Billabong : Half Year Accounts to 31 December 2015 / Appendix 4D

Microsoft Word - 31 DEC 2015_Half-year interim report_with signatures 260216

Billabong International Limited ABN 17 084 923 946

Contents Page

Appendix 4D 2

Directors' report 3

Auditor's independence declaration 9

Income statement 10

Statement of comprehensive income 11

Balance sheet 12

Statement of changes in equity 14

Cash flow statement 15

Notes to the financial statements 16

Directors' declaration 32

Independent auditor's review report to the members 33

: : INTERIM FINANCIAL REPORT

31 DECEMBER 2015

This interim financial report does not include all notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the Annual Report for the year ended 30 June 2015 and any public announcements made by Billabong International Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

Billabong International Limited is a Company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is:

1 Billabong Place, Burleigh Heads Qld 4220 For queries in relation to reporting please call

+61 7 5589 9899 or email: secretary@billabong.com.au

Corporate website: www.billabongbiz.com

APPENDIX 4D

Half-yearly Report

Billabong International Limited ABN 17 084 923 946

Extracts from this report for announcement to the market.

Total revenue from ordinary activities (Loss)/profit from ordinary activities after tax attributable to members Net (Loss)/profit for the period attributable to members	Half-year
	2015	2014	Change
	$'000	$'000	$'000 %
	565,440	541,148	24,292	4.5%
	(1,587)	25,712	(27,299)	n/a
	(1,587)	25,712	(27,299)	n/a

Dividends	Amount per Security	Franked amount per security
Interim dividend Previous corresponding period interim dividend	0.0 cents 0.0 cents	0.0 cents 0.0 cents

The Board has not declared an interim ordinary dividend for the half-year ended 31 December 2015. The Dividend Reinvestment Plan (DRP) remains suspended.

NTA backing	Half-year 2015	Half-year 2014
Net tangible asset backing per ordinary share	$0.54	$0.81

Explanation of Results

Please refer to the Operating and Financial Review within the Directors' Report for an explanation of the results.

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 half-year ended 31 December 2015.

Directors

The following persons were Directors of Billabong International Limited during the whole of the half-year and up to the date of this report:

I. Pollard

N. Fiske

G.S. Merchant

H. Mowlem

J. Mozingo

S.A.M Pitkin

A. Doshi (Alternate to J. Mozingo)

M. Wilson was a Director from the beginning of the financial period until his resignation on 8 September 2015.

T. Casarella was an Alternate Director to M. Wilson from the beginning of the financial period until his resignation on 8 September 2015.

Operating and Financial Review Group financial performance

The Group results for the period and the prior corresponding period ("pcp") include certain significant items. Refer to note 4

of the half-year financial report for detailed disclosure in relation to these items.

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, the segment results are presented in two separate tables.

Table A presents the segment results on a basis including all significant items and including the operations of SurfStitch and Swell in the pcp 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 the pcp). See Table B "Adjusted Segment Results - Continuing Operations As Reported - Excluding significant items and discontinued operations".

Operating and Financial Review (continued)

Table A: Segment Results As Reported - Including significant items and discontinued operations

Segment revenues Segment EBITDAI*

2015	2014	2015	2014
$'000	$'000	$'000	$'000
243,904	246,820	29,525	16,942
219,926	200,722	(3,693)	8,440
98,045	89,964	7,575	26,675
1,833	1,683	1,833	1,683
563,708	539,189	35,240	53,740
ited		(16,320) (16,818)	(17,348)
			(13,396)
		2,102	22,996
		(3,689)	1,118
		(1,587)	24,114
		---	1,598
		(1,587)	25,712

Asia Pacific Americas Europe

Third party royalties

Segment revenues / EBITDAI*

Less: Depreciation and amortisation Net interest expense

Profit before income tax expense Income tax expense/(benefit) (Loss)/profit after income tax expense

Loss attributable to non-controlling interests

(Loss)/profit attributable to members of Billabong International Li

* 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

2015 Excluding significant items $'000 29,602 (1,902) 7,665 1,833	2014 Excluding significant items and discontinued operations* $'000 31,489 5,051 4,586 1,683
37,198 (16,320) (16,818)	42,809 (16,690)
4,060 (5,889)
(1,829)

Adjusted EBITDAI by Segment:

Asia Pacific Americas Europe

Third party royalties Adjusted EBITDAI

Less: Depreciation and amortisation Net interest expense

Adjusted net profit before income tax expense Adjusted income tax expense

Adjusted net loss attributable to members of Billabong International

Limited

* Excludes SurfStitch and Swell.

The Group results for the period and the pcp include certain significant items. Refer to note 4 of the half-year financial report for detailed disclosure in relation to these items.