while 

also writing most of the software for the new machine, 

which Jobs encased in a marketable plastic box.

Huge sales of the Apple II heralded the personal computer 

revolution. The Apple II sold with little change until 

October 1993 – around the same time another innovation, 

the Internet, was born.

infomedia.com.au   20 

Strong Management

Mark Kujacznski – Vice President of Product Strategy 

Mark Kujacznski joined Infomedia as Vice President of Infomedia North 

America in August, 2005. Mr Kujacznski has extensive experience in both the 

automotive retail and IT industries. Prior to joining Infomedia, he was Senior 

Project Manager at RouteOne, a joint venture between GMAC, Chrysler Financial, 

Ford Credit and Toyota Financial, where he had responsibility for all business 

and technical aspects of Dealer Management System (DMS) integration with 

RouteOne. Before joining RouteOne, Mr Kujacznski spent 18 years at EDS in 

numerous leadership positions and was the Product Development Manager for 

the EDS Parts Imager electronic parts catalogue and Program Manager of EDS’ 

DealerSphere initiative. As Vice President of Product Strategy at Infomedia, Mark 

is responsible for projects aimed at increasing the usage of Infomedia solutions 

through strategic alliances and deeper product integration with third parties.

Alison MacFarlane – Director of Marketing 

Alison MacFarlane has over 15 years of experience in the fi eld of marketing, 

having worked for a large Australian bank for fi ve years, and immediately prior 

to joining Infomedia in October 2003, she worked for an accounting software 

fi rm for six years. She has extensive experience in software development and 

marketing and is passionate about technology. Her particular areas of expertise 

are product marketing, communications and brand management. Ms MacFarlane 

has a Bachelor degree (Information Science – Computing) and a Masters of 

Business (Marketing). Ms MacFarlane is responsible for representing the voice of 

the customer and providing leadership on customer communication and support. 

Andrew Pattinson – Managing Director, IFM Europe Ltd 

Andrew Pattinson joined Infomedia in April 1988 from the fi nance industry to 

work on the administration team and has since held roles in many areas of the 

Company. Mr Pattinson ran the Production and Operations area of the business 

for six years prior to taking on the Melbourne based role of General Manager, 

Data Management Division, following its acquisition in April 2000. In January 

2002, he returned to Sydney and accepted the role of Vice-CEO. Mr Pattinson 

relocated to the UK in April 2004 to open Infomedia’s European operations. 

He served on the Infomedia Board from October 2001 until October 2004. 

21   infomedia.com.au

Strong Management

Jonathan Pollard – Acting Chief Financial Offi  cer

Jonathan Pollard is a Chartered Accountant and has over 10 years fi nancial experience 

in both European and Australian companies. Mr Pollard joined Infomedia in July 

2004 in the position of Finance Manager and in April 2008 was promoted to the 

position of Acting Chief Financial Offi  cer. Mr Pollard has extensive experience in 

fi nancial reporting, management accounting, auditing and fi nancial modelling. 

Before joining Infomedia, Mr Pollard held a position as a senior accountant with 

an Australian software company and prior to that a senior audit position with 

KPMG UK. Mr Pollard has a Bachelor of Science degree (Mathematics). Jonathan 

is responsible for managing all fi nance and accounting functions of the Company. 

Michael Roach – Director of Sales/General Manager Asia Pacifi  c

Michael Roach joined Infomedia in 1979 in the fi eld of electronic publishing. 

Mr Roach has held various positions during his tenure, including Production 

Manager and Operations Manager, before he was promoted to General Manager 

of the Data Management Division in 2002. He was then promoted to the position 

of General Manager of the Catalogues & Publishing Division in January 2005. Mr 

Roach has extensive experience in the automotive cataloguing industry. He is 

responsible for key relationships throughout the world with automakers, as well 

as leading the global New Business, Client Management and Sales teams. 

Dan Stedem – Vice President Operations, IFM North America

Dan Stedem has worked alongside Infomedia since 1999, when Microcat was fi rst 

launched to Ford dealers in North America. Since that time, he has been a subject 

matter expert, trainer, salesman and all-around customer support person. In 

February 2008, Mr Stedem was appointed Vice President Operations for IFM 

North America. Prior to his work with Infomedia, Mr Stedem spent over 25 years 

working in various positions at Ford dealerships, leaving as General Manager 

with 15 President’s Awards for Customer Satisfaction during his tenure. Mr Stedem 

has a Bachelor of Science degree from State University of New York. Dan is 

responsible for customer satisfaction and operational excellence in North America. 

Linda Williams – Human Resources Manager

Linda Williams joined Infomedia in November 2000. Mrs Williams has extensive 

human resources management experience in the corporate sector including banking

and fi nance, hospitality, the Sydney Organising Committee for the Olympic Games 

and information technology. Mrs Williams has been responsible for the integration 

of staff   from the three acquisitions Infomedia has undertaken, the establishment 

of overseas offi  ces, recruitment of new hires and advice to senior management 

on a range of human resource issues. Mrs Williams has obtained a Registered 

Nursing Certifi cate, a Human Resources Certifi cate and an Advanced Diploma 

of Human Resources. Her expertise in human resources spans over 15 years and 

includes recruitment, equal employment opportunity and employee relations. 

infomedia.com.au   22 

Directors’ Report

Your Directors submit their Report for the year ended 30 June 2008.

DIRECTORS 

Directors were in offi  ce from the beginning of the fi nancial year until the date of this report, unless otherwise stated.

The names and details of the Directors of the Company in offi  ce during the fi nancial year and until the date of this Report are:

Richard Graham – Chairman of the Board

Richard Graham has held senior management positions in the American and 

Australian computer industry since 1977. Mr Graham co-founded the Company 

in 1988 and was its Chairman and Managing Director/CEO from its establishment 

until he retired as CEO in December 2004. Since then, Mr Graham has continued 

as Chairman. Mr Graham was last re-elected to the Board in October 2005.

Gary Martin – Chief Executive Offi  cer

Gary Martin was promoted to the position of Chief Executive Offi  cer on 1 January 

2005. Mr Martin has extensive experience in the automotive industry. He has 

been with Infomedia since 1998, when he joined the Company as International 

Sales Manager. Mr Martin was appointed as General Manager, Electronic 

Catalogues Division in August 2001. Prior to joining Infomedia, he had 12 years 

of experience at automotive dealerships, including as General Manager, Parts 

& Accessories of a large multi-franchised dealership group. In his time with Ford 

dealers, Mr Martin was awarded the Ford Management Excellence Award in 

four consecutive years and participated on various automaker committees. 

Mr Martin was elected to the Board in October 2004.

Frances Hernon – Non-executive Director

Frances Hernon was appointed to the Infomedia Board of Directors on 19 June 

2000. Ms Hernon has extensive experience in media, publishing, marketing and 

technology. She has held senior editorial positions at News Ltd and Murdoch 

Magazines and was General Manager, Harrison Communications; Director of 

Publicity at Channel Ten; Managing Editor of the NRMA’s member magazine The 

Open Road; Manager, Business Communications for NRMA; and Senior Account 

Manager, Group IT&T for the Insurance Australia Group (IAG). Ms Hernon is 

currently the Corporate Aff  airs Manager for Nestlé Australia Ltd.  

Ms Hernon serves on the Audit, Risk & Governance Committee and also serves 

the Board as Lead Non-executive Director for all matters that formerly fell within 

the ambit of the Remuneration & Nomination Committee. Ms Hernon was last 

re-elected to the Board in October 2006.

23   infomedia.com.au

Directors’ Report

Myer Herszberg – Non-executive Director

Myer Herszberg has been a Director of Infomedia since 1992. Mr Herszberg 

has extensive consumer electronics experience and was active in bringing 

home computers to Australia in the early 1980s, as well as many other leading 

edge electronic products. He also has extensive experience in the commercial 

property market, and is active in a number of community service organisations. 

Mr Herszberg  currently serves on the Company’s Audit, Risk & Governance 

Committee. Mr Herszberg was last re-elected to the Board in October 2005.

Andrew Moffat – Non-executive Director 

(Chairman of Audit, Risk & Governance Committee)

Andrew Moff  at was appointed to the Infomedia Board of Directors on 31 March 

2005. Mr Moff  at has more than 20 years of corporate and investment banking 

experience and is the sole principal of Cowoso Capital Pty Ltd, a company 

providing strategic corporate advisory services. Mr Moff  at was a Director of 

Equity Capital Markets & Advisory for BNP Paribas Equities (Australia) Limited 

with principal responsibility for mergers and acquisition advisory services and 

a range of equity capital raising mandates including placements, initial public 

off  erings, rights issues and dividend reinvestment plan underwritings. His 

corporate banking experience was gained whilst working in the United 

Kingdom and Australia with Standard Chartered Bank Group, National 

Westminster Banking Group and BNP Paribas. Mr Moff  at was elected 

to the Board in October 2005.

COMPANY SECRETARY

Nick Georges – General Counsel & Company Secretary

Nick Georges is a qualifi ed lawyer, admitted to the Supreme Courts of Victoria in 

1991 and New South Wales in 1999. Prior to joining Infomedia and becoming its 

General Counsel & Company Secretary in 1999, Mr Georges worked in general 

practice as a solicitor in Victoria before moving to Sydney to take up an executive 

role with Altium Limited, where he obtained extensive experience in the 

information technology industry.

infomedia.com.au   24

Directors’ Report

Interests in the shares and options of the Company and related bodies corporate 

As at the date of this report, the interests of the Directors in the shares and options of the Company were:

Infomedia Ltd

Ordinary Shares fully paid

Options over Ordinary Shares

Wiser Equity Pty Limited

Yarragene Pty Limited

Wiser Centre Pty Limited

Richard Graham

Gary Martin

Frances Hernon

Andrew Moff  at

100,277,501

23,421,599

1,000,000

926,559

507,590

5,000

-

-

-

-

-

1,000,000

-

-

Richard Graham is the sole Director and benefi cial shareholder of Wiser Equity Pty Limited.  Richard Graham is a Director of 

Wiser Centre Pty Limited, trustee for the Wiser Centre Pty Ltd Superannuation Fund.  Myer Herszberg is a Director and major 

shareholder of Yarragene Pty Limited.

Directorships of other publicly listed entities 

During the past fi ve years, Andrew Moff  at has been the non-executive chairman of Pacifi c Star Network Limited. He is also a 

Non-executive Director of Cash Converters International Ltd and an Executive Director of Rubik Financial Limited.

PRINCIPAL ACTIVITIES 

Infomedia Ltd is a company limited by shares that is incorporated and domiciled in Australia.

The principal activities during the year of entities within the consolidated group were:

•  developer and supplier of Electronic Parts Catalogues (EPCs) and service quoting systems for the automotive industry

globally; and

• 

information management, analysis and creation for the domestic automotive and oil industries.

There have been no signifi cant changes in the nature of those activities during the year.

EMPLOYEES

The Company employed 213 (2007: 204) full time employees as at 30 June 2008.

25   infomedia.com.au

 
DIVIDENDS

Final dividends recommended:
On ordinary shares – fi nal – fully franked

Dividends paid in the year:
On ordinary shares – 2008 interim – fully franked

Final for the 2007 year:
On ordinary shares – as recommended in the 2007 report

NET TANGIBLE ASSETS PER SECURITY

The Company’s net tangible assets per security are as follows:

Net tangible assets per share at 30 June 2008

Net tangible assets per share at 30 June 2007

REVIEW AND RESULTS OF OPERATIONS 

Directors’ Report

Cents

$’000

4,491

5,867

6,845

1.40

1.80

2.10

Cents

3.5

4.4

The following table presents sales revenue and profi t after tax. There were no non-recurring signifi cant items during the 

2007 or 2008 fi nancial years:

Sales revenue – Catalogue & Publishing

Sales revenue – Business systems (sold 1 December 2006)

Consolidated sales revenue

CONSOLIDATED

2008

$’000

51,731

-

51,731

2007

$’000

52,990

1,576

54,566

Profi t after tax 

13,066

15,294

The Company is pleased to report net profi t after tax of $13,066,000 for the 2008 fi nancial year, which is within the guidance 

range previously advised in December 2007.

Electronic Parts Catalogue subscription numbers grew by 6% to 56,470 and Superservice Menus subscription numbers 

grew by 51% to 3,946 over the previous corresponding period.

Electronic Parts Catalogue subscription growth was driven primarily through the successful release of Microcat LIVE into 

more Toyota Europe markets. Superservice Menus subscription growth was driven by growth in Europe and Asia Pacifi c.

The consolidated sales revenue was impaired as a result of the rising strength of the Australian dollar throughout the year 

and by the previously communicated loss of General Motors EPC subscriptions.

On 1 April 2008, the Company commenced a share buy back (on market within 10/12 limit). As at 30 June 2008 the Company 

had repurchased 3,597,966 shares for a total consideration of $1,370,000. 

infomedia.com.au   26

Directors’ Report

REVIEW AND RESULTS OF OPERATIONS (CONTINUED)

Cash fl ows from operations remain strong with $13,181,000 in cash generation. Total dividend payments to shareholders 

over the 2008 fi nancial year amounted to $12,713,000. Notwithstanding these returns, the balance sheet remains in a 

strong position, with $14,247,000 cash on hand at 30 June 2008.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS 

There has been no signifi cant change in the state of aff  airs of the Company since the last Directors’ Report.

SIGNIFICANT EVENTS AFTER THE BALANCE DATE 

There has been no matter or circumstance that has arisen since the end of the fi nancial year that has signifi cantly aff  ected 

the operations of the Company, the results of those operations, or the state of aff  airs of the Company.

LIKELY DEVELOPMENTS AND EXPECTED RESULTS 

In the year ahead, the Company will see through to conclusion the previously communicated reduction in General Motors 

subscriptions in North America. However, growth in other subscriptions, particularly Superservice Menus, is forecasted 

to give rise to net subscription growth for the 2009 year. While the Company maintains an active foreign currency hedging 

program, the projected strength of the Australian dollar during the course of the 2009 year is likely to have a further 

dampening eff  ect on reported profi t, despite the anticipated net subscription growth.

The recent successful contract renewals in Europe, North America and Asia Pacifi c, along with the positive reception of our 

new products, provide a solid platform for growth in subscription volumes. Further advances in EPC technology for both the 

franchised automotive dealer and the independent motor trade will create increased sales momentum and diversifi cation 

of the Company’s customers and product portfolio over the medium term.

The outlook for Superservice Menus remains strong, with continuing growth expected into 2009 and beyond. The Company 

continues to expand both domestically and internationally with new automakers and organic growth from current releases.

ENVIRONMENTAL REGULATION AND PERFORMANCE 

The Company is not subject to any particular or signifi cant environmental regulation under a law of the Commonwealth of 

Australia or of a State or Territory.

SHARE OPTIONS 

Unissued shares

At the date of this report, there were 1,950,000 unissued ordinary shares under options. Refer to Note 24 to the fi nancial 

statements for further details of the options outstanding. 

Shares issued as a result of the exercise of options

There were no shares issued as a result of the exercise of options during the year.  Since the end of the fi nancial year there 

have been no further options exercised.

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS 

During the year the Company paid a premium in relation to insuring Directors and other offi  cers against liability incurred 

in their capacity as a Director or offi  cer of the Company. The insurance contract specifi cally prohibits the disclosure of the 

nature of the policy and amount of premium paid.

27   infomedia.com.au

Directors’ Report

REMUNERATION REPORT – AUDITED

This remuneration report outlines the director and executive remuneration arrangements of the Company and the Group 

in accordance with the requirements of the Corporations Act 2001 and its regulations. For the purposes of this report, Key 

Management Personnel (KMP) of the Group are defi ned as those persons having authority and responsibility for planning, 

directing and controlling the major activities of the Company and the Group, directly or indirectly, including any director 

(whether executive or otherwise) of the parent company.

Details of Key Management Personnel

(i) Directors

Richard Graham 

Gary Martin 

Myer Herszberg 

Frances Hernon 

Andrew Moff  at 

(ii) Executives

Chairman

Chief Executive Offi  cer

Non-executive Director

Non-executive Director

Non-executive Director

Andrew Pattinson 

Managing Director – IFM Europe Ltd

Chief Financial Offi  cer

Company Secretary & General Counsel

Director of Sales/General Manager Asia Pacifi c

Chief Information Offi  cer

Acting Chief Financial Offi  cer

Peter Adams* 

Nick Georges 

Michael Roach 

Michael Bodner** 

Jonathan Pollard*** 

* 

Resigned 31 March 2008 

**  Appointed 1 May 2008

***  Appointed 1 April 2008

Compensation Philosophy 

The performance of the Company depends upon the quality of its Directors and executives. To prosper, the Company 

must attract, motivate and retain highly skilled Directors and executives. To this end, the Company embodies the following 

principles in its compensation framework:

• Provide competitive rewards to attract high calibre executives

• Link executive rewards to shareholder value

• Establish appropriate performance hurdles in relation to variable executive compensation

Remuneration Committee

Ms Hernon, in her capacity as lead Director for all matters that formally fell within the ambit of the former Remuneration & 

Nomination Committee of the Board of Directors is responsible for recommending to the Board the Company’s remuneration 

and compensation policy arrangements for all Key Management Personnel. Ms Hernon, together with the non-executive 

members of the Board, assesses the appropriateness of the nature and amount of these emoluments on a periodic basis by 

reference to relevant employment market conditions with the overall objective of ensuring maximum stakeholder benefi t 

from the retention of a high quality Board and executive team. 

infomedia.com.au   28

Directors’ Report

REMUNERATION REPORT – AUDITED (CONTINUED)

Compensation Structure

In accordance with best practice corporate governance recommendations, the structure of Non-executive Director and 

senior executive compensation is separate and distinct.

Non-executive Director Compensation 

Objective

The Board seeks to set aggregate compensation at a level which provides the Company with the ability to attract and retain 

Directors of appropriate calibre, whilst incurring a cost which is acceptable to shareholders.

Structure

The Constitution and the Australian Securities Exchange (ASX) Listing Rules specify that the aggregate compensation of 

Non-executive Directors shall be determined from time to time by a general meeting. An amount not exceeding the amount 

determined is then available between the Directors as appropriate (for the year ended 30 June 2008, Non-executive 

Directors’ compensation totalled $309,341 (2007: $350,136)). The latest determination was at the Annual General Meeting 

held on 30 October 2002 when shareholders approved a maximum aggregate compensation of $450,000 per year.

The Board has historically considered the advice from external consultants as well as the fees paid to Non-executive Directors 

of comparable companies when undertaking a review process.

Senior Executive and Executive Director Compensation 

Objective

The Company aims to reward executives with a level and mix of compensation commensurate with their position and 

responsibilities within the Company and so as to:

•  reward executives for Company and individual performance against targets set by reference to appropriate benchmarks;

•  align the interests of executives with those of shareholders;

•  link reward with the strategic goals and performance of the Company; and

•  ensure that total compensation is competitive by market standards.

Structure

In determining the level and make-up of executive compensation, the Board engages an external consultant from time to 

time to provide independent advice in the form of a written report detailing market levels of compensation for comparable 

executive roles.

Compensation consists of the following key elements:

•  Fixed Compensation

•  Variable Compensation - Short Term Incentive (STI); and

•  Variable Compensation - Long Term Incentive (LTI).

The actual proportion of fi xed compensation and variable compensation (potential short term and long term incentives) is 

established for Key Management Personnel (excluding the CEO and Non-executive Directors) by the CEO in conjunction with 

29   infomedia.com.au

Directors’ Report

REMUNERATION REPORT – AUDITED (CONTINUED)

the lead Director (Ms Hernon) for all remuneration matters, and in the case of the CEO, by the Chairman of the Board in 

conjunction with Ms Hernon. Other executive salaries are determined by the CEO with reference to market conditions. 

Fixed Compensation

Objective

The level of fi xed compensation is set so as to provide a base level of compensation which is both appropriate to the 

position and competitive in the market. Fixed compensation is reviewed periodically by the CEO in conjunction with 

Ms Hernon for the Key Management Personnel (excluding the CEO and Non-executive Directors), and in the case of the 

CEO, by the Chairman of the Board in conjunction with Ms Hernon. All other executive positions are reviewed periodically 

by the CEO. As noted above, Ms Hernon has access to external advice independent of management.

Structure

Executives are given the opportunity to receive their fi xed (primary) compensation in a variety of forms including cash or 

other designated employee expenditure such as motor vehicles. It is intended that the manner of payment chosen will be 

optimal for the recipient without creating undue cost for the Company.

Variable Compensation – Short Term Incentive (STI) 

Objective

The objective of short term compensation is to link the achievement of both individual performance and Company 

performance with the compensation received by the executive.

Structure

The structure of short term compensation is a cash bonus dependent upon a combination of individual performance objectives 

and Company objectives being met. This refl ects the Company wide practice of Performance Planning & Review (PPR) 

procedures. Individual performance objectives centre on key focus areas. Company objectives include achieving budgetary 

targets that are set at the commencement of the fi nancial year (adjusted where necessary for currency fl uctuations). 

These performance conditions were chosen, in the case of individual performance objectives, to promote and maintain 

the individual’s focus on their own contribution to the Company’s strategic objectives through individual achievement in 

Key Result Areas (KRAs) which include, for example, leadership, decision making, results and risk management. In the case 

of Company objectives, budgetary performance conditions were chosen to promote and maintain a collaborative, Company 

wide focus on the achievement of those targets.

In assessing whether an individual performance condition has been satisfi ed, pre-agreed Key Performance Indicators (KPIs) 

are used. In assessing whether Company objectives have been satisfi ed, Board level pre-determined budgetary targets are 

used. These methods have been chosen to create clear and measurable performance targets.

Variable Compensation – Long Term Incentive (LTI) 

Objective

The objective of the LTI plan is to reward executives in a manner which aligns this element of compensation with the 

creation of shareholder wealth. As such LTI grants are made to executives who are able to infl uence the generation of 

infomedia.com.au   30

Directors’ Report

REMUNERATION REPORT – AUDITED (CONTINUED)

shareholder wealth and thus have a direct impact on the Company’s performance against the relevant long term 

performance hurdle.

Structure

The structure of long term compensation is in the form of share options pursuant to the employee option and employee 

share plans. Performance hurdles have been introduced for all share options issued after 31 December 2004 and are 

determined upon grant of those share options. These hurdles typically relate to the Company’s share price reaching or 

exceeding a particular level. These methods were chosen to create clear and measurable performance expectations. 

31   infomedia.com.au

Directors’ Report

REMUNERATION REPORT – AUDITED (CONTINUED)

Details of Directors, Key Management Personnel and the fi ve highest remunerated specifi ed executives for the year 

ended 30 June 2008 and 30 June 2007.

Short-Term

Post 
Employment

Share Based
Payments

Long-Term

Total

Percentage 
Performance 
Related

Salary 
& Fees

Bonus

Non 
Monetary 
Benefi ts

Super-
annuation

Options

Other

$

$

$

$

$

$

$

%

2008 Financial Year:

Directors

Richard Graham

115,000

-

Gary Martin

290,000

102,400

-

-

22,571

5,000

Myer Herszberg

Frances Hernon

Andrew Moffat

Executives

Andrew Pattinson

Peter Adams*

Nick Georges 

Michael Roach

Mark Kujacznski

Michael Bodner**

Jonathan Pollard***

2007 Financial Year:

Directors

Richard Graham

Gary Martin

Myer Herszberg

Frances Hernon

Andrew Moffat

Geoff  rey Henderson

Executives

Andrew Pattinson

Peter Adams

Mark Kujacznski

Michael Roach

Nick Georges

56,300

56,250

56,250

303,658

207,254

177,500

174,869

158,748

42,704

37,500

-

-

-

-

51,300

22,300

25,000

21,689

22,280

-

-

-

-

-

-

25,405

-

-

-

12,231

3,629

-

1,676,033

244,969

41,265

115,000

280,000

56,300

56,250

56,250

37,427

314,276

190,742

182,692

167,215

165,000

1,621,152

-

83,200

-

-

-

-

24,746

38,000

25,641

25,000

23,000

-

-

-

-

-

-

15,258

-

12,434

-

-

219,587

27,692

10,350

26,100

5,067

5,062

5,062

27,329

13,353

15,975

15,525

-

-

3,375

127,198

10,350

25,200

5,067

5,062

5,062

3,368

28,285

17,220

-

14,850

14,850

129,314

-

-

-

-

1,716

5,328

3,150

-

2,000

-

-

-

-

-

-

17,961

-

7,332

5,700

79,839

*Resigned 31 March 2008
**Appointed 1 May 2008
***Appointed 1 April 2008

34,765

25,123

2,149,353

-

48,846

-

3,267

125,350

446,071

61,367

61,312

61,312

-

-

-

14,073

370,465

-

2,850

3,200

-

-

-

273,623

223,953

221,744

192,668

70,613

40,875

125,350

440,513

61,367

61,312

61,312

40,795

387,803

266,148

220,767

217,184

210,475

-

-

-

-

5,238

2,225

-

2,787

1,925

-

20%

-

-

-

-

10%

15%

11%

-

-

-

-

30%

-

-

-

-

6%

21%

12%

15%

14%

15,442

2,093,026

infomedia.com.au   32

Directors’ Report

REMUNERATION REPORT – AUDITED (CONTINUED)

Contract for Services 

The table and notes below summarise current executive employment contracts with the Company as at the date of 

this report:

Gary Martin

Nick Georges

Michael Roach

Mark Kujacznski

Michael Bodner

Commencement date 
per latest contract

1 January 2008

1 January 2008

1 January 2006

22 August 2005

1 May 2008

Duration

Notice Period - Company

Notice Period - Executive

3 years

3 years

3 years

3 years

3 years 

 6 months*

 6 months*

3 months

3 months

    6 months**

6 months

6 months

3 months

3 months

6 months

The Company may terminate each of the contracts at any time without notice if serious misconduct has occurred. Options 

that have not yet vested upon termination will be forfeited. 

* In the event of redundancy, in addition to six months’ notice, the Company will provide the individual with a severance payment equivalent 
to three weeks’ base salary for each completed year of continuous service with the Company provided, however, that the minimum severance 
payment will be 26 weeks’ base salary and the maximum severance payment will not exceed 52 weeks’ base salary. 

** In the event of redundancy, in addition to six months notice, the Company will provide the individual with a severance payment equivalent to 
three weeks’ base salary for each completed year of continuous service with the Company.

Shares issued on exercise of compensation options (Consolidated)

No options were exercised during the year.

Compensation options: Granted and vested during the year ended 30 June 2008

Terms and Conditions for each Grant

Vested

Options Issued 
No.

Grant date

Fair value per 
option at grant 
date ($)

Exercise price 
per option ($)

Expiry date

No.

%

Directors

Gary Martin

Executives

Michael Bodner

Nick Georges

Total

1,000,000

1/1/2008

0.076

500,000

250,000

1,750,000

1/5/2008

1/1/2008

0.076

0.076

0.53

0.42

0.53

5/2/2011

13/5/2011

5/2/2011

-

-

-

-

-

-

-

-

There were no options granted in the prior year.

33   infomedia.com.au

Directors’ Report

DIRECTORS’ MEETINGS

The number of meetings of Directors (including meetings of committees of Directors) held during the year and the 

numbers of meetings attended by each Director were as follows:

Committee Meetings

Directors’ Meetings

Audit, Risk & Governance

Number of meetings held:

Number of meetings attended:

Richard Graham

Gary Martin 

Myer Herszberg

Frances Hernon

Andrew Moffat

16

16

14

16

13

14

6

-

-

4

4

6

In June 2007, the Board resolved to appoint Ms Hernon to the Audit & Risk Committee and to subsequently merge 

that Committee and the Corporate Governance Committee into the Audit, Risk & Governance Committee. It also 

resolved that the Board itself would re-absorb the Remuneration & Nomination Committee functions. These changes 

took eff  ect from 1 July 2007, with the exception of Ms Hernon’s appointment to the Audit & Risk Committee (as it 

then was), which took  eff  ect on  25 June 2007.

ROUNDING

The amounts contained in this report and in the fi nancial report have been rounded to the nearest $1,000 (where 

rounding is applicable) under the option available to the Company under ASIC Class Order 98/0100. The Company is 

an entity to which the Class Order applies.

CORPORATE GOVERNANCE

In recognising the need for high standards of corporate behaviour and accountability, the Directors of Infomedia Ltd 

support and have adhered to the principles of good corporate governance. The Company’s corporate governance 

statement is in the annual report.

AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES

The Directors received an auditor’s independence declaration from the auditor of the Company (refer to page 35).

NON-AUDIT SERVICES

Ernst & Young did not provide any non-audit services during the fi nancial year ended 30 June 2008.

Signed in accordance with a resolution of the Directors.

Richard David Graham 

Chairman

Sydney, 19 August 2008

infomedia.com.au   34

 
Auditor’s Independence Declaration to the Directors of Infomedia Limited 

In relation to our audit of the financial report of Infomedia Limited for the financial year ended 30 June 2008, 
to the best of my knowledge and belief, there have been no contraventions of the auditor independence 
requirements of the Corporations Act 2001 or any applicable code of professional conduct. 

Ernst & Young 

Garry Wayling 
Partner 
19 August 2008 

35   infomedia.com.au

Liability limited by a scheme approved 
under Professional Standards Legislation 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Statement

YEAR ENDED 30 June 2008

Notes

CONSOLIDATED

INFOMEDIA LTD

Sales revenue

Finance revenue

Revenue

Cost of sales

Gross Profi t

Net profi t/(loss) on sale of business

Employee benefi ts expense

Depreciation and amortisation

Finance costs

Operating lease rental

Other expenses

Profi t before income tax 

Income tax expense

Profi t after income tax 

Basic earnings per share (cents per share)

Diluted earnings per share (cents per share)

Dividends per share – ordinary (cents per share)

2008

$’000

51,731

760

52,491

(19,477)

33,014

-

(8,061)

(3,985)

(107)

(1,038)

(3,151)

16,672

(3,606)

13,066

4.01

4.01

3.20

2007

$’000

54,566

791

55,357

(17,448)

37,909

15

(8,374)

(3,492)

(134)

(1,072)

(4,119)

20,733

(5,439)

15,294

4.70

4.68

4.00

  3(i)

22

3(ii)

3(iii)

4

5

5

6

2008

$’000

39,394

740

40,134

(11,489)

28,645

-

(7,334)

(3,492)

(107)

(531)

(1,765)

15,416

(3,302)

 12,114

2007

$’000

42,967

778

43,745

(11,106)

32,639

(76)

(7,017)

(3,016)

(134)

(533)

(1,868)

19,995

(5,498)

14,497

infomedia.com.au   36

Balance Sheet

AT 30 June 2008

Notes

CONSOLIDATED

INFOMEDIA LTD

21(b)

7

8

31

9

10

12

13

4

15

16

17

18

19

4

20

20

2008

$’000

14,247

5,220

82

529

888

-

2007

$’000

15,690

6,944

52

432

-

-

2008

$’000

13,299

2,949

58

436

888

-

20,966

23,118

17,630

-

2,052

20,453

1,141

23,646

44,612

3,826

2,042

331

569

-

6,768

1,372

3,937

5,309

12,077

32,535

16,368

1,628

14,539

32,535

335

2,817

17,139

1,443

21,734

44,852

2,482

2,284

2,272

506

-

7,544

1,706

2,700

4,406

11,950

32,902

17,738

978

14,186

32,902

248

1,598

16,413

942

19,201

36,831

3,115

1,381

138

265

1,457

6,356

1,223

3,473

4,696

11,052

25,779

16,368

1,684

7,727

25,779

2007

$’000

13,544

3,818

52

297

-

1,623

19,334

583

2,222

13,465

1,250

17,250

36,854

1,752

1,612

2,228

254

-

5,846

1,568

2,353

3,921

9,767

27,087

17,738

1,023

8,326

27,087

CURRENT ASSETS

Cash and cash equivalents

Trade and other receivables 

Inventories

Prepayments

Derivatives

Intercompany

TOTAL CURRENT ASSETS

NON-CURRENT ASSETS

Other fi nancial assets 

Property, plant and equipment

Intangible assets and goodwill

Deferred tax assets

TOTAL NON-CURRENT ASSETS

TOTAL ASSETS

CURRENT LIABILITIES

Trade and other payables 

Provisions

Income tax payable

Deferred revenue 

Intercompany

TOTAL CURRENT LIABILITIES

NON-CURRENT LIABILITIES

Provisions

Deferred tax liabilities

TOTAL NON-CURRENT LIABILITIES

TOTAL LIABILITIES

NET ASSETS

EQUITY 

Contributed equity

Reserves

Retained profi ts

TOTAL EQUITY

37   infomedia.com.au

Cash Flow Statement

YEAR ENDED 30 June 2008

Notes

CONSOLIDATED

INFOMEDIA LTD

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers

Payments to suppliers and employees

Interest received

Borrowing costs 

Income tax paid

NET CASH FLOWS FROM OPERATING ACTIVITIES

21(a)

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of property, plant and equipment

Proceeds from sale of business

NET CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from exercise of share options

Repayment of borrowings

Share buy back payment

Dividends paid on ordinary shares

22

   20

   20

6

NET CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES

NET (DECREASE) IN CASH HELD

Add opening cash brought forward

CLOSING CASH CARRIED FORWARD

21(b)

2008

$’000

53,597

(36,900)

760

-

(4,276)

13,181

(541)

-

(541)

-

-

(1,370)

(12,713)

(14,083)

(1,443)

15,690

14,247

2007

$’000

54,284

(35,448)

791

(3)

(5,580)

14,044

(873)

1,169

296

250

(500)

-

(24,421)

(24,671)

(10,331)

26,021

15,690

2008

$’000

40,358

(22,483)

740

-

(4,271)

14,344

(506)

-

(506)

-

-

(1,370)

(12,713)

(14,083)

(245)

13,544

13,299

2007

$’000

43,535

(25,438)

778

(3)

(5,239)

13,633

(692)

185

(507)

250

(500)

-

(24,421)

(24,671)

(11,545)

25,089

13,544

infomedia.com.au   38

Statement of 
Changes in Equity

YEAR ENDED 30 June 2008

CONSOLIDATED

Contributed equity

Retained earnings

Other reserves

At 1 July 2007

Profi t for the year

Income/(expense) recognised directly in equity

     - Exchange diff  erence on translating foreign operations

     - Cashfl ow hedge gain

Total income/(expense) recognised directly in equity

Total income/(expense) for the year

EQUITY TRANSACTIONS

Cost of share based payments

Share buy back

Equity dividends

At 30 June 2008

$’000

17,738

-

-

-

-

-

-

(1,370)

-

16,368

$’000

14,186

13,066

-

-

-

13,066

-

-

(12,713)

14,539

$’000

978

-

(11)

626

615

615

35

-

-

1,628

YEAR ENDED 30 June 2007

CONSOLIDATED

Contributed equity

Retained earnings

Other reserves

At 1 July 2006

Profi t for the year

Income/(expense) recognised directly in equity

     - Exchange diff  erence on translating foreign 
operations

     - Cashfl ow hedge gain

Total income/(expense) recognised directly in equity

Total income/(expense) for the year

EQUITY TRANSACTIONS

Cost of share based payments

Exercise of options

Equity dividends

At 30 June 2007

$’000

17,488

-

-

-

-

-

-

250

-

17,738

$’000

23,313

15,294

-

-

-

15,294

-

-

(24,421)

14,186

$’000

1,010

-

(79)

-

(79)

(79)

47

-

-

978

Total

$’000

32,902

13,066

(11)

626

615

13,681

35

(1,370)

(12,713)

32,535

 Total

$’000

41,811

15,294

(79)

-

(79)

15,215

47

250

(24,421)

32,902

39   infomedia.com.au

Statement of 

Changes in Equity

YEAR ENDED 30 June 2008

INFOMEDIA LTD

Contributed equity

Retained earnings

Other reserves

At 1 July 2007

Profi t for the year

Income/(expense) recognised directly in equity

    - Exchange diff  erence on translating foreign operations

    - Cashfl ow hedge gain

Total income/(expense) recognised directly in equity

Total income/(expense) for the year

EQUITY TRANSACTIONS

Cost of share based payments

Share buy back

Equity dividends

At 30 June 2008

$’000

17,738

-

-

-

-

-

-

(1,370)

-

16,368

$’000

8,326

12,114

-

-

-

12,114

-

-

(12,713)

7,727

$’000

1,023

-

-

626

626

626

35

-

-

1,684

YEAR ENDED 30 June 2007

INFOMEDIA LTD

Contributed equity

Retained earnings

Other reserves

At 1 July 2006

Profi t for the year

Income/(expense) recognised directly in equity

     - Exchange diff  erence on translating foreign operations

     - Cashfl ow hedge gain

Total income/(expense) recognised directly in equity

Total income/(expense) for the year

EQUITY TRANSACTIONS

Cost of share based payments

Exercise of options

Equity dividends

At 30 June 2007

$’000

17,488

-

-

-

-

-

-

250

-

17,738

$’000

18,250

14,497

-

-

-

14,497

-

-

(24,421)

8,326

$’000

976

-

-

-

-

-

47

-

-

1,023

Total

$’000

27,087

12,114

-

626

626

12,740

35

(1,370)

(12,713)

25,779

 Total

$’000

36,714

14,497

-

-

-

14,497

47

250

(24,421)

27,087

infomedia.com.au   40

Notes to the 
Financial Statements

30 June 2008

1. CORPORATE INFORMATION

The fi nancial report of Infomedia Ltd for the year ended 30 June 2008 was authorised for issue in accordance with a resolution 

of the Directors on 19 August 2008.

Infomedia Ltd is a company limited by shares incorporated in Australia whose shares are publicly traded on the Australian 

Securities Exchange (ASX).

The nature of the operations and principal activities of the Company are described in the Directors’ Report.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

(a)  Basis of preparation

The fi nancial report is a general-purpose fi nancial report, which has been prepared in accordance with the requirements of 

the Corporations Act 2001 and Australian Accounting Standards. The fi nancial report has also been prepared on a historical 

cost basis, except for derivative fi nancial instruments that have been measured at fair value.

(b) Statement of compliance

This fi nancial report complies with Australian Accounting Standards as issued by the Australian Accounting Standards 

Board.  This fi nancial report also complies with the International Financial Reporting Standards (IFRS) as issued by the 

International Accounting Standards Board.

(c)  Adoption of new accounting standard

The group has adopted AASB 7 Financial instruments: Disclosures and all consequential amendments which became 

applicable on 1 January 2007. The adoption of this standard has only affected the disclosure in these fi nancial statements.  

There has been no effect on profi t and loss or the fi nancial position of the entity.

(d)  Basis of consolidation

The consolidated fi nancial statements comprise the fi nancial statements of Infomedia Ltd and its subsidiaries (“the Company”). 

The fi nancial statements of subsidiaries are prepared for the same reporting period as those of the parent company, using 

consistent accounting policies. Adjustments are made to bring into line any dissimilar accounting policies that may exist. 

All intercompany balances and transactions, including unrealised profi ts arising from intra-group transactions, have been 

eliminated in full. Unrealised losses are eliminated unless costs cannot be recovered. Subsidiaries are consolidated from 

the date on which control is transferred to the Company and cease to be consolidated from the date on which control is 

transferred out of the Company. Where there is loss of control of a subsidiary, the consolidated fi nancial statements 

include the results for the part of the reporting period during which Infomedia Ltd has control.

(e)  Signifi cant accounting judgements, estimates and assumptions

Signifi cant accounting estimates and assumptions

The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future 

events. The key estimates and assumptions that have a signifi cant risk of causing a material adjustment to the carrying 

amounts of certain assets and liabilities within the next annual reporting period are:

41   infomedia.com.au

Notes to the 

Financial Statements

30 June 2008

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

• 

Impairment of goodwill

The Company determines whether goodwill is impaired at least on an annual basis. This requires an estimation of the

recoverable amount of the cash generating units to which the goodwill and intangibles with indefi nite useful lives are allocated. 

The assumptions used in this estimation of recoverable amount and the carrying amount of goodwill and intangibles with 

indefi nite useful lives are discussed in Note 14.

•  Share-based payment transactions

The Company measures the cost of equity-settled transactions with employees by reference to the fair value of the equity 

instruments at the date at which they are granted. The fair value is determined by an external valuer using a binomial 

model, using the assumptions detailed in Note 24.

•  Research & Development

Research costs are expensed as incurred. An intangible asset arising from development expenditure on an internal project 

is recognised only when the Company can demonstrate the technical feasibility of completing the intangible asset so that it 

will be available for use or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate 

future economic benefi ts, the availability of resources to complete the development and the ability to measure reliably the 

expenditure attributable to the intangible asset during its development. Following the initial recognition of the development 

expenditure, the cost model is applied, requiring the asset to be carried at cost less any accumulated amortisation and 

accumulated impairment losses. Any expenditure so capitalised is amortised over the period of expected benefi ts from the 

related project commencing from the commercial release of the project.

The carrying value of an intangible asset arising from development expenditure is tested for impairment annually when the 

asset is not yet available for use or more frequently when an indication of impairment arises during the reporting period.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal 

proceeds and the carrying amount of the asset and are recognised in profi t or loss when the asset is derecognised.

(f)  Foreign currencies

Translation of foreign currency transactions

Transactions in foreign currencies of the Company are converted to local currency at the rate of exchange ruling at the date 

of the transaction.

Amounts payable to and by the Company that are outstanding at the balance date and are denominated in foreign currencies 

have been converted to local currency using rates of exchange ruling at the end of the reporting period.

All currency exchange differences in the consolidated fi nancial report are taken to the income statement.

Translation of fi nancial reports of overseas operations

Both the functional and presentation currency of Infomedia Ltd and its Australian subsidiaries is Australian dollars (A$).

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange 

rate as at the date of the initial transaction.

infomedia.com.au   42

Notes to the 
Financial Statements

30 June 2008

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

The functional currencies of the overseas subsidiaries are as follows: 

IFM Europe Ltd                  

Euros

IFM Germany GmbH           Euros

IFM North America Inc        United States Dollars (USD)

As at the reporting date, the assets and liabilities of these overseas subsidiaries are translated into the presentation currency 

of Infomedia Ltd at the rate of exchange ruling at the balance sheet date and the income statements are translated at the 

weighted average exchange rates for the period.

The exchange differences arising on the retranslation are taken directly to a separate component of equity.

(g)  Cash and cash equivalents

Cash on hand and in banks and short-term deposits are stated at nominal values.

For the purposes of the Cash Flow Statement, cash includes cash on hand and in banks, and money market investments 

readily convertible to cash within three months, net of outstanding bank overdrafts.

(h)  Trade and other receivables

Trade receivables, which generally have 30-60 day terms, are recognised and carried at original invoice amount less an 

allowance for any uncollectible amounts.

An allowance for doubtful debts is made when there is objective evidence that the Company will not be able to collect the 

debts. Bad debts are written off   when identifi ed.

(i) 

Investments and other fi nancial assets

Financial assets in the scope of AASB 139 Financial Instruments: Recognition and Measurement are classifi ed as either 

fi nancial assets at fair value through profi t or loss, loans and receivables, held-to-maturity investments, or available-for-

sale investments, as appropriate. For the Company the relevant categories are listed below:

Loans and receivables

Loans and receivables are non-derivative fi nancial assets with fi xed or determinable payments that are not quoted in an active 

market. Such assets are carried at amortised cost using the effective interest method. Gains and losses are recognised in 

profi t or loss when the loans and receivables are derecognised or impaired, as well as through the amortisation process.

Investments in Subsidiaries

Investments in subsidiaries are recorded at cost.

(j) 

Inventories

Inventories are valued at the lower of cost and net realisable value.

Costs incurred in bringing each product to its present location and condition are accounted for as follows:

• 

Raw materials – purchase cost on a fi rst-in-fi rst-out basis

43   infomedia.com.au

Notes to the 

Financial Statements

30 June 2008

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(k)  Goodwill

Goodwill acquired in a business combination is initially measured at cost, being the excess of the cost of the business 

combination over the Company’s interest in the net fair value of the acquiree’s identifi able assets, liabilities and 

contingent liabilities.

Following initial recognition, goodwill is measured at cost less any accumulated impairment losses.

Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the 

carrying value may be impaired.

For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated 

to each of the Company’s cash-generating units, or groups of cash generating units, that are expected to benefi t from the 

synergies of the combination, irrespective of whether other assets or liabilities of the Company are assigned to those units 

or groups of units.

Each unit or group of units to which the goodwill is so allocated:

•  

represents the lowest level within the Company at which the goodwill is monitored for internal management purposes;  

and

•   

is not larger than a segment based on either the Company’s primary or the Company’s secondary reporting format

determined in accordance with AASB 114 Segment Reporting.

Impairment is determined by assessing the recoverable amount of the cash-generating unit (group of cash-generating 

units) to which the goodwill relates. When the recoverable amount of the cash-generating unit (group of cash-generating 

units) is less than the carrying amount, an impairment loss is recognised. When goodwill forms part of a cash-generating 

unit (group of cash-generating units) and an operation within that unit is disposed of, the goodwill associated with the 

operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of 

the operation. Goodwill disposed of in this manner is measured based on the relative values of the operation disposed of 

and the portion of the cash generating unit retained.

Impairment losses recognised for goodwill are not subsequently reversed.

(l) 

Intangible assets

Intangible assets acquired separately or in a business combination are initially measured at cost. The cost of an intangible 

asset acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible 

assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. Internally generated 

intangible assets, excluding capitalised development costs, are not capitalised and expenditure is charged against profi ts in 

the year in which the expenditure is incurred.

The useful lives of intangible assets are assessed to be either fi nite or indefi nite. Intangible assets with fi nite lives are 

amortised over the useful life and assessed for impairment whenever there is an indication that the intangible asset may be 

impaired. The amortisation period and the amortisation method for an intangible asset with a fi nite useful life are reviewed 

at least at each fi nancial year-end. Changes in the expected useful life or the expected pattern of consumption of future 

infomedia.com.au   44

 
 
Notes to the 
Financial Statements

30 June 2008

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

economic benefi ts embodied in the asset are accounted for by changing the amortisation period or method, as appropriate, 

which is a change in accounting estimate. The amortisation expense on intangible assets with fi nite lives is recognised in 

profi t or loss in the expense category consistent with the function of the intangible asset.

Intangible assets with indefi nite useful lives are tested for impairment annually either individually or at the cash-generating 

unit level. Such intangibles are not amortised. The useful life of an intangible asset with an indefi nite life is reviewed each 

reporting period to determine whether indefi nite life assessment continues to be supportable. If not, the change in the 

useful life assessment from indefi nite to fi nite is accounted for as a change in an accounting estimate and is thus accounted 

for on a prospective basis.

(m)  Impairment of assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any such 

indication exists, or when annual impairment testing for an asset is required, the Company makes an estimate of the asset’s 

recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use and 

is determined for an individual asset, unless the asset does not generate cash infl ows that are largely independent of 

those from other assets or groups of assets and the asset’s value in use cannot be estimated to be close to its fair value. In 

such cases, the asset is tested for impairment as part of the cash generating unit to which it belongs. When the carrying 

amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered 

impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash fl ows are discounted to their present value using a pre-tax discount rate 

that refl ects current market assessments of the time value of money and the risks specifi c to the asset. Impairment losses 

relating to continuing operations are recognised in those expense categories consistent with the function of the impaired 

asset unless the asset is carried at revalued amount (in which case the impairment loss is treated as a revaluation decrease).

An assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment 

losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A 

previously recognised impairment loss is reversed (with the exception of goodwill) only if there has been a change in the 

estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the 

case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the 

carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the 

asset in prior years. Such reversal is recognised in profi t or loss unless the asset is carried at revalued amount, in which case 

the reversal is treated as a revaluation increase. After such a reversal, the depreciation charge is adjusted in future periods 

to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.

(n) Property, plant and equipment

Property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses. 

Land and buildings are measured at cost less accumulated depreciation on buildings and less any impairment losses recognised.

Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:

45   infomedia.com.au

Notes to the 

Financial Statements

30 June 2008

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Major depreciation periods are: 

      2008 

      2007 

Leasehold improvements: 

5 to 20 years 

5 to 20 years 

Other plant and equipment: 

3 to 15 years 

3 to 15 years 

The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each 

fi nancial year end.

(i) Impairment

The carrying values of property, plant and equipment are reviewed for impairment at each reporting date, with the recoverable 

amount being estimated when events or changes in circumstances indicate that the carrying value may be impaired.

The recoverable amount of property, plant and equipment is the higher of fair value less costs to sell and value in use. In 

assessing value in use, the estimated future cash fl ows are discounted to their present value using a pre-tax discount rate 

that refl ects current market assessments of the time value of money and the risks specifi c to the asset.

For an asset that does not generate largely independent cash infl ows, recoverable amount is determined for the 

cash-generating unit to which the asset belongs, unless the asset’s value in use can be estimated to be close to its fair value.

An impairment exists when the carrying value of an asset or cash-generating units exceeds its estimated recoverable 

amount. The asset or cash-generating unit is then written down to its recoverable amount.

(ii) Derecognition and disposal

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefi ts are 

expected from its use or disposal.

Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and 

the carrying amount of the asset) is included in profi t or loss in the year in which the asset is derecognised.

(o)  Leases

The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement and 

requires an assessment of whether the fulfi lment of the arrangement is dependent on the use of a specifi c asset or assets 

and the arrangement conveys a right to use the asset.

(i) Company as a lessee

Operating lease payments are recognised as an expense in the income statement on a straight-line basis over the lease 

term. Lease incentives are recognised in the income statement as an integral part of the total lease expense.

(p)   Trade and other payables

Trade payables and other payables are carried at amortised costs and represent liabilities for goods and services provided 

to the Company prior to the end of the fi nancial year that are unpaid and arise when the Company becomes obliged to make 

future payments in respect of the purchase of these goods and services.

infomedia.com.au   46

Notes to the 
Financial Statements

30 June 2008

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(q) Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is 

probable that an outfl ow of resources embodying economic benefi ts will be required to settle the obligation and a reliable 

estimate can be made of the amount of the obligation.

Where the Company expects some or all of a provision to be reimbursed, for example under an insurance contract, the 

reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating 

to any provision is presented in the income statement net of any reimbursement.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash fl ows 

at a pre-tax rate that refl ects current market assessments of the time value of money and, where appropriate, the risks 

specifi c to the liability.

Where discounting is used, the increase in the provision due to the passage of time is recognised as a borrowing cost.

(r)  Deferred revenue

Certain contracts allow annual subscriptions to be invoiced in advance. The components of revenue relating to the subscription 

period beyond balance date are recorded as a liability.  

(s)  Contributed equity

Ordinary shares are classifi ed 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.

(t)  Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefi ts will fl ow to the entity and the revenue can 

be reliably measured. The following specifi c recognition criteria must also be met before revenue is recognised:

Subscriptions

Subscription revenue is recognised when the copyright article has passed to the buyer with related support revenue being 

recognised over the service period. Where the copyright article and related support revenue are inseparable, then the 

revenue is recognised over the service period.

Interest

Control of a right to receive consideration for the provision of, or investment in, assets has been attained.

(u) Cost of sales

Cost of sales includes the direct cost of raw materials, direct salary and wages, and agency costs associated with the 

manufacture and distribution of the product.

47   infomedia.com.au

Notes to the 

Financial Statements

30 June 2008

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(v) Derivative fi nancial instruments and hedging

Derivatives are carried as assets when their fair value is positive and as liabilities when their fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives, except for those that qualify as cash fl ow hedges, 

are taken directly to profi t or loss for the year.

The fair values of forward currency contracts are calculated by reference to current forward exchange rates for contracts 

with similar maturity profi les.

For the purpose of hedge accounting, hedges are classifi ed as cash fl ow hedges when they hedge the exposure to variability 

in cash fl ows that is attributable either to a particular risk associated with a recognised asset or liability or to a forecast 

transaction. Infomedia Ltd currently has cash fl ow hedges attributable to future foreign currency sales.

Cash fl ow hedges

Cash fl ow hedges are hedges of the Group’s exposure to variability in cash fl ows that is attributable to a particular risk 

associated with anticipated future sales that could affect profi t or loss.  The effective portion of the gain or loss on the 

hedging instrument is recognised directly in equity, while the ineffective portion is recognised in profi t or loss.

Amounts taken to equity are transferred out of equity and included in the measurement of the hedged transaction when 

the forecast transaction occurs.

The Group tests each of the designated cash fl ow hedges for effectiveness on a monthly basis both retrospectively and 

prospectively using the “matched terms” principle.

At each balance date, hedge effectiveness is measured in the fi rst instance by determining whether there have been any 

changes to these “matched terms”.  When there have been no changes to these “matched terms”, the hedge is considered 

to be highly effective. When there has been a change to these terms, effectiveness is measured using the hypothetical 

derivative method.

(w)  Income tax

Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered 

from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted 

or substantively enacted by the balance sheet date.

Deferred income tax is provided on all temporary differences at the balance sheet date between the tax bases of assets and 

liabilities and their carrying amounts for fi nancial reporting purposes.

Deferred income tax liabilities are recognised for all taxable temporary differences except:

•   when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a 

transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting

profi t nor taxable profi t or loss; or

infomedia.com.au   48

 
 
Notes to the 
Financial Statements

30 June 2008

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

•   when the taxable temporary difference is associated with investments in subsidiaries, associates or interests in joint 

ventures, and the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary 

difference will not reverse in the foreseeable future.

Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and 

unused tax losses, to the extent that it is probable that taxable profi t will be available against which the deductible temporary 

differences and the carry-forward of unused tax credits and unused tax losses can be utilised, except:

•   when the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition

of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, aff  ects 

neither the accounting profi t nor taxable profi t or loss; or

•   when the deductible temporary diff  erence is associated with investments in subsidiaries, associates or interests in joint

ventures, in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary

diff  erence will reverse in the foreseeable future and taxable profi t will be available against which the temporary 

diff  erence can be utilised.

The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no 

longer probable that suffi  cient taxable profi t will be available to allow all or part of the deferred income tax asset to be utilised.

Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it 

has become probable that future taxable profi t will allow the deferred tax asset to be recovered.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the 

asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted 

at the balance sheet date.

Income taxes relating to items recognised directly in equity are recognised in equity and not in profi t or loss.

Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off   current tax assets 

against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same 

taxation authority.

The tax consolidated current tax liability and other deferred tax assets are required to be allocated to the members of the 

tax consolidated group in accordance with UIG 1052. The group uses a group allocation method for this purpose where 

the allocated current tax payable, deferred tax assets and other tax credits for each member of the tax consolidated group 

are determined as if the Company were a stand-alone taxpayer but modifi ed as necessary to recognise membership of a 

tax consolidated group. Recognition of amounts allocated to members of the tax consolidated group has regard to the tax 

consolidated group’s future tax profi ts. 

(x) Other taxes

Revenues, expenses and assets are recognised net of the amount of Goods and Services Tax (GST) except:

•   when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which

case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; 

49   infomedia.com.au

 
 
 
 
 
 
Notes to the 

Financial Statements

30 June 2008

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

and

•   receivables and payables, which are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables 

in the balance sheet.

Cash fl ows are included in the Cash Flow Statement on a gross basis and the GST component of cash fl ows arising from 

investing and fi nancing activities, which is recoverable from, or payable to, the taxation authority is classifi ed as operating 

cash fl ows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

(y) Employee leave benefi ts

(i) Wages, salaries and annual leave

Liabilities for wages and salaries, including non-monetary benefi ts, and annual leave expected to be settled within 12 

months of the reporting date are recognised in other payables in respect of employees’ services up to the reporting date. 

They are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick 

leave are recognised when the leave is taken and are measured at the rates paid or payable.

(ii) Long service leave

The liability for long service leave is recognised in the provision for employee benefi ts and 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 period of service. Expected future 

payments are discounted using market yields at the reporting date on national government bonds with terms to maturity 

and currencies that match, as closely as possible, the estimated future cash fl ows.

(z) Share-based payment transactions

The Company provides benefi ts to employees in the form of share-based payment transactions, whereby employees render 

services in exchange for shares or options over shares (“equity-settled transactions”).

There are currently two plans in place to provide these benefi ts:

(i) the Employee Share Plan (ESP); and

(ii) the Employee Option Plan (EOP).

The cost of these equity-settled transactions with employees is measured by reference to the fair value at the date at which 

they are granted. The fair value is determined by an external valuer using a binomial model.

In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions linked to 

the price of the shares of Infomedia Ltd (“market conditions”).

infomedia.com.au  50

Notes to the 
Financial Statements

30 June 2008

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in 

which the performance conditions are fulfi lled, ending on the date on which the relevant employees become fully entitled to 

the option (“vesting date”).

The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date refl ects (i) the 

extent to which the vesting period has expired and (ii) the number of options that, in the opinion of the Directors of the 

Company, will ultimately vest. This opinion is formed based on the best available information at balance date. No adjustment 

is made for the likelihood of market performance conditions being met, as the effect of these conditions is included in the 

determination of fair value at grant date.

Where the terms of an equity-settled option are modifi ed, as a minimum an expense is recognised as if the terms had 

not been modifi ed. In addition, an expense is recognised for any increase in the value of the transaction as a result of the 

modifi cation, as measured at the date of modifi cation.

Where an equity-settled option is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not 

yet recognised for the option is recognised immediately. However, if a new option is substituted for the cancelled option, 

and designated as a replacement option on the date that it is granted, the cancelled and new option are treated as if they 

were a modifi cation of the original option, as described in the previous paragraph.

The dilutive effect, if any, of outstanding options is refl ected as additional share dilution in the computation of earnings 

per share.

(aa) Earnings per share

Basic earnings per share is determined by dividing the profi t attributed to members of the parent after related income tax 

expense by the weighted average number of ordinary shares outstanding during the fi nancial year.

Diluted earnings per share is calculated as net profi t attributable to members, adjusted for:

• 

• 

cost of servicing equity (other than dividends);

the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been 

recognised as expenses;

• 

other non-discretionary changes in revenue or expenses during the period that would result from the dilution of 

potential ordinary shares; and

divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any 

bonus element.

51   infomedia.com.au

 
 
Notes to the 

Financial Statements

30 June 2008

Notes

CONSOLIDATED

INFOMEDIA LTD

3. EXPENSES

(i) Cost of sales

Direct wages

Other

Total cost of sales

(ii) Employee benefi t expense

Salaries and wages (including on-costs)

Share based payment expense

Total employee benefi t expense

(iii) Depreciation and amortisation

Depreciation of non-current assets:

– Leasehold improvements

– Offi  ce equipment

– Furniture and fi ttings

– Plant and equipment

Total depreciation of non-current assets

Amortisation of non-current assets

– Intellectual property

– Deferred development costs

Total amortisation of non-current assets

Total depreciation and amortisation

(iv) Research & development costs

2008

$’000

11,090

8,387

19,477

8,026

35

8,061

132

845

27

302

1,306

698

1,981

2,679

3,985

2007

$’000

11,642

5,806

17,448

8,327

47

8,374

180

1,140

42

219

1,581

744

1,167

1,911

3,492

2008

$’000

4,275

7,214

11,489

7,299

35

7,334

103

715

10

302

1,130

698

1,664

2,362

3,492

2007

$’000

6,015

5,091

11,106

6,970

47

7,017

121

993

26

219

1,359

681

976

1,657

3,016

Total research & development costs incurred during the period

Less: development costs deferred

13

Net research and development costs expensed

9,575

(5,993)

3,582

5,182

(3,235)

1,947

8,746

(5,310)

3,436

4,629

(2,682)

1,947

infomedia.com.au   52

Notes to the 
Financial Statements

30 June 2008

CONSOLIDATED

INFOMEDIA LTD

2008

$’000

2007

$’000

2008

$’000

2007

$’000

4. INCOME TAX 

The major components of income tax expense are:

Income statement

Current income tax

Current income tax charge

Adjustments in respect of current income tax of previous years

Adjustments in respect of capital gains tax of previous years

Deferred income tax

Relating to origination and reversal of temporary diff  erences

Income tax expense reported in the income statement

A reconciliation between tax expense and the product 

of accounting profi t before income tax multiplied by the 

Company’s applicable income tax rate is as follows:

Accounting profi t before income tax

At the Company’s statutory income tax rate of 30% (2007: 30%)

Adjustments in respect of current income tax of previous years

Adjustments in respect of capital gains tax of previous years

Additional research and development deduction

Expenditure not allowable for income tax purposes

Other

Income tax expense reported in the income statement

Tax consolidation

3,286

(952)

-

1,272

3,606

16,672

5,002

(952)

-

(560)

116

-

3,606

4,853

(84)

(315)

985

5,439

20,733

6,220

(84)

(315)

(388)

145

(139)

5,439

3,057

(915)

-

1,160

3,302

15,416

4,625

(915)

-

(509)

101

-

3,302

4,497

(118)

-

1,119

5,498

19,995

5,999

(118)

-

(347)

138

(174)

5,498

Eff  ective 1 July 2002, for the purposes of income taxation, Infomedia Ltd and its 100% owned Australian subsidiaries have 

formed a tax consolidated group. Members of the group have entered into a tax sharing arrangement in order to allocate 

income tax expense to the wholly-owned subsidiaries. In addition, the agreement provides for the allocation of income 

tax liabilities between the entities should the head entity default on its tax payment obligations. At the balance date, the 

possibility of default is remote.

Members of the tax consolidated group have also entered into a tax funding agreement. The tax funding agreement 

provides for the funding of allocated tax liabilities, tax losses and foreign tax credits for the current period based on the 

recognition criteria set out in the accounting policy for income taxes. Allocations under the tax funding agreement are 

made after the fi nalisation of the group’s income tax return. The allocation of taxes under the tax funding agreement 

is recognised as an increase/decrease in the subsidiaries’ intercompany accounts with the tax consolidated group head 

company, Infomedia Ltd.

53   infomedia.com.au

30 June 2008

4. INCOME TAX (CONTINUED)

Deferred income tax

Deferred income tax at 30 June relates to the following:

CONSOLIDATED

Deferred tax liabilities

Prepayments

Derivatives

Property plant and equipment

Deferred development costs

Intellectual property

Currency exchange

CONSOLIDATED

Deferred tax assets

Allowance for doubtful debts

Copyright intellectual property

Other payables

Employee entitlement provisions

Other provisions

Currency exchange

Deferred tax income/(expense)

PARENT

Deferred tax liabilities

Prepayments

Derivatives

Property plant and equipment

Deferred development costs

Intellectual property

Currency exchange

PARENT

Deferred tax assets

Allowance for doubtful debts

Copyright intellectual property

Other payables

Employee entitlement provisions

Other provisions

Currency exchange

Deferred tax income/(expense)

Notes to the 

Financial Statements

BALANCE SHEET

INCOME STATEMENT

2008

$’000

2007

$’000

2008

$’000

2007

$’000

-

(267)

(90)

(3,399)

(175)

(6)

(3,937)

48

-

92

540

408

53

1,141

-

(267)

(90)

(2,941)

(175)

-

(3,473)

43

-

64

374

408

53

942

(1)

-

(120)

(2,195)

(384)

-

(2,700)

77

-

116

551

565

134

1,443

(2)

-

(120)

(1,847)

(384)

-

(2,353)

75

-

107

389

565

114

1,250

(1)

-

(30)

1,204

(209)

6

29

-

24

11

157

81

1,272

(2)

-

(30)

1,094

(209)

-

32

-

42

15

157

61

1,160

(7)

(69)

(30)

621

141

(18)

(2)

176

(19)

159

167

(134)

985

(3)

(69)

(30)

512

384

(17)

(6)

176

(16)

135

167

(114)

1,119

infomedia.com.au   54

Notes to the 
Financial Statements

5. EARNINGS PER SHARE   

Basic earnings per share amounts are calculated by dividing net profi t for the year attributable to ordinary equity holders of 

the parent by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the net profi t attributable to ordinary shareholders by the 

weighted average number of ordinary shares outstanding during the year (adjusted for the eff  ects of dilutive options).

The following refl ects the income and share data used in the total operations basic and diluted earnings per share computations:

Net profi t attributable to equity holders from continuing operations

Weighted average number of ordinary shares for basic earnings per share

Eff  ect of dilution:

Share options

Notes

CONSOLIDATED

2008

$’000

13,066

2007

$’000

15,294

Number 
of shares

Number 
of shares

325,818,373

325,693,490

-

899,919

Adjusted weighted average number of ordinary shares for diluted earnings per share

325, 818,373

326,593,409

Since the reporting date, prior to the completion of these fi nancial statements, the Company has repurchased a further 

1,587,801 shares through its buy back program at a weighted average price of 36.92 cents per share and granted a further 

150,000 share options to eligible employees. 

The options are considered not to be dilutive.

55   infomedia.com.au

   
Notes to the 

Financial Statements

30 June 2008

CONSOLIDATED

INFOMEDIA LTD

 6.    DIVIDENDS PROPOSED OR PAID

(a) Dividends paid during the year:

Franked interim dividend – 1.8 cents (2007: 1.9 cents) per share

Prior year fi nal franked dividend – 2.1 cents (2007: 2.1 cents) 
per share

Special dividend – 3.5 cents (2007: 3.5 cents) per share

Rounding

     Total dividends paid during the year

(b) Dividends proposed and not recognised as a liability:

2008

$’000

5,867

6,845

-

1

12,713

2007

$’000

6,194

6,836

11,391

-

24,421

2008

$’000

5,867

6,845

-

1

12,713

2007

$’000

6,194

6,836

11,391

-

24,421

Final franked dividend – 1.4 cents (2007: 2.1 cents)   per share

4,491

6,845

4,491

6,845

940

137

1,077

2,705

(145)

2,560

389

2,949

1,135

2,228

3,363

3,553

(250)

3,303

515

3,818

5,048

(272)

4,776

444

5,220

6,850

(487)

6,363

581

6,944

(c) Franking credit balance:

The  amount  of  franking  credits  available  for  the  subsequent 
fi nancial year are:

–  franking account balance as at the end of the fi nancial year

–  franking credits that will arise from the payment of income tax 

payable as at the end of the fi nancial year

The  tax  rate  at  which  paid  dividends  have  been  franked  is  30% 
(2007: 30%). Dividends proposed will be franked at the rate of 30% 
(2007: 30%).

7. TRADE AND OTHER RECEIVABLES (CURRENT)

Trade debtors

Allowance for doubtful debts (b)

Other debtors

(a) Trade debtors are non-interest bearing and are generally on 30-
60 day terms. An allowance for doubtful debts is made when 
there is objective evidence that a trade debtor is impaired. The 
amount of the allowance/impairment loss is recognised as the 
diff  erence between the carrying amount of the debtor and the 
estimated future cash fl ows expected to be received from the 
relevant debtors.

(b)  The movement in the allowance for doubtful debts in the year 

represents a reduction in the provision.

(c)   There are no material trade debtors that are past due at balance 

date and not considered impaired.

(d) The allowance for doubtful debts relates to debtors aged greater 

than 30–60 days. No collateral is held against this debt.

infomedia.com.au   56

 
Notes to the 
Financial Statements

30 June 2008

Notes

CONSOLIDATED

INFOMEDIA LTD

2008

$’000

2007

$’000

2008

    $’000

2007

    $’000

82

82

-

-

-

-

-

52

52

-

-

-

335

335

58

58

-

-

248

-

248

52

52

1,623

1,623

248

335

583

247

247

-

-

-

1

-

-

-

-

1

-

248

248

8. INVENTORIES

Raw materials

At cost

Total inventories at the lower of cost and net 
realisable value

9. INTERCOMPANY (CURRENT)

Wholly-owned controlled entities 

10. OTHER FINANCIAL ASSETS 

   (NON-CURRENT)

Investments in controlled entities

11

Other receivables

11. INTERESTS IN CONTROLLED ENTITIES

Name

Country of 
incorporation

Percentage of equity 
interest held by the 
Company (directly 
or indirectly)

2008

%

100

100

100

100

iii100

iii100

IFM Europe Ltd 

- ordinary shares

 United     
Kingdom

Infomedia Investments Pty Ltd

 - ordinary shares - $2 only 

 Australia

Datateck Publishing Pty Ltd

- ordinary shares - $4 only

 Australia

AutoConsulting Pty Ltd

- ordinary shares - $1 only

 Australia

IFM North America Inc

- ordinary shares

United States 
of America

IFM Germany GmbH*

Germany

* Investment is held by IFM Europe Ltd.

57   infomedia.com.au

Notes to the 

Financial Statements

30 June 2008

CONSOLIDATED

INFOMEDIA LTD

12. PROPERTY, PLANT & EQUIPMENT

(a) Leasehold improvements

At cost

Accumulated amortisation

Offi  ce equipment

At cost

Accumulated depreciation

Furniture and fi ttings

At cost

Accumulated depreciation

Plant and equipment

At cost

Accumulated depreciation

Total property, plant and equipment

At cost

Accumulated depreciation and amortisation

Total written down amount

2008

$’000

944

(512)

432

6,036

(4,890)

1,146

275

(116)

159

2,938

(2,623)

315

10,193

(8,141)

2,052

2007

$’000

944

(380)

564

5,675

(4,075)

1,600

266

(93)

173

2,800

(2,320)

480

9,685

(6,868)

2,817

2008

$’000

518

(205)

313

4,932

(4,036)

896

140

(66)

74

2,938

(2,623)

315

8,528

(6,930)

1,598

2007

$’000

515

(101)

414

4,583

(3,321)

1,262

123

(57)

66

2,800

(2,320)

480

8,021

(5,799)

2,222

infomedia.com.au   58

Notes to the 
Financial Statements

30 June 2008

CONSOLIDATED

INFOMEDIA LTD

2008

$’000

2007

$’000

2008

$’000

2007

$’000

12. PROPERTY, PLANT & EQUIPMENT (CONTINUED)

(b) Reconciliation of property, plant and equipment 

carrying values

Leasehold Improvements

Carrying amount – opening balance

Additions

Disposals

Depreciation

Carrying amount – closing balance

Offi  ce equipment

Carrying amount – opening balance

Additions

        Disposals

Depreciation

Carrying amount – closing balance

Furniture and fi ttings

Carrying amount – opening balance

Additions

Disposals

Depreciation

Carrying amount – closing balance

Plant and equipment

Carrying amount – opening balance

Additions

Depreciation

Carrying amount – closing balance

564

-

-

(132)

432

1,600

391

-

(845)

1,146

173

13

-

(27)

159

480

137

(302)

315

917

81

(254)

(180)

564

2,309

686

(255)

(1,140)

1,600

215

31

(31)

(42)

173

625

74

(219)

480

414

2

-

(103)

313

1,262

349

-

(715)

896

66

18

-

(10)

74

480

137

(302)

315

767

15

(247)

(121)

414

1,891

602

(238)

(993)

1,262

119

-

(27)

(26)

66

625

74

(219)

480

59   infomedia.com.au

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the 

Financial Statements

30 June 2008

CONSOLIDATED

INFOMEDIA LTD

Development 
costs1

Intellectual 
Property2

Goodwill 2

Total

Development 
costs1

Intellectual 
Property2

Goodwill 2

Total

$’000

$’000

$’000

$’000

$’000

$’000

$’000

$’000

13. INTANGIBLE ASSETS 
      AND GOODWILL

At 1 July 2007

Cost (gross carrying amount)

Accumulated amortisation

Net carrying amount

Year ended 30 June 2008

At 1 July 2007, net of accumulated 

amortisation and impairment

Additions – development

Amortisation

At 30 June 2008, net of 
accumulated amortisation and 
impairment

At 30 June 2008

Cost (gross carrying amount)

Accumulated amortisation

Net carrying amount

9,464

(2,147)

7,317

2,096

(815)

1,281

8,541

-

8,541

20,101

(2,962)

17,139

8,114

(1,956)

6,158

2,096

(815)

1,281

6,026

-

6,026

16,236

(2,771)

13,465

7,317

5,993

(1,981)

1,281

-

(698)

8,541

-

-

17,139

5,993

6,158

5,310

1,281

6,026

-

(2,679)

(1,664)

(698)

13,465

5,310

(2,362)

-

-

11,329

583

8,541

20,453

9,804

583

6,026

16,413

15,457

(4,128)

11,329

2,096

(1,513)

583

8,541

26,094

-

8,541

(5,641)

20,453

13,423

(3,619)

9,804

2,096

(1,513)

583

6,026

-

6,026

21,545

(5,132)

16,413

1. Internally generated.
2. Purchased as part of business/territory acquisition.

Development costs that meet the recognition criteria as an intangible asset have been capitalised at cost. This intangible 

asset has been assessed as having a fi nite life and is amortised using the straight-line method over a period not exceeding 

four years commencing from the commercial release of the project. 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.

Intellectual property includes intangible assets acquired through business or territory acquisition and relates primarily to 

copyright and software code over key products. Intellectual property is amortised over its useful life, being three years.

infomedia.com.au   60

Notes to the 
Financial Statements

CONSOLIDATED

INFOMEDIA LTD

Development 
costs

Intellectual 
Property

Goodwill

Total

Development 
costs

Intellectual 
Property

Goodwill

Total

$’000

$’000

$’000

$’000

$’000

$’000

$’000

$’000

13. INTANGIBLE ASSETS AND
      GOODWILL (CONTINUED)

At 1 July 2006

Cost (gross carrying amount)

Accumulated amortisation

Net carrying amount

Year ended 30 June 2007

At 1 July 2007, net of accumulated 
amortisation and impairment

Additions – development

Disposals – Business 
systems assets

Other movements

Amortisation

At 30 June 2007, net of 
accumulated amortisation 
and impairment

At 30 June 2007

Cost (gross carrying amount)

Accumulated amortisation

Net carrying amount

6,229

(980)

5,249

3,910

(621)

3,289

8,837

-

8,837

18,976

(1,601)

17,375

5,249

3,235

-

-

(1,167)

3,289

8,837

-

-

17,375

3,235

(950)

(314)

(744)

(296)

(1,246)

-

-

(314)

(1,911)

5,432

(980)

4,452

4,452

2,682

-

-

(976)

2,410

(134)

2,276

6,026

-

6,026

13,868

(1,114)

12,754

2,276

6,026

-

-

(314)

(681)

-

-

-

-

12,754

2,682

-

(314)

(1,657)

7,317

1,281

8,541

17,139

6,158

1,281

6,026

13,465

9,464

(2,147)

7,317

2,096

(815)

1,281

8,541

-

8,541

20,101

(2,962)

17,139

8,114

(1,956)

6,158

2,096

(815)

1,281

6,026

-

6,026

16,236

(2,771)

13,465

61   infomedia.com.au

Notes to the 

Financial Statements

14. IMPAIRMENT TESTING OF GOODWILL 

Goodwill acquired through business combinations or territory acquisition have been allocated to four individual cash 

generating units, each of which is a reportable segment (refer to Note 29) for impairment testing as follows:

•  Asia Pacifi c

•  Europe

•  North America

•  Latin and South America.

The recoverable amount of each cash generating unit has been determined based on a value in use calculation using cash 

fl ow projections as at 30 June 2008 based on fi nancial budgets approved by senior management for FY09 extrapolated for 

a fi ve year period on the basis of zero growth.

The pre-tax discount rate applied to cash fl ow projections is 14% (2007: 14%).  The discount rate refl ects management 

estimate of the time value of money and the rates specifi c to the unit.

Carrying amount of goodwill allocated to each of the cash generating units is as follows:

CONSOLIDATED

Carrying amount of goodwill 

PARENT

Carrying amount of goodwill 

Infomedia

Total

2008

$’000

8,541

2007

$’000

8,541

2008

$’000

8,541

2007

$’000

8,541

6,026

6,026

6,026

6,026

Key assumptions used in value in use calculations

The following describes each key assumption on which management has based its cash fl ow projections when determining 

the value in use of its cash generating units:

•  The Company will continue to have access to the data supply from automakers over the budgeted period;

•  The Company will not experience any substantial adverse movements in currency exchange rates; 

•  The Company’s research and development program will ensure that the current suite of products remains leading edge;

•  The Company is able to maintain its current gross margins; and

•  The discount rates estimated by management are refl ective of the time value of money.

With regard to the assessment of the value in use of the cash generating units, management believes that no reasonably 

possible change in any of the above key assumptions would cause the carrying value of the unit to materially exceed its 

recoverable amount.

infomedia.com.au  62

Notes to the 
Financial Statements

30 June 2008

Notes

CONSOLIDATED

INFOMEDIA LTD

15. TRADE AND OTHER PAYABLES (CURRENT)

Trade creditors

Other creditors

15(a)

(a) Trade creditors are non-interest bearing and are 
 iiiiinormally settled on 30 day terms.

 iiiiiDue to the short term nature of these payables, their 
 iiiiicarrying value is assumed to approximate their fair value.

16. PROVISIONS (CURRENT)

Employee benefi ts

Provision for non-cancellable surplus lease space 
and other lease incentives

19(a)

17. DEFERRED REVENUE (CURRENT)

Revenue in advance

18. INTERCOMPANY (CURRENT)

Wholly-owned controlled entities

2008

$’000

796

3,030

3,826

1,803

239

2,042

569

569

-

-

2007

$’000

443

2,039

2,482

1,790

494

2,284

506

506

-

-

2008

$’000

592

2,523

3,115

1,142

239

1,381

265

265

1,457

1,457

2007

$’000

139

1,613

1,752

1,118

494

1,612

254

254

-

-

63   infomedia.com.au

Notes to the 

Financial Statements

30 June 2008

Notes

CONSOLIDATED

INFOMEDIA LTD

19. PROVISIONS (NON-CURRENT)

Employee benefi ts

Provision for non-cancellable surplus lease space and other 
lease incentives

Make good provision

19(a)

19(b)

(a) Movement in non-cancellable surplus lease space and 
other lease incentives provision:

Carrying amount at the beginning of the year

Arising during the year

Utilised

Discount rate adjustment

Carrying amount at the end of the year

Current

Non-current

16

The provision for non-cancellable lease space and other 
lease incentives has been made pursuant to the lease 
obligations under contract to the extent that no future 
benefi ts are anticipated.

(b) Movement in make good provision:

Carrying amount at the beginning of the year

Arising during the year

Carrying amount at the end of the year

The provision for make good has been estimated pursuant 
to the Company’s obligation to restore leased premises to 
original condition at the end of the lease term.

2008

$’000

253

619

500

1,372

1,385

-

(634)

107

858

239

619

858

2007

$’000

315

891

500

1,706

1,942

-

(688)

131

1,385

494

891

1,385

2008

$’000

104

619

500

1,223

1,385

-

(634)

107

858

239

619

858

2007

$’000

177

891

500

1,568

1,942

-

(688)

131

1,385

494

891

1,385

500

-

500

500

-

500

500

-

500

500

-

500

infomedia.com.au   64

Notes to the 
Financial Statements

30 June 2008

CONSOLIDATED

INFOMEDIA LTD

20.  CONTRIBUTED EQUITY AND RESERVES

Ordinary shares

2008

$’000

16,368

16,368

2007

$’000

17,738

17,738

2008

$’000

16,368

16,368

2007

$’000

17,738

17,738

Eff  ective 1 July 1998, the Corporations legislation in place abolished the concepts of authorised capital and par value 

shares. Accordingly, the Parent does not have authorised capital or par value in respect of its issued shares. Fully paid 

ordinary shares carry one vote per share and carry the right to dividends.

Movement in ordinary shares on issue:

At 1 July 2006

Employee Options Exercised

At 30 June 2007

Shares repurchased

At 30 June 2008

Notes

Number

$’000

24

325,471,573

499,999

325,971,572

(3,597,966)

322,373,606

17,488

250

17,738

(1,370)

16,368

On 1 April 2008, the Company commenced a share buy back (on market within 10/12 limit).  As at 30 June 2008 the 

Company had repurchased 3,597,966 shares for a total consideration, including brokerage of $1,370,000. 

Capital Management

When managing capital, the Company’s objective is to ensure that the entity continues as a going concern as well as to 

maintain optimal returns to shareholders and benefi ts for other stakeholders.

Subject to the Company’s fi nancial position and future fi nancial performance, the Company’s current dividend policy is to 

distribute, as a franked dividend, in the order of 75-85% of profi t after tax.  

During the 2008 fi nancial year, the Company paid dividends of $12.7 million (2007: $24.4 million). 

The company has no current plans to issue further shares on the market but intends to further reduce the capital structure 

through its share buy back policy.

65   infomedia.com.au

Notes to the 

Financial Statements

20. CONTRIBUTED EQUITY AND RESERVES (CONTINUED)

Employee Option Plan

There were 1,750,000 options issued during the current year at an average exercise price of $0.50. There we no options 

issued during the prior year.

30 June 2008

CONSOLIDATED

INFOMEDIA LTD

Employee 
equity benefits 
reserve

Foreign 
currency 
translation 
reserve

Derivatives 
reserve

Total

Employee 
equity benefits 
reserve

Derivatives 
reserve

Total

$’000

$’000

$’000

$’000

$’000

$’000

$’000

Movement 
in reserves:

At 1 July 2006

Currency translation 
diff  erences

Share based payments

At 30 June 2007

Currency translation 
diff  erences

Share based payments

Derivatives 
marked to market

976

-

47

1,023

-

35

-

34

(79)

-

(45)

(11)

-

-

At 30 June 2008

1,058

(56)

Nature and purpose of reserves

Employee equity benefi ts reserve

-

-

-

-

-

-

626

626

1,010

(79)

47

978

(11)

35

626

1,628

976

-

47

1,023

-

35

-

1,058

-

-

-

-

-

-

626

626

976

-

47

1,023

-

35

626

1,684

This reserve is used to record the value of equity benefi ts provided to employees and Directors as part of their compensation. 

Refer to Note 24 for further details.

Foreign currency translation reserve

The foreign currency translation reserve is used to record exchange diff  erences arising from the translation of the fi nancial 

statements of foreign subsidiaries. It is also used to record the eff  ect of hedging net investments in foreign operations.

Derivatives reserve

The derivatives reserve is used to record the mark to market valuation of forward currency contracts at the balance sheet 

date that are considered eff  ective hedges.

infomedia.com.au   66

Notes to the 
Financial Statements

30 June 2008

CONSOLIDATED

INFOMEDIA LTD

21.  STATEMENT OF CASH FLOWS 

(a)  Reconciliation of profi t after tax to the net cash 

fl ows from operations

Profi t from ordinary activities after income tax expense

Depreciation of non-current assets

Amortisation of non-current assets

Amortisation of employee options

Net (profi t)/loss on sale of business

Other

Changes in assets and liabilities

(Increase)/decrease in trade and other debtors

(Increase)/decrease in inventories

(Increase)/decrease in prepayments

(Increase)/decrease in future income tax benefi t

(Increase)/decrease in deferred development costs

Increase/(decrease) in trade and other creditors

Increase/(decrease) in allowance for doubtful debts

Increase/(decrease) in provision for employee entitlements

Increase/(decrease) in other provisions

Increase/(decrease) in income tax payable

Increase/(decrease) in deferred income tax liability

Increase/(decrease) in revenue in advance

Net cash fl ow from operating activities

(b)  Reconciliation of cash

Cash balance comprises:

– cash at bank

– cash on deposit

2008

$’000

13,066

1,306

2,679

35

-

5

2,264

(30)

(97)

302

(5,993)

1,344

(215)

(49)

(527)

(1,942)

970

63

13,181

2007

$’000

15,294

1,581

1,911

47

(15)

-

415

32

97

348

(3,235)

(1,168)

8

(505)

(270)

2008

$’000

12,114

1,130

2,362

35

-

5

4,391

(6)

(139)

308

2007

$’000

14,497

1,359

1,657

47

76

-

(1,279)

20

144

341

(5,310)

(2,682)

1,363

(105)

(49)

(527)

(917)

23

(485)

(270)

476

777

(151)

(1,180)

(2,091)

639

45

853

11

14,044

14,345

13,633

2,959

11,288

14,247

4,404

11,286

15,690

2,231

11,068

13,299

3,116

10,428

13,544

(c)  Financing facilities available

At  reporting  date,  the  following  fi nancing  facilities  had  been 
negotiated and were available:

Total facilities:

USD13 million multi-currency cash advance facility 

Facilities used at reporting date:

Facilities unused at reporting date:

13,537

-

13,537

15,350

-

15,350

13,537

-

13,537

15,350

-

15,350

67   infomedia.com.au

Notes to the 

Financial Statements

30 June 2008

CONSOLIDATED

INFOMEDIA LTD

22.  SALE OF BUSINESS 

On 1 December 2006, Infomedia sold its Business Systems division 

to an unrelated third party. The components of the disposal were:

2008

$’000

2007

$’000

2008

$’000

2007

$’000

Gross consideration

Net working capital adjustments

Cash proceeds

Net book value of assets and liabilities disposed:

Plant and equipment

Intangible assets

Other net liabilities

Total net assets disposed

Net profi t on sale of business

23.  COMMITMENTS & CONTINGENCIES

(a)  Lease expenditure commitments

   Operating leases (non-cancellable):

Minimum lease payments 

–  not later than one year

–  later than one year and not later than fi ve years

–  aggregate operating lease expenditure contracted 

for at balance date

-

-

-

-

-

-

-

-

1,102

2,802

3,904

1,500

(331)

1,169

540

1,245

(631)

1,154

15

1,540

4,093

5,633

-

-

-

-

-

-

-

-

667

2,344

3,011

150

35

185

512

-

(251)

261

(76)

1,098

3,463

4,561

Operating lease commitments are for offi  ce accommodation both in Australia and abroad.

(b)  Performance Bank Guarantee 

Infomedia Ltd has a performance bank guarantee to a maximum value of $700,000 relating to the lease commitments of its 

corporate headquarters.

(c)  Interlocking Guarantees 

The bank loan drawings have been made pursuant to a multi-currency cash advance facility. The facility has been provided 

on the condition of interlocking guarantees between the Parent entity and its controlled entities (the guarantors).

infomedia.com.au   68

 
 
 
 
 
 
 
 
Notes to the 
Financial Statements

24.  SHARE BASED PAYMENT PLANS

Employee Option Plan

The Employee Option Plan entitles the Company to off  er “eligible employees” options to subscribe for shares in the Company. 

Options will be granted at a nil issue price unless otherwise determined by the Directors of the Company and each option 

enables the holder to subscribe for one share. The exercise price for the options granted will be as specifi ed on the option 

certifi cate or, if not specifi ed, the volume weighted average price for shares of the Company for the fi ve days trading 

immediately before the day on which the options were granted. The options may be exercised in accordance with 

the date determined by the Board, which must be within four years of the option being granted.

Information with respect to the number of options granted under the employee share incentive scheme is as follows:

Notes

2008

2007

Number of options

Weighted average 

exercise price

Number of options

Weighted average 

exercise price

Balance at beginning of year 

 - granted

 - forfeited

 - exercised

Balance at end of year

24(a)

24(b)

24(c)

24(d)

1,300,001

1,750,000

(1,100,001)

-

1,950,000

$0.51

$0.50

$0.43

-

$0.50

1,950,000

-

(150,000)

(499,999)

1,300,001

$0.52

-

$0.75

$0.50

$0.51

(a) Options held at the beginning of the year

The following table summarises information about options held by employees at 1 July 2007.

Number of options

100,000

83,334

666,667

250,000

200,000

Grant date

20/9/2004

8/7/2005

27/10/2005

6/10/2005

16/12/2005

Earliest 
vesting date

Expiry date

Weighted average 
exercise price

20/9/2005

20/9/2007

5/1/2006

5/1/2006

5/1/2006

5/2/2008

5/2/2008

5/2/2008

16/12/2006

16/1/2009

$0.67

$0.50

$0.50

$0.48

$0.49

(b) Options granted during the year

The following table summarises information about options granted during the year.

Number of options

1,000,000

250,000

500,000

Grant date

1/1/2008

1/1/2008

1/5/2008

Earliest 
vesting date

5/1/2009

5/1/2009

1/5/2009

Expiry date

Weighted average 
exercise price

5/2/2011

5/5/2011

13/5/2011

$0.53

$0.53

$0.42

(c) Options exercised during the year

There were no options exercised during the year.

69   infomedia.com.au

Notes to the 

Financial Statements

24. SHARE BASED PAYMENT PLANS (CONTINUED)

(d) Options held at the end of the year

The following table summarises information about options held by employees at 30 June 2008.

Number of options

200,000

1,000,000

250,000

500,000

(e) Other details regarding options

Grant date

Earliest 
vesting date

Expiry date

Weighted average 
exercise price

16/12/2005

16/12/2006

16/1/2009

1/1/2008

1/1/2008

1/5/2008

5/1/2009

5/1/2009

1/5/2009

5/2/2011

5/2/2011

13/5/2011

$0.49

$0.53

$0.53

$0.42

The weighted average fair value of options granted during the year was $0.076 (there were no options granted during the prior year). 

The fair value of the equity-settled options granted under the option plan is estimated as at the grant date using a binomial 

model taking into account the term and conditions upon which the options were granted.

The following table lists the inputs to the model used for the year.

 Dividend yield

 Expected volatility

 Risk free rate

 Option exercise price

 Weighted average share price at grant date

Granted 
1/1/2008

Granted 
1/5/2008

6.0%

30%

6.8%

$0.53

$0.53

7.5%

35%

6.5%

$0.42

$0.42

25.  PENSIONS AND OTHER POST-EMPLOYMENT PLANS

Superannuation Commitments

Contributions are made by the Company in accordance with the relevant statutory requirements. Contributions by 

the Company for the year ended 30 June 2008 were 9% (2007: 9%) of employees’ wages and salaries which are legally 

enforceable in Australia.  The superannuation plans provide accumulation benefi ts.

26. KEY MANAGEMENT PERSONNEL DISCLOSURES

(a) Compensation of Key Management Personnel

(i) Compensation by Category: Key Management Personnel

Short-Term

Post Employment

Other Long-Term

Termination Benefi ts

Share-based Payments

CONSOLIDATED

INFOMEDIA LTD

2008

$

2007

$

2008

$

2007

$

1,769,599

1,868,431

1,371,923

1,101,169

127,198

25,123

-

34,765

129,314

15,442

-

79,839

99,869

11,050

-

32,765

86,179

7,417

-

72,507

1,956,685

2,093,026

1,515,607

1,267,272

infomedia.com.au   70

Notes to the 
Financial Statements

26. KEY MANAGEMENT PERSONNEL DISCLOSURES (CONTINUED)

(b) Option holdings of Key Management Personnel (Consolidated)

30 June 2008

Directors

Gary Martin

Executives

Granted as 
compensation

Options 
exercised

Expired

Balance at 
beginning 
of period

1 July 2007

Balance 
at end of 
period

30 June 
2008

Vested at 30 June 2008

Total

Not 
exercisable

Exercisable

666,667

1,000,000

Michael Bodner

-

500,000

Peter Adams*

Nick Georges

83,334

-

250,000

250,000

Michael Roach

200,000

-

1,200,001

1,750,000

-

-

-

-

-

-

(666,667)

1,000,000

1,000,000

1,000,000

-

500,000

500,000

500,000

(83,334)

-

-

-

(250,000)

250,000

250,000

250,000

-

200,000

200,000

200,000

(1,000,001)

1,950,000

1,950,000

1,950,000

-

-

-

-

-

-

30 June 2007

Balance at 
beginning 
of period

1 July 2006

Directors

Gary Martin

1,000,000

Executives

Peter Adams

Nick Georges

Michael Roach

250,000

250,000

200,000

1,700,000

* Resigned 31 March 2008. 

Granted as 
compensation

Options 
exercised

Net change 
other

Balance 
at end of 
period

30 June 

2007

Vested at 30 June 2007

Total

Not 
exercisable

Exercisable

-

-

-

-

-

(333,333)

(166,666)

-

-

(499,999)

-

-

-

-

-

666,667

666,667

333,334

333,333

83,334

83,334

83,334

-

250,000

250,000

166,667

83,333

200,000

200,000

133,334

66,666

1,200,001

1,200,001

716,669

483,332

71   infomedia.com.au

Notes to the 

Financial Statements

26. KEY MANAGEMENT PERSONNEL DISCLOSURES (CONTINUED)

(c) Shareholdings of Key Management Personnel

30 June 2008

Number of shares held in Infomedia Ltd

Balance 30 June 
2007

Granted as 
compensation

On exercise of 
options

Net change 
other

Balance 30 June 
2008

Directors

Richard Graham

Myer Herszberg

Gary Martin

Frances Hernon

Executives

Andrew Pattinson

Peter Adams*

Nick Georges

Michael Roach

Jonathan Pollard**

Total

30 June 2007

Number of shares held in Infomedia Ltd

Directors

Richard Graham

Myer Herszberg

Gary Martin

Frances Hernon

Executives

Andrew Pattinson

Peter Adams

Nick Georges

Michael Roach

Total

102,204,060

23,421,599

407,590

5,000

2,447,567

100,000

24,421

18,721

1,996

128,630,954

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

100,000

-

-

(60,000)

-

-

-

102,204,060

23,421,599

507,590

5,000

2,447,567

40,000

24,421

18,721

1,996

40,000

128,670,954

Balance 1 July 
2006

Granted as 
compensation

On exercise of 
options

Net change 
other

Balance 30 June 
2007

102,204,060

39,421,599

74,257

5,000

2,447,567

11,421

24,421

18,721

144,207,046

-

-

-

-

-

-

-

-

-

-

-

333,333

-

-

-

102,204,060

(16,000,000)

23,421,599

-

-

-

407,590

5,000

2,447,567

100,000

24,421

18,721

166,666

(78,087)

-

-

-

-

499,999

(16,078,087)

128,628,958

*Resigned 31 March 2008.     ** Appointed 1 April 2008.

All equity transactions with Key Management Personnel other than those arising from the exercise of compensation options and compensation shares 
have been entered into under terms and conditions no more favourable than those the entity would have adopted if dealing at arm’s length.

(d) Loans to Key Management Personnel

There were no loans at the beginning or the end of the reporting period to Key Management Personnel. No loans were 

made available during the reporting period to Key Management Personnel.

(e)  Other transactions and balances with Key Management Personnel (including related entities)

(i)   Infomedia Ltd rented offi  ce space from Richard Graham.  The total rent payments for the year ended 30 June 2008 of 

$nil (2007: $79,209) were on commercial terms.

(ii)  Infomedia Ltd received fi nancial consulting services from Cowoso Capital Pty Limited, a company in which Andrew Moffat is a

Director. The total consulting services paid for the year ended 30 June 2008 of $nil (2007: $57,500) were on commercial terms. 

infomedia.com.au   72

 
 
Notes to the 
Financial Statements

26. KEY MANAGEMENT PERSONNEL DISCLOSURES (CONTINUED)

(iii) Infomedia Ltd sold a painting to Richard Graham. The painting was independently valued and sold on commercial

 terms. The total amount received for the year ended 30 June 2008 was $8,000 (2007: $nil).

CONSOLIDATED

INFOMEDIA LTD

2008

$

2007

$

2008

$

2007

$

27.  AUDITORS REMUNERATION 

Amounts  received  or  due  and  receivable  by  the  auditors  of 

Infomedia Ltd for:

–  an audit or review of the fi nancial report of the entity and any 

other entity in the consolidated entity

199,250

191,900

172,150

165,850

–  other services in relation to the entity and any other entity in the 

consolidated entity

-

-

-

-

199,250

191,900

172,150

165,850

28.  RELATED PARTY DISCLOSURES

Ultimate Parent

Infomedia Ltd is the ultimate Australian parent company.

Wholly-owned group transactions

(a)   An unsecured, interest free loan of $5,002 (2007: $5,002) remains owing from IFM Germany GmbH to Infomedia Ltd. 

(b)   An unsecured, interest free loan of $3,131,065 (2007: $3,131,065) remains owing to Infomedia Investments Pty Limited  

from Infomedia Ltd. 

(c)  An unsecured, interest free loan of $3,202,370 (2007: $2,767,113) remains owing from Datateck Publishing Pty Limited  

to Infomedia Ltd. The loan is repayable in seven days upon demand.  

(d)  An unsecured, interest free loan of $386,219 (2007: $386,219) remains owing from AutoConsulting Pty Limited to  

Infomedia Ltd. The loan is repayable in seven days upon demand.  

(e)  An unsecured, interest free loan of $nil (2007: $59,810) remains owing from IFM Europe Ltd to Infomedia Ltd.  

(f)    An unsecured, interest free loan of $2,455,113 (2007: $nil) remains owing to IFM Europe Ltd from Infomedia Ltd.  

(g)   An unsecured, interest free loan of $536,003 (2007: $1,535,477) remains owing from IFM North America Inc to Infomedia Ltd.  

(h)  During the year a management fee of $480,000 (2007: $480,000) was paid to Datateck Publishing Pty Limited by Infomedia Ltd.

(i)  During the year Infomedia Ltd received $13,543,755 (2007: $13,117,364) from IFM Europe Ltd for intra-group sales.

(j)  During the year Datateck Publishing Pty Limited received $1,090,427 (2007: $746,110) from IFM Europe Ltd for intra-group sales.

(k)  During the year IFM Europe Ltd received $432,071 (2007: $565,934) from Infomedia Ltd for intra-group distribution services.

(l)    During the year Infomedia Ltd received $8,973,238 (2007: $10,363,329) from IFM North America Inc for intra-group sales.

(m)  During the year IFM North America Inc received $501,370 (2007: $554,699) from Infomedia Ltd for intra-group distribution services.

(n)  During the year IFM Europe paid $534,304 (2007: $398,384) to IFM Germany GmbH for intra-group distribution services.

Entity with deemed signifi cant infl uence over the Company 

Wiser Equity Pty Limited, a company in which Richard Graham is a Director, owns 31.1% of the ordinary shares in Infomedia 

Ltd (2007: 30.8%).

73   infomedia.com.au

 
 
 
 
Notes to the 

Financial Statements

Distributors

Corporate Eliminations

Total

Notes

Asia 
Pacifi c

Europe

North 
America

Latin & 
South 
America

Asia 
Pacifi c

$’000

$’000

$’000

$’000

$’000

$’000

$’000

12,022

21,042

14,336

3,669

39,504

(38,842)

51,731

760

52,491

16

146

201

87

15,569

-

16,019

29. SEGMENT INFORMATION

30 June 2008

Business Segments

REVENUE

Segment revenue

Finance revenue

Consolidated revenue

Segment result

Finance revenue

Finance costs

Consolidated profi t before income tax

Income tax expense

4

Consolidated profi t after income tax

Assets

Segment assets

Unallocated assets

Total assets

Liabilities

Segment liabilities

Unallocated liabilities

Total liabilities

Capital Expenditure

Amortisation

Depreciation

-

-

-

-

-

25

1,740

628

748

-

2

-

19

353

-

12

-

28

-

-

-

-

-

-

-

-

-

527

2,679

1,234

760

(107)

16,672

(3,606)

13,066

2,368

42,244

44,612

1,101

10,708

11,809

541

2,679

1,306

-

-

-

-

-

infomedia.com.au   74

Notes to the 
Financial Statements

29. SEGMENT INFORMATION (CONTINUED)

30 June 2007

Business Segments

REVENUE

Segment revenue

Finance revenue

Consolidated revenue

Segment result

Finance revenue

Finance costs

Distributors

Corporate Eliminations

Total

Notes

Asia 
Pacifi c

Europe

North 
America

Latin & 
South 
America

Asia 
Pacifi c

$’000

$’000

$’000

$’000

$’000

$’000

$’000

13,868

20,511

16,344

3,843

41,180

(41,180)

54,566

791

55,357

1,100

88

41

100

18,747

-

20,076

Consolidated profi t before income tax

Income tax expense

4

Consolidated profi t after income tax

Assets

Segment assets

Unallocated assets

Total assets

Liabilities

Segment liabilities

Unallocated liabilities

Total liabilities

Capital Expenditure

Amortisation

Depreciation

-

-

-

-

-

-

31

1,454

-

526

-

604

425

-

8

-

22

-

7

-

28

-

-

-

-

-

-

-

-

-

-

-

858

1,911

1,500

791

(134)

20,733

(5,439)

15,294

1,980

42,872

44,852

1,029

10,921

11,950

873

1,911

1,581

-

-

-

-

-

-

-

Segment products and locations

On 1 December 2006, Infomedia sold its Business Systems division to an unrelated third party. The sale of this division 

made reporting by product segment less meaningful. Consequently management has promoted geography to be its primary 

segment commencing 1 July 2007. The comparative fi gures have been restated accordingly.

Secondary segment information is reported in a distributor and corporate classifi cation. The corporate function designs and owns 

the intellectual property of the products as well as manages head offi  ce functions for the group. The distributors perform the distribu-

tion functions for the group.  The distributors purchase the products from corporate and mark the prices up for resale to customers.

Segment accounting policies

Transfer prices between business segments are set on an arm’s length basis in a manner similar to transactions with third parties. 

Segment revenue and segment result include transfer between business segments. These transfers are eliminated on consolidation.  

Segment accounting polices are the same as the Company’s accounting policies described in Note 2. The geographical 

segment revenue is classifi ed according to customer destination as opposed to the billing source. Geographical assets have 

been classifi ed according to location of the asset.

75   infomedia.com.au

Notes to the 

Financial Statements

30. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s principal fi nancial instruments, other than derivatives, comprise cash and short-term deposits.

The Company has various other fi nancial assets and liabilities such as trade receivables and trade payables, which arise 
directly from its operations. The Company also enters into derivative transactions through forward currency contracts. The 
purpose is to manage the currency risks arising from the Company’s operations. It is, and has been throughout the period 
under review, the Company’s policy that no trading in fi nancial instruments shall be undertaken. The main risks arising 

from the Company’s fi nancial instruments are cash fl ow interest rate risk, liquidity risk, foreign currency risk and credit risk. 

Details of the signifi cant accounting policies and methods adopted, including the criteria for recognition, the basis of 

measurement and the basis on which income and expenses are recognised, in respect of each class of fi nancial asset, 

fi nancial liability and equity instrument are disclosed in Note 2 to the fi nancial statements.

Cash fl ow interest rate risk

The Company’s exposure to the risk of changes in market interest rates relates solely to the Company’s cash holding of 

$14,247,000 (2007: $15,690,000) with a fl oating interest rate.

The Company’s policy is to accept the fl oating interest rate risk with both its cash holdings and bank loans. Cash is held 
primarily with leading Australian banks for periods not exceeding 30 days, therefore any reasonably expected change in 

interest rates (+/- 1%) would not have a signifi cant impact on post tax profi t or equity.

Foreign currency risk

The Company has transactional currency exposures. These exposures mainly arise from the transactional sale of products 
and to a lesser extent the associated cost of sales component relating to these products. As the Company’s product off  erings are 
typically made on a recurring monthly subscription basis, there is a relatively high degree of reliability in estimating a proportion 
of future cash fl ow exposures. Approximately half of the Company’s sales are denominated in United States dollars and 
around one-third of the Company’s sales are denominated in Euro. The Company seeks to mitigate exposure to movements in 

these currencies by entering into forward exchange derivative contracts under an approved hedging policy. 

As a result of the Company’s recent investment in both its European and United States subsidiaries, the Company’s balance 

sheet can be aff  ected by movements in both the Euro and the United States dollar against the Australian dollar. 

At 30 June 2008, the group had the following exposure to USD foreign currency that is not designated in cash fl ow hedges:

Financial Assets

Cash and cash equivalents

Trade and other receivables

Other assets

Financial Liabilities

Trade and other payables

Other liabilities

Net Exposure

CONSOLIDATED

INFOMEDIA LTD

2008

$’000

1,324

2,094

104

3,522

1,107

416

1,523

1,999

2007

$’000

2,819

3,578

135

6,532

1,235

311

1,546

4,986

2008

$’000

1,031

1,940

-

2,971

938

233

1,171

1,800

2007

$’000

2,238

3,722

-

5,960

1,038

82

1,120

4,840

infomedia.com.au  76

Notes to the 
Financial Statements

30. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)

At 30 June 2008, the group had the following exposure to Euro foreign currency that is not designated in cash fl ow hedges:

Financial Assets

Cash and cash equivalents

Trade and other receivables

Other assets

Financial Liabilities

Trade and other payables

Other liabilities

Net Exposure

CONSOLIDATED

INFOMEDIA LTD

2008

$’000

1,432

1,138

13

2,583

714

412

1,126

1,457

2007

$’000

1,301

1,313

34

2,648

372

238

610

2,038

2008

$’000

1,007

-

-

1,007

2,749

-

2,749

(1,742)

2007

$’000

56

804

-

860

6

-

6

854

The following sensitivity is based on the foreign currency risk exposures in existence at the balance sheet date.

At 30 June 2008, had the Australian dollar moved, as illustrated in the table below, with all other variables held constant, 

post tax profi t and equity would have been aff  ected as shown.

Judgements of reasonably possible movements:

Consolidated

AUD/USD +10%

AUD/USD - 15%

AUD/EUR +10%

AUD/EUR - 15%

Parent

AUD/USD +10%

AUD/USD - 15%

AUD/EUR +10%

AUD/EUR - 15%

Post tax profi t

Higher/(Lower)

Equity

Higher/(Lower)

2008

$’000

(127)

210

(93)

153

(115)

189

111

(183)

2007

$’000

(317)

524

(130)

214

(308)

508

(54)

90

2008

$’000

(127)

210

(93)

153

(115)

189

111

(183)

2007

$’000

(317)

524

(130)

214

(308)

508

(54)

90

Management believes the balance date risk exposures are representative of the risk exposure inherent in the 

fi nancial instruments.

Credit risk

The Company’s credit risk with regard to accounts receivable is spread broadly across three automotive groups – manufacturers, 

distributors and dealerships. Receivable balances are monitored on an ongoing basis with the result that the Company’s 

exposure to bad debts is not signifi cant. As the products typically have a monthly life cycle and are priced on a relatively low 

subscription price, the concentration of credit risk is typically low, with automotive manufacturers being the exception. 

77   infomedia.com.au

Notes to the 

Financial Statements

30. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)

With respect to credit risk arising from the other fi nancial assets of the Company, which comprise cash and cash equivalents,

available-for-sale fi nancial assets and certain derivative instruments, the Company’s exposure to credit risk arises from 

default of the counter party, with a maximum exposure equal to the carrying amount of these instruments.

Since the Company trades only with recognised third parties, there is no requirement for collateral.

Liquidity risk

The Company’s exposure to liquidity risk is minimal given the relative strength of the balance sheet and strong cash fl ows 

from operations. 

Given the nature of the Company’s operations and no borrowings, the Company does not have fi xed or contracted payments 

at balance date other than with respect of its cash fl ow hedges which are disclosed at Note 31. Consequently, the remaining 

contractual maturity of the group’s and the parent entity’s fi nancial liabilities is as stated in the balance sheet and is less 

than 60 days. Deferred revenue requires no cash outfl ow.

31. FINANCIAL INSTRUMENTS

Fair values

Set out below is a comparison by category of carrying amounts and fair values of all of the Company’s fi nancial instruments 

recognised in the fi nancial statements. The fair values of derivatives have been calculated by discounting the expected 

future cash fl ows at prevailing interest rates.

CONSOLIDATED

Financial assets

Cash and cash equivalents

Trade and other debtors 

Derivatives

Other fi nancial assets (non-current)

Financial liabilities

Trade and other creditors 

Interest-bearing loans and borrowings

PARENT

Financial assets

Cash and cash equivalents

Trade and other debtors

Derivatives

Intercompany

Other fi nancial assets (non-current)1

Financial liabilities

Trade and other creditors 

Intercompany

Interest-bearing loans and borrowings

Carrying Amount

Fair Value

2008

$’000

14,247

5,220

888

-

3,826

-

2007

$’000

15,690

6,944

-

335

2,482

-

2008

$’000

14,247

5,220

888

-

3,826

-

Carrying Amount

Fair Value

2008

$’000

13,299

2,949

888

-

248

3,115

1,457

-

2007

$’000

13,544

3,818

-

1,623

583

1,752

-

-

2008

$’000

13,299

2,949

888

-

7,004

3,115

1,457

-

2007

$’000

15,690

6,944

-

335

2,482

-

2007

$’000

13,544

3,818

-

1,623

6,150

1,752

-

-

1. Other fi nancial assets for the parent entity include investment in wholly-owned subsidiaries. The fair value of the underlying net assets of the 
subsidiaries is higher than the carrying amount in the parent entity accounts.

infomedia.com.au   78

Notes to the 
Financial Statements

31. FINANCIAL INSTRUMENTS (CONTINUED)

Interest rate risk

The following table sets out the carrying amount, by maturity, of the fi nancial instruments exposed to interest rate risk:

CONSOLIDATED

INFOMEDIA LTD

Less than 
one year 

Two to 
fi ve years 

Greater than 
fi ve years

$’000

$’000

 $’000

Weighted 
average 
eff  ective 
interest rate %

Less than 
one year 

Two to fi ve 
years 

Greater than 
fi ve years 

$’000

$’000

$’000

Weighted 
average 
eff  ective 
interest rate %

YEAR ENDED 
30 JUNE 2008

Floating rate

Cash and cash equivalents

14,247

Interest-bearing liabilities

-

-

-

-

-

6.1

-

13,299

-

-

-

-

-

6.1

-

CONSOLIDATED

INFOMEDIA LTD

Less than 
one year 

Two to 
fi ve years 

Greater than 
fi ve years 

$’000

$’000

$’000

Weighted 
average 
eff  ective 
interest rate %

Less than 
one year 

Two to fi ve 
years 

Greater than 
fi ve years

$’000

$’000

 $’000

Weighted 
average 
eff  ective 
interest rate %

YEAR ENDED
 30 JUNE 2007

Floating rate

Cash and cash equivalents

15,690

Interest-bearing liabilities

-

-

-

-

-

5.7

-

13,544

-

-

-

-

-

5.7

-

Interest on fi nancial instruments classifi ed as fl oating rate is repriced at intervals of less than one year. Interest on fi nancial 

instruments classifi ed as fi xed rate is fi xed until maturity of the instrument. The other fi nancial instruments of the group and 

parent that are not included in the above tables are non-interest bearing and are therefore not subject to interest rate risk.

Derivative contracts

The following table summarises the forward exchange contracts on hand at 30 June 2008. There were no derivative contracts 

on hand at 30 June 2007.

Maturity

Company 
buys

Company 
sells

Exchange 
rate

Company 
buys

Company 
sells

Exchange 
rate

Company sells United States dollars (USD)

$A’000

USD’000

$A’000

USD’000

CONSOLIDATED

INFOMEDIA LTD

Quarter 1 2009 fi nancial year

Quarter 2 2009 fi nancial year

Quarter 3 2009 fi nancial year

Quarter 4 2009 fi nancial year

Company sells Euros (EUR)

Quarter 1 2009 fi nancial year

Quarter 2 2009 fi nancial year

Quarter 3 2009 fi nancial year

Quarter 4 2009 fi nancial year

2,892

1,987

1,656

1,747

$A’000

3,503

2,621

1,735

1,489

2,500

1,700

1,425

1,533

E ’000

2,060

1,544

1,006

872

0.8645

0.8556

0.8605

0.8775

0.5881

0.5891

0.5798

0.5856

2,892

1,987

1,656

1,747

$A’000

3,503

2,621

1,735

1,489

2,500

1,700

1,425

1,533

E ’000

2,060

1,544

1,006

872

0.8645

0.8556

0.8605

0.8775

0.5881

0.5891

0.5798

0.5856

The mark to market valuation of these contracts at 30 June 2008 was $894,000, $888,000 of which were considered 

effectively hedges and booked directly in equity with $6,000 booked to profi t and loss.

32.  SUBSEQUENT EVENTS

There has been no matter or circumstance that has arisen since the end of the fi nancial year that has signifi cantly aff  ected 

the operations of the Company, the results of those operations, or the state of affairs of the Company. 

79   infomedia.com.au

Directors’ Declaration

In accordance with a resolution of the Directors of Infomedia Ltd, I state that:

In the opinion of the Directors:

(a)  the fi nancial statements and notes of the Company and the consolidated entities are in accordance with the 

  Corporations Act 2001, including:

(i)   giving a true and fair view of the Company’s and consolidated entities’ fi nancial position as at 30 June 2008  

and

of their performance for the year ended on that date; and

(ii)   complying with Accounting Standards and the Corporations Regulations 2001; and

(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become  

due and payable.

This declaration has been made after receiving the declarations required to be made to the Directors in accordance 

with section 295A of the Corporations Act 2001 for the fi nancial year ended 30 June 2008. 

On behalf of the Board

Richard David Graham

Chairman

Sydney 

19 August 2008

infomedia.com.au   80

 
 
 
 
 
 
 
 
Independent auditor’s report to the members of Infomedia Ltd

Report on the Financial Report

We have audited the accompanying fi nancial report of Infomedia Limited, which comprises the balance sheet as at 30 June 2008, and the income 
statement, statement of changes in equity and cash fl ow statement for the year ended on that date, a summary of signifi cant accounting policies, 
other explanatory notes 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 fi nancial year.

Directors’ Responsibility for the Financial Report

The directors of the company are responsible for the preparation and fair presentation of the fi nancial report in accordance with the Australian Ac-
counting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing 
and maintaining internal controls relevant to the preparation and fair presentation of the fi nancial report that is free from material misstatement, 
whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the 
circumstances. In Note 2, the directors also state that the fi nancial report, comprising the fi nancial statements and notes, complies with International 
Financial Reporting Standards as issued by the International Accounting Standards Board.

Auditor’s Responsibility

Our responsibility is to express an opinion on the fi nancial report based on our audit. We conducted our audit in accordance with Australian 
Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan 
and perform the audit to obtain reasonable assurance whether the fi nancial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial report. The procedures 
selected depend on our judgment, including the assessment of the risks of material misstatement of the fi nancial report, whether due to fraud or 
error. In making those risk assessments, we consider internal controls relevant to the entity’s preparation and fair presentation of the fi nancial 
report 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 entity’s internal controls. 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 fi nancial report.

We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.

Independence

In conducting our audit we have met the independence requirements of the Corporations Act 2001. We have given to the directors of the company 
a written Auditor’s Independence Declaration, a copy of which is included in the directors’ report.

Auditor’s Opinion

In our opinion:

1. the fi nancial report of Infomedia Limited is in accordance with the Corporations Act 2001, including:

i giving a true and fair view of the fi nancial position of Infomedia Limited and the consolidated entity at 30 June 2008 and of their perform-

ance for the year ended on that date; and

ii complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001.

2. the fi nancial report also complies with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Report on the Remuneration Report

We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2008. 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.

Auditor’s Opinion

In our opinion the Remuneration Report of Infomedia Limited for the year ended 30 June 2008, complies with section 300A of the Corporations 
Act 2001.

Ernst & Young

Liability limited by a scheme approved under
Professional Standards Legislation.

Garry Wayling
Partner
Sydney, 19 August 2008

 
 
 
 
 
 
Corporate Governance

How to Read this Corporate Governance Statement

This Corporate Governance Statement is divided into the following sections:

•  an introduction, providing an overview of Infomedia’s approach to corporate governance;

•  details of the composition of the Board of Directors and its Committee;

•  a discussion of major corporate governance initiatives during the reporting period;

•  a discussion of the major areas where Infomedia Ltd reports under the “if not, why not?” obligation; and

•  a subject based commentary on Infomedia Ltd’s approach to the ASX Corporate Governance Council Guidelines.

Introduction

This Corporate Governance Statement, which is current as at the date of the Directors’ Report, addresses the approach adopted 

by the Company to the ASX Corporate Governance Council’s Second Edition – Revised Corporate Governance Principles and 

Recommendations and has been updated to refl ect the actions taken by the Company since its last annual report.

By way of background, the Board fi rst began its consideration of the Australian Securities Exchange (ASX) Corporate 

Governance Council (CGC) Guidelines during the course of the 2003 fi nancial year. To aid the review process, the Board 

made initial adjustments to the structure of its Committees so that they comprised the Corporate Governance Committee, the 

Audit & Risk Committee and the Remuneration & Nomination Committee. However, in June 2007, the Board requested that 

the then Remuneration & Nomination Committee revisit the question of how the Company could best maintain its corporate 

governance practices in ways that are, given the level of implementation reached, pragmatic and appropriate to its size and 

available resources. These adjustments are discussed in more detail in the section headed “Composition of the Board of 

Directors and Committees” below.

The material set out in this Corporate Governance Statement has been prepared in accordance with the ASX Listing Rules 

and, in particular, the various “Guide(s) to reporting...” included in the ASX Corporate Governance Council’s Corporate 

Governance Principles and Recommendations (Revised Principles and Recommendations). Unless otherwise indicated, 

the measures taken were in place for the whole fi nancial year.                         

Composition of the Board of Directors and Committees 

In June 2007, the Board approved a number of changes to the structure, composition and responsibilities of the Board itself 

and its Committees which continue to this day. These changes include:

(a)  The amalgamation of the Audit & Risk Committee and the Corporate Governance Committee to form a new Audit, Risk

  & Governance Committee; and 

(b) The Board re-assuming the functions of remuneration and nomination and appointing Ms Frances Hernon as Lead

  Non-executive Director for all matters that formerly fell within the ambit of the Remuneration & Nomination Committee.

To coincide with the Company’s fi nancial year and reporting obligations, these changes took effect from 1 July 2007, 

with the exception of Ms Hernon’s appointment to the Audit & Risk Committee, which was effective from 25 June 2007. 

The re-named Audit, Risk and Governance Committee’comprises:

• Andrew Moffat (Chair);

• Myer Herszberg;

• Frances Hernon.

infomedia.com.au   82

 
 
 
Corporate Governance

Major Corporate Governance Initiatives

During the reporting year, the Board continued, through its committee, to monitor the charters, policies and procedures 

adopted by the Company in support of the Revised Principles and Recommendations and remains satisfi ed that the Company’s 

corporate governance practices are consistent with the spirit and intent of the Revised Principles and Recommendations.

As with last year, once again Senior Management, with the assistance of external consultants, examined the effectiveness 

of Infomedia’s risk management initiatives. This process, once again, bridged the gap between the FY2008 Risk Management 

Plan and the FY2009 Risk Management Plan. The FY2009 Risk Management Plan was considered and,  as appropriate, 

approved by both the Audit, Risk & Governance Committee and the Board in August 2008.

At its 18 and 19 June 2008 meeting, the Board considered and accepted recommendations from the Audit, Risk & Governance 

Committee regarding changes to the Share Trading Policy. The Committee’s recommendations were based around the practical 

issue of allowing Directors, offi  cers and employees some fl exibility with respect to when they could buy or sell the Company’s 

securities provided that they were not in possession of “price sensitive information”.  The main change was to remove the 

concept of a “trading window” and replace it with the concept of a “blackout period”.  A summary of the Company’s Share 

Trading Policy has been updated and forms part of the various charters and policies included on Infomedia’s website.

“If Not, Why Not?”

ASX CGC Recommendation 2.1 – A majority of the board should be independent directors

ASX CGC Recommendation 2.2 – The chair should be an independent director

ASX CGC Recommendation 2.3 – The roles of chair and chief executive offi  cer should not be exercised by the same individual

Traditionally, the Board has applied an Executive Director/Non-executive Director classifi cation to its members and is 

currently comprised of four Non-executive Directors and one Executive Director.

The role of Chairman and Chief Executive Offi  cer has, as contemplated by ASX CGC Recommendation 2.3, been split since 31 

December 2004. Despite having retired within the past four years as an executive, Mr Richard Graham remains the Company’s 

largest shareholder and is, therefore, not considered by the Board as an independent Chairman. Accordingly, the Company 

does not fully comply with ASX CGC Recommendation 2.2 that the chairperson be an independent director. Nevertheless, 

the Board remains of the view that its independence as a whole is not compromised and that it is in the best interests of the 

Company for Mr Graham to continue as Chairman. The Board believes that during this stage of growth, Infomedia is best 

served by keeping a strong focus on the development and implementation of strategic platforms. It believes that Mr Graham’s 

industry knowledge, both technological and automotive, uniquely positions him for the kind of strategic thinking required of 

the Chairman. As suggested in the commentary accompanying ASX CGC Recommendation 2.2, under the Board Charter, Board 

members may elect a lead Non-executive Director to chair informal discussion meetings of Non-executive Directors.

Mr Gary Martin, in his role as Director and Chief Executive Offi  cer, is also not considered by the Board as independent. 

However, two of the Company’s continuing Directors, Ms Hernon and Mr Andrew Moffat, meet the objective criteria for 

independence. A third Non-executive Director, Mr Myer Herszberg, whilst being a major shareholder, is considered by the 

Board, having regard to the quantitative, qualitative and cumulative criteria, to operate independently and objectively.

The Board is fi rmly of the view that good, or sound, leadership and judgement and ethical practice are driven by the culture 

of an organisation, not process. Infomedia has long had a strong and well developed informal culture of corporate governance 

and compliance. Originally grounded in proprietary company roots, this culture has now become more formalised as is 

appropriate for a publicly listed company.

83   infomedia.com.au

Corporate Governance

The Board’s approach fi nds support in this view in other corporate governance commentary, including in the observations 

the Royal Commissioner, Mr Justice Owen, who in his offi  cial report into the collapse of HIH stated that the critical issue is 

not so much whether, on objective criteria, the director is independent but rather whether he or she is subjectively capable 

of exercising independent judgement. Mr Justice Owen also said that, “...I am not convinced that a mandatory requirement 

for boards to have a majority of non-executive directors is either necessary or desirable. In most cases it will be desirable 

(assuming the non-executive directors are truly independent) but fl exibility ought to be maintained to enable corporations 

to be structured in a way that best suits their circumstances.”

Accordingly, the Board believes it comprises a majority of independent Directors and so complies with ASX CGC Recommendation 2.1.

This independence will continue to be reviewed periodically by the Board to ensure its continued good practice in this area. 

Ultimately, however, the Board accepts that its members remain in offi  ce upon the vote of the Company’s shareholders and 

that they may elect members to the Board regardless of their standing, independent or otherwise.

In order to facilitate the discharge of their duties, including in respect of independent decision making, the Board confi rmed 

in April 2004 its policy for Directors obtaining independent professional advice at the expense of the Company.

COMMENTARY

The Board and Senior Management – Structure and Remuneration

ASX CGC Principle 1 – Lay solid foundations for management and oversight

Recognise and publish the respective roles and responsibilities of board and management

ASX CGC Principle 2 – Structure the board to add value

Have a board of an effective composition, size and commitment to adequately discharge its responsibilities and duties

ASX CGC Principle 8 – Remunerate fairly and responsibly

Ensure that the level and composition of remuneration is suffi  cient and reasonable and that its relationship to performance is clear

The Company’s Constitution requires a minimum of three and a maximum of seven Directors, of whom at least two must 

ordinarily be resident in Australia. Under the Company’s Constitution, one third of the Directors, and any other Director not 

in such one third who has held offi  ce for three years or more, other than the Chief Executive Offi  cer, must retire by rotation 

each year. If eligible, the retiring Directors may offer themselves for re-election.

The Infomedia Board currently comprises fi ve Directors and details of the names, terms of offi  ce, committee memberships, 

meeting attendance record, skills, experience and expertise of each, along with photographs, appear in the Directors’ Report.

Since listing on the ASX in August 2000 in particular, the composition and size of the Infomedia Board has been shaped by its 

Constitution and the contribution Directors are able to make, both individually and collectively. An emphasis has been, and 

through the interaction of the Board and the Lead Non-executive Director for all matters that formerly fell within the ambit of 

the Remuneration & Nomination Committee, will continue to be, placed on promoting, among other attributes, an appropriate 

mix of relevant skills, independence, expertise, business knowledge and executive and non-executive participation.

ASX CGC Recommendation 1.1 – Establish the functions reserved to the board and those delegated to management and disclose 

those functions 

A formal Charter of the Board of Directors was adopted in early July 2004, following careful and considered deliberation by 

both the then Corporate Governance Committee and the Board itself. As noted in the introduction above, the priority was 

to document an appropriate division of Board and management responsibilities. The Board’s focus is on the Company’s 

infomedia.com.au   84

Corporate Governance

objectives, determining the strategy for achieving those objectives and setting the overall policy framework within which 

the business of the Company is conducted whilst ensuring that the Company operates in accordance with good management 

and governance practices. A summary of the Charter of the Board can be found on the Company’s website.

ASX CGC Recommendation 2.1 – A majority of the board should be independent directors

ASX CGC Recommendation 2.2 – The chairperson should be an independent director

ASX CGC Recommendation 2.3 – The roles of chairperson and chief executive offi  cer should not be exercised by the same individual

Commentary on these three ASX CGC Recommendations is found under the heading “If Not, Why Not?” above.

ASX CGC Recommendation 2.4 – Establish a nomination committee

ASX CGC Recommendation 8.1 – Establish a remuneration committee

As mentioned above, since July 2007 the Board has re-assumed the functions of remuneration and nomination and then appointed 

a Lead Non-executive Director for all matters that formerly fell within the ambit of the Remuneration & Nomination Committee. 

The Lead Non-executive Director and the Board, as appropriate, consider all Board nominees, having regard to both the 

nominee’s individual merits and overall Board composition. In each case, the recommendations of the Lead Non-executive 

Director are considered by the Board and, where a new appointment has been made, put to the shareholders at the next 

annual general meeting.

The Company has formalised a policy for the nomination and induction of Directors, which was adopted by the Board in early 

July 2005. A summary of the Director Nomination & Induction Policy is available on the Infomedia website. 

The Company no longer strictly complies with ASX CGC Recommendations 2.4 and 8.1 that it should establish remuneration 

and nomination committees. Nevertheless, the Board is of the view that, given its size and available resources, the 

appointment of a Lead Non-executive Director for all matters that formerly fell within the ambit of its Remuneration & 

Nomination Committee is a better utilisation of its resources.

ASX CGC Recommendation 8.3 – Provide the information indicated in the Guide to reporting on Principle 8

Upon recommendation of the then Remuneration & Nomination Committee, a Remuneration and Performance Evaluation 

Policy for Directors and Senior Executives was adopted by the Board in July 2004. The Policy outlines the criteria for 

assessing the performance of the Board as a whole, the Directors as individuals, the Chairman of the Board and the senior 

executives, and aims to provide a framework for structuring total remuneration that will facilitate both the short and long 

term growth and success of the Company, that is competitive with the market place and that is demonstrably linked to the 

Company’s overall performance as discussed more fully in the Remuneration Report included within the Directors’ Report.

The Company also has two equity based incentive plans: an Employee Option Plan, applicable to certain eligible employees, 

including senior executives and Executive Directors and an Employee Share Plan, applicable to all permanent employees 

of one or more years of service, including senior executives but excluding both Executive and Non-executive Directors. 

These plans were established prior to Infomedia’s listing in August 2000 in accordance with both the Corporations Act and 

the ASX Listing Rules and were disclosed in the 14 July 2000 prospectus. As a result of the altered accounting treatment 

required under the Australian equivalents to International Financial Reporting Standards, in June 2005 the Board resolved 

to indefi nitely suspend the Employee Share Plan with effect immediately following the scheduled July 2005 allocation.

Given this background, there is no present intention to obtain shareholder approval of the Employee Option Plan (or, if 

re-activated, the Employee Share Plan) as proposed by ASX CGC Recommendation 9.4 unless otherwise required by the 

Corporations Act and/or the ASX Listing Rules.

Further detail of senior executive remuneration under these plans is included in the Remuneration Report.

85   infomedia.com.au

Corporate Governance

ASX CGC Recommendation 8.2 – Clearly distinguish the structure of non-executive directors’ remuneration from that of executive 

directors and senior management

In formulating the Remuneration and Performance Evaluation Policy for Directors and Senior Executives, regard was had to 

both market practice and to the then best practice guidance provided in the ASX CGC Commentary.

In contrast to Executive Directors, Non-executive Directors are remunerated by way of fees and statutory superannuation 

contributions only: they do not receive any additional retirement benefi ts and nor do they currently participate in any 

of the Company’s incentive arrangements. Non-executive Directors have previously received options, but this practice 

was reconsidered with the introduction of the Remuneration and Performance Evaluation Policy for Directors and Senior 

Executives in FY2004. The Board will continue to monitor this issue as it subscribes to the view that, for smaller companies, 

option based remuneration may be an appropriate method of remunerating Non-executive Directors when accompanied 

by an appropriate framework and proper disclosure.

Business Conduct

ASX CGC Principle 3 – Promote ethical and responsible decision making

Actively promote ethical and responsible decision making

ASX CGC Recommendation 3.1 – Establish a code of conduct and disclose the code or a summary of the code

A formal Code of Conduct was adopted in April 2004 following careful and considered deliberation by both the then 

Corporate Governance Committee and the Board itself.

The Infomedia Code of Conduct applies to all Infomedia personnel, including Directors, senior executives and employees 

and was developed having regard to the ASX CGC Commentary accompanying ASX CGC Recommendation 3.1. Whilst 

Infomedia has long held and emphasised personal integrity, respect and ethical business practices as core tenets, the 

Infomedia Code of Conduct strengthens the Company’s commitment to them by further articulating the cultural values 

which permeate the Company and better guiding dealings with all non-shareholder stakeholders.

Under the direction of the then Corporate Governance Committee, the Code of Conduct was refi ned during FY2006, primarily 

to formalise guidelines for the resolution of internal grievances. The soundings conducted as part of the review process 

served to promote greater awareness and use of enhanced procedures for seeking guidance where areas of concern exist, 

for the management of grievance issues and for the notifi cation of matters which potentially involve a compliance or business 

risk element. A summary of the Code of Conduct can be found on the Company’s website. 

ASX CGC Recommendation 3.2 – Establish a policy concerning trading in company securities by directors, senior executives and 

employees, and disclose the policy or a summary of the policy

A formal Policy on Share Trading by Company Directors, offi  cers and employees was originally established in October 2001 

and was reviewed, amended and adopted by the Infomedia Board in April 2004, upon the recommendation of the then 

Corporate Governance Committee. It was further reviewed in the last quarter of FY2006 and more recently in May 2008. 

On 29 May 2008, a revised Policy on Securities Trading by Company Directors, Offi  cers and Employees was adopted by 

the Board and a summary was placed on the Company’s website. Further commentary on this point can be found in the 

“Major Corporate Governance Initiatives” section, above.

Financial Reporting and Risk Management

ASX CGC Principle 4 – Safeguard integrity in fi nancial reporting. Have a structure to independently verify and safeguard the 

integrity of the company’s fi nancial reporting

infomedia.com.au  86

Corporate Governance

ASX CGC Recommendation 4.1 – Establish an audit committee

ASX CGC Recommendation 4.2 – The audit committee should be structured so that it: consists only of non-executive directors; consists 

of a majority of independent directors; is chaired by an independent chair, who is not chair of the board; has at least three members

During this reporting period Infomedia complied with the ASX CGC Recommendations accompanying ASX CGC 

Recommendation 4.2, relating to audit committee composition, operation and responsibility. 

ASX CGC Recommendation 4.3 – The audit committee should have a formal charter

ASX CGC Recommendation 4.3 – Provide the information indicated in the Guide to reporting on Principle 4

Infomedia originally established an audit committee prior to its listing on the ASX in August 2000. The Board continues to 

fi rmly believe that the Audit, Risk & Governance Committee is of “...suffi  cient size, independence and technical expertise 

to discharge its mandate eff  ectively”. As noted in the discussion around ASX CGC Recommendation 2.1 above, although 

traditionally the Board has applied an Executive Director/Non-executive Director classifi cation to its membership, the 

Board believes that the Audit, Risk & Governance Committee’s members meet an objective assessment of quantitative and 

qualitative criteria for independence. Therefore, the Committee meets the requirements for an independent Chairman and 

a majority of independent Directors under ASX CGC Recommendation 4.2.

A formal Audit & Risk Committee Charter was originally adopted in 2000 and an amended version approved by the Board 

in April 2004 following careful and considered deliberation by both the then Audit & Risk Committee and the Board itself. 

Consistent with the Company’s policy, a summary of the Charter was placed on the Company’s website during FY2005.

The current Audit, Risk & Governance Committee acknowledges the importance of external auditor independence and has 

formalised procedures for the rotation of engagement partners. The Company’s external auditor’s engagement partner was 

rotated in FY2007.

ASX CGC Principle 7 – Recognise and manage risk. Establish a sound system of risk oversight and management and internal control

ASX CGC Recommendation 7.1 – The board or appropriate committee should establish policies on risk oversight and management

Upon the recommendation of the then Audit & Risk Committee, the Board adopted the Risk Management Policy in July 

2004. During the FY2006 reporting period, the then Audit & Risk Committee reviewed it closely and recommended that the 

Board adopt a revised Risk Management Policy and a Risk Management Plan which would better promote the establishment 

and implementation of an effective and appropriate risk management framework for the Company.

The revised Risk Management Policy allocates oversight responsibility to the Board and the Audit, Risk & Governance 

Committee whilst the establishment of risk management procedures, compliance and control rests with the Chief Executive 

Offi  cer, Chief Financial Offi  cer and Senior Executives and, at a daily operating level, with departmental managers, line 

managers and individuals as part of regular business conduct.

Work undertaken during FY2008 examining the effectiveness of Infomedia’s risk management initiatives is discussed under 

the heading “Major Corporate Governance Initiatives” above.

A summary of the Company’s Risk Management Policy is available on the Company’s website; however, given the strategic 

nature of its content, details of the Company’s Risk Management Plan have not been made public.

ASX CGC Recommendation 7.2 – Require management to design and implement the risk management and internal control system 

to manage the company’s material business risks and report to it on whether those risks are being managed eff  ectively. The board 

should disclose that management has reported to it as to the eff  ectiveness of the company’s management of its material business risks 

ASX CGC Recommendation 7.3 – Disclose whether it has received assurances from the chief executive offi  cer (or equivalent) and 

the chief fi nancial offi  cer (or equivalent) that the declaration provided in accordance with section 295A of the Corporations 

87   infomedia.com.au

Corporate Governance

Act is founded on a sound system of risk management and internal control and that the system is operating effectively in all 

material respects in relation to fi nancial reporting risks

The Company’s fi nancial reporting obligations for FY2008 have been fulfi lled, as they have in previous years, in accordance 

with applicable legal and accounting requirements: see the fi nancial statements and notes contained in the Directors’ 

Report and the Independent Audit Report.

Having acted in accordance with the Board endorsed revised Risk Management Policy and Board endorsed Risk Management 

Plan, the Chief Executive Offi  cer and the Chief Financial Offi  cer have provided the Board with the necessary certifi cations 

under ASX CGC Recommendation 7.3 and the Corporations Act.

ASX CGC Principle 5 – Make timely and balanced disclosure

Promote timely and balanced disclosure of all material matters concerning the company

ASX CGC Recommendation 5.1 – Establish written policies and procedures designed to ensure compliance with ASX Listing Rule 

disclosure requirements and to ensure accountability at a senior management level for that compliance

ASX CGC Recommendation 5.2 – Provide the information indicated in the Guide to reporting on Principle 5 

A Market Disclosure Policy was adopted by the Board in April 2004 following careful and considered deliberation by both 

the then Corporate Governance Committee and the Board itself. The Market Disclosure Policy was developed having regard 

to the ASX CGC Commentary and suggested content accompanying ASX CGC Recommendation 5.1.

A review of the Market Disclosure Policy was conducted by the then Corporate Governance Committee as part of its review 

calendar in the fi nal quarter of FY2006. The review concluded that both the continuous and periodic reporting obligations 

imposed under the ASX Listing Rules, and the Company’s internal procedures in respect of them, were well understood by 

Senior Management. A summary of the Market Disclosure Policy can be found on the Company’s website.

Shareholders

ASX CGC Principle 6 – Respect the rights of the shareholders

Respect the rights of shareholders and facilitate the effective exercise of those rights

ASX CGC Recommendation 6.1 – Design and disclose a communications strategy to promote effective communication with 

shareholders and encourage effective participation at general meetings

ASX CGC Recommendation 6.2 – Provide the information in the Guide to reporting on Principle 6

Through a series of initiatives, Infomedia continues to demonstrate its commitment to promoting eff  ective communication 

with all shareholders. Such initiatives include the continued development of the Company website, where this Corporate 

Governance Statement, summaries of the various corporate governance charters, policies and guidelines, annual, half yearly 

and quarterly reports, a synopsis of the Infomedia business model, media releases, achievements, share price information and 

the July 2000 prospectus, along with the FY2008 Notice of Annual General Meeting and Explanatory Statement are all available.

Infomedia has considered and adopted as appropriate to its circumstances, the various means of using electronic 

communications effectively as described in the commentary following ASX CGC Recommendation 6.1.

Shareholder participation at general meetings is encouraged and Infomedia’s auditor, Ernst & Young, will attend the Annual 

General Meeting and be available to answer shareholder questions.

infomedia.com.au   88

Additional 
Information

TOP 20 HOLDERS OF SHARES AS AT 29 AUGUST 2008

Name

WISER EQUITY PTY LTD

YARRAGENE PTY LIMITED

J P MORGAN NOMINEES AUSTRALIA LIMITED

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED

MR ANDREW PATTINSON

NATIONAL NOMINEES LIMITED

TOM HADLEY ENTERPRISES PTY LTD

CITICORP NOMINEES PTY LIMITED

BRAZIL FARMING PTY LTD

MR PETER ALEXANDER BROWN

WISER CENTRE PTY LTD WISER CENTRE P/L S/F A/C

MR RICHARD GRAHAM

MR JOHN KENDALL PERRETT

MR CRAIG EVAN COLEMAN

APPLIED SENSORS PTY LTD MULLIGAN PENSION FUND A/C

WOODCLIFF SUPER PTY LTD

ELISE NOMINEES PTY LIMITED

MR YET KWONG CHIANG   MRS HO YUK LIN CHIANG

BONGAT PTY LTD BONGAT SUPER FUND A/C

HOAD HOLDINGS PTY LTD HOAD SUPER FUND A/C

Shares

% of Total

Rank

100,277,501

31.29

23,421,599

12,687,711

7,642,661

2,447,567

2,345,629

2,000,000

1,744,398

1,250,000

1,000,000

1,000,000

926,559

800,000

505,000

500,000

500,000

490,000

459,205

450,000

410,000

7.31

3.96

2.38

0.76

0.73

0.62

0.54

0.39

0.31

0.31

0.29

0.25

0.16

0.16

0.16

0.15

0.14

0.14

0.13

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

Range

1 – 1,000

1,001 – 5,000

5,001 – 10,000

10,001 – 100,000

100,001 – 9,999,999,999

Total

RANGE OF SHARES AS AT 29 AUGUST 2008

Shareholders

Shares held

% of total

472

2,500

1,901

3,374

209

8,456

388,825

8,099,434

15,955,077

100,681,636

195,329,443

0.12

2.53

4.98

31.42

60.95

320,454,415

100.00

As at 30 August 2008 there were 590 shareholders less than a marketable parcel of shares (minimum parcel $500.00).

89   infomedia.com.au

Corporate Directory

Infomedia Ltd

357 Warringah Road

Frenchs Forest NSW 2086

ABN 63 003 326 243

Telephone: (02) 9454 1500

Facsimile: (02) 9454 1844

Directors

Richard Graham – Chairman of the Board

Gary Martin – Chief Executive Offi  cer and Executive Director

Frances Hernon

Myer Herszberg

Andrew Moffat

Company Secretary

Nick Georges

Acting Chief Financial Officer

Jonathan Pollard

Registered Office

357 Warringah Road

Frenchs Forest NSW 2086

Auditors

Ernst & Young

Ernst & Young Centre

680 George Street

Sydney  NSW  2000

Share Registry

Computershare Registry Services Pty Ltd

GPO Box 7045

Sydney  NSW  1115

Lawyers

Thomson Playford Lawyers

Level 25 Australia Square Tower

264 George Street

Sydney NSW  2000

Internet Address

infomedia.com.au 

Infomedia and Microcat are registered trademarks, and LIVE, MARKET, Auto PartsBridge and 
Superservice Menus are all trademarks of Infomedia Ltd for its business processes, software and 
documentation products. All other trademarks are the property of their respective owners.

infomedia.com.au    90