AdvancedCompositesManufacturingAnnual Report 2016AEROSPACELEADINGAUTOMOTIVE TECHNOLOGYACN 096 268 156 Quickstep’s vision is to be a world leader in advanced composites manufacturing and a global parts solutions provider at the forefront of advanced composites manufacturing and technology development.1 Highlights2 Chairman’s Report6 CEO and Managing Director’s Report10 Where to Next?12 Directors and Senior Managers14 Our People16 Financial Report17 – Directors’ Report24 – Remuneration Report35 – Financial Statements75 – Shareholder Information77 – Corporate Directory 1 HighlightsQuickstep is today the largest independent carbon fibre composites manufacturer in Australia.Highlights$120m$14.2m$50.1mup 27% from $39.5mincrease of $45m from 2015SALES FIRM ORDER BOOKNET ASSETS$3.5mup from $2.1mR+D INVESTMENTAEROSPACE SALES46%Aerospace manufacturing sales up $15.4m FY16 was a year of significant capital expansion for Quickstep, as we prepared
the business for higher volume manufacturing of advanced carbon fibre
components and assemblies in the future. We have invested heavily in
additional process capability at our Bankstown facilities to accommodate
higher levels of expected production for the JSF program over the coming years
and we have established a new facility in Waurn Ponds to support development
programs for our growing New Technology activities.
Quickstep’s vision is to become a
world leader in advanced composites
manufacturing and we are now achieving
significant progress in technology
development. To achieve this vision,
we need to have a highly capable
management and R&D team, we need
the necessary assets on the ground
to manufacture parts and we need
to undertake several development
and demonstrator projects to fully
commercialise and validate our
New Technology. In FY16 we set about
putting all these elements in place,
as a foundation for our future growth
and expansion.
Our financial results for FY16 reflect our
continued focus on growth, with sales
revenue rising from A$39.5 million in FY15
to A$50.1 million in FY16. This revenue
increase was predominantly the result
of aerospace growth for both our C-130J
and JSF programs. As at 30 June 2016,
we have a forward order book valued in
excess of A$120 million. This includes
committed orders from Lockheed Martin,
Northrop Grumman and BAE Systems for
C-130J and JSF Program components.
Manufacturing under these committed
orders will extend through to FY19.
Earnings before interest, tax, research
and development and significant
items for FY16 were A$4.0 million,
up 200% from A$1.3 million in FY15,
driven by Quickstep’s Aerospace
Manufacturing activities.
During the course of FY16, Quickstep
successfully completed a fully
underwritten A$22 million (before costs)
capital raising. The raising is being used
to fund capital expenditure associated
with our forward sales pipeline; to
strengthen our balance sheet by reducing
short term debt; to set up Quickstep’s
New Technology R&D and manufacturing
facility at Waurn Ponds; and enable
Quickstep to continue to commercialise
the application of the company’s existing
technologies. These programs are all in
line with expectations.
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Aerospace saw the ramp-up in
volumes for JSF and commencement of
deliveries for vertical tails following the
qualification for spars, fairings and skins.
Deliveries were on or ahead of customer
expectations with JSF meeting the higher
volume requirements with a 27% increase
in volume over the prior year. Capital
investment continues to provide capacity
for the projected JSF volume growth in
coming years.
Our New Technology manufacturing
site in Waurn Ponds is operational and
has commenced the production of two
small volume programs. Several new
manufacturing projects were commenced
in FY16, mainly involving the application
of our advanced composites solutions
capabilities and adoption of our New
Technology. These include:
– Ford Australia: Manufacture of a
carbon fibre air intake duct for Ford’s
XR6 Sprint performance car
– Thales Australia: Development and
manufacture of a range of composite
body parts and assemblies, including
bonnets, mudguards and skirting rails
for the Hawkei military vehicle
– Korea Institute of Science and
Technology (KIST): Manufacture and
supply of composite manufacturing
equipment, including our patented
RST and Qure technologies, to a
South Korean research institute
$50.6m
Up 23% from $41.3m
With regard to capital expenditure,
we invested over A$4.0 million in
FY16 in support of our growth plans
for our Bankstown and Waurn Ponds
manufacturing operations. In Bankstown
this investment has gone into additional
manufacturing capacity to support the
contracted C-130J and JSF programs and
further programs currently in discussion.
In Waurn Ponds we have invested in the
establishment of a New Technology R&D
and manufacturing facility. The Waurn
Ponds site features a fully operational
Resin Spray Transfer (RST) cell and Qure
machine, along with other manufacturing
equipment to produce advanced
composite components and assemblies.
We received grants relating to capital
of A$0.6 million for the Waurn Ponds
investment. I would like to take this time
to acknowledge the support given to us
for this activity, through the Geelong
Region Innovation and Investment Fund
(GRIIF), an initiative funded by the
Federal and Victorian governments and
Ford Australia.
FY16 saw a significant strengthening
of our management team, with the
recruitment of a number of senior
management personnel in the fields of
Operations, Finance, Engineering, Human
Resources and Business Development. We
now have a highly capable management
team, with extensive aerospace,
broader manufacturing and automotive
experience, who are experienced in
establishing and running advanced
manufacturing facilities globally as well
as in Australia.
Our R&D team has been significantly
strengthened with the relocation of our
Global R&D and Technology Centre from
Munich, Germany, to Deakin University’s
Waurn Ponds Campus in Victoria. We
now have a highly skilled team operating
there, supported by a long-term Strategic
R&D and Education Agreement with
Deakin University. I would like to take
this opportunity to thank the Victorian
Government’s investment promotion
arm, Invest Victoria, for their support
in this relocation. The team in Germany
remain focused on R&D projects aligned
with the Waurn Ponds team and further
development with European based
aerospace and automotive customers.
CAPITAL EXPANSION
AND NEW
TECHNOLOGY
COMMERCIALISATION
Chairman’s
Report
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TOTAL REVENUE
$14.2m NET ASSETS
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5 Chairman’s ReportQuickstep is also engaged in several development projects which are expected to lead to production contracts, with the further commercialisation of Quickstep’s Qure and RST technologies. The projects include the development of innovative composite parts and assemblies for the aerospace, defence, automotive, marine and other transportation industries.As Chairman, I would like to recognise the ongoing support of our shareholders, our customers and my fellow Board members. I would like to thank David Marino, our CEO and Managing Director, the executive management team and all of the Quickstep staff, for their hard work and dedication throughout FY16. I would also like to express my thanks to all of the members of the Quickstep senior management team that left us in FY16 and to David Singleton, who retired from the Board in January 2016 to take on the role of CEO at Austral Limited. I would also like to acknowledge James Douglas, who joined the Board in December 2015, and we look forward to his contributions to the growth of the business. Your Company has set itself up in FY16 for a strong future in advanced composites manufacturing. The aerospace, defence, marine and other transportation industries continue to demand greater volumes of carbon fibre composites and Quickstep has focused its business and products to provide cost effective components for these industries and we have proven our ability to support global supply chains. We maintain a healthy balance sheet and are investing for future growth at the Company’s premises at Bankstown for aerospace and defence and in Waurn Ponds and Munich for our New Technology. FY17 will see a continuation of the program, with a number of development projects underway, utilising our New Technology, which will establish a platform for the supply to volume production programs across our targeted industry sectors. FY17 will see us continue to invest in new technology, product development and capital to further enhance our future order book and deliver long term value for all our shareholders.TONY QUICKChairmanChairman’s Report continued$50.1mup 27% from $39.5mSALES AEROSPACE MANUFACTURING
GROWTH AND
NEW TECHNOLOGY
COLLABORATION FOCUS
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CEO and
Managing Director’s
Report
I am pleased to report that in FY16 Quickstep has continued to make substantial
progress towards becoming a leading global provider of advanced composite
components and manufacturing processes for the aerospace, defence, marine,
automotive and other transportation sectors. The aerospace manufacturing
business is growing and profitable. Investment has been boosted in our new
technology business to enable Quickstep to work on a number of collaborative
development programs with our customers to deliver future growth.
In FY16 we achieved an increase in
sales revenue of 27% to A$50.1 million,
compared to A$39.5 million in the
previous year. We delivered 35 ship-sets
to Lockheed Martin for the C-130J
program in FY16. We also increased the
production rate of components for the
Joint Strike Fighter (JSF) program, with
558 JSF parts delivered to Northrop
Grumman in the year and we achieved
successful qualification of our parts for
the JSF vertical tails project with BAE
Systems. The first 32 vertical tail parts
have been supplied to Marand Precision
Engineering Pty Ltd (Marand), for the final
Vertical Tail assembly.
We have delivered strongly in support
of our committed Aerospace programs
at Bankstown. Our firm order book now
stands in excess of A$120 million, up 67%
on the prior year, and reflects increased
orders for Quickstep’s JSF and C-130J
aerospace contracts.
Our vision is to become a world leader
in advanced composites manufacturing
and we have set about achieving this
through the further industrialisation of
our process technologies and undertaking
a number of development programs,
in two key areas:
– Aerospace Manufacturing:
As a proven manufacturer of advanced
carbon fibre composite components and
complex assemblies for the Defence
Aerospace sector, we are actively in
discussions with both existing and
new customers for the increased
manufacturing of ‘build to print’
components
– New Technology:
Quickstep has developed patented
process technologies for the
manufacturing of composite components.
We are currently collaborating with
a number of potential customers on
the development of demonstrator
parts utilising our proprietary process
technologies and unique engineered
solutions. Our intention is to achieve
strong customer value propositions
for the supply of exterior panels,
skins and interior structures for the
growing Automotive and Aerospace
composite markets.
Aerospace Manufacturing
Aerospace Manufacturing sales for
FY16 were up 46% to $49.2 million and
achieved a gross profit increase of 49%
compared to the prior corresponding
period (pcp) underpinned by strong
JSF growth and higher than average
production of C-130J wing flaps. The
increase in profitability from Aerospace
manufacturing ensures that capital
expenditure at Bankstown is funded
by its own earnings.
Capital expenditure programs continued
in preparation for the planned growth
in the JSF program and the ramp up
in Vertical Tail production. In addition,
significant investment in production
optimisation of the C-130J project
was made, with state of the art highly
automated robotic drilling program
underway. It is expected that the major
capital investment will be completed
during FY17 which will facilitate further
‘build to print’ growth at Bankstown.
Employment numbers increased at
Bankstown underpinning both current
and anticipated sales growth. Employee
training and development continues as
the JSF team targets a 100 parts per
month production rate and the return
to a long term C-130J production rate of
24 ship sets per year. This has allowed
for the transfer of skilled production
employees into the JSF program.
With the increased volume,
manufacturing optimisation in the
key areas of labour utilisation, asset
performance, inventory and scrap
reduction remain a key focus of our
growing Aerospace Manufacturing
business to optimise performance.
New Technology Industrialisation
Throughout FY16 we continued to advance
the industrialisation of both our Qure and
Resin Spray Transfer (RST) technologies
for use in the aerospace, defence, marine,
automotive and other transportation
sectors. These disruptive processes
provide significant value propositions,
in terms of cost, process speed and
quality to our targeted customers and
these technologies are especially relevant
to end-users with parts programs in the
volume range of up to 30,000 units
per annum.
Our industrialisation activities have
focussed on development and application
of both our Qure and RST technologies to
manufacture components for end-users
in our targeted industry sectors. Over
the course of the next 18 months, we
are targeting a number of niche volume
projects, while continuing to develop and
scale-up our next-generation RapidQure
technology which will provide increased
volume capability to enable us to secure
larger production projects.
Also in FY16 we commenced a number
of advanced composite projects that are
establishing our credentials and solution
capabilities outside the aerospace sector
and this will lead to additional supply
opportunities in both the domestic and
export markets. These projects include
activities with Ford Australia, Thales
Australia, Korea Institute of Science and
Technology (KIST), DCNS Group (a French
naval shipbuilding company and European
leader in naval defence), and several
other composite end-users.
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AEROSPACE SALES 46%
Aerospace manufacturing
sales up $15.4m to $49.2m
CEO and Managing Director’s Report continued
We look forward
to another year of
technology, parts
development and
growth in FY17.
Ford Falcon XR6 Sprint
In early FY16, we secured a contract with
Ford Australia to manufacture carbon
fibre air intake ducts for the Ford Falcon
XR6 Sprint sports car. Manufacturing
commenced at Waurn Ponds in February
2016 and successfully demonstrated
the company’s ability to move from
contract to production start-up in under
8 months and to deliver 377 components
by 30 June. This sports car is the first
global mass-produced Ford to feature
a carbon fibre air intake system and
the first commercial automotive vehicle
to feature a part made by Quickstep.
Importantly, the project has shown
rate production, quality and delivery
performance capability to Ford which
provides confidence for future programs.
It has also provided an opportunity
to participate in the Automotive
Transformation Scheme (ATS), an
AusIndustry fund supporting investment
in Innovation in the automotive sector.
Thales Hawkei Project
In October 2015, the Federal Government
confirmed that Thales Australia was
successful in securing the supply contract
to build the next generation of armoured
vehicles for the Australian Defence Force.
Quickstep is contracted to manufacture
a range of composite body parts for
Thales Australia.
Quickstep has already completed the
first set of composite parts for Thales
Australia’s Hawkei light protected vehicle,
for which it is the exclusive supplier of
the bonnet, side skirts and mud guards.
Before the end of September 2016,
ten sets of parts comprising more than
190 individual components. Low-volume
production for this project is expected
to commence in FY17.
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Korea Institute of Science and
Technology (KIST)
In April 2016, Quickstep entered into
an agreement with KIST, a major South
Korean research centre, to design and
install an RST cell and Qure machine for
R&D purposes, supporting the automotive
and aerospace sectors in South Korea.
We plan to supply this manufacturing
equipment to KIST by end of calendar
2016. The manufacturing system for KIST
will be optimised for niche- to medium-
volume automotive industry production.
This contract opens up potential
component supply opportunities for
Quickstep in South Korea, one of
the world’s largest automotive
production markets.
Collaborative Development Focus
During the year Quickstep decided to
enter into a number of collaborative
development projects intended to
deliver commercial parts for the end-user
and advance the industrialisation of
our New Technology offerings.
These projects involve the design of
composite alternatives for existing
metal parts or developing demonstrator
parts for evaluation or demonstrate
improved production rates to current
autoclave processes. Development,
manufacturing, planning and testing
for these projects is expected to lead
to production opportunities with our
collaboration partners.
Quickstep is currently engaged in several
development projects with tier-1 industry
suppliers for interior structures and
external panels and skins. These projects
are expected to lead to niche production
contracts utilising Quickstep’s Qure and
RST technologies in the near future.
An example of this collaborative process
was the Memorandum of Understanding
(MoU) with DCNS Group, a European
leader in naval defence. DCNS has been
selected by Australian Government as
preferred partner for design of twelve
submarines for Royal Australian Navy.
This MoU is for joint cooperation in
technology transfer, R&D projects and
component manufacturing opportunities.
Outlook for FY17
The Quickstep Board and our executive
management team have established
targets, strategies and implementation
plans for FY17 to achieve:
Aerospace Manufacturing
– A safe working environment for all
employees of Quickstep
– Growth in our Bankstown build to print
business by furthering our relationship
with Lockheed Martin, Northrop
Grumman and BAE Systems
– A continued positive operating cash
flow at Bankstown by a reduction in
inventory and scrap and enhanced
labour utilisation
– The JSF-contracted volume
increases in FY18 and FY19 will be
achieved by completing the planned
capital investment program and
the implementation of the people
development and training plans.
New Technology
– Work with global customers on
product development programs and
demonstrator parts to integrate the
new technology into future automotive
production programs and consequently
secure larger contracts with those
customers
– Continue to grow the engineering
and design capabilities to become
a full-service supplier with a focus
on industrialising composites
manufacturing to the automotive and
other transport sectors
– Match material and process
technologies to meet the increasing rate
requirements of the transport sectors
particularly for volumes of 10,000 –
30,000 units per annum
– Work with partners (Deakin, CSIRO
& key suppliers) on material science
programs
We look forward to another year of
technology, parts development and
growth in FY17.
FIRM ORDER BOOK
$120m
Increase of $45m
In closing, I would like to sincerely thank
all of our shareholders, customers and
collaboration partners for their ongoing
support and confidence in Quickstep
and the future of the Company. I would
also like to acknowledge the guidance
offered by the Board of Directors,
the commitment of the executive
management team and the hard work
of all of our dedicated employees that
are developing and industrialising our
process technologies; collaborating on
development projects and; delivering
manufactured parts to our existing
customers — your efforts are greatly
valued and appreciated.
DAVID MARINO
CEO and Managing Director
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Quickstep has invested heavily in both its Aerospace Manufacturing and New
Technology activities. FY2017 will see the further transition from being an R&D
company, to an advanced composites manufacturing business.
Quickstep is well
positioned to
become a global
leader in composite
manufacturing
solutions.
Aerospace Manufacturing
– Complete capital investment plan to
support our future contracted growth
– Surpass volumes of 100 parts per
month for JSF
– Deliver manufacturing efficiencies
and reduce inventory post capital
installation
– Leverage existing customer
relationships on new project
opportunities
New Technology
– Work with global customers on
product development programs and
demonstrator parts for future contracts
– Continue the commercialisation of New
Technology manufacturing through
maturing of the RapidQure process
– Win contracts for target products
– Deliver Qure and RST to KIST, with 30
minute part cure time & Class A surface
performance
– Win new customer build-to-print
– Continue to grow engineering and
programs
design capabilities to deliver full-service
supply to our growing customer base
– Work with partners (Deakin, CSIRO, key
suppliers) on material science programs
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GLOBAL COMPOSITES SOLUTIONS
ADVANCED MANUFACTURING
NEW TECHNOLOGY
Where to next?
To achieve our vision of being
a world leader in advanced
composites manufacturing,
we are focused on building
on the long-term Aerospace
Manufacturing contracts now
that our capability is proven
and additional capacity has
been created, and on continuing
the product development
and commercialisation of our
New Technology offerings
for application in the global
Aerospace, Defence, Automotive
and other Transport sectors.
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Directors and
Senior Managers
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Our strengthened
management team has
the skills and experience
to deliver our strategy
and growth plans.
Quickstep has refreshed its senior
management team over the past 18
months. The new management team has
extensive experience across a range of
professional disciplines and business
environments, including international
market expertise.
Managing Director, David Marino, now
leads a strengthened and dedicated
management team, with the experience
to deliver the company’s growth plans
and performance targets.
13 Directors and Senior ManagersThe Directors of Quickstep have a broad range of experience across the Aerospace, Defence, Automotive and Financial sectors. Our Board members are active within the carbon fibre industry, technology development and participate in numerous government and defence programs.The Quickstep Board is dedicated to delivering on the company’s vision of becoming a global leader in advanced composites solutions.The Directors of Quickstep are committed to delivering ongoing value to our shareholders, customers and our people Our PeopleWe have a highly skilled and dedicated workforce at all three of our locations. With strong composites capabilities, we are ready to provide advanced composite solutions to the Aerospace, Defence, Automotive and other Transport sectors.Our people are our most important asset and have the skills and capabilities to deliver our vision.14 Our People 15 Our PeopleEXPERTISELEADERSHIPPROFESSIONAL 16 Financial ReportFinancialReportQuickstep delivered strong sales revenue of $50.1 million and EBIT pre R&D and significant items of $4.0 million. The company strengthened the Balance Sheet and invested in capital and R&D for future growth. 17 Financial Report The directors present their report on the consolidated entity consisting of Quickstep Holdings Limited and the entities it controlled at the end of, or during, the year ended 30 June 2016. Throughout the report, the consolidated entity is referred to as the Group. Directors The following persons were directors of Quickstep Holdings Limited during the whole of the financial year and up to the date of this report: Mr. T H J Quick Mr. D J Marino Mr. N I Ampherlaw Mr. P C Cook Mr. B A Griffiths Air Marshal E J McCormack (Ret’d) Mr. J C Douglas was appointed as director on 19 December 2015 and continues in office at the date of this report. Mr. P M Odouard was a director from the beginning of the financial year until his resignation on 15 October 2015. Mr. D P A Singleton was a director from the beginning of the financial year until his resignation on 21 January 2016. Principal activities During the year the principal continuing activities of the Group consisted of: • production of parts to Northrop Grumman for the Joint Strike Fighter Project • production of C-130J wing flaps for Lockheed Martin • producing parts for Joint Strike Fighter vertical tails for BAE Systems and Marand • manufacturing and development of parts for the automotive industry • continued development of RST and Qure technologies for scaled volume production (RapidQure) Dividends No dividends have been paid during the financial year. The Directors do not recommend that a dividend be paid in respect of the financial year (2015 $Nil). Review of Operations Information on the operations and financial position of the Group and its business strategies and prospects is set out in the review of operations and activities included in the CEO & Managing Directors’ review on pages 6 to 9 of this annual report. Significant changes in the state of affairs Contributed equity increased by $20,890,000 (from $88,228,000 to $109,118,000) as the result of a capital raising initiative comprising an institutional placement of $5,000,000 for 33,333,333 shares at an exercise price of $0.15 cents per share and an entitlement offer to existing shareholders at an exercise price of $0.13 cents per share for 130,672,256 shares. Details of the changes to contributed equity are disclosed in Note 9 to the financial statements. The net cash received from the increase in contributed equity was used principally to repay borrowings, commence a capital expansion program and fund new technology development. During FY16, the Group set up a new R&D and manufacturing facility at Waurn Ponds. Ford and Thales production commenced from this facility. This facility is now focussed on product development programs for both global aerospace and automotive customers as the business continues progress towards its strategy of being a composite components manufacturer for automotive and aerospace. There have been no other significant changes in the state of affairs of the Group during the financial year. Events since the end of the financial year No matter or circumstance has arisen since 30 June 2016 that has significantly affected the Group’s operations, results or state of affairs, or may do so in future years. Directors’ Report30 June 2016 Directors’ Report
30 June 2016
Quickstep Holdings Limited
Directors’ report
30 June 2016
Information on directors
The following information is current as at the date of this report
Likely developments and expected results of operations
Strategies, prospects and risks by division
Aerospace Manufacturing
Strategic objective
Continue production ramp of JSF
parts in line with Northrop
Grumman demand
Prospects
Program schedules indicate a
continued increase in sales for
FY17
Risks
To meet the required demand
curve which is mitigated by detailed
capacity plan for the period
Continuing supply of JSF Vertical
Tail composite parts and
assemblies to BAE
Systems/Marand
New contract to optimise assets
and improve overhead utilisation
New Technology
Production commenced in FY16
and is planned to ramp up in FY17
Successful production ramp up
A number of quotations are under
current negotiation with OEMs.
Skills planning in place
Requirements for additional skilled
employees to be able to deliver
increased volume.
Strategic objective
Award of additional Automotive and
Aerospace contracts using RST
and Qure
Prospects
A number of opportunities are
currently under negotiation with
customers
Risks
Adoption of alternative
technologies for the same
opportunities
Technology development of
RapidQure to take advantage of
larger volume manufacturing
opportunities in the global market
Partnerships formally established in
core target market to accelerate
technology deployment
Market growth confirmed
Future capacity constraints for
existing technologies
Product development programs
have commenced
Engagement commenced
Required rate & quality not
achieved
Inability to establish a partnerships
will slow down or increase cost of
deployment
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Shares under options
Unissued ordinary shares of Quickstep Holdings Limited under option at the date of this report are as follows
Mr. Nigel I Ampherlaw B Com, FCA, MAICD – independent non-executive director - appointed 8 July 2013
Date options granted
9 January 2015
Expiry date
31 December 2018
Issue price of Shares
$0.1625
Number under option
25,000,000
No option holder has any right under the options to participate in any other share issue of the Company or any other entity
No options were granted during the year, nor were options granted in prior years exercised during the year ending
30 June 2016. No other options have been granted since the end of the financial year.
(cid:6)
(cid:7)
Mr. Tony H J Quick, MA (Cantab) Chair – independent non-executive director - appointed 14 February 2013
Experience and
expertise
Mr. Quick joined Quickstep following a highly successful career in the aerospace and
defence industries. After graduating from Cambridge University, Mr. Quick spent most of his
career in International Business Development, Program and Business Management. He
joined an Aerospace composites business in 1988 and in 1993 he joined Westland
Helicopters in England where he held senior international business development and
program management roles. In October 2000 he left Westland to emigrate to Australia and,
in 2001, set up GKN Aerospace Engineering Services Pty Ltd to service global demand for
engineering services. The Company’s parent, GKN Aerospace, is one of the world’s largest
independent first-tier suppliers to the global aviation industry providing integrated metal and
composite assemblies for aerostructures and engine products. GKN Aerospace Engineering
Services Pty Ltd provided design services to the F-35 Joint Strike Fighter program for
Lockheed Martin and Northrop Grumman and grew to employ more than 240 aerospace
engineering staff in Australia. He was a Director and General Manager of that company until
2009. Mr. Quick was the Director of the Defence Industry Innovation Centre, Enterprise
Special responsibilities
Chair of the board
Connect from 2009 to 2011.
Chair of the Defence Materials Technology Centre.
Ordinary shares in Quickstep Holdings Limited
456,062
Mr. David J Marino, B Eng (Mech)(Hnrs) - CEO and Managing Director - appointed 16 February 2015
Other current
directorships
Interests in shares and
options
Experience and
expertise
Mr. Marino has over 20 years of manufacturing experience. This includes leading Australian
and International businesses through Asia and the US, directing as many as 1600 people,
and being responsible for revenues in excess of $400 million per annum. Since being
recruited by Ford Australia, Mr. Marino has held a number of diverse roles in engineering,
operations, program and general management with Lear Corporation, Air International and
most recently with Futuris Group as part of the Executive leadership team from 2004 to
2015. He was a key driver in its business globalisation, and held a number of senior roles
including General Manager Seating, Executive General Manager Australia, Executive
General Manager Strategy and Advanced Operations and most recently, Chief Operating
Officer. Mr. Marino has significant experience in Mergers and Acquisitions, led post
integration teams and has also executed partnerships and joint ventures in Australia, South
Africa, Thailand and India. His experience includes serving on local and international joint
venture company boards managed by the Futuris Group, and he was the Chairman of the
Feltex-Futuris board in South Africa. Mr. Marino has completed a number of post graduate
business studies including The General Manager Program (TGMP) at Harvard Business
Special responsibilities
Chief Executive Officer
School (2005).
Other current
directorships
Interests in shares and
options
External Independent Director of Institute of Frontier Materials (IFM). This Board oversees
research, development and commercialisation activities of materials for Deakin University.
Rights to shares in Quickstep Holdings Limited
Ordinary shares in Quickstep Holdings Limited
3,349,138
487,376
Mr. Ampherlaw was a Partner of PricewaterhouseCoopers for 22 years where he held a
number of leadership positions, including heading the financial services audit, business
advisory services and consulting businesses. He also held a number of senior client Lead
Partner roles. He has extensive experience in Risk Management, technology, consulting
Special responsibilities
Chairman of the Audit, Risk and Compliance Committee
and auditing in Australia and the Asia-Pacific region.
Current Directorships include a Non-Executive Directorship with Credit Union Australia,
where he is Chair of the Audit Committee and a member of the Risk Committee and
Remuneration and Nominations Committee; Elanor Investor Group where he is Chair of the
Audit and Risk Committee and a member of the Remuneration and Nominations Committee;
and a Non-Executive Director of the Australia Red Cross Blood Service, where he is a
member of the Finance and Audit Committee and of the Risk Committee. He has also been
a member of the Grameen Foundation Australia Charity Board since 2012.
Ordinary shares in Quickstep Holdings Limited
500,000
Experience and
expertise
Other current
directorships
Interests in shares and
options
Directors’ Report
30 June 2016
Information on directors
The following information is current as at the date of this report
Mr. Tony H J Quick, MA (Cantab) Chair – independent non-executive director - appointed 14 February 2013
Experience and
expertise
Mr. Quick joined Quickstep following a highly successful career in the aerospace and
defence industries. After graduating from Cambridge University, Mr. Quick spent most of his
career in International Business Development, Program and Business Management. He
joined an Aerospace composites business in 1988 and in 1993 he joined Westland
Helicopters in England where he held senior international business development and
program management roles. In October 2000 he left Westland to emigrate to Australia and,
in 2001, set up GKN Aerospace Engineering Services Pty Ltd to service global demand for
engineering services. The Company’s parent, GKN Aerospace, is one of the world’s largest
independent first-tier suppliers to the global aviation industry providing integrated metal and
composite assemblies for aerostructures and engine products. GKN Aerospace Engineering
Services Pty Ltd provided design services to the F-35 Joint Strike Fighter program for
Lockheed Martin and Northrop Grumman and grew to employ more than 240 aerospace
engineering staff in Australia. He was a Director and General Manager of that company until
2009. Mr. Quick was the Director of the Defence Industry Innovation Centre, Enterprise
Connect from 2009 to 2011.
Chair of the board
Chair of the Defence Materials Technology Centre.
Ordinary shares in Quickstep Holdings Limited
456,062
Mr. Marino has over 20 years of manufacturing experience. This includes leading Australian
and International businesses through Asia and the US, directing as many as 1600 people,
and being responsible for revenues in excess of $400 million per annum. Since being
recruited by Ford Australia, Mr. Marino has held a number of diverse roles in engineering,
operations, program and general management with Lear Corporation, Air International and
most recently with Futuris Group as part of the Executive leadership team from 2004 to
2015. He was a key driver in its business globalisation, and held a number of senior roles
including General Manager Seating, Executive General Manager Australia, Executive
General Manager Strategy and Advanced Operations and most recently, Chief Operating
Officer. Mr. Marino has significant experience in Mergers and Acquisitions, led post
integration teams and has also executed partnerships and joint ventures in Australia, South
Africa, Thailand and India. His experience includes serving on local and international joint
venture company boards managed by the Futuris Group, and he was the Chairman of the
Feltex-Futuris board in South Africa. Mr. Marino has completed a number of post graduate
business studies including The General Manager Program (TGMP) at Harvard Business
School (2005).
Chief Executive Officer
External Independent Director of Institute of Frontier Materials (IFM). This Board oversees
research, development and commercialisation activities of materials for Deakin University.
Rights to shares in Quickstep Holdings Limited
Ordinary shares in Quickstep Holdings Limited
3,349,138
487,376
Special responsibilities
Other current
directorships
Interests in shares and
options
Special responsibilities
Other current
directorships
Interests in shares and
options
Mr. David J Marino, B Eng (Mech)(Hnrs) - CEO and Managing Director - appointed 16 February 2015
Experience and
expertise
Mr. Nigel I Ampherlaw B Com, FCA, MAICD – independent non-executive director - appointed 8 July 2013
Experience and
expertise
Mr. Ampherlaw was a Partner of PricewaterhouseCoopers for 22 years where he held a
number of leadership positions, including heading the financial services audit, business
advisory services and consulting businesses. He also held a number of senior client Lead
Partner roles. He has extensive experience in Risk Management, technology, consulting
and auditing in Australia and the Asia-Pacific region.
Chairman of the Audit, Risk and Compliance Committee
Current Directorships include a Non-Executive Directorship with Credit Union Australia,
where he is Chair of the Audit Committee and a member of the Risk Committee and
Remuneration and Nominations Committee; Elanor Investor Group where he is Chair of the
Audit and Risk Committee and a member of the Remuneration and Nominations Committee;
and a Non-Executive Director of the Australia Red Cross Blood Service, where he is a
member of the Finance and Audit Committee and of the Risk Committee. He has also been
a member of the Grameen Foundation Australia Charity Board since 2012.
Special responsibilities
Other current
directorships
Interests in shares and
options
Ordinary shares in Quickstep Holdings Limited
500,000
(cid:7)
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Directors’ Report
30 June 2016
Information on directors (continued)
Quickstep Holdings Limited
Directors’ report
30 June 2016
Quickstep Holdings Limited
Information on directors (continued)
Directors’ report
30 June 2016
Mr. Peter C Cook, MPharm, CChem, FMonash, FRMIT, MPS, MRACI, MAICD- independent non-executive
director- appointed 14 July 2005
Experience and
expertise
Mr. Cook’s most recent Executive appointment was as Managing Director and CEO of Biota
Holdings Limited. Mr. Cook has also held the positions of Managing Director and Chief
Executive Officer of Orbital Corporation Limited, Chief Executive Officer of Faulding Hospital
Pharmaceuticals, President of Ansell’s Protective Products Division, Deputy Managing
Director of Invetech and Director of Research and Development for Nicholas Kiwi. Mr. Cook
has had extensive experience in the commercialisation of innovation, both in new and
established markets. Mr. Cook also has considerable experience in mergers. Mr. Cook has
had a wide exposure of international commercial experience in Europe, USA and Asia,
where he has both lived and worked. He holds a Masters Degree in Pharmacy, post
graduate qualifications in Management from RMIT University and is a Fellow of Monash
University
Chairman of the Remuneration, Nomination and Diversity Committee
Chair, Pharmaceutical Science Advisory Group (Monash University), Chair, Monash
Institute of Pharmaceutical Science’s Foundation and Director Myostin Therapeutics.
Ordinary shares in Quickstep Holdings Limited
1,590,685
Special responsibilities
Other current
directorships
Interests in shares and
options
Mr. Bruce A Griffiths, OAM – independent non-executive director - appointed 14 February 2013
Experience and
expertise
Mr. Griffiths has had a successful and extensive career, spanning more than 40 years, in the
manufacturing industry. He has held a number of senior Executive roles within the industry
and has a long history in working with Government. Bruce was recently awarded the Order
of Australia Medal for services to the automotive manufacturing industry and to the
community. Previous appointments include: Rail Supplier Advocate from 2009 to 2014,
Chairman - Futuris Automotive Group (2007-2012), Managing Director - Futuris Automotive
Group (1992 -2007), Chairman - Air International Thermal Systems (2008-2011), Board
Member - AutoCRC (Advanced Automotive Technology Ltd) (Inception -2012), Vice
President of the Federation of Automotive Products Manufacturers (FAPM) (1990-2012).
Member - Automotive Industry Innovation Council, Advisory Board Member - Enterprise
Connect, Chairman - Sail Melbourne ISAF Sailing World Cup. Mr. Griffiths’ honors include:
Order of Australia Medal - 2013, Centenary Medal for Services to the Development of the
Auto Industry Policy, Victorian Manufacturing Hall of Fame for services to the Manufacturing
Industry
Member of the Remuneration, Nomination and Diversity Committee.
Current appointments include: Board Member - Industry Capability Network Limited (ICNL),
Director - Carbon Revolution Pty Limited
Ordinary shares in Quickstep Holdings Limited
1,238,167
Mr. McCormack has extensive experience as a Senior Commander in the Royal Australian
Air Force. Mr. McCormack served in the Royal Australian Air Force for 39 years, retiring in
2001 as Chief of Air Force with the rank of Air Marshal. During his period of service he
commanded at unit, wing and command level, held staff positions in capability development,
operations and educational posts and attended both RAAF and Joint Services Staff
Colleges. His overseas postings included flying tours in Vietnam, Thailand, Malaysia and
Singapore, an exchange tour with the US Air Force flying the RF4C, Air Attaché Washington
and Commander Integrated Air Defence System in the Five Power Defence Agreement
between Malaysia, Singapore, UK, New Zealand and Australia. Since his retirement from
the RAAF he has established a company providing consultancy services for multi-national
companies working with the Australian Department of Defence. His pro-bono work includes
Chairman of the Board of the Sir Richard Williams Foundation, an independent think-tank
supporting development of Australian military aviation policy. He is a member of the Royal
Aeronautical Society and the Australian Institute of Company Directors
Member of the Audit, Risk and Compliance Committee and the Remuneration, Nomination
and Diversity Committee.
Non-Executive Chairman of Chemring Australia Pty Ltd.
Air Marshal Errol J McCormack (Ret’d) AO – independent non-executive director - appointed 11 August 2010
Experience and
expertise
Special responsibilities
Other current
directorships
Interests in shares and
options
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Special responsibilities
Other current
directorships
Interests in shares and
options
Ordinary shares in Quickstep Holdings Limited
481,229
(cid:8)
(cid:9)
Mr. James C Douglas, LLB, BSc – non-executive director - appointed 19 December 2015
Experience and
expertise
Other current
directorships
options
Mr. Douglas is Chairman of Australian composite automotive wheels manufacturer Carbon
Revolution and a founder of investment firm Newmarket Capital, a strategic investor in the
carbon fibre manufacturing sector. James has over 20 years of global investment banking
experience and has held former roles as Global Head of Consumer Products at Merrill
Lynch, Head of Consumer Products – Americas at UBS and Head of Global Banking
Australia & New Zealand at Citi. He holds a LLB and BSc from the University of Melbourne.
Special responsibilities
Member of the Audit, Risk and Compliance Committee.
Chairman of Carbon Revolution. Director of Newmarket Capital and Krash Industries.
Interests in shares and
Ordinary shares in Quickstep Holdings Limited
Rights to shares in Quickstep Holdings Limited
(part of Newmarket)
980,401
8,333,333
Mr. Philippe M Odouard, M.Sc (Bus) - appointed 19 October 2008, resigned 15 October 2015
Experience and
expertise
Appointed Chief Executive Officer and Managing Director of Quickstep in October 2008.
Resigned as Executive Director on 15 October 2015 when he moved into the role of General
Manager, Strategy and Business Development (Aerospace and Defence). Mr. Odouard
subsequently departed the Company on 30 June 2016.
Interests in shares and
Ordinary shares in Quickstep Holdings Limited
options
as at 30 June 2016
Options over shares in Quickstep Holdings Limited
Rights in shares in Quickstep Holdings Limited
2,117,591
Nil
Nil
Mr. David P A Singleton, BSc (Hons) - appointed 11 October 2010, resigned 21 January 2016
Mr. Singleton resigned on 21 January 2016 as he was appointed CEO of Austal Limited.
Experience and
expertise
Special responsibilities
Member of the Audit, Risk and Compliance Committee and the Remuneration, Nomination
Interests in shares and
Ordinary shares in Quickstep Holdings Limited
options
as at 30 June 2016
209,137
and Diversity Committee
Mr. Jaime Pinto, B.Com, CA, AIGA - company secretary - appointed 20 November 2012
Experience and
expertise
Mr. Pinto is a Chartered Accountant with over 20 years experience in both professional
practice and commerce. He has held senior finance roles in organisations of varying size
and complexity, including small private businesses, large national groups and ASX listed
entities.
Governance Institute
Mr. Pinto holds a Bachelor Degree in Commerce from the University of NSW, is a member
of The Institute of Chartered Accountants Australia, and an Associate Member of
Other current roles
He is currently the Company Secretary of a number of ASX-listed and unlisted companies in
the manufacturing, investing, real estate and advisory industries
Directors’ Report
30 June 2016
Quickstep Holdings Limited
Information on directors (continued)
Directors’ report
30 June 2016
Mr. James C Douglas, LLB, BSc – non-executive director - appointed 19 December 2015
Experience and
expertise
Mr. Douglas is Chairman of Australian composite automotive wheels manufacturer Carbon
Revolution and a founder of investment firm Newmarket Capital, a strategic investor in the
carbon fibre manufacturing sector. James has over 20 years of global investment banking
experience and has held former roles as Global Head of Consumer Products at Merrill
Lynch, Head of Consumer Products – Americas at UBS and Head of Global Banking
Australia & New Zealand at Citi. He holds a LLB and BSc from the University of Melbourne.
Member of the Audit, Risk and Compliance Committee.
Chairman of Carbon Revolution. Director of Newmarket Capital and Krash Industries.
Special responsibilities
Other current
directorships
Interests in shares and
options
Ordinary shares in Quickstep Holdings Limited
Rights to shares in Quickstep Holdings Limited
(part of Newmarket)
980,401
8,333,333
Mr. Philippe M Odouard, M.Sc (Bus) - appointed 19 October 2008, resigned 15 October 2015
Experience and
expertise
Appointed Chief Executive Officer and Managing Director of Quickstep in October 2008.
Resigned as Executive Director on 15 October 2015 when he moved into the role of General
Manager, Strategy and Business Development (Aerospace and Defence). Mr. Odouard
subsequently departed the Company on 30 June 2016.
Interests in shares and
options
Ordinary shares in Quickstep Holdings Limited
as at 30 June 2016
Options over shares in Quickstep Holdings Limited
Rights in shares in Quickstep Holdings Limited
2,117,591
Nil
Nil
Mr. David P A Singleton, BSc (Hons) - appointed 11 October 2010, resigned 21 January 2016
Experience and
expertise
Special responsibilities
Mr. Singleton resigned on 21 January 2016 as he was appointed CEO of Austal Limited.
Member of the Audit, Risk and Compliance Committee and the Remuneration, Nomination
and Diversity Committee
Ordinary shares in Quickstep Holdings Limited
as at 30 June 2016
209,137
Interests in shares and
options
Mr. Jaime Pinto, B.Com, CA, AIGA - company secretary - appointed 20 November 2012
Experience and
expertise
Mr. Pinto is a Chartered Accountant with over 20 years experience in both professional
practice and commerce. He has held senior finance roles in organisations of varying size
and complexity, including small private businesses, large national groups and ASX listed
entities.
Other current roles
Mr. Pinto holds a Bachelor Degree in Commerce from the University of NSW, is a member
of The Institute of Chartered Accountants Australia, and an Associate Member of
Governance Institute
He is currently the Company Secretary of a number of ASX-listed and unlisted companies in
the manufacturing, investing, real estate and advisory industries
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Directors’ Report
30 June 2016
Board Structure & Director Independence
Insurance of officers and indemnities
Quickstep Holdings Limited
Directors’ report
30 June 2016
Quickstep Holdings Limited
Directors’ report
30 June 2016
The Company continually monitors the structure and performance of the Board to ensure it is of an appropriate size,
composition and skill to lead the Company and meet its current governance and strategic needs.
Except as indicated below, the Group has not otherwise, during or since the end of the financial year, indemnified or
agreed to indemnify an officer of the Group or any of any related body corporate against a liability incurred as an officer.
The Chairman manages the Board to achieve responsive and effective business outcomes with highly committed
directors. Quickstep has a Remuneration, Nomination and Diversity Committee (RND Committee), whose responsibilities
include the development and on-going review of Board competencies, structure, performance and renewal. Both the RND
Committee Charter and “Policy and Procedure for Selection and Appointment of Directors” are accessible from the
Company’s website as follows.
(http://www.quickstep.com.au/files/files/359_QHL_RND_Committee_Charter_-_September_2014.pdf
http://www.quickstep.com.au/files/files/366_QHL_Selection_and_Appointment_of_Directors_Policy_V1_-_02102014.pdf
The Policy and Procedure for Selection and Appointment of Directors includes a matrix of skills that are considered
necessary within the independent non-executive director group to facilitate an effective and efficient Board. The RND
Committee periodically reviews both this matrix and the directors’ actual skills mix to ensure they satisfy the current and
immediately foreseeable needs of the Company.
The Board maintains a varied level of tenure amongst its directors, which is seen as essential for its effective functioning
given the significant growth and change experienced by Quickstep in recent years. This has resulted in both an influx of
fresh ideas and the retention of sufficient Quickstep specific understanding to optimise strategic and operational changes.
As the business evolves this is continually reviewed.
The Board is committed to a majority of its directors being independent to ensure the Board acts in the best interest of the
entity itself, its security holders and stakeholders generally. Director independence is assessed on a regular basis, and all
directors are required to advise the Board of any actual or potential conflicts of interest as they arise, with any such
conflicts tabled at Board meetings.
In assessing independence the Board considers a number of factors which include, but are not limited to, the “Factors
relevant to assessing the independence of a director” listed in Recommendation 2.3 of the Corporate Governance
Principles and Recommendations 3rd Edition established by the ASX Corporate Governance Council (‘the ASX Principles
and Recommendations”).
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Meetings of directors
The numbers of meetings of the Company's board of Directors and of each board committee held during the financial year
ended 30 June 2016, and the numbers of meetings attended by each Director were:
and directors’ report.
The Company is a kind referred to in Class Order 2016/91, issued by the Australian Securities and Investments
Commission, relating to the “rounding off” of amounts in the financial statements and directors’ report. Amounts therefore
have been rounded off to the nearest thousand dollars, or in certain cases, to the nearest dollar in the financial statements
Board
Meetings
Audit, Risk and
Compliance Committee
Meetings
Remuneration,
Nomination and
Diversity Committee
Meetings
Director
Mr. T H J Quick
Mr. D J Marino
Mr. N I Ampherlaw
Mr. P C Cook
Mr. B A Griffiths
Air Marshal E J McCormack (Ret’d)
Mr. J C Douglas
Mr. P M Odouard
Mr. D P A Singleton
A
22
22
22
22
22
22
8
8
16
B
22
22
21
22
22
21
8
-
13
A
-
-
6
-
-
6
3
-
3
B
-
-
6
-
-
6
3
-
2
A = Number of meetings held during the time the Director held office during the year
B = Number of meetings attended
A
-
-
-
6
6
4
-
-
2
B
-
-
-
6
6
3
-
-
2
(cid:10)
During the financial year, Quickstep Holdings Limited paid a premium in respect of a directors’ and officers’ liability
insurance policy, insuring the Directors of the Company, the Company Secretary and all executive officers of the
Company and Group against a liability incurred as a Director, Secretary or executive officer to the extent permitted by the
The Directors have not included details of the nature of the liabilities covered or the premium paid in respect of the
directors’ and officers’ liability and legal expenses’ insurance contracts, as such disclosure is prohibited under the terms of
The Group has indemnified the Directors (as named in this report) and all executive officers of the Group and of any
related body corporate against any liability incurred as a Director, Secretary or executive officer to the maximum extent
permitted by the Corporations Act 2001.
Insurance
Corporations Act 2001.
the contract.
Indemnities
Non-audit services
During the financial year, KPMG, the Group’s auditor, has not performed any additional services to their statutory duties.
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is
Auditor’s independence declaration
set out on page 72.
Rounding of amounts
Corporate Governance Statement
Quickstep’s Corporate Governance Statement can be found on the Company’s website at the following address:
http://www.quickstep.com.au/Investors-Media/Corporate-Governance
This report is made in accordance with a resolution of directors on 22 September 2016.
D J Marino
Director
22 September 2016
Sydney. New South Wales
(cid:11)
Directors’ Report
30 June 2016
Insurance of officers and indemnities
Quickstep Holdings Limited
Directors’ report
30 June 2016
Except as indicated below, the Group has not otherwise, during or since the end of the financial year, indemnified or
agreed to indemnify an officer of the Group or any of any related body corporate against a liability incurred as an officer.
Insurance
During the financial year, Quickstep Holdings Limited paid a premium in respect of a directors’ and officers’ liability
insurance policy, insuring the Directors of the Company, the Company Secretary and all executive officers of the
Company and Group against a liability incurred as a Director, Secretary or executive officer to the extent permitted by the
Corporations Act 2001.
The Directors have not included details of the nature of the liabilities covered or the premium paid in respect of the
directors’ and officers’ liability and legal expenses’ insurance contracts, as such disclosure is prohibited under the terms of
the contract.
Indemnities
The Group has indemnified the Directors (as named in this report) and all executive officers of the Group and of any
related body corporate against any liability incurred as a Director, Secretary or executive officer to the maximum extent
permitted by the Corporations Act 2001.
Non-audit services
During the financial year, KPMG, the Group’s auditor, has not performed any additional services to their statutory duties.
Auditor’s independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is
set out on page 72.
Rounding of amounts
The Company is a kind referred to in Class Order 2016/91, issued by the Australian Securities and Investments
Commission, relating to the “rounding off” of amounts in the financial statements and directors’ report. Amounts therefore
have been rounded off to the nearest thousand dollars, or in certain cases, to the nearest dollar in the financial statements
and directors’ report.
Corporate Governance Statement
Quickstep’s Corporate Governance Statement can be found on the Company’s website at the following address:
http://www.quickstep.com.au/Investors-Media/Corporate-Governance
This report is made in accordance with a resolution of directors on 22 September 2016.
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D J Marino
Director
22 September 2016
Sydney. New South Wales
(cid:11)
Directors’ Report
30 June 2016
Remuneration Report
Quickstep Holdings Limited
Directors’ report
30 June 2016
The directors present the Quickstep Holdings Limited 2016 remuneration report, outlining key aspects of the Group’s
remuneration policy and framework, and remuneration awarded this year.
The report is structured as follows:
1
2
3
4
Principles of compensation
Details of remuneration
Share based compensation
Analysis of bonuses included in remuneration
1. Principles of compensation
Key management personnel, including directors of the Company, have authority and responsibility for planning,
directing and controlling the activities of the Group. Key management personnel comprise the directors of the
company and executives for the Group.
The report includes details relating to:
Executive Directors
Mr. D J Marino
Mr. P M Odouard
Non-Executive Directors
Mr. T H J Quick
Mr. N I Ampherlaw
Mr. P C Cook
Mr. B A Griffiths
Air Marshal E J McCormack(Ret’d)
Mr. J C Douglas
Mr. D P A Singleton
Other Key Management Personnel
Mr. J Pinto
Mr. A Crane
Mr. J Johnson
Ms J Courtney-Pitman
Mr. K Boyle
Mr. M Schramko
Mr. T Olding
Mr. M Hau
Mr. P M Odouard
Ms T Swinley
Dr J Schlimbach
Ms N Sharman
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CEO and Managing Director
Executive Director, Joint Managing Director, Quickstep GmbH (until 15
October 2015)
Chairman
Chair of Audit, Risk and Compliance Committee
Chair of Remuneration, Nomination and Diversity Committee
(from 19 December 2015)
(until 21 January 2016)
Company Secretary
Chief Financial Officer (from 24 September 2015)
Vice President of Commercial and Administration
Executive General Manager Human Resources (from 30 March 2016)
Chief Operating Officer (from 23 March 2016)
Vice President of Manufacturing and Operations
Executive General Manager, Systems
Managing Director, Quickstep GmbH (from 8 February 2016)
General Manager, Strategy and Business Development (Aerospace &
Defence) (from 16 October 2015 until 30 June 2016)
Vice President of Human Resources (until 10 March 2016)
Joint Managing Director, Quickstep GmbH (until 31 December 2015)
Chief Financial Officer (until 23 September 2015)
The Board has established a Remuneration, Nomination and Diversity (RN&D) Committee which assists the Board in
formulating policies on and in determining:
*
The remuneration packages of executive directors, non-executive directors and other key management
personnel. and
* Cash bonuses and equity based incentive plans, including appropriate performance hurdles, total payments
proposed and plan eligibility criteria.
If necessary, the RN&D Committee obtains independent advice on the appropriateness of remuneration packages given
trends in comparable companies and in accordance with the objectives of the Group. The Corporate Governance
Statement provides further information on the role of this committee.
Quickstep has also developed an Executive Remuneration Policy and a Director Remuneration Policy that are available
on the Company’s website at http://ww.quickstep.com.au/Investors-Media/Corporate-Governance.
Quickstep Holdings Limited
Directors’ report
30 June 2016
Remuneration Report (continued)
1. Principles of compensation (continued)
Compensation levels for key management personnel of the Group are competitively set to attract and retain appropriately
qualified and experienced directors and executives. The remuneration structures are designed to reward the achievement
of strategic objectives, and achieve the broader outcome of creation of value for shareholders. Compensation packages
include a mix of fixed compensation, short-term cash incentives and equity-based incentives.
Shares, options or rights may only be issued to directors subject to approval by shareholders in a general meeting.
The Group does not have any scheme relating to retirement benefits for its key management personnel other than
contributions defined under its statutory obligations.
The Company’s policy is to provide executives with a competitive fixed compensation comparable to the median paid by
like sized companies undertaking similar work and offers additional short and long term incentives to allow the executive
to achieve top quartile compensation, if all performance hurdles are met. All incentives are capped.
The Company’s policy is to provide non-executive directors with a fixed fee comparable to the median of that paid by
similar sized ASX listed companies operating in similar fields. Non-executive directors are not eligible for participation in
Fixed compensation consists of base compensation, as well as statutory employer contributions to superannuation.
Compensation levels are reviewed annually through a process that considers current labour market rates, the individual's
contribution and overall performance of the Group. Compensation is also reviewed in the event of promotion or significant
Performance linked compensation includes both short and long term incentives and is designed to reward key
management personnel, excluding non-executive directors, for meeting or exceeding the Company's business and their
personal objectives. Each individual’s performance linked compensation is capped as a percentage uplift of fixed
compensation. Other than as disclosed in this report, there have been no performance-linked payments made by the
any of the Company’s incentive schemes.
Fixed compensation
change in responsibilities.
Performance linked compensation
Group to key management personnel.
(a) Short term incentive
Cash and equity settled short term incentive
Certain executives receive short-term incentives (STI) in cash and/or shares on achievement of key performance
indicators (KPIs). Each year, the RN&D Committee considers the appropriate KPIs and associated targets to align
individual rewards to the Group’s desired performance. These targets may include measures related to the annual
performance of the Group, and/or specified parts of the Group.
In FY16 12 Corporate KPIs were used, including five financial KPIs, two business development KPIs, two operational
KPIs and three strategic KPIs. The weighting of corporate KPIs used in the determination of an executive’s STI ranged
from 70% for functional specialists to 100% for the Managing Director and Chief Financial Officer.
The RN&D Committee is responsible for assessing whether the KPIs have been achieved and meet the criteria set out at
the beginning of the year. Each year a limited number of corporate KPIs are designated as threshold metrics, with no STI
payable to any executive if these are not achieved. In FY16 there were two threshold metrics.
Actual performance is then assessed against both a target outcome and a stretch outcome. Generally, where
performance falls below the target outcome no payment is made against that KPI and where performance exceeds the
stretch outcome the stretch cap is payable. Generally, where performance falls between target and stretch outcomes an
appropriate proportion of the KPI is payable. When the target is achieved 50% of the weighting for the KPIs is payable.
When both the target and stretch outcomes are achieved 100% of the weighting for the KPIs is payable.
Where a proportion of STI is payable in shares, the number of shares issued is based on the accrued equity settled STI
value, less $1,000 which is paid as cash not shares, divided by the weighted average share price on the date the shares
were/are granted.
After determining the overall achievement of KPIs based on the above review process, the RN&D Committee has
recommended no STI is payable in respect of FY16 due to the threshold metrics not being achieved. The Board of
Quickstep has approved this recommendation.
(cid:12)
(cid:13)
Directors’ Report
30 June 2016
Remuneration Report (continued)
1. Principles of compensation (continued)
Quickstep Holdings Limited
Directors’ report
30 June 2016
Compensation levels for key management personnel of the Group are competitively set to attract and retain appropriately
qualified and experienced directors and executives. The remuneration structures are designed to reward the achievement
of strategic objectives, and achieve the broader outcome of creation of value for shareholders. Compensation packages
include a mix of fixed compensation, short-term cash incentives and equity-based incentives.
Shares, options or rights may only be issued to directors subject to approval by shareholders in a general meeting.
The Group does not have any scheme relating to retirement benefits for its key management personnel other than
contributions defined under its statutory obligations.
The Company’s policy is to provide executives with a competitive fixed compensation comparable to the median paid by
like sized companies undertaking similar work and offers additional short and long term incentives to allow the executive
to achieve top quartile compensation, if all performance hurdles are met. All incentives are capped.
The Company’s policy is to provide non-executive directors with a fixed fee comparable to the median of that paid by
similar sized ASX listed companies operating in similar fields. Non-executive directors are not eligible for participation in
any of the Company’s incentive schemes.
Fixed compensation
Fixed compensation consists of base compensation, as well as statutory employer contributions to superannuation.
Compensation levels are reviewed annually through a process that considers current labour market rates, the individual's
contribution and overall performance of the Group. Compensation is also reviewed in the event of promotion or significant
change in responsibilities.
Performance linked compensation
Performance linked compensation includes both short and long term incentives and is designed to reward key
management personnel, excluding non-executive directors, for meeting or exceeding the Company's business and their
personal objectives. Each individual’s performance linked compensation is capped as a percentage uplift of fixed
compensation. Other than as disclosed in this report, there have been no performance-linked payments made by the
Group to key management personnel.
(a) Short term incentive
Cash and equity settled short term incentive
Certain executives receive short-term incentives (STI) in cash and/or shares on achievement of key performance
indicators (KPIs). Each year, the RN&D Committee considers the appropriate KPIs and associated targets to align
individual rewards to the Group’s desired performance. These targets may include measures related to the annual
performance of the Group, and/or specified parts of the Group.
In FY16 12 Corporate KPIs were used, including five financial KPIs, two business development KPIs, two operational
KPIs and three strategic KPIs. The weighting of corporate KPIs used in the determination of an executive’s STI ranged
from 70% for functional specialists to 100% for the Managing Director and Chief Financial Officer.
The RN&D Committee is responsible for assessing whether the KPIs have been achieved and meet the criteria set out at
the beginning of the year. Each year a limited number of corporate KPIs are designated as threshold metrics, with no STI
payable to any executive if these are not achieved. In FY16 there were two threshold metrics.
Actual performance is then assessed against both a target outcome and a stretch outcome. Generally, where
performance falls below the target outcome no payment is made against that KPI and where performance exceeds the
stretch outcome the stretch cap is payable. Generally, where performance falls between target and stretch outcomes an
appropriate proportion of the KPI is payable. When the target is achieved 50% of the weighting for the KPIs is payable.
When both the target and stretch outcomes are achieved 100% of the weighting for the KPIs is payable.
Where a proportion of STI is payable in shares, the number of shares issued is based on the accrued equity settled STI
value, less $1,000 which is paid as cash not shares, divided by the weighted average share price on the date the shares
were/are granted.
After determining the overall achievement of KPIs based on the above review process, the RN&D Committee has
recommended no STI is payable in respect of FY16 due to the threshold metrics not being achieved. The Board of
Quickstep has approved this recommendation.
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(cid:13)
Directors’ Report
30 June 2016
Remuneration Report (continued)
1. Principles of compensation (continued)
(b) Long term incentive
Overview
Quickstep Holdings Limited
Directors’ report
30 June 2016
Quickstep Holdings Limited
Directors’ report
30 June 2016
During FY16 the Company operated two long term incentive plans in use, an Employee Incentive Plan (EIP) and an
Incentive Rights Plan (IRP), but as at 30 June 2016 the EIP ceased to operate due to the departure from the Company of
Mr. P Odouard, the only executive that held options under that plan.
Quickstep Employee Incentive Plan (EIP)
In November 2009 the Company established the Quickstep Employee Incentive Plan (EIP).
Under the EIP, the Board could grant options to selected Quickstep employees on such terms as it determined
appropriate. Participation in the EIP was open to all employees of the Group, with the Board determining those employees
eligible to participate in each grant under the EIP, but in practice, options had only been issued to one executive, Mr. P
Odouard – and due to his departure on 30 June 2016 all entitlements to options have lapsed and the plan has ceased to
operate. Each option has a conditional right to one Quickstep ordinary share, subject to the satisfaction of the applicable
performance conditions.
In general, options granted under the EIP do not vest until the performance criteria specified by the Board at the time of
the grant have been achieved and provided the participant remains a Group employee. If the performance criteria are not
satisfied at the end of the applicable performance period the options lapse. The options may lapse in other circumstances
provided for in the EIP rules, including forfeiture where the employee engages in dishonest or fraudulent conduct, where
there is a change in control and where the employee ceases employment. Subject to the rules and the term of the grant,
options lapse on the seventh anniversary of their grant date, given consideration to the applicable claw back
arrangements.
The options granted from the EIP are subject to performance conditions based on achieving pre-set absolute Total
Shareholder Return (TSR) targets over the applicable performance period. In summary, TSR combines share price
appreciation over a period and dividends paid during that period to show the total return to shareholders over that period.
For the purposes of the performance conditions attached to the options, TSR will be calculated as the 45 day volume
weighted average price (VWAP) of Quickstep shares as at a test date (30 June or 31 August). The options vest on the day
after the test date. This calculation has been adopted bearing in mind Quickstep’s market capitalisation and to ensure the
performance hurdle and testing process remain appropriate in all the circumstances. All options are subject to a minimum
three year performance condition from their grant date and are tested annually until they lapse seven years after grant
date. At each re-testing date TSR hurdles are increased by an annual growth rate as set out in the table below.
If the Threshold hurdle of TSR is achieved at a test date, 25% of the options in the tranche will vest. If the Target hurdle of
TSR is achieved at a test date in any given year, 50% of options in the tranche will vest. If the Stretch hurdle of TSR is
achieved at a test date in any given year 100% of options in the tranche will vest. After the initial vesting period, re-testing
of the performance conditions occurs annually. Re-testing will occur annually until the options lapse and against the
higher TSR hurdle.
Remuneration Report (continued)
1. Principles of compensation (continued)
(b) Long term incentive (continued)
Quickstep Incentive Rights Plan (IRP)
In November 2013 the Company established the Quickstep Incentive Rights Plan (IRP). The IRP was designed to
facilitate the Company moving towards best practice remuneration structures for executives, and offers under the IRP
have been made to a number of executives since its introduction.
The IRP authorises the granting of Rights to executives of the Company, in the form of Performance Rights (PRs) and/ or
Deferred Rights (DRs) and/or Restricted Rights - (RRs) (together, Rights). These rights represent an entitlement on
vesting to fully paid ordinary shares in the issued capital of the Company (Shares) and cash with the total value of cash
and shares being equal to the value of vested Rights (number of vested Rights x market value of a Share). PRs may vest
if Performance Conditions are satisfied. DRs may vest if service conditions are satisfied. There were no RRs granted in
FY16 and none arose from PRs or DRs.
The Board has the discretion to set the terms and conditions on which it will offer PRs under the IRP, including the
performance conditions and modification of the terms and conditions as appropriate to ensuring the IRP operates as
intended. All PRs offered will be subject to performance conditions which are intended to be challenging.
The PRs are subject to a performance condition based on achieving a relative Total Shareholder Return (TSR) equivalent
to or in excess of the ASX All Ordinaries Accumulation Index (AOAI) over the performance period. The AOAI is an index
of total shareholder return achieved by ASX listed companies which combines both share price movement and dividends
paid during the performance period (assuming that they are reinvested into Shares). As a general rule, Quickstep uses a
performance period of three (3) years with an anniversary date of 1 September each year.
For vesting to occur the Company's TSR (share price movement plus dividends) over the performance period must be
positive (i.e. if shareholders have not gained then PRs will not vest) relative to the All Ordinaries Accumulation Index
(AOAI). If the Company's TSR is positive but the AOAI movement is negative over the performance period then vesting, if
any, will be at the discretion of the Board (i.e. only applies if the Company has outperformed a general fall in the market by
protecting against a similar fall in the Company's share price). If the Company's TSR is positive and the movement in the
AOAI is also positive then the following vesting scale will apply:
Performance Level
Below threshold
Threshold
Target
Company's TSR relative to AOAI movement over
the performance period
< Increase in the AOAI
= Increase in the AOAI
> 100% of AOAI increase & < 110% of AOAI increase
110% of AOAI increase
> 110% of AOAI increase & < 120% of AOAI increase
Stretch and above
120% of AOAI increase
Vesting %
0%
25% Pro-rata
60% Pro-rata
100%
For PRs issued to executives other than Mr. Marino, testing of the TSR hurdle will occur on the third anniversary of the
commencement of the performance period and then semi-annually until the rights lapse or the fifth anniversary of the
commencement of the performance period. PRs issued to Mr. Marino have various potential vesting dates depending on
the nature of the PR offer. Once a right has vested it may not become unvested based on performance at a subsequent
test date. If at a test date some rights have previously vested and the Company’s performance at the test date is higher
than at previous test dates then additional rights will vest. Such vesting will apply on the basis that the total number of
rights that have vested from a tranche (previous and current vesting) is equal to the number that would have vested at the
current test date had no vesting occurred earlier.
Upon the satisfaction of the performance conditions, the value of PRs granted under the IRP will be evaluated. The Board
has discretion to vary vesting if it considers it to be appropriate to do so given the circumstances that prevailed over the
performance period. This provision aims to address situations where vesting may otherwise be inconsistent with
shareholder expectations.
The IRP contains provisions concerning the treatment of vested and unvested rights in the event that a participant ceases
employment. Unless the Board determines otherwise, if a participant ceases employment in other than special
circumstances (death, total and permanent disablement, retrenchment, redundancy, permanent retirement from full-time
work with the consent of the Board or other circumstances determined by the Board), all unvested rights held by the
participant will lapse.
Unless the Board determines otherwise, if a participant ceases employment under special circumstances, rights that were
granted to the participant during the financial year in which the termination occurred will be lapsed in the same proportion
as the remainder of the financial year bears to the full year. All remaining rights for which performance conditions have not
been satisfied as at the date of cessation of employment will then remain "on foot", subject to the original performance
conditions.
Initial value
Threshold
Target
Stretch
5
8
12
25
50
100
$0.165
$0.188
$0.204
$0.227
$0.250
$0.290
$0.315
$0.352
$0.326
$0.378
$0.410
$0.458
$0.228
$0.264
$0.287
$0.320
$0.169
$0.196
$0.214
$0.239
If an employee ceases employment with the Group due to death, disability, bona fide redundancy or any other reason
which may meet with the approval of the Board, the Board may determine that any unvested options they hold will vest as
at the date of cessation, having regard to such factors as the Board considers relevant, including pro rata performance
against the performance condition over the period from the grant date to the date of cessation. If an employee ceases
employment in these circumstances and holds vested options, they may exercise those options within a 12 month period
following the date of cessation (or, the remaining period until the expiry of the options, if less than 12 months). If an
employee ceases employment for any other reason any unvested options they hold will lapse on the date of cessation
unless the Board determines otherwise. Any vested options must be exercised within three months.
1(cid:4)
11
FY12
01/09/2014
30 June 2011 30 June 2012 30 June 2013 31 Aug 2014
Grant
Earliest vesting date
TSR Hurdle VWAP as at
% Annual
Growth (TP)
FY13
31/08/15
31 Aug 2015
Tranche 4
01/07/12
Tranche 3
01/07/11
FY11
01/07/13
%
Vesting
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Directors’ Report
30 June 2016
Remuneration Report (continued)
1. Principles of compensation (continued)
(b) Long term incentive (continued)
Quickstep Incentive Rights Plan (IRP)
Quickstep Holdings Limited
Directors’ report
30 June 2016
In November 2013 the Company established the Quickstep Incentive Rights Plan (IRP). The IRP was designed to
facilitate the Company moving towards best practice remuneration structures for executives, and offers under the IRP
have been made to a number of executives since its introduction.
The IRP authorises the granting of Rights to executives of the Company, in the form of Performance Rights (PRs) and/ or
Deferred Rights (DRs) and/or Restricted Rights - (RRs) (together, Rights). These rights represent an entitlement on
vesting to fully paid ordinary shares in the issued capital of the Company (Shares) and cash with the total value of cash
and shares being equal to the value of vested Rights (number of vested Rights x market value of a Share). PRs may vest
if Performance Conditions are satisfied. DRs may vest if service conditions are satisfied. There were no RRs granted in
FY16 and none arose from PRs or DRs.
The Board has the discretion to set the terms and conditions on which it will offer PRs under the IRP, including the
performance conditions and modification of the terms and conditions as appropriate to ensuring the IRP operates as
intended. All PRs offered will be subject to performance conditions which are intended to be challenging.
The PRs are subject to a performance condition based on achieving a relative Total Shareholder Return (TSR) equivalent
to or in excess of the ASX All Ordinaries Accumulation Index (AOAI) over the performance period. The AOAI is an index
of total shareholder return achieved by ASX listed companies which combines both share price movement and dividends
paid during the performance period (assuming that they are reinvested into Shares). As a general rule, Quickstep uses a
performance period of three (3) years with an anniversary date of 1 September each year.
For vesting to occur the Company's TSR (share price movement plus dividends) over the performance period must be
positive (i.e. if shareholders have not gained then PRs will not vest) relative to the All Ordinaries Accumulation Index
(AOAI). If the Company's TSR is positive but the AOAI movement is negative over the performance period then vesting, if
any, will be at the discretion of the Board (i.e. only applies if the Company has outperformed a general fall in the market by
protecting against a similar fall in the Company's share price). If the Company's TSR is positive and the movement in the
AOAI is also positive then the following vesting scale will apply:
Performance Level
Below threshold
Threshold
Target
Stretch and above
Company's TSR relative to AOAI movement over
the performance period
< Increase in the AOAI
= Increase in the AOAI
> 100% of AOAI increase & < 110% of AOAI increase
110% of AOAI increase
> 110% of AOAI increase & < 120% of AOAI increase
120% of AOAI increase
Vesting %
0%
25% Pro-rata
60% Pro-rata
100%
For PRs issued to executives other than Mr. Marino, testing of the TSR hurdle will occur on the third anniversary of the
commencement of the performance period and then semi-annually until the rights lapse or the fifth anniversary of the
commencement of the performance period. PRs issued to Mr. Marino have various potential vesting dates depending on
the nature of the PR offer. Once a right has vested it may not become unvested based on performance at a subsequent
test date. If at a test date some rights have previously vested and the Company’s performance at the test date is higher
than at previous test dates then additional rights will vest. Such vesting will apply on the basis that the total number of
rights that have vested from a tranche (previous and current vesting) is equal to the number that would have vested at the
current test date had no vesting occurred earlier.
Upon the satisfaction of the performance conditions, the value of PRs granted under the IRP will be evaluated. The Board
has discretion to vary vesting if it considers it to be appropriate to do so given the circumstances that prevailed over the
performance period. This provision aims to address situations where vesting may otherwise be inconsistent with
shareholder expectations.
The IRP contains provisions concerning the treatment of vested and unvested rights in the event that a participant ceases
employment. Unless the Board determines otherwise, if a participant ceases employment in other than special
circumstances (death, total and permanent disablement, retrenchment, redundancy, permanent retirement from full-time
work with the consent of the Board or other circumstances determined by the Board), all unvested rights held by the
participant will lapse.
Unless the Board determines otherwise, if a participant ceases employment under special circumstances, rights that were
granted to the participant during the financial year in which the termination occurred will be lapsed in the same proportion
as the remainder of the financial year bears to the full year. All remaining rights for which performance conditions have not
been satisfied as at the date of cessation of employment will then remain "on foot", subject to the original performance
conditions.
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Directors’ Report
30 June 2016
Remuneration Report (continued)
1. Principles of compensation (continued)
(c) Non-executive directors’ fees
Quickstep Holdings Limited
Directors’ report
30 June 2016
Total remuneration for all non-executive directors, was last voted upon by shareholders at the 2010 Annual General
Meeting, and is not to exceed $600,000 per annum. Fees were set in FY11 with reference to fees that were paid to
non-executive directors of comparable companies. There has been no increase or change since. Directors are entitled to
receive a fee which covers all main Board activities, a fee for Chairmanship of a committee of $10,000 p.a. and $2,500 for
membership of each committee. The table below indicates the maximum annual fees based on directors responsibilities
at the date of this report. Non-executive directors do not receive performance related compensation.
Non-executive directors
Director fees $
Mr. T H J Quick
Mr. N I Ampherlaw
Mr. P C Cook
Mr. B A Griffiths
Air Marshal E J McCormack(Ret’d)
Mr. J C Douglas
Mr. D P A Singleton
126,000
60,000
60,000
60,000
84,000
60,000
60,000
Committee fees $
n/a
10,000
10,000
2,500
*2,500
2,500
5,000
* Air Marshal E J McCormack(Ret’d) is a member of 2 committees but only elects to receive compensation for 1.
Ms J Courtney-Pitman 30 Mar 16
Open
NES
3 months of annual salary package;
20
20
(d) Consequences of performance on shareholder wealth
In considering the Group’s performance and benefits for shareholder wealth, the RN&D committee gives regard to the
following indices in respect of the current financial year and the previous four financial years.
2016
2015
2014
2013
2012
Loss attributable to owners
of the company ($000)
Dividends paid
Operating income ($000)
Change in share price
Return on capital employed
$(5,784)
$nil
$50,128
(18.2%)
(8.6)%
$(3,937)
$nil
$39,511
(12.4%)
(6.1%)
$(11,181)
$nil
$12,001
35.7%
(66.4%)
$(16,985)
$nil
$2,562
(17.6%)
(95.9%)
$(11,801)
$nil
$503
(34.6%)
(60.9%)
Loss amounts have been calculated in accordance with Australian Accounting Standards (AASBs). Return on capital
employed is calculated as Profit before interest and tax (EBIT) divided by total assets less current liabilities.
The overall level of compensation takes into account the performance of the Group over a number of years. The
Aerospace Manufacturing segment is now profitable with further growth booked and additional volumes being pursued.
The Group continues to invest in research and development to deliver new sales in the New Technology segment.
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Quickstep Holdings Limited
Directors’ report
30 June 2016
STI cap
LTI cap
as a %
as a %
of TFR
of TFR
(1)
50
(2)
50
Remuneration Report (continued)
1. Principles of compensation (continued)
(e) Service agreements
Name
date
Duration
Mr. D J Marino
16 Feb 15
Open
Notice
period
NES
Initial
agreement
Termination benefits
12 months annual Total Fixed
Remuneration (TFR); and pro-rated
annual bonus (at Board's discretion). If
due to change of control, 100% of
annual TFR is paid immediately plus
pro-rated annual bonus
and pro-rated annual bonus (at Board's
discretion)
pro-rated annual bonus (at Board’s
discretion).
and pro-rated annual bonus (at Board's
Mr. A Crane
24 Sept 15
Open
NES
3 months of annual salary package;
30
30
Mr. J Johnson
1 Apr 11
Open
3 months 6 months of annual salary package;
20
20
Mr. K Boyle
23 Mar 16
Open
NES
3 months of annual salary package;
20
20
and pro-rated annual bonus (at Board's
Mr. M Schramko
25 Jul 11
Open
3 months 3 months of annual salary package;
20
20
and pro-rated annual bonus (at Board’s
Mr. T Olding
19 Feb 15
Open
3 months 3 months of annual salary package;
20
20
and pro-rated annual bonus (at Board’s
Mr. M Hau
8 Feb 16
Open
3 months Nil
Mr. P M Odouard
13 Oct 08 30 June 16
NES
12 months annual salary; and
20
30
20
50
pro-rated annual bonus (at Board’s
Ms N Sharman
17 Feb 14 30 Sept 15
3 months 3 months of annual salary package;
20
20
and pro-rated annual bonus (at Board's
Ms T Swinley
26 Nov 12 10 March 16
3 months 3 months of annual salary package;
20
20
and pro-rated annual bonus (at Board’s
Dr J Schlimbach
1 Jan 12
31 Dec 15
3 months n/a
20
20
discretion)
discretion)
discretion
discretion)
discretion)
discretion)
discretion)
(1) STI (Short Term Incentive) is determined on performance against key performance indicators (KPIs) set and
reviewed by the RN&D Committee or the Board as appropriate. The STI cap refers to the maximum amount
payable in cash (other than Mr. Marino, whose STI is payable in a combination of cash and shares), as a
percentage of Total Fixed Remuneration (TFR). The KPIs include company financial objectives, such as order
intake, profit and cash flow, and personal objectives including control of responsibility centre expenditure and
functional outcomes aligned to the annual strategic plan.
(2) LTI (Long Term Incentive) is determined on the Group's performance against relative Total Shareholder Return
and is tested at multiple dates. The LTI cap refers to the maximum amount payable in shares as a percentage of
Total Fixed Remuneration (TFR). This is the measure currently used in the IRP applicable to the 2016 financial
year.
(3) NES refers to the National Employment Standard, in the Fair Work Act (2009). Under section (3) (ss117-118) an
employee is entitled to a minimum notice period depending on length of service and age.
1(cid:6)
1(cid:13)
Directors’ Report
30 June 2016
Remuneration Report (continued)
1. Principles of compensation (continued)
(e) Service agreements
Name
Mr. D J Marino
Initial
agreement
date
16 Feb 15
Duration
Open
Notice
period
NES
Mr. A Crane
24 Sept 15
Open
NES
Quickstep Holdings Limited
Directors’ report
30 June 2016
Termination benefits
12 months annual Total Fixed
Remuneration (TFR); and pro-rated
annual bonus (at Board's discretion). If
due to change of control, 100% of
annual TFR is paid immediately plus
pro-rated annual bonus
3 months of annual salary package;
and pro-rated annual bonus (at Board's
discretion)
STI cap
as a %
of TFR
(1)
50
LTI cap
as a %
of TFR
(2)
50
30
30
20
20
20
20
20
20
Mr. J Johnson
1 Apr 11
Open
Ms J Courtney-Pitman 30 Mar 16
Open
Mr. K Boyle
23 Mar 16
Open
NES
3 months 6 months of annual salary package;
pro-rated annual bonus (at Board’s
discretion).
3 months of annual salary package;
and pro-rated annual bonus (at Board's
discretion)
3 months of annual salary package;
and pro-rated annual bonus (at Board's
discretion)
NES
Mr. M Schramko
25 Jul 11
Open
3 months 3 months of annual salary package;
20
20
and pro-rated annual bonus (at Board’s
discretion
Mr. T Olding
19 Feb 15
Open
3 months 3 months of annual salary package;
20
20
Mr. M Hau
Mr. P M Odouard
8 Feb 16
13 Oct 08 30 June 16
Open
and pro-rated annual bonus (at Board’s
discretion)
3 months Nil
NES
12 months annual salary; and
pro-rated annual bonus (at Board’s
discretion)
20
30
20
50
Ms N Sharman
17 Feb 14 30 Sept 15
3 months 3 months of annual salary package;
20
20
Ms T Swinley
26 Nov 12 10 March 16
3 months 3 months of annual salary package;
20
20
and pro-rated annual bonus (at Board’s
discretion)
Dr J Schlimbach
1 Jan 12
31 Dec 15
3 months n/a
20
20
and pro-rated annual bonus (at Board's
discretion)
(1) STI (Short Term Incentive) is determined on performance against key performance indicators (KPIs) set and
reviewed by the RN&D Committee or the Board as appropriate. The STI cap refers to the maximum amount
payable in cash (other than Mr. Marino, whose STI is payable in a combination of cash and shares), as a
percentage of Total Fixed Remuneration (TFR). The KPIs include company financial objectives, such as order
intake, profit and cash flow, and personal objectives including control of responsibility centre expenditure and
functional outcomes aligned to the annual strategic plan.
(2) LTI (Long Term Incentive) is determined on the Group's performance against relative Total Shareholder Return
and is tested at multiple dates. The LTI cap refers to the maximum amount payable in shares as a percentage of
Total Fixed Remuneration (TFR). This is the measure currently used in the IRP applicable to the 2016 financial
year.
(3) NES refers to the National Employment Standard, in the Fair Work Act (2009). Under section (3) (ss117-118) an
employee is entitled to a minimum notice period depending on length of service and age.
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Directors’ Report
30 June 2016
Remuneration Report (continued)
2. Details of remuneration
Quickstep Holdings Limited
Directors’ report
30 June 2016
Quickstep Holdings Limited
Directors’ report
30 June 2016
Remuneration Report (continued)
2. Details of remuneration (continued)
The following tables show details of the remuneration received by the Directors and the key management
personnel of the Group for the current and previous financial year.
2015
2016
Name
Executive Directors
Mr. D J Marino
Mr. P M Odouard (4)
Non-Executive Directors
Mr. T H J Quick (5)
Mr. N I Ampherlaw
Mr. P C Cook
Mr. B A Griffiths
Air Marshal E J
McCormack (Ret’d)
Mr. J C Douglas
Mr. D P A Singleton
Other key management
personnel
Mr. J Pinto
Mr. A Crane
Mr. J Johnson
Ms J Courtney-Pitman
Mr. K Boyle
Mr. M Schramko
Mr. T Olding
Mr. M Hau
Ms N Sharman
Ms T Swinley
Dr J Schlimbach
Salary /
fees
$
STI cash
bonus (3)
$
Non-
monetary
benefits
$
Total
$
Super-
annuation
levy
$
Termination
benefits
$
Equity
based
short term
incentive
(1)
$
Options
& rights
(2)
$
Total
$
458,538
352,256
(13,933)
(22,680)
21,771 466,376
29,969 359,545
19,750
19,308
-
400,000
(13,933) 187,682 659,875
(22,680) (131,242) 624,931
126,000
63,927
63,927
61,500
52,500
-
-
-
78,995
35,817
35,388
-
-
-
60,000
207,823
249,302
54,144
62,950
228,462
233,598
89,164
67,109
135,718
165,406
-
-
(15,195)
-
-
(9,677)
(6,701)
-
-
(8,135)
(16,245)
- 178,500
63,927
-
63,927
-
61,500
-
-
-
-
78,995
35,817
35,388
7,249
6,152
-
60,000
- 207,823
- 234,107
61,393
69,102
- 218,785
22,617 249,514
89,164
70,054
- 127,583
- 149,161
-
2,945
-
6,073
6,073
-
7,505
3,403
3,362
-
14,481
23,402
4,827
4,827
22,702
19,308
-
11,819
15,131
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
22,962
57,785
-
-
-
-
-
-
-
-
178,500
70,000
70,000
61,500
86,500
39,220
38,750
60,000
-
-
9,706 232,010
- 23,368 280,877
1,066 67,286
-
-
1,197 75,126
- 21,558 263,045
- 26,036 294,858
1,483 90,647
-
-
- 104,835
- (9,372) 191,127
- 149,161
-
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(1) Equity based STI includes an accrual of estimated STI relating to the current year to be settled through share
based payments net of any prior year accrual adjustments.
(2) Options and rights include the accounting expense attributable to the current year of both the EIP and IRP.
(3) The Short Term Incentive (STI) is comprised of an accrued current year cash bonus plus adjustment for
differences between the amount accrued during the prior financial year and the amount paid in the current
financial year. This adjustment results in a negative expense appearing in the tables above in relation to
executives for whom the prior year accrual exceeded the payment made in the current year in respect of the prior
year. For FY16, the RN&D Committee has recommended no STI is payable due to the threshold metrics not
being achieved. The Board of Quickstep has approved this recommendation and it is reflected in the table above.
(4)
Includes full year figures for Mr. Odouard – covering both roles in FY16 – Executive Director from1 July 2015 to
15 October 2015 and as General Manager, Strategy and Business Development (Aerospace & Defence) from 16
October 2015 until his departure on 30 June 2016.
(5) The STI cash bonus for Mr. Quick represents ex-gratia payment for achievements during his interim appointment
as Executive Chairman from 29 May 2014 to 15 February 2015, The RN&D committee calculated the quantum of
the payment on the same basis as the current CEO’s STI incentive i.e. 41.5% x 50% x TFR, being only those fees
relating to his executive duties and not his ongoing chairman fees.
(cid:6)(cid:4)
(cid:6)1
Name
Salary / fees
bonus (3)
benefits Total
levy
benefits
incentive (1)
rights (2) Total
STI cash
monetary
annuation
Termination
term
Options &
Non-
Super-
Equity
based short
$
$
$
$
$
$
$
$
$
31,207
785 188,764
7,224
31,207 101,197 328,392
56,236 20,748 438,462
14,252
45,000 140,291 638,005
Executive Directors
Mr. D J Marino
Mr. T Quick
Mr. P M Odouard
Non-executive Directors
Mr. T H J Quick
Mr. N I Ampherlaw
Mr. P C Cook
Mr. B A Griffiths
Mr. B Jenkins
Air Marshal E J
McCormack (Ret’d)
Mr. D P A Singleton
Other key management
personnel
Mr. J Pinto
Mr. J Johnson
Mr. M Schramko
Mr. T Olding
Ms N Sharman
Ms T Swinley
Dr J Schlimbach
Mr. D Brosius
156,772
227,000
361,478
126,000
63,927
63,927
61,500
25,625
78,995
59,361
40,000
234,992
227,658
89,171
224,351
213,623
194,395
51,955
- 227,000
- 126,000
-
-
-
-
-
-
63,927
63,927
61,500
25,625
78,995
59,361
-
-
-
-
6,073
6,073
7,505
5,639
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
227,000
- 126,000
- 70,000
- 70,000
- 61,500
- 25,625
- 86,500
- 65,000
-
-
-
-
-
-
-
-
-
-
40,000
9,000 281,934
- 259,906
1,490 105,579
- 43,642 267,993
- 263,466
- 223,058
-
60,068
37,942
32,248
14,918
49,843
28,663
8,113
-
25,560
22,735
6,837
25,442
23,384
-
-
154,203
-
40,000
1,588 10,623 319,705
(891) 9,808 291,558
- 6,692 119,108
- 293,435
(1,852) 9,380 294,378
(1,124)
7,566
- 221,934
- 221,837
(1) Equity based STI includes an accrual of estimated STI relating to the current year to be settled through share
based payments net of any prior year accrual adjustments.
(2) Options and rights include the accounting expense attributable to the current year of both the EIP and IRP.
(3) The Short Term Incentive (STI) is comprised of an accrued current year cash bonus plus adjustment for
differences between the amount accrued during the prior financial year and the amount paid in the current
financial year. This adjustment results in a negative expense appearing in the tables above in relation to
executives for whom the prior year accrual exceeded the payment made in the current year in respect of the prior
year. .
Directors’ Report
30 June 2016
Remuneration Report (continued)
2. Details of remuneration (continued)
Quickstep Holdings Limited
Directors’ report
30 June 2016
2015
Name
Executive Directors
Mr. D J Marino
Mr. T Quick
Mr. P M Odouard
Non-executive Directors
Mr. T H J Quick
Mr. N I Ampherlaw
Mr. P C Cook
Mr. B A Griffiths
Mr. B Jenkins
Air Marshal E J
McCormack (Ret’d)
Mr. D P A Singleton
Other key management
personnel
Mr. J Pinto
Mr. J Johnson
Mr. M Schramko
Mr. T Olding
Ms N Sharman
Ms T Swinley
Dr J Schlimbach
Mr. D Brosius
126,000
63,927
63,927
61,500
25,625
78,995
59,361
40,000
234,992
227,658
89,171
224,351
213,623
194,395
51,955
Salary / fees
STI cash
bonus (3)
Non-
monetary
benefits Total
Super-
annuation
levy
Termination
benefits
Equity
based short
term
incentive (1)
Options &
rights (2) Total
$
$
$
$
$
$
$
$
$
156,772
227,000
361,478
31,207
-
785 188,764
- 227,000
56,236 20,748 438,462
7,224
-
14,252
-
-
-
-
-
-
-
- 126,000
63,927
-
63,927
-
61,500
-
25,625
-
-
-
78,995
59,361
-
6,073
6,073
-
-
7,505
5,639
-
-
-
-
-
-
-
-
-
-
31,207 101,197 328,392
227,000
45,000 140,291 638,005
-
-
-
-
-
-
-
- 126,000
- 70,000
- 70,000
- 61,500
- 25,625
- 86,500
- 65,000
-
37,942
32,248
14,918
49,843
28,663
8,113
-
40,000
9,000 281,934
- 259,906
1,490 105,579
- 43,642 267,993
- 263,466
- 223,058
60,068
-
-
25,560
22,735
6,837
25,442
23,384
-
-
-
-
-
-
-
-
-
154,203
-
-
40,000
1,588 10,623 319,705
(891) 9,808 291,558
- 6,692 119,108
- 293,435
-
(1,852) 9,380 294,378
- 221,934
(1,124)
- 221,837
7,566
(1) Equity based STI includes an accrual of estimated STI relating to the current year to be settled through share
based payments net of any prior year accrual adjustments.
(2) Options and rights include the accounting expense attributable to the current year of both the EIP and IRP.
(3) The Short Term Incentive (STI) is comprised of an accrued current year cash bonus plus adjustment for
differences between the amount accrued during the prior financial year and the amount paid in the current
financial year. This adjustment results in a negative expense appearing in the tables above in relation to
executives for whom the prior year accrual exceeded the payment made in the current year in respect of the prior
year. .
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(cid:6)1
Directors’ Report
30 June 2016
Remuneration Report (continued)
3. Share Based Compensation
(a) Short term Incentive
Equity settled short term incentive
Quickstep Holdings Limited
Directors’ report
30 June 2016
Quickstep Holdings Limited
Directors’ report
30 June 2016
Remuneration Report (continued)
3. Share Based Compensation (continued)
(a) Long term Incentive (continued)
Quickstep Incentive Rights Plan (IRP)
Short term performance incentives accrued in the prior year have been settled through share based payments
during the year, valued at the market value on the day of issue:
below:
At 30 June 2016 executives accrued rights pursuant to the IRP. Movements in IRP rights during the year are set out
Name
Mr. D Marino
Mr. P Odouard
Total
No. of shares granted and
vested during FY16 in
respect of FY15
performance
Fair value
$
Total fair value
$
82,194
107,677
189,871
0.198
0.198
16,274
21,320
37,594
No equity settled short term incentives have accrued for the current year as KPI targets have not been achieved.
(b) Long term Incentive
Quickstep Employee Incentive Plan (EIP)
Mr. P Odouard was the only executive to be granted options pursuant to the EIP. On 30 June 2016 Mr. Odouard departed,
as a result all options lapsed and the EIP ceased to operate. Movement in EIP options during the year are set out below:
Name
Mr. P Odouard
Mr. P Odouard
Mr. P Odouard
Mr. P Odouard
Mr. P Odouard
Tranche
3
4
FY11
FY12
FY13
Grant date
30/03/10
30/03/10
26/11/10
23/11/11
22/11/12
Balance
at 30
June
2015
FV per
option
at grant
date (a)
$0.315 619,446
$0.270 471,698
$0.362 471,337
$0.173 706,373
$0.125 987,739
Exercised /
vested
during the
year (b)
-
-
-
-
-
Lapsed during the
year
619,446
471,698
471,337
706,373
987,739
Balance
at 30
June
2016
-
-
-
-
-
Cumulative
vesting
level at end
of year
0%
0%
0%
0%
0%
(a) The fair value of options granted was calculated using a Monte Carlo simulation analysis.
(b) Vesting is conditional on continuing employment and certain TSR hurdles.
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First
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FV per
right at
Tranche
refer
Note
16(b)
Grant
grant
date
date (a)
Balance
Granted
Lapsed/
Balance
at 30
June
2015
during
vested
the
during the
year(b)
year
at 30
June
2016
Fair
Value at
grant
date
Number
Number
Number
Number
$
Cum
vesting
level
16/02/15 $0.200 31/08/15 207,641
16/02/15 $0.200 31/08/16 415,283
(207,641)
- 100%
415,283 $83,056
0%
16/02/15 $0.100 31/08/15 207,641
(207,641)
- 100%
16/02/15 $0.110 31/08/16 415,283
16/02/15 $0.155 31/08/17 1,245,847
FY16 01/06/16 $0.085 31/08/18
FY16 01/06/16 $0.085 31/08/18
FY15 31/08/14 $0.145 31/08/17 265,000
FY16 01/06/16 $0.085 31/08/18
1,262,626
446,970
272,615
123,737
131,313
FY16 01/06/16 $0.085 31/08/18
FY15 31/08/14 $0.145 31/08/17 244,660
FY16 01/06/16 $0.085 31/08/18
250,972
FY15(a) 19/02/15 $0.155 31/08/17 304,540
FY16 01/06/16 $0.085 31/08/18
FY16 01/06/16 $0.085 31/08/18
277,778
117,044
FY14 31/0813 $0.152 31/08/16 802,000
FY15 31/08/14 $0.145 31/08/17 1,107,420
FY15 31/08/14 $0.145 31/08/17 233,999
(802,000)
(1,107,420)
(233,999)
-
-
-
-
-
-
-
-
-
-
-
-
415,283 $45,681
- 1,245,847 $193,106
- 1,262,626 $107,323
446,970 $37,992
265,000 $38,425
272,615 $23,172
123,737 $10,518
131,313 $11,162
244,660 $35,476
250,972 $21,332
304,540 $47,204
277,778 $23,611
117,044 $9,949
-
-
-
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
-
-
-
-
-
1
2
1
2
3
Deferred Rights
Mr. D Marino (c)
Mr. D Marino
Performance Rights
Mr. D Marino (c)
Mr. D Marino
Mr. D Marino
Mr. D Marino
Mr. A Crane
Mr. J Johnson
Mr. J Johnson
Mr. K Boyle
Mr. M Schramko
Mr. M Schramko
Mr. T Olding
Mr. T Olding
Mr. M Hau
Mr. P Odouard (d)
Mr. P Odouard (d)
Ms T Swinley (d)
Ms J Courtney-Pitman FY16 01/06/16 $0.085 31/08/18
(a) The fair value of rights granted was calculated using a Monte Carlo simulation analysis. Refer to note 16(b) on page
5,449,314 2,883,055 (2,558,701) 5,773,668 $688,007
59, for the model’s key assumptions.
remuneration over the vesting period.
(b) The fair value of rights granted in the year is $245,000 (2015 $743,000). The total value of the rights is allocated to
(c) These rights vested during FY16 with vesting satisfied by the issue of $1,000 and 202,591 shares for each tranche.
(d) These rights lapsed during FY16 as these employees left the company.
Modification of terms of equity-settled share-based payment transactions
No terms of equity-settled share-based payment transactions (including options and rights granted as compensation to a
key management person) have been altered or modified by the issuing entity during the reporting period or the prior
period.
(cid:6)(cid:6)
(cid:6)(cid:7)
Directors’ Report
30 June 2016
Remuneration Report (continued)
3. Share Based Compensation (continued)
(a) Long term Incentive (continued)
Quickstep Incentive Rights Plan (IRP)
Quickstep Holdings Limited
Directors’ report
30 June 2016
At 30 June 2016 executives accrued rights pursuant to the IRP. Movements in IRP rights during the year are set out
below:
Tranche
refer
Note
16(b)
Grant
date
FV per
right at
grant
date (a)
First
testing
date
Balance
at 30
June
2015
Number
Granted
during
the
year(b)
Number
Lapsed/
vested
during the
year
Number
Balance
at 30
June
2016
Number
Fair
Value at
grant
date
$
Cum
vesting
level
1
2
1
2
3
16/02/15 $0.200 31/08/15 207,641
16/02/15 $0.200 31/08/16 415,283
16/02/15 $0.100 31/08/15 207,641
16/02/15 $0.110 31/08/16 415,283
16/02/15 $0.155 31/08/17 1,245,847
Deferred Rights
Mr. D Marino (c)
Mr. D Marino
Performance Rights
Mr. D Marino (c)
Mr. D Marino
Mr. D Marino
FY16 01/06/16 $0.085 31/08/18
Mr. D Marino
FY16 01/06/16 $0.085 31/08/18
Mr. A Crane
FY15 31/08/14 $0.145 31/08/17 265,000
Mr. J Johnson
Mr. J Johnson
FY16 01/06/16 $0.085 31/08/18
Ms J Courtney-Pitman FY16 01/06/16 $0.085 31/08/18
FY16 01/06/16 $0.085 31/08/18
Mr. K Boyle
FY15 31/08/14 $0.145 31/08/17 244,660
Mr. M Schramko
FY16 01/06/16 $0.085 31/08/18
Mr. M Schramko
Mr. T Olding
Mr. T Olding
Mr. M Hau
Mr. P Odouard (d)
Mr. P Odouard (d)
Ms T Swinley (d)
FY16 01/06/16 $0.085 31/08/18
FY16 01/06/16 $0.085 31/08/18
FY14 31/0813 $0.152 31/08/16 802,000
FY15 31/08/14 $0.145 31/08/17 1,107,420
FY15 31/08/14 $0.145 31/08/17 233,999
FY15(a) 19/02/15 $0.155 31/08/17 304,540
(207,641)
-
-
- 100%
415,283 $83,056
0%
- 100%
-
(207,641)
415,283 $45,681
-
- 1,245,847 $193,106
- 1,262,626 $107,323
446,970 $37,992
-
265,000 $38,425
-
272,615 $23,172
-
123,737 $10,518
-
131,313 $11,162
-
244,660 $35,476
-
250,972 $21,332
-
304,540 $47,204
-
277,778 $23,611
-
117,044 $9,949
-
-
(802,000)
-
(1,107,420)
-
(233,999)
-
-
-
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
1,262,626
446,970
272,615
123,737
131,313
250,972
277,778
117,044
5,449,314 2,883,055 (2,558,701) 5,773,668 $688,007
(a) The fair value of rights granted was calculated using a Monte Carlo simulation analysis. Refer to note 16(b) on page
59, for the model’s key assumptions.
(b) The fair value of rights granted in the year is $245,000 (2015 $743,000). The total value of the rights is allocated to
remuneration over the vesting period.
(c) These rights vested during FY16 with vesting satisfied by the issue of $1,000 and 202,591 shares for each tranche.
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(d) These rights lapsed during FY16 as these employees left the company.
Modification of terms of equity-settled share-based payment transactions
No terms of equity-settled share-based payment transactions (including options and rights granted as compensation to a
key management person) have been altered or modified by the issuing entity during the reporting period or the prior
period.
(cid:6)(cid:7)
Directors’ Report
30 June 2016
Remuneration Report (continued)
4. Analysis of bonuses included in remuneration
Quickstep Holdings Limited
Directors’ report
30 June 2016
Details of the vesting profile of the short-term incentive cash bonuses awarded as remuneration to each director of the
Company and each of the named other key management personnel of the Group are detailed below:
Executive Directors
Mr. D Marino
Mr. P Odouard
Other key management personnel
Mr. J Johnson
Mr. M Schramko
Mr. T Olding
Ms T Swinley
Dr J Schlimbach
Included in
remuneration $ (1)
% vested in
year (2)
% lapsed in year
(2)
(13,933)
(22,680)
(15,195)
(9,677)
(6,701)
(8,135)
(16,245)
0%
0%
0%
0%
0%
0%
0%
100%
100%
100%
100%
100%
100%
100%
(1) Amounts included in remuneration for the financial year represent the amount that vested in the financial year
based on estimated achievement of Group and/or personal goals and satisfaction criteria and an accrual
adjustment in relation to FY15.
(2) The amounts lapsed are due to the Group performance, personal performance or service criteria not being met in
relation to the current financial year.
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(cid:6)(cid:8)
Contents
Segment information
Revenue
Loss per share
Income tax expense
Financial assets and financial liabilities
Non-financial assets and liabilities
Equity
Financial statements
Consolidated statement of profit or loss and other comprehensive income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
1
2
3 Material profit and loss items
4 Other income and expenses
5
6
7
8
9
10 Cash flow information
11
12 Group entities
13 Capital and other commitments
14 Events occurring after the reporting period
15 Related party transactions
16 Share-based payments
17 Remuneration of auditors
18 Parent entity financial information
19 Significant accounting policies
20 Determination of fair values
Directors’ declaration
Lead auditors’ independence declaration
Independent auditor’s report to the members
Financial instruments - fair values and risk management
36
37
38
39
40
41
41
42
43
43
44
48
51
52
53
57
58
58
58
59
61
61
62
70
71
72
73
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ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Other current assets
Inventories
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Deferred revenue
Loans and borrowings
Employee benefit obligations
Total current liabilities
Non-current liabilities
Deferred revenue
Loans and borrowings
Employee benefit obligations
Total non-current liabilities
Total liabilities
Net assets/ (liabilities)
EQUITY
Share capital
Reserves
Accumulated losses
Total equity
Quickstep Holdings Limited
Consolidated balance sheet
As at 30 June 2016
Notes
2016
$000
2015
$000
7(a)
7(b)
7(c)
7(d)
8(a)
8(b)
8(c)
7(e)
7(f)
7(g)
8(d)
7(f)
7(g)
8(d)
7,578
5,320
963
398
11,906
26,165
13,058
25
13,083
39,248
7,196
3,182
2,159
950
13,487
1,566
9,764
199
11,529
25,016
1,170
5,134
709
528
5,982
13,523
12,025
20
12,045
25,568
4,566
3,204
5,244
748
13,762
2,426
10,500
113
13,039
26,801
14,232
(1,233)
9(a)
9(b)
9(c)
109,118
3,466
(98,352)
88,228
3,106
(92,567)
14,232
(1,233)
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2016
Quickstep Holdings Limited
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2016
Revenue
Cost of sales of goods
Gross profit
Other income
Research and development expenses
Corporate and administrative expenses
Other expenses
Loss from operating activities
Finance income
Finance expenses
Net finance costs
Loss before income tax
Income tax benefit
Loss for the period
Other comprehensive (loss)/ income net of income tax
Item that may be reclassified to profit or loss
Reclassification of foreign currency translation reserve on closure of US
subsidiary
Exchange difference on translation of a foreign operation
Other comprehensive income/ (loss) for the period, net of tax
Total comprehensive (loss)/ income for the period
SPACE
Earnings per share for loss attributable to the ordinary equity holders
of the company:
Basic loss per share
Diluted loss per share
5
5
Notes
2
2016
$000
50,128
(39,681)
10,447
2015
$000
restated
39,511
(32,556)
6,955
4(a)
460
1,817
4(b)
4(e)
4(e)
6
(3,487)
(7,567)
(2,034)
(2,181)
1,008
(4,612)
(3,604)
(5,785)
-
(2,051)
(7,158)
(286)
(723)
1,024
(4,238)
(3,214)
(3,937)
-
(5,785)
(3,937)
301
(55)
246
-
(641)
(641)
(5,539)
(4,578)
Cents
Cents
(1.17)
(1.17)
(0.99)
(0.99)
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Certain 2015 expenses have been reclassified to ensure consistency with 2016. There is no change in the
total expenses reported. Refer to Note 19(a) for further details.
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction
with the accompanying notes.
The above consolidated balance sheet should be read in conjunction with the accompanying notes.
(cid:6)(cid:10)
(cid:6)(cid:11)
Consolidated balance sheet
As at 30 June 2016
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Other current assets
Inventories
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Deferred revenue
Loans and borrowings
Employee benefit obligations
Total current liabilities
Non-current liabilities
Deferred revenue
Loans and borrowings
Employee benefit obligations
Total non-current liabilities
Total liabilities
Net assets/ (liabilities)
EQUITY
Share capital
Reserves
Accumulated losses
Total equity
Quickstep Holdings Limited
Consolidated balance sheet
As at 30 June 2016
Notes
2016
$000
2015
$000
7(a)
7(b)
7(c)
7(d)
8(a)
8(b)
8(c)
7(e)
7(f)
7(g)
8(d)
7(f)
7(g)
8(d)
7,578
5,320
963
398
11,906
26,165
13,058
25
13,083
39,248
7,196
3,182
2,159
950
13,487
1,566
9,764
199
11,529
25,016
1,170
5,134
709
528
5,982
13,523
12,025
20
12,045
25,568
4,566
3,204
5,244
748
13,762
2,426
10,500
113
13,039
26,801
14,232
(1,233)
9(a)
9(b)
9(c)
109,118
3,466
(98,352)
88,228
3,106
(92,567)
14,232
(1,233)
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The above consolidated balance sheet should be read in conjunction with the accompanying notes.
(cid:6)(cid:11)
Consolidated statement of changes in equity
For the year ended 30 June 2016
Quickstep Holdings Limited
Consolidated statement of changes in equity
For the year ended 30 June 2016
Share
capital
Notes
$000
Foreign
currency
translatio
n reserve
$000
Share
based
payments
Accumulate
d losses
Total
Equity
$000
$000
$000
Year ended 30 June 2015
Balance at 1 July 2014
Loss for the period
Other comprehensive (loss)
Foreign currency translation difference
for foreign operations
Total comprehensive (loss) for the
period
Transactions with owners in their
capacity as owners:
9(c)
9(b)
Share based payments transactions
9(b)
88,228
-
-
-
-
92
-
(641)
(641)
-
Balance at 30 June 2015
88,228
(549)
3,397
(88,630)
3,087
-
-
-
(3,937)
(3,937)
-
(641)
(3,937)
(4,578)
258
3,655
-
258
(92,567)
(1,233)
Year ended 30 June 2016
Balance at 1 July 2015
Loss for the period
Other comprehensive income/
(loss)
Foreign currency translation difference
for foreign operations
Reclassification of foreign currency
translation reserve on closure of US
subsidiary
Total comprehensive income/
(loss) for the period
Transactions with owners in their
capacity as owners:
Contributions of equity, net of
transaction costs and tax
Share based payments transactions
Total transactions with owners
9(c)
9(b)
9(b)
9(a)
9(b)
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88,228
(549)
3,655
(92,567)
(1,233)
-
-
-
-
20,890
-
20,890
-
-
(5,785)
(5,785)
(55)
301
246
-
-
-
-
(55)
301
(5,785)
(5,539)
-
20,890
114
-
21,004
-
-
114
114
Balance at 30 June 2016
109,118
(303)
3,769
(98,352)
14,232
Net cash (used in) operating activities
10(a)
(4,915)
(6,380)
Cash flows from operating activities
Cash receipts in course of operations
Interest received
Interest paid
Research and development tax incentive and government grants
Cash payments in the course of operations
Cash flows from investing activities
Acquisition costs of plant and equipment and intangible assets
Proceeds from government grant for capital
Proceeds from sale of plant and equipment
(Investment in) / receipts from restricted cash and term deposit
Net cash from (used in) investing activities
Cash flows from financing activities
Net proceeds from issue of shares
Proceeds from borrowings
Repayment of borrowings
Payment of borrowing costs
Finance lease payments
Net cash from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of period
7(a)
Quickstep Holdings Limited
Consolidated statement of cash flows
For the year ended 30 June 2016
Notes
2016
$000
2015
$000
49,190
83
(1,370)
460
(53,278)
27,967
33
(492)
6,053
(39,941)
8(b) & (c)
8(b)
9(a)
(4,034)
622
-
(254)
(3,666)
20,890
-
(5,500)
(329)
(8)
15,053
6,472
1,170
(64)
7,578
(952)
-
257
3,150
2,455
-
5,500
(500)
(404)
(43)
4,553
628
566
(24)
1,170
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
(cid:6)(cid:12)
(cid:6)(cid:13)
Consolidated statement of cash flows
For the year ended 30 June 2016
Cash flows from operating activities
Cash receipts in course of operations
Interest received
Interest paid
Research and development tax incentive and government grants
Cash payments in the course of operations
Quickstep Holdings Limited
Consolidated statement of cash flows
For the year ended 30 June 2016
Notes
2016
$000
2015
$000
49,190
83
(1,370)
460
(53,278)
27,967
33
(492)
6,053
(39,941)
Net cash (used in) operating activities
10(a)
(4,915)
(6,380)
Cash flows from investing activities
Acquisition costs of plant and equipment and intangible assets
Proceeds from government grant for capital
Proceeds from sale of plant and equipment
(Investment in) / receipts from restricted cash and term deposit
Net cash from (used in) investing activities
Cash flows from financing activities
Net proceeds from issue of shares
Proceeds from borrowings
Repayment of borrowings
Payment of borrowing costs
Finance lease payments
Net cash from financing activities
8(b) & (c)
8(b)
9(a)
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of period
7(a)
(4,034)
622
-
(254)
(3,666)
20,890
-
(5,500)
(329)
(8)
15,053
6,472
1,170
(64)
7,578
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
(952)
-
257
3,150
2,455
-
5,500
(500)
(404)
(43)
4,553
628
566
(24)
1,170
(cid:6)(cid:13)
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Notes to the consolidated financial statements
30 June 2016
1. Segment Information
(a)
Description of segments and principal activities
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
The Group has two operating segments, Aerospace Manufacturing and New Technology.
The following summary describes the operations in each of the Group’s reportable segments:
Aerospace Manufacturing – manufacturing aerospace composite components, primarily using
manufacturing technologies such as autoclaves, and targeting additional manufacturing contracts.
traditional
New Technology – development and manufacturing of parts utilising the Company’s Qure and RST processes and with
capabilities in traditional and next generation technologies, licensing and providing Quickstep machines to Original
Equipment Manufacturers (OEM’s) and their suppliers and further product and technology development.
(b)
Segment results
2015
External revenues
Other income
Total Revenue
2016
Aerospace
Manufacturing
$000
2015
Aerospace
Manufacturing
$000
2016
New
Technology
$000
2015
New
Technology
$000
2016
2015
Total
$000
Total
$000
49,212
326
49,538
33,756
-
33,756
916
134
1,050
5,755
1,817
7,572
50,128
460
50,588
39,511
1,817
41,328
EBIT
4,225
(375)
(6,406)
(348)
(2,181)
(723)
Finance interest expense in relation to Newmarket loan and options arrangement
Depreciation, amortisation & impairment
2,007
2,332
2,721
3,214
193
883
119
2,200
2,452
Reclassification of foreign currency translation reserve upon closure of US
subsidiary
-
3,604
3,214
Total material items included in net loss
Interest expense
Reportable segment profit/(loss)
before income tax
2015
Reportable segment assets
Reportable segment liabilities
21,406
(c)
Major customers
1,504
Manufacturin
g
35,802
(3,589)
(7,289)
(348)
(5,785)
(3,937)
Manufacturin
g
23,053
25,182
Quicksteps
Systems
3,446
3,610
2,515
1,619
39,248
test
25,568
25,016
26,801
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Approximately 93.1% (2015 86.2%) of revenue for the Aerospace Manufacturing segment is attributable to the following
customers
• Northrop Grumman ISS Int. Inc
•
Lockheed Martin Aeronautics Co
In 2015 total sales for New Technology was to OISC ORPE Technologiya.
(d)
Geographical information
The Aerospace Manufacturing and New Technology segments are managed at Quickstep’s head office in Australia.
In presenting information on the basis of geographical segments, segment revenue is based on the geographical location
of customers. Segment assets are based on the geographical location of the assets.
Australia
Europe
United States of America
Total
2016
Revenue
$000
644
984
48,500
50,128
2016
Non-current
assets
$000
12,798
285
-
13,083
2015
Revenue
$000
4
6,269
33,238
39,511
2015
Non-current
assets
$000
11,703
342
-
12,045
(cid:7)(cid:4)
(cid:7)1
The Group derived the following types of revenue from continuing operations
2. Revenue
Sale of goods
Notes to the consolidated financial statements
Quickstep Holdings Limited
30 June 2016
2016
$000
50,128
2016
$
2015
$000
39,511
2015
$
3. Material profit or loss items, included in consolidated statement of profit and loss
The Group has identified a number of items which are material due to the significance of their nature and/or amount.
These are listed separately here to provide better understanding of the financial performance of the Group.
Vertical tails start-up and qualification costs
Termination and restructuring payments
Indirect taxes relating to German operations
(a)
(b)
(c)
(d)
(e)
2016
$000
(556)
(490)
(1,633)
(1,215)
(301)
(4,195)
(a) Labour costs incurred and expenses for qualification of vertical tails prior to first sales revenue generation. These
costs are included in cost of sales in the statement of profit and loss.
(b) Termination and management restructuring costs were made or provided for in this financial year. These costs
are included in corporate administration expenses in the statement of profit and loss.
(c) Quickstep has recognised a provision for potential underpayment of indirect taxes (including but not limited to
social security, VAT and employment taxes) applicable to the employment arrangements of former management
of the German subsidiary. These irregularities were recently identified by the new Quickstep management, and
the Company is still in the process of determining its overall exposure, including its ability to recover amounts
from third parties. These costs are included in other expenses in the statement of profit and loss
(d) The net impact of the accounting treatment for the Newmarket loan using the effective interest rate method and
the movement in the valuation of options associated with that loan. This will continue to be a material item until
the Newmarket options expire or are exercised.
(e) During the year the Group finalised the closure of its previous US subsidiary. As a consequence, the
accumulated foreign currency translation losses have been recycled through the statement of profit and loss.
Notes to the consolidated financial statements
30 June 2016
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
2. Revenue
The Group derived the following types of revenue from continuing operations
Sale of goods
2016
$000
50,128
2016
$
2015
$000
39,511
2015
$
3. Material profit or loss items, included in consolidated statement of profit and loss
The Group has identified a number of items which are material due to the significance of their nature and/or amount.
These are listed separately here to provide better understanding of the financial performance of the Group.
Vertical tails start-up and qualification costs
Termination and restructuring payments
Indirect taxes relating to German operations
Finance interest expense in relation to Newmarket loan and options arrangement
Reclassification of foreign currency translation reserve upon closure of US
subsidiary
Total material items included in net loss
(a)
(b)
(c)
(d)
(e)
2016
$000
(556)
(490)
(1,633)
(1,215)
(301)
(4,195)
(a) Labour costs incurred and expenses for qualification of vertical tails prior to first sales revenue generation. These
costs are included in cost of sales in the statement of profit and loss.
(b) Termination and management restructuring costs were made or provided for in this financial year. These costs
are included in corporate administration expenses in the statement of profit and loss.
(c) Quickstep has recognised a provision for potential underpayment of indirect taxes (including but not limited to
social security, VAT and employment taxes) applicable to the employment arrangements of former management
of the German subsidiary. These irregularities were recently identified by the new Quickstep management, and
the Company is still in the process of determining its overall exposure, including its ability to recover amounts
from third parties. These costs are included in other expenses in the statement of profit and loss
(d) The net impact of the accounting treatment for the Newmarket loan using the effective interest rate method and
the movement in the valuation of options associated with that loan. This will continue to be a material item until
the Newmarket options expire or are exercised.
(e) During the year the Group finalised the closure of its previous US subsidiary. As a consequence, the
accumulated foreign currency translation losses have been recycled through the statement of profit and loss.
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(cid:7)1
Notes to the consolidated financial statements
30 June 2016
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
Notes to the consolidated financial statements
Quickstep Holdings Limited
30 June 2016
4. Other income and expenses
This note provides a breakdown of the items included in ’other income’, ‘other expenses’, ‘finance income and costs’ and an
analysis of expenses by nature.
5. Loss per share
(a)
Other income
Grants received as revenue
R & D tax incentive
(b)
Other expenses
Amortisation of intangibles
Marketing expenses
Indirect taxes related to German operations
Loss on disposal of plant and equipment
Loss on disposal of assets held for sale
(c)
Breakdown of expense by nature
Employee benefit expenses
Depreciation
Operating lease expense
(d)
Employee benefits expenses
Wages and salaries
Defined contribution plan expense
Other associated personnel expenses
Increase in leave liabilities
Share based payments expense
Notes
6(f)
8(c)
8(b)
9(b)
The business commenced the FY15 period with 120 full time equivalents (FTE)
and has grown to 174 FTE as at the end of June 2016. Headcount has increased
to support both the Aerospace manufacturing growth and additional R&D activities.
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(e)
Finance income and expense
Finance income
Interest income
Change in fair value of share option liability
Finance income
Finance expenses
Finance lease interest paid
Interest expense on liabilities measured at amortised cost
Foreign currency losses
Other expenses
Finance expense
Net finance costs
2016
$000
460
-
460
19
199
1,633
183
-
2,034
2015
$000
-
1,817
1,817
31
182
-
70
3
286
21,467
2,500
2,331
16.114
2,804
2,001
26,298
20,919
18,404
1,355
1,306
288
114
21,467
13,114
1,131
1,283
326
257
16,111
83
925
1,008
24
1,000
1,024
-
(3,137)
(1,391)
(84)
(4,612)
(1)
(1,844)
(2,134)
(259)
(4,238)
(3,604)
(3,214)
The calculation of basic loss per share at 30 June 2016 was based on the loss attributable to ordinary shareholders of
$5,785,000 (2015 $3,937,000) and a weighted average number (W.A.N.) of ordinary shares outstanding during the
financial year ended 30 June 2016 of 495,782,664 (2015 397,663,615) calculated as follows:
Note
Actual No.
W.A.N.
Actual No.
W.A.N.
2016
2015
Issued ordinary shares 1 July
Share issue
Effect of shares issued on exercise of rights
to Executives as remuneration
Issued ordinary shares at 30 June
397,873,501
164,005,589
397,873,501
397,457,534
397,457,534
97,611,636
-
-
9(a)
562,474,143
495,782,664
397,873,501
397,663,615
595,053
297,527
415,967
206,081
Potential ordinary shares on issue are not considered to be dilutive and therefore the diluted loss per share equals
the basic loss per share.
2016
2015
Weighted average number of ordinary shares (basic and diluted)
Basic and diluted loss cents per share
495,782,664
397,663,615
(1.17)
(0.99)
6. Income tax expense
(a)
Income tax expense
Current tax
Deferred tax
Adjustments for current tax of prior periods
Income tax benefit reported in the consolidated income statement
(b)
Numerical reconciliation of income tax expense to prima facie tax payable
Loss from continuing operations before income tax expense
Tax at the Australian tax rate of 30.0% (2015 - 30.0%)
Expenditure not allowable for income tax purposes
Effect of different tax rate for overseas subsidiaries
Income not assessable
Deferred tax asset not brought to account
Prior year adjustment
Income tax expense
2016
$000
-
-
-
-
(5,785)
(1,736)
37
391
(277)
1,298
287
-
2015
$000
-
-
-
-
-
-
(3,937)
(1,181)
759
(85)
(995)
1,502
(b)
Tax losses not bought to account
The gross amount of unused tax losses for which no deferred tax asset has been recognised
64,247
59,894
(cid:7)(cid:6)
(cid:7)(cid:7)
Notes to the consolidated financial statements
30 June 2016
5. Loss per share
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
The calculation of basic loss per share at 30 June 2016 was based on the loss attributable to ordinary shareholders of
$5,785,000 (2015 $3,937,000) and a weighted average number (W.A.N.) of ordinary shares outstanding during the
financial year ended 30 June 2016 of 495,782,664 (2015 397,663,615) calculated as follows:
Note
2016
Actual No.
W.A.N.
Actual No.
W.A.N.
2015
Issued ordinary shares 1 July
Share issue
Effect of shares issued on exercise of rights
to Executives as remuneration
Issued ordinary shares at 30 June
397,873,501
164,005,589
397,873,501
97,611,636
397,457,534
-
397,457,534
-
9(a)
595,053
562,474,143
297,527
495,782,664
415,967
397,873,501
206,081
397,663,615
Potential ordinary shares on issue are not considered to be dilutive and therefore the diluted loss per share equals
the basic loss per share.
2016
2015
Weighted average number of ordinary shares (basic and diluted)
Basic and diluted loss cents per share
495,782,664
(1.17)
397,663,615
(0.99)
6. Income tax expense
(a)
Income tax expense
Current tax
Deferred tax
Adjustments for current tax of prior periods
Income tax benefit reported in the consolidated income statement
Numerical reconciliation of income tax expense to prima facie tax payable
(b)
Loss from continuing operations before income tax expense
Tax at the Australian tax rate of 30.0% (2015 - 30.0%)
Expenditure not allowable for income tax purposes
Effect of different tax rate for overseas subsidiaries
Income not assessable
Deferred tax asset not brought to account
Prior year adjustment
Income tax expense
2016
$000
-
-
-
-
(5,785)
(1,736)
37
391
(277)
1,298
287
-
2015
$000
-
-
-
-
(3,937)
(1,181)
759
(85)
(995)
1,502
-
-
(b)
The gross amount of unused tax losses for which no deferred tax asset has been recognised
Tax losses not bought to account
64,247
59,894
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(cid:7)(cid:7)
Notes to the consolidated financial statements
30 June 2016
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
Notes to the consolidated financial statements
Quickstep Holdings Limited
30 June 2016
6. Income tax expense (continued)
7. Financial assets and financial liabilities (continued)
Temporary differences not brought to account
(d)
Deferred tax assets/(liabilities):
Other provisions
Borrowing costs
Deductible capital raising costs
Property, plant and equipment
Intangibles
Deferred tax assets relating to temporary differences not recognised
2016
$000
2015
$000
630
14
363
2,063
208
(3,278)
-
1,237
14
169
1,654
207
(3,281)
-
The deductible temporary differences and tax losses do not expire under current tax legislation. Deferred tax assets have
not been recognised in respect of these items because the Group considers that it is not currently probable that the
deferred tax asset will be recovered in the near future.
(f)
Tax consolidation legislation
Quickstep Holdings Limited and its 100% owned Australian resident subsidiaries have formed a tax consolidated Group
effective from 1 July 2010.
(g)
R&D tax offset incentive
(c)
Other financial assets
Current assets
Held to maturity term deposits
(d)
Other assets
Current assets
Prepayments
Other
(e)
Trade and other payables
Current liabilities
Trade payables
Sundry payables and accrued expenses
No R&D tax offset incentive has been recorded as receivable as at 30 June 2016 due to current year turnover exceeding
the threshold for eligibility for any further cash entitlements.
(f)
Deferred revenue
2016
$000
2015
$000
963
709
2016
$000
2015
$000
365
33
398
495
33
528
2016
$000
4,728
2,468
7,196
2015
$000
2,253
2,313
4,566
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7. Financial assets and financial liabilities
(a)
Cash and cash equivalents
Current assets
Cash at bank and in hand
2016
$000
2015
$000
7,578
1,170
Cash and cash equivalents of $7,533,000 (2015 $734,000) have been pledged as collateral against a secured bank loan
(refer to Note 7(g)).
(b)
Trade and other receivables
Current assets
Trade receivables
Other receivables
Government grant receivable
GST and VAT receivables
Payroll tax refund receivable
Other
2016
$000
2015
$000
4,394
4,456
77
276
292
281
5,320
-
412
241
25
5,134
Trade and other receivables of $4,371,000 (2015 $4,494,000) have been pledged as collateral against a secured bank loan
(refer Note 7(g)).
Deferred revenue
3,182
1,566
4,748
3,204
2,426
5,630
2016
Non-
Current
current
$000
$000
Total
$000
Current
$000
2015
Non-
current
$000
Total
$000
The amounts reported as 2016 deferred revenue include:
1. Lockheed Martin Aeronautics Co - a 30% advance payment for long lead time materials for C-130J wing flaps,
income will be recognised by August 2016.
2. Lockheed Martin Aeronautics Co - amount received in advance to support the robotic drill project, income will be
recognised by September 2019.
3. Marand Precision Engineering Pty Ltd - amount received in advance for Vertical Tails to be on sold to BAE,
income expected to be fully recognised by September 2017.
4. Korea Institute of Science and Technology – 70% deposit received on signing of contract for the supply and
installation of a Quickstep Spraying and Curing Solution for composite materials for research and development
purposes. Order received February 2016 due for delivery In December 2016, at which time this revenue will be
recognised.
(cid:7)(cid:8)
(cid:7)(cid:9)
Notes to the consolidated financial statements
30 June 2016
7. Financial assets and financial liabilities (continued)
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
(c)
Other financial assets
Current assets
Held to maturity term deposits
(d)
Other assets
Current assets
Prepayments
Other
(e)
Trade and other payables
Current liabilities
Trade payables
Sundry payables and accrued expenses
(f)
Deferred revenue
2016
$000
2015
$000
963
709
2016
$000
2015
$000
365
33
398
495
33
528
2016
$000
4,728
2,468
7,196
2015
$000
2,253
2,313
4,566
Deferred revenue
3,182
1,566
4,748
3,204
2,426
5,630
2016
Non-
current
$000
Current
$000
Total
$000
Current
$000
2015
Non-
current
$000
Total
$000
The amounts reported as 2016 deferred revenue include:
1. Lockheed Martin Aeronautics Co - a 30% advance payment for long lead time materials for C-130J wing flaps,
income will be recognised by August 2016.
2. Lockheed Martin Aeronautics Co - amount received in advance to support the robotic drill project, income will be
recognised by September 2019.
3. Marand Precision Engineering Pty Ltd - amount received in advance for Vertical Tails to be on sold to BAE,
income expected to be fully recognised by September 2017.
4. Korea Institute of Science and Technology – 70% deposit received on signing of contract for the supply and
installation of a Quickstep Spraying and Curing Solution for composite materials for research and development
purposes. Order received February 2016 due for delivery In December 2016, at which time this revenue will be
recognised.
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4
(cid:7)(cid:9)
Notes to the consolidated financial statements
30 June 2016
7. Financial assets and financial liabilities (continued)
(g)
Loans and borrowings
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
2016
2015
Current
$000
Non-
current
$000
Total
$000
Current
$000
1,250
208
-
1,458
-
-
-
-
700
1
2,159
8,250
1,674
(160)
9,764
-
-
-
-
-
-
9,764
9,500
1,882
(160)
11,222
-
-
-
-
700
1
11,923
630
-
-
630
2,000
3,000
(2,019)
981
1,625
8
5,244
Non-
current
$000
9,370
1,524
(394)
10,500
-
-
-
-
-
-
10,500
Total
$000
10,000
1,524
(394)
11,130
2,000
3,000
(2,019)
981
1,625
8
15,744
Secured bank loan (ii)
Capitalised interest facility (ii)
Prepaid borrowing cost (ii)
Secured bank loan carrying amount
Short term facility-Efic (iii)
Short term facility – Newmarket loan (iv)
Short term facility-Newmarket loan deferred costs (iv)
Newmarket loan carrying amount
Newmarket share options at fair value (iv)
Finance lease liability (v)
(i) Term and debt repayment schedule
Effective
interest rate
Year of maturity
2016
2015
Maximum
facility
value
$000
Carry
amount
$000
Maximum
facility
value
$000
Carry
amount
$000
Secured bank loan
Capitalised Interest
Short term facility - Efic
Short term facility - Newmarket
Finance lease liabilities
8.448
8.448
n/a
n/a
8.397
2021
2021
2016
2016
2017
10,000
3,333
-
-
n/a
9,500
1,882
-
-
1
10,000
3,333
2,000
3,000
n/a
10,000
1,524
2,000
3,000
8
(ii) Secured bank loan
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4
On 1 November 2011 Quickstep Technologies Pty Ltd, a subsidiary Company of the Group, executed an Export Finance
Facility Agreement with Australian and New Zealand Banking Group Limited (ANZ) (Financier) and Export Finance and
Insurance Corporation (EFIC) (Guarantor) to fund certain capital expenditure. The Agreement provides for a loan facility of
up to $10,000,000 plus capitalised interest of up to $3,333,000.
Loan repayments commenced on 30 April 2016, with the final repayment due in 2021.
Interest is to be capitalised until the maximum facility value of $3,333,333 is reached. At 30 June 2016 the interest facility
has been drawn to $1,882,000, after paying in this financial year an amount of $83,000 (2015 Nil).
The interest rate on the facility comprises a variable base rate, a fixed margin payable to the Financier and a fixed
guarantee fee payable to the Guarantor. Unused limit fees are payable to both the Financier and the Guarantor on the
undrawn principle balance.
The facility includes an interest rate cap which limits the maximum rate applicable to the base rate for the duration of the
capitalisation period to 5.03%. This cap ensures that the interest accruing on the facility remains within the capitalised
interest limit. The cost of the cap has been recorded as prepaid borrowing cost and is recognised in the profit and loss
through the effective interest rate method, with a carrying value of $160,000 at 30 June 2016 (2015 $394,000).
EFIC has agreed to guarantee certain of the subsidiary’s obligations under the facility. The subsidiary has provided EFIC
with a fixed and floating charge over its assets and undertakings. The carrying value of total assets pledged as collateral
at 30 June 2016 is $34,831,000 (2015 $23,173,000) which represents the cash and cash equivalents, plant and
equipment, inventory and other assets owned by Quickstep Technologies Pty Ltd.
Notes to the consolidated financial statements
Quickstep Holdings Limited
30 June 2016
7. Financial assets and financial liabilities (continued)
(g)
Loans and borrowings (continued)
(ii) Secured bank loan (continued)
Under this agreement, Quickstep Technologies Pty Ltd (Chargor) has agreed to the following restrictions on title on any of
the assets under which EFIC (Chargee) has a fixed charge over. Without the consent of the Chargee, the Chargor may
not:
•
•
•
dispose of the Secured Property; or
lease or license the Secured Property or any interest in it, or deal with any existing lease or licence; or
part with possession of the Secured Property; or
• waive any of the Chargor’s rights or release any person from its obligations in connection with the
•
deal in any other way with the Secured Property or any interest in it, or allow any interest in it to arise or
Secured Property; or
be varied.
Quickstep Holdings Limited has entered into a subordination agreement which subordinates certain intercompany debts
due to it from Quickstep Technologies Pty Ltd to the amounts due under the Export Finance Facility. The face value of this
subordinated intercompany debt at 30 June 2016 is $94,570,000 (2015 $88,017,000) and its carrying value net of
impairment is $55,190,000 (2015 $35,979,000).
(iii) Short term facility – Efic
Quickstep Holdings Limited was party to a short term debt facility provided by the Export Finance and Insurance
Corporation. Quickstep repaid this debt facility in full on 31 December 2015.
(iv) Short term facility – Newmarket loan
In February 2015 a $3,000,000 debt facility was secured from Newmarket Financing Management Pty Ltd and Associates
(Newmarket). This facility provided short-term working capital support to assist Quickstep’s long term growth as its
deliveries for the F-35 Lightning II Joint Strike Fighter (JSF) and Lockheed Martin C-130J Super Hercules programs
accelerated.
Quickstep repaid the debt facility in full on 30 October 2015. At the date of repayment the loan had a carrying value of
$1,573,475. The $1,426,525 difference between the carrying amount and the $3,000,000 repaid has been recognised in
the profit and loss as an interest expense.
The difference is a consequence of the initial fair value of the options noted below being deferred against the $3,000,000
face value of the loan on inception and then amortised through profit and loss using the effective interest rate method over
the 18 month term of the loan. For the financial year $720,303 of interest expense has been recognised in profit and loss
using the effective interest rate method. The total recognised interest expense on the Newmarket facility during the
financial year is, therefore, $2,146,555. The actual interest paid during the financial year in respect of this facility was
$121,069.
As partial consideration for providing the loan, Quickstep has issued 25 million options to Newmarket to acquire ordinary
shares in Quickstep. These options expire on 31 December 2018. Following the capital raise completed by Quickstep
during FY16 the exercise price of the options has been set at 16.25 cents per share.
The options were revalued to a fair value of 2.8 cents (2015 6.5 cents) per share or $700,000 at 30 June 2016 (2015
$1,625,000). The gain of $925,000 (2015 $1,000,000) has been recognised through the profit and loss as finance income
A Binomial Tree model was used to value these rights per dollar issued. The model's key assumptions were as follows:
(Note 4).
Valuation date
Award type
Expiry date
date
Exercise price
Contractual life
Risk free interest rate
Volatility of QHL
Dividend yield
Share price at the valuation
30 June 2016
Options
31 December 2018
$0.1300
$0.1625
2.5 years
1.55%
45%
0%
(cid:7)(cid:10)
(cid:7)(cid:11)
Notes to the consolidated financial statements
30 June 2016
7. Financial assets and financial liabilities (continued)
(g)
Loans and borrowings (continued)
(ii) Secured bank loan (continued)
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
Under this agreement, Quickstep Technologies Pty Ltd (Chargor) has agreed to the following restrictions on title on any of
the assets under which EFIC (Chargee) has a fixed charge over. Without the consent of the Chargee, the Chargor may
not:
dispose of the Secured Property; or
lease or license the Secured Property or any interest in it, or deal with any existing lease or licence; or
part with possession of the Secured Property; or
•
•
•
• waive any of the Chargor’s rights or release any person from its obligations in connection with the
•
Secured Property; or
deal in any other way with the Secured Property or any interest in it, or allow any interest in it to arise or
be varied.
Quickstep Holdings Limited has entered into a subordination agreement which subordinates certain intercompany debts
due to it from Quickstep Technologies Pty Ltd to the amounts due under the Export Finance Facility. The face value of this
subordinated intercompany debt at 30 June 2016 is $94,570,000 (2015 $88,017,000) and its carrying value net of
impairment is $55,190,000 (2015 $35,979,000).
(iii) Short term facility – Efic
Quickstep Holdings Limited was party to a short term debt facility provided by the Export Finance and Insurance
Corporation. Quickstep repaid this debt facility in full on 31 December 2015.
(iv) Short term facility – Newmarket loan
In February 2015 a $3,000,000 debt facility was secured from Newmarket Financing Management Pty Ltd and Associates
(Newmarket). This facility provided short-term working capital support to assist Quickstep’s long term growth as its
deliveries for the F-35 Lightning II Joint Strike Fighter (JSF) and Lockheed Martin C-130J Super Hercules programs
accelerated.
Quickstep repaid the debt facility in full on 30 October 2015. At the date of repayment the loan had a carrying value of
$1,573,475. The $1,426,525 difference between the carrying amount and the $3,000,000 repaid has been recognised in
the profit and loss as an interest expense.
The difference is a consequence of the initial fair value of the options noted below being deferred against the $3,000,000
face value of the loan on inception and then amortised through profit and loss using the effective interest rate method over
the 18 month term of the loan. For the financial year $720,303 of interest expense has been recognised in profit and loss
using the effective interest rate method. The total recognised interest expense on the Newmarket facility during the
financial year is, therefore, $2,146,555. The actual interest paid during the financial year in respect of this facility was
$121,069.
As partial consideration for providing the loan, Quickstep has issued 25 million options to Newmarket to acquire ordinary
shares in Quickstep. These options expire on 31 December 2018. Following the capital raise completed by Quickstep
during FY16 the exercise price of the options has been set at 16.25 cents per share.
The options were revalued to a fair value of 2.8 cents (2015 6.5 cents) per share or $700,000 at 30 June 2016 (2015
$1,625,000). The gain of $925,000 (2015 $1,000,000) has been recognised through the profit and loss as finance income
(Note 4).
A Binomial Tree model was used to value these rights per dollar issued. The model's key assumptions were as follows:
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Valuation date
Award type
Expiry date
Share price at the valuation
date
Exercise price
Contractual life
Risk free interest rate
Volatility of QHL
Dividend yield
30 June 2016
Options
31 December 2018
$0.1300
$0.1625
2.5 years
1.55%
45%
0%
(cid:7)(cid:11)
Notes to the consolidated financial statements
30 June 2016
Quickstep Holdings Limited
7. Financial assets and financial liabilities (continued)
(g)
Loans and borrowings (continued)
Notes to the consolidated financial statements
30 June 2016
8. Non Financial assets and liabilities (continued)
(b)
Property, plant and equipment
Notes to the consolidated financial statements
Quickstep Holdings Limited
30 June 2016
(v) Finance lease liabilities
Future minimum lease payments
Less than one year
Between one and five years
Interest
Less than one year
Between one and five years
Present value of minimum lease payments
Less than one year
Between one and five years
8. Non-financial assets and liabilities
(a)
Inventories
Current assets
Raw materials and consumables
Work in progress
Finished goods
2016
$000
2015
$000
1
-
1
-
-
-
1
-
1
8
1
9
1
-
1
7
1
8
2016
$000
2015
$000
6,154
4,448
1,304
11,906
2,584
2,359
1,039
5,982
Inventories of $10,758,000 (2015 $5,981,000) have been pledged as collateral against a secured bank loan (refer
to Note 7(g)).
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4
Reclassify assets held for sale
Effect of movements in exchange rates
Consolidated
At 1July 2014
Cost
Accumulated depreciation
Net book amount
Year ended 30 June 2015
Opening net book amount
Additions
Disposals
Transfers
Amortisation of grant
Depreciation charge
Closing net book amount
At 30 June 2015
Cost
Accumulated depreciation
Net book amount
Year ended 30 June 2016
Opening net book amount
Government grant received
Additions
Disposals
Amortisation of grant
Depreciation charge
Closing net book amount
At 30 June 2016
Cost
Accumulated depreciation
Net book amount
Effect of movements in exchange rates
Plant and
Assets under
equipment
construction
$000
$000
Office
furniture &
equipment
$000
22,103
(9,186)
12,917
12,917
907
(77)
93
149
(2)
384
(2,672)
11,699
25,582
(13,883)
11,699
11,699
863
(622)
(183)
6
319
(2,412)
9,670
25,384
(15,714)
9,670
(93)
93
-
93
93
30
-
-
-
-
-
30
30
-
30
-
-
-
-
-
30
3,114
3,144
3,144
-
3,144
Total
$000
23,267
(9,813)
13,454
13,454
937
(91)
-
149
(4)
384
(2,804)
12,025
26,554
(14,529)
12,025
12,025
4,010
(622)
(183)
9
319
(2,500)
13,058
1,071
(627)
444
444
(14)
-
-
-
-
(2)
(132)
296
942
(646)
296
296
33
-
-
3
-
(88)
244
984
(740)
244
29,512
(16,454)
13,058
Property, plant and equipment of $11,950,000 (2015 $11,696,000) have been pledged as collateral against a
secured bank loan (refer to Note 7(g)).
(cid:7)(cid:12)
(cid:7)(cid:13)
Notes to the consolidated financial statements
30 June 2016
8. Non Financial assets and liabilities (continued)
(b)
Property, plant and equipment
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
Consolidated
At 1July 2014
Cost
Accumulated depreciation
Net book amount
Year ended 30 June 2015
Opening net book amount
Additions
Disposals
Transfers
Reclassify assets held for sale
Effect of movements in exchange rates
Amortisation of grant
Depreciation charge
Closing net book amount
At 30 June 2015
Cost
Accumulated depreciation
Net book amount
Year ended 30 June 2016
Opening net book amount
Additions
Government grant received
Disposals
Effect of movements in exchange rates
Amortisation of grant
Depreciation charge
Closing net book amount
At 30 June 2016
Cost
Accumulated depreciation
Net book amount
Plant and
equipment
$000
Assets under
construction
$000
Office
furniture &
equipment
$000
22,103
(9,186)
12,917
12,917
907
(77)
93
149
(2)
384
(2,672)
11,699
25,582
(13,883)
11,699
11,699
863
(622)
(183)
6
319
(2,412)
9,670
25,384
(15,714)
9,670
93
-
93
93
30
-
(93)
-
-
-
-
30
30
-
30
30
3,114
-
-
-
-
-
3,144
3,144
-
3,144
Total
$000
23,267
(9,813)
13,454
13,454
937
(91)
-
149
(4)
384
(2,804)
12,025
26,554
(14,529)
12,025
12,025
4,010
(622)
(183)
9
319
(2,500)
13,058
1,071
(627)
444
444
-
(14)
-
-
(2)
-
(132)
296
942
(646)
296
296
33
-
-
3
-
(88)
244
984
(740)
244
29,512
(16,454)
13,058
Property, plant and equipment of $11,950,000 (2015 $11,696,000) have been pledged as collateral against a
secured bank loan (refer to Note 7(g)).
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4
(cid:7)(cid:13)
Notes to the consolidated financial statements
30 June 2016
8. Non Financial assets and liabilities (continued)
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
(c)
Intangible assets
Computer software
Cost
Accumulation amortisation and impairment
Net book amount at the beginning of the year
Opening net book amount
Additions
Amortisation for the year
Closing net book amount
Cost
Accumulation amortisation and impairment
Net book amount at close of financial year
(c)
Employee benefit obligations
2016
$000
730
(710)
20
20
24
(19)
25
754
(729)
25
2015
$000
715
(679)
36
36
15
(31)
20
730
(710)
20
Current
$000
2016
Non-current
$000
Total
$000
Current
$000
2015
Non-current
$000
Total
$000
Heading
Liability for annual leave
Liability for long service leave
Total
950
-
950
-
199
199
950
199
1,149
748
-
748
-
113
113
748
113
861
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5
These options do not entitle the holders to participate in any share issue of the Company or any other body corporate.
At 30 June 2016, details of unissued ordinary shares of the Company under option are:
Expiry date
Exercise price
Number of options
31 December 2018
$0.1625
2016
25,000,000
Further details regarding the 25,000,000 of options are set out in Note 7(g) (iv).
(iii) Rights
Movements in unissued shares under rights:
Opening balance
Granted during the year
Rights vested
Rights lapsed
Closing balance
The rights are issued pursuant to:
completed.
conditions and service criteria.
(Refer to Note 16).
• Executive services agreements, which rights vest at various times in the future according to years of service
• Offers under the Incentive Rights Plan (IRP), which vests at various future dates upon satisfaction of performance
• The exercise price of the rights is Nil and the rights are lapsed if employment is terminated prior to the vesting date
(cid:8)(cid:4)
41
9. Equity
(a)
Share capital
(i) Movements in ordinary shares
Notes to the consolidated financial statements
Quickstep Holdings Limited
30 June 2016
2016
Shares
2015
Shares
2016
$000
2015
$000
2016
Shares
2015
Shares
2016
$000
2015
$000
Ordinary shares - fully paid
562,474,143
397,873,501
109,118
88,228
Opening balance
Issue of ordinary shares, net of costs (a)
Shares issued under share based payments arrangements (b)
Closing balance
397,873,501
164,005,589
595,053
397,457,534
-
415,967
88,228
20,890
-
88,228
-
-
562,474,143
397,873,501
109,118
88,228
(a) On 27 October 2015 the Board of Directors approved the undertaking of a $22,000,000 capital raising comprising an
institutional placement of $5,000,000 for 33,333,333 shares at an exercise price of $0.15 cents per share and an
entitlement offer to existing shareholders at an exercise price of $0.13 cents per share for 130,672,256 shares. The
placement was undertaken by the Board of Directors in accordance with ASX Listing Rule 7.1. The capital raising
was undertaken across October and December 2015 and costs of $1,110,000 were incurred.
(b) During the year, the Company issued 595,053 (2015 415,967) shares pursuant to share-based payment
arrangements with certain key management personnel.
The Company does not have authorised capital or par value in respect of its issued shares. All issued shares are fully
paid.
(ii) Options
Unissued shares under option
Movements in unissued shares under option:
Opening balance
Granted during the year
Options lapsed
Closing balance
2016
2015
No of options
No of options
28,256,593
-
(3,256,593)
25,000,000
3,256,593
25,000,000
-
28,256,593
2016
No of rights
5,449,313
2,883,055
(415,282)
(2,143,419)
5,773,667
2015
No of rights
802,000
4,945,825
-
(298,512)
5,449,313
Notes to the consolidated financial statements
30 June 2016
9. Equity
(a)
Share capital
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
2016
Shares
2015
Shares
2016
$000
2015
$000
Ordinary shares - fully paid
562,474,143
397,873,501
109,118
88,228
(i) Movements in ordinary shares
2016
Shares
2015
Shares
2016
$000
2015
$000
Opening balance
Issue of ordinary shares, net of costs (a)
Shares issued under share based payments arrangements (b)
Closing balance
397,873,501
164,005,589
595,053
562,474,143
397,457,534
-
415,967
397,873,501
88,228
20,890
-
109,118
88,228
-
-
88,228
(a) On 27 October 2015 the Board of Directors approved the undertaking of a $22,000,000 capital raising comprising an
institutional placement of $5,000,000 for 33,333,333 shares at an exercise price of $0.15 cents per share and an
entitlement offer to existing shareholders at an exercise price of $0.13 cents per share for 130,672,256 shares. The
placement was undertaken by the Board of Directors in accordance with ASX Listing Rule 7.1. The capital raising
was undertaken across October and December 2015 and costs of $1,110,000 were incurred.
(b) During the year, the Company issued 595,053 (2015 415,967) shares pursuant to share-based payment
arrangements with certain key management personnel.
The Company does not have authorised capital or par value in respect of its issued shares. All issued shares are fully
paid.
(ii) Options
Unissued shares under option
Movements in unissued shares under option:
Opening balance
Granted during the year
Options lapsed
Closing balance
2016
No of options
28,256,593
-
(3,256,593)
25,000,000
2015
No of options
3,256,593
25,000,000
-
28,256,593
These options do not entitle the holders to participate in any share issue of the Company or any other body corporate.
At 30 June 2016, details of unissued ordinary shares of the Company under option are:
Expiry date
Exercise price
31 December 2018
$0.1625
Number of options
2016
25,000,000
Further details regarding the 25,000,000 of options are set out in Note 7(g) (iv).
(iii) Rights
Movements in unissued shares under rights:
t
r
o
p
e
R
l
a
i
c
n
a
n
i
F
1
5
Opening balance
Granted during the year
Rights vested
Rights lapsed
Closing balance
2016
No of rights
5,449,313
2,883,055
(415,282)
(2,143,419)
5,773,667
2015
No of rights
802,000
4,945,825
-
(298,512)
5,449,313
The rights are issued pursuant to:
• Executive services agreements, which rights vest at various times in the future according to years of service
completed.
• Offers under the Incentive Rights Plan (IRP), which vests at various future dates upon satisfaction of performance
conditions and service criteria.
• The exercise price of the rights is Nil and the rights are lapsed if employment is terminated prior to the vesting date
(Refer to Note 16).
41
Notes to the consolidated financial statements
30 June 2016
Quickstep Holdings Limited
9. Equity (continued)
(b)
Reserves
Notes to the consolidated financial statements
30 June 2016
Balance at 1 July 2014
Grant of rights to shares to key management personnel
Grant of options to key management personnel
Issue of shares to key management personnel
Foreign currency on translation of a foreign operation
Balance at 30 June 2015
Balance at 1 July 2015
Grant of rights to shares to key management personnel
Grant of options to key management personnel
Issue of shares to key management personnel
Foreign currency on translation of a foreign operation
Transfer to profit & loss on closure of US subsidiary in prior year
Balance at 30 June 2016
Notes
16(d)
16(d)
16(d)
16(d)
16(d)
16(d)
(c)
(Accumulated losses)
Balance at beginning of year
Net (loss) for the year
Balance at close of year
10. Cash flow information
Reconciliations of cash flows from operating activities to loss after income tax:
t
r
o
p
e
R
l
a
i
c
n
a
n
i
F
2
5
Loss for the year
Amortisation of intangibles
Depreciation and grant amortisation
Interest income
Share based payment expense
Loss on disposal of assets
Non-cash finance costs
Net foreign currency losses/ (gains)
Change in fair value of share option liability
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
(Decrease) in inventories
Decrease/(increase) in other current assets
Increase/ (decrease) in trade and other payables
Increase in employee benefits
(Decrease) in deferred revenue
Decrease in prepaid interest
Net cash used in operating activities
Share-
based
paymen
ts
$000
Foreign
currency
translation
reserve
$000
3,397
125
53
80
-
3,655
3,655
143
8
(37)
-
-
3,769
92
-
-
-
(641)
(549)
(549)
-
-
-
(55)
301
(303)
Total
$000
3,489
125
53
80
(641)
3,106
3,106
143
8
(37)
(55)
301
3,466
2016
$000
2015
$000
(92,567)
(5,785)
(98,352)
(88,630)
(3,937)
(92,567)
2016
$000
2015
$000
(5,785)
19
2,181
(83)
114
183
2,676
332
(925)
(186)
(5,924)
130
2,713
288
(882)
234
(4,915)
(3,937)
31
2,420
(24)
258
73
1,844
2,134
1,000
1,046
(2,278)
(133)
(1,181)
326
(8,179)
220
(6,380)
42
Notes to the consolidated financial statements
Quickstep Holdings Limited
30 June 2016
11. Financial instruments – fair values and risk management
The Group has exposure to the following risks from their use of financial instruments:
(a)
Overview
• Credit risk
•
Liquidity risk, and
• Market risk.
This note presents information about the Group’s exposure to each of the above risks, their objectives, policies and
processes for measuring and managing risk, and the management of capital. Further quantitative disclosures are included
throughout these financial statements.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework
and is responsible for developing and monitoring risk management policies.
Risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk
limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed
regularly to reflect changes in market conditions and the Group’s activities. The Group, through training and management
standards and procedures, aims to develop a disciplined and constructive control environment in which all employees
understand their roles and obligations.
The Group’s Audit, Risk and Compliance Committee oversees how management monitors compliance with the Group’s
risk management policies and formally documented procedures and reviews the adequacy of the risk management
framework in relation to the risks faced by the Group.
(b)
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Group’s receivables from customers and cash balances and
deposits.
(i) Trade receivables
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However,
management also considers other characteristics including the demographics of the Group’s customer base, the default
risk of the industry and country in which customers operate, as these factors may have an influence on credit risk.
Goods are generally sold subject to retention of title clauses, so that in the event of non-payment the Group may have a
secured claim. The Group does not require collateral in respect of trade and other receivables.
(ii) Cash balances and deposits
The Group limits its exposure to credit risk by only investing in liquid securities and only with counterparties that have a
credit rating of at least A+ from Standard & Poor’s. Given these high credit ratings, management has assessed the risk
that counterparties fail to meet their obligations as low.
As at the reporting date, financial assets are neither past due or impaired.
(iii) Exposure to credit risks
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s maximum
exposure to credit risk at the reporting date was:
The Group’s maximum exposure to credit risk for trade and other receivables at the reporting date by geographic region
Cash and cash equivalents
Held-to-maturity financial assets
Trade and other receivables
was:
Australia
Europe
USA
2016
$000
7,578
963
5,320
13,861
2016
$000
1,408
347
3,565
5,320
2015
$000
1,170
709
5,134
7,013
2015
$000
438
318
4,378
5,134
43
Notes to the consolidated financial statements
30 June 2016
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
11. Financial instruments – fair values and risk management
(a)
Overview
The Group has exposure to the following risks from their use of financial instruments:
• Credit risk
•
• Market risk.
Liquidity risk, and
This note presents information about the Group’s exposure to each of the above risks, their objectives, policies and
processes for measuring and managing risk, and the management of capital. Further quantitative disclosures are included
throughout these financial statements.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework
and is responsible for developing and monitoring risk management policies.
Risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk
limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed
regularly to reflect changes in market conditions and the Group’s activities. The Group, through training and management
standards and procedures, aims to develop a disciplined and constructive control environment in which all employees
understand their roles and obligations.
The Group’s Audit, Risk and Compliance Committee oversees how management monitors compliance with the Group’s
risk management policies and formally documented procedures and reviews the adequacy of the risk management
framework in relation to the risks faced by the Group.
(b)
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Group’s receivables from customers and cash balances and
deposits.
(i) Trade receivables
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However,
management also considers other characteristics including the demographics of the Group’s customer base, the default
risk of the industry and country in which customers operate, as these factors may have an influence on credit risk.
Goods are generally sold subject to retention of title clauses, so that in the event of non-payment the Group may have a
secured claim. The Group does not require collateral in respect of trade and other receivables.
(ii) Cash balances and deposits
The Group limits its exposure to credit risk by only investing in liquid securities and only with counterparties that have a
credit rating of at least A+ from Standard & Poor’s. Given these high credit ratings, management has assessed the risk
that counterparties fail to meet their obligations as low.
As at the reporting date, financial assets are neither past due or impaired.
(iii) Exposure to credit risks
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s maximum
exposure to credit risk at the reporting date was:
Cash and cash equivalents
Held-to-maturity financial assets
Trade and other receivables
2016
$000
7,578
963
5,320
13,861
2015
$000
1,170
709
5,134
7,013
The Group’s maximum exposure to credit risk for trade and other receivables at the reporting date by geographic region
was:
t
r
o
p
e
R
l
a
i
c
n
a
n
i
F
3
5
Australia
Europe
USA
2016
$000
1,408
347
3,565
5,320
2015
$000
438
318
4,378
5,134
43
$000
$000
6 - 12
months
Less than
6 months
000$
Between 1
and 2 years
$000
Between 2
and 5 years
$000
Over 5
years
$000
Contractual maturities of
financial liabilities
Carrying
amount
Contractual
cash
flows
Notes to the consolidated financial statements
30 June 2016
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
Notes to the consolidated financial statements
Quickstep Holdings Limited
30 June 2016
11. Financial instruments – fair values and risk management (continued)
11. Financial instruments – fair values and risk management (continued)
(c)
Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to
ensure, as far as possible, that it will always have sufficient liquid assets to meet its liabilities when due, under both normal
and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.
Typically, the Group ensures that it has sufficient cash or funds otherwise reasonably available to it from fundraising
activities to meet expected operational expenses, including the servicing of financial obligations; this excludes the
potential impact of circumstances that cannot reasonably be predicted. Further details are set out in note 19.
(i) Maturities of financial assets
The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the
impact of netting agreements:
(d)
Market risk
(i) Interest rate risk
interest rate risk.
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the
Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to
manage and control market risk exposures within acceptable parameters, while optimising the return.
The Group is exposed to interest rate risk predominantly on cash balances and deposits. Given the relatively short
investment horizon for these, management has not found it necessary to establish a policy on managing the exposure of
The Group has entered into a variable rate secured loan agreement for a period of 10 years. The facility includes an
allowance to defer interest payments up to $3,333,333 and interest will be accrued on deferred amount. Interest is re-set
on a monthly basis in accordance with the 30 days bank bill rate. The facility includes an interest rate cap which limits the
bank bill rate component of the variable rate to a maximum of 5.03%. This limit will ensure that the interest to be
capitalised will not exceed the capitalisation limit.
Profile
At the reporting date the interest rate profile of the Group’s interest-bearing financial assets/ (liabilities) was:
Fixed rate instruments
Held-to-maturity term deposits (a)
Finance lease liabilities (b)
Short term facility agreement – Newmarket (c)
Variable rate instruments
Cash and cash equivalents (d)
Secured bank loan (e)
Short term facility agreement – Efic (f)
2016
$000
2015
$000
963
(1)
-
962
709
(8)
(3,000)
(2,299)
7,578
1,170
(11,382)
(11,524)
-
(2,000)
(3,804)
(12,354)
As at the end of the reporting period, the Group had the following instruments outstanding:
(a)
Held-to maturity term deposits include five security deposits as follows:
Amount
$274,000
$390,400
$45,000
$75,000
$179,105
Interest rate
2.69%
2.80%
2.47%
2.60%
2.75%
Maturity date
29 July 2016
8 August 2016
19 September 2016
3 October 2016
7 October 2016
(b)
The average interest rate applicable to the Group’s finance leases is 8.397% (2015 8.397%).
(c)
The short term facility provided by Newmarket was subject to a 12% interest rate with interest payable monthly
in arrears. This facility has been repaid during the financial year.
(d)
Cash includes funds held in short term deposits during the year, which earned a weighted average interest rate
of 2.20% (2015 2.39%).
(e)
The secured loan balance (inclusive of capitalised interest) incurs a variable rate of interest, inclusive of a base
rate plus margin. The Group has purchased an interest rate cap which limits the base rate for the first five years
of the loan to 5.03%. The base rate plus margin of this facility was 8.448% at 30 June 2016.
(f)
The short term facility provided by Efic in July 2014 incurred a variable rate of interest inclusive of a base rate
representing Efic cost of funding plus a 2% margin. This facility has been repaid during this financial year.
All other material financial assets and liabilities are non-interest bearing.
(7,196)
(1)
(14,163)
-
(21,360)
(7,196)
(1)
(761)
-
(7,958)
-
-
(1,053)
-
(1,053)
-
-
(2,397)
-
(2,397)
-
-
(8,066)
-
(8,066)
-
-
(1,886)
-
(1,886)
(4,566)
(9)
(14,947)
(4,566)
(4)
(150)
-
(4)
(814)
-
(1)
(2,180)
-
-
(9,059)
-
-
(2,744)
(2,040)
-
(2,040)
-
-
-
-
-
-
-
-
-
(3,360)
(24,922)
(180)
(6,940)
(3,180)
(3,998)
-
(2,181)
-
(9,059)
-
(2,744)
(cid:8)(cid:8)
(cid:8)(cid:9)
At 30 June 2016
Trade and other payables
Finance lease liabilities
Secured bank loan
Newmarket options
At 30 June 2015
Trade and other payables
Finance lease liabilities
Secured bank loan
Short term facility
agreement - Efic
Newmarket options
Short term facility
agreement - Newmarket
$000
7,196
1
11,222
700
19,119
4,566
8
11,130
2,000
1,625
981
20,310
t
r
o
p
e
R
l
a
i
c
n
a
n
i
F
4
5
Notes to the consolidated financial statements
30 June 2016
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
11. Financial instruments – fair values and risk management (continued)
(d)
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the
Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to
manage and control market risk exposures within acceptable parameters, while optimising the return.
(i) Interest rate risk
The Group is exposed to interest rate risk predominantly on cash balances and deposits. Given the relatively short
investment horizon for these, management has not found it necessary to establish a policy on managing the exposure of
interest rate risk.
The Group has entered into a variable rate secured loan agreement for a period of 10 years. The facility includes an
allowance to defer interest payments up to $3,333,333 and interest will be accrued on deferred amount. Interest is re-set
on a monthly basis in accordance with the 30 days bank bill rate. The facility includes an interest rate cap which limits the
bank bill rate component of the variable rate to a maximum of 5.03%. This limit will ensure that the interest to be
capitalised will not exceed the capitalisation limit.
Profile
At the reporting date the interest rate profile of the Group’s interest-bearing financial assets/ (liabilities) was:
Fixed rate instruments
Held-to-maturity term deposits (a)
Finance lease liabilities (b)
Short term facility agreement – Newmarket (c)
Variable rate instruments
Cash and cash equivalents (d)
Secured bank loan (e)
Short term facility agreement – Efic (f)
2016
$000
2015
$000
963
(1)
-
962
709
(8)
(3,000)
(2,299)
7,578
(11,382)
-
(3,804)
1,170
(11,524)
(2,000)
(12,354)
As at the end of the reporting period, the Group had the following instruments outstanding:
(a)
Held-to maturity term deposits include five security deposits as follows:
Amount
$274,000
$390,400
$45,000
$75,000
$179,105
Interest rate
2.69%
2.80%
2.47%
2.60%
2.75%
Maturity date
29 July 2016
8 August 2016
19 September 2016
3 October 2016
7 October 2016
(b)
The average interest rate applicable to the Group’s finance leases is 8.397% (2015 8.397%).
(c)
(d)
(e)
The short term facility provided by Newmarket was subject to a 12% interest rate with interest payable monthly
in arrears. This facility has been repaid during the financial year.
Cash includes funds held in short term deposits during the year, which earned a weighted average interest rate
of 2.20% (2015 2.39%).
The secured loan balance (inclusive of capitalised interest) incurs a variable rate of interest, inclusive of a base
rate plus margin. The Group has purchased an interest rate cap which limits the base rate for the first five years
of the loan to 5.03%. The base rate plus margin of this facility was 8.448% at 30 June 2016.
(f)
The short term facility provided by Efic in July 2014 incurred a variable rate of interest inclusive of a base rate
representing Efic cost of funding plus a 2% margin. This facility has been repaid during this financial year.
All other material financial assets and liabilities are non-interest bearing.
t
r
o
p
e
R
l
a
i
c
n
a
n
i
F
5
5
(cid:8)(cid:9)
Notes to the consolidated financial statements
30 June 2016
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
Notes to the consolidated financial statements
Quickstep Holdings Limited
30 June 2016
11. Financial instruments – fair values and risk management (continued)
11. Financial instruments – fair values and risk management (continued)
(d)
Market risk (continued)
(i) Interest rate risk (continued)
Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss. Therefore a
change in interest rates at the reporting date would not affect profit or loss.
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased (decreased) profit or loss by the
amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remain
constant. The analysis is performed on the same basis for 2015.
(d)
Market risk (continued)
(ii) Currency risk (continued)
Sensitivity analysis
A 10 percent movement of the Australian dollar against the following currencies at 30 June would have affected the
movement of financial instruments denominated in a foreign currency and effected profit and loss by the amounts shown
below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact
of forecast sales and purchases. The analysis is performed on the same basis for FY15.
Profit or loss
Equity, net of tax
Variable rate instruments - increase by 100 basis points
Variable rate instruments - decrease by 100 basis points
Cash flow sensitivity (net)
(ii) Currency risk
2016
$000
(40)
40
-
2015
$000
(123)
123
-
Index
US/AUD exchange rate - increase (10%)
US/AUD exchange rate - decrease 10%
EUR/AUD exchange rate - increase (10%)
EUR/AUD exchange rate - decrease 10%
(e)
Capital management
2016
$000
699
(854)
22
(26)
(159)
2015
$000
378
(462)
61
(74)
(97)
2016
$000
(699)
854
1,080
(1,320)
(85)
2015
$000
(591)
723
(199)
243
176
The Group is exposed to currency risk on sales, purchases and cash holdings that are denominated in a currency other
than the respective functional currencies of Group entities, primarily the Australian dollar (AUD), Euro (EUR) and US
Dollar (USD). The currencies in which these transactions primarily are denominated are AUD, EUR and USD.
In respect of other monetary assets and liabilities denominated in foreign currencies, the Group ensures that its net
exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address
short-term imbalances.
The Group’s investment in its German subsidiary is not hedged as the currency positions are considered to be long-term
in nature.
Exposure
The Group's exposure to foreign currency risk at the end of the reporting period, expressed in Australian dollar, was as
follows:
Receivables
Cash
Trade payables
USD
EUR
2,634
4,442
(1,167)
5,909
232
4
(78)
158
USD
3,640
334
(779)
3,195
EUR
223
292
(52)
463
The following significant exchange rates applied have been applied:
AUD v USD
AUD v EUR
Average rate
2016
2015
Year end spot rate
2015
2016
0.7283
0.6581
0.8382
0.6963
0.7387
0.6681
0.7680
0.6866
t
r
o
p
e
R
l
a
i
c
n
a
n
i
F
6
5
The Group’s objectives are to safeguard the Group’s ability to continue as a going concern and maintain a strong capital
base sufficient to maintain future development in accordance with the business strategy. In order to maintain or adjust the
capital structure, the Group may return capital to shareholders or issue new shares. The Group’s focus has been to raise
sufficient funds through equity and borrowings so as to fund its working capital, aerospace growth and commercialisation
There were no changes in the Group’s approach to capital management during the year.
of technology requirements.
Fair value hierarchy
As at the reporting date, all financial instruments held by Quickstep Holdings Limited are considered level 1 in the fair
value hierarchy except for Newmarket options which are considered level 2 in the fair value hierarchy. Quickstep Holdings
Limited’s financial instruments are primarily made up of cash and cash equivalents and trade receivables, to which there
is active market to ascertain its value. During the year, there have been no transfers from levels in the fair value hierarchy.
12. Group entities
Name of entity
Parent entity
Quickstep Holdings Limited
SPACE
Controlled entities
Quickstep Technologies Pty Limited
Quickstep Systems Pty Limited
Quickstep GmbH
Quickstep Automotive Pty Limited
Quickstep Aerospace Pty Limited
Country of
incorporation
Ownership interest
2016
%
2015
%
Australia
Australia
Australia
Germany
Australia
Australia
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
(cid:8)(cid:10)
(cid:8)(cid:11)
Notes to the consolidated financial statements
30 June 2016
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
11. Financial instruments – fair values and risk management (continued)
(d)
Market risk (continued)
(ii) Currency risk (continued)
Sensitivity analysis
A 10 percent movement of the Australian dollar against the following currencies at 30 June would have affected the
movement of financial instruments denominated in a foreign currency and effected profit and loss by the amounts shown
below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact
of forecast sales and purchases. The analysis is performed on the same basis for FY15.
Profit or loss
Equity, net of tax
Index
US/AUD exchange rate - increase (10%)
US/AUD exchange rate - decrease 10%
EUR/AUD exchange rate - increase (10%)
EUR/AUD exchange rate - decrease 10%
(e)
Capital management
2016
$000
699
(854)
22
(26)
(159)
2015
$000
378
(462)
61
(74)
(97)
2016
$000
(699)
854
1,080
(1,320)
(85)
2015
$000
(591)
723
(199)
243
176
The Group’s objectives are to safeguard the Group’s ability to continue as a going concern and maintain a strong capital
base sufficient to maintain future development in accordance with the business strategy. In order to maintain or adjust the
capital structure, the Group may return capital to shareholders or issue new shares. The Group’s focus has been to raise
sufficient funds through equity and borrowings so as to fund its working capital, aerospace growth and commercialisation
of technology requirements.
There were no changes in the Group’s approach to capital management during the year.
Fair value hierarchy
As at the reporting date, all financial instruments held by Quickstep Holdings Limited are considered level 1 in the fair
value hierarchy except for Newmarket options which are considered level 2 in the fair value hierarchy. Quickstep Holdings
Limited’s financial instruments are primarily made up of cash and cash equivalents and trade receivables, to which there
is active market to ascertain its value. During the year, there have been no transfers from levels in the fair value hierarchy.
12. Group entities
Name of entity
Parent entity
Quickstep Holdings Limited
SPACE
Controlled entities
Quickstep Technologies Pty Limited
Quickstep Systems Pty Limited
Quickstep GmbH
Quickstep Automotive Pty Limited
Quickstep Aerospace Pty Limited
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Country of
incorporation
Ownership interest
2016
%
2015
%
Australia
Australia
Australia
Germany
Australia
Australia
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
(cid:8)(cid:11)
Notes to the consolidated financial statements
30 June 2016
13. Capital and other commitments
(a)
Capital commitments
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
16. Share based payments
(a)
Quickstep Employee Incentive Plan (EIP)
Significant capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as
follows:
Property, plant and equipment
(b)
Non-cancellable operating leases
2016
$000
2015
$000
1,554
-
The Group leases various premises and IT equipment under non-cancellable operating leases expiring within two to eight
years. The leases have varying terms, escalation and renewal rights. On renewal, the terms of the leases are
negotiated.
Commitments for minimum lease payments in relation to non-cancellable operating leases are
payable as follows:
Less than one year
Between one and five years
More than five years
2016
$000
2015
$000
2,275
9,004
1,358
1,805
6,412
9,117
12,637
17,334
14. Events occurring after the reporting period
There have been no significant events that have occurred since the end of the reporting period.
15. Related party transactions
(a)
Key management personnel compensation
The key management personnel compensation included in “Personnel expenses” in note 4(d) is as follows:
In relation to Deferred Rights
Short-term employee benefits
Post-employment benefits
Share-based payments
Termination benefits
2016
$000
3,063
-
95
481
3,639
2015
$000
2,835
150
359
154
3,498
Individual Directors and Key Management Personnel remuneration disclosures
Information regarding individual Directors’ and Executives’ compensation and some equity instruments disclosures as
required by Corporations Regulations 2010 2M.3.03 is provided in the Remuneration Report section of the Directors’
Report.
On 19 December 2015 Mr. J Douglas became a non-executive director of the Group. Mr. Douglas is also a
director of Newmarket. Therefore at 30 June 2016 the Newmarket Options (Note 7(g)) are considered to be held
by a related party.
(cid:8)(cid:12)
(cid:8)(cid:13)
The Company previously established the Quickstep Employee Incentive Plan (EIP). Under the EIP, the Board could grant
options to selected Quickstep employees on such terms as it determined appropriate. Participation in the EIP was open to
all employees of the Group, with the Board determining those employees eligible to participate in each grant under the
EIP. Each option was a conditional right to one Quickstep ordinary share, subject to the satisfaction of the applicable
performance conditions and payment of the exercise price (if any). Further details regarding the EIP are set out in the
Remuneration Report.
Mr. P Odouard was the only employee to be granted options pursuant to the EIP. On 30 June 2016 Mr. P Odouard
departed, as a result all options lapsed and this Plan has now ceased to operate.
The number and weighted average exercise prices (WAEP) of options under the EIP are as follows:
As at 1 July
Options granted
Options exercised
Lapsed during the year
As at at 30 June
2016
No. of options
3,256,593
WAEP
$0.00
No. of options
3,256,593
WAEP
$0.00
-
-
-
(3,256,593)
-
$0.00
3,256,593
$0.00
2015
-
-
-
During 2016, $8,000 (2015 $53,000) has been included as an expense in the financial statements as the portion
attributable to the current financial year as required by accounting standards.
(b)
Quickstep Incentive Rights Plan (IRP)
During the 2014 financial year the Company established the Quickstep Incentive Rights Plan (IRP).
The IRP was designed to facilitate the Company moving towards best practice remuneration structures for executives.
The IRP authorises the granting of Rights to executives of the Company, in the form of Performance Rights (PRs) and/or
Deferred Rights (DRs) (together, Rights). These rights represent an entitlement on vesting to fully paid ordinary shares in
the issued capital of the Company (Shares) and cash with the total value of cash and Shares being equal to the value of
vested Rights (number of vested Rights x market value of a Share). PRs may vest if Performance Conditions are satisfied.
DRs may vest if service conditions are satisfied. Further details regarding the IRP are set out in the Remuneration Report.
At 30 June 2016 executives accrued rights pursuant to the IRP.
During 2016 an expense of $143,000 (2015 $125,000) has been recognised in the financial statements in respect of the
portion of the fair value of rights attributable to the current financial year as required by accounting standards.
A Monte-Carlo model was used to value the rights per dollar issued. The model's key assumptions were as follows:
Tranche
Grant date
First testing date
Share price at grant date
Exercise price
Expected life (years)
Risk free factor
Volatility of QHL
Dividend yield
1
16/02/15
31/08/15
$0.20
Nil
0.5
2.00%
55%
0%
2
16/02/15
31/08/16
$0.20
Nil
1.5
1.87%
55%
0%
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Notes to the consolidated financial statements
30 June 2016
16. Share based payments
(a)
Quickstep Employee Incentive Plan (EIP)
The Company previously established the Quickstep Employee Incentive Plan (EIP). Under the EIP, the Board could grant
options to selected Quickstep employees on such terms as it determined appropriate. Participation in the EIP was open to
all employees of the Group, with the Board determining those employees eligible to participate in each grant under the
EIP. Each option was a conditional right to one Quickstep ordinary share, subject to the satisfaction of the applicable
performance conditions and payment of the exercise price (if any). Further details regarding the EIP are set out in the
Remuneration Report.
Mr. P Odouard was the only employee to be granted options pursuant to the EIP. On 30 June 2016 Mr. P Odouard
departed, as a result all options lapsed and this Plan has now ceased to operate.
The number and weighted average exercise prices (WAEP) of options under the EIP are as follows:
As at 1 July
Options granted
Options exercised
Lapsed during the year
As at at 30 June
2016
No. of options
3,256,593
-
-
(3,256,593)
-
WAEP
$0.00
-
$0.00
2015
No. of options
3,256,593
-
-
-
3,256,593
WAEP
$0.00
$0.00
During 2016, $8,000 (2015 $53,000) has been included as an expense in the financial statements as the portion
attributable to the current financial year as required by accounting standards.
(b)
Quickstep Incentive Rights Plan (IRP)
During the 2014 financial year the Company established the Quickstep Incentive Rights Plan (IRP).
The IRP was designed to facilitate the Company moving towards best practice remuneration structures for executives.
The IRP authorises the granting of Rights to executives of the Company, in the form of Performance Rights (PRs) and/or
Deferred Rights (DRs) (together, Rights). These rights represent an entitlement on vesting to fully paid ordinary shares in
the issued capital of the Company (Shares) and cash with the total value of cash and Shares being equal to the value of
vested Rights (number of vested Rights x market value of a Share). PRs may vest if Performance Conditions are satisfied.
DRs may vest if service conditions are satisfied. Further details regarding the IRP are set out in the Remuneration Report.
At 30 June 2016 executives accrued rights pursuant to the IRP.
During 2016 an expense of $143,000 (2015 $125,000) has been recognised in the financial statements in respect of the
portion of the fair value of rights attributable to the current financial year as required by accounting standards.
A Monte-Carlo model was used to value the rights per dollar issued. The model's key assumptions were as follows:
In relation to Deferred Rights
Tranche
Grant date
First testing date
Share price at grant date
Exercise price
Expected life (years)
Risk free factor
Volatility of QHL
Dividend yield
1
16/02/15
31/08/15
$0.20
Nil
0.5
2.00%
55%
0%
2
16/02/15
31/08/16
$0.20
Nil
1.5
1.87%
55%
0%
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(cid:8)(cid:13)
Notes to the consolidated financial statements
30 June 2016
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
Notes to the consolidated financial statements
Quickstep Holdings Limited
30 June 2016
16. Share based payments (continued)
17. Remuneration of auditors - KPMG
(b)
Quickstep Incentive Rights Plan (IRP) (continued)
In relation to Performance Rights
Tranche
1
2
3
FY14
FY15
FY15(a)
FY16
Amounts received or due and receivable by the auditor KPMG for:
Grant date
First testing date
Expiry date
Share price at grant date
Exercise price
Expected life (years)
Risk free factor
Volatility of QHL
Volatility of AOAI
Dividend yield
16/02/15
31/08/15
31/08/15
$0.20
Nil
0.5
2.00%
55%
12%
0%
16/02/15
31/08/16
31/08/16
$0.20
Nil
1.5
1.87%
55%
12%
0%
16/02/15
31/08/17
31/08/19
$0.20
Nil
2.9
1.86%
55%
12%
0%
31/08/13
31/08/16
31/08/19
$0.195
Nil
3.3
n/a
55%
15%
0%
31/08/14
31/08/17
31/08/19
$0.185
Nil
3.3
2.69%
55%
12%
0%
19/02/15
31/08/17
31/08/19
$0.20
Nil
2.9
1.83%
55%
12%
0%
01/06/16
31/08/18
31/08/20
$0.14
Nil
2.7
1.65%
45%
15%
0%
Movements in the IRP are as follows:
Opening balance
Granted during the year
Rights vested
Rights lapsed
Closing balance
2016
No of rights
2015
No of rights
5,449,313
2,883,055
(415,282)
(2,143,419)
5,773,667
802,000
4,945,825
-
(298,512)
5,449,313
(c)
Equity settled short term incentive
Certain executives are eligible to receive short term incentives (STI) in cash and/or shares based on achievement of key
performance indicators (KPIs). Each year the RN&D Committee considers the appropriate targets and KPIs and the
alignment of individual rewards to the Group's performance. These targets may include measures related to the annual
performance of the Group and/or specified parts of the Group and are measured against actual outcomes. The number of
shares issued to executives is based on the accrued equity settled STI value divided by the weighted average share price
on the date the shares are granted.
In FY16 179,771 shares (2015 415,967) were issued to employees. Due to a reversal of an over accrued STI in FY15 an
expense of $(37,000) (2015 net increase of $80,000) was recognised.
(d)
Employee expenses
The expense recorded in the financial report for the portion attributable to the current financial year as required by
accounting standards is:
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Equity settled short term incentive
IRP, performance rights
EIP options
2016
$000
(37)
143
8
114
2015
$000
80
125
53
258
As at, and throughout, the financial year ending 30 June 2016 the parent entity of the Group was Quickstep Holdings
Audit services
18. Parent entity financial information
Summary financial information
Limited.
Results of the parent entity
Loss for the year
Financial position of the parent entity at year end
Current assets
Total assets
Current liabilities
Total liabilities
Net Assets
Share capital
Reserves
Accumulated losses
Total Equity
Total equity of the parent entity comprises
2016
$
2015
$
220,723 284,700
2016
$000
2015
$000
(21,599)
(5,130)
960
960
1,020
1,020
(1,818)
(1,818)
(2,253)
(2,253)
(858)
(1,233)
109,118
4,740
88,228
3,656
(114,716)
(93,117)
(858)
(1,233)
(cid:9)(cid:4)
(cid:9)1
Notes to the consolidated financial statements
30 June 2016
17. Remuneration of auditors - KPMG
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
Amounts received or due and receivable by the auditor KPMG for:
Audit services
18. Parent entity financial information
Summary financial information
2016
$
2015
$
220,723 284,700
As at, and throughout, the financial year ending 30 June 2016 the parent entity of the Group was Quickstep Holdings
Limited.
Results of the parent entity
Loss for the year
Financial position of the parent entity at year end
Current assets
Total assets
Current liabilities
Total liabilities
Net Assets
Total equity of the parent entity comprises
Share capital
Reserves
Accumulated losses
Total Equity
2016
$000
2015
$000
(21,599)
(5,130)
960
960
1,020
1,020
(1,818)
(1,818)
(2,253)
(2,253)
(858)
(1,233)
109,118
4,740
(114,716)
88,228
3,656
(93,117)
(858)
(1,233)
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(cid:9)1
Notes to the consolidated financial statements
30 June 2016
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
Notes to the consolidated financial statements
Quickstep Holdings Limited
30 June 2016
19. Significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these consolidated
financial statements, and have been applied consistently by all entities in the Group.
19. Significant accounting policies (continued)
(a) Reclassification of comparative information
Reporting entity
Quickstep Holdings Limited (“the Company”) is a company domiciled in Australia. The consolidated financial statements
of the Company comprise the Company and its subsidiaries (together referred to as the “Group” and individually as
“Group Entities”). The Group is a for-profit entity. The Group is at the forefront of advanced composites manufacturing and
technology development and is the largest independent aerospace-grade advanced composite manufacturer in Australia,
currently partnering with some of the world’s largest aerospace/defence organisations and commencing penetration into
the automotive sector.
Basis of preparation
Statement of compliance
These general purpose financial statements have been prepared in accordance with the Australian Accounting Standards
and Interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001. The
consolidated financial statements of the Group also comply with the International Financial Reporting Standards (IFRS) as
issued by the International Accounting Standards Board.
The consolidated financial statements were authorised for issue by the Board of Directors on 22 September 2016.
Basis of measurement
The financial statements are prepared on the historical cost basis. These consolidated financial statements are presented
in Australian dollars, which is the company’s functional currency.
Rounding of amounts
The company is of a kind referred to in Class Order 2016/191 issued by the Australian Securities and Investments
Commission, relating to the ‘rounding off” of amounts in the financial statements and directors’ report. Amounts in the
financial statements and directors’ report have therefore been rounded off to the nearest thousand dollars, or in certain
cases, to the nearest dollar.
Use of estimates and judgements
The preparation of financial statements in conformity with AASBs requires management to make judgements, estimates
and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and
expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and in any future periods affected.
Information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that
have the most significant effect on the amount recognised in the financial statements are described in the following notes:
Going concern
The consolidated financial statements have been prepared on a going concern basis, which assumes that the Group will
be able to meet its commitments as and when they fall due.
The Group has incurred a loss after tax for the year ended 30 June 2016 of $5,785,000 (2015 loss after tax $3,937,000).
Included in this loss are certain individually material items, refer Note 4, to the value of $4,195,000.
The Company is in a net asset position with an appropriate level of cash holdings. The Directors consider that there are
reasonable grounds to expect the Group will be able to meet its commitments.
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Certain line items in the Statement of profit and loss and other comprehensive income has been reclassified to ensure
consistency in the treatment of costs with 2016. During 2016 the Group has recognised operating expenses as either cost
of sales, operational expenses, research and development expenses, corporate and administrative expenses and other
expenses (2015 cost of sales, operational expenses, research and development expenses, marketing expenses,
corporate and administrative expenses and other expenses). This change reflects the basis on which the expenses of the
Group are now being recorded.
(b) Basis of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Quickstep Holdings
Limited (“Company” or “parent entity”) as at 30 June 2016 and the results of all subsidiaries for the year then ended.
Quickstep Holdings Limited and its subsidiaries together are referred to in the financial statements as the consolidated
entity or the Group.
A subsidiary is any entity controlled by the Company. The Group controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the ability to affect those returns through its power over the
entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group, and de-consolidated
from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted
by the Group.
(c) Segment reporting
Determination and presentation of operating segments
An operating segment is a component of the Group that engages in business activities from which it may earn revenues
and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other
components. All operating segments’ operating results are regularly reviewed by the Group’s CEO to make decisions
about resources to be allocated to the segment and assess its performance, and for which discrete financial information is
Segment results that are reported to the CEO include items directly attributable to a segment as well as those that can be
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, and
available.
allocated on a reasonable basis.
intangible assets other than goodwill.
(d) Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary
economic environment in which the entity operates, (the functional currency). The consolidated financial statements are
presented in Australian dollars, which is Quickstep Holdings Limited functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation of monetary assets and liabilities denominated in foreign currencies at year and exchange rates are generally
recognised in profit and loss. Non-monetary assets and liabilities that are measured in terms of historical cost in a
foreign currency are translated using the exchange rate at the date of the transaction.
Foreign currency translation
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are
translated to Australian dollars at exchange rates at the reporting date. The income and expenses of foreign operations,
excluding foreign operations in hyperinflationary economies, are translated to Australian dollars at exchange rates at the
dates of the transactions. Foreign currency differences are recognised in other comprehensive income, and presented in
the foreign currency translation reserve in equity. When a foreign operation is disposed of, in part or in full, the relevant
amount in the foreign currency translation reserve is transferred to the statement of comprehensive income.
Foreign exchange gains and losses arising from a monetary item receivable from or payable to a foreign operation, the
settlement of which is neither planned nor likely in the foreseeable future, are considered to form part of a net investment
in a foreign operation and are recognised directly in equity in the foreign currency translation reserve.
(cid:9)(cid:6)
(cid:9)(cid:7)
Notes to the consolidated financial statements
30 June 2016
19. Significant accounting policies (continued)
(a) Reclassification of comparative information
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
Certain line items in the Statement of profit and loss and other comprehensive income has been reclassified to ensure
consistency in the treatment of costs with 2016. During 2016 the Group has recognised operating expenses as either cost
of sales, operational expenses, research and development expenses, corporate and administrative expenses and other
expenses (2015 cost of sales, operational expenses, research and development expenses, marketing expenses,
corporate and administrative expenses and other expenses). This change reflects the basis on which the expenses of the
Group are now being recorded.
(b) Basis of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Quickstep Holdings
Limited (“Company” or “parent entity”) as at 30 June 2016 and the results of all subsidiaries for the year then ended.
Quickstep Holdings Limited and its subsidiaries together are referred to in the financial statements as the consolidated
entity or the Group.
A subsidiary is any entity controlled by the Company. The Group controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the ability to affect those returns through its power over the
entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group, and de-consolidated
from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted
by the Group.
(c) Segment reporting
Determination and presentation of operating segments
An operating segment is a component of the Group that engages in business activities from which it may earn revenues
and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other
components. All operating segments’ operating results are regularly reviewed by the Group’s CEO to make decisions
about resources to be allocated to the segment and assess its performance, and for which discrete financial information is
available.
Segment results that are reported to the CEO include items directly attributable to a segment as well as those that can be
allocated on a reasonable basis.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, and
intangible assets other than goodwill.
(d) Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary
economic environment in which the entity operates, (the functional currency). The consolidated financial statements are
presented in Australian dollars, which is Quickstep Holdings Limited functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation of monetary assets and liabilities denominated in foreign currencies at year and exchange rates are generally
recognised in profit and loss. Non-monetary assets and liabilities that are measured in terms of historical cost in a
foreign currency are translated using the exchange rate at the date of the transaction.
Foreign currency translation
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are
translated to Australian dollars at exchange rates at the reporting date. The income and expenses of foreign operations,
excluding foreign operations in hyperinflationary economies, are translated to Australian dollars at exchange rates at the
dates of the transactions. Foreign currency differences are recognised in other comprehensive income, and presented in
the foreign currency translation reserve in equity. When a foreign operation is disposed of, in part or in full, the relevant
amount in the foreign currency translation reserve is transferred to the statement of comprehensive income.
Foreign exchange gains and losses arising from a monetary item receivable from or payable to a foreign operation, the
settlement of which is neither planned nor likely in the foreseeable future, are considered to form part of a net investment
in a foreign operation and are recognised directly in equity in the foreign currency translation reserve.
(cid:9)(cid:7)
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Notes to the consolidated financial statements
30 June 2016
19. Significant accounting policies (continued)
(e) Revenue recognition
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
Notes to the consolidated financial statements
Quickstep Holdings Limited
30 June 2016
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are
net of returns, trade allowances, rebates.
Revenue from sale of goods is recognised in the profit and loss when persuasive evidence exists, usually in the form of an
executed sales agreement, that the significant risks and rewards of ownership have been transferred to the buyer,
recovery of consideration is probable, the associated costs and possible return of the goods can be estimated reliably,
there is no continuing management involvement with the goods, and the amount of revenue can be measured reliably.
Revenue from the rendering of a service is recognised in the income statement in proportion to the stage of completion of
the transaction at balance sheet date. The stage of completion is assessed by reference to analysis of work performed.
To the extent to which amounts are received in advance of the provision of the related services, the amounts are recorded
as unearned income and credited to the statement of comprehensive income as earned.
Licence fee revenue is recognised on an accruals basis when the Group has the right to receive payment under the
relevant agreement and has performed its obligations.
Construction contracts
Construction contract revenue recognised results from the construction of Quickstep process machines. These machines
have been constructed based on specifically negotiated contracts with customers.
Contract revenue includes the initial amount agreed in the contract plus any variations in contract work, claims and
incentive payments, to the extent that it is probable that they will result in revenue and can be measured reliably.
If the outcome of a construction contract can be estimated reliably, then contract revenue is recognised in profit or loss in
proportion to the stage of completion of the contract. The stage of completion is assessed with reference to manufacturing
schedules. Otherwise, contract revenue is recognised to the extent of contract costs incurred that are likely to be
recoverable.
Contract expenses are collected and held in Inventory WIP when incurred they are recognised, when the contract revenue
is released in the statement of profit or loss as cost of sales.
(f) Government grants
Grants from the government that compensate the Group for expenses incurred are recognised initially as deferred income
where there is a reasonable assurance that the grant will be received and all grant conditions will be met and are
recognised in profit or loss as other income on a systematic basis in the same periods in which the expenses are
recognised. Grants that compensate the Group for the cost of an asset are recognised as a deduction in arriving at the
carrying value of the asset.
(g) Income tax
Income tax expense comprises current and deferred tax. Current tax and deferred tax is recognised in profit and loss
except to the extent that it related to a business combination, or items recognised directly in equity or in other
comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or
substantially enacted at reporting date, and any adjustment to tax payable in respect of previous years. Current tax
payable also included any tax liability arising from the declaration of dividends.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax
liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted
for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the
time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax
rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to
apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against
which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related
tax benefit will be realised.
Quickstep Holdings Limited and its subsidiaries have unused tax losses. However, no deferred tax balances have been
recognised, as it is considered that asset recognition criteria have not been met at this time.
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19. Significant accounting policies (continued)
(h) Leases
over the term of the lease.
Payments made under operating leases are recognised in the statement of comprehensive income on a straight-line basis
Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of
the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant
periodic rate of interest on the remaining balance of the liability.
Determining whether an arrangement contains a lease
At inception of an arrangement, the Group determines whether such an arrangement is or contains a lease. A specific
asset is the subject of a lease if fulfilment of the arrangement is dependent on the use of that specified asset. An
arrangement conveys the right to use the asset if the arrangement conveys to the Group the right to control the use of the
underlying asset
Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance
leases. Upon initial recognition the leased asset is measured at an amount equal to the lower of its fair value and the
present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance
with the accounting policy applicable to that asset.
Other leases are operating leases and the leased assets are not recognised on the Group’s statement of financial
position.
(i) Impairment of assets
Non-derivative financial assets
A financial asset not carried at fair value through profit and loss is assessed at each reporting date to determine whether
there is any objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss
event has occurred after the initial recognition of the asset, and that the loss event has a negative effect on the estimated
future cash flows of that asset that can be measured reliably.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its
carrying amount and the present value of the estimated future cash flows discounted at the original effective interest rate.
Significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed
collectively in Groups that share similar credit risk characteristics.
All impairment losses are recognised in profit or loss.
An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss
was recognised. For financial assets measured at amortised cost, the reversal is recognised in profit or loss.
Non-financial assets
The carrying amounts of the Group’s assets are reviewed at each reporting date to determine whether there is any
indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. For goodwill and
intangible assets that have indefinite useful lives or are not yet available for use, the recoverable amount (the value in use
of the asset in the cash generating unit (CGU) to which it relates) is estimated each year at the same time. An impairment
loss is recognised if the carrying amount of an asset exceeds its estimated recoverable amount.
Impairment losses are recognised in the statement of comprehensive income unless the asset has previously been
revalued, in which case the impairment loss is recognised as a reversal to the extent of that previous revaluation with any
excess recognised through the statement of comprehensive income.
Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any
goodwill allocated to the cash-generating unit (group of units) and then, to reduce the carrying amount of the other assets
in the unit (group of units) on a pro rata basis.
An impairment write down to goodwill may not be reversed in future years. In respect of other assets, impairment losses
recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no
longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the
recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been
recognised.
(cid:9)(cid:8)
(cid:9)(cid:9)
Notes to the consolidated financial statements
30 June 2016
19. Significant accounting policies (continued)
(h) Leases
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
Payments made under operating leases are recognised in the statement of comprehensive income on a straight-line basis
over the term of the lease.
Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of
the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant
periodic rate of interest on the remaining balance of the liability.
Determining whether an arrangement contains a lease
At inception of an arrangement, the Group determines whether such an arrangement is or contains a lease. A specific
asset is the subject of a lease if fulfilment of the arrangement is dependent on the use of that specified asset. An
arrangement conveys the right to use the asset if the arrangement conveys to the Group the right to control the use of the
underlying asset
Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance
leases. Upon initial recognition the leased asset is measured at an amount equal to the lower of its fair value and the
present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance
with the accounting policy applicable to that asset.
Other leases are operating leases and the leased assets are not recognised on the Group’s statement of financial
position.
(i) Impairment of assets
Non-derivative financial assets
A financial asset not carried at fair value through profit and loss is assessed at each reporting date to determine whether
there is any objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss
event has occurred after the initial recognition of the asset, and that the loss event has a negative effect on the estimated
future cash flows of that asset that can be measured reliably.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its
carrying amount and the present value of the estimated future cash flows discounted at the original effective interest rate.
Significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed
collectively in Groups that share similar credit risk characteristics.
All impairment losses are recognised in profit or loss.
An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss
was recognised. For financial assets measured at amortised cost, the reversal is recognised in profit or loss.
Non-financial assets
The carrying amounts of the Group’s assets are reviewed at each reporting date to determine whether there is any
indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. For goodwill and
intangible assets that have indefinite useful lives or are not yet available for use, the recoverable amount (the value in use
of the asset in the cash generating unit (CGU) to which it relates) is estimated each year at the same time. An impairment
loss is recognised if the carrying amount of an asset exceeds its estimated recoverable amount.
Impairment losses are recognised in the statement of comprehensive income unless the asset has previously been
revalued, in which case the impairment loss is recognised as a reversal to the extent of that previous revaluation with any
excess recognised through the statement of comprehensive income.
Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any
goodwill allocated to the cash-generating unit (group of units) and then, to reduce the carrying amount of the other assets
in the unit (group of units) on a pro rata basis.
An impairment write down to goodwill may not be reversed in future years. In respect of other assets, impairment losses
recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no
longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the
recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been
recognised.
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(cid:9)(cid:9)
Notes to the consolidated financial statements
30 June 2016
19. Significant accounting policies (continued)
(j) Inventories
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
Notes to the consolidated financial statements
Quickstep Holdings Limited
30 June 2016
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first in first
out principle, and includes expenditure incurred in acquiring the inventories, production or conversion costs and other
costs incurred in bringing them to their existing location and condition. In the case of manufactured inventories and work in
progress, cost includes an appropriate share of production overheads based on normal operating capacity. Net realisable
value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling
expenses
(k) Property, plant and equipment
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment
losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed
assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a
working condition for their intended use, the costs of dismantling the items and restoring the site on which they are located
and capitalised borrowing costs.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate
items (major components) of property, plant and equipment. The gain or loss on disposal of an item of property, plant and
equipment is determined by comparing the proceeds from disposal with the carrying amount of property, plant and
equipment and is recognised net within other income/other expense in profit or loss.
Government grants that compensate the Group for the cost of an asset are recognised as a deduction in arriving at the
carrying value of the asset.
Depreciation
Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are
assessed and if a component has a useful life that is different from the remainder of the asset, that component is
depreciated separately. Depreciation is recognised in profit and loss on a reducing balance basis over the estimated
useful lives of each component of an item of property plant and equipment. The depreciation rates used for each class of
depreciable asset for the current and prior years are:
Class of depreciable asset
Plant and factory equipment
Office equipment
Depreciation rate
6.67% to 37.50%
6.67% to 50.00%
(l) Intangible assets
Other intangible assets that are acquired by the Group and have finite useful lives are measured at cost less accumulated
amortisation and accumulated impairment losses
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19. Significant accounting policies (continued)
(m) Employee benefits
Wages, salaries, annual leave and non-monetary benefits
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12
months after the end of the period in which the employees render the related service are recognised in respect of
employee's services up to the end of the reporting period and are measured at the amounts expected to be paid when the
liabilities are settled. The liability for annual leave and accumulating sick leave is recognised in the provision for employee
benefits. All other short-term employee benefit obligations are presented as payables.
The liabilities for long service leave are not expected to be settled wholly within 12 months after the end of the period in
which the employees render the related service. They are therefore recognised in the provision for employee benefits and
measured as the present value of expected future payments to be made in respect of services provided by employees up
to the end of the reporting period using the projected unit credit method. Consideration is given to expected future wage
and salary levels, experience of employee departures and periods of service. Expected future payments are discounted
using market yields at the end of the reporting period of government bonds with terms and currencies that match, as
closely as possible, the estimated future cash outflows. Remeasurements as a result of experience adjustments and
changes in actuarial assumptions are recognised in profit or loss.
Share-based payment transactions
An expense is recognised for all equity-based remuneration and other transactions, including shares, rights and options
issued to employees and directors. The fair value of equity instruments granted is recognised, together with a
corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled, ending
on the date on which the relevant employees become fully entitled to the award (‘vesting date’). The amount recognised is
adjusted to reflect the actual number of shares and options that vest, except for those that fail to vest due to market
conditions not being met. The fair value of equity instruments granted is measured using a generally accepted valuation
model, taking into account the terms and conditions upon which the equity instruments were granted. The fair value of
shares, options and rights granted is measured based on relevant market prices at the grant date.
(n) Contributed equity
Ordinary shares
Dividends
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share
options are recognised as a deduction from equity, net of any tax effects.
Dividends are recognised as a liability in the period in which they are declared.
(o) Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing-
during the year and excluding treasury shares.
Diluted earnings per share
the profit attributable to owners of the Company, excluding any costs of servicing equity other than ordinary shares by the
weighted average of ordinary shares outstanding during the financial year adjusted for bonus elements in ordinary shares
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive ordinary shares and the weighted
average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive
potential ordinary shares. Currently there are no potential ordinary shares on issue that are considered to be dilutive.
(cid:9)(cid:10)
(cid:9)(cid:11)
Notes to the consolidated financial statements
30 June 2016
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
19. Significant accounting policies (continued)
(m) Employee benefits
Wages, salaries, annual leave and non-monetary benefits
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12
months after the end of the period in which the employees render the related service are recognised in respect of
employee's services up to the end of the reporting period and are measured at the amounts expected to be paid when the
liabilities are settled. The liability for annual leave and accumulating sick leave is recognised in the provision for employee
benefits. All other short-term employee benefit obligations are presented as payables.
The liabilities for long service leave are not expected to be settled wholly within 12 months after the end of the period in
which the employees render the related service. They are therefore recognised in the provision for employee benefits and
measured as the present value of expected future payments to be made in respect of services provided by employees up
to the end of the reporting period using the projected unit credit method. Consideration is given to expected future wage
and salary levels, experience of employee departures and periods of service. Expected future payments are discounted
using market yields at the end of the reporting period of government bonds with terms and currencies that match, as
closely as possible, the estimated future cash outflows. Remeasurements as a result of experience adjustments and
changes in actuarial assumptions are recognised in profit or loss.
Share-based payment transactions
An expense is recognised for all equity-based remuneration and other transactions, including shares, rights and options
issued to employees and directors. The fair value of equity instruments granted is recognised, together with a
corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled, ending
on the date on which the relevant employees become fully entitled to the award (‘vesting date’). The amount recognised is
adjusted to reflect the actual number of shares and options that vest, except for those that fail to vest due to market
conditions not being met. The fair value of equity instruments granted is measured using a generally accepted valuation
model, taking into account the terms and conditions upon which the equity instruments were granted. The fair value of
shares, options and rights granted is measured based on relevant market prices at the grant date.
(n) Contributed equity
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share
options are recognised as a deduction from equity, net of any tax effects.
Dividends
Dividends are recognised as a liability in the period in which they are declared.
(o) Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing-
the profit attributable to owners of the Company, excluding any costs of servicing equity other than ordinary shares by the
weighted average of ordinary shares outstanding during the financial year adjusted for bonus elements in ordinary shares
during the year and excluding treasury shares.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive ordinary shares and the weighted
average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive
potential ordinary shares. Currently there are no potential ordinary shares on issue that are considered to be dilutive.
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(cid:9)(cid:11)
Notes to the consolidated financial statements
30 June 2016
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
Notes to the consolidated financial statements
Quickstep Holdings Limited
30 June 2016
19. Significant accounting policies (continued)
19. Significant accounting policies (continued)
(p) Goods and Services Tax (GST)
(s) Amortisation
Amortisation is based on the cost of an asset less its residual value. Amortisation is recognised in profit and loss
on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that
they are available for use. The estimated useful lives in the current and comparative periods are as follows:
Licences patents and rights to technology
Royalty buy-back
Capitalised development costs
Software
(t) Finance income and finance costs
10 years
10 years
5 – 10 years
2 ½ years
Finance income comprises interest income on funds invested (including available-for-sale financial assets), dividend
income, gains on the disposal of available-for-sale financial assets and fair value gains on financial assets at fair value
through profit and loss. Interest income is recognised as it accrues in profit and loss, using the effective interest method.
Finance costs comprise interest expense on borrowings calculated using the effective interest method, dividend income,
transaction costs, unwinding discounting of provisions and foreign exchange gains and losses. The interest expense
component of finance lease payments is recognised in the profit and loss using the effective interest method.
(u) New accounting standards and interpretations not yet adopted
The Group has adopted all new and amended Australian Accounting Standards and Australian Accounting Standards
Board (AASB) interpretations that are mandatory for the current reporting period and relevant to the Group.
Adoption of these standards and interpretations has not resulted in any material changes to the Group’s financial
statements.
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part
of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the taxation authority is included with other receivables or payables in the consolidated
balance sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.
(q) Financial instruments
Non-derivative financial assets
The Group initially recognises loans and receivables and deposits on the date that they are originated. All other financial
assets (including assets designated at fair value through profit or loss) are recognised initially on the trade date at which
the Group becomes a party to the contractual provisions of the instrument.
The Group de-recognises a financial asset when the contractual rights to the cash flows from the asset expire, or it
transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the
risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is
created or retained by the Group is recognised as a separate asset of liability.
Non-derivative financial liabilities
All financial liabilities (including liabilities designated at fair value through profit or loss) are recognised initially on the trade
date at which the Group becomes a party to the contractual provisions of the instrument. The Group derecognises a
financial liability when its contractual obligations are discharged or cancelled or expire. Financial assets and liabilities are
offset and the net amount presented in the statement of financial position when, and only when, the Group has a legal
right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability
simultaneously.
Compound financial instruments
The liability component of a compound financial instrument is recognised initially at the fair value of a similar liability that
does not have an equity conversion option. The equity component is recognised initially at the difference between the fair
value of the compound financial instrument as a whole and the fair value of the liability component. Any directly
attributable transaction costs are allocated to the liability and equity components in proportion to their initial carrying
amounts.
Subsequent to initial recognition, the liability component of a compound financial instrument is measured at amortised
cost using the effective interest method. The equity component of a compound financial instrument is not re-measured
subsequent to initial recognition.
Interest, dividends, losses and gains relating to the financial liability are recognised in profit or loss. Distributions to the
equity holders are recognised against equity, net of any tax benefit.
Derivative financial instruments
The Group holds a derivative financial instrument in the form of options issued in relation to borrowed funds.
Derivatives are recognised initially at fair value, any directly attributable transaction costs are recognised in profit and loss
as they are incurred. Subsequent to initial recognition, derivatives are measured at fair value and changes therein are
generally recognised in profit and loss.
(r) Research and development
Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and
understanding, is recognised in the statement of comprehensive income as an expense as incurred.
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(cid:9)(cid:12)
(cid:9)(cid:13)
Notes to the consolidated financial statements
30 June 2016
19. Significant accounting policies (continued)
(s) Amortisation
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
Amortisation is based on the cost of an asset less its residual value. Amortisation is recognised in profit and loss
on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that
they are available for use. The estimated useful lives in the current and comparative periods are as follows:
Licences patents and rights to technology
Royalty buy-back
Capitalised development costs
Software
10 years
10 years
5 – 10 years
2 ½ years
(t) Finance income and finance costs
Finance income comprises interest income on funds invested (including available-for-sale financial assets), dividend
income, gains on the disposal of available-for-sale financial assets and fair value gains on financial assets at fair value
through profit and loss. Interest income is recognised as it accrues in profit and loss, using the effective interest method.
Finance costs comprise interest expense on borrowings calculated using the effective interest method, dividend income,
transaction costs, unwinding discounting of provisions and foreign exchange gains and losses. The interest expense
component of finance lease payments is recognised in the profit and loss using the effective interest method.
(u) New accounting standards and interpretations not yet adopted
The Group has adopted all new and amended Australian Accounting Standards and Australian Accounting Standards
Board (AASB) interpretations that are mandatory for the current reporting period and relevant to the Group.
Adoption of these standards and interpretations has not resulted in any material changes to the Group’s financial
statements.
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(cid:9)(cid:13)
Notes to the consolidated financial statements
30 June 2016
Quickstep Holdings Limited
Notes to the consolidated financial statements
30 June 2016
20. Determination of fair values
A number of the Group’s accounting policies and disclosures require the determination of fair value, for both financial and
non-financial assets and liabilities. Where applicable, further information about the assumptions made in determining fair
values is disclosed in the notes specific to that asset or liability.
Trade and other receivables
The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the
market rate of interest at the reporting date. This fair value is determined for disclosure purposes.
Non-derivative financial liabilities
Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and
interest cash flows, discounted at the market rate of interest at the reporting date. In respect of the liability component of
convertible notes and loans, the market rate of interest is determined by reference to similar liabilities that do not have a
conversion option. For finance leases the market rate of interest is determined by reference to similar lease agreements.
Share based payment transactions
The fair value of the Employee Incentive Plan (EIP) is measured using Monte Carlo Simulation. The fair value of the share
rights is measured using the Black-Scholes formula. Measurement inputs include share price on measurement date, the
exercise price of the instrument, expected volatility (based on weighted average historic volatility adjusted for expected
changes expected due to publicly available information), expected term of the instruments (based on historical experience
and general option holder behavior), expected dividends, and the risk-free interest rate (based on government bonds). In
the case of the EIP, market performance conditions attaching to the grant are taken into account in the Monte Carlo
Simulation in determining fair value. Service and non-market performance conditions attached to the EIP transactions are
not taken into account in determining fair value.
Loans and borrowings
The fair value of the Newmarket options (Note 7(g)) is measured using the Binomial tree methodology. Measurement
inputs include share price on measurement date, the exercise price of the instrument, expected volatility (based on
weighted average historic volatility adjusted for expected changes due to publicly available information), remaining term of
the instruments to the date of expiry, expected dividends, and the risk-free interest rate (based on government bonds).
Derivatives
The fair value of forward exchange contracts is based on their quoted market price, if available. If a quoted market price is
not available, then fair value is estimated by discounting the difference between the contractual forward price and the
current forward price for the residual maturity for the contract using a risk-free interest rate.
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(cid:10)(cid:4)
Director’s Declaration
(cid:2)(cid:7)(cid:11)(cid:6)(cid:4)(cid:13)(cid:10)(cid:11)(cid:12)(cid:1)(cid:14)(cid:5)(cid:6)(cid:4)(cid:8)(cid:3)(cid:11)(cid:3)(cid:13)(cid:7)(cid:10)(cid:9)(cid:14)
(cid:31)(cid:64)(cid:78)(cid:72)(cid:52)(cid:46)(cid:78)(cid:28)(cid:54)(cid:69)(cid:46)(cid:44)(cid:72)(cid:65)(cid:69)(cid:71)(cid:1)(cid:78)(cid:65)(cid:67)(cid:55)(cid:64)(cid:55)(cid:65)(cid:64)(cid:23)(cid:78)
(cid:3)(cid:42)(cid:4)
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(cid:39)(cid:77)(cid:45)(cid:64)(cid:46)(cid:77)(cid:10)(cid:78) (cid:37)(cid:46)(cid:75)(cid:78)(cid:39)(cid:65)(cid:73)(cid:72)(cid:52)(cid:78)(cid:41)(cid:42)(cid:59)(cid:47)(cid:71)(cid:78)
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(cid:2)(cid:1)(cid:3)
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7
Independent auditor's report to the members
Independent auditor's report to the members of
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Quickstep Holdings Limited
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{The Auditor's report will be provided by your Auditor.}
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(cid:43)(cid:49)(cid:91)(cid:46)(cid:49)(cid:65)(cid:59)(cid:49)(cid:87)(cid:49)(cid:91)(cid:83)(cid:57)(cid:44)(cid:83)(cid:91)(cid:83)(cid:56)(cid:49)(cid:91)(cid:44)(cid:86)(cid:48)(cid:59)(cid:83)(cid:91)(cid:49)(cid:87)(cid:59)(cid:48)(cid:49)(cid:74)(cid:47)(cid:49)(cid:91)(cid:88)(cid:49)(cid:91)(cid:58)(cid:44)(cid:87)(cid:49)(cid:91)(cid:75)(cid:46)(cid:83)(cid:44)(cid:59)(cid:73)(cid:49)(cid:48)(cid:91)(cid:59)(cid:82)(cid:91)(cid:82)(cid:85)(cid:50)(cid:54)(cid:47)(cid:59)(cid:49)(cid:73)(cid:83)(cid:91)(cid:44)(cid:73)(cid:48)(cid:91)(cid:44)(cid:77)(cid:77)(cid:79)(cid:75)(cid:77)(cid:79)(cid:59)(cid:44)(cid:83)(cid:49)(cid:91)(cid:83)(cid:75)(cid:91)(cid:77)(cid:79)(cid:75)(cid:87)(cid:59)(cid:48)(cid:49)(cid:91)(cid:44)(cid:91)(cid:46)(cid:44)(cid:82)(cid:59)(cid:82)(cid:91)(cid:50)(cid:76)(cid:79)(cid:91)(cid:75)(cid:85)(cid:79)(cid:91)
(cid:44)(cid:86)(cid:48)(cid:59)(cid:83)(cid:91)(cid:75)(cid:77)(cid:59)(cid:73)(cid:60)(cid:75)(cid:73)(cid:13)(cid:91)
(cid:12)(cid:28)(cid:18)(cid:19)(cid:30)(cid:19)(cid:28)(cid:18)(cid:19)(cid:28)(cid:17)(cid:19)(cid:37)
(cid:34)(cid:74)(cid:91)(cid:47)(cid:75)(cid:73)(cid:48)(cid:86)(cid:47)(cid:83)(cid:59)(cid:74)(cid:55)(cid:91)(cid:75)(cid:86)(cid:79)(cid:91)(cid:44)(cid:85)(cid:48)(cid:59)(cid:83)(cid:7)(cid:91)(cid:88)(cid:49)(cid:91)(cid:56)(cid:44)(cid:87)(cid:49)(cid:91)(cid:47)(cid:75)(cid:71)(cid:77)(cid:66)(cid:59)(cid:49)(cid:48)(cid:91)(cid:88)(cid:59)(cid:83)(cid:57)(cid:91)(cid:83)(cid:58)(cid:49)(cid:91)(cid:59)(cid:73)(cid:48)(cid:49)(cid:77)(cid:49)(cid:73)(cid:48)(cid:49)(cid:73)(cid:47)(cid:49)(cid:91)(cid:79)(cid:49)(cid:78)(cid:86)(cid:59)(cid:79)(cid:49)(cid:70)(cid:49)(cid:73)(cid:83)(cid:82)(cid:91)(cid:75)(cid:50)(cid:91)(cid:83)(cid:57)(cid:49)(cid:91)(cid:9)(cid:29)(cid:31)(cid:30)(cid:29)(cid:31)(cid:15)(cid:34)(cid:22)(cid:29)(cid:28)(cid:32)(cid:37)(cid:8)(cid:17)(cid:34)(cid:37)
(cid:7)(cid:5)(cid:5)(cid:6)(cid:4)(cid:37)
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(cid:12)(cid:16)(cid:15)(cid:10)(cid:5)(cid:60)(cid:18)(cid:39)(cid:60)(cid:8)(cid:55)(cid:50)(cid:51)(cid:47)(cid:18)(cid:33)(cid:29)(cid:18)(cid:39)(cid:60)(cid:43)(cid:18)(cid:45)(cid:52)(cid:39)(cid:23)(cid:45)(cid:50)(cid:27)(cid:30)(cid:43)(cid:60)(cid:18)(cid:39)(cid:22)(cid:60)(cid:18)(cid:60)(cid:38)(cid:23)(cid:38)(cid:19)(cid:23)(cid:45)(cid:60)(cid:24)(cid:30)(cid:46)(cid:38)(cid:60)(cid:42)(cid:24)(cid:60)(cid:52)(cid:27)(cid:23)(cid:60)(cid:12)(cid:16)(cid:15)(cid:10)(cid:60)
(cid:39)(cid:23)(cid:51)(cid:58)(cid:42)(cid:45)(cid:32)(cid:60)(cid:42)(cid:25)(cid:60)(cid:29)(cid:40)(cid:22)(cid:23)(cid:43)(cid:23)(cid:40)(cid:22)(cid:23)(cid:39)(cid:51)(cid:60)(cid:38)(cid:23)(cid:38)(cid:19)(cid:23)(cid:47)(cid:60)(cid:24)(cid:30)(cid:45)(cid:38)(cid:50)(cid:60)(cid:18)(cid:25)(cid:25)(cid:30)(cid:34)(cid:30)(cid:18)(cid:51)(cid:23)(cid:22)(cid:60)(cid:58)(cid:29)(cid:53)(cid:27)(cid:60)(cid:12)(cid:16)(cid:15)(cid:10)(cid:60)
(cid:11)(cid:40)(cid:52)(cid:23)(cid:48)(cid:39)(cid:18)(cid:51)(cid:29)(cid:42)(cid:41)(cid:18)(cid:35)(cid:60) (cid:9)(cid:42)(cid:42)(cid:43)(cid:23)(cid:47)(cid:18)(cid:51)(cid:29)(cid:57)(cid:23)(cid:60) (cid:3)(cid:1)(cid:12)(cid:16)(cid:15)(cid:10)(cid:60) (cid:11)(cid:39)(cid:51)(cid:23)(cid:45)(cid:41)(cid:18)(cid:51)(cid:29)(cid:42)(cid:39)(cid:18)(cid:34)(cid:2)(cid:4)(cid:6)(cid:60) (cid:18)(cid:60)(cid:17)(cid:58)(cid:30)(cid:50)(cid:50)(cid:60)(cid:23)(cid:40)(cid:52)(cid:30)(cid:54)(cid:59)(cid:7)(cid:60)
(cid:14)(cid:29)(cid:18)(cid:20)(cid:29)(cid:36)(cid:30)(cid:51)(cid:59)(cid:60) (cid:37)(cid:30)(cid:38)(cid:30)(cid:51)(cid:23)(cid:22)(cid:60) (cid:19)(cid:59)(cid:60)(cid:18)(cid:60)(cid:50)(cid:21)(cid:28)(cid:23)(cid:38)(cid:23)(cid:60)(cid:18)(cid:44)(cid:43)(cid:48)(cid:42)(cid:57)(cid:23)(cid:22)(cid:60) (cid:56)(cid:40)(cid:22)(cid:23)(cid:48)(cid:60)
(cid:16)(cid:49)(cid:42)(cid:25)(cid:23)(cid:50)(cid:50)(cid:30)(cid:42)(cid:39)(cid:60) (cid:17)(cid:52)(cid:18)(cid:39)(cid:22)(cid:18)(cid:48)(cid:22)(cid:50)(cid:60)(cid:13)(cid:23)(cid:26)(cid:31)(cid:50)(cid:37)(cid:18)(cid:51)(cid:29)(cid:42)(cid:39)(cid:7)(cid:60)
(cid:2)(cid:1)(cid:3)
(cid:10)(cid:8)
Remuneration report – audited
(cid:5)(cid:20)(cid:11)(cid:12)(cid:22)(cid:12)(cid:20)(cid:11)(cid:12)(cid:20)(cid:26)(cid:28)(cid:8)(cid:27)(cid:11)(cid:16)(cid:26)(cid:21)(cid:24)(cid:1)(cid:25)(cid:28)(cid:24)(cid:12)(cid:23)(cid:21)(cid:24)(cid:26)(cid:28)(cid:26)(cid:21)(cid:28)(cid:26)(cid:15)(cid:12)(cid:28)(cid:19)(cid:12)(cid:19)(cid:9)(cid:12)(cid:24)(cid:25)(cid:28)(cid:21)(cid:13)(cid:28)(cid:7)(cid:27)(cid:16)(cid:10)(cid:17)(cid:25)(cid:26)(cid:12)(cid:23)(cid:28)(cid:4)(cid:21)(cid:18)(cid:11)(cid:16)(cid:20)(cid:14)(cid:25)(cid:28)(cid:6)(cid:16)(cid:19)(cid:16)(cid:26)(cid:12)(cid:11)(cid:28)
(cid:2)(cid:10)(cid:21)(cid:20)(cid:26)(cid:16)(cid:20)(cid:27)(cid:12)(cid:11)(cid:3)(cid:28)
(cid:8)(cid:21)(cid:12)(cid:13)(cid:20)(cid:15)(cid:17)(cid:1)(cid:19)(cid:22)(cid:15)(cid:16)(cid:13)(cid:14)(cid:13)(cid:15)(cid:14)(cid:22)
(cid:26)(cid:58)(cid:72)(cid:59)(cid:67)(cid:61)(cid:72)(cid:59)(cid:60)(cid:51)(cid:58)(cid:51)(cid:59)(cid:58)(cid:18)(cid:72)
(cid:2)(cid:37)(cid:3) (cid:65)(cid:49)(cid:43)(cid:72)(cid:46)(cid:58)(cid:37)(cid:58)(cid:40)(cid:51)(cid:37)(cid:53)(cid:72)(cid:61)(cid:43)(cid:60)(cid:59)(cid:62)(cid:65)(cid:72)(cid:59)(cid:44)(cid:72)(cid:65)(cid:49)(cid:43)(cid:72)(cid:24)(cid:61)(cid:59)(cid:67)(cid:60)(cid:72) (cid:51)(cid:64)(cid:72)(cid:50)(cid:58)(cid:72)(cid:37)(cid:40)(cid:40)(cid:59)(cid:61)(cid:41)(cid:37)(cid:58)(cid:40)(cid:43)(cid:72)(cid:69)(cid:51)(cid:65)(cid:49)(cid:72)(cid:65)(cid:49)(cid:43)(cid:72) (cid:9)(cid:15)(cid:18)(cid:15)(cid:17)(cid:10)(cid:20)(cid:13)(cid:15)(cid:14)(cid:19)(cid:22)(cid:8)(cid:11)(cid:20)(cid:22)(cid:7)(cid:5)(cid:5)(cid:6)(cid:2)(cid:22)(cid:50)(cid:58)(cid:40)(cid:54)(cid:67)(cid:42)(cid:51)(cid:58)(cid:48)(cid:19)
(cid:2)(cid:51)(cid:3)
(cid:48)(cid:51)(cid:68)(cid:51)(cid:58)(cid:48)(cid:72)(cid:37)(cid:72)(cid:65)(cid:61)(cid:67)(cid:43)(cid:72)(cid:37)(cid:58)(cid:42)(cid:72)(cid:45)(cid:37)(cid:51)(cid:61)(cid:72)(cid:68)(cid:50)(cid:43)(cid:69)(cid:72)(cid:59)(cid:44)(cid:72)(cid:65)(cid:49)(cid:43)(cid:72)(cid:24)(cid:62)(cid:59)(cid:67)(cid:60)(cid:1)(cid:64)(cid:72)(cid:47)(cid:58)(cid:37)(cid:58)(cid:40)(cid:51)(cid:37)(cid:54)(cid:72)(cid:60)(cid:59)(cid:64)(cid:51)(cid:66)(cid:51)(cid:59)(cid:58)(cid:72)(cid:37)(cid:64)
(cid:37)(cid:66)(cid:72)(cid:14)(cid:10)(cid:72)(cid:28)(cid:67)(cid:58)(cid:43)(cid:72)(cid:13)(cid:10)(cid:11)(cid:16)(cid:72)(cid:37)(cid:58)(cid:41)(cid:72)(cid:59)(cid:44)(cid:72)(cid:51)(cid:65)(cid:64)(cid:72)(cid:60)(cid:43)(cid:63)(cid:59)(cid:62)(cid:57)(cid:37)(cid:58)(cid:40)(cid:43)(cid:72)(cid:44)(cid:59)(cid:61)(cid:72)(cid:66)(cid:49)(cid:43)(cid:72)(cid:71)(cid:43)(cid:37)(cid:61)(cid:72)(cid:43)(cid:58)(cid:41)(cid:43)(cid:42)(cid:72)(cid:59)(cid:58)(cid:72)(cid:65)(cid:49)(cid:37)(cid:65)(cid:72)(cid:41)(cid:37)(cid:65)(cid:43)(cid:20)(cid:72) (cid:37)(cid:58)(cid:41)
(cid:2)(cid:50)(cid:51)(cid:3)
(cid:40)(cid:59)(cid:57)(cid:60)(cid:54)(cid:71)(cid:51)(cid:58)(cid:48)(cid:72)(cid:69)(cid:51)(cid:66)(cid:49)(cid:72)(cid:21)(cid:67)(cid:64)(cid:66)(cid:61)(cid:37)(cid:53)(cid:51)(cid:37)(cid:58)(cid:72)(cid:21)(cid:40)(cid:40)(cid:59)(cid:67)(cid:58)(cid:65)(cid:50)(cid:58)(cid:48)(cid:72)(cid:34)(cid:65)(cid:37)(cid:58)(cid:41)(cid:37)(cid:61)(cid:41)(cid:64)(cid:72)(cid:37)(cid:58)(cid:41)(cid:72)(cid:65)(cid:49)(cid:43)(cid:72)(cid:22)(cid:59)(cid:61)(cid:60)(cid:59)(cid:61)(cid:37)(cid:65)(cid:50)(cid:59)(cid:58)(cid:64)(cid:72)(cid:33)(cid:43)(cid:48)(cid:67)(cid:53)(cid:37)(cid:65)(cid:51)(cid:59)(cid:58)(cid:64)(cid:72)(cid:13)(cid:10)(cid:10)(cid:12)(cid:7)
Substantial holders in the Company are set out below:
(cid:2)(cid:38)(cid:3) (cid:65)(cid:49)(cid:43)(cid:72)(cid:45)(cid:51)(cid:58)(cid:37)(cid:58)(cid:40)(cid:50)(cid:37)(cid:54)(cid:72)(cid:61)(cid:43)(cid:60)(cid:59)(cid:62)(cid:65)(cid:72)(cid:37)(cid:53)(cid:64)(cid:59)(cid:72)(cid:40)(cid:59)(cid:57)(cid:60)(cid:55)(cid:50)(cid:43)(cid:64)(cid:72)(cid:69)(cid:51)(cid:65)(cid:49)(cid:72)(cid:27)(cid:58)(cid:65)(cid:43)(cid:61)(cid:58)(cid:37)(cid:65)(cid:51)(cid:59)(cid:58)(cid:37)(cid:54)(cid:72)(cid:23)(cid:51)(cid:58)(cid:37)(cid:58)(cid:40)(cid:51)(cid:37)(cid:53)(cid:72)(cid:33)(cid:43)(cid:60)(cid:59)(cid:62)(cid:65)(cid:50)(cid:58)(cid:48)(cid:72)(cid:34)(cid:65)(cid:37)(cid:58)(cid:41)(cid:37)(cid:61)(cid:41)(cid:64)(cid:72)(cid:37)(cid:64)(cid:72)(cid:42)(cid:51)(cid:64)(cid:40)(cid:56)(cid:59)(cid:64)(cid:43)(cid:41)(cid:72)(cid:51)(cid:58)(cid:72)(cid:58)(cid:59)(cid:65)(cid:43)
(cid:11)(cid:17)(cid:8)
(cid:1)(cid:3)(cid:9)(cid:8)(cid:10)(cid:11)(cid:13)(cid:8)(cid:7)(cid:13)(cid:11)(cid:4)(cid:3)(cid:13)(cid:10)(cid:3)(cid:6)(cid:12)(cid:7)(cid:3)(cid:10)(cid:2)(cid:11)(cid:5)(cid:8)(cid:7)(cid:13)(cid:10)(cid:3)(cid:9)(cid:8)(cid:10)(cid:11)(cid:13)
(cid:36)(cid:43)(cid:72)(cid:49)(cid:37)(cid:68)(cid:43)(cid:72)(cid:37)(cid:67)(cid:42)(cid:51)(cid:65)(cid:43)(cid:42)(cid:72)(cid:66)(cid:49)(cid:43)(cid:72) (cid:33)(cid:43)(cid:57)(cid:67)(cid:58)(cid:43)(cid:61)(cid:37)(cid:66)(cid:50)(cid:59)(cid:58)(cid:72)(cid:33)(cid:43)(cid:60)(cid:59)(cid:62)(cid:65)(cid:72)(cid:51)(cid:58)(cid:40)(cid:54)(cid:67)(cid:41)(cid:43)(cid:42)(cid:72)(cid:51)(cid:58)(cid:72)(cid:60)(cid:37)(cid:48)(cid:43)(cid:64)(cid:72)(cid:13)(cid:15)(cid:72)(cid:65)(cid:59)(cid:72)(cid:14)(cid:15)(cid:72)(cid:59)(cid:44)(cid:72)(cid:66)(cid:49)(cid:43)(cid:72)(cid:41)(cid:50)(cid:61)(cid:43)(cid:40)(cid:65)(cid:59)(cid:62)(cid:64)(cid:1)(cid:72)(cid:61)(cid:43)(cid:60)(cid:59)(cid:62)(cid:66)(cid:72)(cid:44)(cid:59)(cid:61)(cid:72)(cid:65)(cid:49)(cid:43)(cid:72)(cid:71)(cid:43)(cid:37)(cid:62)(cid:72)
(cid:43)(cid:58)(cid:41)(cid:43)(cid:42)(cid:72)(cid:14)(cid:10)(cid:72)(cid:29)(cid:67)(cid:58)(cid:43)(cid:72)(cid:13)(cid:10)(cid:11)(cid:16)(cid:8)(cid:72)(cid:35)(cid:49)(cid:43)(cid:72)(cid:42)(cid:50)(cid:61)(cid:43)(cid:40)(cid:66)(cid:59)(cid:62)(cid:64)(cid:72)(cid:59)(cid:45)(cid:72)(cid:65)(cid:49)(cid:43)(cid:72)(cid:40)(cid:59)(cid:57)(cid:60)(cid:37)(cid:58)(cid:71)(cid:72)(cid:37)(cid:61)(cid:43)(cid:72)(cid:61)(cid:43)(cid:64)(cid:60)(cid:59)(cid:58)(cid:64)(cid:51)(cid:39)(cid:53)(cid:43)(cid:72)(cid:44)(cid:59)(cid:61)(cid:72)(cid:66)(cid:49)(cid:43)(cid:72)(cid:60)(cid:61)(cid:43)(cid:60)(cid:37)(cid:61)(cid:37)(cid:65)(cid:51)(cid:59)(cid:58)(cid:72)(cid:37)(cid:58)(cid:42)(cid:72)(cid:60)(cid:61)(cid:43)(cid:64)(cid:43)(cid:58)(cid:65)(cid:37)(cid:65)(cid:51)(cid:59)(cid:58)(cid:72)(cid:59)(cid:45)(cid:72)
(cid:65)(cid:49)(cid:43)(cid:72)(cid:61)(cid:43)(cid:57)(cid:67)(cid:58)(cid:43)(cid:62)(cid:37)(cid:65)(cid:50)(cid:59)(cid:58)(cid:72)(cid:61)(cid:43)(cid:60)(cid:59)(cid:62)(cid:65)(cid:72)(cid:51)(cid:58)(cid:72)(cid:37)(cid:40)(cid:40)(cid:59)(cid:61)(cid:42)(cid:37)(cid:58)(cid:40)(cid:43)(cid:72)(cid:69)(cid:51)(cid:66)(cid:49)(cid:72)(cid:34)(cid:43)(cid:40)(cid:65)(cid:50)(cid:59)(cid:58)(cid:72) (cid:14)(cid:10)(cid:10)(cid:21)(cid:72) (cid:59)(cid:44)(cid:72)(cid:65)(cid:49)(cid:43)(cid:72) (cid:9)(cid:15)(cid:17)(cid:16)(cid:15)(cid:17)(cid:10)(cid:20)(cid:13)(cid:15)(cid:14)(cid:19)(cid:22)(cid:8)(cid:11)(cid:20)(cid:22) (cid:7)(cid:5)(cid:5)(cid:6)(cid:3)(cid:22) (cid:31)(cid:67)(cid:61)(cid:72)(cid:61)(cid:43)(cid:64)(cid:60)(cid:59)(cid:58)(cid:64)(cid:51)(cid:39)(cid:50)(cid:53)(cid:51)(cid:65)(cid:71)(cid:72)(cid:50)(cid:64)(cid:72)
(cid:65)(cid:59)(cid:72)(cid:43)(cid:70)(cid:60)(cid:61)(cid:43)(cid:64)(cid:64)(cid:72)(cid:37)(cid:58)(cid:72)(cid:59)(cid:60)(cid:50)(cid:58)(cid:51)(cid:59)(cid:58)(cid:72)(cid:59)(cid:58)(cid:72) (cid:65)(cid:49)(cid:43)(cid:72) (cid:62)(cid:43)(cid:57)(cid:67)(cid:58)(cid:43)(cid:61)(cid:37)(cid:66)(cid:50)(cid:59)(cid:58)(cid:72)(cid:61)(cid:43)(cid:60)(cid:59)(cid:61)(cid:66)(cid:4)(cid:72)(cid:39)(cid:37)(cid:64)(cid:43)(cid:42)(cid:72)(cid:59)(cid:58)(cid:72)(cid:59)(cid:67)(cid:61)(cid:72) (cid:37)(cid:67)(cid:41)(cid:51)(cid:66)(cid:72)(cid:40)(cid:59)(cid:58)(cid:41)(cid:67)(cid:40)(cid:65)(cid:43)(cid:42)(cid:72)(cid:51)(cid:58)(cid:72)(cid:37)(cid:40)(cid:40)(cid:59)(cid:61)(cid:41)(cid:37)(cid:58)(cid:40)(cid:43)(cid:72)(cid:69)(cid:51)(cid:66)(cid:49)(cid:72)
(cid:37)(cid:67)(cid:42)(cid:51)(cid:65)(cid:51)(cid:58)(cid:48)(cid:72)(cid:64)(cid:65)(cid:37)(cid:58)(cid:42)(cid:37)(cid:62)(cid:42)(cid:64)(cid:9)(cid:72)
(cid:8)(cid:21)(cid:12)(cid:13)(cid:20)(cid:15)(cid:17)(cid:1)(cid:19)(cid:22)(cid:15)(cid:16)(cid:13)(cid:14)(cid:13)(cid:15)(cid:14)(cid:22)
(cid:26)(cid:58)(cid:72)(cid:59)(cid:67)(cid:61)(cid:72)(cid:59)(cid:60)(cid:51)(cid:58)(cid:50)(cid:59)(cid:58)(cid:5)(cid:72) (cid:66)(cid:49)(cid:43)(cid:72) (cid:61)(cid:43)(cid:57)(cid:67)(cid:58)(cid:43)(cid:61)(cid:37)(cid:65)(cid:51)(cid:59)(cid:58)(cid:72)(cid:61)(cid:43)(cid:60)(cid:59)(cid:62)(cid:65)(cid:72)(cid:59)(cid:44)(cid:72)(cid:32)(cid:67)(cid:51)(cid:40)(cid:52)(cid:64)(cid:66)(cid:43)(cid:60)(cid:72)(cid:25)(cid:59)(cid:54)(cid:41)(cid:51)(cid:58)(cid:48)(cid:64)(cid:72)(cid:30)(cid:51)(cid:57)(cid:51)(cid:65)(cid:43)(cid:41)(cid:72)(cid:44)(cid:59)(cid:61)(cid:72)(cid:66)(cid:49)(cid:43)(cid:72)(cid:71)(cid:43)(cid:37)(cid:61)(cid:72)(cid:43)(cid:58)(cid:41)(cid:43)(cid:41)(cid:72)(cid:14)(cid:10)(cid:72)(cid:29)(cid:67)(cid:58)(cid:43)(cid:72)(cid:13)(cid:10)(cid:12)(cid:16)(cid:6)(cid:72)
(cid:40)(cid:59)(cid:57)(cid:60)(cid:54)(cid:51)(cid:43)(cid:64)(cid:72)(cid:69)(cid:51)(cid:66)(cid:49)(cid:72)(cid:34)(cid:43)(cid:40)(cid:65)(cid:51)(cid:59)(cid:58)(cid:72)(cid:14)(cid:10)(cid:10)(cid:21)(cid:72)(cid:59)(cid:45)(cid:72)(cid:65)(cid:49)(cid:43)(cid:72)(cid:9)(cid:15)(cid:17)(cid:16)(cid:15)(cid:17)(cid:10)(cid:20)(cid:13)(cid:15)(cid:14)(cid:19)(cid:22)(cid:8)(cid:11)(cid:20)(cid:22)(cid:7)(cid:5)(cid:5)(cid:6)(cid:4)(cid:22)
(cid:7)(cid:9)(cid:8)(cid:6)(cid:23)
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(cid:5)(cid:11)(cid:16)(cid:14)(cid:20)(cid:18)(cid:17)(cid:23)(cid:10)(cid:15)(cid:11)(cid:19)(cid:19)(cid:23)
(cid:1)(cid:2)(cid:5)(cid:6)(cid:4)(cid:3)(cid:5)(cid:7)
(cid:10)(cid:22)(cid:13)(cid:17)(cid:14)(cid:22)(cid:23)
(cid:3)(cid:3)(cid:23)(cid:10)(cid:14)(cid:19)(cid:21)(cid:14)(cid:16)(cid:12)(cid:14)(cid:20)(cid:23)(cid:3)(cid:1)(cid:2)(cid:4)(cid:23)
Quickstep Holdings Limited
Shareholder information
30 June 2016
The shareholder information set out below was applicable as at 31 August 2016.
A.
Voting rights
The voting rights attaching to each class of equity securities are set out below:
(a) On a show of hands every member present in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
(b) Options do not carry any voting rights.
B.
Substantial holders
C.
On Market buy back
There is no current on-market buy back.
D.
Distribution schedules
Distribution of each class of security as at 31 August 2016:
Ordinary fully paid shares
Range
Holders
Units
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - Over
Total
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - Over
Total
424
1,039
954
3,141
791
6,349
-
-
-
-
1
1
109,052
3,465,030
7,736,249
118,479,617
432,684,195
562,474,143
-
-
-
-
%
0.02
0.62
1.38
21.06
76.93
%
-
-
-
-
25,000,000
25,000,000
100.00
100.00
Options exercisable at the lesser of $0.25 or 25% above the issue price of any equity capital raising up to $10M
undertaken prior to 31 December 2018 (unlisted).
Holders
Units
Holdings less than a marketable parcel of ordinary shares (being 4,545 shares at $0.11 per share):
D.
Unmarketable parcels
Holders
1,243
Units
2,394,919
(cid:2)(cid:1)(cid:3)
(cid:10)(cid:9)
Shareholder Information
Quickstep Holdings Limited
Shareholder information
30 June 2016
The shareholder information set out below was applicable as at 31 August 2016.
A.
Voting rights
The voting rights attaching to each class of equity securities are set out below:
(a) On a show of hands every member present in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
(b) Options do not carry any voting rights.
B.
Substantial holders
Substantial holders in the Company are set out below:
C.
On Market buy back
There is no current on-market buy back.
D.
Distribution schedules
Distribution of each class of security as at 31 August 2016:
Ordinary fully paid shares
Range
Holders
Units
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - Over
Total
424
1,039
954
3,141
791
6,349
109,052
3,465,030
7,736,249
118,479,617
432,684,195
562,474,143
%
0.02
0.62
1.38
21.06
76.93
Options exercisable at the lesser of $0.25 or 25% above the issue price of any equity capital raising up to $10M
undertaken prior to 31 December 2018 (unlisted).
Range
Holders
Units
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - Over
Total
-
-
-
-
1
1
-
-
-
-
25,000,000
25,000,000
%
-
-
-
-
100.00
100.00
D.
Unmarketable parcels
Holdings less than a marketable parcel of ordinary shares (being 4,545 shares at $0.11 per share):
Holders
1,243
Units
2,394,919
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(cid:10)(cid:9)
Shareholder Information
E.
Top holders
Quickstep Holdings Limited
Shareholder information
30 June 2016
The 20 largest registered holders of each class of quoted security as at 31 August 2016 were:
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Holder Name
Washington H Soul Pattinson And Company Limited
Deakin University
Farjoy PL
Romsup PL
State One Stockbroking Pty Ltd
HSBC Custody Nominees (Australia) Limited
Decta Holdings Pty Ltd
Code Nom PL
WSF Pty Ltd
Aileendonan Investments PL
Yarraandoo Pty Ltd
J P Morgan Nom Aust Ltd
Best Holding Pty Ltd
Petia Super Pty Ltd
Anacacia PL
Sols Super Pty Ltd
Hobson Cove PL
Zimmer Manfred
Peeters Richard Cornelis
Philippe Odouard
Total
Securities
89,419,161
33,333,333
11,999,998
8,812,430
8,545,693
7,472,230
7,334,907
7,207,580
6,947,696
4,000,000
3,509,933
3,249,389
3,207,692
3,021,183
3,012,430
2,748,830
2,500,000
2,137,876
2,120,000
2,053,351
212,633,712
%
15.90
5.93
2.13
1.57
1.52
1.33
1.30
1.28
1.24
0.71
0.62
0.58
0.57
0.54
0.54
0.49
0.44
0.38
0.38
0.37
37.82
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Quickstep Holdings Limited
Corporate Directory
30 June 2016
Patent Attorney
Watermark
Building 1, Binary Centre
Level 3, 3 Richardson Place
North Ryde New South Wales 2113
Share registry
Security Transfer Australia Pty Limited
770 Canning Highway
Applecross Western Australia 6153
Australian Securities Exchange Limited
Stock Exchange
Exchange Centre
20 Bridge Street
Sydney New South Wales 2000
ASX Code
QHL
Directors
Mr. T H J Quick
Chairman
Mr. D J Marino
CEO and Managing Director
Mr. N I Ampherlaw
Non-Executive Director
Mr. P C Cook
Non-Executive Director
Mr. B A Griffiths
Non-Executive Director
Air Marshal E J McCormack (Ret’d)
Non-Executive Director
Mr. J C Douglas
Non-Executive Director
Secretary
Mr. J Pinto
Principal Office
361 Milperra Road
Bankstown Airport
New South Wales 2200
Australia
Telephone: +61 2 9774 0300
Internet: www.quickstep.com.au
Email: info@quickstep.com.au
Registered Office
Level 2
160 Pitt Street
Sydney New South Wales 2000
Auditor
KPMG
Tower 3
Chartered Accountants
300 Barangaroo Avenue
Sydney Australia 2000
Solicitors
Clifford Chance
Level 7
190 St Georges Terrace
Perth Western Australia 6000
(cid:10)(cid:10)
(cid:10)(cid:11)
Corporate Directory
Directors
Mr. T H J Quick
Chairman
Mr. D J Marino
CEO and Managing Director
Mr. N I Ampherlaw
Non-Executive Director
Mr. P C Cook
Non-Executive Director
Mr. B A Griffiths
Non-Executive Director
Air Marshal E J McCormack (Ret’d)
Non-Executive Director
Mr. J C Douglas
Non-Executive Director
Secretary
Mr. J Pinto
Principal Office
361 Milperra Road
Bankstown Airport
New South Wales 2200
Australia
Telephone: +61 2 9774 0300
Internet: www.quickstep.com.au
Email: info@quickstep.com.au
Registered Office
Level 2
160 Pitt Street
Sydney New South Wales 2000
Auditor
KPMG
Chartered Accountants
Tower 3
300 Barangaroo Avenue
Sydney Australia 2000
Solicitors
Clifford Chance
Level 7
190 St Georges Terrace
Perth Western Australia 6000
Quickstep Holdings Limited
Corporate Directory
30 June 2016
Patent Attorney
Watermark
Building 1, Binary Centre
Level 3, 3 Richardson Place
North Ryde New South Wales 2113
Share registry
Security Transfer Australia Pty Limited
770 Canning Highway
Applecross Western Australia 6153
Stock Exchange
Australian Securities Exchange Limited
Exchange Centre
20 Bridge Street
Sydney New South Wales 2000
ASX Code
QHL
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quickstep.com.au