Infomedia Annual Report 2012

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FY2012 Annual Report · Infomedia

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Ltd
ABN 63 003 326 243

ANNUAL REPORT 2012

TABLE OF CONTENTS

RESULTS AT A GLANCE

CHAIRMAN’S LETTER

CFO REPORT

SUPERSERVICE STRATEGY

SUPERSERVICE PRODUCTS

DEVELOPMENT AND NETWORK SOLUTIONS

CUSTOMER PERSPECTIVE

DIRECTORS

DIRECTORS’ REPORT

AUDITOR’S INDEPENDENCE DECLARATION

STATEMENT OF COMPREHENSIVE INCOME

STATEMENT OF FINANCIAL POSITION

STATEMENT OF CASH FLOWS

STATEMENT OF CHANGES IN EQUITY

NOTES TO THE FINANCIAL STATEMENTS

DIRECTORS’ DECLARATION

INDEPENDENT AUDIT REPORT

CORPORATE GOVERNANCE

ADDITIONAL INFORMATION

CORPORATE DIRECTORY

© 2012 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.

RESULTS AT A GLANCE

Year

Revenue* ($m)

NPAT ($m)

EBITDA ($m)

DPS (¢)

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

21.1

7.7

12.6

2.7

34.5

12.8

20.0

2.5

43.8

13.4

20.9

2.75

61.8

18.3

30.6

3.4

69.6

20.7

35.7

3.8

59.1

5.5

27.3

3.4

55.6

18.1

25.8

11.0

54.6

15.3

23.6

4.0

51.7

13.1

20.0

3.2

51.3

10.5

15.9

2.8

2010

50.5

11.3

18.2

2.4

2011

48.9

10.0

18.8

2.4

2012

48.3

8.5

17.7

2.4

* Revenue includes currency hedging gains/losses

INFOMEDIA.COM.AU 1.

CHAIRMAN’S LETTER

2. INFOMEDIA.COM.AU

CHAIRMAN’S LETTER

“OUR SALES REVENUE GREW TO A TOTAL OF
$45.7M AGAINST $44.1M FOR THE PREVIOUS
FINANCIAL YEAR. THE INCREASE WAS DRIVEN
BY GROWTH IN ALL PRODUCT LINES”

FELLOW SHAREHOLDERS, THIS HAS BEEN A YEAR OF

consumers direct access to the parts and service process,

PROGRESS FOR OUR COMPANY. NOTWITHSTANDING

we have expanded the deﬁ nition from “anywhere, any

THE CHALLENGING GLOBAL ECONOMIC ENVIRONMENT,

time” to “any way you want to work”.

OUR PRODUCT SALES GREW, OUR ONLINE DELIVERY

INFRASTRUCTURE AND SYSTEMS STRENGTHENED,

WE GALVANIZED OUR BUSINESS WITH THE

ACQUISITION OF DIFFERENT ASPECT SOFTWARE

IN THE UK (DAS), AND WE RE-SIGNED MAJOR DATA

LICENSE AGREEMENTS WITH GENERAL MOTORS,

HYUNDAI MOBIS AND THE FORD MOTOR COMPANY.

Last year I wrote to you about the One World mindset

that many of our OE licensors have adopted for their

aftersales operations. In the One World view, the OE

customer experience is seamless no matter where in the

world it takes place. I said this had been a long-held view

of Infomedia and has inﬂ uenced the way we approached

product development from the very beginning. The value

of this as a business philosophy continues to be borne

out as the business environment becomes ever more

connected, 24/7, and interdependent.

All of these elements are now coalescing into the

redesign of our various applications and services into a

new product family – Superservice. Later in this report,

you will see how our creative teams have structured a

strong product solution suite that dealers can operate

as standalone components or integrate with other

IT systems. Superservice is the ﬁ rst automotive ﬁ xed

operations product-line of its kind that provides global

uniformity for automakers in the key areas of electronic

parts catalogue, service menus, vehicle health check,

Our acquisition of DAS provided us with more product

depth and an innovative suite of software products which

have application to both the existing Infomedia customer

base as well as new markets.

With our One World approach to operations, DAS has already

become integrated into the Infomedia company core, and is

making important contributions and bringing new synergies

to our product-line and European team. I am conﬁ dent it will

positively impact our results in the years ahead.

The renewals of our agreements with Hyundai MOBIS

(Hyundai and KIA), General Motors and Ford point to

the long and special relationships between these great

companies and Infomedia. As we prepare for our 23rd

year in automotive software leadership, we remain

committed to contributing to their success, and to the

success of all our customers, through the provision of our

innovative, aff ordable, market leading solutions.

online booking, and service history registration.

In FY2013, Infomedia will release more OE product

Superservice combines realtime data, interoperability,

business analytics and more to give a consistent, intuitive

user experience. There is nothing like it in the market.

Already, we have clients across the globe processing

service estimates on a common online platform and using

our common online Electronic Parts Catalogue (EPC).

Last year I wrote that our vision was to expand the depth

implementations which are aimed directly at improving

the sales and service experience with our One World

approach in mind. These include Superservice for

Chrysler, General Motors and Toyota in the USA, Microcat

LIVE for Toyota in Great Britain, and more products for

release in Russia, China and Latin America. I fully expect

these to make a notable ﬁ nancial contribution.

of our products and make them ubiquitous around the

As you are aware, the majority of our revenues are

world. By building solutions for the dealer that also allow

denominated in US dollars or Euros, and despite our

INFOMEDIA.COM.AU 3.

CHAIRMAN’S LETTER

active hedging approach, we still feel the impact of the

As our online product usage accelerates and as our sales

strong Australian dollar on our reported ﬁ nancial results.

approach includes more site licenses and subscription

AUD cash ﬂ ows from operations reduced from $11.3m (in

packages, reporting our subscriptions under our previous

the previous corresponding period) to $9.7m primarily

single-unit methodology isn’t as informative as it once

due to currency impacts and similarly, net proﬁ t was

was. Consequently, we have devised a new approach

reduced by $1.6m.

that better represents our product subscription levels.

However despite the forex handicap, our sales revenue

At the bottom of the next page there are two charts. The

grew to a total of $45.7m against $44.1m for the previous

ﬁ rst is the single-unit subscription method as historically

ﬁ nancial year. The increase was driven by growth in all

reported from 2000 – 2011. The second shows our

product-lines including $1.2m of sales obtained through

new single-subscription-equivalents (SSE) approach

the acquisition of DAS. All product-lines saw constant

to reporting recurring subscriptions. 2011 ﬁ gures have

currency sales growth during the 2012 ﬁ nancial year with

been restated as SSE to allow for a meaningful 2011

revenue from Superservice products being the major

– 2012 comparison. As a result you’ll see that we are

contributor, increasing by $2.7m.

now reporting that our total SSE subscriptions are over

4. INFOMEDIA.COM.AU

CHAIRMAN’S LETTER

70,000 – an increase of 4,889 or 7.5% in FY2012. At the

industry now wants. And, the recurring subscription

individual product level, EPC subscriptions grew by 712

revenue model we pioneered 23 years ago is the

and Superservice subscriptions grew by 4,177. I think

preferred software licensing model of the industry today.

this validates that the Company’s long-term product

investment strategy is being realised.

The investor market is also again recognising our

fundamental ﬁ nancial strengths: no debt; year on year

For the 13th year in succession the Directors issued

underlying sales growth; great workforce; reliable

dividends. The ﬁ nal fully franked dividend payment of 1.37

dividends, free cash ﬂ ow and the ability to acquire and

cents, together with the fully franked interim dividend of

absorb accretive acquisition opportunities. There’s

1.03 cents, resulted in a fully franked dividend of 2.4 cents

no telling when the AUD will peak, but when it does

for the full year. This payment is consistent with that paid

the underlying economic growth performance of the

in FY2011.

company will become obvious.

In August 2011 my fellow Directors and I were delighted

For the year ahead we will continue to expand the depth

to welcome Geoff Henderson back to the Infomedia

of our product lines and the deployment of our entire

Board. Geoff brings vast experience in the automotive

Superservice Suite. We will build further interoperability

industry through his many years as a senior executive at

and greater business intelligence into our products as

Ford Australia coupled with signiﬁ cant understanding of

we do so. And we will continue to expand into the BRIC

Infomedia. Geoff is Chair of the Audit, Risk and Corporate

markets as well as Africa and the Middle East.

Governance Committee, and I look forward to his

valuable contribution in the years ahead.

In closing I want to reaffi rm that Infomedia’s main goal is

straightforward: to contribute to our customers’ success.

I believe this year the market once again began to

By so doing, we will continue our own success and deliver

recognise the underlying investment values inherent in

value to our shareholders. I commend this Annual Report

Infomedia’s business, IP assets, management team and

to you, and look forward to seeing you at the Annual

overall IFM story. That resilience is even more evident

General Meeting at our headquarters in Frenchs Forest

now than it was 13 years ago when the company ﬁ rst

on November 8th if you are able to attend in person.

listed. We have withstood extraordinary global economic

downturns and a massive foreign exchange handicap.

Yet, today we are stronger, brighter and better placed

than ever. We are ahead of our competitors in making

the transition from disc to cloud based computing. We

have made the move from being a disc-based application

RICHARD GRAHAM

provider to being a ‘Cloud’ based solution provider the

Executive Chairman

SINGLE SUBSCRIPTIONS

SINGLE SUBSCRIPTION EQUIVALENTS

75,000

60,000

45,000

30,000

15,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

75,000

60,000

45,000

30,000

15,000

FY2011

FY2012

INFOMEDIA.COM.AU 5.

CFO REPORT

“DESPITE CHALLENGING GLOBAL
ECONOMIC CONDITIONS, IN CONSTANT
CURRENCY TERMS, OPERATIONAL
PERFORMANCE IMPROVED BY $1.5M
IN FY2012 OVER FY2011.”

FOR THE 2012 FINANCIAL YEAR (FY2012) INFOMEDIA

FY2011, there was an increase of $3.5m over FY2011

LTD (INFOMEDIA) ACHIEVED SALES REVENUE (SALES)

Sales. $1.2m of these were derived from the acquisition.

OF $45.7M AND NET PROFIT AFTER TAX (PROFIT) OF

$8.5M. THIS COMPARES TO FINANCIAL YEAR 2011

(FY2011) WHERE SALES TOTALLED $44.1M AND PROFIT

WAS $10.0M. OPERATING CASHFLOW DECREASED BY

$1.6M TO $9.7M.

Operational costs in constant currency increased

$2.0m in FY2012 as the Company invested in hosting

infrastructure to support increasing demand for its online

products, worked on integrating the newly purchased

subsidiary into its core business and also invested in

As previously reported, a fully franked ﬁ nal dividend

headcount to manage the growth in Sales.

of 1.37 cents was paid to shareholders of record at 5

September 2012, bringing the total franked dividends for

the year to 2.4 cents. This represents a payout ratio of

86% of Proﬁ t. At 30 June 2012, the Company remained

It means despite challenging global economic conditions,

in constant currency terms, operational performance

improved by $1.5m in FY2012 over FY2011.

debt free, with $6.6m in cash on the balance sheet.

2. THE IMPACT OF FOREIGN EXCHANGE RATES

THE KEY DRIVERS

In analysing the headline FY2012 Sales and Proﬁ t

As with many exporters, the Company has borne the

impacts of the escalating Australian dollar. Although the

foreign currency theme has been a constant in analysing

numbers compared with FY2011, the following three key

our results in recent times, the impact on the FY2012

drivers stand out:

results is again a signiﬁ cant factor.

1. Performance in the currency that the sale takes place in;

The AUD strengthened on average a further 6% during

2. The impact of foreign exchange rates; and

3. Capitalisation and Amortisation of our Research &

Development costs.

1. OPERATIONAL PERFORMANCE

IN CONSTANT CURRENCY

As primarily an exporter, the majority of the Company’s

sales are made in US Dollars (USD) and Euros (EUR) with

the remainder in Australian Dollars (AUD). Sales in the

natural currencies of USD, EUR and AUD all increased

during FY2012. The main driver of sales growth was an

increase in revenue related to the Superservice product

range. This comprised of Superservice Menus revenue

growth which continues to be well received around the

globe and Superservice Triage revenue that was derived

from the acquisition of Diff erent Aspect Software Ltd

(DAS) on 2 September 2011. Viewing Sales in constant

currency terms i.e. translating the Sales into AUD at the

FY2012 against both the USD and EUR. This was on

the back of a 31% increase against the USD and a 22%

increase against the EUR from FY2005 to FY2011.

The Company maintains a hedging program that has

seen positive hedging gains in both FY2011 and FY2012.

However, despite this, the adverse foreign exchange

impact translating overseas revenues consumed

virtually all of the $3.5m constant currency sales growth

mentioned in point 1 above.

3. R&D CAPITALISATION AND AMORTISATION

The Company capitalises qualifying costs while a

product is being developed. In some cases a product

could be in development for a number of years and

these costs build up and are held on the balance sheet.

Once a product is released to the market for sale, the

Company then releases those costs into the P&L in the

form of amortisation over future periods. See note 2(k)

to the Financial Report for further information on these

same foreign currency rates as those that occurred in

accounting policies.

6. INFOMEDIA.COM.AU

CFO REPORT

“LOOKING FORWARD, THE COMPANY
ANTICIPATES FURTHER SALES AND
SUBSCRIPTION GROWTH IN NATURAL
CURRENCIES AND ALSO EXPECTS TO REPORT
GROWTH IN ACTUAL AND REPORTED REVENUE.”

The Company continued to invest in the development

FY2011. The combined eff ect of those factors is a net

of its next generation products during FY2012. Microcat

reduction in proﬁ t of AUD$1.5m year on year.

LIVE, Superservice Menus and the new Superservice

Triage all received signiﬁ cant investment during the year

THE YEAR AHEAD

and capitalisation increased $1.2m. With the continued

Looking forward, the Company anticipates further sales

release of the new online products, the amortisation of

and subscription growth in natural currencies and

development costs increased. Also, the acquisition of DAS

also expects to report growth in actual AUD reported

during the year created an additional $1.6m of intangible

revenue. The Company expects the continued strength

assets that the Company commenced amortising during

of the Australian dollar to dampen reported results

the year. Consequently the total amortisation charge

and camouﬂ age underlying growth. Signiﬁ cantly, an

increased $0.9m compared with FY2011.

PUTTING THE PIECES TOGETHER

increase in the amortisation charge of approximately

$2m is expected as we commercialise more products

and continue to expense the intangible assets from the

This ‘waterfall’ chart visually demonstrates how these

acquisition. Accordingly, the Company has provided

factors have impacted the results.

guidance that it anticipates its 2013 ﬁ nancial year sales

The chart starts on the left side with a bar representing

the proﬁ t reported for FY2011. Then we see how sales

growth adds $3.5m and operational cost increases

off sets this by $2.0m in constant currencies. There is a

$3.4m reduction due to the impact of foreign exchange

rates on overseas revenues and a reduction in net

expense of $0.2m due to the impact of capitalisation and

revenue to be between $47m and $50m, and proﬁ t to

be between $8m and $9m.

amortisation. Changes in tax, interest and other non-

operational items combine for a net $0.2m saving over

JONATHAN POLLARD

Chief Financial Offi cer

INFOMEDIA.COM.AU 7.

SUPERSERVICE – A STRATEGY FOR FUTURE GROWTH

“OUR CORE BRAND PROMISE OF PROVIDING

PRECISION TOOLS THAT INCREASE

DEALERSHIP PRODUCTIVITY AND PROFITABILITY

HAS BEEN THE FOUNDATION OF INFOMEDIA’S

GLOBAL COMPETITIVE POSITIONING.”

DURING THE LAST 12 MONTHS WE HAVE CONTINUED

the main reasons for customers defecting from a brand

TO EVOLVE OUR PRODUCT AND BRAND STRATEGY

dealer to the aftermarket.

WITH THE AIM OF STRENGTHENING INFOMEDIA’S

LEADERSHIP POSITION IN THE MARKETPLACE.

WHILE OUR CORE MICROCAT® AND SUPERSERVICE

MENUS™ BRANDS HAVE CONTINUED TO ANCHOR

OUR PRODUCT-LINE, WE CONTINUALLY EVALUATE

EXTERNAL MARKET DRIVERS AND OUR OWN PRODUCT

STRATEGIES TO ENSURE OUR SOLUTIONS REMAIN

CUTTING EDGE, RELEVANT AND RESPONSIVE TO

THE NEEDS OF AUTOMAKERS (OE), DISTRIBUTORS

AND DEALERSHIPS.

Our core brand promise of providing precision

software tools that increase dealership productivity

and proﬁ tability has been the foundation of Infomedia’s

global competitive positioning. This brand promise is

supported by extensive market knowledge, innovative IP,

and easy to use software that enhances automation and

relationship building to help create a great vehicle

owner experience.

Dealers are increasingly looking for solutions to give

them an advantage against their aftermarket service

and parts competitors. In today’s challenging economic

environment, OE loyalty programs and refurbished

waiting rooms with designer coff ee machines are simply

not enough to deliver on customer expectations. Industry

research points to a lack of transparency in service

pricing and customer scepticism about service advice as

In considering how to manage our product portfolio for

the future, we researched the market to identify trends

and analyse market segments where Infomedia’s core

competencies could ﬁ ll new or latent dealer needs. From

this we’ve gained insights into new and innovative ways

to generate increased value beyond incremental growth.

Our analysis has provided critical knowledge to create a

stronger product direction that continues to build on the

innovative heritage and goodwill of our company.

That strategy is for our product-lines to work as a system

of related solutions, which share a common technology

platform and are interoperable. In Richard’s introduction

he discussed our vision for product expansion and

ubiquity; we’re now conﬁ dent we have the product

strategy and technology platform to achieve this vision.

We intuitively commenced on this path a few years

ago by integrating our ﬂ agship Microcat® LIVE™ and

Superservice Menus™ (SSM) products, allowing service

and parts staff to transfer VIN and parts data from one

product to the other, realising immediate and obvious

productivity gains. Having achieved these synergies

within our own products, we acquired Diff erent Aspect

and incorporated several new solutions into our portfolio.

The Superservice Triage™ vehicle health check (VHC)

solution was of strategic importance, allowing us to

integrate our Superservice Menus technology to create

the most powerful VHC solution available today. This

type of integration approach positions the Superservice

solution suite as truly unique in a crowded marketplace

where ‘me too’ products struggle to fulﬁ l the needs of the

OE dealerships.

The marketing framework for our solutions going forward

is the Superservice™ brand; a clever mix of innovative

technology and relationship building sales processes.

Superservice is the commercial realisation of the

Microcat.Network concept, promoting interoperability and

8. INFOMEDIA.COM.AU

SUPERSERVICE – A STRATEGY FOR FUTURE GROWTH

business ﬂ exibility with products that support the users in

exception. Dealerships must react quickly to serve and

the way they want to work. We are using this brand-mark

retain the new generation of shoppers. They need

to springboard into new and evolving opportunities and

to be where their customers are – online and mobile.

growth segments within the global automotive industry.

Superservice supports these trends. Our solutions

As our technology continues to evolve we will position

deliver value beyond a dealership’s four walls, extending

Superservice as the preferred aftersales solution suite

convenience, accurate information and self-service

for dealerships around the globe.

directly to their customers.

In terms of messaging, we have chosen a tone that

In the following pages I am proud to share our new

is understood and supported by dealers globally.

marketing collateral for the Superservice suite. This work

Superservice is a powerful set of aftersales solutions

represents part of the launch kit for Superservice in the

that can integrate with other IT systems or operate stand

US and Asia Paciﬁ c markets. The kit speaks directly to

alone; supporting each dealer to create processes that

the needs and desires of the dealerships – building

suit their business environment. The Superservice suite

trust, performance and proﬁ ts. The new integrated brand

takes dealerships beyond data and technical function,

platform includes a new logo, iconography for each

delivering accurate information and selling processes that

product in the suite, updated photography and visual

promote customer engagement and trust. Information is

assets, a new multi-language website and User Interface

delivered in a way that dealerships and their customers

that any dealership can access 24/7 with product

want it. Superservice helps position dealership staff as

information, dealer training, videos and pricing. (Visit

valued problem-solvers in the eyes of the customer.

www.Superservice.com)

It improves productivity within dealerships, provides

greater control over the selling process and increases

customer retention.

I’m conﬁ dent that introducing the new Superservice

branded suite of products will make a signiﬁ cant and

positive impact on the way dealerships empower their

Underpinning the Superservice framework is product

staff and interact with their customers. I believe it will

technology that enables Infomedia to build distinctive

also provide sustained business growth opportunities

products and capabilities by reusing core assets across

for Infomedia.

the product range. These core assets are a key to

Infomedia’s competitive strategy. They include design

architecture, proprietary production systems, source

code, online infrastructure and considerable localisation

expertise. Uniform architecture enables Infomedia to

eff ectively develop new product solutions to increase

our market penetration.

The Internet has revolutionised how people purchase

goods and services and dealership customers are no

PETER PETROVSKI

Director of Product Strategy

menus™
Precision Service
Quoting

triage™
Multi-point
Inspection

insight™
Real-time
CSI Survey

connect™
Online Booking
and Quotation

EPC™
Microcat LIVE®
OE Parts Catalog

INFOMEDIA.COM.AU 9.

SUPERSERVICE – A STRATEGY FOR FUTURE GROWTH

G E N U I N E S E R V I C E A D V A N TA G E

SERVICE SOLUTIONS THAT
BUILD TRUST,
PERFORMANCE
AND PROFITS.

solution overview

WE ALL KNOW SERVICE EXCELLENCE,
IS CRITICALLY IMPORTANT TO THE PROFITABILITY OF A DEALERSHIP.

GENUINE DEALERSHIP SERVICE OPERATIONS AND SERVICE ADVISORS
are under constant pressure to provide superior service, beat the competitive
landscape, and increase productivity, proﬁ tability and customer retention. That’s
why Superservice™ was developed.

TO MAKE A LASTING DIFFERENCE, superior service needs to be more than
just perception – it needs to be reality. Superservice is the value advantage
that helps OE Aftersales teams advance their performance and economic goals
to a new level. It will change what you believed was possible to achieve with
your current resources. Superservice gives genuine OE dealers a distinctive and
powerful advantage. It provides a robust suite of targeted information tools that
can standalone or interconnect to empower the entire service chain process.
Superservice is an ingenious marriage of information technology and customer
sales psychology that is making a considerable diff erence for thousands of
dealers around the world.

WITH HIGHLY ACCURATE OE INFORMATION AND INTUITIVE USER
INTERFACES, Superservice is a set of precision sales empowerment tools that
build certainty and trust inside and outside the dealership, improving customer
retention in an increasingly competitive and cost-conscious world.

SUPERSERVICE INTEGRATED SOLUTIONS ARE SIMPLE TO USE
and provide the critical information dealers need to do their job quickly and
effi ciently, while leaving customers feeling better informed, charged fairly
and delighted with their dealer relationship. Superservice strengthens the
service advisor’s value, productivity and professional esteem in the eyes of the
service customer, and helps management with better front-of-shop customer
engagement and back-of-shop operational performance and metrics.

ROVIDE:
OUR ONLINE TOOLS PROVIDE:

■ Precision Service Quoting

■ Multi-point Inspection
(with real-time costing)

■ Self-service Appointment
Booking and Quoting

■ CSI Surveying

■ Lost Business Recovery

■ Service Sales Statistics

■ OE Parts Identiﬁ cation

nnnnn aaaaandndndndnd dddddetetetetetaiaiaiaiailllll
All with true OE VIN precision and detail

IF YOU FEEL THERE IS MORE
POTENTIAL IN YOUR BUSINESS THAN
YOU’RE GETTING TODAY
if you believe that accuracy, certainty and
transparency are what your service customers
value; if you think your service processes have
productivity gains to be made; and if you believe
you could win back lost business if you had
a more eff ective way to manage it, then your
dealership is ready for Superservice.

Superservice Menus™ – VIN-speciﬁ c Precision Quoting spares customers and service advisors
the frustration and hassle caused by quoting mistakes for service and repair operations. VIN-precise
OE Menus free staff to quote and sell with conﬁ dence, creating customer certainty and trust, giving
customers a sense of control, improving customer satisfaction and helping to maintain proﬁ t margins,
all while increasing sales of genuine parts and labor.

Superservice Triage™ – Tablet-based OE multi-point inspection (eMPI) that builds service
revenue and customer trust by engaging customers in the service quotation process, providing an OE
and VIN-speciﬁ c check-sheet process and instantaneous pricing of identiﬁ ed work – labor, parts and
sundries. Triage’s statistics and reporting suite increases insights to improve sales techniques, recover
deferred or lost work, develop service marketing campaigns and assess personnel performance.

Superservice Insight™ – A user-friendly, tablet-based customer survey tool that processes
feedback while it is being given. Instantaneous feedback gives management the opportunity
to remedy an adverse opinion before the customer leaves the dealership, resulting in higher CSI
scores. Insight’s unlimited survey capacity allows marketing-oriented departments to gain a range
of customer views. In-built CSI analytics gives Ops management better information for business
decisions and staff assessment.

Superservice Connect™ – An online appointment system that integrates transparently into a
dealership’s current website. Connect provides customer convenience and dealership productivity.
Instead of waiting for business hours to call and conﬁ rm an appointment, customers simply log on
at their convenience and choose an available time that suits their schedule. When they identify a
standard service or repair for the appointment, Connect can also give them a VIN-precise quote.

Superservice Register™ – A secure online database that records the comprehensive service
and repair history for OE vehicles. Register provides dealerships and vehicle owners secure and
trusted information about the service history of vehicles. This assists dealerships in automating
accurate service advice and analytics. It also enhances the resale value of customers’ vehicles by
making service histories transportable.

Superservice EPC™ – An online OE electronic parts catalog that provides fast and accurate
VIN-based interpretation. EPC has powerful search functions and an intuitive, user-friendly interface
that helps boost ﬁ xed operations’ effi ciency and proﬁ tability. It can operate as a standalone POS
for counter sales or seamlessly integrate with other Superservice tools to facilitate automated
parts identiﬁ cation and pricing, so you can provide even faster, more effi cient customer service.
(Not currently available for GM.)

Now launching Superservice for:

SERVICE AND
PARTS SALES
SOLUTION
SUITE

SUPER SERVICE IS MORE THAN
PERCEPTION – IT’S REALITY.
It’s a better, more productive,
more proﬁ table way of doing
business. It’s win–win.
It’s a direct path to future sales.

10. INFOMEDIA.COM.AU

SUPERSERVICE – A STRATEGY FOR FUTURE GROWTH

G E N U I N E S E R V I C E A D VA N TA G E

PRECISION ESTIMATING
RETAINS
CUSTOMERS
AND
SELLS SERVICE

LOSING CUSTOMERS TO THE AFTERMARKET,
IS NO LONGER INEVITABLE.

WHEN A SERVICE QUOTE AND A SERVICE INVOICE DON’T MATCH,
it erodes customer trust and dealership proﬁ tability. It contributes to
the high fall-off of customer service retention rates that are accepted as
“normal” after the second or third year of vehicle ownership.

THE SUPERSERVICE™ QUOTING ADVANTAGE
Superservice Menus™ is the professional online OE licensed system
whose service quotation process enhances service customer
retention and staff productivity. It off ers a service edge to OE dealers
by signiﬁ cantly improving customer satisfaction, and increasing sales
of genuine parts and labor. It does this by addressing three essential
fundamentals of a successful service quotation process:
Accuracy, Certainty and Trust.

OVERCOMING THE CHALLENGE OF TIME
Accurately detailed, professionally presented and competitively priced
service estimates and quotations are essential to increasing service
customer retention rates, as well as ensuring that you reach your service
proﬁ t targets. But doing that takes more time than most service advisors
have – or their time-challenged customers are willing to give. That’s why
we created Superservice Menus – a powerful online program that helps
your service team generate precise, genuine VIN-speciﬁ c service quotes
that include parts, labor, ﬂ uids, shop supplies and pricing – fast.

CONFIDENCE, CERTAINTY AND CONTROL
Superservice Menus is the premier precision quoting system for OE
dealer service and repair operations globally. It presents information
in plain, easy-to-understand language that deepens customers’
understanding and gives them a sense of being in control in an
otherwise unfamiliar situation. Your estimates can be provided in
English, Spanish or French Canadian to suit your customers’ needs.

The competitively priced quote is detailed and shows them exactly
what they will receive and pay for. Superservice Menus’ intuitive
design, its depth of accurate OE speciﬁ c information and its customer
sales psychology reinforces customer trust and builds dealership
service proﬁ tability, quote after quote.

The use of wireless tablet computers adds to the friendliness and
convenience of customers’ service experience. Your staff can also
use their existing desktop computers to easily enter information
directly into the online system. Everything about the suite of
Superservice™ solutions, including Menus, provides accuracy you
and your customers can count on, consistent process controls that
are easy for staff to use, and online operation that makes them fast,
hassle-free and aff ordable to operate.

PRECISION
SERVICE
QUOTING

INTINTINTINTINTEGREGREGREGREGRATEATEATEATEATEDDDDD
INTEGRATED

Superservice Menus covers all scheduled service maintenance operations and
over 300 popular repair operations for models dating back 10 years. The list
of repairs has been carefully researched and prepared. Operation details are
presented in an easy-to-view format with ﬂ exibility for dealer editing if required.
All aspects of the job are included. The consistent operation codes and
descriptions are easy to remember across all models.

Its 3-step approach is very easy to use, highly intuitive and can be put to use
within minutes of the initial setup. It is accessible online 24/7. There is no special
hardware or software to install or maintain in the dealership - it’s ready to use
anywhere, anytime - on-site or remotely. Dealers of any size can have it up and
running quickly, and at an aff ordable cost.

Superservice Menus integrates with leading DMS systems. It also integrates
with other Superservice tools including Superservice Triage™ (eMPI) and
Superservice Insight™ (eCSI). This allows dealers to create their own unique and
powerful service-selling processes – processes that can leverage their local OE
service advantage into even greater sales and greater customer satisfaction.

AFFORDABLE WINNING ADVANTAGE

Dealership Management love Superservice Menus because it boosts employee
productivity, provides precision estimates that increase service sales and proﬁ ts,
and builds customer satisfaction, loyalty and retention. Service Advisors love it
because it increases their billable throughput and enhances their professional
esteem in the eyes of their customers. And customers love Superservice Menus
because it makes estimates clear and dependable. It helps them see genuine
OE service as an investment in their vehicle, not an expense. All told, that is a
winning service advantage.

If you believe you can increase service customer loyalty by delivering a service
experience that starts by providing accuracy, certainty and value; if you believe
your service business has greater potential for growth and proﬁ t; and if you are
serious about beating customer attrition to the aftermarket, then
Superservice Menus is for you!

Now launching Superservice Menus for:

ACCURATE, DETAILED,
PROFESSIONALLY PRESENTED
and competitively priced service
quotations are essential
in increasing service customer
retention rates.

INFOMEDIA.COM.AU 11.

SUPERSERVICE – A STRATEGY FOR FUTURE GROWTH

G E N U I N E S E R V I C E A D VA N TA G E

HEALTH CHECKS MAXIMIZE
CUSTOMER
SATISFACTION
AND
PROFITS

EVERY VEHICLE THAT ENTERS YOUR SHOP,
FOR ONE REPAIR WILL OFTEN NEED ANOTHER.

IF A SERVICE CUSTOMER IS CALLED WITH ADDITIONAL REPAIR
RECOMMENDATIONS AFTER THEIR CAR IS ON THE LIFT, they feel
vulnerable, get frustrated and mark down their satisfaction even if the
service was necessary and carried out well. They can feel they are not
in control or are being taken advantage of.

YOUR COMPETITIVE EDGE – Superservice Triage™ is an online service
selling solution that maximizes upsell service acceptance and increases
customer satisfaction. It merges precision OE information, service advisor
multi-point inspection, and customer sales psychology to transform the
service sales process. It fosters customer involvement, awareness and
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a sense of “being in control of the situation,” from which they can make
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informed decisions about their vehicle’s servicing.

CUSTOMERS’ INVOLVEMENT AND
CUSTOMERS’ INVOLVEMENT
CERTAINTY IN THE INSPECT
CERTAINTY IN THE INSPECTION PROCESS
INSTILLS TRUST and conﬁ dence in their
INSTILLS TRUST anananananddddd cococococonﬁnﬁnﬁnﬁnﬁddddd
seseseseservrvrvrvrviciciciciceeeee adadadadadvivivivivisososososor.rr.r.r. TTTTThihihihihiss s ss leleleleleadadadadadssss tototototo
service advisor. This leads to larger service
ororororordededededer rr rr auauauauauthththththorororororizizizizizatatatatatioioioioionsnsnsnsns ooooonnnnn thththththeeeee
order authorizations on the spot, and
whwhwhwhwhenenenenen ffffololololollololololoweweweweweddddd upupupupup lllllatatatatatererererer... SuSuSuSuSu
when followed up later. Superservice
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Triage addresses three essential buyer
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prerequisites: Information, Involvement
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and Control.

Camera functionality allows documentation
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of of of of reprepreprepairairairairs ts ts ts to bo bo bo be pe pe pe perferferferformormormormed.ed.ed.ed.
of repairs to be performed.

PRECISION, PROCESS, AND PARTICIPATION
Superservice Triage enables service advisors to identify, record, and
track speciﬁ c service lane diagnoses and instantly deliver an easy-
to-understand report to the customer. The process begins with the
technician conducting an OE and VIN-speciﬁ c multi-point vehicle
inspection – a “triage.” Using an easy-to-use tablet computer, the
inspection can be performed in minutes. When Triage is integrated with
Superservice Menus™, parts, labor, ﬂ uids, shop supplies, and pricing are
instantly available. This creates a powerful information selling advantage
that maximizes immediate repair order acceptances and authorizations.

THE FAST INSPECTION AND REPORTING PROCESS means the
service advisor can immediately discuss the identiﬁ ed repairs with their
customers. They can discuss the reasoning or consequences of doing
the repairs now rather than later. If a customer isn’t able to stay for the
inspection, the triage report can be emailed to them. In either case, the
service advisor provides customers with an informative, fully detailed,
and professionally presented report, which forms the basis of any
follow-up discussions. The report can be provided in English, Spanish or
French Canadian to suit the customers’ needs.

Now launching Superservice Triage for:

INFORMATION FOR GREATER
PROFITABILITY AND PRODUCTIVITY
Superservice Triage provides instantaneous and comprehensive
analytics that signiﬁ cantly improve service sales closing. When used
as intended, it has a proven track record of increasing revenue,
proﬁ tability and customer satisfaction ratings. It makes personnel
more productive and service advisors more eff ective.

It monitors, tracks and reports on identiﬁ ed work, immediate
customer acceptances, and follow-up acceptances. Its easy-to-use
performance appraisal reports help service management increase
parts and labor sales. Reports are easy to interpret and allow
comparison between current performance and previous time periods.
They can be based on various sales metrics including:

• Number of Inspection Reports Created

• Sales and Conversion Rates

• Dollars Identiﬁ ed and Sold

• Jobs Sold on Follow-Up

• Advisor Performance

• Technician Performance

• Percentages Sold / Declined / Deferred

• Averages Sold by Advisor / Tech / Customer

• Lost Sales

AN’TN’TN’T’T SESESESELLLLLLLL SERSERSERSERVICVICVICVICE TE TE TE THATHATHATHAT ISISISISN’TN’TN’TN T
YOU CAN’T SELL SERVICE THAT ISN’T
IDENTIFIED OR FOLLOWED-UP

Superservice Triage is speciﬁ cally designed for the job of repair identiﬁ cation and sales closure.
Customers will often ﬁ nd reasons to defer recommended repairs on the day of service, but with
Superservice Triage the revenue opportunity is not lost. Superservice Triage stores and organizes
deferred work so customers can be contacted at a future date for follow-up. Service advisors are
empowered to make follow-up calls with conﬁ dence, knowing the customer has received a professional
inspection report detailing safety and performance related repairs. The courteous and timely contact
demonstrates care and concern before potential issues become a safety or more costly ﬁ nancial burden
to the customer. The follow-up process helps to build customer-relationships while maximizing revenue
opportunities that would otherwise be lost to the competition.

IMMEDIATELY GROW PROFITS,
PRODUCTIVITY AND SATISFACTION

With Superservice Triage, there is no wasted time or lost productivity. It generates a color-coded
inspection report that’s clear and easy to understand, and helps engage customers in the service
process. It is helpful in identifying additional service requirements, and provides information to help
the service advisor show customers why doing service today can save them money and avoid stress
later. Superservice Triage provides compelling information that increases the chances of closing service
sales, improving customer retention, and increasing ROI.

There is no special hardware or software to install or maintain in the dealership – it’s ready to use
anywhere, anytime – on-site or remotely. Dealers of any size can have it up and running quickly, at
an aff ordable cost.

THE SUPERSERVICE TRIAGE ADVANTAGE

BEFORE SUPERSERVICE TRIAGE

WITH SUPERSERVICE TRIAGE

■ Slow, manual paper or DMS-based inspection checklists

(cid:2) Specialized Triage inspection system – professional, fast and easy to use

■ Customer experience and relationship isn’t the focus

(cid:2) Engages customer in the inspection process, to create certainty and trust

■ Low value of identiﬁ ed work per inspection

(cid:2) Increased parts & labor sales per Triage inspection

■ Low sales conversion rates

■ Manual pricing of parts & labor

■ Low productivity process

(cid:2) Better closing techniques – maximize ROI

(cid:2) Automatic pricing of identiﬁ ed work – parts, labor, ﬂ uids, supplies and surcharges

(cid:2) Improved accountability for advisors and technicians

■ Low completion rate of identiﬁ ed work

(cid:2) Frequently high authorization and completion rate of identiﬁ ed work

■ Process doesn’t provide consistent user experience

(cid:2) Disciplined and professional approach for every RO

■ No easy way to analyze inspection and sales performance

(cid:2) Real-time performance reporting on eff ectiveness of inspections and advisors

■ Diffi cult to manage work not immediately authorized

(cid:2) Manages follow-up of deferred work for future sales follow-up

12. INFOMEDIA.COM.AU

VEHICLE
HEALTH
CHECK

SUPERSERVICE – A STRATEGY FOR FUTURE GROWTH

G E N U I N E S E R V I C E A D VA N TA G E

SURVEY SOLUTIONS FOR
CUSTOMER
FEEDBACK
AND
IMPROVED
RETENTION

HEARING CUSTOMER COMPLIMENTS MAKES YOU FEEL GOOD,
HEARING THEIR CRITICISMS MAKES YOU MONEY.

MOST CUSTOMERS DON’T PROACTIVELY COMPLAIN ABOUT
SERVICE EXPERIENCES THAT DON’T MEET THEIR EXPECTATIONS –
they just go somewhere else next time. You can no longer rely on a smile
or a polite word to mean customers are satisﬁ ed. Without an unbiased and
eff ective method to hear the customer’s voice, you are essentially deaf to it.

INCREASING CUSTOMER RETENTION
Superservice InsightTM is a customer-friendly tablet computer based survey
solution that processes customer’s experience feedback as it is given.
Instant feedback gives management the opportunity to remedy adverse
customer opinion before they leave the dealership, resulting in higher
CSI scores. Insight’s unlimited survey capacity allows marketing-oriented
departments to gain a range of customer views. In-built CSI analytics gives
management better information for business planning and improvement.

Documenting customer satisfaction before the transaction is closed
out is an act of reaffi rming the value placed on the relationship,
and acknowledging the customer’s control in it. Superservice Insight
facilitates key relationship building blocks: Listening,
Acknowledgement and Appreciation.

CUSTOMER SATISFACTION ADVANTAGE
Superservice Insight helps engage customers to do what they love
to do – give their opinions – and do it in a way that can be tailored
to the service operation they just undertook. Friendly and eff ective
feedback collection is the ﬁ rst step in monetizing the customer’s voice.
Customers want to be heard and know that their remarks – positive or
negative – were listened to by someone who cares. When they are
critical, they want to know their next experience will improve.

With Insight, customers provide answers to the service experience
questions you want to track. This generally occurs while the customer
is in the dealership to collect the vehicle. Superservice Insight can alert
a nominated manager or supervisor of strongly critical feedback as
soon as the customer has put it into the tablet. This allows the manager
to approach the customer with concern to improve their experience
before leaving the dealership. That has the obvious beneﬁ t of showing
them that their satisfaction is the priority. It also increases the likelihood
that comments entered into a subsequent CSI survey conducted by the
OE or into an online forum will be more positive.

Now launching Superservice Insight for:

REAL-TIME
CUSTOMER
SATISFACTION
SURVEY

CUSCUSCUSCUSTOMTOMTOMTOMERERERER VOIVOIVOIVOICECECECE U– U– U USESESESE ITITITIT OROROROR LOSLOSLOSLOSE IE IE IE ITTTT
CUSTOMER VOICE – USE IT OR LOSE IT

Traditional manual and ad hoc ways of trying to hear the “voice of the customer”
through exit surveys tend, by their nature, to be short term, patchy and
ineff ective. Rarely is there suffi cient time and resources in the dealership to
analyze printed surveys and verbal comments. Without good processing and
analysis, the customer “feedback gold” doesn’t get mined. Superservice Insight
eliminates all those traditional shortcomings and provides actionable intelligence
about your customers’ needs.

It has been designed speciﬁ cally for the motor trade. It is ﬂ exible and eff ective
in dealers of all sizes, all regions and varying marketing capabilities. Customer
surveys can be conducted in English, Spanish, and French Canadian, so that
language is not a barrier to hearing the customer’s voice.

Superservice Insight is customizable. It can be tailored to the customer, vehicle
or the type of service. Its administrative center provides all the tools to:

• Create Custom Surveys
• Modify Surveys
• Manage Survey Inventory
• Manage Survey Use

• Store and Export Data
• Analyze Feedback, and
• Print from a Comprehensive

Suite of Reports

There is no special hardware or software to install or maintain in the
dealership – it’s ready to use anywhere, anytime – on-site or remotely.
Dealers of any size can have it up and running quickly, and at an
aff ordable price.

YOU CAN’T FIX A PROBLEM YOU
DON’T KNOW ABOUT

The modern dealership is a complex business with many people who
engage with its customers. Even with the best personnel, it can happen
that a customer can have a sub-optimal experience. Superservice Insight’s
tablet-based surveys give management immediate intelligence into the
customers’ service experience. Their perceptions – whether good or critical
– are available and stored as they are given. As those results are analyzed,
management will see the dealership through the eyes of their customers. They
will learn of staff and processes that are valued by the customer, as well as
those that need improvement or change.

MEASURING AND MAINTAINING
SATISFACTION

Dealers love Superservice Insight because it gives them a competitive
advantage and an edge. It helps increase customer retention by providing
real-time, actionable information that can be used to improve service
levels. By supplying speciﬁ c customer information, it can also reveal missed
sales and service opportunities. Superservice Insight empowers your staff ,
improves accountability and control and can dramatically improve dealer
and salesperson CSI rating in OE assessments, which can lead to bigger
bonuses, rebates, franchise renewal and even better vehicle selection.

If you believe there is gold that can be mined from customer feedback; if
you believe that dealership staff and processes would beneﬁ t from seeing
the business through the eyes of your customers; and if you believe that
your customer retention can be longer by demonstrating that you listen,
acknowledge and appreciate your customers’ voice, then Superservice
Insight is for you!

INFOMEDIA.COM.AU 13.

DEVELOPMENT AND NETWORK SOLUTIONS

“THE ONLINE APPLICATIONS HAVE BEEN

DEVELOPED TO PROVIDE THE BEST

POSSIBLE USER EXPERIENCE.”

INFOMEDIA PRODUCTS HAVE ALWAYS BEEN KNOWN

At Infomedia we know that mastering these challenges

FOR SPEED, EASE OF USE AND ACCURACY.

will allow us to deliver on our core promises of speed,

Over the years Infomedia programmers have made many

innovations to the products in order to stay true to these

core promises. One example of a product optimisation

we developed for the DVD world was the technique

of storing a part illustration immediately alongside the

ease of use and accuracy. Our Superservice products

have been developed to provide the best possible user

experience. Ergonomic product design and consideration

for usability are at the forefront of every development

program at Infomedia.

data about that part. This development ensured that the

We have implemented a number of optimisations which

optical DVD reading head would not have to move far to

have been designed to improve dealership productivity

access both the image and data for any given part. Less

and assist with the selling process. These improvements

movement resulted in fast loading times.

include automating manual processes and reducing the

Now with our products in the cloud, our expertise has

shifted to support our vision for the Superservice suite,

from consistent and intuitive user experiences, to new

and innovative ways of providing added value including

realtime business analytics. When we went online we

wanted to safeguard and deliver on the expectations our

customers have of our products. This meant adapting

and becoming masters of online application design and

delivery. On the surface our online applications deliver

the beneﬁ ts our customers have always expected,

number of keystrokes or clicks required to complete

common operations. We have enhanced processing

performance, ensuring that all part and operation

searches complete within set benchmarks. The hosting

infrastructure has also been upgraded to ensure that

we can scale predictably with demand and cope with

peak load without any slowdown. Finally, a global team

of IT specialists monitors every aspect of the applications

in real time to ensure an exceptional experience for

all customers.

but behind the scenes this has required a dramatic

The end result is a suite of online products tuned to meet

technology overhaul.

the needs of dealerships worldwide.

The online world presents a new set of challenges for any

developer of productivity software. Customers expect fast

and immediate access to online data 24 hours a day, but

not all Internet infrastructure is designed with this ideal

in mind. In principle the openness of the internet allows

Nicolas Fogg

anyone anywhere to serve content to a global audience.

Director of Global I.T. & Development

In practice, ensuring a very high level of performance and

reliability requires a signiﬁ cant technical capability.

14. INFOMEDIA.COM.AU

CUSTOMER PERSPECTIVE

“I would say Superservice Triage is

a proﬁ t generator.”

HEXAGON BMW INCREASES SALES BY 12%
THANKS TO SUPERSERVICE TRIAGE

“I’ve always found the product good

– that’s pretty much guaranteed.”

“I think it’s (Superservice Triage)

fundamental to our everyday use.”

THE COMPANY:

Hexagon BMW

THE SERVICE MANAGER:

David Sheldrake

Aftersales Director

•

In the industry for 32 years

• 24 years in service management

Installing Superservice Triage in the dealership four years ago has

made a signiﬁ cant diff erence to Hexagon BMW. In the ﬁ rst year of

implementation, their overall bottom line and proﬁ ts grew, and the

dealership experienced growth of at least 10% – 12% in sales.

“I would say Superservice Triage is a proﬁ t generator. You sell more. It’s

not just labour sales, it’s also parts and tyres, and it helps us sell across

a number of departments,” says David Sheldrake, Aftersales Director at

Hexagon BMW.

Before Superservice Triage, the dealership did not have a formal process

of identifying sales opportunities. Now, they are able to identify sales

opportunities for every vehicle that comes into the business. “The

system allows us to look at what we are able to sell from that opportunity,

obviously for the day itself, but also for the customers’ subsequent visits.”

He adds that customers have reacted very positively towards

Superservice Triage because it is so easy to understand, interactive,

and provides pricing estimates up front. “The concept of red, amber and

THE CHALLENGES:

green makes it easy to understand which work needs to be done now,

•

Identifying sales opportunities for

and which work needs to be done in the near future.”

every vehicle that comes into the

dealership.

Thanks to Superservice Triage, the dealership and the staff are now

much more organised. “It has really brought a whole process into our

•

Identifying future sales

dealership that we didn’t have. Before, it was very much hit and miss,”

opportunities for the customers’

Sheldrake explains. Now, the system only has to be ﬁ lled out once for

subsequent visits.

THE SOLUTION:

Superservice Triage

THE RESULTS:

• Labour sales grew at least 10%-12%

• The dealership now has a

proper selling process, making

it more effi cient, productive and

professional.

notiﬁ cations to be automatically sent to the right people in the right

departments, resulting in increased effi ciency and professionalism

within the dealership.

Sheldrake also reports an increase in staff productivity since the

introduction of Triage. The reporting feature allows Sheldrake to keep

track of the progress of his technicians and service advisors. From a

sales point of view, he can view what, and how much, a service advisor

sells. For technicians, he is able to determine the progress of each

technician, and uses the reports to improve technician performance

through reviews and appraisals.

Sheldrake is not only a huge fan of the product, he also loves the

customer service and support provided by Infomedia. “I’ve always

found the product good - that’s pretty much guaranteed. But one of the

fundamental things is the ﬂ exibility and ability to evolve the product

around individual business needs. Things develop and things evolve, it’s

great that we can be associated with a company that understands this,

and is prepared to build products around our needs.”

“I’ve recommended this system to a number of colleagues within the

BMW network, and they’ve subsequently taken the system on. I think it’s

fundamental to our everyday use.”

INFOMEDIA.COM.AU 15.

CUSTOMER PERSPECTIVE

THIS HOLDEN SERVICE MANAGER COULDN’T
LIVE WITHOUT SUPERSERVICE MENUS

“I would describe Superservice

Menus as ‘easy to use’.”

Ian Williams, the Service Manager of Canobolas Holden had only

been working at his current dealership for three days when he rang

up Infomedia representative, Alan Hilder, to request installation of

Superservice Menus.

Williams is a huge supporter of the product. He’s run Superservice

Menus in most of the dealerships he’s worked in. “I started using the

product in 2002 – so for about 10 or 11 years now, and I’ve installed it in

ﬁ ve diff erent dealerships. The fact is, I just wouldn’t work without it.”

“Superservice Menus is very

important to the dealership.

I think it is a must for every

business for accurate quoting.”

THE COMPANY:

Canobolas Holden, NSW

The accuracy of Superservice Menus is one of the reasons he loves the

product. “At this stage, I’ve never really seen another good system. I’ve

THE SERVICE MANAGER:

Ian Williams

found that in every dealership that I’ve worked in, their quoting was very

•

In the industry for 30 years

inaccurate. Some of them were guessing, some of them were going

off the DMS system, and they could be between $10 and $100 off per

• Service manager for 24 years

quote, which soon adds up.”

“I ﬁ nd that Superservice Menus is always correct and spot on. My

favourite thing about Superservice Menus is being able to use the VIN

and rego numbers, and always having the right data come up.”

“It makes things very easy. It certainly saves us a lot of time because

there’s no bobbling around books for prices or trying to look up codes

in the system,” says Williams.

Apart from accuracy, Williams explains that he would pick Superservice

Menus over other products because it is so user friendly. “In just three

words, I would describe Superservice Menus as ‘easy to use’. You don’t

really need any training. I could teach someone how to use it in about

two minutes – it’s that simple.”

After training his staff on how to use Superservice Menus, Williams can

see how much the technicians enjoy using it. “Once it’s in a dealership,

they don’t want to take it back out. They refuse!”

“Superservice Menus is very important to the dealership. I think it is

a must for every business for accurate quoting. If they haven’t got a

system for quoting, then they really need it.”

“I’ve had a good run, and I wouldn’t hesitate to recommend Superservice

Menus to anyone. It’s easy, it’s practical, you can run it on any system,

and I’m very happy with it,” says Williams.

THE CHALLENGES:

• Dealership was using a DMS

system that was hard to use,

had wrong data, and produced

inaccurate quotes.

• Technicians were guessing prices

and/or using a manual system that

was ineffi cient and cumbersome.

THE SOLUTION:

Superservice Menus

THE RESULTS:

• The dealership now has an

accurate and consistent

quoting system.

• The quoting process is quick,

effi cient and improves

staff productivity.

16. INFOMEDIA.COM.AU

DIRECTORS

invest are managed eff ectively and

Henderson headed up the company’s

honestly. Corporate governance

Asia Paciﬁ c Parts and Service

provides the framework for ethical

operation which covered Ford’s parts

leadership, sustainable business

and service activities in 12 countries

strategies and reliable ﬁ nancial

including Japan, South Africa, China,

statements. It is about assessing and

India and Australia. Mr Henderson also

mitigating risks such that performance

serves as the chairman of Infomedia’s

is optimised. It is not a tick the box

Audit & Risk Committee.

Mr Henderson was elected to the

Board in November 2011.

approach but rather must strike the

right balance between vigilance and

cost effi ciency. Simply put, good

corporate governance equals good

business.”

Ms Hernon has been a Director since

2000 and was last re-elected to the

Board in 2011. Her strengths are in the

areas of publishing, marketing and

technology.

RICHARD GRAHAM

Executive Chairman

“Corporate governance is a solemn

trusteeship held on behalf of each

and every stakeholder of the Company.

It’s about ﬁ duciary trust and it’s about

subject matter competence. It’s about

the Now, and it’s about the Future. It’s

GEOFFREY HENDERSON

about Balance, and it’s about Edgy.

Non-Executive Director

Shareholders aren’t looking for seat-

Mr Henderson is a qualiﬁ ed

accountant and has had an extensive

career spanning positions in Australia,

New Zealand, Europe and North

America. He worked in a number of

ﬁ nancial positions for Olympic Tyres

in Melbourne for eight years and then

for the Ford Motor Company for 30

warmers or box tickers. They want

real people like themselves looking

after their interest as they would do

themselves. They want Directors

who know the diff erence between

governance and management; because

only by knowing the diff erence can they

get the best from each.”

years. During his time with Ford, Mr

Mr Graham has been a Director

Henderson worked not only in the

since 1988 and was last re-elected

Finance Division but also held senior

to the Board in October 2008. His

positions in the Supply and Parts

strengths are in the areas of business

MYER HERSZBERG

Non-Executive Director

“The role of corporate governance

is to protect all shareholders equally,

regardless of the size of their

shareholding.

As directors, we have a responsibility

to act on behalf of, and try to create

wealth for, all our shareholders. At

Infomedia we are fortunate to have

a long-standing team who have

delivered consistent returns whilst

continually seeking out new products

and ideas to grow the business.

This team has all the shareholders’

interests at heart and, I would suggest,

has the balance right.”

Mr Herszberg has been a Director

since 1992 and was last re-elected to

the Board in 2010. His strengths are

in the areas of business development,

electronics and real-estate.

FRANCES HERNON

Non-Executive Director

“Shareholders are entitled to expect

and Service Divisions. Immediately

development, technology, innovation

that the companies in which they

prior to his retirement from Ford, Mr

and organisation.

INFOMEDIA.COM.AU 17.

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:

Wiser Equity Pty Limited

Yarragene Pty Limited

Yarragene Pty Ltd atf Yenzick Trust

Rentamobile Pty Ltd

Wiser Centre Pty Limited

Richard Graham

Frances Hernon

Geoff rey Henderson

Infomedia Ltd

Ordinary Shares

fully paid

101,464,342

23,421,589

15,000

1,000,000

926,559

5,000

Options over Ordinary
Shares

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 and Rentamobile Pty Ltd.

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 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 231 (2011: 212) full time employees as at 30 June 2012.

DIVIDENDS

Final dividends recommended:

On ordinary shares – ﬁ nal – fully franked

1.37

4,155

Cents

$’000

Dividends paid in the year:

On ordinary shares – 2012 interim – fully franked

1.03

3,124

Final for the 2011 year:

On ordinary shares – as recommended in the 2011 report, fully franked

1.2

3,639

NET TANGIBLE ASSETS PER SECURITY

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

· Net tangible assets per share at 30 June 2012

· Net tangible assets per share at 30 June 2011

Cents

0.7

2.2

18. INFOMEDIA.COM.AU

REVIEW AND RESULTS OF OPERATIONS

The following table presents sales revenue and proﬁ t after tax. There were no non-recurring signiﬁ cant items during the
2012 or 2011 ﬁ nancial years:

DIRECTORS’ REPORT

Sales revenue

Foreign exchange movement on hedges closed out during the period

Proﬁ t after tax

CONSOLIDATED

2012

$’000

45,677

2,620

48,297

8,461

2011

$’000

44,093

4,821

48,914

10,039

The Company reports net proﬁ t after tax (NPAT) of $8,461,000 which is at the upper end of the previously advised guidance.

Sales revenue was $45.7m against $44.1m for the previous ﬁ nancial year. The increase was driven by growth of all product
lines including $1.2m of sales obtained through the acquisition of Diff erent Aspect Software Ltd earlier in the year.

In constant currency terms, sales revenue rose by $3.5m and operating costs increased $2.0m. The impact of foreign
currency translations was signiﬁ cant and net proﬁ t was reduced by $1.6m.

All products lines saw constant currency sales growth during the 2012 ﬁ nancial year with revenue from Superservice being
the major contributor, increasing by $2.7m.

Cash ﬂ ows from operations reduced from $11.3m (in the previous corresponding period) to $9.7m primarily due to currency
impacts.

The Company is pleased to announce a fully franked ﬁ nal dividend payment of 1.37 cents. This, together with the fully
franked interim dividend of 1.03 cents, results in a fully franked dividend of 2.4 cents for the full year. The record date to
determine entitlements to the dividend distribution is 5 September 2012 and the date on which the dividend is payable is
19 September 2012.

With regards to FY 2013, the Company advises that it expects both constant currency and actual sales revenue growth.
Accordingly, the Company provides guidance that it anticipates its 2013 ﬁ nancial year sales revenue to be between $47m
and $50m. However, increased amortisation of approximately $2m due to the continued release of its next generation
products coupled with the relative strength of the Australian dollar, results in forecasted net proﬁ t after tax of between
$8m and $9m.

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 expects to continue to release its internet-based products. The company expects to
continue increasing Superservice™ revenue.

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 5,470,000 unissued ordinary shares under options. Refer to Note 19 of 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 options exercised.

INFOMEDIA.COM.AU 19.

DIRECTORS’ REPORT

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.

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

Executive Chairman

Frances Hernon

Non-executive Director

Myer Herszberg

Non-executive Director

Geoff rey Henderson Non-executive Director*

(ii) Executives

Karen Blunden

Director of Global Business Development and Sales

Nick Georges

Company Secretary and Legal Counsel

Andrew Pattinson

Director of Global Solution and Systems

Jonathan Pollard

Chief Financial Offi cer

Michael Roach

Director of Global Operations and General Manager Asia Paciﬁ c

*Appointed 25 August 2011

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; and

• Establish appropriate performance hurdles in relation to variable executive compensation.

Remuneration Decisions

Ms. Hernon, in her capacity as lead director for all matters that formally fell within 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 assess 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.

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.

20. INFOMEDIA.COM.AU

DIRECTORS’ REPORT

REMUNERATION REPORT (CONTINUED) – AUDITED

Structure

The Constitution and the 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 ending 30 June 2012 non-executive Directors’ compensation totalled
$301,560 (2011: $270,529). 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 total compensation is competitive by market standards.

Structure

In determining the level and make-up of executive compensation, the Remuneration Committee 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 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 is competitive in the market. Fixed compensation is reviewed periodically by the CEO or Executive Chairman
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 or Executive Chairman. 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.

INFOMEDIA.COM.AU 21.

DIRECTORS’ REPORT

REMUNERATION REPORT (CONTINUED) - AUDITED

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 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.

22. INFOMEDIA.COM.AU

DIRECTORS’ REPORT

REMUNERATION REPORT (CONTINUED) - AUDITED

Key Management Personnel and the ﬁ ve highest remunerated speciﬁ ed executives for the year ended 30 June 2012 and
30 June 2011.

Short-Term

Post-
Employment

Share Based
Payments

Long
Service
leave

Termination
payments

Total

Percentage
Performance
Related

Percentage
Attributable
to Options

2012 Financial
Year:

Salary &
Fees

Bonus

Non
Monetary
Beneﬁ ts

Superannuation Options

Directors:

Richard Graham

115,000

Myer Herszberg

56,300

Frances Hernon

56,250

Geoff Henderson^

49,111

Executives:

10,350

5,067

5,062

4,420

Karen Blunden

208,155

47,121

707

8,871

Nick Georges

202,000

32,595

Andrew Pattinson

285,769

46,261

Jonathan Pollard

228,462

37,182

Michael Roach

204,795

33,169

18,808

6,983

3,367

25,719

20,562

18,519

7,473

7,394

7,409

4,867

2,730

3,533

1,405,842

196,328

707

108,507

38,130

14,497

2011 Financial
Year:

Directors:

Richard Graham

115,000

Myer Herszberg

Frances Hernon

Gary Martin**

56,300

56,250

50,000

Andrew Moff at***

20,553

Executives:

Karen Blunden****

128,956

24,653

718

Nick Georges

190,000

33,250

Andrew Pattinson

280,000

39,200

Jonathan Pollard

208,889

36,000

Michael Roach

200,000

28,000

10,350

5,067

5,062

4,500

1,947

17,126

25,200

18,800

18,000

1,305,947

161,103

718

106,052

15,206

**Resigned 31 August 2010

***Resigned 05 November 2010

****Appointed 21 November 2010

^Appointed 25August 2011

4,230

833

101,538

5,175

1,056

1,589

1,644

1,512

3,167

4,667

2,100

3,333

14,100

101,538

1,704,665

125,350

61,367

61,312

53,531

264,854

263,753

370,089

296,330

267,425

1,764,011

125,350

61,367

61,312

161,102

22,500

159,501

244,599

350,656

267,433

250,845

18%

12%

13%

12%

15%

14%

11%

13%

11%

The amounts above are based on individual contracts with each person. The proportion of remuneration that is based on performance is

dependent on their individual achievement of KPI’s.

INFOMEDIA.COM.AU 23.

DIRECTORS’ REPORT

REMUNERATION REPORT (CONTINUED) - AUDITED

Contract for Services

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

Commencement date
per latest contract

Nick Georges

15 January 2012

Jonathan Pollard

15 January 2012

Michael Roach

15 January 2012

Andrew Pattinson

15 January 2012

Karen Blunden

21 November 2010

Duration

Notice Period - Company Notice Period - Executive

3 years

3 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.

Shares issued on exercise of compensation options (Consolidated)

No options were exercised during the year.

Compensation options: Granted during the year 30 June 2012

Executives

Options Issued No.

Grant date

Terms and Conditions for each Grant

Fair value per option
at grant date ($)

Exercise price per
option ($)

Andrew Pattinson

Nick Georges

Michael Roach

Jonathan Pollard

Total

450,000

1,800,000

15/01/2012

0.050

0.19

Expiry date

14/03/2015

Compensation options: Vested during the year 30 June 2012

Executives

Options
Issued No.

Andrew Pattinson

450,000

Nick Georges

Michael Roach

Karen Blunden

450,000

250,000

Jonathan Pollard

450,000

Total

2,050,000

Terms and Conditions for each Grant

Vested

Grant date

15/01/2012

21/11/2010

15/01/2012

Fair value per
option at grant
date ($)

Exercise price
per option ($)

0.050

0.058

0.050

0.19

0.245

0.19

Expiry date

No.

14/03/2015

0.0%

20/12/2013

83,333

33.0%

14/03/2015

83,333

0.0%

4.1%

24. INFOMEDIA.COM.AU

DIRECTORS’ REPORT

REMUNERATION REPORT (CONTINUED) – AUDITED

Compensation options: Granted during the year 30 June 2011

Executives

Options Issued No.

Grant date

Terms and Conditions for each Grant

Fair value per option
at grant date ($)

Exercise price
per option ($)

Expiry date

Karen Blunden

250,000

21/11/2010

0.058

0.245

20/12/2013

Compensation options: Vested during the year 30 June 2011

Executives

Options Issued
No.

Grant date

Fair value per
option at grant
date ($)

Exercise price
per option ($)

Expiry date

No.

Terms and Conditions for each Grant

Vested

Jonathan Pollard

250,000

01/10/2008

Michael Roach

250,000

01/01/2009

Andrew Pattinson

250,000

01/02/2009

Karen Blunden

250,000

21/11/2010

Total

1,000,000

0.061

0.032

0.031

0.058

0.37

0.29

31/10/2011

166,667

66.6%

05/01/2012

166,667

66.6%

05/02/2012

166,667

66.6%

0.245

20/12/2013

0.0%

500,001

50.0%

Additional information

Executive rewards are linked to the creation of shareholder value by providing incentives that positively impact the earnings
of the company. The earnings of the consolidated entity for the ﬁ ve years to 30 June 2012 are summarised below:

2008

$’000

2009

$’000

2010

$’000

2011

$’000

2012

$’000

EBITDA

EBIT

20,004

15,857

18,175

18,788

16,019

12,415

14,430

13,172

Proﬁ t after income tax

13,066

10,536

11,336

10,039

17,653

11,087

8,461

The factors that are considered to aff ect total shareholders return (‘TSR’) are summarised below:

2008

2009

2010

2011

2012

$’000

Dividends per share (cents)

Share price at ﬁ nancial year end (cents)

3.2

37.0

2.8

30.0

2.4

28.0

2.4

22.0

2.4

20.0

This concludes the remuneration report, which has been audited.

INFOMEDIA.COM.AU 25.

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

Myer Herszberg

Frances Hernon

Geoff rey Henderson*

*Appointed 25/08/2011

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.

NON-AUDIT SERVICES

Details of the amounts paid or payable to the auditor for non-audit services provided during the ﬁ nancial year by the
auditor are outlined in note 22 to the ﬁ nancial statements.

The directors are satisﬁ ed that the provision of non-audit services during the ﬁ nancial year, by the auditor (or by another
person or ﬁ rm on the auditor’s behalf), is compatible with the general standard of independence for auditors imposed by
the Corporations Act 2001.

The directors are of the opinion that the services as disclosed in note 42 to the ﬁ nancial statements do not compromise
the external auditor’s independence for the following reasons:

all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity of
the auditor, and

none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code
of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including
reviewing or auditing the auditor’s own work, acting in a management or decision-making capacity for the company, acting
as advocate for the company or jointly sharing economic risks and rewards.

AUDITOR INDEPENDENCE

The Directors received an auditor’s independence declaration from the auditor of the Company (refer page 27).

Signed in accordance with a resolution of the Directors.

Richard David Graham

Chairman

Sydney, 23 August 2012

26. INFOMEDIA.COM.AU

Tel: 61 2 9251 4100
Fax: 61 2 9240 9821
www.bdo.com.au

Level 10, 1 Margaret St
Sydney NSW 2000
Australia

DECLARATION OF INDEPENDENCE BY GRANT SAXON TO THE DIRECTORS OF INFOMEDIA
LIMITED

As lead auditor of Infomedia Limited for the year ended 30 June 2012, I declare that, to the
best of my knowledge and belief, there have been no contraventions of:

•

the auditor independence requirements of the Corporations Act 2001 in relation to the
audit; or
any applicable code of professional conduct in relation to the audit.

This declaration is in respect Infomedia Limited and the entities it controlled during the year.

Grant Saxon
Partner

BDO East Coast Partnership

Sydney 23 August 2012

BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of BDO
(Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership and BDO (Australia) Ltd are members
of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms.
Liability limited by a scheme approved under Professional Standards Legislation (other than for the acts or omissions of financial services
licensees) in each State or Territory other than Tasmania.

STATEMENT OF COMPREHENSIVE INCOME

YEAR ENDED 30 June 2012

Notes

CONSOLIDATED

2012

$’000

45,677

2,620

48,297

3(i)

(19,278)

3(ii)

3(iii)

3(iv)

29,019

151

(10,674)

(6,567)

(50)

(1,197)

6,396

(5,890)

11,188

(2,727)

8,461

(192)

(978)

(1,170)

7,291

2.79

2.40

2011

$’000

44,093

4,821

48,914

(19,769)

29,145

184

(8,944)

(5,616)

(1,246)

5,245

(5,412)

13,356

(3,317)

10,039

141

(656)

(515)

9,524

3.31

2.40

Sales revenue

Foreign exchange movement on hedges closed out during the period

Cost of sales

Gross Proﬁ t

Finance revenue

Employee beneﬁ ts expense

Depreciation and amortisation

Finance costs

Operating lease rental

Capitalisation of Research & Development costs

Other expenses

Proﬁ t before income tax

Income tax expense

Proﬁ t after income tax

Other comprehensive income

Foreign currency translation diff erences for foreign operations

Eff ective cashﬂ ow hedges movement recognised in equity

Other comprehensive expense for the period, net of tax

Total comprehensive income for the period

Basic earnings per share (cents per share)

Diluted earnings per share (cents per share)

Dividends per share - ordinary (cents per share)

28. INFOMEDIA.COM.AU

STATEMENT OF FINANCIAL POSITION

AT 30 June 2012

Notes

CONSOLIDATED

CURRENT ASSETS

Cash and cash equivalents

Trade and other receivables

Inventories

Prepayments

Derivatives

TOTAL CURRENT ASSETS

NON-CURRENT ASSETS

Property, plant and equipment

Intangible assets and goodwill

TOTAL NON-CURRENT ASSETS

TOTAL ASSETS

CURRENT LIABILITIES

Trade and other payables

Provisions

Income tax payable

Deferred revenue

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

17(b)

2012

$’000

6,646

4,033

1,015

693

12,394

1,389

34,106

35,495

47,889

2,901

1,812

835

564

6,112

425

5,107

5,532

11,644

2011

$’000

8,820

4,044

2,517

2,091

17,520

1,408

28,875

30,283

47,803

2,667

1,770

1,525

356

6,318

395

5,425

5,820

12,138

36,245

35,665

10,798

337

25,110

36,245

10,798

2,661

22,206

35,665

INFOMEDIA.COM.AU 29.

STATEMENT OF CASH FLOWS

YEAR ENDED 30 June 2012

Notes

CONSOLIDATED

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers

Payments to suppliers and employees

Interest received

Interest paid

Income tax paid

NET CASH FLOWS FROM OPERATING ACTIVITIES

17 (a)

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of property, plant and equipment

Payment for purchase of business, net of cash acquired

NET CASH FLOWS USED IN INVESTING ACTIVITIES

CASH FLOWS FROM FINANCING ACTIVITIES

Share buy back payment

Dividends paid on ordinary shares

Proceeds of borrowings

Repayment of borrowings

NET CASH FLOWS USED IN FINANCING ACTIVITIES

NET INCREASE/(DECREASE) IN CASH HELD

Add opening cash brought forward

CLOSING CASH CARRIED FORWARD

17 (b)

2012

$’000

48,250

(35,464)

151

(50)

(3,148)

9,739

(534)

(4,616)

(5,150)

(6,763)

3,748

(3,748)

(6,763)

(2,174)

8,820

6,646

2011

$’000

49,459

(36,171)

184

(2,152)

11,320

(674)

(333)

(7,282)

(7,615)

3,031

5,789

8,820

30. INFOMEDIA.COM.AU

STATEMENT OF CHANGES IN EQUITY

YEAR ENDED 30 June 2012

CONSOLIDATED

Contributed
equity

Retained
earnings

Employee
equity beneﬁ ts
reserve

Cashﬂ ow
hedge
reserve

At 1 July 2011

Proﬁ t for the year

Other comprehensive income

Total comprehensive income for the year

Transfer

Share based payments

Equity dividends

At 30 June 2012

$’000

10,798

22,206

$’000

1,210

8,461

1,206

(6,763)

10,798

25,110

(1,206)

Foreign
currency
translation
reserve

Total

$’000

(12)

(192)

35,665

8,461

(1,170)

7,291

(6,763)

$’000

1,463

(978)

485

(204)

36,245

YEAR ENDED 30 June 2011

CONSOLIDATED

Contributed
equity

Retained
earnings

Employee
equity beneﬁ ts
reserve

Cashﬂ ow
hedge
reserve

Foreign
currency
translation
reserve

Total

$’000

At 1 July 2010

Proﬁ t for the year

Other comprehensive income

Total comprehensive income for the year

Share based payments

Share buy back

Equity dividends

At 30 June 2011

11,131

(333)

19,449

10,039

(7,282)

1,195

2,119

(656)

(153)

141

33,741

10,039

(515)

9,524

(333)

(7,282)

10,798

22,206

1,210

1,463

(12)

35,665

INFOMEDIA.COM.AU 31.

NOTES TO THE FINANCIAL STATEMENTS

30 June 2012

1. CORPORATE INFORMATION

The ﬁ nancial report of Infomedia Ltd for the year ended 30 June 2012 was authorised for issue in accordance with a
resolution of the Directors on 23 August 2012.

Infomedia Ltd is a company limited by shares incorporated and domiciled in Australia whose shares are publicly traded
on the Australian stock exchange (ASX:IFM). 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 and Interpretations as appropriate for proﬁ t oriented
entities. The ﬁ nancial report has also been prepared on an 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.

New/revised standards and interpretations applicable for the year commencing 1 July 2012 have been reviewed and it has
been determined that those new/revised standards and interpretations do not have a material eff ect on the measurement
and recording of items in the balance sheet and statement of comprehensive income.

Certain Australian Accounting Standards and interpretations have recently been issued or amended but are not yet
eff ective and have not been adopted by Infomedia Ltd for the current reporting period. The Directors have not yet
assessed the impact of these new or amended standards (to the extent relevant to Infomedia Ltd) and interpretations.

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 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.

(d) Signiﬁ cant accounting judgments, 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:

•

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 11.

•

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 19.

•

Research & Development

Development costs are only capitalised by the Group when it is assessed that the technical feasibility of completing the
intangible asset is valid so that the asset will be available for use or sale. Refer to note 2(k) for further discussion.

32. INFOMEDIA.COM.AU

NOTES TO THE FINANCIAL STATEMENTS

30 June 2012

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(e) Foreign currency translation

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 diff erences 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 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.

The functional currency of the overseas subsidiaries is as follows:

IFM Europe Ltd

IFM Germany GmbH

Euros

IFM North America Inc

United States Dollars (USD)

Diff erent Aspect Software Ltd Great British Pounds (GBP)

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 diff erences arising on the retranslation are taken directly to a separate component of equity.

(f) Cash and cash equivalents

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

For the purposes of the Statement of Cash Flows, cash includes cash on hand and in banks, and money market
investments readily convertible to cash within three months, net of outstanding bank overdrafts.

(g) 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.

(h)

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 eff ective 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.

(i)

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

INFOMEDIA.COM.AU 33.

NOTES TO THE FINANCIAL STATEMENTS

30 June 2012

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

( j) 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 8 Operating Segments.

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.

(k) 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.

Research costs are expensed as incurred. Development costs are capitalised and an intangible asset for 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 diff erence 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.

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

34. INFOMEDIA.COM.AU

NOTES TO THE FINANCIAL STATEMENTS

30 June 2012

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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.

(l)

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.

(m) 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:

Major depreciation periods are:

2012

2011

Leasehold improvements:

5 to 20 years

Other plant and equipment:

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) 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 diff erence between the net disposal proceeds and
the carrying amount of the asset) is included in proﬁ t or loss in the year the asset is derecognised.

(n) Leases

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.

(o) 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 35.

NOTES TO THE FINANCIAL STATEMENTS

30 June 2012

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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

(q) 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.

(r) 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.

(s) 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.

(t) 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.

(u) 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.
Derivative ﬁ nancial instruments are measured at fair value.

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 value of forward currency contracts are calculated by reference to current forward exchange rates for contacts
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
highly probable forecast transaction. Infomedia Limited currently has cash ﬂ ow hedges attributable to highly probable
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 aff ect proﬁ t or loss. The eff ective portion of the gain or loss on the
hedging instrument is recognised directly in equity, while the ineff ective 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 eff ectiveness on a monthly
basis both retrospectively and prospectively using the “matched terms” principle.

At each balance date, hedge eff ectiveness 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 eff ective. Where there has been a change to these terms, eff ectiveness is measured using the hypothetical
derivative method.

36. INFOMEDIA.COM.AU

NOTES TO THE FINANCIAL STATEMENTS

30 June 2012

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

The parent entity (Infomedia Ltd) sells software to its wholly owned subsidiaries (i.e. IFM North America Inc and IFM Europe
Ltd). Sales to IFM North America Inc are denominated in USD. Sales to IFM Europe Ltd are denominated in Euros. Sales
to these wholly owned subsidiaries (‘distributors’) are immediately on-sold to customers in the same currency. There is no
inventory held by the subsidiaries with the exception of fulﬁ lling new ﬁ rst time through orders. First time through orders will
not be hedged. The Group hedges foreign exchange exposure on intra-group sales as this exposure aff ects consolidated
proﬁ t when the sale is made to the external customer.

(v) 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 diff erences 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 diff erences 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, aff ects neither the accounting
proﬁ t nor taxable proﬁ t or loss; or

• when the taxable temporary diff erence is associated with investments in subsidiaries, associates or interests in joint
ventures, and the timing of the reversal of the temporary diff erence can be controlled and it is probable that the
temporary diff erence will not reverse in the foreseeable future.

Deferred income tax assets are recognised for all deductible temporary diff erences, 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 diff erences 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 diff erence 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.

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 off set 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 Interpretation 1052 – Tax Consolidation Accounting. 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 is determined as if the company is 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 groups future tax proﬁ ts.

(w) 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; and

•

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

INFOMEDIA.COM.AU 37.

NOTES TO THE FINANCIAL STATEMENTS

30 June 2012

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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 are 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.

(x) 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 and current provisions respectively 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 cashﬂ ows.

(iii) Post employment and termination beneﬁ ts

A Superannuation expense at 9% of salaries is recognised on a straight line basis. Termination beneﬁ ts are recognised at
the point of being incurred where relevant.

(y) 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’).

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 eff ect 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.

38. INFOMEDIA.COM.AU

NOTES TO THE FINANCIAL STATEMENTS

30 June 2012

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

The dilutive eff ect, if any, of outstanding options is reﬂ ected as additional share dilution in the computation of earnings per share.

(z) 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 eff ect of dividends and interest associated with dilutive potential ordinary shares that have been
recognised as expenses; and

other non-discretionary changes in revenue or expenses during the period that would result from the dilution of
potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential ordinary
shares, adjusted for any bonus element.

(aa) Business combinations

The acquisition method of accounting is used to account for business combinations regardless of whether equity
instruments or other assets are acquired.

The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity instruments
issued or liabilities incurred by the acquirer to former owners of the acquiree and the amount of any non-controlling
interest in the acquiree. For each business combination, the non-controlling interest in the acquiree is measured at either
fair value or at the proportionate share of the acquiree’s identiﬁ able net assets. All acquisition costs are expensed as
incurred to proﬁ t or loss.

On the acquisition of a business, the consolidated entity assesses the ﬁ nancial assets acquired and liabilities assumed for
appropriate classiﬁ cation and designation in accordance with the contractual terms, economic conditions, the consolidated
entity’s operating or accounting policies and other pertinent conditions in existence at the acquisition-date.

Where the business combination is achieved in stages, the consolidated entity remeasures its previously held equity
interest in the acquiree at the acquisition-date fair value and the diff erence between the fair value and the previous
carrying amount is recognised in proﬁ t or loss.

Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date fair value. Subsequent
changes in the fair value of contingent consideration classiﬁ ed as an asset or liability is recognised in proﬁ t or loss.
Contingent consideration classiﬁ ed as equity is not remeasured and its subsequent settlement is accounted for within equity.

The diff erence between the acquisition-date fair value of assets acquired, liabilities assumed and any non-controlling
interest in the acquiree and the fair value of the consideration transferred and the fair value of any pre-existing investment
in the acquiree is recognised as goodwill. If the consideration transferred and the pre-existing fair value is less than the fair
value of the identiﬁ able net assets acquired, being a bargain purchase to the acquirer, the diff erence is recognised as a
gain directly in proﬁ t or loss by the acquirer on the acquisition-date, but only after a reassessment of the identiﬁ cation and
measurement of the net assets acquired, the non-controlling interest in the acquiree, if any, the consideration transferred
and the acquirer’s previously held equity interest in the acquirer.

Business combinations are initially accounted for on a provisional basis. The acquirer retrospectively adjusts the
provisional amounts recognised and also recognises additional assets or liabilities during the measurement period, based
on new information obtained about the facts and circumstances that existed at the acquisition-date. The measurement
period ends on either the earlier of (i) 12 months from the date of the acquisition or (ii) when the acquirer receives all the
information possible to determine fair value.

INFOMEDIA.COM.AU 39.

NOTES TO THE FINANCIAL STATEMENTS

30 June 2012

Notes

CONSOLIDATED

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

Total research & development costs incurred during the period

Less: development costs deferred

Net research and development costs expensed

2012

$’000

12,000

7,278

19,278

10,622

10,674

431

571

421

5,575

5,996

6,567

11,081

(6,396)

4,685

2011

$’000

12,307

7,462

19,769

8,929

8,944

368

112

550

147

4,919

5,066

5,616

9,312

(5,245)

4,067

40. INFOMEDIA.COM.AU

NOTES TO THE FINANCIAL STATEMENTS

30 June 2012

4. INCOME TAX

Notes

CONSOLIDATED

2012

$’000

2011

$’000

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.

Deferred income tax

Relating to origination and reversal of temporary diff erences

Income tax expense reported in the income statement

(b) Disclosure of tax eff ects relating to each component of other

comprehensive income

Movement in cash ﬂ ow hedges

2,809

(183)

101

2,727

(419)

3,089

(78)

306

3,317

(281)

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

11,189

13,356

At the Company’s statutory income tax rate of 30% (2011: 30%)

Adjustments in respect of income tax of previous years

Additional research and development deduction

Expenditure not allowable for income tax purposes

Income tax expense reported in the income statement

3,357

(158)

(531)

2,727

4,007

(153)

(606)

3,317

INFOMEDIA.COM.AU 41.

NOTES TO THE FINANCIAL STATEMENTS

30 June 2012

4. INCOME TAX (CONTINUED)

Deferred income tax

Deferred income tax at 30 June relates to the following:

Notes

STATEMENT OF
FINANCIAL POSITION

INCOME STATEMENT

2012

$’000

2011

$’000

2012

$’000

2011

$’000

CONSOLIDATED

Deferred tax liabilities

Derivatives

Deferred development costs

Intellectual property

Other

(208)

(6,310)

(627)

(6,065)

(37)

Gross deferred income tax liabilities

(6,518)

(6,729)

CONSOLIDATED

Deferred tax assets

Allowance for doubtful debts

Other payables

Employee entitlement provisions

Other provisions

Currency exchange

Gross deferred income tax assets

Deferred tax income/ (expense)

616

418

259

1,411

115

495

420

255

1,304

245

(37)

(8)

(121)

(4)

101

100

(44)

(78)

242

(12)

306

Net deferred income tax liabilities

(5,107)

(5,425)

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:

30 June 2012

Notes

CONSOLIDATED

Net proﬁ t attributable to equity holders from continuing operations

2012

$’000

8,461

2011

$’000

10,039

Number of
shares

Weighted average number of ordinary shares for basic earnings per share

303,276,855

303,483,292

Eff ect of dilution:

Share options

347,329

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

303,624,184

303,483,292

Since the reporting date, prior to the completion of these ﬁ nancial statements, the company has not repurchased any
further shares through its buy back program.

Total equivalent shares outstanding on out-of-the-money options that were not dilutive for the respective periods but could
potentially dilute earnings per share in the future were 250,000 (2011: 1,000,000)

42. INFOMEDIA.COM.AU

NOTES TO THE FINANCIAL STATEMENTS

30 June 2012

Notes

CONSOLIDATED

6. DIVIDENDS PROPOSED OR PAID

(a) Dividends paid during the year:

Interim dividend – 1.03 cents fully franked
(2011: 1.2 cents fully franked) per share

Prior year ﬁ nal dividend – 1.2 cents unfranked (2011: 1.2 cents, unfranked) per share

Total dividends paid during the year

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

Final dividend – 1.37 cents fully franked.

(2011: 1.2 cents, fully franked) per share

–

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

If fully franked, the tax rate on dividends is 30% (2011: 30%).

2012

$’000

2011

$’000

3,124

3,639

6,763

3,641

7,282

4,155

3,639

927

685

1,612

716

1,647

2,363

30 June 2012

CONSOLIDATED

7. TRADE AND OTHER RECEIVABLES (CURRENT)

Trade debtors

Allowance for impairment loss (a)

Other debtors

(a) Allowance for impairment loss

2012

$’000

4,203

(210)

3,993

4,033

2011

$’000

4,133

(136)

3,997

4,044

Trade receivables are non-interest bearing and are generally on 30-60 day terms. A provision for impairment loss is recognised when
there is objective evidence that an individual trade receivable is impaired. An impairment loss of $121,000 (2011: $41,000 loss) has
been recognised by the group in the current year. These amounts have been included in the other expenses item. 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.

Movements in the provision for impairment loss were as follows:

At 1 July

Charge/(release) for the year

Foreign exchange translation

Amounts written off

At 30 June

136

121

(10)

(37)

210

218

(130)

136

At 30 June the aging analysis of trade receivables is as follows:

Total

0-60 days NI*

0-60 days CI* 61-120 days NI* 61-120 days CI*

121+ days NI*

121+ days CI*

2012 Consolidated ($’000) 4,203

2011

Consolidated ($’000)

4,133

3,652

3,630

281

310

128

* Not impaired (NI)

Considered impaired (CI)

All trade receivables over 60 days are considered past due.

INFOMEDIA.COM.AU 43.

NOTES TO THE FINANCIAL STATEMENTS

30 June 2012

8. INVENTORIES

Raw materials

At cost

Total inventories at the lower of cost and net realisable value

Notes

CONSOLIDATED

2012

$’000

2011

$’000

30 June 2012

Notes

CONSOLIDATED

9. 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

2012

$’000

434

(407)

7,871

(6,784)

1,087

399

(237)

162

3,287

(3,174)

113

11,991

(10,602)

1,389

2011

$’000

428

(402)

7,336

(6,308)

1,028

380

(193)

187

3,251

(3,084)

167

11,395

(9,987)

1,408

44. INFOMEDIA.COM.AU

NOTES TO THE FINANCIAL STATEMENTS

30 June 2012

9. PROPERTY, PLANT & EQUIPMENT (CONTINUED)

(b) Reconciliation of property, plant and equipment carrying values

CONSOLIDATED

2012

$’000

2011

$’000

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

Total property, plant and equipment

Carrying amount – opening balance

Additions

Disposals

Depreciation

Carrying amount – closing balance

(5)

1,028

492

(2)

(431)

1,087

187

(44)

162

167

(91)

113

1,408

554

(2)

(571)

1,389

(29)

842

561

(6)

(369)

1,028

242

(15)

(40)

187

166

113

(112)

167

1,305

674

(21)

(550)

1,408

INFOMEDIA.COM.AU 45.

NOTES TO THE FINANCIAL STATEMENTS

30 June 2012

CONSOLIDATED

10. INTANGIBLE ASSETS AND GOODWILL

$000

$’000

Development
costs1

Intellectual
Property2

Other
Intangibles2

Goodwill 2

At 1 July 2011

Cost (gross carrying amount)

Accumulated amortisation

Net carrying amount

Year ended 30 June 2012

At 1 July 2011, net of accumulated
amortisation and impairment

Additional amounts recognised from
purchase of subsidiary occurring during the
year (note 27)

Additions

Amortisation

At 30 June 2012, net of accumulated
amortisation and impairment

At 30 June 2012

Cost (gross carrying amount)

Accumulated amortisation

Net carrying amount

33,916

(13,705)

20,211

2,537

(2,414)

123

20,211

123

6,396

(5,575)

21,032

40,312

(19,280)

21,032

578

(242)

459

3,115

(2,656)

459

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

1,071

(179)

892

1,071

(179)

892

Total

$’000

44,994

(16,119)

28,875

8,541

28,875

3,182

4,831

6,396

(5,996)

11,723

34,106

11,723

56,221

(22,115)

34,106

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 3 years.

46. INFOMEDIA.COM.AU

NOTES TO THE FINANCIAL STATEMENTS

30 June 2012

CONSOLIDATED

Development
costs

Intellectual
Property

Other Intan-
gibles

Goodwill

$000

$’000

10. INTANGIBLE ASSETS AND
GOODWILL (CONTINUED)

At 1 July 2010

Cost (gross carrying amount)

Accumulated amortisation

Net carrying amount

Year ended 30 June 2011

At 1 July 2010, net of accumulated
amortisation and impairment

Additions

Amortisation

At 30 June 2011, net of accumulated
amortisation and impairment

At 30 June 2011

Cost (gross carrying amount)

Accumulated amortisation

Net carrying amount

28,671

(8,786)

19,885

5,245

(4,919)

20,211

33,916

(13,705)

20,211

2,537

(2,267)

270

(147)

123

2,537

(2,414)

123

Total

$’000

39,749

(11,053)

28,696

5,245

(5,066)

8,541

28,875

8,541

44,994

(16,119)

28,875

INFOMEDIA.COM.AU 47.

NOTES TO THE FINANCIAL STATEMENTS

30 June 2012

11. 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 note 24) for impairment testing as follows:

• Asia Paciﬁ c;

•

Europe;

• North America; and

•

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 2012 based on ﬁ nancial budgets approved by The Board for the 2013 ﬁ nancial year
extrapolated for a ﬁ ve year period on the basis of 5% growth together with a terminal value.

The discount rate applied to cash ﬂ ow projections is 14% (2011: 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:

Asia Paciﬁ c

Europe,
Middle East
& Africa

North America

Latin and South
America

CONSOLIDATED
Carrying amount of goodwill 2011

Movement

Carrying amount of goodwill 2012

$’000

1,938

722

2,660

$’000

4,074

1,518

5,592

$’000

1,954

728

2,682

575

214

789

Total

$’000

8,541

3,182

11,723

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 remain 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; and

• Management has used an AUD/USD exchange rate of $1.03 and an AUD/EUR exchange rate of $0.81 in its cash ﬂ ow

projections.

Sensitivity to changes in assumptions:

Growth rate assumptions – Management notes if negative growth rates are applied to revenues, by 5% over the ﬁ ve year
period, this still yields a recoverable amount to be above its carrying amount.

Discount rate assumptions – Management recognises that the time value of money may vary from what they have
estimated. Management notes that applying a discount rate of double the current rate still yields the recoverable amount
to be above its carrying amount.

Foreign exchange rate assumptions – Management notes that applying an AUD/USD exchange rate of $1.20 and an AUD/
EUR exchange rate of $0.85 still yields the recoverable amount to be above its carrying amount.

48. INFOMEDIA.COM.AU

NOTES TO THE FINANCIAL STATEMENTS

30 June 2012

Notes

CONSOLIDATED

12. TRADE AND OTHER PAYABLES (CURRENT)

Trade creditors

Other creditors

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

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

13. PROVISIONS (CURRENT)

Employee beneﬁ ts

14. DEFERRED REVENUE (CURRENT)

Revenue in advance

15. PROVISIONS (NON-CURRENT)

Employee beneﬁ ts

(a) Movement in employee beneﬁ t provision:

Carrying amount at the beginning of the year

Utilised

Arising during the year

Carrying amount at the end of the year

Current

Non-current

12(a)

2012

$’000

467

2,434

2,901

2011

$’000

326

2,341

2,667

15(a)

1,812

1,770

564

356

425

395

2,165

(1,320)

1,392

2,237

1,812

425

2,237

2,306

(1,512)

1,371

2,165

1,770

395

2,165

INFOMEDIA.COM.AU 49

NOTES TO THE FINANCIAL STATEMENTS

30 June 2012

Notes

CONSOLIDATED

16. CONTRIBUTED EQUITY AND RESERVES

Ordinary shares

2012

$’000

10,798

2011

$’000

10,798

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

Movement in ordinary shares on issue:

At 1 July 2010

Shares repurchased

At 30 June 2011

Shares repurchased

At 30 June 2012

Notes

Number

$’000

304,575,076

(1,298,221)

303,276,855

11,131

(333)

10,798

303,276,855

10,798

On 1 April 2008 the company commenced a share buy back (on market within 10/12 limit). This was reinitiated on 1 April
2009, 1 April 2010 and 1 April 2011. As at 30 June 2012 the company had repurchased 22,694,717 shares for a total
consideration of $6,939,000.

Capital management

When managing capital, the company’s objective is to ensure 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, in the order of 75-85% of proﬁ t after tax.

During the 2012 ﬁ nancial year, the company paid dividends of $6.8 million (2011: $7.3 million).

The company has no current plans to issue further shares on the market but may further reduce the capital structure
through its share buy back program.

50. INFOMEDIA.COM.AU

NOTES TO THE FINANCIAL STATEMENTS

16. CONTRIBUTED EQUITY AND RESERVES (CONTINUED)

Employee Option Plan

There were 5,220,000 (2010: 250,000) options issued during the current year at an average exercise price of $0.19
(2010: $0.245).

30 June 2012

CONSOLIDATED

Employee equity
beneﬁ ts reserve

Foreign currency
translation reserve

Cashﬂ ow hedge
reserve

$’000

Movement in reserves:

At 1 July 2011

Currency translation diff erences

Share based payments

Derivatives marked to market

At 30 June 2011

Currency translation diff erences

Share based payments

Transfer to retained proﬁ t

Derivatives marked to market

At 30 June 2012

Nature and purpose of reserves

Employee equity beneﬁ ts reserve

1,195

1,210

(1,206)

(153)

141

(12)

(192)

(204)

2,119

(656)

1,463

(978)

485

Total

$’000

3,161

141

(656)

2,661

(192)

(1,206)

(978)

337

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 19 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.

Cashﬂ ow hedge 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 51.

NOTES TO THE FINANCIAL STATEMENTS

30 June 2012

Notes

CONSOLIDATED

17. 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

Disposal of property, plant, and equipment

Changes in assets and liabilities

(Increase)/decrease in trade and other debtors

(Increase)/decrease in inventories

(Increase)/decrease in prepayments

(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

2012

$’000

8,461

570

5,996

(41)

1,535

(6,396)

(107)

(662)

202

(67)

9,739

2011

$’000

10,039

550

5,066

339

740

(5,245)

(1,070)

(82)

(141)

898

306

(124)

11,320

1,999

4,647

6,646

2,478

6,342

8,820

30 June 2012

Notes

CONSOLIDATED

18. 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

– later than ﬁ ve years

– aggregate operating lease expenditure contracted for at

balance date

2012

$’000

2011

$’000

1,197

4,099

5,296

1,118

4,598

620

6,336

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 $508,000 (2011: $700,000) relating to the lease
commitments of its corporate headquarters.

52. INFOMEDIA.COM.AU

NOTES TO THE FINANCIAL STATEMENTS

19. 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

2012

2011

Number of options

Weighted average
exercise price

Number of options

Weighted average
exercise price

Balance at beginning of year

- granted

- expired

- exercised

Balance at end of year

19(a)

19(b)

19(c)

19(d)

19(e)

1,000,000

5,220,000

(750,000)

5,470,000

$0.30

$0.19

$0.32

$0.19

2,150,000

250,000

(1,400,000)

1,000,000

$0.45

$0.245

$0.51

$0.30

(a) Options held at the beginning of the year:

The following table summarises information about options held by employees at 1 July 2011

Number of options

Grant date

Earliest
vesting date

Expiry date

Weighted average
exercise price

250,000

1/02/2009

1/02/2010

5/02/2012

1/01/2009

1/10/2008

1/01/2010

1/10/2009

5/01/2012

31/10/2011

$0.29

$0.37

21/11/2010

20/12/2011

20/12/2013

$0.245

(b) Options granted during the year:

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

Number of options

Grant date

Earliest
vesting date

Expiry date

Weighted average
exercise price

1,800,000

3,420,000

15/01/2012

15/01/2013

14/03/2015

30/05/2012

30/05/2013

30/05/2015

$0.19

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

Number of options

250,000

Grant date

Earliest
vesting date

Expiry date

Weighted average
exercise price

1/02/2009

1/02/2010

05/02/2012

1/01/2009

1/01/2010

05/01/2012

1/10/2008

1/10/2009

30/10/2011

$0.29

$0.37

INFOMEDIA.COM.AU 53.

NOTES TO THE FINANCIAL STATEMENTS

(d) Options exercised during the year:

There were no options exercised during the year.

(e) Options held at the end of the year:

The following table summarises information about options held by employees at 30 June 2012:

Number of options

250,000

1,800,000

3,420,000

Grant date

Earliest
vesting date

Expiry date

Weighted average
exercise price

21/11/2010

20/12/2011

20/12/2013

$0.245

15/01/2012

15/01/2013

14/03/2015

30/05/2012

30/05/2013

30/05/2015

$0.19

(e) Other details regarding options:

The weighted average fair value of options granted during the year was $0.04 (2011: $0.058).

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:

Granted 21/11/2010

Granted 15/01/2012

Granted 30/05/2012

Dividend yield (%)

Expected volatility (%)

Risk free rate (%)

Option exercise price

Weighted average share price at grant date

7.5%

44%

5.59%

$0.245

10.0%

41%

3.95%

$0.19

10.0%

39%

3.08%

$0.19

The expense recognised for employee services received during the year is shown in the table below:

Expense arising from equity-settled share-based payment transactions

20. PENSIONS AND OTHER POST-EMPLOYMENT PLANS

Superannuation Commitments

CONSOLIDATED

2012

$’000

2011

$’000

Contributions are made by the Company in accordance with the relevant statutory requirements. Contributions by the
Company for the year ended 30 June 2012 were 9% (2011: 9%) of employee’s wages and salaries which are legally
enforceable in Australia. The superannuation plans provide accumulation beneﬁ ts.

54. INFOMEDIA.COM.AU

NOTES TO THE FINANCIAL STATEMENTS

21. 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

2012

1,602,877

108,507

14,497

38,130

1,764,011

2011

1,467,768

106,053

14,100

101,538

15,206

1,704,665

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

30 June 2012

Balance at
beginning of
period

1 July 2011

Granted as
compensation

Options
exercised

Expired

Balance
at end of
period

30 June
2012

Vested at 30 June 2012

Total

Not
exercisable

Exercisable

Executives

Karen Blunden

250,000

Nick Georges

450,000

Michael Roach

250,000

450,000

Andrew Pattinson

250,000

450,000

Jonathan Pollard

250,000

450,000

1,000,000

1,800,000

Granted as
compensation

Options
exercised

Balance at
beginning of
period

1 July 2010

30 June 2011

Directors

Gary Martin**

1,000,000

Executives

Karen Blunden***

250,000

Nick Georges

Michael Roach

250,000

Andrew Pattinson

250,000

Jonathan Pollard

250,000

2,000,000

250,000

** Resigned 31 August 2010

*** Appointed 21 November 2010

250,000

450,000

(250,000)

450,000

(250,000)

450,000

(250,000)

450,000

83,333

(750,000)

2,050,000

83,333

Net change
other

Balance
at end of
period

30 June
2011

Vested at 30 June 2011

Total

Not
exercisable

Exercisable

(1,000,000)

250,000

(250,000)

250,000

166,667

(1,250,000)

1,000,000

500,001

INFOMEDIA.COM.AU 55.

NOTES TO THE FINANCIAL STATEMENTS

21. KEY MANAGEMENT PERSONNEL DISCLOSURES (CONTINUED)

30 June 2012

Number of shares held in Infomedia Ltd

Balance
30 June 2011

Granted as
compensation

On exercise of
options

Net change
other

Balance 30
June 2012

Directors

Richard Graham

Myer Herszberg

Geoff Henderson*

Frances Hernon

Executives

Andrew Pattinson

Nick Georges

Michael Roach

Jonathan Pollard

Karen Blunden

Total

*Appointed 25/08/11

30 June 2011

Number of shares held in Infomedia Ltd

Directors

Richard Graham

Myer Herszberg

Gary Martin*

Frances Hernon

Andrew Moff at**

Executives

Andrew Pattinson

Nick Georges

Michael Roach

Jonathan Pollard

Karen Blunden***

Total

* Resigned 31/8/10

** Resigned 5/11/10

***Appointed 21/11/10

103,390,901

23,421,589

5,000

2,447,567

24,421

18,721

1,996

129,310,195

103,390,901

15,010

23,436,599

5,000

2,447,567

24,421

18,721

1,996

15,010

129,325,205

Balance
1 July 2010

Granted as
compensation

On exercise of
options

Net change
other

Balance 30
June 2011

103,004,060

23,421,589

655,590

5,000

300,000

2,447,567

24,421

18,721

1,996

129,878,944

386,841

103,390,901

23,421,589

(655,590)

(300,000)

5,000

2,447,567

24,421

18,721

1,996

(568,749)

129,310,195

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.

56. INFOMEDIA.COM.AU

NOTES TO THE FINANCIAL STATEMENTS

22. AUDITORS’ REMUNERATION

Amounts received or due and receivable by the auditors of Infomedia Ltd:

BDO East Coast Partnership/PKF East Coast Practice

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

the consolidated entity

– Non-audit services

Ernst & Young

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

the consolidated entity

CONSOLIDATED

2012

2011

121,800

72,700

159,650

194,500

159,650

23. RELATED PARTY DISCLOSURES

Ultimate Parent

Infomedia Ltd is the ultimate Australian parent company

Wholly-owned group transactions

(a) An unsecured, trade receivable of $483,736 (2011: $270,693) remains owing to IFM Europe Ltd from Infomedia Ltd.

(b) An unsecured, trade receivable of $859,545 (2011: $1,520,419) remains owing from IFM North America Inc. to Infomedia Ltd.

(c) An unsecured, trade receivable of $18,919 (2011: $nil) remains owing to Diff erent Aspect Software Ltd. from Infomedia Ltd.

(d) During the year Infomedia Ltd received $15,485,980 (2011: $15,475,220) from IFM Europe Ltd for intra-group sales.

(e) During the year Infomedia Ltd received $6,145,616 (2011: $7,113,411) from IFM North America Inc. for intra-group sales

(f) During the year IFM Europe paid $466,317 (2010: $483,820) 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 34.10% of the ordinary shares in
Infomedia Ltd (2011: 34.10%).

INFOMEDIA.COM.AU 57.

NOTES TO THE FINANCIAL STATEMENTS

24. SEGMENT INFORMATION

30 June 2012

Notes Asia Paciﬁ c

Europe

North
America

Latin &
South
America

Corporate

Total

$’000

Business Segments

REVENUE

Sales revenue

Consolidated revenue

Segment result

Finance revenue

Finance cost

12,350

21,129

9,665

2,533

45,677

9,809

17,358

7,159

2,028

(25,266)

11,088

150

(50)

Consolidated proﬁ t before income tax

9,809

17,358

7,159

2,028

(25,166)

Income tax expense

Consolidated proﬁ t after income tax

Assets

Segment assets

Unallocated assets

Total assets

Liabilities

Segment liabilities

Unallocated liabilities

Total liabilities

Capital Expenditure

Amortisation

Depreciation

2,902

881

310

58. INFOMEDIA.COM.AU

150

(50)

11,188

(2,727)

8,461

2,944

44,945

47,889

1,191

10,453

11,644

498

536

5,996

480

5,996

570

NOTES TO THE FINANCIAL STATEMENTS

24. SEGMENT INFORMATION (CONTINUED)

30 June 2011

Notes Asia Paciﬁ c

Europe

North
America

Latin &
South
America

Corporate

Total

$’000

Business Segments

REVENUE

Sales revenue

Consolidated revenue

Segment result

Finance revenue

11,837

19,847

9,880

2,529

8,740

15,028

6,292

2,054

(18,942)

184

Consolidated proﬁ t before income tax

8,740

15,028

6,292

2,054

(18,758)

Income tax expense

Consolidated proﬁ t after income tax

Assets

Segment assets

Unallocated assets

Total assets

Liabilities

Segment liabilities

Unallocated liabilities

Total liabilities

Capital Expenditure

Amortisation

Depreciation

1,759

897

611

219

44,093

13,172

184

13,356

(3,317)

10,039

2,656

45,147

47,803

830

11,308

12,138

674

5,066

466

5,066

550

Identiﬁ cation of reportable segments

The group has identiﬁ ed its operating segments based on the internal reports that are reviewed and used by the Board of
Directors (the chief operating decision makers) in assessing performance and in determining the allocation of resources.

The operating segments are identiﬁ ed by management based on the region in which the product is sold. Discrete ﬁ nancial
information about each of these operating businesses is reported to the Board of Directors regularly.

The reportable segments are based on aggregated operating segments determined by the similarity of the products
produced and sold as these are the sources of the Group’s major risks and have the most eff ect of the rates of return.

Accounting policies and inter-segment transactions

The accounting policies used by the Group in reporting segments internally are the same as those contained in note 2 to
the accounts and in the prior period.

The group accounting policies for segments are applied to the respective segments up to the segment result level.

Major customers

The Group has many customers to which it provides products. There is no signiﬁ cant reliance on any single customer.

INFOMEDIA.COM.AU 59.

NOTES TO THE FINANCIAL STATEMENTS

25. 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 and range
forward 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.

(a) 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
$6,646,000 (2011: $8,820,000) 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, as such any reasonably expected change in
interest rates (+/- 1%) would not have a signiﬁ cant impact on post tax proﬁ t or other comprehensive income.

(b) 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 cashﬂ ow exposures. Approximately 40% of the Company’s sales are denominated in
United States Dollars and 40% are denominated in Euros (measured using the spot foreign exchange rates in existence in
the current ﬁ nancial year). 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 investment in both its European and United States subsidiaries, the Company’s statement of
ﬁ nancial position can be aff ected by movements in both the Euro and United States dollar against the Australian dollar.

At 30 June, the Group had the following exposure to US$ foreign currency that is not designated in cash ﬂ ow hedges:

Financial Assets

Cash and cash equivalents

Derivatives

CONSOLIDATED

2012

$’000

160

175

2011

$’000

811

1,406

2,217

60. INFOMEDIA.COM.AU

NOTES TO THE FINANCIAL STATEMENTS

25. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)

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

Financial Assets

Cash and cash equivalents

Derivatives

CONSOLIDATED

2012

$’000

2011

$’000

374

536

910

1,013

605

1,618

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

At 30 June, had the Australian Dollar moved, as illustrated in the table below, with all other variables held constant,
post tax proﬁ t and total equity would have been aff ected as follows:

Judgments of reasonably possible movements:

Post tax proﬁ t
Higher/(Lower)

Total equity
Higher/(Lower)

2012

$’000

2011

$’000

(1)

(23)

(51)

100

(64)

125

2012

$’000

482

(928)

401

(762)

2011

$’000

578

(575)

529

(1,004)

Consolidated

AUD/USD +10%

AUD/USD – 15%

AUD/EUR +10%

AUD/EUR – 15%

Management believe the balance date risk exposures are representative of the risk exposure inherent in the ﬁ nancial
instruments.

The Company’s credit risk with regard to accounts receivables 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.

With respect to credit risk arising from the other ﬁ nancial assets of the Company, which comprise cash and cash
equivalents, 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, collateral is not requested nor is it the Group’s policy to
securitise its trade and other receivables.

(d) Price risk

There are no items on the statement of ﬁ nancial position as at 30 June 2012 that are subject price risk.

INFOMEDIA.COM.AU 61.

NOTES TO THE FINANCIAL STATEMENTS

25. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)

(e) Liquidity risk

The Company’s exposure to liquidity risk is minimal given the relative strength of the statement of ﬁ nancial position and
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 below. Consequently the
remaining contractual maturity of the group entity’s ﬁ nancial liabilities is as stated in the statement of ﬁ nancial position and
is less than 60 days. Deferred revenue requires no cash outﬂ ow.

Liquidity and Interest rate risk

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

CONSOLIDATED

YEAR ENDED 30 JUNE 2012

Less than one year
$’000

Two to ﬁ ve years
$’000

Greater than ﬁ ve years
$’000

Weighted average
eff ective interest rate %

Floating rate

Cash and cash equivalents

Trade and other receivables

Trade and other payables

6,646

4,033

(2,901)

3.0

CONSOLIDATED

YEAR ENDED 30 JUNE 2011

Less than one year
$’000

Two to ﬁ ve years
$’000

Greater than ﬁ ve years
$’000

Weighted average
eff ective interest rate %

Floating rate

Cash and cash equivalents

Trade and other receivables

Trade and other payables

8,820

4,044

(2,667)

3.2

Interest on cash and cash equivalents 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 that are not included in the above tables are non-interest bearing and are therefore not subject to interest rate risk.

62. INFOMEDIA.COM.AU

NOTES TO THE FINANCIAL STATEMENTS

25. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)

(f) Fair value

Derivative instruments use valuation techniques other than quoted prices in active markets with only observable market
inputs for the asset or liability, either directly (as prices) or indirectly (derived from prices) to determine the fair value of
foreign exchange contracts

Derivative contracts

The following table summarises the forward exchange contracts on hand at 30 June 2012.

CONSOLIDATED

Maturity

Company buys

Company sells

Exchange rate

Company sells United States Dollars (USD)

Less than one year

Company sells Euros (E)

Less than one year

$A’000

7,738

$A’000

7,130

USD’000

7,600

E’000

5,240

0.982

0.735

The mark to market valuation of these contracts at 30 June 2012 was $699,000 which is booked directly in equity.

The following table summarises the range forward contracts on hand at 30 June 2012.

Maturity

Company sells

Floor rate

Ceiling rate

CONSOLIDATED

Less than one year

USD’000

3,975

700

0.8825

0.8800

1.100

0.9900

The mark to market valuation of these range forwards at 30 June 2012 was a loss of $6,000 which is booked directly in equity.

Derivative contracts

The following table summarises the forward exchange contracts on hand at 30 June 2011.

CONSOLIDATED

Maturity

Company buys

Company sells

Exchange rate

Company sells United States Dollars (USD)

Less than one year

Company sells Euros (E)

Less than one year

Company sells Euros (E)

Greater than one year and not greater than two years

$A’000

7,585

$A’000

8,396

$A’000

1,420

USD’000

6,361

E’000

5,665

E’000

1,000

0.839

0.675

0.704

The mark to market valuation of these contracts at 30 June 2011 was $2,055,000, which is booked directly in equity.

Maturity

Company sells

Floor rate

Ceiling rate

USD’000

Greater than one year and not greater than two years

3,975

0.8825

1.100

CONSOLIDATED

The mark to market valuation of these range forwards at 30 June 2011 was $36,000 which has been included in the
Statement of Comprehensive Income as Other Income.

INFOMEDIA.COM.AU 63.

NOTES TO THE FINANCIAL STATEMENTS

26. 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

Financial liabilities

Trade and other creditors

27. ACQUISITION OF SUBSIDIARY

Carrying Amount

Fair Value

2012

$’000

6,646

4,033

693

2011

$’000

8,820

4,044

2,091

2012

$’000

6,646

4,033

693

2011

$’000

8,820

4,044

2,091

2,901

2,667

2,901

2,667

On 2 September 2011, Infomedia Ltd acquired 100% of the share capital of Diff erent Aspect Software Ltd for $4,719,000
in cash. Diff erent Aspect Software Ltd is a UK based software developer specialising in the provision of IT application
solutions to the automotive industry.

As a result of the acquisition, the group is expected to further improve its off erings of software products in the automotive
space. Goodwill of $3,182,000 arising from the acquisition is attributable to the assembled workforce and potential for cost
saving synergies and cross selling opportunities. None of the goodwill recognised is expected to be deductible for income
tax purposes.

The following table summarises the consideration paid for Diff erent Aspect Software Ltd, the fair value of assets acquired
and liabilities assumed at the acquisition date.

Consideration at 2 September 2011

Cash

Total consideration transferred

4,719

Recognised amounts of identiﬁ able assets acquired and liabilities assumed

Cash and cash equivalents

Property, plant and equipment

Inventories

Trade and other receivables

Intellectual property

Other intangibles

Trade and other payables

Deferred revenue

Deferred tax liability

Provision for tax

Total identiﬁ able net assets

Goodwill

Total

103

246

578

1,071

(339)

(275)

100

1,537

3,182

4,719

Acquisition-related costs of $158,000 are included in Other expenses in the consolidated income statement for the year
ended 30 June 2012. The revenue included in the consolidated statement of comprehensive income since 2 September
2011 contributed by Diff erent Aspect Software Ltd was $1.2m. Diff erent Aspect Software Ltd contributed proﬁ t $214,000
over the same period.

Had the acquisition of Diff erent Aspect Software Ltd been eff ected at 1 July 2011, management estimates revenue of the
group for the 12 months ended 30 June 2012 would have been $1.45m and the proﬁ t would have been $250,000.

64. INFOMEDIA.COM.AU

NOTES TO THE FINANCIAL STATEMENTS

28. SUBSEQUENT EVENTS

29. PARENT ENTITY INFORMATION

Current assets

Total assets

Current liabilities

Total liabilities

Contributed equity

Retained earnings

Employee equity beneﬁ t reserve

Cashﬂ ow hedge reserve

Total shareholders’ equity

Proﬁ t or loss of the parent entity

Total comprehensive income of the parent entity

30. INTERESTS IN CONTROLLED ENTITIES

Parent Entity

2012

2011

$’000

9,601

45,411

4,873

10,453

10,798

23,619

485

34,958

7,273

6,295

$’000

14,532

46,079

4,961

10,709

10,798

21,899

1,210

1,463

35,370

10,014

9,358

Name

Country of
incorporation

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

Parent entity

IFM Europe Ltd

- ordinary shares

United Kingdom

Diff erent Aspect Software Ltd**

- ordinary shares

United Kingdom

IFM North America Inc

- ordinary shares

IFM Germany GmbH*

United States of
America

2012

100

2011

100

- ordinary shares

Germany

100

2012

247

4,719

4,967

2011

247

248

* Investment is held by IFM Europe Ltd.

** Entity was purchased on 2 September 2011

INFOMEDIA.COM.AU 65.

DIRECTORS’ DECLARATION

Directors’ Declaration

In accordance with a resolution of the directors of Infomedia Limited, I state that:

In the opinion of the directors:

(a)

the ﬁ nancial statements and notes of the consolidated entity are in accordance with the Corporations Act 2001,
including:

(i) giving a true and fair view of the consolidated entity’s ﬁ nancial position as at 30 June 2012 and of their

performance for the year ended on that date; and

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

(b)

the ﬁ nancial statements and notes also comply with International Financial Reporting Standards as disclosed in note 2b

(c)

there are reasonable grounds to believe that the consolidated entity will be able to pay its debts as and when they
become due and payable.

(d)

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 ending 30 June 2012.

On behalf of the Board

RICHARD DAVID GRAHAM
Chairman
Sydney
23 August 2012

66. INFOMEDIA.COM.AU

Tel: 61 2 9251 4100
Fax: 61 2 9240 9821
www.bdo.com.au

Level 10, 1 Margaret St
Sydney NSW 2000
Australia

INDEPENDENT AUDITOR’S REPORT

To the members of Infomedia Limited

Report on the Financial Report

We have audited the accompanying financial report of Infomedia Limited, which comprises
the statement of financial position as at 30 June 2012, the statement of comprehensive
income, the statement of changes in equity and the statement of cash flows for the year then
ended, notes comprising a summary of significant accounting policies and other explanatory
information, and the directors’ declaration of the consolidated entity comprising the company
and the entities it controlled at the year’s end or from time to time during the financial year.

Directors’ Responsibility for the Financial Report

The directors of the company are responsible for the preparation of the financial report that
gives a true and fair view in accordance with Australian Accounting Standards and the
Corporations Act 2001 and for such internal control as the directors determine is necessary to
enable the preparation of the financial report that gives a true and fair view and is free from
material misstatement, whether due to fraud or error. In Note 2(b), the directors also state,
in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that
the financial statements comply with International Financial Reporting Standards.

Auditor’s Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial report. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material misstatement of the financial
report, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the company’s preparation of the financial report that gives a
true and fair view in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
company’s internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by the
directors, as well as evaluating the overall presentation of the financial report.

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

Independence

In conducting our audit, we have complied with the independence requirements of the
Corporations Act 2001. We confirm that the independence declaration required by the
Corporations Act 2001, which has been given to the directors of Infomedia Limited, would be
in the same terms if given to the directors as at the time of this auditor’s report.

Opinion

In our opinion:

(a) the financial report of Infomedia Limited is in accordance with the Corporations Act

2001, including:

(i) giving a true and fair view of the consolidated entity’s financial position as at 30

June 2012 and of its performance for the year ended on that date; and

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

(b) the financial report also complies with International Financial Reporting Standards as

disclosed in Note 2(b).

Report on the Remuneration Report

We have audited the Remuneration Report included in pages 7 to12 of the directors’ report
for the year ended 30 June 2012. The directors of the company are responsible for the
preparation and presentation of the Remuneration Report in accordance with section 300A of
the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration
Report, based on our audit conducted in accordance with Australian Auditing Standards.

Opinion

In our opinion, the Remuneration Report of Infomedia Limited for the year ended 30 June
2012 complies with section 300A of the Corporations Act 2001.

BDO East Coast Partnership

Grant Saxon
Partner

Sydney, 23 August 2012

CORPORATE GOVERNANCE

INFOMEDIA LTD

CORPORATE GOVERNANCE STATEMENT FY2012

OVERVIEW

Infomedia’s adoption of ‘best practice’ Corporate Governance Principles

Infomedia continually strives to ensure an acceptable level of compliance with the voluntary governance principles set
out in the ‘Corporate Governance Principles and Recommendations 2nd Edition with 2010 Amendments‘ published by the
Australian Stock Exchange’s (ASX) Corporate Governance Committee (the ASX Principles).

The ASX Principles are a voluntary code and compliance is not mandatory. Infomedia strives to meet the ASX Principles in
a manner consistent with the resources, size and operational scope of the Company. To the extent that Infomedia is non-
compliant with particular elements of the voluntary framework, the Company embraces the “If not, why not?” principle, and
provides explanatory materials relating to those compliance discrepancies.

ASX – Corporate Governance Principles

PRINCIPLE 1
Lay solid
foundations for
management
and oversight

PRINCIPLE 2

Structure the
Board to
add value

PRINCIPLE 8

Remunerate fairly
and responsibly

PRINCIPLE 7

Recognise and
manage risk

ASX
CORPORATE
GOVERNANCE
PRINCIPLES

PRINCIPLE 3

Promote ethical
and responsible
decision making

PRINCIPLE 6

Respect the rights
of shareholders

PRINCIPLE 4

Safeguard integrity
in ﬁnancial
reporting

PRINCIPLE 5

Make timely
and balanced
disclosures

The ASX Principles provide a standard platform from which Infomedia implements and maintains a range of charters,
policies and procedures applicable to the Company (the Policies). Infomedia’s Policies seek to instil and entrench the values,
standards and behaviours required to ensure transparency, effi cient resource allocation and protection of stakeholder
interests. Further information about the Policies is available at http://www.infomedia.com.au/?Page=CorporateGovernance

CORPORATE GOVERNANCE STATEMENT

PARTIAL NON-COMPLIANCE WITH THE ASX PRINCIPLES –“IF NOT, WHY NOT?”

As a voluntary set of guidelines, compliance with the ASX Principles is not mandatory.

In order to encourage participation, and in recognition of the fact that the resources and operating environments vary
between participants, the ASX Principles provide organisations with the ﬂ exibility to comply in full or in part. This ﬂ exibility
is tempered by the adoption of the “If not, why not?” principle, encouraging the Company to provide reasons for non-
compliance with particular parts of the ASX Principles.

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CORPORATE GOVERNANCE

Whilst Infomedia strives to meet the ASX Principles, it does so in a manner consistent with the resources available to it,
and within the context of its operating environment.

During FY2012, Infomedia was non-compliant with several of the ASX Principles. The following sections contain
commentary on the areas of both compliance and non-compliance, and provide relevant commentary in accordance with
the “If not, why not?” framework.

THE BOARD, SUB-COMMITTEES AND SENIOR MANAGEMENT

2.1 Composition and structure of the Board

The composition and size of Board has been primarily shaped by Infomedia’s Constitution. Relevantly, the Constitution
provides that:

(a)

the Company must maintain a minimum of three and a maximum of seven directors;

(b) 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, retiring directors may off er
themselves for re-election.

Careful consideration is given to the contribution each director is able to make both individually and collectively. There
is strong emphasis on promoting, among other attributes, an appropriate mix of complementary skills, independence,
expertise, business knowledge and executive and non-executive participation.

As noted in the Directors’ Report, Mr Geoff rey Henderson was elected to the position of Non-Executive Director during
FY2012. Mr Henderson’s appointment has signiﬁ cantly contributed to the depth of industry speciﬁ c knowledge and
experience of the Board, and imparts further independence to its operation.

Following the appointment of Mr Henderson, the Infomedia Board is comprised of four Directors. The details of each
Director’s name, terms of offi ce, committee memberships, meeting attendance records, skills experience and expertise,
appear in the Directors’ Report.

2.2

Independence of the Chair

Following the resignation of the Chief Executive Offi cer on 31 August 2010, Mr Richard Graham, after a six-year absence
from the Company’s executive, resumed the duties of the Chief Executive Offi cer in his role as Executive Chairman. Mr
Graham assumed this duty in addition to his continuing role as Chairman of the Board. Mr Graham also remains the
Company’s largest shareholder.

For the reasons outlined above, the Company does not comply with:

(a) ASX Principle 2.2 - The chair should be an independent Director; and

(b) ASX Principle 2.3 - The roles of the chair and the chief executive offi cer should not be exercised by the same

individual.

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 given his wealth of experience. Additionally, the Board
derives comfort from:

(a)

the Board Charter permitting Board members to elect a non-executive Director to chair informal meetings of non-
executive Directors; and

(b)

the ability of the Directors to seek independent professional advice, made available at the expense of the Company.

2.3

Independence of the Board

ASX Principle 2.1 calls for the majority of the Board to be independent, non-executive Directors.

As currently comprised, the Board has three non-executive Directors in the form of Ms Frances Hernon, Mr Geoff rey
Henderson and Mr Myer Herszberg.

Whilst Ms Hernon and Mr Henderson meet the criteria for independence, Mr Herszberg’s independence is technically
compromised by his standing as a substantial shareholder of the Company. Accordingly, the Company does not technically
comply with ASX Principle 2.1.

However, in light of the relevant quantitative and qualitative considerations, the Board considers Mr Herszberg to be
operating with independence and objectivity, notwithstanding his shareholding in the Company.

70. INFOMEDIA.COM.AU

CORPORATE GOVERNANCE

The independence of the Board is subject to continual evaluation. 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.

2.4 Establishment of nomination and remuneration committees

The ASX Principles recommend that the Board should establish:

(a) a nominations committee for the examination of selection, recruitment and succession practices of the Company

(ASX Principle 2.4); and

(b) a remuneration committee to focus on remuneration policies (ASX Principle 8.1).

The Board has assumed responsibility for remuneration and nomination since July 2007.

Given the relative size and resources available to the Company, the Board is of the view that neither a nominations nor a
remuneration committee would add any signiﬁ cant corporate governance value for the following reasons:

(a) given the size and structure of the Board, there is little effi ciency to be derived from sub-committees other than the

Audit, Risk & Governance Committee (Audit Committee);

(b) ultimate responsibility for nominations and remuneration rests with the Board whether or not a nomination or

remuneration sub-committee is established;

(c)

(d)

the Board has processes in place to raise issues relating to nomination and remuneration in the form of regular
reporting by senior management (including detailed reports from the Human Resources Manager) on such matters; and

the Company maintains a formal policy for the nomination and induction of Directors (Director Nomination and
Induction Policy), a summary of which is available on Infomedia’s website.

The Company has formalised a policy for the nomination and induction of Directors (Director Nomination and Induction
Policy), a summary of which is available on the Company website.

2.5 Board charter and responsibilities

A formal charter documenting the appropriate division between the responsibilities of the Board and management has
been in place since July 2004. The Charter mandates the Board’s focus on the following key matters:

(a) developing the Company’s overall objectives;

(b) developing and mandating strategies to achieve Company objectives;

(c)

setting overall policy framework within which the business of the Company is conducted; and

(d) ensuring that the Company operates with integrity and in accordance with good management and governance practices.

A summary of the Charter of the Board is available on the Company’s website.

2.6 Audit, Risk & Governance Committee

Please refer to section 3.1 below for a report on the activities of the Audit Committee.

ETHICAL BUSINESS CONDUCT

3.1

Infomedia’s Code of Conduct

Since its inception, Infomedia has placed emphasis on personal integrity, mutual respect and ethical business practices as
core values (Core Values). The Company’s dedication to these Core Values was formalised by the introduction of a formal
Code of Conduct in 2004. The Code was further reﬁ ned under the guidance of the Corporate Governance Committee
during FY2006 to:

(a)

strengthen formal resolution strategies for intra-organisational disputes; and

(b) provide clearer reporting guidelines with regard to compliance mechanisms.

The Infomedia Code of Conduct strengthens the Company’s commitment to the Core Values by articulating and formally
entrenching positive cultural values within the Company, and by providing guidance on dealings with various stakeholders.
A summary of the Code of Conduct is available on the Company’s website.

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CORPORATE GOVERNANCE

3.2 Workplace Diversity

The Company has historically dedicated itself to principles of equality and diversity within the workplace, and remains
steadfastly committed to that goal. The Company has consistently achieved annual accreditation from the Department of
Equal Opportunity for Women in the Workplace for over a decade.

Given the relative size and resourcing of the Company, it did not maintain formal measurable objectives or policies relating
to diversity during the reporting period, therefore placing it outside of technical compliance with ASX Principles 3.2 and 3.3.

In accordance with ASX Principle 3.4, the following proportional split of employees was recorded as at 31 March 2012: