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1 (ii) Identifiable assets acquired and liabilities assumed Identifiable assets Cash and cash equivalents 14,947 Trade and other receivables 7,252 Inventories 25,485 Other assets 2,225 Deferred tax assets 890 Property, plant and equipment 2,507 Intangible assets 6,675 Goodwill * 53,716 Total identifiable assets acquired 113,697 Identifiable liabilities Trade and other payables 23,675 Deferred income 265 Employee benefits 1,930 Income tax provision 989 Provisions 634 Total identifiable liabilities assumed 27,493 Net identifiable assets assumed 86,204

2 (b) Acquisition of Surfdome Shop Limited (i) Consideration transferred Cash 32,631 Equity instruments 14,315 Total consideration transferred 46,946

3 (b) (ii) Acquisition of Surfdome Shop Limited (continued) Identifiable assets required and liabilities assumed Identifiable assets Cash and cash equivalents 6,799 Trade and other receivables 818 Inventories 21,639 Other assets 324 Deferred tax assets 566 Property, plant and equipment 1,033 Intangible assets 2,600 Total identifiable assets acquired 33,779 Identifiable liabilities Trade and other payables 16,317 Employee benefits 247 Provisions 826 Total identifiable liabilities assumed 17,390 Net identifiable assets assumed 16,389 (iii) Goodwill Consideration transferred 46,946 Fair value of identifiable net assets (16,389) Goodwill 30,557

4 (b) (iii) Acquisition of Surfdome Shop Limited (continued) Goodwill (continued) (iv) Acquisition costs (c) Acquisition of Magicseaweed Limited (i) Consideration transferred

5 (c) (ii) Acquisition of Magicseaweed Limited (continued) Identifiable assets required and liabilities assumed Identifiable assets Cash and cash equivalents 494 Trade and other receivables 66 Inventories 1,379 Property, plant and equipment 87 Total identifiable assets acquired 2,026 Identifiable liabilities Trade and other payables 499 Deferred tax liabilities 17 Total identifiable liabilities assumed 516 Net identifiable assets assumed 1,510 (iii) Goodwill Consideration transferred 8,507 Fair value of identifiable net assets (1,510) Goodwill 6,997

6 (c) (iv) Acquisition of Magicseaweed Limited (continued) Acquisition costs (d) Acquisition of Rollingyouth Pty Limited (i) Consideration transferred (ii) Identifiable assets required and liabilities assumed Identifiable assets Cash and cash equivalents 20 Trade and other receivables 662 Other assets 23 Property, plant and equipment 69 Total identifiable assets acquired 774 Identifiable liabilities Trade and other payables 421 Employee benefits 70 Total identifiable liabilities assumed 491 Net identifiable assets assumed 283

7 (d) (ii) Acquisition of Rollingyouth Pty Limited (continued) Identifiable assets required and liabilities assumed (continued) (iii) Goodwill Consideration transferred 2,263 Fair value of identifiable net assets (283) Goodwill 1,980 (iv) Acquisition costs

8 (a) Results of discontinued operation Revenue 4,165 Expenses (17,492) Impairment expense (19,702) Loss from operating activities before tax (33,029) Income tax - Loss from operating activities after tax (33,029) Basic earnings/(loss) per share (dollars) 9 (0.20) Diluted earnings/(loss) per share (dollars) 9 (0.20) (b) Cash flows used in discontinued operation Net cash used in operating activities (12,393) Net cash flows for the period (12,393)

9 2015 In thousands of dollars Continuing operations Discontinued operation (See note 6) Total Sale of goods 97,857 4, ,022 Total revenue 97,857 4, ,022 (a) Other expenses IPO related expenditure 6,571 Total other expense 6,571 (b) Expenses by nature Advertising & promotion 8,880 Amortisation 18(a) 2,032 Depreciation 17(a) 575 Distribution costs 10,070 Employee entitlements 12 18,286 Rent 24 1,936 Transaction fees 3,183 Website costs 2,221 Other expenses 8,125 Total selling and distribution, administrative and other expenses 55,308

10 In thousands of dollars Continuing operations 2015 Discontinued operation Total Loss for the period, attributable to the owners of the Company (14,248) (33,029) (47,277) Continuing operations 2015 Discontinued operation Total Basic earnings per share (dollars) (0.09) (0.20) (0.29) Diluted earnings per share (dollars) (0.09) (0.20) (0.29)

11 (a) Loan shares (i) Loan share details Grant date 26-Nov-14 Vesting date - Tranche 1 31-Dec-17 Vesting percentage - Tranche 1 60% Vesting date - Tranche 2 31-Dec-18 Vesting percentage - Tranche 2 20% Vesting date - Tranche 3 31-Dec-19 Vesting percentage - Tranche 3 20% Service condition * Yes Performance condition + TSR Expense recognised in period based on grant date fair value $83,089 Equity instrument rights 800,000 (ii) Loan shares on issue Number of shares Outstanding at 13 October Granted during the period 800,000 Outstanding at 30 June ,000

12 (a) (iii) Loan shares (continued) Measurement of fair values Grant date 26-Nov-14 Fair value at grant date - Tranche 1 $0.62 Fair value at grant date - Tranche 2 $0.62 Fair value at grant date - Tranche 3 $0.63 Share price at grant date $1.00 Expected volatility (weighted average) 38.3% Risk-free interest rate 2.72% Vesting date 1 - Tranche 1 31-Dec-17 Vesting percentage 1 - Tranche 1 60% Vesting date 2 - Tranche 2 31-Dec-18 Vesting percentage 2 - Tranche 2 20% Vesting date 3 - Tranche 3 31-Dec-19 Vesting percentage 3 - Tranche 3 20% (b) Employee gift offer Grant date 15-Dec-14 Vesting date 15-Dec-14 Service condition * Yes Performance condition No Expense recognised in period based on grant date fair value $89,000 Equity instrument rights 89,000

13 (c) Performance rights (i) Performance rights details Grant 1 Grant 2 Grant 3 Grant 4 Grant 5 Grant 6 Grant date 26-Nov Nov Dec Mar Jun Jun-15 Vesting date - Tranche 1 31-Dec Dec Dec Mar Dec Jun-15 Vesting percentage - Tranche 1 60% 33% 60% 33% 33% 33% Vesting date - Tranche 2 31-Dec Dec Dec Dec Dec Dec-17 Vesting percentage - Tranche 2 20% 67% 20% 67% 33% 67% Vesting date - Tranche 3 31-Dec Dec Dec-17 - Vesting percentage - Tranche 3 20% - 20% - 33% - Service condition * Yes Yes Yes Yes Yes Yes Performance condition + TSR No TSR No No No Expense recognised in period based on grant date fair value $41,545 $516,164 $64,169 $5,260 $527 $67,577 Equity instrument rights 400,000 1,192, ,000 9,372 15, ,830

14 (c) Performance rights (continued)

15 (c) Performance rights (continued) Grant 1 Grant 2 Grant 3 Grant 4 Grant 5 Grant 6 Grant date 26-Nov Nov Dec Mar Jun Jun-15 Fair value at grant date - Tranche 1 $0.62 $1.00 $0.62 $1.39 $1.77 $1.77 Fair value at grant date - Tranche 2 $0.62 $1.00 $0.62 $1.39 $1.77 $1.77 Fair value at grant date - Tranche 3 $ $ $ Share price at grant date $1.00 $1.00 $1.00 $1.39 $1.77 $1.77 Expected volatility (weighted average) 38.3% 38.3% 38.3% 38.3% 38.3% 38.3% Expected dividends Nil Nil Nil Nil Nil Nil Risk-free interest rate 2.85% 2.73% 2.85% 2.22% 2.29% 2.19% Vesting period - Tranche 1 3 years 1 month 3 years Nil 6 months Nil Vesting period - Tranche 2 4 years 3 years 4 years 3 years 2 years 3 years Vesting period - Tranche 3 5 years N/a 5 years N/a 3 years N/a

16 (c) Performance rights (continued) (d) Equity-settled share-based payments awards pursuant to acquisition agreements of Magicseaweed Limited and Rollingyouth Pty Limited Grant date 22-May-15 Vesting date - Tranche 1 22-May-16 Vesting percentage - Tranche % Vesting date - Tranche 2 22-May-17 Vesting percentage - Tranche % Vesting date - Tranche 3 22-May-18 Vesting percentage - Tranche % Service condition * Yes Performance condition + No Expense recognised in period based on grant date fair value $253,524 Equity instrument rights 2,298,846 Number of shares Outstanding at 13 October Granted during the period Tranche 1 766,282 Granted during the period Tranche 2 766,282 Granted during the period Tranche 3 766,282 Forfeited during the period - Exercised during the period - Expired during the period - Outstanding at 30 June ,298,846

17 (d) Equity-settled share-based payments awards pursuant to acquisition agreements of Magicseaweed Limited and Rollingyouth Pty Limited (continued) Grant date 22-May-15 Vesting date - Tranche 1 22-May-16 Vesting percentage - Tranche % Vesting date - Tranche 2 22-May-17 Vesting percentage - Tranche % Vesting date - Tranche 3 22-May-18 Vesting percentage - Tranche % Service condition * Yes Performance condition + No Expense recognised in period based on grant date fair value $269,020 Equity instrument rights 2,439,360 Number of shares Outstanding at 13 October Granted during the period Tranche 1 813,120 Granted during the period Tranche 2 813,120 Granted during the period Tranche 3 813,120 Forfeited during the period - Exercised during the period - Expired during the period - Outstanding at 30 June ,439,360

18 Liability for annual leave 624 Liability for long service leave 180 Liability for bonuses (1) 603 Other benefits 298 Total employee benefits 1,705 Current 1,525 Non-current 180 Total employee benefits 1,705 Wages and salaries 15,933 Compulsory superannuation contributions 524 Termination benefits 228 Increase/(decrease) in liability for annual leave 222 Increase/(decrease) in liability for long service leave (11) Equity-settled share based payments 10 1,390 Total employee benefits expense 18,286

19 (a) Amounts recognised in profit or loss Current tax expense - Deferred tax expense (3,583) Tax expense on continuing operations (3,583) (b) Amounts recognised directly in equity 2015 In thousands of dollars Before tax Tax expense/ (benefit) Net of tax Capital raising costs 5,186 (787) 4,399 Total recognised directly in equity 5,186 (787) 4,399 (c) Reconciliation of effective tax rate % $'000 Profit/(loss) before tax from continuing operations (17,831) Tax using the Company s domestic tax rate 30% (5,349) Effect of tax rates in foreign jurisdictions 10% 332 Non-deductible IPO costs 30% 656 Non-deductible acquisition costs 30% 740 Other non-deductible expenses 30% 249 Tax base uplift as a result of tax grouping 30% (211) Effective tax rate 20% (3,583)

20 (d) Movement in deferred tax balances In thousands of dollars Net balance at 13 October 2014 Recognised in profit or loss Recognised directly in equity Acquired in business combinations Net balance at 30 June 2015 Property, plant and equipment (114) 22 Intangibles assets (115) (17) Other assets (23) - Employee benefits Provisions Tax losses - 3, ,034 Capital raising costs - (191) Net tax assets 5,809 Bank balances 40,618 Call deposits 219 Total cash and cash equivalents 40,837 Trade receivables 1,633 Other receivables 347 Total trade and other receivables 1,980 Current 1,980 Non-current - Total trade and other receivables 1,980

21 Finished goods 43,290 Total inventories 43,290 (a) Reconciliation of carrying amount Cost In thousands of dollars Note Plant & equipment Leased plant & equipment Total Balance at 13 October Acquisitions through business combinations 5 3, ,696 Additions Disposals (209) (320) (529) Effect of movements in exchange rates Balance at 30 June , ,835 Accumulated depreciation and impairment losses In thousands of dollars Note Plant & equipment Leased plant & equipment Total Balance at 13 October Depreciation - continuing operations Depreciation - discontinued operation Impairments Disposals (94) (59) (153) Effect of movements in exchange rates Balance at 30 June Carrying amounts In thousands of dollars Plant & equipment Leased plant & equipment Total Balance at 13 October Balance at 30 June , ,304

22 (a) Cost Reconciliation of carrying amount In thousands of dollars Note Goodwill Other Total Balance at 13 October Acquisitions through business combinations 5 93,250 9, ,525 Additions - 2,693 2,693 Disposals - (3,737) (3,737) Effect of movements in exchange rates Balance at 30 June ,534 8, ,880 Accumulated amortisation and impairment losses In thousands of dollars Note Goodwill Other Total Balance at 13 October Amortisation - continuing operations 8-2,032 2,032 Amortisation - discontinued operation Impairments 19,702-19,702 Disposals - (2,403) (2,403) Effect of movements in exchange rates Balance at 30 June , ,157 Carrying amounts In thousands of dollars Note Goodwill Other Total Balance at 13 October Balance at 30 June ,832 7,891 81,723

23 (b) Impairment test SurfStitch Pty Limited 24,432 SurfStitch Europe Pty Limited - Surfdome Shop Limited 30,557 SurfStitch USA, Inc. 9,866 Magicseaweed Limited 6,997 Rollingyouth Pty Ltd 1,980 Total goodwill 73,832

24 (a) Share capital

25 19. Capital and reserves (continued) (b) Nature and purpose of reserves (c) Dividends Trade payables 26,641 Trade payables due to related parties Other payables 7,815 Accrued expenses 1,527 Total trade and other payables 36,131 Current 36,131 Non-current - Total trade and other payables 36,131

26 In thousands of dollars Note Customer returns Make good Onerous contracts Total Balance at 13 October Assumed in a business combination 5 1, ,460 Provisions made during the period 1, ,097 Provisions used during the period (1,280) - - (1,280) Provisions reversed during the period Effect of movements in exchange rates (1) - - (1) Balance at 30 June , ,276 Current 1, ,191 Non-current Total provisions 1, ,276 (a) Customer returns (b) Make good (c) Onerous contracts (a) Accounting classifications and fair values

27 (b) Financial risk management Asia Pacific 723 Europe 965 United States of America 292 Total trade and other receivables 15 1,980

28 (b) Financial risk management (continued) Neither past due nor impaired 1,980 Total trade and other receivables 15 1,980 In thousands of dollars Carrying amount at 30 June months or less Contractual cash flows 2-12 months 1-2 years 2-5 years More than 5 years Non-derivative financial liabilities Trade and other payables 36,131 26,789 9, Total non-derivative financial liabilities 36,131 26,789 9,

29 (b) Financial risk management (continued) In local currency (thousands) EUR GBP USD 2015 Trade and other receivables Trade and other payables (1,657) (8,593) (5,154) Net statement of financial position exposure (1,634) (8,119) (4,919) In AUD 2015 Year-end Average rate spot rate EUR GBP USD

30 (b) Financial risk management (continued) Profit or (loss) Equity, net of tax Effect in thousands of dollars Strengthening Weakening Strengthening Weakening EUR (1% movement) (133) (38) GBP (1% movement) (20) 20 (180) 180 USD (1% movement) (18) 18 (6) 6

31 Less than one year 2,690 Between one and five years 2,275 More than five years - Total future minimum lease payments 4,965 Lease expense 1,630 Onerous lease expense 306 Total amounts recognised in profit or loss 8 1,936

32 (a) Parent and ultimate controlling party (b) Transactions with key management personnel In dollars Note 2015 Short-term employee benefits 2,697,658 Post-employment benefits 35,918 Other long term benefits - Termination benefits - Share-based payments 186,063 Total key management personnel compensation 2,919,639 (c) Transactions with other related parties In dollars Transaction value for the period ended 30 June 2015 Balance outstanding at 30 June 2015 Streamline Retail Pty Ltd 476, ,579

33 (c) Transactions with other related parties (continued) Related party Shares in SHPL before transaction Scrip for scrip issuance Net cash received Justin Cameron 6,000,000 6,000,000 - Lex Pederson 5,000,000 5,000,000 - Mark Storey 1,000,000 1,000,000 - Stephen Goddard 200, ,000 - Online Brands Pty Ltd 33,615,000 10,197,223 5,476,837 Online Brands 2 Pty Ltd 6,885,000-6,885,000 Pacific Custodian 3,400,000 3,400,000 -

34 Cash flows from operating activities Loss for the period (47,277) Adjustments for: Depreciation 17(a) 684 Amortisation 18(a) 2,858 Equity-settled share-based payment transactions 10 1,390 Impairment expense 19,702 Income tax expense 13 (3,583) Loss on disposal of property, plant and equipment 376 Loss on disposal of intangible assets 1,334 Net foreign currency losses 10 Net finance income (131) (24,637) Changes in: Trade and other receivables 6,818 Inventories 5,214 Other assets 105 Trade and other payables (5,996) Employee benefits (542) Provisions 816 Deferred income 383 (17,839) Interest paid (7) Net cash from operating activities (17,846) In dollars Note 2015 Audit and review services Auditors of the Company - KPMG Audit and review of financial statements 361,850 Other auditors Audit and review of financial statements 6,666 Other services Auditors of the Company - KPMG In relation to other assurance, taxation and due diligence services 954,691

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36 (a) Statement of profit or loss and other comprehensive income In thousands of dollars 2015 Revenue 47,090 Cost of sales (33,548) Gross profit 13,542 Other income 25 Selling and distribution expenses (23,959) Administrative expenses (7,678) Impairment expense (19,702) Other expenses (7,471) Finance income 807 Finance costs (6) Loss before tax (44,442) Income tax benefit 994 Loss after tax (43,448) Other comprehensive income for the period, net of tax 700 Total comprehensive loss for the period, net of tax (42,748) Attributable to: Equity holders of the Company (42,748) Loss for the period (42,748)

37 (b) Statement of financial position In thousands of dollars 2015 Current assets Cash and cash equivalents 35,197 Trade and other receivables 461 Related party receivables 19,037 Inventories 11,063 Other assets 865 Total current assets 66,623 Non-current assets Deferred tax assets 3,400 Property, plant and equipment 1,615 Intangible assets 4,184 Investment in subsidiaries 70,197 Goodwill 24,433 Total non-current assets 103,829 Total assets 170,452 Current liabilities Trade and other payables 12,516 Related party payables 983 Employee benefits 1,060 Income tax provision 989 Provisions 1,165 Deferred income 278 Total current liabilities 16,991 Non-current liabilities Employee benefits 123 Deferred tax liabilities 187 Total non-current liabilities 310 Total liabilities 17,301 Net assets 153,151 Equity Share capital 248,325 Reserves (51,726) Retained earnings (43,448) Total equity 153,151

38 (a) Result of parent entity (b) Statement of financial position of parent entity

39 (c) Parent entity contingent liabilities (d) Parent entity capital commitments for acquisition of property plant and equipment (e) Parent entity guarantees in respect of the debts of its subsidiaries

40 Shareholder Number of ordinary shares held Ausbil Investment Management Limited 21,292,218 Janchor Partners Limited 17,657,139 Justin Peter Cameron 17,398,223 Perpetual Limited and subsidiaries 17,176,462 UBS Group AG and its related bodies corporate 16,783,000 Lex Ward Pedersen 16,397,223 Quest Asset Partners Pty Ltd 13,522,973 Challenger Limited (and entities) 13,500,000

41 Category Ordinary shares Rights 1-1, ,001-5, ,001-10, , , ,001 and over 90 5 Total 1, Category Number of shares Escrow period ending Founders 22,997,223-11,498,612 11,488,611 Third party shareholders 90,518,750 45,259,381 45,259,369 - Total securities subject to voluntary escrow 113,515,973 45,259,381 56,757,981 11,498,611

42 National Nominees Limited 35,215, % J P Morgan Nominees Australia Limited 26,286, % HSBC Custody Nominees (Australia) Limited 25,308, % Citicorp Nominees Pty Limited 20,535, % National Nominees Limited 13,921, % Justin Paul Towells Stone 11,225, % Online Brands Pty Limited 10,197, % RBC Investor Services Australia Nominees Pty Limited 9,513, % Citicorp Nominees Pty Limited 8,079, % Argo Investments Limited 6,750, % Justin Peter Cameron 6,000, % Lex Ward Pedersen 5,000, % Merrill Lynch (Australia) Nominees Pty Limited 4,875, % BNP Paribas Noms Pty Limited 2,852, % RBC Investor Services Australia Nominees Pty Limited 2,650, % Pacific Custodians Pty Limited 2,600, % UBS Wealth Management Australia Nominees Pty Limited 2,499, % J P Morgan Nominees Australia Limited 2,328, % UBS Nominees Pty Limited 2,298, % HSBC Custody Nominees (Australia) Limited 2,124, % Company secretary Registered office Share registry For personal use onlyshareholder Number of ordinary shares held Percentage of capital held

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