Donaco International Limited / 2017 Annual Report Donaco International Limited / 2017 Annual Report 76 77 77 Donaco International Limited / 2017 Annual Report Donaco International Limited / 2017 Annual Report 76 Notes to the Financial Statements for the year ended 30 June 2017 Notes to the Financial Statements for the year ended 30 June 2017 Note 36. Reconciliation of profit after income tax to net cash from operating activities Dividend On 29 August 2017, the Board of Donaco International Limited has announced that it intends to declare an ordinary dividend of 0.5 cents per share, amounting to $4,156,057. The dividend is 100% conduit foreign income and is unfranked. Proposed dates for the dividend payment are: ex-dividend date, 5 October 2017; record date, 6 October 2017; and payment date, 20 October 2017. Refinance of loan with Mega International Commercial Bank Co. Limited The Company announced to the ASX on 15 August 2017 that it has refinanced its loan facility with Mega International Commercial Bank Co. Limited of Taiwan (Mega Bank). Of the original USD100 million term loan facility with Mega Bank drawn down in July 2015 and the additional USD20 million drawn down in July 2016, the Company has repaid a total of USD63.4 million in the past two years, with the remaining principal amount of the previous facility standing at USD56.6 million. The previous facility had a three-year term, with the remaining USD56.6 million being repayable within the next 12 months. This consisted of USD20.8 million repayable in January 2018, and the remaining USD35.8 million repayable in July 2018. The new facility will be for an amount of USD57 million. The term has been extended to three years from the date of drawdown, which occurred on 28 August 2017, following the completion of the conditions precedent. Under the new loan, 15% of the principal amount is repayable every six months. This means that the next principal repayment has been reduced to approximately USD8.6 million, due in February 2018. The interest rate on the loan has also been reduced slightly, from a margin of 6.75% over the six month LIBOR rate, to a margin of 6.0%, provided that the net debt (total borrowings minus cash) of Donaco Hong Kong Limited is less than the EBITDA of Donaco Hong Kong Limited. If net debt exceeds EBITDA, then the margin may increase to a maximum of 6.5%. In addition, a number of covenants controlling capital management (dividends and buybacks) have been relaxed, but there are still some restrictions in place until the remaining principal falls below USD50 million, which is expected to occur following the next repayment in February 2018. Share options On 28 July 2017, the Company announced the expiration of 1,651,883 options on 1 July 2017 in accordance with their terms. The options were part of the FY14 option series. Currently, there are 5,444,810 remaining options on issue. No other matter or circumstance has arisen since 30 June 2017 that has significantly affected, or may significantly affect the consolidated entity’s operations, the results of those operations, or the consolidated entity’s state of affairs in future financial years. Note 35. Events after the reporting period Consolidated 2017 2016 $ $ Profit after income tax expense for the year 31,189,049 78,873,384 Adjustments for: Depreciation and amortisation 10,129,299 9,945,976 Impairment of assets 198,785 – Net loss/(gain) on disposal of non-current assets – 167,630 Gain on bargain purchase – (55,165,316) Share-based payments 273,716 1,666,185 Foreign exchange movements – (680,309) Expenses related to acquisition – 11,819,338 Non-cash finance costs 8,037,166 5,598,067 Gain on revaluation of derivative financial liability (1,113,012) (2,609,339) Change in operating assets and liabilities: Decrease/(increase) in trade and other receivables 5,581,440 (21,943,702) Decrease/(increase) in inventories 525,402 (718,010) Decrease/(increase) in other operating assets 38,057 (1,949,631) (Decrease)/increase in trade and other payables (7,587,488) 23,690,460 (Decrease)/increase in provision for income tax (432,382) 1,132,643 Increase in provisions for employee benefits 515,367 173,419 Net cash from operating activities 47,355,398 50,000,795