STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2016 Consolidated 2016 2015 Note Revenue Share of profits of joint ventures accounted for using the equity method Other gains and losses $’000 $’000 4 830,825 149,799 24 925 525 5 (20,651) 677 Expenses Network and service delivery (440,427) (64,538) Employee benefits expense 6 (120,772) (25,919) Depreciation and amortisation expense 6 (78,487) (18,684) (54,783) (7,502) Administration and other expenses Finance costs 6 Income tax expense 27 (24,464) (6,073) 92,166 Profit before income tax expense 28,285 (27,914) (8,435) 64,252 19,850 (233) - Foreign currency translation 3,209 (217) Net movement on hedging transactions, net of tax 6,623 508 Profit after income tax expense for the year Other comprehensive income Items that may be reclassified subsequently to profit or loss Loss on the revaluation of available-for-sale financial assets, net of tax Other comprehensive income for the year, net of tax 9,599 291 73,851 20,141 161 - 64,091 19,850 64,252 Total comprehensive income for the year 19,850 Profit for the year is attributable to: Non-controlling interest Owners of Vocus Communications Limited 37 Total comprehensive income for the year is attributable to: Non-controlling interest 161 - 73,690 20,141 73,851 Owners of Vocus Communications Limited 20,141 Cents Cents Basic earnings per share 7 18.86 19.08 Diluted earnings per share 7 18.82 19.01 The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 46 | VOCUS.COM.AU STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 30 JUNE 2016 Consolidated 2016 2015 Note $’000 $’000 Cash and cash equivalents 30 128,629 15,170 Trade and other receivables 16 144,379 22,682 Inventories 17 12,924 - 1,998 - Assets Current assets Available-for-sale financial assets Derivative financial instruments 11 9,978 1,027 Other 34 35,776 3,051 333,684 41,930 Total current assets Non-current assets Plant and equipment 25 522,413 204,619 Intangibles 26 3,757,068 125,394 Deferred tax 28 57,403 5,443 4,934 3,708 18,517 2,250 Total non-current assets 4,360,335 341,414 Total assets 4,694,019 383,344 Investment in joint venture Other 19 Liabilities Current liabilities Trade and other payables 18 288,966 24,177 Borrowings 32 13,729 1,764 Derivative financial instruments 12 3,972 - 2,036 3,533 10,127 Income tax Provisions 22 25,020 Other 20 66,841 1,277 400,564 40,878 872,382 117,959 Total current liabilities Non-current liabilities Borrowings 33 Derivative financial instruments 13 5,390 - Deferred tax 29 216,320 21,299 Provisions 23 11,310 2,441 Other 21 13,768 4,528 Total non-current liabilities 1,119,170 146,227 Total liabilities 1,519,734 187,105 Net assets 3,174,285 196,239 144,244 Equity Contributed equity 35 3,100,738 Reserves 36 16,306 3,847 Retained profits 37 57,080 48,148 3,174,124 196,239 161 - 3,174,285 196,239 Equity attributable to the owners of Vocus Communications Limited Non-controlling interest Total equity The above statement of financial position should be read in conjunction with the accompanying notes 47 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2016 Consolidated Contributed Equity Reserves Retained Profits Noncontrolling Interest Total equity $’000 Balance at 1 July 2014 $’000 $’000 $’000 $’000 98,594 2,639 35,891 - 137,124 Profit after income tax expense for the year - - 19,850 - 19,850 Other comprehensive income for the year, net of tax - 291 - - 291 Total comprehensive income for the year - 291 19,850 - 20,141 45,650 Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs (note 35) 45,650 - - - Share-based payments (note 38) - 917 - - 917 Dividends paid (note 8) - - (7,593) - (7,593) 144,244 3,847 48,148 - 196,239 Reserves Retained Profits Noncontrolling Interest Total equity Balance at 30 June 2015 Consolidated Contributed Equity $’000 Balance at 1 July 2015 Profit after income tax expense for the year $’000 $’000 $’000 $’000 144,244 3,847 48,148 - 196,239 - - 64,091 161 64,252 Other comprehensive income for the year, net of tax - 9,599 - - 9,599 Total comprehensive income for the year - 9,599 64,091 161 73,851 Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs (note 35) 2,955,273 - - - 2,955,273 Share-based payments (note 38) - 2,077 - - 2,077 Arising upon business combinations w(note 40) - 2,004 - - 2,004 1,221 (1,221) - - - - - (55,159) - (55,159) 3,100,738 16,306 57,080 161 3,174,285 Transfers Dividends paid (note 8) Balance at 30 June 2016 The above statement of changes in equity should be read in conjunction with the accompanying notes 48 | VOCUS.COM.AU STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2016 Consolidated 2016 2015 $’000 $’000 862,745 156,373 (695,456) (109,714) 167,289 Note 46,659 Cash flows from operating activities Receipts from customers Payments to suppliers and employees Dividends received 8 Other finance costs paid 789 (1,487) (4,519) 135,626 42,610 35,038 (53,948) (66,899) 31 (319) (31,063) Income taxes paid Net cash from operating activities - 879 Interest received (31,852) Cash flows from investing activities Payments for purchase of business, net of cash acquired, acquisition and integration costs Payments for property, plant and equipment Proceeds from disposal of assets 265 Proceeds from total return swaps 3,048 (31,169) Payments for intangible assets (2,842) 19,520 - (43,245) Net cash used in investing activities (85,594) Cash flows from financing activities Proceeds from borrowings 695,948 Interest and other finance costs paid on borrowings 63,110 (595,000) Repayment of borrowings on business acquisitions (32,559) (21,465) (5,192) Repayment of finance leases and IRU liabilities (7,340) (9,528) Interest paid on leases (1,512) (876) 1,307 854 Proceeds from issue of shares, net of transaction costs Dividends paid 8 Cash and cash equivalents at the end of the financial year 30 (29,387) 15,170 Cash and cash equivalents at the beginning of the financial year (2,212) 13,597 113,459 Net increase/(decrease) in cash and cash equivalents (50,860) 21,078 Net cash from financing activities 44,557 128,629 15,170 The above statement of cash flows should be read in conjunction with the accompanying notes 49