CAN YOU PLEASE HELP ME SOLVE THE QUESTION REFERENCING THE ANNUAL REPORT OF BILLABOG 2015 AND 2016.

THANKS

FEDERATION BUSINESS SCHOOL BUACC1508 ACCOUNTING AND FINANCE ASSESSMENT TASK 2: GROUP ASSIGNMENT 1. GENERAL INFORMATION As per the Course Description, this assignment constitutes 30 per cent of the total assessment in this course and is due week ten of semester on Thursday at 10.00am. Submission will be hard copy format via the assignment drop-box. Only one copy of the assignment is to be submitted per group. 2. PURPOSE Course BUACC1508 is concerned primarily with the use of accounting information. The main purpose of this assignment is to provide students with the opportunity to apply the knowledge and skills acquired during the semester to a practical task involving the use of 'real-world' accounting information. In particular this will enable you to gain insights into and information about the business of Billabong Limited, a merchandiser of surfwear and other outdoor action clothing, using the published financial statements of the company as your primary data source. This is intended to consolidate students' accounting knowledge and skills. Students are required to complete the assignment in groups of three or four and this is intended to foster the development of the cooperative work skills that will be of importance in most employment contexts. 3. ASSESSMENT DETAILS AND REQUIREMENTS Students are to organise themselves into groups of three or four to complete the assignment and do not have automatic entitlement to adopt some other arrangement (such as completing the assignment individually or in a larger group). Students who have difficulty finding a partner or who encounter other difficulties (for example, their partner withdraws from the course) should consult the Course Coordinator. There is no requirement that your partner be from the same tutorial group as yourself. The basic requirement is to make a general analysis of the profitability, efficiency, liquidity, gearing (leverage), and investment performance of Billabong Limited using the information available in the company's 2015 annual report available available at Billaboing Annual Report 2016 and also available via Moodle. Students are to use the 'Consolidated' data in conducting their analysis. Note that the 2016 annual report contains comparative data for the year 2015. The assignment will contain two main elements: SCHEDULE(S) OF RELEVANT RATIOS AND OTHER USEFUL CALCULATIONS The schedule(s) of relevant ratios and other useful calculations should be incorporated in one or more appendices. Ratios and other calculations should be presented so as to facilitate comparison between 2016 and 2015 data. Students are advised to show the calculations used in determining particular ratios and other figures. A WRITTEN REPORT -2- The written report should: Explain briefly what is revealed by the ratios and other calculations in the context of the company's profitability, efficiency, liquidity, gearing (leverage) and investment performance. In particular, any important changes from 2015 to 2016 should be identified, discussed and, where possible, explained. Provide an overall assessment of the company from the perspective of existing and potential equity investors (shareholders). The assignment is to comply with the University's General Guide to Writing and Study Skills and General Guide to Referencing http://federation.edu.au/students/learning-and-study/online-help-with/study-skills-and-writing-guides and the written report is not to exceed 2,500 words (excluding the Executive Summaryand calculations which are to be incorporated in an appendix). Students are required to use the 'APA system' for the acknowledgment of sources. In order to help ensure that assignments meet required presentation standards, students are strongly advised to use the 'Presentation check-list' attached to these notes. Students may, if they wish, seek and use additional information about the company from sources other than the annual report (for example, from newspapers, business magazines etc.). However, it is not envisaged that students will be engaged in extensive research of this nature and it is expected that the annual report provided will be the primary resource relied upon in completing the assignment. Students are expected to obtain relevant share price data for the company so that investment ratios (such as a dividend yield ratio) can be calculated. (It is recommended that students obtain the company's share price as at 30 June 2015 and 30 June 2015 for the purpose of calculating relevant ratios on these dates. Share price data is available, among other sources, from newspapers archived in the library or on the ASX website). Under no circumstances are students to make direct personal contact with the company or its officers (for example by telephone, fax, letter or email) in an attempt to gather further information. 4. SUGGESTED REPORT FORMAT AND APPROACH SECTIONS IN REPORT: Complete assignment in appropriate report format. Suggested report structure and headings: I. TITLE PAGE Your title or cover page needs to convey the main information about your assignment. It must look professional and include: The Course Code and Name: The title of the assessment task: Name of the Course-Coordinator and of your tutor Trimester, year and date of submission II. TABLE OF CONTENTS The Table of Contents (TOC) provides the outline of your report to the marker/reader. It is the first indication that you have addressed key issues and carefully planned you work. Your TOC should look well laid out as if it is the TOC in a book. Use numbering for major and minor headings where appropriate and include page numbers. You can use an extra page to detail illustrations or tables if it is appropriate. III. EXECUTIVE SUMMARY -3- The Executive Summary should give an overview of your report to a busy executive who does not have time to read it in full. It should: convey the purpose of the report, give a summary of key themes, ideas or findings (subheadings may be used), provide abridged recommendations. The Executive Summary should not exceed 150 words. The words in the Executive Summary are not included as part of the final word count. IV. BACKGROUND: COMPANY OVERVIEW V. ANALYSIS The main body of the report should include a discussion of what is revealed by the ratios and other calculations in the context of the company's profitability, efficiency, liquidity, gearing (leverage) and investment performance. In particular, any important changes from 2015 to 2016 should be identified, discussed and, where possible, explained. The main areas of analysis are: Profitability Efficiency Liquidity Gearing (Leverage) Investment Ratios VI. CONCLUSIONS AND FINDINGS The Conclusion is your evaluation or summary of the major points and key findings as discussed in the Body of the report. The Conclusion should always be concise and must not contain any new information. It should not require a substantial number of words to draw information together and summarise what you have found. VII. RECOMMENDATIONS Your recommendations are the culmination of all your work and should deliver a well rounded and thoughtful ending to your research. The material in the body of your report provides the basis for your considerations. The conclusion provides a summary of your deliberation over your findings. The recommendations provide the reader with your considered opinions of what would be the best decision(s) to make, or course(s) of action to follow, based on your research and critical analysis. For this assignment your recommendations should be directed towards both the internal management/directors of the company and also existing and potential external equity investors. VIII. APPENDIXES The appendix must contain a one page summary in table format of the results of your ratio calculations. This summary of your ratio results should be followed by the actual ratio calculations and workings. Footnotes should also be used in your appendix to justify any values you have used in your calculations where there is some uncertainty if you have selected the correct figure (value) from the annual report to be used in the formulas. IX. REFERENCES This must contain full details all sources referred to or cited in the report, using the Federation University authordate (APA) style. ANALYSIS APPROACH In particular, any important changes from 2015 to 2016 should be identified, discussed and, where possible, explained. This may include amongst other aspects discussion and analysis of: Key results/trends from the ratio calculations -4- Implications of your findings on the various Possible reasons and explanations behind the company's fianacial performance and results Strategic implications for the company Strategies to improve the companies financial performance and results and also improve investor (shareholder/member) confidence 5. PRESENTATION AND REFERENCING PRESENTATION The 'Presentation check-list' (see attached appendix) indicates the requirements and expected standards concerning presentation. An assignment that complies with the guidelines highlighted in this check-list would normally be expected to achieve the required presentation standard (see assessment criteria below). If further guidance is required, students should in the first instance refer to the General Guide to Writing and Study Skills and General Guide to Referencing publications, available from the University bookshop at Mt Helen campus or online at: http://federation.edu.au/students/learning-and-study/online-help-with/study-skills-and-writing-guides REFERENCING The link to the library website for more information is : FedUni Library - Referencing If additional clarification is necessary, students should discuss the matter with the staff member responsible for conducting their tutorial. 6. ASSESSMENT CRITERIA In assessing submitted assignments consideration will be given to: Overall neatness, completeness and quality of presentation. Degree level students are expected to achieve a satisfactory standard with respect to this criterion as a matter of course and for this reason no credit will be granted for achieving it. However, assignments that fail to achieve the minimum standard in connection with this criterion will be penalised. The expected standard concerning this criterion is contained in the attached 'Presentation check-list'. Timeliness of submission. Degree level students are expected to be able to meet reasonable deadlines for the submission of assessable work as a matter of course. For this reason no credit will be given for submitting the assignment by the due date. Assessment tasks submitted after the due date, without prior approval/arrangement, will be penalised at 10% of the available marks per day. Requests for extension of time must be made with the lecturer concerned and based on Special Consideration guidelines https://federation.edu.au/current-students/essential-info/administration/special-consideration Demonstrated skill in identifying and calculating relevant ratios and other indicators of profitability, efficiency, liquidity, gearing (leverage), and investment performance. This criterion relates specifically to the requirement to prepare a schedule (or schedules) of relevant ratios and other calculations and carries a weighting of 12 marks out of the 30 available for the assignment. Demonstrated understanding of financial reports and ratios and other indicators of profitability, efficiency, liquidity, gearing (leverage), and investment performance. -5- This criterion relates specifically to the requirement to submit a written report and carries a weighting of 18 marks out of the 30 available for the whole assignment. Written reports in excess of 2,500 words will be penalised. A single copy (only) of the assignment should be submitted, for which the students who prepared it will usually receive the same mark. This is based on the expectation that each student will have contributed equally to the preparation of the assignment. Where this expectation has not been satisfied separate marks may be allocated. Selected students may be invited to discuss their assignment with the person responsible for marking it. This discussion will only be taken into account in marking assignments where it provides evidence that the integrity of students' work has been compromised. This may, for example, be evidenced by students being unable to explain the meaning of their assignment, being unable to explain why certain information has been included and so on. 7. PLAGIARISM Plagiarism is the presentation of the expressed thought or work of another person as though it is one's own without properly acknowledging that person. Students must not allow other students to copy their work and must take care to safeguard against this happening. In cases of copying, normally all students involved will be penalised equally; an exception will be if the student can demonstrate the work is their own and they took reasonable care to safeguard against copying. Plagiarism is a serious offence. Please refer to the following documents: Statute 6.1: Student Discipline Regulation 6.1: Student Discipline Regulation 6.1.1: Plagiarism APPENDIX: PRESENTATION CHECK-LIST As indicated above, the assignment for BUACC1508 is to be presented in accordance with the University's General Guide to Writing and Study Skills and General Guide to Referencing. To assist students in achieving the required standard the following check-list is provided. It is highly recommended that students read through the following items before they commence work on the assignment so that they have a general understanding of what is expected concerning presentation. An assignment that complies with the guidelines highlighted in this check-list would normally be expected to achieve the required presentation standard (see the assessment criteria above). Prior to submitting their assignments students should read carefully through the following statements and tick the 'Completed' box for each item only when they are satisfied that their assignment meets the specified presentation standard. Section references are to the University's General Guide for the Presentation of Academic Work (revised edition, 2014). All students should ensure that they have a copy of this document before commencing work on the assignment. Completed -6- 1. We have read the General Guide to Writing and Study Skills and General Guide to Referencing and understand why the proper presentation of academic work is important. 2. We have read and understood the section dealing with plagiarism. 3. We have read the section concerning 'Layout an appearance' and complied with its guidelines. Please note that '1.5' or 'double' spacing is required for the written sections of this assignment. 4. Our assignment has a title page that contains the information specified in the 'Title page or cover sheet' section (and includes the BUACC1508 tutorial group of each student). 5. Our assignment has an abstract (or synopsis or summary) prepared in accordance with the instructions contained in the 'Reports' section. Note: As per p.36, the abstract follows immediately after the title page and 'should summarise or prcis the content of the work'. Note that the abstract or synopsis should not simply be a restatement of the topic, nor a table of contents in prose form. 6. If our assignment contains a table of contents, it has been prepared in accordance with the General Guide to Writing and Study Skills. 7. If our assignment contains appendices, they have been prepared in accordance with the General Guide to Writing and Study Skills. 9. We have read the General Guide to Referencing and understand the importance of properly acknowledging the use of other writers' works. For this assignment the APA system is required to be used. 10. We have read the General Guide to Referencing which deals with the APA citation style, and used the APA system in our assignment. Note: In an assignment of this nature the need to acknowledge sources by 'author-date' references may be limited. This is on account of the technical knowledge and skills required to complete the assignment being taught as part of the course content. However, where students quote or use ideas from a particular source (for example, a newspaper article or a textbook) this should be acknowledged. Some judgement is needed in this matter. For example, if a current ratio is calculated there is no need to acknowledge the source of the formula used since the current ratio forms part of general accounting knowledge. However, if a particular author is quoted, or a particular author's ideas concerning, for example, an appropriate current ratio, are used, then an acknowledgment using an 'author-date' reference (see examples in the General Guide to Referencing) will be required. The proper acknowledgment of sources is very important in academic work and it is worth investing some time in learning to do it correctly, as the benefit will be enduring. -7- 11. Our assignment contains a reference list prepared in accordance with the General Guide to Referencing. 12. We have carefully proofread our assignment prior to submitting it. (Simply running the assignment through a spell-checker, while helpful, is not a substitute for a careful proofreading). When proofreading our assignment we endeavoured to identify and correct all spelling, punctuation, grammatical and other similar errors. 13. We understand that the staff member(s) responsible for taking our tutorials is(are) available to answer questions relating to the presentation of our assignment. If we were uncertain of how to achieve the proper presentation standard we asked a staff member for advice. Billabong International Limited Financial report ended 30 June 2015 Appendix 4E Preliminary final report Name of entity BILLABONG INTERNATIONAL LIMITED ABN 17 084 923 946 Financial year ended 30 JUNE 2015 Comparative Financial year ended 30 JUNE 2014 Results for announcement to the market Results $A'000 Revenues from continuing operations Up Profit from ordinary activities after tax attributable to members Up Net profit for the period attributable to members Up Dividends 2.8% to 1,056,130 n/a to 4,150 n/a to 4,150 Amount per security Franked amount per security Tax rate for franking Final dividend --- --- n/a Interim dividend --- --- n/a Final dividend --- --- n/a Interim dividend --- --- n/a Current period - 2015 Previous corresponding period - 2014 The Board has not declared a final ordinary dividend for the year ended 30 June 2015. The Dividend Reinvestment Plan (DRP) remains suspended. NTA backing 2015 2014 Net tangible asset backing per ordinary security $0.12 $0.14 Billabong International Limited Financial report ended 30 June 2015 Compliance statement This report is based on the consolidated financial report which has been audited. Refer to the attached full financial report for all other disclosures in respect of the Appendix 4E. Signed: ............................................................ Neil Fiske Chief Executive Officer Date: 27 August 2015 Billabong International Limited ABN 17 084 923 946 Contents Directors' report Page 2 Auditor's independence declaration 46 Corporate governance statement 47 Financial report 48 Directors' declaration 139 Independent auditor's report to the members 140 Shareholder information 142 : : FULL FINANCIAL REPORT 2014 - 15 Directors' report : : Your Directors present their report on the consolidated entity (referred to hereafter as the Group) consisting of Billabong International Limited (the Company) and the entities it controlled at the end of, or during, the year ended 30 June 2015. Directors The following persons were Directors of the Company during the whole of the financial year and up to the date of this report: I. Pollard N. Fiske G.S. Merchant H. Mowlem J. Mozingo S.A.M Pitkin M. Wilson A. Doshi (Alternate to J. Mozingo) T. Casarella (Alternate to M. Wilson) Principal activities During the year the principal continuing activities of the Group consisted of the wholesaling and retailing of surf, skate, snow and sports apparel, accessories and hardware, and the licensing of the Group trademarks to specified regions of the world. Dividends - Billabong International Limited No dividends were paid to members during the financial year. The Board has not declared a final ordinary dividend for the year ended 30 June 2015. The Dividend Reinvestment Plan (DRP) remains suspended. Billabong International Limited 2014-15 Full Financial Report Page 2 Directors' report : : Operating and Financial Review Group overview The Group's business is the wholesaling and retailing of surf, skate, snow and sports apparel, accessories and hardware currently comprising multiple brands and retail banners over three key reporting segments being Asia Pacific, Americas and Europe. The Group's brands at year-end included Billabong, Element, RVCA, Kustom, Palmers, Honolua, Xcel, Tigerlily, Sector 9 and Von Zipper. The Group operates 404 retail stores as at 30 June 2015 in regions/countries around the world including but not limited to: North America (60 stores), Europe (102 stores), Australia (123 stores), New Zealand (30 stores), Japan (46 stores) and South Africa (27 stores). Stores trade under a variety of banners including but not limited to: Billabong, Element, Surf Dive 'n' Ski (SDS), Jetty Surf, Rush, Amazon, Honolua, Two Seasons and Quiet Flight. The Group also operates online retail ecommerce for each of its key brands. Significant changes in the state of affairs The statement below should be read in conjunction with note 41 (events occurring after the balance sheet date) of the annual report for the year ended 30 June 2014 and any public announcements made by the Company during the financial year. On 5 September 2014 the Group sold its 51% stake in the multi-brand ecommerce business SurfStitch.com in Australia and Europe (\"SurfStitch\") and its 100% ownership of Swell.com in North America (\"Swell\"). Refer to note 10 of the financial statements for detailed disclosure in relation to these divestments. Other than matters dealt with in this report there were no significant changes in the state of affairs of the Group during the financial year. Group financial performance The Group results for the period and the prior corresponding period (\"pcp\") include certain significant items including but not limited to contingent consideration and fair value adjustment charges and costs associated with the various control/refinancing proposals and strategic reform programs announced during the years ended 30 June 2013 and 30 June 2014. Refer to note 8 of the financial statements for detailed disclosure in relation to these items. During the period the Group sold its 51% stake in the multi-brand ecommerce business SurfStitch and its 100% ownership of Swell. During the year ended 30 June 2014, the Company made the decision to write off the majority of its deferred tax assets (net of deferred tax liabilities) as it was estimated that it was not probable for taxable profits to be generated in a period where the conditions for utilisation of the assets would be met including continuity of ownership tests. During the year ended 30 June 2015, the Company maintains this same position in most tax jurisdictions with the exception of Australia and Japan where it has been estimated that previously unrecognised temporary differences will now meet the conditions for utilisation of these assets. The reinstatement of these deferred tax assets resulted in a tax benefit of $16.8 million. In order to provide users with additional information regarding the continuing operations excluding the aforementioned significant items and to help understand the impact of these events on the results of the Group (and the impact of currency movements on the translation of the Group's international operations into AUD), the segment results are presented in three separate tables. Table A presents the segment results on a basis including all significant items and including the operations of SurfStitch and Swell (and in the pcp DaKine and West 49) for the relevant period of ownership. See Table A \"Segment Results As Reported - Including significant items and discontinued operations\". Table B presents the results excluding significant items and discontinued operations (SurfStitch and Swell are excluded from both the current year and pcp and previously divested businesses DaKine and West 49 are removed from the pcp). See Table B \"Adjusted Segment Results - Continuing Operations As Reported - Excluding significant items and discontinued operations\". Table C presents the results on the same basis as in Table B but on a constant currency basis (i.e. using the current period monthly average exchange rates to convert the prior period foreign earnings) to remove the impact of foreign exchange movements from the Group's performance against the pcp. The constant currency comparatives are not compliant with Australian Accounting Standards. See Table C \"Adjusted Segment Results - Continuing Operations (Constant Currency) - Excluding significant items and discontinued operations\". Billabong International Limited 2014-15 Full Financial Report Page 3 Directors' report : : Operating and Financial Review (continued) Table A: Segment Results As Reported - Including significant items and discontinued operations Segment revenues 2015 2014 $'000 $'000 428,476 480,500 455,565 537,969 179,699 199,041 3,461 2,842 1,067,201 1,220,352 Asia Pacific Americas Europe Third party royalties Segment revenues / EBITDAI* Less: Net interest expense Depreciation and amortisation Fair value adjustment on reclassification of West 49 as held for sale during the prior year Impairment charge Profit/(loss) before income tax expense Income tax benefit/(expense) Profit/(loss) after income tax expense Loss attributable to non-controlling interests Profit/(loss) attributable to members of Billabong International Limited Segment EBITDAI* 2015 2014 $'000 $'000 10,461 14,593 15,345 (48,988) 25,937 (20,754) 3,461 2,842 55,204 (52,307) (28,354) (33,489) (34,205) (39,654) --(3,040) (9,679) 12,231 2,552 1,598 4,150 (17,718) (29,255) (173,139) (66,794) (239,933) 6,221 (233,712) * Segment Earnings Before Interest, Taxes, Depreciation, Amortisation and Impairment (EBITDAI) excludes inter-company royalties and sourcing fees and includes an allocation of global overhead costs (which include corporate overhead, international advertising and promotion costs, central sourcing costs and foreign exchange movements). Table B: Adjusted Segment Results - Continuing Operations As Reported - Excluding significant items and discontinued operations Adjusted EBITDAI by Segment: Asia Pacific Americas Europe Third party royalties Adjusted EBITDAI Less: Depreciation and amortisation Net interest expense Adjusted net profit/(loss) before income tax benefit Adjusted income tax benefit/(expense) Adjusted net profit/(loss) after income tax benefit Loss attributable to non-controlling interest Adjusted net profit/(loss) attributable to members of Billabong International Limited 2015 Excluding significant items and discontinued operations* $'000 29,446 27,180 5,592 3,461 65,679 (32,831) (28,340) 4,508 (1,497) 3,011 --- 2014 Excluding significant items and discontinued operations* $'000 33,391 25,192 (1,080) 2,842 60,345 (34,458) 3,011 * Excludes SurfStitch, Swell, DaKine and West 49. The Group results for the period and the pcp include certain significant items including but not limited to contingent consideration and fair value adjustment charges, costs associated with the various control/refinancing proposals and strategic reform programs announced during the years ended 30 June 2013 and 30 June 2014 (collectively significant items). Refer to note 8 of the financial statements for detailed disclosure in relation to these items. Billabong International Limited 2014-15 Full Financial Report Page 4 Directors' report : : Operating and Financial Review (continued) Table C: Adjusted Segment Results - Continuing Operations (Constant Currency)** - Excluding significant items and discontinued operations Adjusted EBITDAI by Segment: Asia Pacific Americas Europe Third party royalties Adjusted EBITDAI Less: Depreciation and amortisation Net interest expense Adjusted net profit/(loss) before income tax benefit Adjusted income tax benefit/(expense) Adjusted net profit/(loss) after income tax benefit Loss attributable to non-controlling interest Adjusted net profit/(loss) attributable to members of Billabong International Limited 2015 Excluding significant items and discontinued operations* $'000 29,446 27,180 5,592 3,461 65,679 (32,831) (28,340) 4,508 (1,497) 3,011 --- 2014 Excluding significant items and discontinued operations* $'000 33,557 30,079 (1,447) 2,842 65,031 (34,521) 3,011 * Excludes SurfStitch, Swell, DaKine and West 49. ** Due to a significant portion of the Group's operations being outside Australia, the Group is exposed to currency exchange rate translation risk i.e. the risk that the Group's offshore earnings and assets fluctuate when reported in Australian Dollars. The Group's segment information for the prior period has therefore also been presented on a constant currency basis (i.e. using the current period monthly average exchange rates to convert the prior period foreign earnings) to remove the impact of foreign exchange movements from the Group's performance against the pcp. The constant currency comparatives are not compliant with Australian Accounting Standards. Adjusted EBITDAI excludes pre-tax significant items of income and expense. Refer to note 8 of the financial statements for detailed disclosure in relation to these items. Comments on the operations and the results of those operations are set out below: Consolidated result including significant items Net Profit After Tax for the year ended 30 June 2015 was $4.2 million compared to a Net Loss After Tax of $233.7 million in the prior corresponding period (pcp). The results were impacted by the abovementioned significant items in both years (including impairment (2015: $3.0 million; 2014: $29.3 million) and tax (2015: benefit $13.7 million; 2014: expense $73.2 million) and in 2014 the fair value adjustment ($17.7 million), refinancing ($43.7 million)) and the sale of SurfStitch and Swell in the current year and DaKine and West 49 in the pcp. Group performance excluding significant items and excluding discontinued operations Group sales to external customers of $1,048.4 million, excluding third party royalties, represents an as reported 2.6% increase on the pcp. In constant currency terms Group revenues decreased 0.6% on the pcp. In constant currency terms, sales revenue in Asia Pacific decreased 0.4%, the Americas decreased 0.4% and Europe decreased 1.7% compared with the pcp. Consolidated gross margins were 53.0% (53.2% in the pcp). Adjusting for the impact of divestments consolidated gross margins were 52.7% (51.6% in the pcp). Adjusted EBITDAI excluding discontinued operations of $65.7 million for the period compares to $60.3 million for the pcp. This is an increase of 8.8% (an increase of 1.0% in constant currency terms). Billabong International Limited 2014-15 Full Financial Report Page 5 Directors' report : : Operating and Financial Review (continued) The Adjusted EBITDAI excluding discontinued operations was impacted by: In Asia Pacific Adjusted EBITDAI was down $3.9 million (11.8%) compared to the pcp with revenues being 0.3% lower than the pcp in as reported terms (0.4% in constant currency terms), with the effect of the lower AUD impacting gross margins in the wholesale business, while a weaker retail performance saw comparable store sales trading lower in Australia by 4.7% compared to the pcp. In Americas Adjusted EBITDAI was up $2.0 million (7.9%) compared to the pcp (down $2.9 million or 9.6% in constant currency terms). Revenue was up 8.1% compared to the pcp in as reported terms (down 0.4% in constant currency terms). This result reflects improvement in the US market with brands Billabong and RVCA showing sales growth on the pcp on a like for like basis however Element has remained weak during the year. In particular the second half performance in the Americas showed improvement compared to the first half. In constant currency terms sales in the second half were up 0.4% and Adjusted EBITDAI grew from $18.7 million to $22.0 million. This improvement reflected better performance on the pcp from each of Billabong and RVCA with wholesale external USA sales growing 13.7% and 15.3% respectively in the second half. Whilst Element sales in the Americas were below the prior year some positive signs are seen in the forward orders. As well the negative effects from the Canadian market (including the impact of the sale of West 49 retail operations) abated in the second half relative to the first half. Gross margins in the second half were ahead of the prior year and overhead costs down compared to the pcp. In Europe Adjusted EBITDAI was up $6.7 million compared to the pcp which is the result of a significant improvement in gross margins (from 48.4% to 55.2%) on the pcp due to focus on key accounts and territories and contracting the customer set to reduce low margin customers/unprofitable business. Group performance including significant items and including discontinued operations Group sales to external customers of $1,063.7 million, excluding third party royalties, represents a 12.6% decrease on the pcp in as reported terms or a decrease of 14.9% in constant currency terms. At a segment level, in as reported terms, sales revenue in the Americas decreased 15.3%, Europe decreased 9.7% and Asia Pacific decreased 10.8% compared with the pcp reflecting the SurfStitch and Swell revenues included for the whole of the pcp however only for the period 1 July 2014 to 5 September 2014 in the current year and the West 49 revenues included for the period 1 July 2013 to 6 February 2014 however not in the current year. The prior year also has DaKine revenues included for the period 1 July 2013 to 23 July 2013. EBITDAI of $55.2 million for the period compares to a $52.3 million loss for the pcp. The current year includes significant items expense of $8.0 million compared to an expense of $99.2 million for the pcp. In addition to the significant items and divestment differences the comparison is impacted by the trading matters noted above. Significant items Pre-tax significant items for the year ended 30 June 2015 of $11.0 million includes $3.0 million of impairment charge and $8.0 million of items decreasing EBITDAI. Pre-tax significant items for the year ended 30 June 2014 of $146.2 million includes $17.7 million of fair value adjustment to assets held for sale, impairment charge of $29.3 million and $99.2 million of items decreasing EBITDAI (which included costs of $43.7 million associated with the various control/refinancing proposals announced during the years ended 30 June 2013 and 30 June 2014). Refer to note 8 of the financial statements for detailed disclosure in relation to these items. Depreciation and amortisation expense Depreciation and amortisation expense of $32.8 million (excluding significant items and excluding divestments) decreased 4.7% in reported terms compared to the pcp ($34.5 million). Fair value adjustment on reclassification of West 49 as held for sale during the year - relates to the year ended 30 June 2014 On 4 November 2013 the Group announced that it had entered into an agreement to sell its Canadian retail chain, West 49, to YM Inc. As at 31 December 2013 West 49 was reported as an asset held for sale and a discontinued operation. The assets were adjusted to their fair value with a $17.7 million expense recognised based on information available at 31 December 2013 balance sheet date using the terms of the sales agreement. In addition to the fair value adjustment of $17.7 million, a loss on sale of $10.1 million was recognised in relation to the sale of West 49. This loss included the reclassification of the foreign currency translation reserve to the income statement ($4.0 million) and the recognition of a provision for onerous contracts ($2.2 million). Billabong International Limited 2014-15 Full Financial Report Page 6 Directors' report : : Operating and Financial Review (continued) Net interest expense The decrease in net interest expense from $34.2 million to $28.4 million was driven by the Term Loan Facility which was reduced from US$360 million to US$203.8 million following the completion of the C/O Placement and the Rights issue in February and March 2014 respectively. Income tax expense The statutory loss before tax for the year ended 30 June 2015 was $9.7 million with an income tax benefit of $12.2 million (2014 income tax expense of $66.8 million). During the year ended 30 June 2014 the Company made the decision to write off the majority of its deferred tax assets (net of deferred tax liabilities) as it was estimated that it was not probable for taxable profits to be generated in a period where the conditions for utilisation of the assets would be met including continuity of ownership tests. During the year ended 30 June 2015, the Company maintains this same position in most tax jurisdictions with the exception of Australia and Japan where it has been estimated that previously unrecognised temporary differences will now meet the conditions for utilisation of these assets. The reinstatement of deferred tax assets resulted in a tax benefit of $16.8 million. Consolidated balance sheet, cash flow items and capital expenditure Working capital at $164.5 million represents 15.2% of the prior twelve months' sales (excluding SurfStitch and Swell external sales) stated at year end exchange rates, being 1.6% higher compared to the pcp of 13.6% (excluding West 49 and DaKine's North America and Europe wholesale external sales). Working capital as a percentage of sales at June 2015 is higher than June 2014 in part due to the divestments being retail businesses with inherently lower working capital balances (SurfStitch and Swell working capital was still part of the Group's balance sheet as at 30 June 2014). Cash outflow from operating activities was $14.6 million, compared to an outflow of $76.6 million in the pcp, principally because the prior year included the impact of the costs of the refinancing. Receipts from customers net of payments to suppliers and employees of $14.0 million were lower compared to $22.5 million in the pcp which is primarily due to the divestments having cash inflows in the pcp. Cash inflow from investing activities of $11.1 million includes the proceeds from the sale of SurfStitch and Swell. Net debt increased from $74.3 million in the pcp to $113.5 million, principally reflecting foreign exchange differences, significant item payments, financing charge and capital expenditure offset by proceeds from sale of SurfStitch and Swell. Billabong International Limited 2014-15 Full Financial Report Page 7 Directors' report : : Operating and Financial Review (continued) Strategy and future performance The strategies and prospects for the Group's existing business operations are outlined below. On 21 September 2013 Neil Fiske was appointed as Chief Executive Officer and Managing Director. Since his appointment he has put in place a new executive leadership team and on 10 December 2013 announced a Turnaround Strategy to improve the financial performance of the Group specifically highlighting a focus on the following key strategic priorities: Turnaround Strategy Part Brand Description Product Marketing Omni-Channel Supply Chain Organisation Financial Discipline Re-orient the Company to building strong global brands, with particular focus on the biggest three (Billabong, Element, RVCA) Focus on the authentic core youth consumer Implement brand management processes and disciplines Tailor specific strategies based on the unique position of each brand, its geographic strengths, growth potential and portfolio fit Leverage the creativity and uniqueness of the brand founders Build a strong merchant focus for the business. Develop clear assortment strategies - category plans, key item distortion, co-ordinated product launches and optimised balance of global vs regional mix Fewer, bigger, better styles leading to significant reduction in product lines Implement design to adopt ratios by category; design and assort to fixture Elevate design and innovation Develop 12 month integrated marketing calendar for each region Build customer database and establish an advanced CRM programme Re-mix spend toward digital, CRM and demand generation Invest ahead of biggest growth opportunities (examples: RVCA and Billabong women's) Prioritise \"brand\" before \"multi-brand\" Build the mono-brand direct to consumer platform (retail + digital + CRM) Evaluate strategic options for multi-brand ecommerce Develop wholesale channel win-back strategy Drive retail profitability closures, productivity, rent, specialty retail disciplines, inventory management Unify platforms for scale benefits - cost and capability Configure supply chain for speed to improve inventory turns Consolidate suppliers Diversify out of China for cost and capability Drive down distribution/logistics costs Develop global brand structure for the big three; foster brand specific cultures Strengthen merchandising, design and marketing (\"high leverage talent\") Build global scale in Finance, Supply Chain, IT and Direct to Consumer platform Rationalise general administration structure based on organisational design and spans/layers Re-energise the organisation with focus on \"offense\" and \"defence\" agenda Strategy determines resource allocation and management Key Performance Indicators Drive inventory and other working capital improvement; focus on cash flow conversion Prioritise capital expenditure towards customer facing and enabling projects Within the framework of the above Turnaround Strategy, the Group's more immediate priorities included: Addressing the negative sales trend of the Billabong brand in the key US wholesale market; Addressing the negative sales trend of the Element brand in the key US wholesale market, whilst continuing to grow sales and earnings in Europe; Re-establishing the strong sales growth for RVCA, which had slowed in 2014; Stabilising the deteriorating financial performance of the Group's European operations; Regaining total control over the Group's branded ecommerce activities; and Reduce the Group's exposure to multi-brand retailing where it lacked scale. Billabong International Limited 2014-15 Full Financial Report Page 8 Directors' report : : Operating and Financial Review (continued) In the year ended 30 June 2015 the Group has made satisfactory progress towards the immediate priorities outlined above and execution of the strategy more generally. Billabong and RVCA are growing again in the USA, Element is yet to return to growth in the USA but the forward sales outlook is more encouraging, Europe's financial performance has improved markedly, the Group now has 100% control of all of its branded ecommerce businesses following the sale of SurfStitch and the sale of West 49 was completed more than twelve months ago. In the year ended 30 June 2015 the Group consolidated its reform initiatives into four major cross regional/cross brand projects that are expected to underpin the success of the Group's turnaround over the next few years. A description and summary of these projects together with a status update is set out below: Project/Initiative Omni-Channel Sourcing Description To develop true best in class OmniChannel retailer capability Single view of the customer Single view of inventory Single back end bricks and mortar merchandising planning systems World class ecommerce and Application experiences Effective CRM program To develop a global approach to product sourcing to reduce cost and improve speed to market and efficiency Status Project team in place Software supplier contracted April 2015 Planning supplier contracted June 2015 Detailed project plan in place First launch planned for first half calendar 2016 Logistics To develop a global approach to product logistics to reduce cost and improve speed to market and efficiency Concept Customer to To complete a holistic process redesign of our entire design to delivery process to improve speed to market, assist more informed buying decisions, and reduce inventory markdowns Billabong International Limited Organisational changes made Consolidation of preferred vendors largely complete Global standard operating procedures adopted, including capacity planning, to enable volume aggregation and decrease order to delivery cycles Vendor adoption of pre-production, production, and post-production quality assurance processes underway Assortment design successful in enabling cost effectiveness Contracts signed with third party provider to establish consolidation centres in Asia Distribution centre networks reformulated Rationalisation of existing distribution centres announced Demand planning programs in testing to streamline product flow Consistent, repeatable merchandise planning, design and development processes and calendars rolled out in North American markets, and under development globally Sourcing support steps incorporated into early design and development calendars to quicken order to delivery times 2014-15 Full Financial Report Page 9 Directors' report : : Operating and Financial Review (continued) Material risks The material risks that have the potential to affect the financial prospects of the Group, and the manner in which the Group manages these risks, include: Risk Brand Summary of risk Possible damage or loss of market appeal to the brands or the image of the Group's brands. Fashion The Group addresses this risk through keeping abreast of economic and consumer data/research, innovative product development and brand management. Also refer to the aforementioned Turnaround Strategy which details the prominence of brand positioning as a key component of the strategy. Failure to design and deliver products that appeal to customers. Macro-economic environment Currency fluctuations Competition Seasonal factors Product sourcing and delivery The Group addresses this risk through customer feedback, innovative product development and brand building. Also refer to the aforementioned Turnaround Strategy which details the prominence of product design and innovation as a key component of the strategy. The financial performance of the Group will fluctuate due to various factors including movements in the Australian and international capital markets, interest rates, foreign currency exchange rates, inflation, consumer sentiment, macro-economic conditions in the markets in which Group operates (including any significant and extended economic downturn in Australia, Asia, North America, Europe, South America and Africa), change in government, fiscal, monetary and regulatory policies, prices of commodities, investor perceptions and other factors that may affect the Group's financial position and earnings. The Group receives revenue in more than ten currencies and movements in these currencies could have an impact on the Group's profitability and net asset position. This risk arises when assets and liabilities, and forecasted purchases and sales are denominated in a currency other than the functional currency of the respective entities. As sales are mainly denominated in the respective local currency, whereas the major inventory purchases are typically negotiated and denominated in United States Dollars (USD). This creates input pricing risk for all markets other than the United States. This risk is mitigated to an extent by hedging, but significant movements in the USD, like have occurred during 2015, still can impact the comparability of profitability of seasons between financial years. The Group competes for discretionary income spend. The Group's performance may be adversely affected by competitors' actions, for example, by lowering their sale prices or creating new product lines that are more attractive in the marketplace or by agreeing to pay more for production, other services or talent and employment costs or alternate channels to market. The Group addresses this risk by focusing on innovative product development and brand building to promote customer loyalty and remunerating employees fairly. Part of the Group's business is seasonal in nature and prolonged unseasonal weather conditions in a particular region may adversely affect sales in that region. A material disruption in the capabilities and availability of the Group's product sourcing and/or delivery arrangements could have an adverse impact on the Group, given the importance of the quality, performance and timely delivery of our products. The Group addresses this risk by planning the capacity utilization of its preferred mills and factories well below their full capacity, securing space on their production lines that is most advantageous to the Group's calendar and supply chain needs, and maintaining secondary production alternatives among the Group's preferred vendors. Billabong International Limited 2014-15 Full Financial Report Page 10 Directors' report : : Operating and Financial Review (continued) Risk Online retailing Debt covenants Centerbridge / Oaktree Consortium's (\"C/O Consortium\") involvement in the Group Social risk Asset impairment Proceeds from the refinancing may not provide sufficient funding to execute the Company's Turnaround Strategy Strategy implementation risk Summary of risk Continued migration of consumers to online retail purchases may adversely impact the performance of the Group's bricks and mortar retail outlets and wholesale customers and the historically higher margin regions. The Group addresses this risk by focusing on the omni-channel as part of the aforementioned Turnaround Strategy to ensure the Group has a best in class mono-brand direct to consumer platform which uses the Group's stores and websites to lead the brands. Failure to comply with its financial covenants caused by a significant decline in revenue or earnings or a further material change in the AUD:USD exchange rate may require the Group to seek amendments, waivers of covenant compliance or alternative borrowing arrangements. The Group is focussed on delivering the Turnaround Strategy to mitigate this risk. While the C/O Consortium has a substantial equity ownership in the Company and is therefore likely to be focused on maximising value (and therefore its incentives should be broadly aligned to those of other Shareholders), there is a risk that as a debt holder the C/O Consortium's interests may not always align with those of other Shareholders. If so, the C/O Consortium's significant holding of Shares and entitlement to nominate two Directors to the Board mean it would be in a position to influence decisions of the Company. The Group mitigates this risk by ensuring that the Board and all Board committees are chaired by an Independent Director, there is a majority of Independent Directors on all committees and that the C/O Consortium's nominated directors (Mr. Mozingo and Mr. Wilson) do not have any business interest or other relationships that could materially interfere with the exercise of their independent judgement and their ability to act in the best interest of the Company. Given that the Group sources goods manufactured in countries such as China, where there have been risks surrounding the workplace health and safety standards of factories, the Group is utilising an external auditing body to audit social compliance of the Company's factories against an approved Code Of Conduct, which contains standards equivalent to SA8000 and Worldwide Responsible Accredited Production (WRAP). The Group's assets may be required to be written down or become impaired (in accordance with relevant accounting standards), which may negatively impact the Group's financial performance and position. The Group is focussed on delivering the Turnaround Strategy to mitigate this risk. Should the Group experience a protracted decline in earnings, there is a possibility that the quantum of debt funding available to the Company would not be sufficient to execute its Turnaround Strategy, which could have a negative impact on its future financial performance or position. The Group is focussed on delivering the Turnaround Strategy to mitigate this risk. The Group's Turnaround Strategy includes significant process and system reform. Effective change management is a key mitigant in respect of the disruption and project risk inherent in such an agenda. The Group has a dedicated Chief Turnaround Officer to co-ordinate and facilitate the successful reform program and appropriate change management program, testing and redundancy plans are key elements of the project plans. The Group does not have any dependencies on key customers given its diverse customer base. The Group maintains relationships with a number of suppliers for its products to help mitigate supply and supplier dependency risks. As the Group operates in countries across the world, the Group is impacted by macroeconomic trading conditions across all of these countries. Billabong International Limited 2014-15 Full Financial Report Page 11 Directors' report : : Matters subsequent to the end of the financial year There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature that would be likely, in the opinion of the Directors, to significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial years. Likely developments and expected results of operations Since the end of the financial year in the wholesale channel, the Group continues to see growth in forward order books around the globe consistent with the view that the Group's big three brands are making progress. In retail, trading has been more mixed. In North America, the early part of back to school saw a slow start, not just for the Group, but for the sector as a whole. Europe, on the other hand, has been above expectations. The trend in Asia Pacific has been improving since year end with trading broadly in line with the prior year. The Group results note a number of risk factors including the impact of currency on input prices and debt, and further disruption from the operational issues with the Paris distribution centre. However, we do expect the benefits of supply chain and other initiatives to begin in the second half of the year ending 30 June 2016. Environmental regulation The Group is not subject to any significant environmental regulation or mandatory emissions reporting. Billabong International Limited 2014-15 Full Financial Report Page 12 Directors' report : : Information on Directors IAN POLLARD (Non-Executive Chair) Experience and expertise Dr Ian Pollard is an actuary, Rhodes Scholar and a Fellow of the Australian Institute of Company Directors. He has held a wide range of senior business roles including as Chair of Just Group Limited and as a Director of OPSM Group Limited and DCA Group Limited, which he founded. He is currently Chair of RGA Reinsurance Company of Australia Limited and an executive coach with Foresight's Global Coaching. With an extensive background in corporate finance, strategic investment and retail, Dr Pollard has chaired several public company audit committees and was a member of the ASX Corporate Governance Implementation Review Group from 2003 to 2007. Mr Pollard was appointed as Non-Executive Director and Chair of the Company on 24 October 2012. Other current directorships Milton Corporation Limited, director since 6 August 1998. Shopping Centres Australasia Property Group, stapled securities of Shopping Centres Australasia Property Management Trust and Shopping Centres Australasia Property Retail Trust (director of responsible entity, Shopping Centres Australasia Property Group RE Limited (SCPRE), director since 26 September 2012. Former directorships in last 3 years No former directorships of Australian listed entities. Special responsibilities Chair of the Board and Nominations Committee and member of Human Resource and Remuneration, Class Action and Audit and Risk Committees. Interests in shares and options 152,979 ordinary shares in Billabong International Limited. MCNEIL SEYMOUR FISKE JR (Executive Director) Experience and expertise Neil Fiske was appointed as Chief Executive Officer and Managing Director of the Company on 21 September 2013. He has 25 years of experience in the consumer and retail industry as an operator, consultant and investor. Prior to joining the Company he was an Industry Partner to Canadian private equity firm Onex, where he acted as a senior advisor focused on retail. From 2007 to 2012 Mr Fiske was CEO of Eddie Bauer an outdoor lifestyle store chain based in the USA. From 2003 to 2007 Mr Fiske was the CEO of Bath and Body Works, a division of NYSE listed Limited Brands. From 1989 to 2003 he was in the Consumer and Retail Practice of the Boston Consulting Group. Mr Fiske received an M.B.A. from Harvard Business School and a B.A. in Political Economy from Williams College. Other current directorships No other directorships of Australian listed entities. Former directorships in last 3 years No former directorships of Australian listed entities. Special responsibilities Chief Executive Officer and Managing Director. Interests in shares and options 669,643 ordinary shares in Billabong International Limited. 1,785,714 ordinary shares in Billabong International Limited to be held in voluntary escrow until commencement of trade on 10 January 2016. Billabong International Limited 2014-15 Full Financial Report Page 13 Directors' report : : Information on Directors (continued) GORDON MERCHANT AM (Non-Executive Director) Experience and expertise Gordon Merchant founded Billabong's business in 1973 and has been a major stakeholder in the business since its inception. Mr Merchant has extensive experience in promotion, advertising, sponsorship and design within the surfwear apparel industry. Mr Merchant was awarded a Member of the Order of Australia in the 2010 Australia Day Honours List for service to business, particularly the manufacturing sector, as a supporter of medical, youth and marine conservation organisations, and to surf lifesaving. Mr Merchant was appointed as director of Plantic Technologies Limited on 31 March 2005 and resigned on 2 April 2015. Mr Merchant was appointed as Non-Executive Director of the Company on 4 July 2000. Other current directorships No other directorships of Australian listed entities. Former directorships in last 3 years No former directorships of Australian listed entities. Special responsibilities None. Interests in shares and options 100,575,183 ordinary shares in Billabong International Limited. HOWARD MOWLEM (Non-Executive Director) Experience and expertise Howard Mowlem is experienced in many segments of the international retail industry and specifically in Asia. From 2001 to 2010 he was Chief Financial Officer of Dairy Farm International Holdings Limited, a Hong Kong based retail company operating over 5,000 stores across Asia with turnover in excess of US$10 billion. Prior to this Mr Mowlem held various senior financial positions over a 12 year period with the Coles Myer Group. He brings extensive experience in corporate finance, mergers and acquisitions, financial reporting, treasury, tax, investor relations, audit and governance. Mr Mowlem was appointed as Non-Executive Director of the Company on 24 October 2012. Mr Mowlem holds a Bachelor of Economics (Hons), M.B.A., and Securities Industry Diploma. He is a Fellow of CPA Australia. Other current directorships No other directorships of Australian listed entities. Former directorships in last 3 years No former directorships of Australian listed entities. Special responsibilities Chair of Audit and Risk Committee and member of Nominations and Human Resource and Remuneration Committees. Interests in shares and options 137,500 ordinary shares in Billabong International Limited. Billabong International Limited 2014-15 Full Financial Report Page 14 Directors' report : : Information on Directors (continued) JASON MOZINGO (Non-Executive Director) Experience and expertise Jason Mozingo is a Senior Managing Director at Centerbridge Partners, L.P. Mr Mozingo leads the firm's retail and consumer investment efforts. Prior to joining Centerbridge, he was a Principal with Avista Capital Partners (spun-out of DLJ Merchant Banking in 2005) and DLJ Merchant Banking Partners, a leverage buyout group managing in excess of $9 billion. He joined DLJ in 1998. Mr Mozingo graduated from UCLA Phi Beta Kappa, summa cum laude with a degree in economics and received an M.B.A. with high distinction from Harvard Business School in 1998, where he was a Baker Scholar. He is a CFA charter holder and a member of the CFA Institute and currently serves as a Director of P.F. Chang's, CraftWorks Restaurants & Breweries and GT Holdings, LLC. Mr Mozingo was appointed as Non-Executive Director of the Company on 4 November 2013. Other current directorships No other directorships of Australian listed entities. Former directorships in last 3 years No former directorships of Australian listed entities. Special responsibilities Member of Nominations, Human Resource and Remuneration, and Audit and Risk Committees. Interests in shares and options None. SALLY PITKIN (Non-Executive Director) Experience and expertise Dr Sally Pitkin has nineteen years' experience as a non-executive director in the listed, private, public and non-profit sectors. She has eleven years' experience as a non-executive director of ASX200 companies, including experience in international markets. Industry sectors in which she has experience as a non-executive director include retail, finance and insurance, technology commercialisation, gaming, energy and transport. She is a lawyer and former partner of Clayton Utz with banking law, corporate law and corporate governance expertise. Dr Pitkin is a non-executive director and Fellow of the Australian Institute of Company Directors and is President of the Queensland Division. She holds a Doctor of Philosophy (Governance), awarded in 2012, a Master of Laws and Bachelor of Laws. Dr Pitkin was appointed as Non-Executive Director of the Company on 28 February 2012. Other current directorships Super Retail Group Limited, director since 1 July 2010. IPH Limited, director since 23 September 2014. Echo Entertainment Group Limited, director since 19 December 2014. Former directorships in last 3 years No former directorships of Australian listed entities. Special responsibilities Chair of Human Resource and Remuneration and Class Action Committees and member of Audit and Risk and Nominations Committees. Interests in shares and options 96,250 ordinary shares in Billabong International Limited. Billabong International Limited 2014-15 Full Financial Report Page 15 Directors' report : : Information on Directors (continued) MATTHEW WILSON (Non-Executive Director) Experience and expertise Matthew Wilson is a Managing Director at Oaktree Capital Management, L.P. and is based in Los Angeles. He leads Oaktree's retail and consumer investing efforts, including investments in the apparel, retail, consumer products, food, beverage, and restaurants sectors. Prior to Oaktree, Mr Wilson was with H.I.G. Capital, LLC, a leading middle market private equity firm managing over $13 billion of capital. Prior thereto, he worked in the middle market buyout group at J.H. Whitney & Co. and the investment banking division at Merrill Lynch & Co. in New York. Mr Wilson graduated with a B.A. degree with Distinction in Economics and History from the University of Virginia and an M.B.A. from the Harvard Business School. He currently serves on the Boards of Directors of AdvancePierre Foods, AgroMerchants Group, Diamond Foods (Nasdaq: DMND), and The Bridge Direct HK and is Chair of the Board of Trustees of the Children's Bureau of Los Angeles. Mr Wilson was appointed as Non-Executive Director of the Company on 4 November 2013. Other current directorships No other directorships of Australian listed entities. Former directorships in last 3 years No former directorships of Australian listed entities. Special responsibilities Member of the Nominations, Human Resource and Remuneration and Audit and Risk Committees. Interests in shares and options None. AMAR DOSHI (Alternate Director for Jason Mozingo) Experience and expertise Amar Doshi is a Principal at Centerbridge Partners, L.P and focuses on the firm's investments in the retail and consumer sectors. Prior to joining Centerbridge, Mr Doshi was a Vice President at Bain Capital and previously was an Associate Consultant at Bain & Company. Mr Doshi g