KPMG EEFF 2020

Example
Public
Company
Limited
Guide to annual reports-
illustrative disclosures
2020-2021
October 2020
KPMG.com.au
b | Example Public Company Limited
INTRODUCTION
Transparency is key to confidence

In what has been a turbulent and unpredictable year, the coronavirus (COVID-19)
pandemic continues to impact corporate Australia’s ability to operate and has
resulted in economic slowdown and uncertainties. Unsurprisingly, the focus of
ASIC and users of the financial statements has swung from the impact of new
accounting standards to the impact of COVID-19, the myriad of financial reporting
considerations that this brings along with providing a clear and contextual story
in the Operating Financial Review. We anticipate this focus will continue into
forthcoming annual reporting periods.
ASIC has emphasised how critical the quality of financial reports and related
Australian content
disclosures will be to maintain confident and informed markets.

In such unprecedented times, communicating effectively has never been more
important – disclosures in the Operating Financial Review should be specific
to the circumstances of the entity, explain the business impacts and drivers
of the results and financial position, as well as the strategies employed by
management, future prospects and risks. The use of non-IFRS performance
measures to segregate the impact of significant items requires thoughtful
consideration to avoid presenting information which is potentially misleading.
In the financial report, explaining the judgements made and the estimates
used in making them has become even more paramount. Many entities are
facing residual uncertainty around future economic and market conditions, and
operational performance. Uncertainties may lead to a wider range of reasonable
assumptions informing estimates of asset and liability values, or the assessment
Primary statements
of whether an entity is a going concern. Useful and meaningful disclosures about

significant judgements and sources of estimation uncertainty, including key
assumptions and sensitivities will be vital to stakeholders.
Our accompanying COVID-19 supplement, presents a suite of disclosures which
illustrate how an entity may communicate the accounting issues arising from
COVID-19 in the financial statements. ASIC has also released a series of FAQs
on COVID-19 implications for financial reporting and audit which entities should
consider when preparing their financial report and Operating Financial Review.
In addition, our Australian and Global COVID-19 financial reporting resource
centres provide relevant guidance on both the accounting and disclosure
impacts of COVID-19.
A summary of the newly effective accounting and regulatory requirements for
this period are set out on our What’s new? page. With few new or amended
standards and regulatory requirements effective this year, we encourage
entities to take this opportunity to perform a post implementation review of
Notes
their lease disclosures as well as key estimates and judgement disclosures

to assess whether they satisfy users’ needs and expectations.
Once again, due to Australia’s close alignment to IFRS® Standards, we have made
minimal changes to the source document prepared by our international colleagues
and have built the Australian-specific disclosures around that International guide.
The navigation bookmarks and links will assist you to identify the changes and
disclosures you need.
We trust you will find Example Public Company Limited Guide to annual
reports – illustrative disclosures a useful reference in your annual report
preparation. For further information on the contents of this publication or
for assistance in the application of Australian accounting standards, please
Appendices
contact your KPMG professional.
Andrew Yates
National Managing Partner – Audit, Assurance and Risk Consulting
© 2020 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English
company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.
Liability limited by a scheme approved under Professional Standards Legislation.
|c
INTRODUCTION
How to use this guide
The purpose of this publication is to help you in preparing annual financial reports in accordance
with Australian Accounting Standards, which are International Financial Reporting Standards (IFRS
Standards) developed by the International Accounting Standards Board (IASB® Board) as adopted
by the AASB for for-profit entities.
It illustrates one possible format for financial statements for a fictitious multinational corporation
involved in general business (Example Public Company Limited).
This publication relates to both annual financial years ending 31 December 2020 and 30 June 2021 and
reflects standards and interpretations that have been issued by the AASB as at 31 August 2020 and that
are required to be applied by an entity with an annual period beginning on 1 January 2020 and 1 July 2020
(‘currently effective requirements’). The early adoption of standards or amendments to standards that are
Australian content
effective for annual periods beginning after 1 January 2020 (‘forthcoming requirements’) is not illustrated.
Although it is not exhaustive, this guide illustrates the disclosures required by IFRS Standards for one
hypothetical corporation, merely for illustrative purposes and, as such, largely without regard to materiality.
This guide should not be used as a boilerplate template. The preparation and presentation of financial
statements require the preparer to exercise judgement, in terms of the choice of accounting policies,
the ordering of notes to the financial statements, how the disclosures should be tailored to reflect the
entity’s specific circumstances, and the relevance of disclosures considering the needs of the users.
Navigating this guide

If you are using this guide for the first time:
Given Australia’s close alignment to IFRS Standards, a substantial portion of Example Public Company
Limited has been based on the illustrative disclosures publication prepared by our international
Primary statements
colleagues based on ‘pure’ IFRS Standards.
However to illustrate additional Australian specific disclosure and alternative presentation methods that
are commonly used in Australia, a separate section, has been included, just before the main financial
statements. A clear cross-reference to the Australian section is included on affected international pages.
Australian specific disclosure is shown in section one Australian content
Illustrative disclosure based on IFRS Standards is shown in section two Guide to annual financial
statements.
This hypothetical corporation (the ‘Group’) used in this publication has been applying the Standards
for some time – i.e. it is not a first-time adopter. If you are preparing your first set of annual financial
statements, that include an explicit and unreserved statement of compliance with IFRS Standards, you
are considered a first time adopter. For more information on first time adoption, see Chapter 6.1 in the
17th edition 2020/21 of our publication Insights into IFRS.
If you are recurring user of this guide:
We direct you to our What’s new page, which contains a summary of all new or revised accounting Notes
standards and regulatory changes that have been reflected in Example Public Company Limited since
the previous edition of this guide and references to other resources in the guide that you might find
useful to your financials statement preparation for the current period.
Materiality considerations
Materiality is relevant to the presentation and disclosure of the items in the financial statements.
Preparers need to consider whether the financial statements include all of the information that
is relevant to understanding an entity’s financial position at the reporting date and its financial
performance during the reporting period.
Preparers also need to take care not to reduce the understandability of an entity’s financial statements
by obscuring material information with immaterial information or by aggregating material information that
is different by nature or function. Individual disclosures that are not material to the financial statements
do not have to be presented – even if they are a minimum requirement of a standard. Preparers need
Appendices
to consider the appropriate level of disclosure based on materiality for the reporting period.
Specific guidance on materiality and its application to the financial statements is included in paragraphs
29–31 of AASB 101 Presentation of Financial Statements. In addition Making Materiality Judgements
(AASB Practice Statement 2) provides practical guidance on how to apply the concept of materiality in
the preparation of financial statements.
d | Example Public Company Limited
INTRODUCTION
Further KPMG guidance

We also have a number of accompanying tools and
publications that can be used to assist you in the
preparation of your annual report and helping you to KPMG Australia Financial
report financial information in the most meaningful way. Reporting and Accounting
These materials and more, can be accessed from our Standards
Financial statements preparation site, which contains
a number of other valuable references and resources.
Keeping in touch
Australian content
Follow ‘KPMG IFRS’ on LinkedIn or visit kpmg.com/ifrs

for the latest on IFRS Standards. KPMG Global IFRS Institute
Whether you are new to IFRS Standards or a current user,

you can find digestible summaries of recent developments,
detailed guidance on complex requirements, and practical
tools such as illustrative disclosures and checklists.
Australian Topics
Accounting & Australian Reporting Updates

Reporting
Webinars
Primary statements
Standards IFRIC agenda

on issue decisions
Financial Leases
Instruments
Notes
Revenue Financial
reporting
impacts of
COVID-19
Climate Change Better business

& Sustainability reporting
Appendices
|e
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INTRODUCTION
Australian content
Primary statements
Notes
Appendices
f | Example Public Company Limited – illustrative disclosures
Contents
Transparency is key to confidence b
How to use this guide c
Further KPMG Guidance d
What’s new? 2
References and abbreviations 4
Australian content 5
Corporate governance statement 7
Directors’ report 10
Notes to the consolidated financial statements 40
Directors’ declaration 49
ASX additional information 50
Voluntary tax disclosures – Part A 53
Guide to annual financial statements 56

Consolidated statement of financial position 58
Consolidated statement of profit or loss, and

other comprehensive income 60
Consolidated statement of changes in equity 64
Consolidated statement of cash flows 66
Appendices 228
I New standards or amendments for 2020-21
and forthcoming requirements 228
II Presentation of comprehensive income –

Two‑statement approach 230
III Statement of cash flows – Direct method 232
IV Other disclosures not illustrated in the

consolidated financial statements 233
Keeping in touch 240
© 2020
© 2020 KPMG,
KPMG, an
an Australian
Australian partnership
partnership and
and aa member
member firm
firm of
of the
the KPMG
KPMG global
global organisation
organisation of
of independent
independent member
member firms
firms affiliated
affiliated with
with KPMG
KPMG International
International Limited,
Limited, aa private
private English
English
company
company limited
limited by
by guarantee.
guarantee. All
All rights
rights reserved.
reserved. The
The KPMG
KPMG name
name and
and logo
logo are
are trademarks
trademarks used
used under
under license
license by
by the
the independent
independent member
member firms
firms of
of the
the KPMG
KPMG global
global organisation.
organisation.
Example Public Company Limited – Illustrative disclosures | 1
Notes
Basis of preparation 68 Other information 193

1. Reporting entity 68 37. Loan covenant waiver 193
2. Basis of accounting 68 38. Leases 194
3. Functional and presentation currency 68 39. Commitments 197
4. Use of judgements and estimates 68 40. Contingencies 197
5. Changes in significant accounting policies 71 41. Related parties 198
42. Subsequent events 201
Performance for the year 72
6. Operating segments 72 Accounting policies 202
7. Discontinued operation 81 43. Basis of measurement 202
8. Revenue 83 44. Correction of errors 203
9. Income and expenses 89 45. Significant accounting policies 204
10. Net finance costs 90 46. Standards issued but not yet effective 226
11. Earnings per share 91
Australian content 40
Employee benefits 93 1. Reporting entity 40
12. Share-based payment arrangements 93 2. Basis of accounting 40
13. Employee benefits 96 3. Functional and presentation currency 40
26. Capital and reserves 41
Income taxes 101
47. Reconciliation of cash flows
14. Income taxes 101 from operating activities 42
Alternative performance measure 108 48. Auditors’ remuneration 43
15. Adjusted EBITDA – Not used in Australian 49. Deed of cross guarantee 44
context 108 50. Parent entity disclosures 47
Assets 109
16. Biological assets 109
17. Inventories 113
18. Trade and other receivables 114
19. Cash and cash equivalents 115
20. Disposal group held for sale 116
21. Property, plant and equipment 118
22. Intangible assets and goodwill 121
23. Investment property 126
24. Equity-accounted investees 128
25. Other investments, including derivatives 131
Equity and liabilities 132
27. Capital management 136
28. Loans and borrowings 137
29. Trade and other payables 144
30. Deferred income/revenue 145
31. Provisions 146
Financial instruments 148
32. Financial instruments – fair values
and risk management 148
Group composition 185
33. List of subsidiaries 185
34. Acquisition of subsidiary 186
35. Non-controlling interests 190
36. Acquisition of NCI 192
© 2020
© 2020 KPMG,
KPMG, anan Australian
partnership and
and aa member
member firm
firm of
of the
the KPMG
KPMG global
global organisation
organisation of
of independent
independent member
member firms
firms affiliated
affiliated with
with KPMG
KPMG International
Limited, aa private
private English
English
company limited
company limited by
by guarantee.
guarantee. All
All rights
rights reserved.
reserved. The
The KPMG
KPMG name
name and
and logo
logo are
are trademarks
trademarks used
used under
under license
license by
by the
the independent
independent member
member firms
firms of
of the
the KPMG
KPMG global
organisation.
2 | Example Public Company Limited
INTRODUCTION
What’s new?
The following Standards are effective for the first time for annual reporting periods ending
31 December 2020 and 30 June 2021:
Australian Accounting Standards
Amendments to Australian Accounting Standards - References to Conceptual Framework1
Definition of Material (Amendments to AASB 101 and AASB 108)
Definition of a Business (Amendments to AASB 3)

Australian content
Interest Rate Benchmark Reform (Amendments to AASB 9, AASB 139 and AASB 7)
Disclosure of the Effect of New IFRS Standards Not Yet Issued in Australia (Amendments to
AASB 1054)
Except for Interest Rate Benchmark Reform – Amendments to AASB 9, AASB 139 and AASB 7 and
Definition of a Business – Amendments to AASB 3, the Group has no transactions that are affected
by the newly effective standards or its accounting policies are already consistent with the new
requirements. As such, only these new requirements are illustrated in this guide – see Note 5 and
Note 32C(iv).
In addition to the Standards listed above, Covid-19-Related Rent Concessions (Amendments to
AASB 16) is effective for annual reporting periods beginning 1 June 2020, with earlier application
permitted. Our accompanying COVID-19 supplement provides illustrative disclosures relating to
Primary statements
the application of this amendment.

Throughout the guide, major changes since the previous edition of this guide are highlighted as
follows:
Changes effective for the first time for BOTH annual reporting periods ending 31 December
2020 and 30 June 2021 are highlighted by a double black line running down the left margin of the
text. The double black line in the left margin also highlights major changes in terms of what was
illustrated in the 2020 edition of this guide.
Standards issued but not yet effective

Appendix I provides a comprehensive list of all of the new Standards, distinguishing between those
that are effective for an entity with an annual period beginning on 1 January 2020 and those with a
later effective date.
Notes
Appendices
1 For publicly accountable for-profit entities, the revised Conceptual Framework for Financial Reporting is effective for
annual reporting periods beginning on or after 1 January 2020.
What’s New? | 3
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INTRODUCTION
Australian content
Primary statements
Notes
Appendices
INTRODUCTION
References and abbreviations

References are included in the left margin of this guide to identify their sources. Generally, the
references relate only to presentation and disclosure requirements.
IAS 1.82(a) Paragraph 82(a) of IAS 1.

[IAS 16.41] Paragraph 41 of IAS 16. The square brackets are used only in Note 45 to the
financial statements (significant accounting policies) to indicate that the
paragraph relates to recognition and measurement requirements, as opposed
to presentation and disclosure requirements.
Insights 2.3.60.10 Paragraph 2.3.60.10 of the 17th edition 2020/21 of our publication
Australian content
Insights into IFRS.

Items with the following marking down the left margins have this significance.
In the context of consolidated financial statements, the disclosures in respect

of operating segments (Note 6) and EPS (statement of profit or loss and other
comprehensive income (OCI), and Note 11) apply only if the parent:
– has debt or equity (operating segments) or ordinary shares/potential ordinary
shares (EPS) that are traded in a public market – i.e. a domestic or foreign
stock exchange or an over-the-counter market, including local and regional
markets; or
– files, or is in the process of filing, its financial statements with a securities
commission or other regulatory organisation for the purpose of issuing any
class of instruments in a public market.
Primary statements
Major changes since the 2019-20 edition of this guide.
The following abbreviations are used often in this guide.

AASB Australian Accounting Standards issued by the AASB. The AASB Accounting
Standards numbering convention is as follows:
– AASB 1 – AASB 17 represent Accounting Standards issued by the AASB
equivalent to an IFRS Standard issued by the IASB Board (AASB 1 is the
Australian equivalent to IFRS 1);
– AASB 101 onwards represent Accounting Standards issued by the AASB
equivalent to an IAS® Standard issued by the IASB Board (AASB 136 is the
Australian equivalent to IAS 36); and
– AASB 1004 onwards are those domestic Australian Accounting Standards
for which there are no equivalent IFRS Standards.
ASIC Australian Securities and Investments Commission Regulatory Guides (RG),
Notes
Corporations Instruments (Instrument) and Class Orders (CO)

ASX ASX Limited – Official Listing Rules. This refers to information which must be
included in the annual report
ASX Appendix ASX Limited – Appendix 4E. This refers to information that must be disclosed in
the Preliminary Final Report. There is no requirement for this information to be
disclosed in the annual report
IAS® Standards International Accounting Standards issued by the predecessor of the IASB
Board, the International Accounting Standards Committee, and amended by
the IASB Board
IFRIC® Interpretations of the IFRS Interpretations Committee
IFRS Standards International Financial Reporting Standards
Appendices
IU IFRS Interpretations Committee publication IFRIC Update

Reg Corporations Regulations 2001
S Section, Corporations Act 2001
Example Public Company Limited | 5
Australian content
Corporate governance statement 7
Directors’ report 10
Consolidated statement of financial position 32
Consolidated statement of profit or loss

and other comprehensive income 34
Consolidated statement of changes in equity 36
Consolidated statement of cash flows 38

1. Reporting entity 40
2. Basis of accounting 40
3. Functional and presentation currency 40
47. Reconciliation of cash flows from

operating activities 42
48. Auditors’ remuneration 43
49. Deed of cross guarantee 44
50. Parent entity disclosures 47
Directors’ declaration 49
ASX additional information 50
Voluntary tax disclosures: Part A 53
© 2020
© 2020 KPMG,
partnership and
and aa member
member firm
firm of
of the
the KPMG
KPMG global
global organisation
organisation of
of independent
independent member
member firms
firms affiliated
affiliated with
with KPMG
KPMG International
Limited, aa private
private English
English
company limited
company limited by
by guarantee.
guarantee. All
All rights
rights reserved.
reserved. The
The KPMG
KPMG name
name and
and logo
logo are
are trademarks
trademarks used
used under
under license
license by
by the
the independent
independent member
member firms
firms of
of the
the KPMG
KPMG global
organisation.
Annual Financial Report

Example Public Company Limited
S153-S155 ABN 14 004 152 682

Reg 1.0.07
30 June 2021
© 2020
© 2020 KPMG,
KPMG, an
an Australian
partnership and
and aa member
member firm
firm of
of the
the KPMG
KPMG global
global organisation
organisation of
of independent
independent member
member firms
firms affiliated
affiliated with
with KPMG
KPMG International
Limited, aa private
private English
English
company
company limited
limited by
by guarantee.
guarantee. All
All rights
rights reserved.
reserved. The
The KPMG
KPMG name
name and
and logo
logo are
are trademarks
trademarks used
used under
under license
license by
by the
the independent
independent member
member firms
firms of
of the
the KPMG
KPMG global
organisation.
Corporate governance statement | 7
Corporate governance statement
Introduction
The Corporate Governance Principles and Recommendations (Principles and Recommendations)
apply to all ASX listed entities, regardless of its legal form (i.e. company, managed investment
scheme or stapled entity), whether it was established in Australia or whether it is internally or
externally managed. Whilst the Principles and Recommendations are designed to achieve good
corporate governance outcomes and meet reasonable investor expectations, the ASX Corporate
Governance Council acknowledges that different entities may legitimately adopt a range of
corporate governance practices.
As such, the Principles and Recommendations are not mandatory for listed entities nor do they
prescribe practices that an entity must adopt. However, where the Board of a listed entity chooses
AUSTRALIAN CONTENT
not to follow a particular recommendation, it must explain why – the ‘if not, why not’ approach –
including the period for which a recommendation was not followed, explanation and any alternative
governance practices adopted in lieu. Where a particular recommendation has been followed for
only part of the year, the part of the year for which it has been followed must be disclosed. It is not
sufficient to state that there have been no changes to the practices previously reported.
Corporate Governance Principles and Recommendations (Fourth Edition)
A listed entity has flexibility to make its corporate governance disclosures on its website or in its
annual report. Where an entity chooses to provide its corporate governance statement on its website,
it must lodge a copy of the statement at the same time the annual report is lodged with the ASX,
thus ensuring the ASX has a permanent record at its effective date each year, regardless of an entity’s
website changes (Listing Rule 4.7.4). In addition, the annual report needs to include the website
address of where the corporate governance statement can be found.
The corporate governance statement must also specify the date at which it is current (which must be
the entity’s balance date or later) and state that it has been approved by the board.
Primary statements
The Principles and Recommendations reflect a ‘best practice’ view of appropriate corporate
governance standards that other entities may find useful when framing its own corporate governance
policies and practices.
The 4th edition of the Principles and Recommendations is mandatory for entities with financial
years ending on or after 31 December 2020. The key changes compared to the previous version
included in the update address emerging issues around culture, values and trust. Changes to
Principle 3 shift the focus from the individual obligation to act ethically, to broader accountability
for the organisation’s culture and the entity’s interface with the community. This is aligned with
the focus on culture of ASIC, APRA and the Hayne Royal Commission.
The 4th edition also adds a new corporate reporting recommendation which will require boards
to re-think their reporting strategies, portfolios and approach to ensuring the integrity of their
corporate reports. Recommendation 4.3 singles out integrated reporting principles as a basis for
producing a stand-alone report or the directors’ report, including the OFR, in the annual report.
Notes
Appendices
Appendix 4G
Introduction
Appendix 4G Key to disclosures Corporate Governance Council Principles and Recommendations

identifies and locates corporate governance disclosures by providing a key to where each can be
found; and to assist entities with its corporate governance disclosure obligations by providing a
documented verification process (Listing Rule 4.7.3).
A listed entity is required to complete and lodge an Appendix 4G at the same time it lodges its annual
report with the ASX.
Approach in Example Public Company Limited
There are a number of common disclosures required in the corporate governance statement by the
ASX Listing Rules and those required by the Corporations Act 2001 in the Directors’ report. To avoid
duplication, a clear cross-reference may be made from the corporate governance statement to the
AUSTRALIAN CONTENT
location of the disclosure in the Directors’ report. Alternatively, the directors’ report could include
components of the corporate governance statement by reference, provided the corporate governance
statement is included with the financial statements and it is permitted by ASIC Corporations
(Directors’ Report Relief) Instrument 2016/188 .
The corporate governance statement should not form part of the financial report upon which the
company’s auditor expresses an opinion, except to the extent that it includes an audited remuneration
report. This would only occur when the corporate governance statement is presented within the
Directors’ report, because the remuneration report required by S300A must be located in the
directors’ report.
As the facts and circumstances are specific to an entity as to how it has followed the Principles and
Recommendations, this publication does not include an illustrative corporate governance statement.
For those entities opting to provide their corporate governance statement on their website,
the example below illustrates how the corporate governance statement could be appropriately
referenced from the annual report to the entity’s website.
Primary statements
“Example Public Company Limited maintains the highest standards of corporate governance in
accordance with the ASX Corporate Governance Principles and Recommendations (4th edition).
For the financial year 30 June 2021, Example Public Company Limited’s Corporate Governance
Statement together with the ASX Appendix 4G as applicable to the Corporate Governance
Statement is available at examplepubliccompanylimited.com.au/CorporateGovernance and a copy
of the statement has been lodged with the ASX.“
Notes
Appendices
Example Public Company Limited | 9
Index to Directors’ report

1 Directors 10
2 Company secretary 11
3 Officers who were previously partners of the audit firm 11
4 Directors’ meetings 11
5 Principal activities 12
6 Operating and financial review 13
7 Dividends 14
8 Events subsequent to reporting date 15
9 Likely developments 15
10 Environmental regulation 16
11 Directors’ interests 16
12 Share options 17
13 Indemnification and insurance of officers and auditors 18
14 Non-audit services 20
15 Modification of auditor rotation requirements 21
16 True and fair view 21
17 Proceedings on behalf of the Company 21
18 Lead auditor’s independence declaration 21
19 Rounding off 21
20 Remuneration report – audited 22
© 2020
© 2020 KPMG,
partnership and
and aa member
member firm
firm of
of the
the KPMG
KPMG global
global organisation
organisation of
of independent
independent member
member firms
firms affiliated
affiliated with
with KPMG
KPMG International
Limited, aa private
private English
English
company limited
company limited by
by guarantee.
guarantee. All
All rights
rights reserved.
reserved. The
The KPMG
KPMG name
name and
and logo
logo are
are trademarks
trademarks used
used under
under license
license by
by the
the independent
independent member
member firms
firms of
of the
the KPMG
KPMG global
organisation.
Directors’ report
Introduction
For the year ended 30 June 2021

S292(1), S298(1), The directors present their report together with the consolidated financial statements of the Group
S299(2)
comprising of Example Public Company Limited (the Company) and its subsidiaries for the financial
year ended 30 June 2021 and the auditor’s report thereon.
S300(1)(c)
S300(1)(c),(10)(a)
1 Directors
The directors of the Company at any time during or since the end of the financial year areb:
S300(11)(e) Name, qualifications and c

AUSTRALIAN CONTENT
Experience, special responsibilities and other directorshipsc

independence status
Mr Frederick D Adair, AO B.Eng. Extensive knowledge of all the Company’s industries. Chairperson of EFT
Chairperson Limited since 2016, FORX Ltd since 2016, and Example Public Company
Independent Non-Executive Limited since 2012. Chairperson of Remuneration and Nomination
Director Committees. Director since 2014 – appointed chairperson 2018.
Mr Garry S Andrews, B.Eng. Extensive management and engineering experience in paper and mining
Chief Executive Officer industries in Australia and overseas. Director since 2010 – appointed
chief executive officer 2015.
Mr Benjamin Q Barton, B.Eng. Extensive experience in paper and packaging manufacturing. Formerly chief
Independent Non-Executive executive officer of Australian Paper Pack Limited, 2013 to 2018. A director of
Director Australian Containers Packaging Limited since 2016. Member of Nomination
and Audit Committees. Appointed 1 November 2020.
Ms Harriet W James, B.Com., CA, Extensive corporate finance expertise, and knowledge of the paper
A.R.E.S.I.(Vic.) manufacturing and forestry industries. Formerly chief executive officer
Independent Non-Executive of Pine Trees Limited, 2009 to 2018. Chairperson of Audit Committee.
Primary statements
Director Member of Remuneration Committee. Director since 2017.

Ms Kimberly Nguyen, Extensive corporate administration expertise and paper and mining industry
B.Sc.,A.A.I.M.M.,F.A.I.M. knowledge. Formerly chief executive officer of Eastern Paper Limited, 2011
Independent Non-Executive to 2019. Directorships include Deep Mines Limited and Pine Forest Limited
Director since 2012, ABC Energy Limited since 2014, New Packaging Limited since
2016, Mining Technologies Limited since 2014 and Example Public Company
Limited since 2013. Member of Nomination Committee. Director since 2017.
Mr Carlos C Martinez, B.Eng, Extensive engineering expertise and extensive knowledge of the packaging
Independent Non-Executive and paper manufacturing industries. Twenty-six years of experience
Director as a packaging equipment engineer in South America, South East Asia
and Australia. Member of Audit Committee (until 14 November 2020).
Director since 2016.
Mr Richard O Stephens, B.A., Extensive legal expertise and knowledge of the paper manufacturing
LL.B. and forestry industries. Formerly a practising solicitor for 30 years.
Non-Executive Director Other directorships include Australian Packaging Limited since 2014, and
RMG Energise Limited since 2016. Member of Nomination Committee
until retirement. Director since 2010. Retired as a director on 30 September
2020. Nominee of Example Investment Holdings (Australia) Limited.
Notes
Ms Veronica M Thomas, Extensive corporate administration and finance expertise. Twenty-five

B.Com., CPA years service in an accounting and management capacity. Member of
Independent Non-Executive Remuneration and Audit Committees. Director since 2019.
Director
S299(2) a. If consolidated financial statements are prepared, only the consolidated entity is reported on. Comparatives are only
required for the directors’ report when Regulation 2M.3.03 specifically requires comparatives (e.g. remuneration of key
management personnel).
Appendices
s201K(3) b. When an alternate director exercises the director’s powers, the exercise of the powers is just as effective as if the
powers were exercised by the director. Accordingly, if an alternate director has acted during the period, in our view all
relevant disclosures applicable to directors should be made for this person. No disclosure is required if the person did
not act in capacity of director during the period.
S300(11)(e) c. For listed entities, details of directorships of other listed companies held by the director at any time in the three years
immediately before the end of the financial year, and the period for which the directorship has been held must be
disclosed.
Directors’ report | 11
Directors’ report (continued)
Introduction
2 Company secretary
S300(10)(D) Ms Rachel M Parish BA, MBA, LLB was appointed to the position of company secretary in
ASX 4.10.10 July 2013. Ms Rachel M Parish previously held the role of compliance manager and company
secretary with another listed public company for five years, and prior to that worked as general
counsel to a listed entity, and as a solicitor with a major legal practice.
3 Officers who were previously partners of the audit firm
AUSTRALIAN CONTENT
S300(1)(ca) The following persons were officers of the Company during the financial year and were previously
S9 partners of the current audit firm, KPMG, at a time when KPMG undertook an audit of the Group:
– [insert names if applicable]
4 Directors’ meetings
S300(10)(b),(c) The number of directors’ meetings (including meetings of committees of directors) and number of
meetings attended by each of the directors of the Company during the financial year are:
Remuneration Nomination
Board Audit Committee Committee Committee
Director Meetings Meetings Meetings Meetings
ASX 12.7
ASX 12.8
A B A B A B A B
Mr F D Adair 7 7 – – 2 2 2 2
Primary statements
Mr G S Andrews 7 7 – – – – – –
Mr B Q Barton 2 2 2 2 – – 1 1
Ms H W James 7 7 4 5 1 2 – –
Ms K Nguyen 4 7 – – – – 2 2
Mr C C Martinez 7 7 3 3 – – – –
Mr R O Stephens 3 4 – – – – 1 1
Ms V M Thomas 6 7 5 5 2 2 – –
A – Number of meetings attended
B – Number of meetings held during the time the director held office during the year
Ms K Nguyen has only attended four of the seven directors’ meetings held during the financial
year due to illness.
Notes
Appendices

Introduction
5 Principal activities
S299(1)(C) The principal activities of the Group during the course of the financial year were the manufacture
IAS 1.138(b) and sale of paper and forestry (cultivation of pine trees and the sale of wood as well as related
services).
In November 2020, the Group sold its entire Packaging division, a separate reportable segment
(see Note 6 to the consolidated financial statements). The Group was committed to a plan to sell
this division due to a strategic decision to change the direction of the Group in late 2020.
AUSTRALIAN CONTENT
There were no other significant changes in the nature of the activities of the Group during the year.
G100 Guidance: 7 Objectives

RG 247.53-59
The Group’s objectives are to:
– increase the return on equity to 15 percent in the next financial year and to 20 percent by the
end of the 2023 financial year
– reduce the number of employee strike incidents in the next financial year
– improve the retention rate of our outstanding people resources to 85 percent by 30 June 2024
for those employees with five years or more service
– retain 90 percent of all customers on a year-to-year basis and increase customer satisfaction
with our service to an average rating of ‘high’ for all industry segments.
Primary statements
In order to meet these objectives the following targets have been set for the 2022 financial year
and beyond:
– grow market share for existing business and increase revenue and operating activities of at least
10 percent per annum
– reduce operating costs by five percent per annum over the next two years
– consider further strategic alliances through joint ventures to minimise the risks to the Group
– complete 90 percent of contracts within their target timeframe
– further develop the management team by establishing a leadership programme.
Notes
Appendices
Introduction
S299A(1) 6 Operating and financial reviewa

S299A(1)(A)
ASX 4.10.17
RG 247 Overview of the Group
[Insert details]
Shareholder returns
G100 Guidance:13,14
RG 230
2021 2020 2019 2018 2017
Profit attributable to owners of the
AUSTRALIAN CONTENT
company $7,055,000 $5,623,000 $2,447,000 $2,039,000 $1,700,000
Basic EPS $2.146 $1.694 $1.203 $1.172 $1.164
Dividends paid $1,243,000 $571,000 $310,000 $300,000 $300,000
Dividends per share 24.8c 4.8c 5.0c 4.5c 4.5c
Change in share price $0.15 $0.20 $0.10 $0.05 $0.05
Return on capital employed 35.1% 24.8% 9.2% 8.5% 8.6%
Net profit amounts have been calculated in accordance with Australian Accounting Standards.
Returns to shareholders increased through both dividends and capital growth. Dividends for 2020
were fully franked and it is expected that dividends in future years will continue to be fully franked.
Investments for future performance
G100 Guidance:15 [Insert details such as discussions on significant acquisitions of property, plant and equipment and
businesses during the year and reasons for these acquisitions]
Primary statements
G100 Guidance: Review of financial condition
19,22,24,28,29
RG 247.45-47
[Insert details such as discussions on capital structure and treasury policyb,c, liquidity and funding,
cash flows from operations, and the impact of legislation and other external requirements]
S299(1)(a), Review of principal businesses
G100 Guidance:10
RG 247.41-43 [Insert general information about operations and activities of the entity. This should include a
discussion on the underlying drivers of the entity’s performance]
S299A(1)(a),(b),(c)
Review of [each operating segment of the Group]
G100 Guidance:8,9
RG 247.43,58 [Insert details such as products, market, operating results and commentary thereon]
IFRS 8
Review of prospects for future financial yearsd
RG 247.61-66 [Insert details such as discussions of the entity’s prospects for future financial years accompanied
by discussions of material business risks that could adversely affect the achievement of the
financial prospects disclosed, taking into account the nature and business of the entity and its
business strategy]
S299(1)(b)
Significant changes in the state of affairs Notes
S299A(1)(a) [Insert details – Where the directors are of the opinion that there have been no significant changes
RG 247.45 in the state of affairs, the directors’ report might include the following wording:
In the opinion of the directors there were no significant changes in the state of affairs of the Group
that occurred during the financial year under review.]
a. Refer to: Regulatory Guide 247 Effective Disclosure in an operating and financial review for further guidance on
Operating and financial reviews.
b. Preparers should review the financial instrument disclosures in the directors’ report for consistency with the risk-
related disclosures required under IFRS 7 and IAS 1 in the notes to the financial statements.
IFRS 7.B6 c. The disclosures of the nature and extent of risks arising from financial instruments required by IFRS 7:31–42 may
be either given in the financial statements or incorporated by cross-reference from the financial statements to
some other statement, such as a management commentary or risk report, that is available to users of the financial
statements on the same terms as the financial statements and at the same time. Where the information is given in
Appendices
the other statement, the financial statements must incorporate a cross-reference to this information, otherwise, the
financial statements are incomplete.
d. The disclosure should include a discussion of environmental, social and governance risks where those risks
could affect the entity’s achievement of its financial performance or outcomes disclosed. Climate change risk
is another risk that could have a material impact on the future financial position, performance or prospects
of entities. Our publication Climate disclosures within the Annual Report: An Australian focus provides more
guidance to help entities communicate the impacts of climate on business models, strategy and performance
in annual reports and financial statements.

Introduction
S300(1)(a),(b) 7 Dividends
Dividends paid or declared by the Company to members since the end of the previous financial
year were:
Cents per Total amount

S300(1)(a)
Declared and paid during the year 2020 share $’000 Date of payment
Final 2020 ordinary 25.25 805 31 August 2020
Final 2020 preference 25.03 438 31 August 2020
AUSTRALIAN CONTENT
Total amount 1,243
S300(1)(b) Declared after end of year

After the balance sheet date the following dividends were proposed by the directors.
The dividends have not been provided and there are no income tax consequences.
Cents per Total amount

share $’000 Date of payment
Final ordinary 27.82 892 31 August 2021
Final preference 25.03 438 31 August 2021
Total amount 1,330
The financial effect of these dividends has not been brought to account in the consolidated
Primary statements
financial statements for the year ended 30 June 2021 and will be recognised in subsequent
financial reports.
Preference shares are classified as a liability and distributions paid are recognised as interest
expensea.
Dividends have been dealt with in the financial report as: Note $’000
Dividends 26(C) 1,243
a
Interest expense 28 51
Noted as a subsequent event 26(C) 1,330
Notes
Appendices
a. Distributions paid on shares presented as financial liabilities and recognised as interest expense need to be disclosed
under S300(1). The requirements of the Corporations Act 2001 override those of Accounting Standards. The potential
for confusion may be overcome by analysing the dividend disclosure contained in the directors’ report (or financial
report) between those amounts dealt with as a distribution of equity and any amounts accounted for as interest.
Introduction
S299(1)(d)
IAS 10.21 (a), (b)
8 Events subsequent to reporting datea
At the end of July 2021 the Group announced its intention to implement a cost-reduction
programme and to take further measures to reduce costs. Additionally, to enable the Group to
adapt its size to today’s market conditions, and the effects of the global recession, it is intended
to reduce the Group’s workforce by 400 positions worldwide by 30 June 2022, by means of
non-replacement wherever possible. The Group expects the restructuring associated with the
reduction in positions to cost $600,000 to $850,000 in the year ending 30 June 2022.
AUSTRALIAN CONTENT
Subsequent to 30 June 2021 one of the Group’s major trade customers went into liquidation
following a natural disaster in August 2020 that damaged its operating plant. Of the $100,000
owed by the debtor, the Group expects to recover less than $10,000. No allowance for
impairment has been made in the consolidated financial statements.
On 10 July 2021, one of the premises of Oy Kossu AG, having a carrying amount of $220,000, was
seriously damaged by fire. Surveyors are in the process of assessing the extent of the loss, following
which the Group will file a claim for reimbursement with the insurance company. The Group is unable
to estimate the incremental costs relating to refurbishment and temporary shift of production to
other locations (in excess of the reimbursement expected).
As reported in the condensed interim financial statements on 22 January 2021 the Group announced
its intention to acquire all of the shares of ABC Company for $6,500,000. On 4 July 2021 the Group’s
shareholders approved the transaction and the Group is now awaiting approval from regulatory
authorities before proceeding with the acquisition. Management anticipates that this approval will
Primary statements
be received by October 2021.
Subsequent to 30 June 2021, the loan covenant maximum leverage ratio (calculated as debt
to quarterly revenue for continuing operations) related to a secured bank loan was revised from
2.5 to 3.5 times.
On 23 September 2021, an increase in the Netherlands corporate tax rate from 25 to 30 percent
was substantively enacted, effective from 1 January 2022. This increase does not affect the
amounts of current or deferred income taxes recognised at 30 June 2021. However, this change
will increase the Group’s future current tax charge accordingly. If the new tax rate was applied to
calculate taxable temporary differences and tax losses recognised as at 30 June 2021, the effect
would be that net deferred tax assets would increase by $27,000.
Other than the matters discussed above, 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 likely, in the opinion of the directors of the Company, to affect significantly the
operations of the Group, the results of those operations, or the state of affairs of the Group,
in future financial years. Notes
S299(1)(e) 9 Likely developments

The Group will continue to pursue its policy of increasing the profitability and market share of its
major business sectors during the next financial year. This will require further investment in areas
such as manufacturing and sale of paper, which have performed well over recent years and offer
sound opportunities for future development.
The recently announced proposed acquisition of a further 30 percent interest in Paletel AG to bring
the Group’s interest in Paletel AG to 70 percent is likely to be finalised in the next financial year.
S299A(1)(c) Further information about likely developments in the operations of the Group and the expected
S299(3) results of those operations in future financial years has not been included in this report because
RG 247.76-78
disclosure of the information would be likely to result in unreasonable prejudice to the Group.
Appendices
IAS 10.21(a),(b) a. Preparers should ensure that events identified in the directors’ report are also included in a note to the financial
statements and vice versa. Refer to Note 42 in the consolidated financial statements.

Introduction
S299(1)(f)
RG 68
10 Environmental regulation
The Group’s operations are subject to significant environmental regulation under both Commonwealth
and State legislation in relation to its manufacture of paper and forestry activities.
The Group is committed to achieving a high standard of environmental performance. It has
established an Environmental Management Committee to focus on this area of operating
performance. The committee is responsible for the regular monitoring of environmental
exposures and compliance with environmental regulations.
AUSTRALIAN CONTENT
As part of this process the committee is responsible for:

– setting and communicating environmental objectives and quantified targets
– monitoring progress against these objectives and targets
– implementing environmental management plans in operating areas which may have a
significant environmental impact
– identifying where remedial actions are required and implementing action plans
– regular monitoring of licence requirements, with performance against licence conditions
reported to the various State regulators on a regular basis.
To enable it to meet its responsibilities, the committee has established a regular internal reporting
process. Environmental performance is reported from each site up through management to the
Primary statements
committee on a regular basis. On a quarterly basis the committee reports to the audit committee
who then report to the board on the Group’s environmental performance. Compliance with the
requirements of environmental regulations and with specific requirements of site environmental
licences was substantially achieved across all operations with no instances of non-compliance in
relation to licence requirements noted.
Based on the results of enquiries made, the board is not aware of any significant breaches during
the period covered by this report.
S300(11)(a)-(d)
S205G, S608, S609,
11 Directors’ interestsa
ASIC RG 5 The relevant interest of each director in the shares, debentures, interests in registered schemes
and rights or options over such instruments issued by the companies within the Group and other
related bodies corporate, as notified by the directors to the ASX in accordance with S205G(1) of
the Corporations Act 2001, at the date of this report is as follows:
Example Public Company Limited

Options over Rights over
Notes
Ordinary shares ordinary shares ordinary shares

Mr F D Adair 1,000 – –
Mr G S Andrews 33,280 200,000 80,000
Ms H W James 2,820 – –
Ms K Nguyen 5,000 – –
Appendices
S300 a. Although not specified, S300 should be read as if the information is to be disclosed as at the date of the directors’
report. This disclosure could be included in the remuneration report (see section 20.6). However, where the number
held at the date of the report differs to the number held at the reporting date, or the definition of ‘relevant interest’
results in a different number, all numbers will need to be disclosed.
Introduction
12 Share options
Unissued shares under optionsa, b
S300(1)(d), S300(5) All options were granted in previous financial years. No options have been granted since the end of
the previous financial year.
S300(1)(e)
S300(6) At the date of this report unissued shares of the Group under option are:
Expiry date Exercise price Number of
AUSTRALIAN CONTENT
shares
S300(1)(e)
S300(6)
1 July 2023 $10.00 200,000
1 July 2029 $10.50 200,000
400,000
All unissued shares are ordinary shares of the Company.

All options expire on the earlier of their expiry date or termination of the employee’s employment.
In addition, the ability to exercise the options is conditional on the Group achieving annual growth
in operating profit of at least five percent each year over three years. Further details about share-
based payments to directors and KMP are included in the remuneration report in section 20.
S300(6)(e)
These options do not entitle the holder to participate in any share issue of the Company or any
other body corporate.
Shares issued on exercise of options
Primary statements
S300(1)(f)
S300(7) During or since the end of the financial year, the Group issued ordinary shares of the Company as a
result of the exercise of options as follows (there are no amounts unpaid on the shares issued):
Number of shares Amount paid on each share

5,000 $10.00
Notes
a. Not all share options relate to remuneration schemes, for example, some may be as a result of consideration issued for
an acquisition. In this case, these disclosures are more appropriately located in a separate area of the directors’ report,
Appendices
other than the Remuneration report. Where the share options do relate to remuneration, duplication of disclosures is
not required. Where share options do relate to remuneration, entities should ensure that all required disclosures, both
those by the Corporations Act 2001 and those by the Corporations Regulations 2001, are provided.
S300(1)(d)(ii) b. Details of options that are granted to the 5 most highly remunerated officers of the company (other than directors) to
be disclosed. Where any of the 5 most highly remunerated officers of the company were not a KMP and were granted
options as part of their remuneration, details of options granted specified in s300(1)(d) are required to be separately
disclosed. Where these officers are KMP, such information would normally be included in the Remuneration report.

Introduction
S300(1)(g),(8)&(9) 13 Indemnification and insurance of officers and auditors

S199A, S199B
Indemnification
S300(8)(a) The Company has agreed to indemnify the following current directorsa of the Company,
S300(9)(a) Mr F D Adair, Mr G S Andrews, Mr B Q Barton, Ms H W James, Ms K Nguyen, Mr C C Martinez and
S300(9)(c)
Ms V M Thomas and the following former directors, Mr A Brown, Mr R O Stephens and Mr K Wall,
against all liabilities to another person (other than the Company or a related body corporate) that
may arise from their position as directors of the Company and its controlled entities, except where
AUSTRALIAN CONTENT
the liability arises out of conduct involving a lack of good faith. The agreement stipulates that the
Company will meet the full amount of any such liabilities, including costs and expenses.
S300(9)(e) The Company has also agreed to indemnify the current directors of its controlled entities for all
liabilities to another person (other than the Company or a related body corporate) that may arise
from their position, except where the liability arises out of conduct involving a lack of good faith.
The agreement stipulates that the Company will meet the full amount of any such liabilities,
including costs and expenses.
Under the terms of an agreement entered into in April 2014, the Company has agreed to indemnify
certain senior executives for all liabilities to another person (other than the Company or a related
body corporate) that may arise from their position in the Company and its controlled entities,
except where the liability arises out of conduct involving a lack of good faith. The senior executives
in question are the general managers of each of the Group’s operating divisions. The agreement
stipulates that the Company will meet the full amount of any such liabilities, including legal fees.
Primary statements
S300(8)(a), S300(9)(a) During the year, a claim for breach of contract was brought against Mr A Smith, a former senior
executive of the Company. The claim related to a contract signed by him in his former capacity as
S300(9)(c) an executive officer. Under the terms of an indemnity agreement entered into during Mr Smith’s
term as an officer, the Company agreed to indemnify senior executives against all claims and legal
costs arising from the discharge of their duties, except where the liability arises out of conduct
S300(9)(d) involving a lack of good faith. Total costs of $45,000 were incurred during the year by the Company
on behalf of Mr Smith.
S300(8)(a) Under the terms of an agreement entered into in April 2015, the Company has agreed to indemnify
S300(9)(b) their former auditors, LMN, for all liabilities to another person (other than the Company or a related
S300(9)(c)
S300(9)(e)
body corporate) that may arise from their position as auditor, except where the liability arises out
of conduct involving a lack of good faith. The agreement stipulates that the Company will meet the
full amount of any such liabilities, including legal fees.
S300(9)(d)
XYZ Limited, who allegedly relied upon the 2015 Independent Audit Report and acquired an
interest in the Company, subsequently brought an action in the current year against the former
auditors, LMN, alleging that certain contingent liabilities were not adequately disclosed in the
Notes
financial report. Under the terms of the indemnity agreement, the Company incurred costs of
$50,000 being the costs incurred by LMN in mounting a successful defence.
Appendices
S300(9)(a) a. Either the name of the officer or the class of officer to which the officer belongs or belonged must be disclosed.
Introduction
S300(1)(g),(8)&(9) 13 Indemnification and insurance of officers and auditors

(continued)
Insurance premiumsa
S300(8)(b)
S300(9)(a), (d) Since the end of the previous financial year the Company has paid insurance premiums of $36,000
S300(1)(g)
in respect of directors’ and officers’ liability and legal expenses’ insurance contracts, for current
and former directors and officers, including senior executives of the Company and directors, senior
executives and secretaries of its controlled entities. The insurance premiums relate to:
AUSTRALIAN CONTENT
S300(9)(c)
– costs and expenses incurred by the relevant officersb in defending proceedings, whether civil or
criminal and whatever their outcome
S199B
– other liabilities that may arise from their position, with the exception of conduct involving a wilful
breach of duty or improper use of information or position to gain a personal advantage.
The premiums were paid in respect of the following officers of the Company and its controlled entities:
– premiums totalling $18,000 were paid in respect of the following current directors of the
Company: Mr F D Adair, Mr G S Andrews, Mr B Q Barton, Ms H W James, Ms K Nguyen,
Mr C C Martinez and Ms V M Thomas
– premiums totalling $8,000 were paid in respect of the following former directors of the
Company: Mr A Brown, Mr R O Stephens and Mr K Wall
– premiums totalling $4,000 were paid in respect of those officers of the Company holding the
Primary statements
position of general manager of operating divisions
– premiums totalling $6,000 were paid in respect of the directors, senior executives and
secretaries of the Company’s controlled entities.
The insurance policies outlined above do not contain details of the premiums paid in respect of
individual officers of the Company.
Notes
S300(9) a. The nature of the liability and the amount of the insurance premiums paid do not have to be disclosed where such
Appendices
disclosure is prohibited by the contract itself. Where these details are not disclosed, it is recommended to make a
statement to this effect. For example:
The directors have not included details of the nature of the liabilities covered or the amount of the premium paid in
respect of the directors’ and officers’ liability and legal expenses’ insurance contracts, as such disclosure is prohibited
under the terms of the contract.
S300(9)(a) b. Either the name of the officer or the class of officer to which the officer belongs or belonged must be disclosed.

Introduction
S300(11B) 14 Non-audit servicesa

During the year KPMG, the Group’s auditor, has performed certain other services in addition to
the audit and review of the financial statements.
S300(11B)(b) The board has considered the non-audit services provided during the year by the auditor and in
S300(11b) accordance with written advice provided by resolution of the audit committee, is satisfied that the
S300(11E)
S324CA, S324Cb
provision of those non-audit services during the year by the auditor is compatible with, and did
S300(11B)(c) not compromise, the auditor independence requirements of the Corporations Act 2001 for the
AUSTRALIAN CONTENT
following reasons:
– all non-audit services were subject to the corporate governance procedures adopted by the
Group and have been reviewed by the audit committee to ensure they do not impact the
integrity and objectivity of the auditor; and
– the non-audit services provided do not undermine the general principles relating to auditor
independence as set out in APES 110 Code of Ethics for Professional Accountants, as they did
not involve reviewing or auditing the auditor’s own work, acting in a management or decision
making capacity for the Group, acting as an advocate for the Group or jointly sharing risks
and rewards.
S300(11B)(a) Details of the amounts paid to the auditor of the Group, KPMG, and its network firms for audit
S300(11C) and non-audit services provided during the year are set out belowa,b,c
In dollars 2021
Primary statements
ASIC Instrument
2016/191
Services other than audit and review of financial statements:
Regulatory assurance servicesd
Workers compensation audit 43,410
Other assurance servicese
Controls assurance services 97,600
Due diligence services 362,910
f
Other services
Tax advice 15,670
Taxation compliance services 98,560
618,240
Audit and review of financial statementsg 1,708,500
g
Total paid to KPMG 2,326,740
Notes
S300(11B) a. ‘Non-audit services’ is not a defined term in the Corporations Act 2001. For the purposes of clear and transparent reporting
any services provided by the auditor which are not the audit or review of financial statements should be included.
ASIC encourages certain categorisation of fees to auditors to aid in the consistent and transparent reporting of audit
and non-audit fee information. See footnotes to Note 48 for further information.
S300(2A), An entity that has not included details of non-audit services in the directors’ report but specifies that this information
S300(11B)(a), may be found in this note to the financial statements, discloses the amount for each non-audit service in that note in
S300(11C)(b) order to comply with the Corporations Act 2001 requirements.
S300(11B)(a) b. Comparative information is not required.
c. Although it is not required, we encourage entities to split fees from assurance services from fees for non-assurance
services. We also encourage assurance services to be further split between “regulatory assurance services” and
“other assurance services”.This disclosure is provided for illustrative purposes only.
d. Regulatory assurance services are those that are required under legislation and are performed by the auditor, for
example, Form FS 71 for an AFS licensee, workers compensation, APRA reports, US Sarbanes-Oxley Act of 2002
Section 404, franchising code of conduct and retirement villages.
Appendices
e. Other assurance services are fees for other assurance and agreed-upon-procedures services such as those required
under contractual arrangements. Examples include, assurance on revenue information relevant to a royalty agreement,
sustainability assurance reporting and capital raisings.
f. KPMG has defined other services as services that do not fall within regulatory or other assurance services e.g. tax
advice, tax compliance, consulting.
g. The amount paid for audit services and the total amount paid to auditors are not required to be disclosed in the directors’
report. It is included to allow an assessment of the level of audit to non-audit fees paid to the auditor during the year.
Introduction
S300(11A),
S300(11AA)
15 Modification of auditor rotation requirements
S342A, S324DA
[Details should be inserted here, when applicable.]
S298(1A) 16 True and fair view

[Details of the directors’ reasons for disclosing the additional information and reference to where
this information is disclosed should be inserted here, when applicable.]
AUSTRALIAN CONTENT
S300(14),(15)
17 Proceedings on behalf of the Company
[Details should be inserted here, when applicable.
Example wording where a person has applied for leave of the Court and has brought or intervened
in proceedings on behalf of the Company may be:
[Name_applicant] has applied to the Court for leave to [bring proceedings on behalf of the
Company/intervene in any proceedings] to which the Company is a party for the purpose of
taking responsibility on behalf of the Company for all or any part of those proceedings.
The application has been granted by the Court.
[Name_applicant] has [brought/intervened] on behalf of the Company, proceedings with the
following details during the year:
[Name_parties to the proceedings] are parties to the proceedings
Primary statements
[Details of the nature and status of the proceedings (including the cause of action and any orders
made by the Court)].]
S307C
18 Lead auditor’s independence declaration
The Lead auditor’s independence declaration is set out on page [xxx]a and forms part of the
directors’ report for the financial year ended 30 June 2021.
19 Rounding off
ASIC Instrument The Group is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports)
2016/191
Instrument 2016/191 and in accordance with that Instrument, amounts in the consolidated
financial statements and directors’ report have been rounded off to the nearest thousand dollars,
unless otherwise stated.
Notes
Appendices
a. KPMG considers separate presentation for the lead auditor’s independence declaration to be preferable due to the
difficulty in determining the placement of the declaration in the directors’ report to ensure it is clear that the audit
partner is only providing sign off in relation to the declaration rather than the entire directors’ report, to enable it to be
on KPMG letterhead and therefore to facilitate improved reporting of the information to the users.

Introduction
20 Remuneration report – audited a,b,c,d

S300A(1), S300A(1A) An entity’s remuneration report discusses the specific facts and circumstances of its remuneration
practices. The approach in Example Public Company Limited is to present a framework for the
remuneration report setting out the discussion required and providing illustrations of how some
of the requirements could be disclosed in tabular format to comply with the more quantitative
disclosure requirements.
20.1 Principles of compensation – auditedb
AUSTRALIAN CONTENT
S300A(1)(a) [Provide a discussion of the board policy for determining the nature and amount of remuneration of
S300A(1A)
the key management personnel. The headings set out below provide one framework that an entity
may wish to consider as a guide. An entity tailors the disclosure to its facts and circumstances of
its remuneration practices.]
Compensation packages include a mix of fixed and variable compensation, and short and
long-term performance-based incentives.
S300A(1)(e)(i) The table below represents the target remuneration mix for group executives in the current
year. The short-term incentive is provided at target levels, and the long-term incentive amount is
provided based on the value granted in the current year.
At risk
Fixed remuneration Short-term incentive Long-term incentive

Primary statements
CEO 50% 30% 20%
CFO, COO 60% 20% 20%
Other executives 75% 25% –
Fixed compensation
[Discuss the composition of fixed compensation and the frequency and basis of review, including
a discussion of non-cash benefits.]
Notes
S300A(2)
a. The directors’ report of a listed disclosing entity that is a company must include a remuneration report.
S308(3C) b. The entire remuneration report must be audited for compliance with S300A. Using the word ‘audited’ within each
section header of the remuneration report is one example of how the audited information might be distinguished from
the unaudited disclosures contained in the directors’ report. Another method could be to label each audited page as
audited, so long as the end of the audited material is obvious to the reader.
S250R(2),(3) c. The remuneration report of a listed company is subject to a non-binding vote of adoption by shareholders at the
S300A(1)(g) AGM. Where 25 percent or more of the votes cast at the most recent AGM were against adoption of that report, the
subsequent remuneration report must include an explanation of the board’s action in response, or if the board does
not propose any action, the board’s reasons for inaction.
Appendices
RG 230 d. Some companies disclose alternative remuneration amounts that are measured and/or allocated to annual periods on a
basis that is not entirely consistent with the Corporations Act requirement to use accounting standards when disclosing
remuneration amounts. For example, alternative equity compensation presented might be amounts determined in
the year of vesting based on the value at vesting date, rather than the grant date fair value being spread over the
vesting period. These disclosures are in addition to the statutory disclosures that are measured in accordance with the
accounting standards. Such companies should consider the requirements of RG 230 so that the additional, alternative
disclosures are not misleading to users.
Introduction
20 Remuneration report – audited (continued)

20.1 Principles of compensation – audited (continued)
S300A(1)(ba)(i)
Performance-linked compensation
[If an element of remuneration is dependent on the satisfaction of a performance condition, provide a
detailed summary of the performance condition, including:
– explanation of why the performance condition was chosen
AUSTRALIAN CONTENT
– a summary of the methods of assessment of satisfaction of the performance condition and why
that method of assessment was chosen
– if the performance condition involves comparison of factors external to the company, a summary
of those factors, including the identities of companies or index if such factors relate to the
performance of such other company or index.
Include discussion of any discretion to reduce the performance-based elements of remuneration,
including any discretion that has been applied in the current year, or a statement such as “The
remuneration committee has not exercised such discretion in the current year.”
Practice is to differentiate performance-linked compensation between short-term and long-term
incentive schemes.
Reg 2M.3.03(1) The terms and conditions of each grant of a cash bonus, performance related bonus, or share-based
Item 12
payment compensation benefit made to a person, whether part of a specific contract for services
Primary statements
or not, affecting compensation in the reporting period or a future reporting period is disclosed.
This information is often included in the discussion of performance linked compensation.]
Consequences of performance on shareholder wealth
S300A(1AA),(1AB) [An entity provides a discussion of the relationship between the remuneration policy and the company’s
performance, specifically dealing with the matters illustrated below.a]
In considering the Group’s performance and benefits for shareholder wealth, the remuneration
committee have regard to the following indices in respect of the current financial year and the previous
four financial years.b
2021 2020 2019 2018 2017

S300A(1AA)(a) Profit attributable to owners of
the company $7,055,000 $5,623,000 $2,447,000 $2,039,000 $1,700,000
S300A(1AB)(a) Dividends paid $1,243,000 $571,000 $310,000 $300,000 $300,000
S300A(1AB)(d) Operating income growth 7.4% 6.2% 5.8% 6.1% 6.8%
Notes
S300A(1AB)(b) Change in share price $0.15 $0.20 $0.10 $0.05 $0.05
S300A(1AB)(d) Return on capital employed 35.1% 24.8% 9.2% 8.5% 8.6%
ASIC RG230.20(f)(ii) Profit is one of the financial performance targets considered in setting the Short Term Incentive
(STI). Profit amounts have been calculated in accordance with Australian Accounting Standards.
Operating income is operating profit as reported in the statement of profit or loss.
S300A(1)(ba) a. When an element of remuneration includes a performance condition that involves comparing the company against one
(iv)(B) or more other companies, a company discloses that list of other companies. Some companies use a published index
of companies or a subset of such an index in setting their performance conditions, such as the ASX 50 or the ASX 100
excluding specified industries. Other companies use a specific basket of worldwide competitor companies. Disclosure of
the comparator companies does not always need to name the actual companies, but should be specific enough to enable a
user to arrive at the actual list of companies. This may involve disclosing the name of the published index of companies (e.g.
‘ASX 100 companies’), naming the index and the specific exclusions (e.g. ‘ASX 100 companies excluding those in the financial
Appendices
services and extractive industries’), or listing the individual companies in the comparator group. Cross referencing to a list that
is not contained in the remuneration report will not achieve compliance with the Corporations Act 2001 requirements.
S300A(1AB)(c) b. In determining the consequences of the company’s performance on shareholder wealth in a financial year,the company
must also have regard to any return of capital by the company to its shareholders during the year that involves:
• the cancellation of shares in the company, and
• a payment to holders of those shares that exceeds the price at which shares in that class are being traded at the
time when the shares are cancelled.

Introduction

Service contracts
S300A(1)(e)(vii) [Where the person is employed by the company under a contract: the duration of the contract, the
periods of notice required to terminate the contract, and the termination payments provided for under
the contract are disclosed.
AUSTRALIAN CONTENT
Reg 2M.3.03(1) For each contract for services between the KMP and the disclosing entity (or any of its subsidiaries),
Item 13
such further explanations are disclosed as are necessary in addition to those prescribed in
S300A(1)(ba) and Regulation 2M.3.03(1) Item 12 to provide an understanding of how the amount of
compensation in the current reporting period was determined, and how the terms of the contract
affect compensation in future periods.]
Services from remuneration consultants
S300A(1)(h)(i) The remuneration committee engaged Marshall Associates (Marshall) as remuneration consultant to
S300A(1)(h)(ii) the board to review the amount and elements of the key management personnel remuneration and
provide recommendations in relation thereto.
S300A(1)(h)(iii) In addition to the remuneration recommendations, Marshall provided the following other services to
the Company throughout the year:
– summarised the key terms and conditions of each contract for services to enable the remuneration
Primary statements
committee to assess whether the terms and conditions are consistent across different parts of the
business
– advice in relation to the embodiment of risk in the assessment of performance for the vesting of
remuneration awards
– expatriate compliance services.
S300A(1)(h)(iv),(v) Marshall was paid $35,000 for the remuneration recommendations in respect of reviewing the
amount and elements of remuneration.
Marshall was paid $12,500 in total for all other services.
S300A(1)(h)(vi),(vii) The engagement of Marshall by the remuneration committee was based on a documented set
of protocols that would be followed by Marshall, members of the remuneration committee, and
members of the key management personnel for the way in which remuneration recommendations
would be developed by Marshall and provided to the board.
S300A(1)(h)(vi) The protocols included the prohibition of Marshall providing advice or recommendations to key
Notes
management personnel before the advice or recommendations were given to members of

the remuneration committee and not unless Marshall had approval to do so from members of the
remuneration committee.
S300A(1)(h)(vi) These arrangements were implemented to ensure that Marshall would be able to carry out its work,
including information capture and the formation of its recommendations, free from undue influence
by members of the key management personnel about whom the recommendations may relate.
The board is satisfied that the remuneration recommendations were made by Marshall free from
undue influence by members of the key management personnel about whom the recommendations
may relate.
S300A(1)(h)(viii) The board undertook its own inquiries and review of the processes and procedures followed by
Marshall during the course of its assignment and is satisfied that its remuneration recommendations
Appendices
were made free from undue influence.

These inquiries included arrangements under which Marshall was required to provide the board with
a summary of the way in which it carried out its work, details of its interaction with key management
personnel in relation to the assignment and other services, and respond to questioning by members
of the board after the completion of the assignment.
Introduction

S300A(1)(a) Non-executive directors
[Non-executive directors’ remuneration arrangements are usually separately described.]

Total compensation for all non-executive directors, last voted upon by shareholders at the 2017
AGM, is not to exceed $950,000 per annum and is set based on advice from external advisors with
AUSTRALIAN CONTENT
reference to fees paid to other non-executive directors of comparable companies. The base fee for
the Chairperson is $100,000 per annum. Base fees for other directors are $50,000 per annum.
Directors’ base fees cover all main board activities and membership of one committee. Non-
executive director members who sit on more than one committee receive an additional payment
of $2,000 per day for meetings attended.
Non-executive directors do not receive performance-related compensation and are not provided
with retirement benefits apart from statutory superannuation.
Primary statements
Notes
Appendices
Introduction

20.2 Directors’ and executive officers’ remuneration – audited a, b, c, d
Details of the nature and amount of each major element of remuneration of each director of the Company, and other key
management personnel of the consolidated entity are:
Short term
S300A(1)(c), Reg 2M.3.03(1) Items 6 – 11 Salary & fees STI cash bonus Non-monetary
In dollars (D) (A) benefits Total
Directors
AUSTRALIAN CONTENT
Non-executive directors
Name (Chairperson) 2021 87,602 - 5,825 93,427
2020 83,660 - 4,622 88,282
Name (appointed [date]) 2021 19,110 - - 19,110
Name 2021 42,397 - - 42,397
2020 40,666 - - 40,666
Name (Retired [date]) 2021 42,390 - - 42,390
2020 46,666 - - 46,666
Sub-total non-executive directors’ 2021 313,382 - 15,611 328,993

e
remuneration 2020 289,136 - 8,702 297,838
Executive directors
Name, Director, CEO 2021 436,613 102,500 248,506 787,619
2020 420,444 95,256 241,553 757,253
Primary statements
e
Total directors’ remuneration 2021 749,995 102,500 264,117 1,116,612
2020 709,580 95,256 250,255 1,055,091
Executives
Name, CFO 2021 194,545 77,500 111,263 383,308
2020 188,233 74,558 109,225 372,016
Name, COO 2021 490,908 56,000 139,297 686,205
2020 387,831 54,666 137,555 580,052
Name, Finance Director, Karooa Pty 2021 380,111 70,000 112,821 562,932
Limited, Example Mining Company Pty Ltd 2020 310,885 98,666 105,332 514,883
f
Former
Name, Finance Director, Example Gumnut 2021 164,376 37,500 141,756 343,632
Limited (resigned [date]) 2020 200,634 45,666 112,069 358,369
2021 2,924,644 518,528 1,089,609 4,532,781

Total executives’ remuneration
2020 2,439,863 573,715 976,767 3,990,345
Notes
Total directors’ and executive officers’ 2021 3,674,639 621,028 1,353,726 5,649,393
remuneration 2020 3,149,443 668,971 1,227,022 5,045,436
Notes in relation to Directors’ and executive officers’ remuneration table

A. The short-term incentive bonus is for performance during the respective financial year using the criteria set out on page [x]. The amount was finally
determined on 7 August 2021 (2020: 8 August 2020) after performance reviews were completed and approved by the remuneration committee.
B. The fair value of the options is calculated at the date of grant using the Black Scholes option-pricing model and allocated to each reporting period
evenly over the period from grant date to vesting date. The value disclosed is the portion of the fair value of the options recognised as an expense
in each reporting period.
S300A(1) a. Remuneration disclosures are only required for the current year Key management personnel (KMP) of the consolidated entity (or for the
(c) Company where consolidated financial statements are not required). Disclosure for former KMP who were not KMP for any portion of
the current year are not required, although they remain included in disclosures in notes to the financial statements.
b. If there has been a change in the chief executive officer, director or other key management person or executive during or since the end
Appendices
Reg
2M.3.03(1) of the current reporting period, disclose the name of each person involved in the change, the position involved, and the date on which
Items 4 the change occurred.
and 5
Reg c. The table excludes the following components of compensation which should be included where applicable: long-term incentives
2M.3.03(1) distributed in cash, post-employment benefits other than superannuation, shares and units, cash-settled share-based payment
Items 7, 8, compensation and share-based payments giving a choice of equity- or cash-settlement.
9 and 11
Introduction
Post-employment Other long term Share-based payments
Superannuation Termination Options and rights Proportion of remuneration

benefits (D) benefits (B & C) Total performance related
AUSTRALIAN CONTENT
8,400 - - - 101,827 -
8,200 - - - 96,485
1,720 - - - 20,830 -
3,820 - - - 46,217 -
3,555 - - - 44,221
3,820 - - - 46,210 -
4,555 - - - 51,221
28,740 - - - 357,733 -
26,765 - - - 324,603
95,000 8,325 - 215,000 1,105,944 28.7%

89,552 8,305 - 125,000 980,110
Primary statements
123,740 8,325 - 215,000 1,463,677
116,317 8,305 - 125,000 1,304,713
41,500 8,325 - 215,000 648,133 45.1%

39,556 8,305 - 125,000 545,877
66,800 8,325 - 62,500 823,830 7.4%
64,887 8,305 - - 653,244
45,800 8,325 - - 617,057 11.3%
44,661 7,865 - - 567,409
28,609 8,325 116,658 - 497,224 7.5%

56,127 7,865 - - 430,693
356,009 91,575 116,658 215,000 5,312,023

393,412 79,970 - 125,000 4,588,727 Notes
479,749 99,900 116,658 430,000 6,775,700
509,729 88,275 - 250,000 5,893,440
C. The fair value of performance rights with the relative TSR condition is calculated at the date of grant using the Monte-Carlo simulation model, taking
into account the impact of the TSR condition and the lack of dividends during the vesting period. The fair value of performance rights with the
operating income growth condition is calculated using the Black-Scholes option pricing model, taking into account the lack of dividends during
the vesting period. The value disclosed is the portion of the fair value of the rights recognised as an expense in each reporting period.
D. In accordance with AASB 119 Employee Benefits, annual leave is classified as an other long term employee benefit.
Reg d. In a remuneration report, comparative information is only required for amounts of remuneration required by Items 6, 7, 8, 9 and 11 of
2M.3.03(2) Corporations Regulation 2M.3.03(1). Comparative information for other remuneration report disclosures (e.g. narratives and other qualitative
information) is not required.
e. There is no explicit requirement to disclose total KMP remuneration, however this is a common disclosure and may be useful to a
shareholder.
Appendices
Reg f. The Corporations Act 2001 requires the relevant individuals to be disclosed, regardless of whether they retired during the year. Hence, if
2M.3.03(3) an executive meets the definition of a KMP for only part of the current year, this executive would be included in the KMP disclosures, for
the period the executive met the KMP definition. This would be the case regardless of whether the executive is still KMP at year-end. For
example, a manager of a subsidiary is promoted during the year. On promotion, the manager meets the definition of a KMP. Before year
end, the parent entity sells this subsidiary. The consolidated financial statements would include disclosures about this manager for the
period the manager met the definition of KMP – from promotion until sale of subsidiary. However, in the following year, disclosures for
this individual could be deleted from the Remuneration report.

Introduction

20.3 Analysis of bonuses included in remuneration – auditeda
Reg 2M.3.03(1)
Item 12(e)-(f)
Details of the vesting profile of the short-term incentive cash bonuses awarded as remuneration
to each director of the Company, and other key management personnel are detailed below.
Short-term incentive bonus

Included in
AUSTRALIAN CONTENT
remuneration % forfeited in year

$ (A) % vested in year (B)
KMP
KMP name 102,500 95% 5%
Reg 2M.3.03(1) (A) Amounts included in remuneration for the financial year represent the amount related to the financial year
Item 12(c)
based on achievement of personal goals and satisfaction of specified performance criteria. The remuneration
committee approved these amounts on 7 August 2021.
Reg 2M.3.03(1) (B) The amounts forfeited are due to the performance or service criteria not being met in relation to the current
Item 12(f)
financial year.
20.4 Equity instruments – auditedb
Reg 2M.3.03(3) All rights and options refer to rights and options over ordinary shares of Example Public Company
Limited, which are exercisable on a one-for-one basis under the executive share plan (ESP).
Primary statements
20.4.1 Right and options over equity instruments granted as compensation – audited
Reg 2M.3.03(1) Item
15(a)(i)-(ii), (b)(i)-(ii),(iv) Details on rights and options over ordinary shares in the Company that were granted as
Item 18(b)
compensation to each key management person during the reporting period and details on options
that vested during the reporting period are as follows:
Number Fair value Exercise Number

of options per option at price per of options
granted grant date option vested during
Options during 2020-21 Grant date $ $ Expiry date 2020-21
KMP name – 1 July 2018 5.60 10.10 1 July 2028 100,000
Number of Fair value at

rights granted Vesting grant date
Rights during 2020-21 condition Grant date $ Expiry date
KMP name 20,000 Operating 1 July 2020 10.10 1 July 2030
income
Notes
20,000 Relative TSR 1 July 2020 8.50 1 July 2030

Reg 2M.3.03(1) Item
15(b)(iv)-(v)
Reg 2M.3.03(1) Item All rights and options expire on the earlier of their expiry date or termination of the individual’s
15(b)(vi) employment. The rights vest and options are exercisable three years from grant date. In addition to
a continuing employment service condition, vesting is conditional on the Group achieving certain
performance hurdles. Details of the performance criteria are included in the long-term incentives
discussion on page [x]. For rights granted in the current year, the earliest vesting date is 1 July 2023.
Appendices
Reg 2M.3.03(1) a. Disclosures are required for each grant of each type of cash bonus, performance-related bonus or share-based
Item 12 payment to each person that affects remuneration in the current or future periods.
Reg 2M.3.03(3) b. Disclosures related to equity instruments under Items 15 to 16 must be separated into each class of equity
instrument, identifying each class by the name of the issuing entity, the class of equity instrument, and if the
instrument is an option or right, the class and number of equity instruments for which it may be exercised.
Introduction

20.4 Equity instruments – audited (continued)
Reg 2M.3.03(1) Item 16 20.4.2 Exercise of options granted as compensation – audited
Reg 2M.3.03(1) Item During the reporting period, the following shares were issued on the exercise of options
16(a), (c)
previously granted as compensation:
a Amount paid $/share
Number of shares
AUSTRALIAN CONTENT
KMP name 5,000 10.00
Reg 2M.3.03(1) There are no amounts unpaid on the shares issued as a result of the exercise of the options in the
Item 16(d)
2020-21 financial year.
20.4.3 Details of equity incentives affecting current and future remuneration – audited
Reg 2M.3.03(1) Details of vesting profiles of the rights and options held by each key management person of the
Item 12(a)-(b),(e)-(g)
Group are detailed below.
Financial years
% vested % forfeited in in which grant
Instrument Grant date in year year (A) vests
KMP name Options 100,000 1 July 2018 100% -% 1 July 2020
Options 100,000 1 July 2019 -% -% 1 July 2022
Rights 40,000 1 July 2020 -% -% 1 July 2023
Primary statements
(A) The percentage forfeited in the year represents the reduction from the maximum number of
instruments available to vest due to performance criteria not being achieved.
20.4.4 Analysis of movements in equity instruments – audited b
S300A(1)(e)(ii)-(iii) The value of rights or options over ordinary shares in the Company granted and exercised by each
key management person during the reporting period is detailed below.
Value of rights or options exercised

Granted in year in year
$ (A) $ (B)
KMP name 372,000 –
IFRS 2.7 (A) The value of rights granted in the year is the fair value of the rights calculated at grant date.
The total value of the rights granted is included in the table above. This amount is allocated to
remuneration over the vesting period (i.e. in years 1 July 2020 to 1 July 2023).
(B) The value of options exercised during the year is calculated as the market price of shares of
Notes
the Company as at close of trading on the date the options were exercised after deducting the
price paid to exercise the option.
Appendices
Reg 2M.3.03(1) a. If the number of options or rights exercised differs from the number of equity instruments issued, the number of
Item 16(b) options or rights exercised is also disclosed.
S300A(1)(e) b. This disclosure requirement refers specifically to “options” rather than more generically to equity instruments or
“options and rights”. It is not clear whether an entity is required to include other forms of share-based payments in
these disclosures. In our view, an entity should choose whether to interpret “options” strictly and limit disclosures
to only options, or to interpret “options” more widely and include the values of all forms of share-based payments.

Introduction

20.4 Equity instruments – audited (continued)
Reg 2M.3.03(1) 20.4.5 Options and rights over equity instrumentsa
Item 17(a)-(g)
S300A(1)(e)(iv) The movement during the reporting period, by number of rights and options over ordinary
shares in Example Public Company Limited held, directly, indirectly or beneficially, by each key
management person, including their related parties, is as follows:
AUSTRALIAN CONTENT
Held at Granted as Held at Vested Vested and

1 July compen- 30 June during exercisable at
b
2020 sation Exercised Lapsed Forfeited 2021 the year 30 June 2021
Options
KMP name 250,000 – – 50,0001 – 200,000 100,000 100,000
Rights
KMP name – 40,000 – – – 40,000 – –
1
Options that lapsed during the year were granted during the financial year ended 30 June 2017.
Reg 2M.3.03(1) 20.5 Payments to persons before taking office – audited

Item 10
[insert details of any payment made as part of the consideration for the person agreeing to hold
office including the monetary value and date of payment]
Primary statements
20.6 Key management personnel transactionsc – audited

Loans to key management personnel and their related partiesd
Reg 2M.3.03(1) Details regarding loans outstanding at the end of the reporting period to key management
Item 21(a),(c),(e)-(f)
personnel and their related parties, where the individual’s aggregate loan balance exceeded
$100,000 in the reporting period, are as follows:
Balance Balance Interest not Highest balance in

1 July 2020 30 June 2021 charged period
$ $ $ $
KMP name 102,000 78,000 9,786 187,000
Unsecured loans issued to [KMP name] during the year ended 30 June 2021 amounted to
$85,000. During the year, [KMP name] repaid $109,000 of the balance outstanding on the loan.
Reg 2M.3.03(1) Details regarding the aggregate of all loans made, guaranteed or secured by any entity in the
Item 20(a),(c),(e)-(f)
Group to key management personnel and their related parties, and the number of individuals in
each group as at 30 June 2021, are as follows:e
Notes
Opening Closing Interest not Number in group at

balance balance charged 30 June
$ $ $
Total for key management 132,000 78,000 10,796 2
personnel and their related parties
Reg 2M.3.03(1)
Item 20(b),(g),Item No interest is payable on the loans, and the loans are repayable in cash in full 12 months after the
21(b),(g) issue date.
Reg 2M.3.03(3) a. This disclosure is separated into each class of equity instrument, identifying each class by the name of the issuing entity, the class of equity
instrument, and if the instrument is an option or right, the class and number of equity instruments for which it may be exercised.
Reg 2M.3.03(1)Item 17(h) b. Options and rights vested and unexercisable at the end of the reporting period are, where relevant, disclosed.
Reg 2M.3.03(1) Items 17-24 c. Individual disclosures about equity transactions, loans and other transactions are required in a remuneration report. Disclosures about these
Appendices
other transactions with KMP, in the aggregate, are still included in the notes to financial statements. Some level of duplication may be required
to comply with both AASB 124 and the Corporations Act.
Reg 2M.3.03(3A) d. Loan disclosures do not include loans involved in transactions that are in substance options, including non-recourse loans to purchase shares.
Such loans should be included in disclosures as options.
The disclosures in relation to options and rights holdings, equity holdings and transactions, loans, and other transactions and balances are
required for transactions with KMP, close family members of KMP and entities over which KMP, or a close member of the family of those
personnel, have control, joint control or significant influence.
Reg 2M.3.03(1)Items 17-22 e. The totals included in the table below may be different from the totals in the table above which includes only disclosures when the individual’s
aggregate loan balance exceeds $100,000 in the reporting period.
Introduction

20.6 Key management personnel transactions – audited (continued)
Reg 2M.3.03(1) Other transactions with key management personnel a
Item 22
A number of key management personnel (KMP), or their related parties, hold positions in other entities that result in
them having control, or joint control, over the financial or operating policies of those entities.
A number of these entities transacted with the Group during the year. The terms and conditions of the transactions
with KMP and their related parties were no more favourable than those available, or which might reasonably be
AUSTRALIAN CONTENT
expected to be available, on similar transactions to non-key management personnel related entities on an arm’s
length basis.
Reg 2M.3.03(3B) From time to time, directors of the Group, or their related entities, may purchase goods from the Group. These
purchases are on the same terms and conditions as those entered into by other Group employees or customers, and
are trivial or domestic in nature.
Movements in shares b,c

Reg 2M.3.03(1) The movement during the reporting period in the number of ordinary shares in Example Public Company Limited
Item 18(a),(c)-(e) held, directly, indirectly or beneficially, by each key management person, including their related parties, is as follows:
Held at Received on Other Held at

d
1 July 2020 exercise of options changes* 30 June 2021
KMP name 1,000 – 4,000 5,000
* Other changes represent shares that were purchased or sold during the year
Primary statements
S298(2) This Directors’ report is made out in accordance with a resolution of the directors:
F D Adair
Director
Dated at …...................……… (City) this ……… day of …………………… 2021.
Notes
Reg 2M.3.03(1) a. Details of each type of transaction between the disclosing entity and a KMP, or any KMP related party, are disclosed.
Items 22-24 However, disclosure is not required for transactions that meet the following criteria:
Reg 2M.3.03(3B)
a. t he transaction occurs within a normal employee, customer or supplier relationship on terms and conditions no more
favourable than those that it is reasonable to expect the entity would have adopted if dealing at arms-length with an
unrelated person; and
b. information about the transaction does not have the potential to affect adversely decisions about the allocation
of scarce resources made by users of the financial statements, or the discharge of accountability by the key
management person; and
c. the transaction is trivial or domestic in nature.
This disclosure exemption is only available for other transactions covered by Reg 2M.3.03(1) Items 22-24.
Reg 2M.3.03(1) b. The disclosures related to the movements in equity instruments should be done in relation to each type of equity
Items 18 instrument.
Reg 2M.3.03(1) c. When an individual ceased to be a KMP before the end of the reporting period, entities should clearly disclose the basis
Appendices
Items 18 for the end of period number of shares disclosed. It may be appropriate to indicate ‘n/a’ at period end, explaining that the
individual was not a KMP at that date.
Similar consideration should be given in relation to the beginning balance for individuals who became KMP during the
reporting period.
Reg 2M.3.03(1) d. Separate disclosure of the number of equity instruments held nominally at the end of the reporting period is made.
Items 18(f)
Consolidated statement of financial position

Introduction
IAS 1.10(a), (ea)-(f), 29,

Note 30 June 2021 30 June 2020 1 July 2019
38–38A, 40A–40B, b b,c
54-55 ,113 In thousands of dollars Restated* Restated*
Assets
IAS 1.54(i) Cash and cash equivalents 19 1,504 1,849 2,529
IAS 1.54(h) Trade and other receivables 18 32,518 22,325 17,651
Contract assetsh 8 1,271 782 –
IAS 1.54(g) Inventoriesg 17 12,148 12,119 11,587
IAS 1.54(f) Biological assets 16 32 31 29
Other investments, including derivativese 25 662 1,032 947
AUSTRALIAN CONTENT
IAS 1.54(d)
IAS 1.54(n) Current tax assets 34 60 –

IAS 1.55 Prepaymentsi 330 1,200 895
IFRS 5.38, 40, IAS 1.54(j) Assets held for sale 20 14,400 – –
IAS 1.60 Current assetsf 62,899 39,398 33,638
IAS 1.54(d) Other investments, including derivativese 25 3,616 3,512 3,221
IAS 1.54(e) Equity-accounted investees 24 2,489 1,948 1,530
IAS 1.54(b), 17.49 Investment propertyd 23 1,520 400 300
IAS 1.54(o), 56 Deferred tax assets 14 2,251 2,108 985
IAS 1.55 Employee benefits 13 671 731 716
IAS 1.54(a) Property, plant and equipmentd 21 28,490 33,230 37,118
IAS 1.54(f) Biological assets 16 4,698 4,025 3,407
IAS 1.54(c) Intangible assets and goodwill 22 6,226 4,661 5,429
Primary statements
IAS 1.60 Non-current assetsf 49,961 50,615 52,706

Total assets 112,860 90,013 86,344
Notes
IAS 1.10 a. An entity may also use other titles – e.g. ‘balance sheet’ – as long as the meaning is clear and the title not misleading.
Insights 2.8.50.110 b. When comparatives are restated, in our view, although it is not specifically required by IFRS, labelling the
comparatives as restated is necessary to highlight that the comparatives are not the same as the financial
statements published previously.
Similarly, when new standards are applied but comparative information has not been restated (e.g. when recognising
the cumulative effect of applying new standards in the opening balance of equity), it may be useful to highlight that fact.
IAS 1.10(f), 40A c. The Group has presented a third statement of financial position as at the beginning of the preceding period, because
the correction of errors (see Note 44) has a material effect on the information in the statement.
IFRS 16.47(a) d. The Group has presented right-of-use assets that do not meet the definition of investment property within ‘property,
Appendices
plant and equipment’ – i.e. the same line item in which it presents underlying assets of the same nature that it owns.
Alternatively, an entity may choose to present right-of-use assets separately in the statement of financial position.
Right-of-use assets that meet the definition of investment property are presented within ‘investment property’.
Insights 7.10.40.50 e. In our view, derivative assets and liabilities should be presented as separate line items in the statement of financial
position if they are significant.
Illustrative disclosures – primary statements | 33
Consolidated statement of financial position (continued)
Introduction
Note 30 June 2021 30 June 2020 1 July 2019
b b,c
In thousands of dollars Restated* Restated*
Liabilities
IAS 1.55 Bank overdraft 19 334 282 303
IAS 1.55 Contract liabilities 8 160 166 –
IAS 1.54(k) Trade and other payables k, l 29 24,013 21,328 28,250
IAS 1.54(m) Loans and borrowingsj 28 5,347 6,047 3,504
IAS 1.55, 78(d) Employee benefits 13 20 388 13
IAS 1.54(n) Current tax liabilities 4,751 1,693 25
AUSTRALIAN CONTENT
IAS 1.54(l) Provisions 31 660 1,540 140
IAS1.55, 11.42(b), 20.24 Deferred income 30 – – 140
IFRS 5.38, 40, IAS 1.54(p) Liabilities held for sale 20 4,410 – –
IAS 1.60 Current liabilitiesf 39,695 31,444 32,375
IAS 1.55, 78(d) Employee benefits 13 912 453 1,136
IAS 1.54(k) Trade and other payables k 29 290 5 4
IAS 1.55, 11.42(b), 20.24 Deferred income 30 1,424 1,462 –
IAS 1.54(l) Provisions 31 1,010 – 740
IAS 1.54(o), 56 Deferred tax liabilities 14 549 406 323
IAS 1.60 Non-current liabilitiesf 27,943 23,203 24,407
Total liabilities 67,638 54,647 56,782
Primary statements
Net assets 45,222 35,366 29,562
Equity
IAS 1.54(r), 78(e) Share capital 19,756 18,050 18,050
IAS 1.54(r), 78(e) Reserves 19,434 9,771 3,818
IAS 1.55, 78(e) Retained earnings 2,228 4,454 4,976
Equity attributable to owners
of the Company 26 41,418 32,275 26,844
IAS 1.54(q) Non-controlling interests 35 3,804 3,091 2,718
Total equity 45,222 35,366 29,562
* See Note 44
The comparative information is restated on account of correction of errors.
The notes on pages 68 to 227 are an integral part of these consolidated financial statements.
IAS 1.60–61 f. The Group has made a current/non-current distinction in the statement of financial position. An entity may present its assets and
liabilities broadly in order of liquidity if such a presentation provides information that is reliable and more relevant. Our publication Notes
Guide to annual financial statements – Illustrative disclosures for banks provides an example presentation of assets and liabilities in
order of liquidity.
IFRS 15.B21, BC367 g. IFRS 15 and other standards do not specify where assets for rights to recover products from customers with regards to sales with
a right of return should be presented. The Group has included the assets in ‘inventories’ and disclosed them separately in the notes
(see Note 17).
IAS 1.54–55, h. Although it is not specifically required, the Group has presented in the statement of financial position line items related to contract
IFRS 15.105, 109, assets and contract liabilities. An entity also applies the requirements in IAS 1 in classifying contract assets and contract liabilities as
A, BC320-BC321, current or non-current. For further guidance, see Insights 4.2.510.
Insights 4.2.510 Although this guide uses the terms ‘contract assets’ and ‘contract liabilities’, an entity may also use other terms.
IAS 1.66, i. The Group has classified prepayments as current because they relate to the purchase of inventories and are expected to be realised
Insights 3.1.30 within 12 months of the reporting date. An entity should apply the requirements in IAS 1 in determining whether to classify prepayments
as current or non-current.
IFRS 16.47(b) j. The Group has presented lease liabilities within ‘loans and borrowings’. Alternatively, an entity (a lessee) may choose to present lease
liabilities separately from other liabilities in the statement of financial position.
IFRS 15.55 k. The Group has presented its refund liabilities under IFRS 15 as ‘trade and other payables’. The Group’s returns policy offers only an
Appendices
exchange for another good – i.e. the Group does not offer a cash refund. Therefore, refund liabilities do not meet the definition of a
financial liability in IAS 32 Financial Instruments: Presentation. If a refund liability or a liability related to a repurchase agreement meets the
definition of a financial liability in IAS 32, then it is subject to the disclosure requirements in IFRS 7 Financial Instruments: Disclosures.
Insights 3.1.10.30, l. The Group has presented amounts owed for the purchase of goods or services but subject to reverse factoring within ‘trade and other
7.10.35.70–100 payables’ because it considers that the nature or function of the financial liability is not sufficiently different from a trade payable and
does not warrant a separate presentation on the face of the statement of financial position. In our view, regardless of whether the
original trade payable is derecognised, an entity should consider the appropriate presentation of amounts related to reverse factoring
arrangements in the statement of financial position. The Group has disclosed those amounts separately in the notes. See Note 29.
Consolidated statement of profit or loss and

Introduction
other comprehensive income a, b
For the year ended 30 June

IAS 1.10(b), 10A, 29, Note 2021 2020
38–38A, 81A–85, 113 In thousands of dollars Restated*
Continuing operations
IAS 1.82(a) Revenuec, d 8 102,860 96,719
IAS 1.99, 103 Cost of salese 9(C) (55,432) (56,186)
IAS 1.103 Gross profit 47,428 40,533
IAS 1.85 Other income 9(A) 893 104
Selling and distribution expensese (18,322) (15,865)
AUSTRALIAN CONTENT
IAS 1.99, 103 9(C)

IAS 1.99, 103 Administrative expensese 9(C) (17,732) (14,428)
IAS 1.99, 103, 38.126 Research and development expensese 9(C) (1,109) (697)
Impairment loss on trade receivables and contract assetsf 31(C)(ii) (200) (190)
IAS 1.99, 103 Other expenses 9(B) (996) -
g
IAS 1.85, BC55–BC56 Operating profit 9,962 9,457
d
IAS 1.85 Finance income 1,131 447
IAS 1.82(b) Finance costsh (1,883) (1,635)
IAS 1.85 Net finance costs 10 (752) (1,188)
IAS 1.82(c) Share of profit of equity-accounted investees, net of tax 24 1,141 587
IAS 1.85 Profit before tax 10,351 8,856
IAS 1.82(d), 12.77 Income tax expense 14 (3,178) (2,460)
Primary statements
IAS 1.85 Profit from continuing operations 7,173 6,396

Discontinued operation
IFRS 5.33(a), IAS 1.82(ea) Profit (loss) from discontinued operation, net of taxi 7 379 (422)
IAS 1.81A(a) Profit for the period 7,552 5,974
Other comprehensive income
Items that will not be reclassified to profit or loss
IAS 1.82A(a)(i), 85 Revaluation of property, plant and equipment 21(F) 200 -
IAS 1.82A(a)(i), 85 Remeasurements of defined benefit liability (asset) 13(B) 72 (15)
IAS 1.82A(b)(i) Equity investments at FVOCI – net change in fair value 26(D) 141 59
IAS 1.82A(a)(i), 91(b) Equity-accounted investees – share of OCI 24, 26(D) 15 (3)
Related taxj 14(B) (137) (14)
291 27
IAS 1.82A(a)(ii) Items that are or may be reclassified subsequently to profit or loss
IAS 21.52(b) Foreign operations – foreign currency translation differences 679 471
Notes
IAS 1.85 Net investment hedge – net loss (3) (8)

IAS 1.82A(b)(ii) Equity-accounted investees – share of OCI 24, 26(D) (172) (166)
IAS 1.92 Reclassification of foreign currency differences on loss of
significant influence 34(D) (20) -
IFRS 7.24C(b)(i) Cash flow hedges – effective portion of changes in fair valuek 26(D) (62) 95
IFRS 7.24C(b)(iv),
IAS 1.92 Cash flow hedges – reclassified to profit or lossk, l 26(D) (31) (11)
IAS 1.85 Cost of hedging reserve – changes in fair value 26(D) 34 10
IAS 1.92 Cost of hedging reserve – reclassified to profit or lossl 26(D) 8 2
IFRS 7.20(a)(viii) Debt investments at FVOCI – net change in fair value 26(D) 55 59
IFRS 7.20(a)(viii), IAS 1.92
Debt investments at FVOCI – reclassified to profit or lossl 26(D) (64) -
Appendices
IAS 1.91(b) Related taxi 14(B) 19 (48)

442 404
IAS 1.81A(b) Other comprehensive income for the period, net of tax 733 431
IAS 1.81A(c) Total comprehensive income for the period 8,285 6,405
Consolidated statement of profit or loss and other
Introduction
comprehensive income (continued)
IAS 1.10(b), 38–38A, Note 2021 2020
81A, 113 In thousands of dollars Restated*
Profit attributable to:

IAS 1.81B(a)(ii) Owners of the Company 7,055 5,623
IAS 1.81B(a)(i) Non-controlling interests 35 497 351
7,552 5,974
Total comprehensive income attributable to:
AUSTRALIAN CONTENT
IAS 1.81B(b)(ii) Owners of the Company 7,762 6,032
IAS 1.81B(b)(i) Non-controlling interests 35 523 373
8,285 6,405
IAS 33.4 Earnings per share
IAS 33.66,
ASIC Instrument
2016/191
Basic earnings per share (dollars) 11 2.146 1.694
IAS 33.66,
ASIC Instrument
2016/191
Diluted earnings per share (dollars) 11 2.037 1.685
Earnings per share – continuing operations
IAS 33.66,
ASIC Instrument
2016/191 Basic earnings per share (dollars) 11 2.023 1.832
IAS 33.66,
ASIC Instrument Diluted earnings per share (dollars)
2016/191
11 1.922 1.822
* The comparative information is restated on account of correction of errors. See Note 44. Comparative
Primary statements
information has also been re‑presented due to a discontinued operation and a change in classification.
See Notes 7 and 21(H) respectively.
IAS 1.10A a. The Group has elected to present comprehensive income using a ‘one-statement’ approach. For an illustration of the alternative ‘two-
statement’ approach, see Appendix II.
IAS 1.82 b. IAS 1 requires the separate presentation of specific line items in the statement of profit or loss. The Group has not presented certain line
items because during the reporting period it did not have events or transactions to be reflected in those line items. See footnotes (c) and
(e) below for specific considerations related to separate presentation of line items in the statement of profit or loss.
IFRS 15.113, c. It appears that an entity is not required to present revenue from contracts with customers as a separate line item in the statement of
IAS 1.29–30, 85, profit or loss and may aggregate it with other types of revenue considering the requirements in IAS 1. However, in providing a separate
disclosure of revenue from contracts with customers – either in the notes or in the statement of profit or loss – we believe that an entity
Insights 4.2.560.25 should not include amounts that do not fall in the scope of IFRS 15 (see Note 8).
IAS 1.82(a), d. The Group has presented interest income on financial assets that are subsequently measured at amortised cost or FVOCI as part of ‘finance
Insights 7.10.60.30 income’ because it does not consider it as part of its revenue-generating activities. If the interest income, calculated using the effective
interest method, constituted revenue, then the entity would be required to separately present that income as interest revenue in the
statement of profit or loss and OCI. It appears that an entity may present interest income from other financial assets in another revenue line
item if it arises in the course of the entity’s ordinary activities.
IAS 1.99–100 e. The Group has elected to analyse expenses recognised in profit or loss based on functions within the Group. Alternatively, an entity may
present the analysis based on nature if this presentation provides information that is reliable and more relevant. The analysis may also be
presented in the notes.
IAS 1.82(ba), 85, f. An entity that presents the analysis of expenses by function or by nature in the statement of profit or loss and OCI may face challenges in
31, 97, 99, determining how this presentation interacts with the specific requirements to present the effect of some events or circumstances as a single Notes
amount in the statement of profit or loss and OCI – e.g. impairment losses determined under Section 5.5 of IFRS 9 Financial Instruments.
Insights 4.1.20.40 The Group has applied judgement in determining an appropriate presentation and disaggregated the impairment loss amount into:
– impairment related to trade and other receivables, including contract assets, which is presented separately in the statement of profit or
loss and OCI; and
– impairment related to investments in debt securities, which is not presented separately but included under ‘finance costs’ due to
materiality considerations.
The Group believes that this presentation is relevant to an understanding of its financial performance.
IAS 1.85, g. The Group has presented a subtotal of ‘operating profit’. When an entity presents results from operating activities, it ensures that the
BC55–BC56 amount disclosed is representative of activities that would normally be regarded as ‘operating’, and it would be inappropriate to exclude
items clearly related to operations.
IAS 1.82(b), IFRS h. The Group has presented interest expense on the lease liability separately from the depreciation charge for the right-of-use asset. Interest
16.49, 7.IG13 expense on the lease liability is a component of finance costs, which is presented separately in the statement of profit or loss and OCI.
IFRS 5.33(a)–(b), i. The Group has elected to disclose a single amount of post-tax profit or loss of discontinued operations in the statement of profit or loss
IAS 1.82(ea) and OCI, and has analysed that single amount into revenue, expenses and the pre-tax profit or loss in Note 7. Alternatively, an entity may
present the analysis in the statement.
IAS 1.90–91 j. The Group has elected to present individual components of OCI before related tax with an aggregate amount presented for tax in the
statement of profit or loss and OCI, and has provided disclosures related to tax on each component of OCI in Note 14(B). Alternatively, an
entity may present individual components of OCI net of related tax in the statement.
IFRS 9.6.5.11– k. IFRS 9 specifies whether and when amounts previously recognised in OCI are reclassified to profit or loss. However, in some circumstances it
Appendices
6.5.15, IAS may be unclear at the time when a gain or loss is recognised in OCI whether it will subsequently be reclassified to profit or loss. For example,
1.82A(a), Insights if an entity hedges a future purchase of a non-financial item, then the related hedging gains and losses will subsequently be included in the
7.10.90.35 initial cost of the non-financial item and affect profit or loss when the non-financial item is disposed of or written down. Conversely, if the
future hedged cash flows are no longer expected to occur or if a loss is no longer expected to be recoverable, then the hedging gains or
losses will be reclassified to profit or loss. Accordingly, in our view gains or losses on cash flow hedges and costs of hedging relating to the
future recognition of a non-financial asset or liability should be presented in OCI as items that may be subsequently reclassified to profit or
loss when specific conditions are met.
IAS 1.94 l. The Group has elected to present reclassification adjustments in the statement of profit or loss and OCI. Alternatively, an entity may
present these adjustments in the notes.
Introduction
IAS 1.10(c), 38–38A, Share Translation Hedging

1
108, 113 In thousands of dollars Note capital reserve reserve
Balance at 1 July 2019,* as previously reported 18,050 (119) 399

IAS 1.106(b) Impact of restatement - - -
44
Restated balance at 1 July 2019 18,050 (119) 399
Total comprehensive income (restated)
IAS 1.106(d)(i) Profit - - -
AUSTRALIAN CONTENT
IAS 1.106(d)(ii), 106A Other comprehensive income 14(B), 26(D) - 275 65

IAS 1.106(a) Total comprehensive income (restated) - 275 65
Hedging gains and losses and costs of hedging
transferred to the cost of inventory - - -
IAS 1.106(d)(iii)
Transactions with owners of the Company
Contributions and distributions
a
Treasury shares acquired 26(B) - - -
b
Transfer to profits reserve 26(B) - - -
Dividends 26(C) - - -
c
Equity-settled share-based payment 13(E), 14(C) - - -
Total transactions with owners of the Company - - -
Restated balance at 30 June 2020 18,050 156 464
Primary statements
Balance at 1 July 2020 18,050 156 464

Total comprehensive income
IAS 1.106(d)(i) Profit - - -
IAS 1.106(d)(ii), 106A Other comprehensive income 14(B), 26(D) - 458 (35)
IAS 1.106(a) Total comprehensive income - 458 (35)
transferred to the cost of inventory - - - 8
IAS 1.106(d)(iii) Contributions and distributions
Issue of ordinary shares 26(A) 1,550 - -
Issue of ordinary shares related to
business combinations 34(A) 87 - -
Issue of convertible notes 14(C), 28(C) - - -
a
Treasury shares sold 26(B) 19 - -
Reporting Update b
Transfer to profits reserve 26(B) - - -
Notes
12RU-005
c
Equity-settled share-based payment 13(E), 14(C) - - -
Share options exercised 26(A) 50 - -
Total contributions and distributions 1,706 - -
IAS 1.106(d)(iii) Changes in ownership interests
Acquisition of NCI without a change in control 36 - 8 -
Acquisition of subsidiary with NCI 34 - - -
Total changes in ownership interests - 8 -
Total transactions with owners of the Company 1,706 8 -
Balance at 30 June 2021 19,756 622 437
1. The Hedging reserve includes the cost of the hedging reserve. These balances are detailed in Note 26D.
Appendices
* The comparative information is restated on account of correction of errors. See Note 44.
IAS 32.33, Insights 7.3.560 a. The Standards do not mandate a specific method of presenting treasury shares within equity. However, local laws may
prescribe the allocation method. Therefore, an entity needs to take into account its legal environment when choosing how
to present its own shares within equity. An entity needs to choose a presentation format, to be applied consistently to
all treasury shares. The Group has elected to present the total cost of treasury shares as a separate category of equity.
Consolidated statement of changes in equity
Introduction
Attributable to owners of the Company
Treasury Con-
Fair value Revaluation Profits share vertible Retained Non-controlling
reserve reserve reserve reserve notes earnings Total interests Total equity
17 - 3,521 - - 4,919 26,787 2,718 29,505
- - - - - 57 57 - 57
17 - 3,521 - - 4,976 26,844 2,718 29,562
- - - - - 5,623 5,623 351 5,974
AUSTRALIAN CONTENT
82 - - - - (13) 409 22 431
82 - - - - 5,610 6,032 373 6,405
- - - - - - - - -
- - - (280) - - (280) - (280)

- - 6,382 - - (6,382) - - -
- - (571) - - - (571) - (571)
- - - - - 250 250 - 250
- - 5,811 (280) - (6,132) (601) - (601)
99 - 9,332 (280) - 4,454 32,275 3,091 35,366
Primary statements
99 - 9,332 (280) - 4,454 32,275 3,091 35,366
- - - - - 7,055 7,055 497 7,552

87 134 - - - 63 707 26 733
87 134 - - - 7,118 7,762 523 8,285
- - - - - - 8 - 8
- - - - - - 1,550 - 1,550
- - - - - 120 207 - 207

- - - - 109 - 109 - 109
- - - 11 - - 30 - 30
- - 10,126 - - (10,126) - - - Notes
- - (1,243) - - - (1,243) - (1,243)

- - - - - 755 755 - 755
- - - - - - 50 - 50
- - 8,883 11 109 (9,251) 1,458 - 1,458
- - - - - (93) (85) (115) (200)

- - - - - - - 304 304
- - - - - (93) (85) 189 104
- - 8,883 11 109 (9,344) 1,373 189 1,562
186 134 18,215 (269) 109 2,228 41,418 3,804 45,222
Appendices
Reporting Update 12RU-005 b. Amounts transferred to the profits reserve characterise profits available for distribution as dividends in future
years and reflects the amounts transferred by individual entities in the Group and is therefore not necessarily
equivalent to the consolidated Group profit for the year.
IAS 1.78(e), 79(b), 108, c. Generally, IFRS 2 Share-based Payment does not address whether an increase in equity recognised in connection
Insights 4.5.900.30 with a share-based payment transaction should be presented in a separate component within equity or within
retained earnings. In our view, either approach is allowed. The Group has elected to present such increase in
retained earnings.
Consolidated statement of cash flows

Introduction

Note 2021 2020
IAS 1.10(d), 38-38A, 113 In thousands of dollars Restated*
IAS 7.18(a) Cash flows from operating activitiesa, b, c

Cash receipts from customers 94,352 97,996
Cash paid to suppliers and employees (90,439) (93,025)
Cash generated from operating activities 3,913 3,509
IAS 7.31-32
Interest paidd, e (1,609) (1,289)
IAS 7.35
Income taxes paid (400) (1,913)
AUSTRALIAN CONTENT
IAS 7.10
Net cash from operating activities 47 1,904 307
Cash flows from investing activities
IAS 7.31
Interest receivedd 6 19
IAS 7.31
Dividends receivedd 26 32
IAS 7.16(b)
Proceeds from sale of property, plant and equipment 3,085 397
IAS 7.21
Proceeds from sale of investments 1,476 534
IAS 7.39
Disposal of discontinued operation, net of cash disposed off 7 10,890 –
IAS 7.39
Acquisition of subsidiary, net of cash acquired 34 (1,799) –
IAS 7.16(a)
Acquisition of property, plant and equipment 21(A) (15,657) (2,228)
IAS 7.16(a)
Acquisition of investment property 23(A) (300) (40)
IAS 7.21
Purchase of non-current biological assets 16(A) (305) (835)
IAS 7.16(a) Acquisition of other investments (359) (342)
Primary statements
IAS 24.18 Dividends from equity-accounted investees 24(A) 21 –

IAS 7.21
Development expenditure 22(A), (D) (1,235) (503)
Receipt of government grant 30 – 1,462
IAS 7.10
Net cash used in investing activities (4,151) (1,504)
Notes
Appendices
Introduction
Consolidated statement of cash flows (continued)
IAS 1.10(d), 29, Note 2021 2020
38–38A, 113 In thousands of dollars Restated*
Cash flows from financing activities

IAS 7.17(a)
Proceeds from issue of share capital 26(A) 1,550 –
IAS 7.17(c)
Proceeds from issue of convertible notes 28(C) 5,000 –
IAS 7.17(c)
Proceeds from issue of redeemable preference shares 28(D) 2,000 –
AUSTRALIAN CONTENT
IAS 7.17(c)
Proceeds from loans and borrowings 591 4,439
IAS 7.21
Proceeds from sale of treasury shares 30 –
IAS 7.21
Proceeds from exercise of share options 26(A) 50 –
IAS 7.16(h)
Proceeds from settlement of derivatives 5 11
IAS 7.21
Transaction costs related to loans and borrowings 28(C), (D) (311) –
IAS 7.42A
Acquisition of non-controlling interests 36 (200) –
IAS 7.17(b)
Repurchase of treasury shares – (280)
IAS 7.17(d)
Repayment of borrowings (5,055) (2,445)
IAS 7.17(e)
Payment of lease liabilitiesb (554) (590)
IAS 7.31, 34
Dividends paidd 26(C) (1,243) (571)
IAS 7.10
Net cash from financing activities 1,863 564
Net decrease in cash and cash equivalents (384) (633)
Cash and cash equivalents at 1 July** 1,567 2,226
Primary statements
IAS 7.28 Effect of movements in exchange rates on cash held (13) (25)
Cash and cash equivalents at 30 June** 19 1,170 1,567
* See Note 44.
The comparative information is restated on account of correction of errors.
IAS 7.45 ** Cash and cash equivalents includes bank overdrafts that are repayable on demand and form an integral part of
the Group’s cash management.
The notes on pages 68 to 227 are an integral part of these consolidated financial statements
IAS 7.18-19 a. The Group has elected to present cash flows from operating activities using the direct method, disclosing major classes of gross cash
receipts and payments related to operating activities. Alternatively, an entity may present operating cash flows using the indirect method.
IFRS 16.50, IAS b. The Group has classified:
7.17(e) – cash payments for the principal portion of lease payments as financing activities;
– cash payments for the interest portion as operating activities consistent with the presentation of interest payments chosen by the Notes
Group (see footnote (e) below); and
– short-term lease payments and payments for leases of low-value assets as operating activities.
The Group has not restated comparative information.
IAS 7.10–11, 43, c. There is no specific guidance in the IFRS Standards on the classification of cash flows from reverse factoring arrangements. However,
Insights 2.3.75.40 in our view it is the nature of the activity, rather than the classification of the related item in the statement of financial position, that
determines the classification of the cash outflow. The Group classifies its cash outflows for payments made to the bank within operating
activities because it views the principal nature of these payments as related to the purchase of goods and services. The Group considers
the payment to a supplier by the bank not to be a cash transaction and has provided disclosure of non-cash transactions. See Note 29.
There may be other acceptable approaches depending on the legal form and structure of reverse factoring arrangements.
IAS 7.31, d. IFRS requires cash flows from interest and dividends received and paid to be disclosed separately. In our view, such disclosure is required
Insights 2.3.50.10- in the statement of cash flows, rather than in the notes. In the absence of specific guidance in IFRS, an entity chooses an accounting policy,
20 to be applied consistently, for classifying interest and dividends paid as either operating or financing activities, and interest and dividends
received as either operating or investing activities. The Group has elected to classify cash flows from interest paid as operating activities,
cash flows from interest received and dividends received as investing activities, and cash flows from dividends paid as financing activities.
Insights 2.3.50.38 e. In our view, an entity should choose an accounting policy, to be applied consistently, to classify cash flows related to capitalised
interest as follows:
Appendices
– as cash flows from investing activities if the other cash payments to acquire the qualifying asset are reflected as investing activities; or
– consistently with interest cash flows that are not capitalised (which has been applied by the Group).
IAS 7.10, IFRS f. The Group has elected to present a statement of cash flows that analyses all cash flows in total – i.e. including both continuing and
5.33(c), discontinued operations; amounts related to discontinued operations by operating, investing and financing activities are disclosed
Insights 5.4.220.50 in Note 7. However, in our view cash flows from discontinued operations may be presented in ways in which the requirements of IFRS
5 Non-current Assets Held for Sale and Discontinued Operations and IAS 7 regarding cash flow presentation may be met.
Notes to the consolidated financial statements

Introduction
IAS 1.10(e) 1. Reporting entity

IAS 1.138(a)-(b) Example Public Company Limited (the ‘Company’) is domiciled in Australia.
IAS 1.51(a)-(c) The Company’s registered office is at [address]. These consolidated financial statements comprise
the Company and its subsidiaries (together referred to as the ‘Group’).
AASB 1054.8(b) The Group is a for-profit entity and is primarily involved in manufacturing paper and paper-related
products, cultivating trees and selling wood (see Note 6(A)).
IAS 1.112(a) 2. Basis of accountinga

AUSTRALIAN CONTENT
AASB 1054.7, 8, 9 The consolidated financial statements are general purpose financial statements which have
S296, S297
been prepared in accordance with Australian Accounting Standards adopted by the Australian
Accounting Standards Board and the Corporations Act 2001. The consolidated financial statements
comply with International Financial Reporting Standards adopted by the International Accounting
Standards Board.They were authorised for issue by the Board of Directors on [date].
IAS 1.16,10.17
Details of the Group’s accounting policies are included in Note 45. Changes to significant
accounting policies are described in Note 5.
3. Functional and presentation currency

These consolidated financial statements are presented in dollars which is the Company’s
functional currency. The Group is of a kind referred to in ASIC Corporations (Rounding in Financial/
IAS 1.51(d)-(e) Directors’ Reports) Instrument 2016/191 and in accordance with that instrument, amounts in
Primary statements
ASIC Instrument the consolidated financial statements and directors’ report have been rounded off to the nearest
2016/191
thousand dollars, unless otherwise stated.
Notes
AASB 1048 a. Compliance with Australian Interpretations is required by AASB 1048 Interpretation and Application of Accounting
Standards. A statement of compliance with Australian Accounting Standards therefore includes a statement of
Appendices
compliance with Australian Interpretations.

IAS 1.16 An entity whose financial statements and notes comply with all IFRS Standards requirements must make an explicit
and unreserved statement of such compliance in the notes. Entities that comply with Australian Accounting
Standards are not automatically in compliance with IFRS Standards, particularly where the Australian specific
exemptions for not-for-profit and public sector entities are utilised.
Technically, there is no requirement to state that an entity does not comply with IFRS Standards.
Illustrative disclosures – notes | 41
Notes to the consolidated financial statements (continued)
Introduction
The following are additional Australian specific disclosures that are included in Note 26,
as appropriate.
26. Capital and reserves
A. Share capital
i. Ordinary shares
IAS1.79(a)(iii) The Company does not have authorised capital or par value in respect of its issued shares.
B. Nature and purpose of reserves
vii. Profits reserve
AUSTRALIAN CONTENT
IAS 1.79(b) The profits reserve represents profits of entities within the Group transferred to a separate reserve
Reporting Update to preserve their profit character. Such profits are available to enable payment of franked dividends
12RU-005
in future years. Dividends amounting to $1,243 thousand (2020: $571 thousand) were distributed
from the profits reserve during the year.
C. Dividends
In thousands of dollars 2021 2020
a
Dividend franking account
AASB 1054.13 Amount of franking credits available to shareholders of Example
Public Company Limited for subsequent financial years 4,122 2,074
The ability to utilise the franking credits is dependent upon the ability to declare dividends.
In accordance with the tax consolidation legislation, the Company as the head entity in the tax-
consolidated group has also assumed the benefit of $4,122 thousand (2020: $2,074 thousand)
franking credits.
Primary statements
Notes
Appendices
AASB 1054.12, 13 a. Separate disclosure is required in respect of any New Zealand imputation credits and any Australian imputation credits.

Introduction
AASB 1054.16 47. Reconciliation of cash flows from operating activities

Note 2021 2020
In thousands of dollars Restated*
a, b
IAS 7.18(b) Cash flows from operating activities
Profit for the periodc 7,552 5,974
Adjustments for:
– Depreciation 21(A) 5,339 5,122
– Amortisation 22(A) 785 795
AUSTRALIAN CONTENT
– (Reversal of) impairment losses on property, plant and equipment 21(B) (393) 1,123
– Impairment losses on intangible assets and goodwill 22(C) 16 285
– Impairment loss on remeasurement of disposal group 20(A) 35 -
– Change in fair value of biological assets 16(A) (587) (28)
– Increase in fair value of investment property 23(A) (20) (60)
– Net finance costs 10 752 1,188
– Share of profit of equity-accounted investees, net of tax 24 (1,141) (587)
– Gain on sale of property, plant and equipment 9(A) (48) (16)
– Gain on sale of discontinued operation, net of tax 7 (516) -
– Equity-settled share-based payment transactions 13(E) 755 248
– Tax expense 14 3,153 2,416
Primary statements
15,682 16,460
Changes in:
– Inventories (1,851) (197)
– Contract assets (489) (782)
– Trade and other receivables (17,163) (5,657)
– Contract liabilities (6) (2)
– Prepayments 870 (305)
– Trade and other payables 6,882 (6,282)
– Provisions and employee benefits 26 274
– Deferred income (38) -
IAS 7.31-32 Interest paidd, e (1,609) (1,289)

IAS 7.35 Taxes paid (400) (1,913)
Notes
IAS 7.10 Net cash from operating activities 1,904 307
IFRS 16.50, a. The Group has classified:

IAS 7.17(e) – cash payments for the principal portion of lease payments as financing activities;
– cash payments for the interest portion as operating activities consistent with the presentation of interest payments chosen by the Group (see footnote (e)
below); and
IAS 7.10–11, 43, b. There is no specific guidance in the IFRS Standards on the classification of cash flows from reverse factoring arrangements. However, in our view it is the nature
of the activity, rather than the classification of the related item in the statement of financial position, that determines the classification of the cash outflow. The
Insights 2.3.75.40
Group classifies its cash outflows for payments made to the bank within operating activities because it views the principal nature of these payments as related to
the purchase of goods and services. The Group considers the payment to a supplier by the bank not to be a cash transaction and has provided disclosure of non-
cash transactions. See Note 29. There may be other acceptable approaches depending on the legal form and structure of reverse factoring arrangements.
IAS 7.18, 20, A, c. The Group has used ‘profit or loss’ as the starting point for presenting operating cash flows using the indirect method. This is the starting point referred to in IAS
7 Statement of Cash Flows, although the example provided in the appendix to the standard starts with a different figure – ‘profit before taxation’. Because the
Insights 2.3.30.20
appendix is illustrative only and therefore does not have the same status as the standard, it would be more appropriate to follow the standard.
IAS 7.31, Insights d. The Standards require cash flows from interest and dividends received and paid to be disclosed separately. In our view, such disclosure is required in the statement of
Appendices
2.3.50.10– 20 cash flows, rather than in the notes. In the absence of specific guidance in the IFRS Standards, an entity chooses an accounting policy, to be applied consistently, for
classifying interest and dividends paid as either operating or financing activities, and interest and dividends received as either operating or investing activities.
The Group has elected to classify cash flows from interest paid as operating activities, cash flows from interest received and dividends received as investing
activities, and cash flows from dividends paid as financing activities.
Interest paid includes the interest portion of the lease liabilities. See footnotes (b) above and (e) below
Insights 2.3.50.38 e. In our view, an entity should choose an accounting policy, to be applied consistently, to classify cash flows related to capitalised interest as follows:
– as cash flows from investing activities if the other cash payments to acquire the qualifying asset are reflected as investing activities; or
– consistently with interest cash flows that are not capitalised.
The Group has presented capitalised interest consistently with interest cash flows that are not capitalised.
Introduction
48. Auditors’ remunerationa, b, c
ASIC Instrument In dollars
2016/191
2021 2020
Audit and review servicesd

Auditors of the Group – KPMG
Audit and review of financial statements – Groupe 658,900 524,360
e
Audit and review of financial statements – controlled entities 1,049,600 689,890
AASB 1054.10(a) 1,708,500 1,214,250
AUSTRALIAN CONTENT
Other auditors
AASB 1054.10(a) Audit and review of financial statements 12,260 11,310
AASB 1054.10(b), 11 Assurance servicesf

Regulatory assurance servicesf, g 43,410 30,860
f, h
Other assurance services 460,510 491,370
503,920 522,230
Other auditors
Other assurance servicesf, h 2,000 2,000
Other servicesf, i
Primary statements
AASB 1054.10(b), 11

Taxation advice and tax compliance services 114,320 96,350
Other auditors
Valuation services 25,000 23,000
a. This illustrative disclosure excludes auditors’ remuneration for associates or joint ventures but includes partnerships
and joint operations. An entity may want to separately disclose auditors’ remuneration for associates and joint
ventures, in which case we recommend additional line items be included within each section for transparency.
b. Although it is not required, this categorisation of fees to auditors is encouraged by ASIC to aid in the consistent and
transparent reporting of audit and non-audit fee information.
c. Disclosures are required regardless of whether the entity or a related entity make the payments. Where fees are paid on
behalf of the entity by a related party outside the consolidated entity, disclosure as a related party transaction is required. Notes
d. Half-year audit and review fees for entities in the group are included in ‘audit and review services’.
e. ASIC encourages fees paid to the Group auditor to be split out separately for those relating to auditing the statutory
financial report of the parent covering the consolidated group; and those relating to auditing the statutory financial
reports of any controlled entities. This disclosure is provided for illustrative purposes only.
f. Although it is not required, ASIC encourages entities to split fees for assurance services from fees for non-assurance
services. They also encourage assurance services to be further split between “regulatory assurance services” and
“other assurance services”.This disclosure is provided for illustrative purposes only.
AASB 1054.10,11 An entity is required to describe the nature of all services provided that do not relate to the audit or review of the
financial statements. There is no requirement to provide an amount for each non-audit service.
S300(2A), However, an entity that has not included detailed amounts for all non-audit services in the directors’ report but has
S300(11B)(a), specified that this information may be found in the financial statements, discloses the amount for each non-audit
S300(11C)(b) service in this note in order to comply with the Corporations Act 2001 requirements.
g. Regulatory assurance services are those that are required under legislation and are performed by the auditor, for
example, Form FS 71 for an AFS licensee, workers compensation, APRA reports, US Sarbanes-Oxley Act of 2002
Appendices
Section 404, franchising code of conduct and retirement villages.

h. Other assurance services are fees for other assurance services other than those included under regulatory
assurance, such as those required under contractual arrangements. Examples include, assurance on revenue
information relevant to a royalty agreement, sustainability assurance reporting and capital raisings.
i. Other services are services that do not fall within regulatory or other assurance services e.g. tax advice, tax
compliance, consulting.

Introduction
49. Deed of cross guaranteea,b

ASIC Instrument 2016/785 Pursuant to ASIC Corporations (Wholly owned Companies) Instrument 2016/785 the wholly‑owned
subsidiaries listed below are relieved from the Corporations Act 2001 requirements for preparation,
audit and lodgement of financial reports, and Directors’ reports.
ASIC Instrument 2016/785 It is a condition of the Instrument that the Company and each of the subsidiaries enter into a
Condition 6(v)(i)-(ii) Deed of Cross Guarantee. The effect of the Deed is that the Company guarantees to each creditor
payment in full of any debt in the event of winding up of any of the subsidiaries under certain
provisions of the Corporations Act 2001. If a winding up occurs under other provisions of the Act,
the Company will only be liable in the event that after six months any creditor has not been paid in
AUSTRALIAN CONTENT
full. The subsidiaries have also given similar guarantees in the event that the Company is wound up.
ASIC Instrument 2016/785 The subsidiaries subject to the Deed are:
Condition 6(v)(i)&(ii)
– Acacia Pty Limited

– Gumnut Limited
– Karooa Pty Limited
ASIC Instrument 2016/785 Karooa Pty Limited became a party to the Deed on 1 January 2021, by virtue of a Deed of
Condition 6(v)(i),(iii)&(iv) Assumption. Tasman Trust was released from its obligations under the Deed by executing
Revocation Deeds on 30 March 2021.
Acacia Pty limited obtained relief pursuant to the Instrument for the year ended 30 June 2020,
however, whilst still party to the Deed, is not eligible for relief in the current year as it has become
a small propriety company. It was a large proprietary company in the previous financial year.
Primary statements
ASIC Instrument 2016/785 A consolidated statement of comprehensive income and consolidated statement of financial
Condition 6(v)(i),(v)&(vi) position, comprising the Company and controlled entities which are a party to the Deed, after
eliminating all transactions between parties to the Deed of Cross Guarantee, for the year ended
30 June 2021 is set out as follows:
Notes
ASIC Instrument a. Summarised consolidated income statement and balance sheet disclosures for each of the following groups of entities
2016/785 as at the reporting date must be included in the consolidated financial statements of the Holding Entity:
– the Closed Group
– the group comprising the Holding Entity and all of its controlled entities that are parties to the Deed of Cross
Guarantee (i.e. including controlled entities not wholly owned)
– parties to the Deed of Cross Guarantee which are not controlled entities (either individually or in aggregate).
In some circumstances, the disclosures required for each of the above will not differ as all the parties to the Deed of
Cross Guarantee will be members of the Closed Group. This is the case in Example Public Company Limited group.
These are only the financial report conditions for obtaining relief under the legislative instrument. The legislative
Appendices
instrument must be referred to for full details and conditions.

ASIC Instrument b. Comparative information is only required where the holding entity was a holding entity in a deed of cross guarantee
2016/785 at any time during the immediately preceding financial year.
Introduction
49. Deed of cross guarantee (continued)
ASIC Instrument Statement of profit or loss and other comprehensive income and retained earnings
2016/785 Condition
6(v)(v)&(vi)
2021 2020
Revenue (x) (x)
Cost of sales (x) (x)
Gross profit (x) (x)
AUSTRALIAN CONTENT
Operating expenses (x) (x)
Finance income (x) (x)
Finance costs (x) (x)
Share of profit of equity-accounted investees (x) (x)
Profit before tax (x) (x)
Tax expense (x) (x)
Profit after tax (x) (x)
Items that will be reclassified to profit or loss: (x) (x)
Revaluation of property, plant and equipment, net of tax (x) ((x)
Items that are or may be reclassified subsequently to profit or loss: (x) (x)
Effective portion of changes in fair value of cash flow hedges, net of tax (x) (x)
Primary statements
Other comprehensive income for the year, net of tax (x) (x)
Total comprehensive income for the period, net of tax (x) (x)
Retained earnings at beginning of year (x) (x)
Transfers to and from reserves (x) (x)
Reduction in retained earnings on share buy‑back (x) (x)
Dividends recognised during the year (x) (x)
Retained earnings at end of year (x) (x)
Attributable to:
Owners of the Company (x) (x)
Non-controlling interests (x) (x)
Profit for the period (x) (x)
* See Notes 7, 21(H) and 44. Notes
Appendices

Introduction
49. Deed of cross guarantee (continued)

Statement of financial position
30 June 2021 30 June 2020 1 July 2019
In thousands of dollars Restated* Restated*
Assets
Cash and cash equivalents x x x
Trade and other receivables x x x
Contract assets x x x
AUSTRALIAN CONTENT
Inventories x x x
Biological assets x x x
Other investments, including derivatives x x x
Current tax assets x x x
Prepayments x x x
Assets held for sale x x x
Current assets x x x
Other investments, including derivatives x x x
Equity accounted investees x x x
Investment property x x x
Deferred tax assets x x x
Property, plant and equipment x x x
Biological assets x x x
Primary statements
Intangible assets and goodwill x x x

Non-current assets x x x
Total assets x x x
Liabilities
Bank overdraft x x x
Contract liabilities x x x
Trade and other payables, including derivatives x x x
Loans and borrowings x x x
Employee benefits x x x
Current tax liabilities x x x
Provisions x x x
Deferred income/revenue x x x
Liabilities held for sale x x x
Current liabilities x x x
Notes
Loans and borrowings x x x

Derivatives x x x
Employee benefits x x x
Deferred income/revenue x x x
Provisions x x x
Deferred tax liabilities x x x
Non-current liabilities x x x
Total liabilities x x x
Net assets x x x
Equity
Appendices
Share capital x x x
Reserves x x x
Retained earnings x x x
Total equity x x x
* See Note 44.
Introduction
50. Parent entity disclosuresa
S295(2), S295(3)(a), As at, and throughout, the financial year ended 30 June 2021 the parent entity of the Group was
Reg 2M.3.01
Example Public Company Limited.
Reg 2M.3.02
Reg 2M.3.01 (1)(k)
2021 2020
Result of parent entity
Reg 2M.3.01(1)(f) Profit for the period xx xx
AUSTRALIAN CONTENT
Other comprehensive income xx xx
Reg 2M.3.01(1)(g) Total comprehensive income for the period xx xx
Financial position of parent entity at year end

Reg 2M.3.01(1)(a) Current assets xx xx
Reg 2M.3.01(1)(b) Total assets xx xx
Reg 2M.3.01(1)(c) Current liabilities xx xx

Reg 2M.3.01(1)(d) Total liabilities xx xx
Reg 2M.3.01(1)(e) Total equity of the parent entity comprising of:
Primary statements
Share capital xx xx
Revaluation reserve xx xx
Reserve for own shares xx xx
Profits reserve xx xx
Retained earnings xx xx
Total equity xx xx
* See Notes 7, 21(H) and 44.
Parent entity contingent liabilities

Reg 2M.3.01(1)(i) The directors are of the opinion that provisions are not required in respect of these matters, as it
is not probable that a future sacrifice of economic benefits will be required, or the amount is not
capable of reliable measurement.
In thousands of dollars Note 2021 2020
Contingent liabilities not considered remote Notes
Litigation (a) xx xx
Performance guarantees (b) xx xx
GST liabilities of other entities within the GST group xx xx
Tax liabilities of other entities within the tax
consolidated group xx xx
(a) The parent entity is defending an action brought by an environmental agency in Europe.
While liability is not admitted, if defence against the action is unsuccessful, fines and legal
costs could amount to $950 thousand (2020: nil) of which $250 thousand (2020: nil) would
be reimbursable under an insurance policy. Based on legal advice, the directors do not expect
the outcome of the action to have a material effect on the parent entity’s financial position.
In the directors’ opinion, disclosure of any further information would be prejudicial to the
Appendices
interests of the Group.
Reporting Update a. Parent entities that are APRA regulated or hold an Australian Financial Services Licence are recommended to continue
10RU-024 to present the parent entity financial statements and notes in the group annual report.
Introduction

50. Parent entity disclosures (continued)
Parent entity contingent liabilities (continued)
(b) The parent entity has guaranteed, to an unrelated party, the performance of a subsidiary in
relation to a contract for the supply of paper. In the event of default, the terms of the contract
contain a minimum compensation payment to the unrelated party of $600,000. The contract
is due to be fulfilled by 31 December 2021.
Reg 2M.3.01(1)(j) Parent entity capital commitments for acquisition of property plant and equipment
AUSTRALIAN CONTENT
During the year the Company entered into contracts to purchase plant and equipment for $x,xxx
thousand (2020: $x,xxx thousand).
Reg 2M.3.01(1)(h) Parent entity guarantees in respect of the debts of its subsidiaries
The parent entity has entered into a Deed of Cross Guarantee with the effect that the Company
guarantees debts in respect of certain subsidiaries.
Further details of the Deed of Cross Guarantee and the subsidiaries subject to the deed are
disclosed in Note 49.
Primary statements
Notes
Appendices
Illustrative disclosures – Directors’ declaration | 49
Directors’ declaration
Introduction
S295(4) 1. In the opinion of the directors of Example Public Company Limited (the ‘Company’):
a) the consolidateda financial statements and notes that are set out on pages xx to xxx and
the Remuneration reportb in sections xx to xxx in the Directors’ report, are in accordance
with the Corporations Act 2001, including:
S295(4)(d)(ii) (i) giving a true and fair view of the Group’sa financial position as at 30 June 2021 and of
its performance for the financial year ended on that date; and
S295(4)(d)(i) (ii) complying with Australian Accounting Standards and the Corporations Regulations
2001; and
S295(4)(c), b) there are reasonable grounds to believe that the Company will be able to pay its debts as
AUSTRALIAN CONTENT
ASIC RG22 and when they become due and payable.c
2. There are reasonable grounds to believe that the Company and the group entities identified
in Note 49 will be able to meet any obligations or liabilities to which they are or may become
subject to by virtue of the Deed of Cross Guarantee between the Company and those group
entities pursuant to ASIC Corporations (Wholly owned Companies) Instrument 2016/785.b
S295(4)(e) 3. The directors have been given the declarations required by Section 295A of the Corporations
Act 2001 from the chief executive officer and chief financial officer for the financial year ended
30 June 2021.
S295(4)(ca) 4. The directors draw attention to Note 2 to the consolidated financial statements, which
includes a statement of compliance with International Financial Reporting Standards.
S295(5)(a) Signed in accordance with a resolution of the directors:
Dated at ................................. [city] ............................... day of ............................ 2021
Primary statements
S295(5)(b)
S295(5)(c) ________________________
[Director_name]
Director d
Notes
a. Entities that are including parent entity financial statements (not only consolidated financial statements) will need
Appendices
to tailor this to reflect the parent entity’s financial statements, financial position and performance.
S295(5) b. The Corporations Act does not require the Directors’ declaration to refer to the Remuneration report.
c. Refer to the AUASB and AASB’s joint publication regarding going concern and solvency statements, “The Impact of
COVID-19 on Going Concern and related Assessments”
d. The declaration may be signed by more than one director.
ASX additional information

Introduction
a,b,c,d
Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this
report is set out below.
Shareholdings (as at 30 June 2021)
ASX 4.10.4 Substantial shareholders
The number of shares held by substantial shareholders and their associates is set out below:
Shareholder
Example Investment Holdings (Australia) Limited
Voting rights
AUSTRALIAN CONTENT
ASX 4.10.6 Ordinary shares

Refer to Note 26 in the financial statements
ASX 4.10.6 Options
There are no voting rights attached to the options
ASX 4.10.6 Rights
There are no voting rights attached to the rights
ASX 4.10.6 Redeemable preference shares
There are no voting rights attached to the redeemable preference shares
ASX 4.10.6 Non-redeemable preference shares
There are no voting rights attached to the non-redeemable preference shares
Primary statements
ASX 4.10.6 Redeemable convertible notes

Refer to Note 28 in the financial statements
Distribution of equity security holders
Number of equity security holder
Category Ordinary Convertible Redeemable Redeemable

shares Options Rights preference preference convertible notes
1 – 1,000 182 52 – – – 10
1,001 – 5,000 71 21 – – – 2
5,001 – 10,000 45 32 – – 15 –
10,001 – 100,000 23 – 2 – 32 –
100,001 and over 1 – 1 2 1 –

322 105 3 2 48 12
The number of shareholders holding less than a marketable parcel of ordinary shares is 105.
Notes
ASX 4.10.19 a. If an entity was admitted under Rule 1.3.2(b), in its first two annual reports after admission, a statement about
whether the entity used the cash and assets in a form readily convertible to cash that it had at the time of admission
in a way consistent with its business objectives must be included in the annual report. If the use was inconsistent,
an explanation of how the cash and assets were used are to be disclosed.
The statement in the first annual report must be for the time between admission and the end of the reporting period.
The statement in the second annual report must be for the whole of the reporting period.
ASX 4.10.20 b. If the entity is an investment entity, each of the following must be disclosed:
– a list of all investments held by it and its child entities
– the total number of transactions in securities during the reporting period, together with the total brokerage paid or
accrued during the period
– the total management fees paid or accrued during the reporting period, together with a summary of any
management agreement.
Appendices
ASX 4.10.15 c. If the entity is a mining exploration entity, a list of interests in mining tenements held and location of tenements,
together with the percentage interest therein, must be disclosed.
ASX 5.6 In the case of a mining company, statements contained in the annual report should comply with Listing Requirements
in Appendix 5A.
ASX 4.10 d. Information is to be made up to a date not earlier than six weeks before the annual audited financial report is sent
to shareholders.
Illustrative disclosures – ASX additional information | 51
ASX additional information (continued)
Introduction
ASX 4.10.22 Securities purchased on-marketa
The following securities were purchased on market during the financial for the purpose of the
employee incentive share scheme:
Number of shares Average price paid
purchased per share
Ordinary Shares 12,500 $10.25
ASX 4.10.16 Unquoted equity securities

Redeemable preference shares
Portfolio Asset Management Limited holds 250,000 redeemable preference shares,
AUSTRALIAN CONTENT
representing 25 per cent of the total number on issue.
Redeemable convertible notes
Insurance Investments Limited and Trust Securities Limited each hold 1,200 redeemable
convertible notes. These holdings each represent 24 per cent of the total number on issue.
ASX 4.10.13
Securities exchangeb
The Company is listed on the Australian Securities Exchange. The Home exchange is Sydney.
IAS 1.138(a) Other information
Example Public Company Limited, incorporated and domiciled in Australia, is a publicly listed
company limited by shares.
ASX 4.10.18 On-market buy-back
[There is no current on-market buy-back]
ASX 4.10.9
Twenty largest shareholders
Primary statements
Number of ordinary Percentage of
Name shares held capital held
1 Example Investment Holdings (Australia) Ltd 1,700,000 52.2
2 Aust. Nominees Limited 98,150 3.0
3 New Life Association Limited 65,400 2.0
4 Queens Trustee Limited 62,800 1.9
5 Australian Assurance Co. Limited 43,905 1.3
6 JTD Nominees Pty Limited 42,700 1.3
7 S & K Mutual Limited 42,450 1.3
8 Bank Insurance Co. Limited 41,320 1.3
9 The Life Assurance Company Limited 41,300 1.3
10 Superannuation Trustee Pty Limited 34,750 1.1
11 PLC Superannuation Fund Limited 32,720 1.0
12 Regal Insurance Pty Limited 31,400 1.0
13 Fund Managers Limited 30,100 0.9
14 Investment Placements Pty Limited 26,295 0.8
15 Credit Union Investments Limited 25,600 0.8 Notes
16 Employees Trust Fund Pty Limited 24,800 0.7
17 Securities Investment Pty Limited 22,480 0.7
18 Employee Pension Fund Pty Limited 21,290 0.7
19 Institutional Investor Limited 12,800 0.4
20 Investment Management Limited 12,240 0.4
2,412,500 74.1
Number of convertible Percentage of
ASX 4.10.9 Name preference shares held capital held
Substantial Investor Limited 250,000 50.0
Large Investments Limited 250,000 50.0
500,000 100.0
ASX 4.10.22 a. The information is included where securities are purchased on-market:
– under or for the purposes of an employee incentive scheme; or
Appendices
– to satisfy the entitlements of the holders of options or other rights to acquire securities granted under an employee
incentive scheme.
This disclosure may be included in the remuneration report.
ASX 4.10.13 b. If applicable, the ASX also requires disclosure of details of the following in the Annual Report:
ASX 4.10.14 – a list of other stock exchanges on which any of the securities are quoted
– the number of restricted securities and the date from which the securities may be sold.
ASX additional information (continued)

Introduction
Offices and officers

ASX 4.10.11 Principal Registered Officea
Example Public Company House
20 Sydney Street
Sydney NSW 2000
Telephone: (02) 9120-2020
Facsimile: (02) 9120-2045
Internet: www.examplepublic.com.au
AUSTRALIAN CONTENT
ASX 4.10.10 Company Secretary

Ms Rachel M Parish, BA, MBA, LLB
ASX 4.10.12 Locations of Share Registries
Sydney Melbourne
ABC Registrars Pty Ltd ABC Registrars Pty Ltd
Level 3, 111 Hunter Street Level 1, 526 Collins Street
Sydney NSW 2000 Melbourne VIC 3000
GPO Box 1234 Box 123456 GPO
Sydney NSW 2001 Melbourne VIC 3001
Telephone: (02) 9123-4567 Telephone: (03) 9123-4567
Facsimile: (02) 9234-4567 Facsimile: (03) 9234-5678
Primary statements
Notes
Appendices
ASX 4.10.11 a. If the principal administrative office differs from the principal registered office, the address and telephone number of the
principal administrative office and the principle registered office must be disclosed.
Illustrative disclosures – Voluntary tax disclosures | 53
Voluntary tax disclosures: Part A
Introduction
The disclosures on the following pages illustrate one way in which an entity might incorporate Part A
of the Tax Transparency Code (The Code) requirements, released by the Board of Taxation in May 2016,
within its annual financial statements. The Code disclosures are divided into:
• Part A (Financial statements or other report – for businesses with a turnover of AU$100 million
or over)
• Part B (‘Taxes Paid’ report – for businesses with a turnover of A$500 million or over).
The Code is a voluntary code. An entity may therefore wish to disclose that it is voluntarily adopting the
Code, and to what extent it is doing it – whether it is doing Part A and Part B disclosures; and where
other taxes might be reported elsewhere.
AUSTRALIAN CONTENT
The Code proposes that where a business is only required to adopt Part A, that the information can be
displayed either as improved tax disclosure in its general purpose financial report or in another document.
An entity will need to consider whether a separate report would achieve the objectives of the Code, or
whether it could include the information in its financial statements in a manner that provides the desired
level of transparency and ‘plain English’ explanation.
Comparative information is not required for the first year of disclosure.
In May 2017, the Australian Accounting Standards Board (AASB), at the request of the Board of Taxation,
included an Appendix to the Code, providing draft guidance on implementing the Code. The guidance
sets out the necessary disclosures to ensure interested parties can better understand the differences,
if any, between the effective tax rate (ETR) under the Code and the accounting ETR prepared in
accordance with accounting standards. The calculation of the ETR is consistent with the example
included in these financial statements.
On 29 February 2019, the Board of Taxation released a consultation paper which proposed changes
to the Code following feedback from earlier consultation sessions. The submission date for feedback was
26 March 2019. At the date of this publication there have been no decisions on changes to the Code.
Primary statements
Notes
Appendices
Voluntary tax disclosures: Part A (continued)

Introduction
Extension of Note 14(D)

Reconciliation of accounting profit to income tax expense to income tax payable
Note 2021 2020
Profit before tax from continuing operations 10,351 8,856
Tax using the Company’s domestic tax rate 33% 3,416 2,922
Non temporary differences

AUSTRALIAN CONTENT
Share of profit of equity-accounted investees reported (377) (194)

net of tax
Effect of tax rates in foreign jurisdictions (73) (49)
Non-deductible expenses 245 36
Tax incentives (88) (63)
Changes in estimates related to prior years 116 (34)
Other movements (61) (158)
Total non temporary differences (238) (462)
Income tax expense on continuing operations 3,178 2,460

a
Income tax expense on discontinued operations 7 305 (44)
Primary statements
Total consolidated income tax expense 3,483 2,416
Temporary differences
Amounts recognised in OCIb - -
Amounts recognised directly in equityb - -
Net movement in deferred tax balancesc 14(E) 1 1,100
Total temporary differences 1 1,100
Income taxes payable for the current financial year 3,482 3,516
Income taxes payable at the beginning of the year 1,633 30
Less: Tax paid during the year (400) (1,913)
Income taxes payable as at 30 Juned 4,717 1,633
Represented in the Statement of financial position by:
Current tax liabilities 4,751 1,693
Notes
Current tax assets (34) (60)

4,717 1,633
a. The reconciliation to the effective income tax expense illustrated in Example Public commences with ‘Profit before tax from
continuing operations’. To calculate the effective tax rate for continuing and discontinued operations, this reconciling item is
required. Where an entity commences from a basis of continuing and discontinued operations, this reconciling item will not
be required.
b. There may be items recognised in or recycled out of other comprehensive income (OCI), or recognised in equity that result in
movements in temporary differences. Whilst Example Public Company Limited did not have such items for the years ended
Appendices
30 June 2021 and 2020, these should be separately disclosed where the client has these and they are material.
c. This illustrative disclosure cross-references to the note to the financial statements where the net movement in deferred tax
balances is further disaggregated. Such detail could be included here rather than providing a cross-reference.
d. The reconciliation to income taxes payable can also be extended to income taxes paid. Alternatively, the Code states that a
reconciliation from income tax expense to income taxes paid could be provided. If presented in the annual financial statements,
this would necessitate reconciling the prior year tax expense as taxes are usually paid in the subsequent financial year.
Illustrative disclosures – Voluntary tax disclosures | 55
Voluntary tax disclosures: Part A (continued)
Introduction
Effective tax rates (ETR)
Bases of calculation of each ETR a, b, c
Global operations – Total consolidated tax expense ETR: IFRS calculated total consolidated
company income tax expense divided by total consolidated accounting profit on continuing and
discontinued operations.
Australian operations – Australian company income tax expense ETR: IFRS calculated
company income tax expense for all Australian companies and Australian operations of overseas
companies included in these consolidated financial statements, divided by accounting profit
AUSTRALIAN CONTENT
derived by all Australian companies and Australian operations of overseas companies included in
these consolidated financial statements.
The Company income tax expense ETR: IFRS calculated company income tax expense for the
parent Company divided by accounting profit on continuing and discontinued operations for the
parent Company.d
2021 2020
Percentage Restated*
ETRe
Global operations – Total consolidated tax expense 31.56% 25.32%
Australian operations – Australian company income tax expense 25.68% 28.81%
The Company income tax expense 35.54% 37.59%
Primary statements
Notes
a. The ETRs should be calculated as company income tax expense divided by accounting profit. Calculation of the ETR based on
company tax expense only will enable the users of the disclosure to make comparisons both to the company tax rate and to
other companies. The Board of Taxation has specified that the global ETR should be calculated ‘for the worldwide accounting
consolidated group’ of which the Australian operations form a part.
b. As required in the Code, this example includes company income taxes only. No adjustments have been made for other taxes
as Example Public Company Limited does not have taxes other than company income tax that meets the AASB 112 definition
of income taxes and therefore is in the scope of AASB 112. Other taxes (for example, government royalties, PRRT) could be
included in an additional ETR disclosure. The basis of calculation of the ETR should clearly identify what has been included and
any underlying assumptions.
Appendices
c. The Code does not specify which entity needs to provide the disclosures, for example the ETR could be calculated on a tax
consolidated group basis or on a legal entity basis or another basis. The key to providing transparency is to clearly identify any
basis of calculation.
d. Disclosure of the Company (that is, the parent) ETR is not required by the Code. This is additional to what is required.
e. While not provided in this illustrative disclosure, an explanation of variances to the domestic company tax rate and movements
year on year should be provided.
Introduction
[Name of the Company]
Consolidated financial statements

Australian content
31 December 2020
PRIMARY STATEMENTS
Notes
Appendices
© 2020
© 2020 KPMG,
KPMG, an
an Australian
partnership and
and aa member
member firm
firm of
of the
the KPMG
KPMG global
global organisation
organisation of
of independent
independent member
member firms
firms affiliated
affiliated with
with KPMG
KPMG International
Limited, aa private
private English
English
company
company limited
limited by
by guarantee.
guarantee. All
All rights
rights reserved.
reserved. The
The KPMG
KPMG name
name and
and logo
logo are
are trademarks
trademarks used
used under
under license
license by
by the
the independent
independent member
member firms
firms of
of the
the KPMG
KPMG global
organisation.
Illustrative
Illustrativedisclosures
disclosures––Primary
Financial
statements
highlights | 57
Financial highlights a
Introduction
REVENUE OPERATING ADJUSTED
PROFIT EBITDA
(Thousand euro) (Thousand euro) (Thousand euro)
6.3% 5.3% 6.2%
Australian content
102,860
9,962
16,782
9,457
96,719
15,744
PRIMARY STATEMENTS
2020 2019 2020 2019 2020 2019
REVENUE BASIC DIVIDENDS

BY REGIONb EARNINGS PER ORDINARY
PER SHARE SHARE
Other (Euro) (Cent)
countries
2020
9% [Country X] 0.46 21.69

US 2019 29%
20% 9%
29%
19%
25.97
2.15
22% 21% Notes

1.69
21%
21%
Germany Netherlands
4.28
2020 2019 2020 2019

Appendices
a. The comparative information is restated on account of correction of errors. See Note 44.
b. Includes revenues of discontinued operation (see Notes 6(D)(i) and 7).
Consolidated statement of financial position

Introduction
d
31 December 31 December 1 January
te
IAS 1.10(a), 10(ea)–(f),
Note 2020 2019 2019
a
29, 38–38A, 40A–40B, b b, c
In thousands of euro Restated* Restated*
id
54–55, 113
ol
Assets
ns
IAS 1.54(a) Property, plant and equipmentd 21 28,490 33,230 37,118
Co
IAS 1.54(c) Intangible assets and goodwill 22 6,226 4,661 5,429
Biological assets 16 4,698 4,025 3,407
le
IAS 1.54(f)
Investment propertyd 400 300
y
IAS 1.54(b), 17.49 23 1,520
on s t
IAS 1.54(e) Equity-accounted investees 24 2,489 1,948 1,530
iti an
IAS 1.54(d) Other investments, including derivativese 25 3,616 3,512 3,221
os ali
Australian content
IAS 1.54(o), 56 Deferred tax assets 14 2,251 2,108 985
l p tr
IAS 1.55 Employee benefits 13 671 731 716
ia us
f
IAS 1.60 Non-current assets 49,961 50,615 52,706
nc r A
IAS 1.54(f) Biological assets na fo 16 32 31 29
IAS 1.54(g) Inventoriesg 17 12,148 12,119 11,587
f fi 32
IAS 1.55 Contract assetsh 8 1,271 782 -

IAS 1.54(d) Other investments, including derivativese 25 662 1,032 947
t o ge
IAS 1.54(n) Current tax assets 34 60 -

en pa
IAS 1.54(h) Trade and other receivables 18 32,518 22,325 17,651

Prepaymentsi
em to
IAS 1.55 330 1,200 895

Cash and cash equivalents 19 1,504 1,849 2,529
at r
IAS 1.54(i)
st fe
IFRS 5.38, 40, IAS 1.54(j) Assets held for sale 20 14,400 - -
PRIMARY STATEMENTS
Re
IAS 1.60 Current assetsf 62,899 39,398 33,638

Total assets 112,860 90,013 86,344
IAS 1.10 a. An entity may also use other titles – e.g. ‘balance sheet’ – as long as the meaning is clear and the title not misleading.
Insights 2.8.50.110 b. When comparatives are restated, in our view, although it is not specifically required by IFRS Standards, labelling
the comparatives as restated is necessary to highlight that the comparatives are not the same as the financial
statements published previously.
Similarly, when new standards are applied but comparative information has not been restated due to the transition
method elected (e.g. when recognising the cumulative effect of applying new standards in the opening balance of
equity), it may be useful to highlight that fact.
IAS 1.10(f), 40A c. The Group has presented a third statement of financial position as at the beginning of the preceding period, because
the correction of errors (see Note 44) has a material effect on the information in the statement.
Notes
IFRS 16.47(a), 48 d. The Group has presented right-of-use assets that do not meet the definition of investment property within ‘property,
plant and equipment’ – i.e. the same line item in which it presents underlying assets of the same nature that it owns.
Alternatively, an entity may choose to present right-of-use assets separately in the statement of financial position.
Right-of-use assets that meet the definition of investment property are presented within ‘investment property’.
Insights 7.10.40.50 e. In our view, derivative assets and liabilities should be presented in separate line items in the statement of financial
position if they are significant.
IAS 1.60–61 f. The Group has made a current/non-current distinction in the statement of financial position. An entity may present its
assets and liabilities broadly in order of liquidity if such a presentation provides information that is reliable and more
relevant. Our publication Guide to annual financial statements – Illustrative disclosures for banks provides an example
presentation of assets and liabilities in order of liquidity.
IFRS 15.B21, BC367 g. IFRS 15 and other standards do not specify where assets for rights to recover products from customers with regards
to sales with a right of return should be presented. The Group has included these assets within ‘inventories’ and
disclosed them separately in the notes (see Note 17).
IAS 1.54–55, h. Although it is not specifically required, the Group has presented in the statement of financial position line items
Appendices
IFRS 15.105, 109, related to contract assets and contract liabilities. For further guidance on applying the requirements in IAS 1 for
A, BC320–BC321, classification of contract assets and contract liabilities as current or non-current, see 4.2.510 in Insights into IFRS.
Insights 4.2.510
Although this guide uses the terms ‘contract assets’ and ‘contract liabilities’, an entity may also use other terms.
IAS 1.66, i. The Group has classified prepayments as current because they relate to the purchase of inventories and are expected
Insights 3.1.30 to be realised within 12 months of the reporting date. An entity should apply the requirements in IAS 1 in determining
whether to classify prepayments as current or non-current.
Illustrative disclosures – Primary statements | 59
Consolidated statement of financial position (continued)
Introduction
31 December 31 December 1 January
IAS 1.10(a), 10(ea)–(f),
d
Note 2020 2019 2019
29, 38–38A, 40A–40B,
te
b b, c
54–55, 113 In thousands of euro Restated* Restated*
a
id
Equity
ol
IAS 1.54(r), 78(e) Share capital 14,979 14,550 14,550
ns
IAS 1.55, 78(e) Share premium 4,777 3,500 3,500
Co
IAS 1.54(r), 78(e) Reserves 1,219 439 297
IAS 1.55, 78(e) Retained earnings 20,443 13,786 8,497
e
yl
Equity attributable to owners of the Company 26 41,418 32,275 26,844
on s t
IAS 1.54(q) Non-controlling interests 35 3,804 3,091 2,718
iti an
Australian content
Total equity 45,222 35,366 29,562
os ali
Liabilities
l p tr
Loans and borrowingsj 23,758 20,877 22,204
ia us
IAS 1.54(m) 28
IAS 1.55, 78(d) Employee benefits nc r A 13 912 453 1,136
IAS 1.54(k) Trade and other payablesk 29 290 5 4
na fo
IAS 1.55 Deferred income 30 1,424 1,462 -

f fi 32
IAS 1.54(l) Provisions 31 1,010 - 740

t o ge
IAS 1.54(o), 56 Deferred tax liabilities 14 549 406 323

en pa
f
IAS 1.60 Non-current liabilities 27,943 23,203 24,407
Bank overdraft 334 282 303
em to
IAS 1.55 19
Current tax liabilities 4,751 1,693 25
PRIMARY STATEMENTS
IAS 1.54(n)
at r
st efe

Employee benefits 20 388 13
R
IAS 1.55, 78(d) 13

IAS 1.54(k) Trade and other payablesk, l 29 24,013 21,328 28,250
IAS 1.55 Contract liabilities 8 160 166 -
IAS 1.55 Deferred income 30 - - 140
IAS 1.54(l) Provisions 31 660 1,540 140
IFRS 5.38, 40, Liabilities directly associated with the assets
IAS 1.54(p) held for sale 20 4,410 - -
f
IAS 1.60 Current liabilities 39,695 31,444 32,375
Total liabilities 67,638 54,647 56,782
Total equity and liabilities 112,860 90,013 86,344
Notes
IFRS 16.47(b) j. The Group has presented lease liabilities within ‘loans and borrowings’. Alternatively, an entity (a lessee) may choose
to present lease liabilities separately from other liabilities in the statement of financial position.
IFRS 15.55 k. The Group has presented its refund liabilities under IFRS 15 as ‘trade and other payables’. The Group’s returns policy
offers only an exchange for another good – i.e. the Group does not offer a cash refund. Therefore, refund liabilities
do not meet the definition of a financial liability in IAS 32 Financial Instruments: Presentation. If a refund liability or a
liability related to a repurchase agreement meets the definition of a financial liability in IAS 32, then it is subject to the
disclosure requirements in IFRS 7 Financial Instruments: Disclosures.
Appendices
Insights 3.1.10.30, l. The Group has presented amounts owed for the purchase of goods or services but related to reverse factoring within
7.10.35.70–100 ‘trade and other payables’ because it considers that the nature and function of the financial liability is not different
from other trade payables and does not warrant a separate presentation on the face of the statement of financial
position. In our view, regardless of whether the original trade payable is derecognised, an entity should consider the
appropriate presentation of amounts related to reverse factoring arrangements in the statement of financial position.
The Group has disclosed those amounts separately in the notes. See Note 29.

Introduction
other comprehensive income a, b
For the year ended 31 December

IAS 1.10(b), 10A, 29, Note 2020 2019
s
38–38A, 81A–85, 113 In thousands of euro Restated*
os
co fit yle
e rl
in ro st
Revenuec, d 102,860 96,719
m o
IAS 1.82(a) 8
ve f p n
IAS 1.99, 103 Cost of salese 9(C) (55,432) (56,186)
si t o lia
IAS 1.103 Gross profit 47,428 40,533
en en tra
Australian content
eh m us
IAS 1.99, 103 Selling and distribution expensese 9(C) (18,322) (15,865)
pr ate r A
IAS 1.99, 103 Administrative expensese 9(C) (17,732) (14,428)
Research and development expensese
om st fo
IAS 1.99, 103, 38.126 9(C) (1,109) (697)
Impairment loss on trade receivables and contract assetsf 32(C)(ii) (200) (190)
IAS 1.82(ba)
r c ed 34
he at ge
g
ot id a
d sol o p
d
Finance costsh (1,883) (1,635)
an n r t
IAS 1.82(b)
Co fe

Re
PRIMARY STATEMENTS

IFRS 5.33(a),
IAS 1.82(ea) Profit (loss) from discontinued operation, net of taxi 7 379 (422)
Notes
Appendices
Introduction
other comprehensive income (continued)
IAS 1.10(b), 10A, 29, Note 2020 2019

Items that will not be reclassified to profit or loss
s
IAS 1.82A(a)(i)
os
co fit yle
IAS 1.85 Revaluation of property, plant and equipment 21(F) 200 -
e rl
Remeasurements of defined benefit liability (asset) 13(B) 72 (15)
in ro st
IAS 1.85
m o
IFRS 7.20(a)(vii) Equity investments at FVOCI – net change in fair value 26(D) 141 59
ve f p n
Australian content
Equity-accounted investees – share of OCI 15 (3)
si t o lia
IAS 1.82A(b)(i) 24, 26(D)
Related taxj 14(B) (137) (14)
en en tra
IAS 1.91(b)
291 27
eh m us
Items that are or may be reclassified subsequently to
pr ate r A
IAS 1.82A(a)(ii)
profit or loss
om st fo
r c ed 34

Equity-accounted investees – share of OCI (172) (166)
he at ge
IAS 1.82A(b)(ii) 24, 26(D)

ot id a
d sol o p

IFRS 7.24C(b)(i) Cash flow hedges – effective portion of changes in fair valuek 26(D) (62) 95
an n r t
PRIMARY STATEMENTS
IFRS 7.24C(b)(iv),
Co fe
IAS 1.92 Cash flow hedges – reclassified to profit or lossk, l 26(D) (31) (12)
Re

IAS 1.92 Cost of hedging reserve – reclassified to profit or lossl 26(D) 8 2
IFRS 7.20(a)(viii),
IAS 1.92 Debt investments at FVOCI – reclassified to profit or lossl 26(D) (64) -
IAS 1.91(b) Related taxj 14(B) 19 (48)
442 404
Notes
Appendices

Introduction
other comprehensive income (continued)

IAS 1.10(b), 10A, 29, Note 2020 2019
s
os
co fit yle
e rl
in ro st
Owners of the Company 7,055 5,623
m o
IAS 1.81B(a)(ii)
ve f p n
si t o lia
7,552 5,974
en en tra
Australian content
eh m us
pr ate r A
om st fo 8,285 6,405
r c ed 34
IAS 33.4 Earnings per share
he at ge
IAS 33.66 Basic earnings per share (euro) 11 2.15 1.69

ot id a
d sol o p
IAS 33.66 Diluted earnings per share (euro) 11 2.04 1.68

Earnings per share – Continuing operations
an on r t
Basic earnings per share (euro) 11 2.02 1.83

C fe
IAS 33.66
Re
IAS 33.66 Diluted earnings per share (euro) 11 1.92 1.82

PRIMARY STATEMENTS
Adjusted earnings before interest, tax, depreciation and

amortisation (adjusted EBITDA)m 15 15,744 16,782
information has also been re‑presented due to a discontinued operation and a change in classification. See
Notes 7 and 21(H) respectively.
Notes
IAS 1.10A a. The Group has elected to present comprehensive income using a ‘one-statement’ approach. For an illustration of the
alternative ‘two-statement’ approach, see Appendix II.
IAS 1.82 b. IAS 1 requires the separate presentation of specific line items in the statement of profit or loss. The Group has not
presented certain line items because during the reporting period it did not have events or transactions to be reflected
in those line items. See footnotes (c) and (d) below for specific considerations related to separate presentation of line
items in the statement of profit or loss.
IFRS 15.113, c. It appears that an entity is not required to present revenue from contracts with customers as a separate line item
IAS 1.29–30, 85, in the statement of profit or loss and may aggregate it with other types of revenue considering the requirements in
Insights 4.2.560.25 IAS 1. However, in providing a separate disclosure of revenue from contracts with customers – either in the notes
or in the statement of profit or loss – we believe that an entity should not include amounts that do not fall in the scope
of IFRS 15 (see Note 8).
IAS 1.82(a), d. The Group has presented interest income on financial assets that are subsequently measured at amortised cost
Insights 7.10.60.30 or FVOCI as part of ‘finance income’ because it does not consider it as part of its revenue-generating activities.
If the interest income, calculated using the effective interest method, constituted revenue, then the entity would be
Appendices
required to separately present that income as interest revenue in the statement of profit or loss and OCI. It appears
that an entity may present interest income from other financial assets in another revenue line item if it arises in the
course of the entity’s ordinary activities.
IAS 1.99–100 e. The Group has elected to analyse expenses recognised in profit or loss based on functions within the Group.
Alternatively, an entity may present the analysis based on nature if this presentation provides information that is
reliable and more relevant. The analysis may also be presented in the notes.
Introduction
Australian content
IAS 1.82(ba), 85, f. An entity that presents the analysis of expenses by function or by nature in the statement of profit or loss and
PRIMARY STATEMENTS
31, 97, 99, OCI may face challenges in determining how this presentation interacts with the specific requirements to present
Insights 4.1.20.40 the effect of some events or circumstances as a single amount in the statement of profit or loss and OCI – e.g.
impairment losses determined under Section 5.5 of IFRS 9 Financial Instruments.
The Group has applied judgement in determining an appropriate presentation and disaggregated the impairment loss
amount into:
– impairment related to trade and other receivables, including contract assets, which is presented separately in the
statement of profit or loss and OCI; and
– impairment related to investments in debt securities, which is not presented separately but included under ‘finance
costs’ due to materiality considerations.
The Group believes that this presentation is relevant to an understanding of its financial performance.
IAS 1.85, g. The Group has presented a subtotal of ‘operating profit’. When an entity presents results from operating activities, it
BC55–BC56 ensures that the amount disclosed is representative of activities that would normally be regarded as ‘operating’, and
it would be inappropriate to exclude items clearly related to operations.
IAS 1.82(b), h. The Group has presented interest expense on the lease liability separately from the depreciation charge for the right-
IFRS 16.49, 7.IG13 of-use asset. Interest expense on the lease liability is a component of finance costs, which are presented separately
in the statement of profit or loss and OCI.
IFRS 5.33(a)–(b), i. The Group has elected to disclose a single amount of post-tax profit or loss of discontinued operations in the Notes
IAS 1.82(ea) statement of profit or loss and OCI, and has analysed that single amount into revenue, expenses and the pre-tax profit
or loss in Note 7. Alternatively, an entity may present the analysis in the statement.
IAS 1.90–91 j. The Group has elected to present individual components of OCI before related tax with an aggregate amount
presented for tax in the statement of profit or loss and OCI, and has provided disclosures related to tax on each
component of OCI in Note 14(B). Alternatively, an entity may present individual components of OCI net of related tax
in the statement.
IFRS 9.6.5.11, k. IFRS 9 specifies whether and when amounts previously recognised in OCI are reclassified to profit or loss. However,
6.5.15, in some circumstances it may be unclear at the time when a gain or loss is recognised in OCI whether it will
IAS 1.82A(a), subsequently be reclassified to profit or loss. For example, if an entity hedges a future purchase of a non-financial
Insights 7.10.90.35 item, then the related hedging gains and losses will subsequently be included in the initial cost of the non-financial
item and affect profit or loss when the non-financial item is disposed of or written down. Conversely, if the future
hedged cash flows are no longer expected to occur or if a loss is no longer expected to be recoverable, then the
hedging gains or losses will be reclassified to profit or loss. Accordingly, in our view gains or losses on cash flow
hedges and costs of hedging relating to the future recognition of a non-financial asset or liability should be presented
Appendices
in OCI as items that may be subsequently reclassified to profit or loss when specific conditions are met.
IAS 1.94 l. The Group has elected to present reclassification adjustments in the statement of profit or loss and OCI.
Alternatively, an entity may present these adjustments in the notes.
IAS 1.85–85B, m. The Group has disclosed adjusted EBITDA because management believes that this measure is relevant to an
BC38G, understanding of the entity’s financial performance. This disclosure is provided for illustrative purposes only.
Insights 4.1.150 See Note 15.
Consolidated statement of changes in
Consolidated statement of changes in equity

Introduction
equity
es
For the year ended 31 December 2020
ng
ha
fc
IAS 1.10(c), 29, 108, Share Share Translation
to
113 In thousands of euro Note capital premium reserve
en
Balance at 1 January 2019, as previously reported 14,550 3,500 (119)
em
IAS 1.106(b) Impact of correction of errors 44 - - -
Restated balance at 1 January 2019 14,550 3,500 (119)
at
st
Total comprehensive income for the period (restated)
Australian content
Profit for the period - - -
d
IAS 1.106(d)(i)
te
IAS 1.106(d)(ii), 106A Other comprehensive income for the period 14(B), 26(D) - - 275
a
Total comprehensive income for the period (restated) - - 275
id
IAS 1.106(a)
ol
ns
transferred to the cost of inventory Co - - -
IAS 1.106(d)(iii) Transactions with owners of the Company
Contributions and distributions
st 6
e
Treasury shares acquireda

an 3
- - -
yl
26(B)
ty li e
ui tra ag
Equity-settled share-based paymentb 13(E), 14(C) - - -

eq us p
Total transactions with owners of the Company - - -

in r A r to
Restated balance at 31 December 2019 14,550 3,500 156

PRIMARY STATEMENTS
fo fe
Balance at 1 January 2020 14,550 3,500 156

Re
Total comprehensive income for the period

IAS 1.106(d)(i) Profit for the period - - -
IAS 1.106(d)(ii), 106A Other comprehensive income for the period 14(B), 26(D) - - 458
IAS 1.106(a) Total comprehensive income for the period - - 458
transferred to the cost of inventory - - -
IAS 1.106(d)(iii) Contributions and distributions
Issue of ordinary shares 26(A) 390 1,160 -
Issue of ordinary shares related to business combinations 34(A) 24 63 -
Issue of convertible notes 14(C), 28(C) - - -
Treasury shares solda 26(B) - 19 -
Equity-settled share-based paymentb 13(E), 14(C) - - -
Notes
Share options exercised 26(A) 15 35 -

Total contributions and distributions 429 1,277 -
IAS 1.106(d)(iii) Changes in ownership interests
Acquisition of NCI without a change in control 36 - - 8
Acquisition of subsidiary with NCI 34 - - -
Total changes in ownership interests - - 8
Total transactions with owners of the Company 429 1,277 8
Balance at 31 December 2020 14,979 4,777 622
Appendices
IAS 32.33, a. The Standards do not mandate a specific method of presenting treasury shares within equity. However, local laws
Insights may prescribe the allocation method. Therefore, an entity needs to take into account its legal environment when
7.3.560.10–20 choosing how to present its own shares within equity. An entity needs to choose a presentation format, to be applied
consistently to all treasury shares. The Group has elected to present the total cost of treasury shares as a separate
category of equity.
Introduction
d
te
Equity
a
id
Cost of component Non-
Treasury
ol
hedging Hedging Fair value Revaluation share of convertible Retained controlling
reserve reserve reserve reserve reserve notes earnings Total interests Total equity
ns
Co
(35) 434 17 - - - 8,440 26,787 2,718 29,505
- - - - - - 57 57 - 57
le
(35) 434 17 - - - 8,497 26,844 2,718 29,562
ty ty
ui n s
Australian content
- - - - - - 5,623 5,623 351 5,974
eq lia
9 56 82 - - - (13) 409 22 431
in tra
9 56 82 - - - 5,610 6,032 373 6,405
es us
ng r A
(1) 1 - - - - - - - -
ha fo
f c 36
- - - - (280) - - (280) - (280)

t o ge
- - - - - - (571) (571) - (571)

en pa
- - - - - - 250 250 - 250

- - - - (280) - (321) (601) - (601)
em to
(27) 491 99 - (280) - 13,786 32,275 3,091 35,366
PRIMARY STATEMENTS
at r
st fe
(27) 491 99 - (280) - 13,786 32,275 3,091 35,366

Re
- - - - - - 7,055 7,055 497 7,552

27 (62) 87 134 - - 63 707 26 733
27 (62) 87 134 - - 7,118 7,762 523 8,285
4 4 - - - - - 8 - 8
- - - - - - - 1,550 - 1,550
- - - - - - 120 207 - 207
- - - - - 109 - 109 - 109
- - - - 11 - - 30 - 30
- - - - - - (1,243) (1,243) - (1,243)
- - - - - - 755 755 - 755 Notes
- - - - - - - 50 - 50
- - - - 11 109 (368) 1,458 - 1,458
- - - - - - (93) (85) (115) (200)

- - - - - - - - 305 305
- - - - - - (93) (85) 190 105
- - - - 11 109 (461) 1,373 190 1,563
4 433 186 134 (269) 109 20,443 41,418 3,804 45,222
Appendices
IAS 1.78(e), 79(b), b. Generally, IFRS 2 Share-based Payment does not address whether an increase in equity recognised in connection
108, Insights with a share-based payment transaction should be presented in a separate component within equity or within
4.5.900.30 retained earnings. In our view, either approach is allowed under the Standards. The Group has elected to present
this increase in retained earnings.
Consolidated statement of cash flows

Introduction

IAS 1.10(d), 29, Note 2020 2019
38–38A, 113 In thousands of euro Restated*
IAS 7.18(b) Cash flows from operating activitiesa, d

Profit for the periodb 7,552 5,974
Adjustments for:
h yle
s
w
– Deferred income 30 (38) -
as s t
flo
– (Reversal of) impairment losses on property, plant and
f c an
Australian content
equipment 21(B) (393) 1,123
t o ali
– Impairment losses on intangible assets and goodwill 22(C) 16 285
– Impairment loss on remeasurement of the disposal group 35 -
en str
20(A)
– Change in fair value of biological assets 16(A) (587) (28)
em Au
– Increase in fair value of investment property 23(A) (20) (60)
at r
st 8 fo

– Gain on sale of property, plant and equipment 9(A) (48) (16)
ed 3
– Gain on sale of discontinued operation, net of tax 7 (516) -

at ge
– Equity-settled share-based payment transactions 13(E) 755 248

id a
ol p
– Tax expense 14 3,153 2,416

ns r to
15,644 16,460
PRIMARY STATEMENTS
Changes in:
Co efe
– Inventories (1,851) (197)

R
– Contract assets (489) (782)

– Trade and other receivables (17,163) (5,657)
– Contract liabilities (6) (2)
– Prepayments 870 (305)
– Trade and other payablesc 6,882 (6,282)
– Provisions and employee benefits 26 274
IAS 7.31–32 Interest paidc, e, f (1,609) (1,289)
IAS 7.35 Income taxes paid (400) (1,913)
IAS 7.31 Interest receivede 6 19
IAS 7.31 Dividends receivede 26 32
IAS 7.16(b) Proceeds from sale of property, plant and equipment 3,085 397
Notes
IAS 7.16(d), (h) Proceeds from sale of investments 1,476 534

IAS 7.39 Disposal of discontinued operation, net of cash disposed ofg 7 10,890 -
IAS 7.39 Acquisition of subsidiary, net of cash acquired 34 (1,799) -
IAS 7.16(a) Acquisition of property, plant and equipment (15,657) (2,228)
IAS 7.16(a) Acquisition of investment property 23(A) (300) (40)
IAS 7.16(a) Purchase of non-current biological assets 16(A) (305) (835)
IAS 7.16(c), (g) Acquisition of other investments (359) (342)
IAS 24.18 Dividends from equity-accounted investees 24(A) 21 -
IAS 7.16(a) Development expenditure 22(A), (D) (1,235) (503)
Receipt of government grant 30 - 1,462
IAS 7.10 Net cash used in investing activities (4,151) (1,504)
Appendices
IAS 7.18–19 a. The Group has elected to present cash flows from operating activities using the indirect method. Alternatively, an
entity may present operating cash flows using the direct method, disclosing major classes of gross cash receipts and
payments related to operating activities (see Appendix III).
IAS 7.18, 20, A, b. The Group has used ‘profit or loss’ as the starting point for presenting operating cash flows using the indirect method.
Insights 2.3.30.20 This is the starting point referred to in IAS 7 Statement of Cash Flows, although the example provided in the appendix
to the standard starts with a different figure – ‘profit before taxation’. Because the appendix is illustrative only and
therefore does not have the same status as the standard, it would be more appropriate to follow the standard.
Consolidated statement of cash flows (continued)
Introduction
IAS 1.10(d), 29, Note 2020 2019
38–38A, 113 In thousands of euro Restated*

IAS 7.17(a) Proceeds from issue of share capital 26(A) 1,550 -
h yle
s
Proceeds from issue of convertible notes 5,000 -
w
IAS 7.17(c) 28(C)
as s t
flo
IAS 7.17(c) Proceeds from issue of redeemable preference shares 28(D) 2,000 -
Proceeds from loans and borrowings 4,439
f c an
IAS 7.17(c) 591
IAS 7.17(a) Proceeds from sale of treasury shares 30 -
t o ali
IAS 7.17(a) Proceeds from exercise of share options 26(A) 50 -
en str
IAS 7.16(h) Proceeds from settlement of derivatives 5 11
Australian content
em Au
IAS 7.21 Transaction costs related to loans and borrowings 28(C)–(D) (311) -
IAS 7.42A Acquisition of NCI 36 (200) -
at r
st 8 fo
IAS 7.17(b) Repurchase of treasury shares - (280)
IAS 7.17(d) Repayment of borrowings ed 3 (5,055) (2,445)
IAS 7.17(e) Payment of lease liabilitiesc (554) (590)
at ge
IAS 7.31, 34 Dividends paide 26(C) (1,243) (571)
id a
Net cash from financing activities 564

ol p
IAS 7.10 1,863

ns r to

Cash and cash equivalents at 1 January** 1,567 2,226
Co efe
R
Cash and cash equivalents at 31 December** 19 1,170 1,567
PRIMARY STATEMENTS
IAS 7.45 ** Cash and cash equivalents includes bank overdrafts that are repayable on demand and form an integral part of
IFRS 16.50, c. The Group has classified:

IAS 7.17(e) – cash payments for the principal portion of lease payments as financing activities;
– cash payments for the interest portion as operating activities consistent with the presentation of interest payments
chosen by the Group (see footnote (e) below); and
IAS 7.10–11, 43, d. There is no specific guidance in IFRS Standards on the classification of cash flows from reverse factoring
Insights 2.3.75.40 arrangements. However, in our view it is the nature of the activity, rather than the classification of the related item
in the statement of financial position, that determines the classification of the cash outflow. The Group classifies
its cash outflows for payments made to the bank within operating activities because it views the principal nature of
these payments as related to the purchase of goods and services. The Group considers the payment to a supplier by Notes
the bank not to be a cash transaction and has provided disclosure of non-cash transactions. See Note 29. There may
be other acceptable approaches depending on the legal form and structure of reverse factoring arrangements.
IAS 7.31, e. The Standards require cash flows from interest and dividends received and paid to be disclosed separately. In our view,
Insights 2.3.50.10– such disclosure is required in the statement of cash flows, rather than in the notes. In the absence of specific guidance
20 in IFRS Standards, an entity chooses an accounting policy, to be applied consistently, for classifying interest and
dividends paid as either operating or financing activities, and interest and dividends received as either operating or
investing activities. The Group has elected to classify cash flows from interest paid as operating activities, cash flows from
interest received and dividends received as investing activities, and cash flows from dividends paid as financing activities.
Interest paid includes the interest portion of the lease liabilities. See footnotes (c) above and (f) below.
Insights 2.3.50.38 f. In our view, an entity should choose an accounting policy, to be applied consistently, to classify cash flows related to
capitalised interest as follows:
– as cash flows from investing activities if the other cash payments to acquire the qualifying asset are reflected as
investing activities; or
– consistently with interest cash flows that are not capitalised.
Appendices
The Group has presented capitalised interest consistently with interest cash flows that are not capitalised.
IAS 7.10, g. The Group has elected to present a statement of cash flows that includes an analysis of all cash flows in total – i.e.
IFRS 5.33(c), including both continuing and discontinued operations; amounts related to discontinued operations by operating,
Insights 5.4.220.50 investing and financing activities are disclosed in Note 7(B). However, in our view there are numerous ways in which
the requirements of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations and IAS 7 regarding cash
flow presentation may be met.
IAS 1.10(e)
Notes to the consolidated financial statementsion of

Introduction
1. Reporting entity vers

[Name of the Company] (the Company) is domiciled in [Country X].rThe
o edCompany’s registered
l
IAS 1.51(a)–(b),
taisicomprise
138(a)–(b)
office is at [address]. These consolidated financial statements the Company and its
subsidiaries (together referred to as the ‘Group’). Thea
a l i n
Group
c y”
primarily involved in manufacturing
n
u str
paper and paper-related products, cultivating trees and selling wood (see Note
u re
6(A)).
r
2. Basis of accounting f o r A ty”, ”,
i io nc
e
0 enhave
4statements t beeniprepared
t at
ng nin taccordance
IAS 1.16, 112(a), 116,
a g
These consolidated financial
i n g Company’s
u n e s e with IFRS Standards.
p ort co pr
10.17
They were authorised for issue by the board of directors on [date].
r to p a c d
Details ofethe Group’se
f of n changes thereto, are included in Note 45 and
R5.e te 1. R asis onal a
Australian content
accounting policies, including

Note
3. “N
o
Functional e 2. Band n cti
presentation currency
o t F u
. statements are presented in euro, which is the Company’s functional
N e 3financial
These“consolidated
IAS 1.51(d)–(e)
currency. All o
t
“N
amounts have been rounded to the nearest thousand, unless otherwise indicated.
4. Use of judgements and estimatesb

In preparing these consolidated financial statements, management has made judgements and
estimates that affect the application of the Group’s accounting policies and the reported amounts
of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates
Primary statements
are recognised prospectively.

A. Judgements
IAS 1.122 Information about judgements made in applying accounting policies that have the most significant
effects on the amounts recognised in the financial statements is included in the following notes:
– Note 8(D) – revenue recognition: whether revenue from made-to-order paper products is
recognised over time or at a point in time;
– Note 24(B) – equity-accounted investees: whether the Group has significant influence over an
investee;
– Note 29 – reverse factoring: presentation of amounts related to supplier finance arrangements in
the statement of financial position and in the statement of cash flow;
– Note 33(A) – consolidation: whether the Group has de facto control over an investee; and
– Note 38(B) – lease term: whether the Group is reasonably certain to exercise extension options.
NOTES
IAS 1.113–114 a. Notes are presented, to the extent practicable, in a systematic order and are cross-referred to/from items in the
primary statements. In determining a systematic manner of presentation, an entity considers the effect on the
understandability and comparability of the financial statements. The Group has applied judgement in presenting
related information together in a manner that it considers to be most relevant to an understanding of its financial
performance and financial position. The order presented is only illustrative and entities need to tailor the organisation
Appendices
of the notes to fit their specific circumstances.

b. The UK and the EU have both ratified the Withdrawal Agreement for the UK to leave the EU on 31 January 2020.
Under the Withdrawal Agreement, there is a transition period until the end of December 2020. During this period, EU
rules continue to apply to the UK. To the extent that an entity has any potential exposure to the risks associated with
Brexit, it needs to assess the impact of those risks on its financial reporting and provide an update of relevant entity-
specific disclosures. Such disclosures are not illustrated in this guide.
Illustrative disclosures – Notes 69
Basis of preparation
Introduction
4. Use of judgements and estimates (continued)
B. Assumptions and estimation uncertainties
IAS 1.125, 129–130 Information about assumptions and estimation uncertainties at 31 December 2020 that have a
significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities
in the next financial year is included in the following notes:
– Notes 8(D) and 29 – revenue recognition: estimate of expected returns;

– Note 13(D)(i) – measurement of defined benefit obligations: key actuarial assumptions;
– Note 14(H) – recognition of deferred tax assets: availability of future taxable profit against which
Australian content
deductible temporary differences and tax losses carried forward can be utilised;
– Note 14(I) – uncertain tax treatments;
– Note 16(B) – determining the fair value of biological assets on the basis of significant
unobservable inputs;
– Note 20(D) – determining the fair value less costs to sell of the disposal group on the basis of
significant unobservable inputs;
– Note 22(C) – impairment test of intangible assets and goodwill: key assumptions underlying
recoverable amounts, including the recoverability of development costs;
– Notes 31 and 40 – recognition and measurement of provisions and contingencies: key
assumptions about the likelihood and magnitude of an outflow of resources;
– Note 32(C)(ii) – measurement of ECL allowance for trade receivables and contract assets: key
Primary statements
assumptions in determining the weighted-average loss rate; and
– Notes 34(A) and (C) – acquisition of subsidiary: fair value of the consideration transferred
(including contingent consideration) and fair value of the assets acquired and liabilities assumed,
measured on a provisional basis.
i. Measurement of fair values
A number of the Group’s accounting policies and disclosures require the measurement of fair
values, for both financial and non-financial assets and liabilities.
IFRS 13.93(g) The Group has an established control framework with respect to the measurement of fair values.
This includes a valuation team that has overall responsibility for overseeing all significant fair value
measurements, including Level 3 fair values, and reports directly to the chief financial officer.
The valuation team regularly reviews significant unobservable inputs and valuation adjustments.
If third party information, such as broker quotes or pricing services, is used to measure fair values,
then the valuation team assesses the evidence obtained from the third parties to support the NOTES
conclusion that these valuations meet the requirements of the Standards, including the level in
the fair value hierarchy in which the valuations should be classified.
Significant valuation issues are reported to the Group’s audit committee.

Appendices

Introduction
4. Use of judgements and estimates (continued)

B. Assumptions and estimation uncertainties (continued)
i. Measurement of fair values (continued)
When measuring the fair value of an asset or a liability, the Group uses observable market data as
far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the
inputs used in the valuation techniques as follows.
– Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
– Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Australian content
– Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the
fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level
of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
IFRS 13.95 The Group recognises transfers between levels of the fair value hierarchy at the end of the
reporting period during which the change has occurred.
Further information about the assumptions made in measuring fair values is included in the
following notes:
– Note 12(B) – share-based payment arrangements;a
Primary statements
– Note 16(B) – biological assets;

– Note 20(D) – disposal group held for sale;
– Note 23(C) – investment property;
– Note 32(B) – financial instruments; and
– Note 34(C)(i) – acquisition of subsidiary.b
NOTES
Appendices
IFRS 13.6(a) a. The Group has included in the list above a reference to the disclosures about the measurement of fair values for
share-based payment arrangements. However, the measurement and disclosure requirements of IFRS 13 Fair Value
Measurement do not apply to these arrangements.
IFRS 13.BC184 b. The Group has disclosed information about the fair value measurement of assets acquired in a business combination,
although the disclosure requirements of IFRS 13 do not apply to the fair value of these assets if they are subsequently
measured at other than fair value. This disclosure is provided for illustrative purposes only.
Basis of preparation
Introduction
IAS 8.28 5. Changes in significant accounting policiesa
The Group has initially adopted Definition of a Business (Amendments to IFRS 3) and Interest Rate
Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7) from 1 January 2020. A number of
other new standards are also effective from 1 January 2020 but they do not have a material effect
on the Group’s financial statements.b
The Group applied Definition of a Business (Amendments to IFRS 3) to business combinations

whose acquisition dates are on or after 1 January 2020 in assessing whether it had acquired a
business or a group of assets. The details of accounting policies are set out in Note 45A(i). See also
Note 34 for details of the Group’s acquisition of subsidiary during the year.
Australian content
The Group applied the interest rate benchmark reform amendments retrospectively to hedging
relationships that existed at 1 January 2020 or were designated thereafter and that are directly
affected by interest rate benchmark reform. These amendments also apply to the gain or loss
accumulated in the cash flow hedging reserve that existed at 1 January 2020. The details of the
accounting policies are disclosed in Note 45(O)(v). See also Note 32(C)(iv) for related disclosures
about risks and hedge accounting.
Primary statements
NOTES
IAS 8.28 a. The description of the nature and effects of the changes in accounting policies presented is only an example that
reflects the business of the Group, and may not be representative of the nature and effects of the changes for
other entities. It is given for illustrative purposes largely without regard to materiality.
Amendments to standards and interpretations that are effective for annual periods beginning on 1 January 2020 are
Appendices
described in Appendix I.
IAS 1.38 b. Comparative information is generally required in respect of the preceding period for all amounts reported in the
current period’s financial statements and, if it is relevant to understanding the current period’s financial statements,
also for narrative and descriptive information. However, when entities adopt new accounting standards without
restating comparative information, the disclosure requirements of the new standards do not normally apply to the
comparative period because the comparative information reflects the requirements of the superseded standards.

Introduction
6. Operating segmentsa
A. Basis for segmentation
IFRS 8.20–22 The Group has the following six strategic divisions, which are its reportable segments. These
divisions offer different products and services, and are managed separately because they require
different technology and marketing strategies.
The following summary describes the operations of each reportable segment.
Reportable segmentsb Operations

Non-recycled Papers Buying, manufacturing and distributing pulp and paper
Australian content
Recycled Papers Buying, recycling and distributing pulp and paper

Packaging (sold in February 2020; Designing and manufacturing packaging materials
see Note 7)
IAS 41.46(a) Forestry Cultivating and managing forest resources and related
services
Timber Products Manufacturing and distributing softwood lumber,
plywood, veneer, composite panels, engineered lumber,
raw materials and building materials
Research and Development (R&D) Conducting research and development activities
The Group’s chief executive officer reviews the internal management reports of each division at
least quarterly.
Primary statements
IFRS 8.16, Other operations include the cultivation and sale of farm animals (sheep and cattle), the construction
IAS 41.46(a)
of storage units and warehouses, the rental of investment property and the manufacture of furniture
and related parts (see Notes 8 and 16). None of these segments met the quantitative thresholds for
reportable segments in 2020 or 2019.
IFRS 8.27(a) There are varying levels of integration between the Forestry and Timber Products segments, and
the Non-recycled Papers and Recycled Papers segments. This integration includes transfers of raw
materials and shared distribution services, respectively. Inter-segment pricing is determined on an
arm’s length basis.
NOTES
IFRS 8.IN13, 27–28 a. Operating segment disclosures are consistent with the information reviewed by the chief operating decision maker
(CODM) and will vary from one entity to another and may not be in accordance with the Standards.
To help users of the financial statements understand the segment information presented, an entity discloses
information about the measurement basis adopted – e.g. the nature and effects of any differences between the
measurements used in reporting segment information and those used in the entity’s financial statements, the nature
and effect of any asymmetrical allocations to reportable segments and reconciliations of segment information to the
corresponding amounts reported in the financial statements.
The Group’s internal measures used in reporting segment information are consistent with the Standards. Therefore,
Appendices
the reconciling items are limited to items that are not allocated to reportable segments, as opposed to a difference in
the basis of preparation of the information.
IFRS 8.12, 22(aa) b. When two or more operating segments are aggregated into a single operating segment, the judgements made by
management in applying the aggregation criteria are disclosed. This includes a brief description of the operating
segments that have been aggregated in this way and the economic indicators that have been assessed in
determining that the aggregated operating segments share similar economic characteristics.
Performance for the year
Introduction
6. Operating segments (continued)
B. Information about reportable segments
i. Assets*
2020
Timber
Products 5%
2% R&D
2019**
2%
5%
Forestry
Australian content
26%
33%
23%
44%
Non-recycled
Papers
17% 20%
Packaging
(discontinued)
23%
Recycled Papers
ii. External revenues*
2020
Primary statements
4% 2%
7%
2019**
3%
3%
19%
28% 56% 59%
19%
iii. Profit before tax* NOTES

2020
Other 7%
segments
2019**
18%
44%
39% 54%
38%
Appendices
* As a percentage of the total for all reportable segments. Excludes other segments.
** The Group has changed its internal organisation and the composition of its reportable segments.
See page 78 for details.

Introduction

B. Information about reportable segments (continued)
IFRS 8.27 Information related to each reportable segment is set out below. Segment profit (loss) before tax
is used to measure performance because management believes that this information is the most
relevant in evaluating the results of the respective segments relative to other entities that operate
in the same industries.
Reportable segments*
IFRS 8.16 2020 Non-recycled Recycled
In thousands of euro Papers Papers
Australian content
IFRS 8.23(a), 32 External revenuesa 64,112 30,367

IFRS 8.23(b) Inter-segment revenuea - 317
Segment revenue 64,112 30,684
IFRS 8.21(b), 23 Segment profit (loss) before tax 7,730 5,599
IFRS 8.23(c) Interest incomea 109 42
IFRS 8.23(d) Interest expensea (597) (445)
IFRS 8.23(e) Depreciation and amortisationa (2,128) (1,583)
IFRS 8.23(g) Share of profit (loss) of equity-accounted investeesa 1,109 -
IFRS 8.23(i) Other material non-cash items:a
– Impairment losses on trade receivables and contract assets (114) (74)
IAS 36.129(a), 130(d)(ii) – Impairment losses on non-financial assets - -
IAS 36.129(b), 130(d)(ii) – Reversal of impairment losses on non-financial assets 493 -
Segment assetsa
Primary statements
IFRS 8.21(b) 43,263 23,025

IFRS 8.24(a) Equity-accounted investees 2,209 -
IFRS 8.24(b) Capital expenditure 8,697 5,765
IFRS 8.21(b) Segment liabilitiesa 39,399 12,180
* The comparative information is restated on account of correction of errors (see Note 44).
** See Note 7.
NOTES
Appendices
Introduction
Reportable segments*
Packaging Timber Research and Total reportable All other

(discontinued)** Forestry Products Development segments segments Total
Australian content
7,543 3,967 2,700 - 108,689 1,714 110,403
940 2,681 1,845 875 6,658 891 7,549
8,483 6,648 4,545 875 115,347 2,605 117,952
(162) 1,240 (263) 101 14,245 771 15,016
- 45 10 - 206 4 210
- (391) (85) - (1,518) (5) (1,523)
(623) (1,139) (248) (201) (5,922) (202) (6,124)
- 32 - - 1,141 - 1,141
(11) (7) (5) - (211) - (211)

- - (116) - (116) - (116)
- - - - 493 - 493
Primary statements
- 25,209 4,521 2,323 98,341 9,059 107,400
- 280 - - 2,489 - 2,489
- 1,158 545 1,203 17,368 560 17,928
- 6,390 1,236 169 59,374 237 59,611
NOTES
Appendices
IFRS 8.23 a. The Group has disclosed these amounts for each reportable segment because they are regularly reviewed by
the CODM.
IFRS 8 Operating Segments does not specify the disclosure requirements for a discontinued operation; nevertheless,
if the CODM regularly reviews the financial results of the discontinued operation (e.g. until the discontinuance is
completed), and the definition of an operating segment is otherwise met, then an entity may need to disclose such
information to meet the core principle of IFRS 8.

Introduction

B. Information about reportable segments (continued)
Reportable segments (restated)*
2019 Non-recycled Recycled

IFRS 8.16 In thousands of euro Papers Papers
IFRS 8.23(a), 32 External revenuesa 67,085 22,060

IFRS 8.23(b) Inter-segment revenuea - 323
Segment revenue 67,085 22,383
IFRS 8.21(b), 23 Segment profit (loss) before tax 4,483 3,819
Australian content
IFRS 8.23(c) Interest incomea 91 24

IFRS 8.23(d) Interest expensea (577) (355)
IFRS 8.23(e) Depreciation and amortisationa (2,180) (1,276)
IFRS 8.23(g) Share of profit (loss) of equity-accounted investeesa 561 -
IFRS 8.23(i) Other material non-cash items:a
– Impairment losses on trade receivables and contract assets (129) (41)
IAS 36.129(a), 130(d)(ii) – Impairment losses on non-financial assets (1,408) -
IAS 36.129(b), 130(d)(ii) – Reversal of impairment losses on non-financial assets - -
IFRS 8.21(b) Segment assetsa 26,967 16,003
IFRS 8.24(a) Equity-accounted investees 1,700 -
IFRS 8.24(b) Capital expenditure 1,136 296
IFRS 8.21(b) Segment liabilitiesa 26,907 14,316
Primary statements
IFRS 8.29 * As a result of the acquisition of Papyrus Pty Limited (Papyrus) during the year ended 31 December 2020 (see
Note 22), the Group has changed its internal organisation and the composition of its operating segments,
which resulted in a change in reportable segments. Accordingly, the Group has restated the previously reported
segment information for the year ended 31 December 2019.
** See Note 7.
NOTES
Appendices
Introduction
Reportable segments (restated)*
All other
Packaging Timber Research and Total reportable segments
(discontinued)** Forestry Products Development segments (restated)** Total
23,193 3,483 2,985 - 118,806 1,106 119,912

2,835 2,676 1,923 994 8,751 765 9,516
26,028 6,159 4,908 994 127,557 1,871 129,428
(466) 997 1,280 67 10,180 195 10,375
Australian content
- 27 7 - 149 2 151
- (301) (63) - (1,296) (3) (1,299)
(1,250) (696) (201) (165) (5,768) (149) (5,917)
- 26 - - 587 - 587
(3) (20) - - (193) - (193)

- - - - (1,408) - (1,408)
- - - - - - -
13,250 18,470 3,664 1,946 80,300 3,403 83,703
- 248 - - 1,948 - 1,948
127 722 369 123 2,773 150 2,923
2,959 4,540 1,456 158 50,336 454 50,790
Primary statements
NOTES
Appendices
IFRS 8.23 a. The Group has disclosed these amounts for each reportable segment because they are regularly reviewed by
the CODM.
IFRS 8 does not specify the disclosure requirements for a discontinued operation; nevertheless, if the CODM
regularly reviews the financial results of the discontinued operation (e.g. until the discontinuance is completed),
and the definition of an operating segment is otherwise met, then an entity may need to disclose such information
to meet the core principle of IFRS 8.

Introduction

C. Reconciliations of information on reportable segments to the amounts
reported in the financial statements
2020 2019
In thousands of euro Note Restated*
IFRS 8.28(a) i. Revenues

Total revenue for reportable segments 115,347 127,557
Revenue for other segments 2,605 1,871
Elimination of inter-segment revenue (7,549) (9,516)
Elimination of discontinued operations 7 (7,543) (23,193)
Australian content
Consolidated revenue 102,860 96,719

IFRS 8.28(b) ii. Profit before tax
Total profit before tax for reportable segments 14,245 10,180
Profit before tax for other segments 771 195
Elimination of inter-segment profit (2,263) (1,349)
Elimination of discontinued operation 7 162 466
Unallocated amounts:
– Other corporate expenses (2,564) (636)
Consolidated profit before tax from continuing operations 10,351 8,856
IFRS 8.28(c) iii. Assets
Total assets for reportable segments 98,341 80,300
Primary statements
Assets for other segments 9,059 3,403

Other unallocated amounts 5,460 6,310
Consolidated total assets 112,860 90,013
IFRS 8.28(d) iv. Liabilities
Total liabilities for reportable segments 59,374 50,336
Liabilities for other segments 237 454
Other unallocated amounts 8,027 3,857
Consolidated total liabilities 67,638 54,647
* See Notes 6(B), 7 and 44.
NOTES
Appendices
Introduction
C. Reconciliations of information on reportable segments to the amounts
reported in the financial statements (continued)
IFRS 8.28(e) v. Other material items
Reportable
2020 segment Consolidated
In thousands of euro totals Adjustments totals
Interest income 206 4 210

Interest expense (1,518) (5) (1,523)
Capital expenditure 17,368 560 17,928
Australian content
Depreciation and amortisation (5,922) (202) (6,124)
Impairment losses on non-financial assets – goodwill (116) - (116)
Reversal of impairment losses on non-financial assets –
property, plant and equipment and intangible assets 493 - 493
Impairment losses on trade receivables and contract assets (211) - (211)
Reportable
segment
2019 totals Consolidated
In thousands of euro (restated)* Adjustments totals
Interest income 149 2 151

Interest expense (1,296) (3) (1,299)
Capital expenditure 2,773 150 2,923
Depreciation and amortisation (5,768) (149) (5,917)
Primary statements
Impairment losses on non-financial assets – property, plant
and equipment and intangible assets (1,408) - (1,408)
Impairment losses on trade receivables and contract assets (193) - (193)
* See Notes 6(B), 7 and 44.
IFRS 8.33(a)–(b) D. Geographic informationa, b

The Non-recycled Papers, Recycled Papers and Forestry segments are managed on a worldwide
basis, but operate manufacturing facilities and sales offices primarily in [Country X], the
Netherlands, Germany, the UK and the US.
The geographic information analyses the Group’s revenue and non-current assets by the
Company’s country of domicile and other countries. In presenting the geographic information,
segment revenue has been based on the geographic location of customers and segment assets
were based on the geographic location of the assets.
NOTES
Insights 5.2.220.20 a. In our view, entity-wide disclosures by region (e.g. Europe or Asia) do not meet the requirement to disclose
information by individual foreign country (e.g. France, the Netherlands or Singapore) when it is material.
Appendices
IFRS 8.32, IG5 b. As part of the required ‘entity-wide disclosures’, an entity discloses revenue from external customers for each
product and service, or each group of similar products and services, regardless of whether the information is used by
the CODM in assessing segment performance. This disclosure is based on the financial information used to produce
the entity’s financial statements. The Group has not provided additional disclosures in this regard, because the Group
has already met that disclosure requirement by providing the external revenue information in Note 6(B), which has
been prepared in accordance with the Standards, and the disaggregated revenue information in Note 8.

Introduction

D. Geographic information (continued)
i. Revenue
2020 2019
In thousands of euro Restated*
[Country X] (of which €4,149 thousand (2019: €12,781 thousand) relates

to discontinued packaging operation) 32,338 34,826
All foreign countries
Germany (of which €1,885 thousand (2019: €6,005 thousand) relates to
discontinued packaging operation) 23,556 25,877
Australian content
Netherlands 22,654 25,641

UK 310 212
US (of which €1,509 thousand (2019: €4,407 thousand) relates to
discontinued packaging operation) 21,995 22,733
Other countries 9,550 10,623
Packaging (discontinued) (7,543) (23,193)
102,860 96,719
* See Notes 6(B) and 7.
ii. Non-current assets

In thousands of euro 2020 2019
[Country X] 17,067 16,604

Primary statements
All foreign countries

Germany 6,104 7,877
Netherlands 9,608 8,986
UK 2,002 1,998
US 7,691 7,807
Other countries 951 992
43,423 44,264
Non-current assets exclude financial investments (other than equity-accounted investees),
deferred tax assets and employee benefit assets.a
E. Major customer
IFRS 8.34 Revenues from one customer of the Group’s Non-recycled Papers and Recycled Papers
segments represented approximately €20,000 thousand (2019: €17,500 thousand) of the
Group’s total revenues.
NOTES
Appendices
IFRS 8.24(a), 33(b) a. The Group has disclosed the equity-accounted investees as the geographic information of non-current assets
because they are regularly provided to the CODM. IFRS 8 does not specify which financial instruments are excluded
from non‑current assets reported in the geographic information.
Introduction
7. Discontinued operation
See accounting policy in Note 45(C).
IFRS 5.30, 41(a)–(b), In February 2020, the Group sold its entire Packaging segment (see Note 6). Management
41(d)
committed to a plan to sell this segment early in 2020, following a strategic decision to place
greater focus on the Group’s key competencies – i.e. the manufacture of paper used in the printing
industry, forestry and the manufacture of timber products.
The Packaging segment was not previously classified as held-for-sale or as a discontinued

operation. The comparative consolidated statement of profit or loss and OCI has been re-
presented to show the discontinued operation separately from continuing operations.
Australian content
Subsequent to the disposal, the Group has continued to purchase packaging from the discontinued
operation. Although intra-group transactions have been fully eliminated in the consolidated financial
results, management has elected to attribute the elimination of transactions between the continuing
operations and the discontinued operation before the disposal in a way that reflects the continuance
of these transactions subsequent to the disposal, because management believes this is useful to
the users of the financial statements.
To achieve this presentation, management has eliminated from the results of the discontinued
operation the inter-segment sales (and costs thereof, less unrealised profits) made before its
disposal. Because purchases from the discontinued operation will continue after the disposal,
inter-segment purchases made by the continuing operations before the disposal are retained in
continuing operations.
A. Results of discontinued operationa
Primary statements
IAS 1.98(e)
In thousands of euro Note 2020 2019
IFRS 5.33(b)(i) Revenue 8,483 26,028

Elimination of inter-segment revenue (940) (2,835)
External revenue 7,543 23,193
IFRS 5.33(b)(i) Expenses (8,641) (26,486)
Elimination of expenses related to inter-segment sales 936 2,827
External expenses (7,705) (23,659)
IFRS 5.33(b)(i) Results from operating activities (162) (466)
IFRS 5.33(b)(ii),
IAS 12.81(h)(ii) Income tax 14(A) 25 44
Results from operating activities, net of tax (137) (422)
IFRS 5.33(b)(iii) Gain on sale of discontinued operation 846 -
IFRS 5.33(b)(ii),
IAS 12.81(h)(i) Income tax on gain on sale of discontinued operation 14(A) (330) -
NOTES
IFRS 5.33(a) Profit (loss) from discontinued operations, net of tax 379 (422)
IAS 33.68 Basic earnings (loss) per share (euro)b 11 0.12 (0.14)
b
IAS 33.68 Diluted earnings (loss) per share (euro) 11 0.12 (0.14)
IFRS 5.33(d) The profit from the discontinued operation of €379 thousand (2019: loss of €422 thousand) is
attributable entirely to the owners of the Company. Of the profit from continuing operations of
€7,173 thousand (2019: €6,396 thousand), an amount of €6,676 thousand is attributable to the
owners of the Company (2019: €6,045 thousand).
Insights a. In our view, considering that IFRS 5 does not specify how the elimination should be attributed to continuing and
5.4.230.40 discontinued operations (see Note 6(B)–(C)), an entity may present transactions between the continuing and
discontinued operations in a way that reflects the continuance of those transactions, when that is useful to the users
of the financial statements. It may be appropriate to present additional disclosure either on the face of the statement
Appendices
of profit or loss and OCI or in the notes. In our experience, if the additional disclosure is provided in the statement
of profit or loss and OCI, then judgement may be required over whether the disaggregated information should
be presented as part of the statement itself or as an additional disclosure alongside the totals in that statement. Clear
disclosure of the approach taken to the elimination of intra-group transactions will be relevant, including an explanation
of any additional analysis of discontinued operations in the notes to the statement of profit or loss and OCI.
IAS 33.68 b. The Group has elected to present basic and diluted EPS for the discontinued operation in the notes. Alternatively,
basic and diluted EPS for the discontinued operation may be presented in the statement of profit or loss and OCI.

Introduction
7. Discontinued operation (continued)

IFRS 5.33(c) B. Cash flows from (used in) discontinued operationa
Net cash used in operating activities (225) (910)

Net cash from investing activities (C) 10,890 -
Net cash flows for the year 10,665 (910)
IAS 7.40(d) C. Effect of disposal on the financial position of the Group
In thousands of euro Note 2020
Australian content
Property, plant and equipment (7,986)

Inventories (134)
Trade and other receivables (3,955)
IAS 7.40(c) Cash and cash equivalents (110)
Deferred tax liabilities 110
Trade and other payables 1,921
Net assets and liabilities (10,154)
IAS 7.40(a)–(b) Consideration received, satisfied in cash 11,000
Cash and cash equivalents disposed of (110)
Net cash inflows (B) 10,890
Primary statements
NOTES
IAS 7.10, a. In our view, there are numerous ways in which the requirements of IFRS 5 and IAS 7 on cash flow presentation may
Appendices
IFRS 5.33(c), be met. The Group has elected to present:

Insights 5.4.220.50
– a statement of cash flows that includes an analysis of all cash flows in total: i.e. including both continuing and
discontinued operations; and
– amounts related to discontinued operations by operating, investing and financing activities in the notes.
Alternatively, cash flows attributable to operating, investing and financing activities of discontinued operations can
be presented separately in the statement of cash flows.
Introduction
8. Revenuea
A. Revenue streams
The Group generates revenue primarily from the sale of paper and timber products and provision
of forestry services to its customers (see Note 6(A)). Other sources of revenue include rental
income from owned and leased investment properties and immaterial amounts related to hedge
accounting and hedging gains.
Discontinued
Continuing operation
operations (see Note 7) Total
In thousands of euro Note 2020 2019 2020 2019 2020 2019
Australian content
IFRS 15.113(a) Revenue from contracts
with customersb 102,394 96,421 7,543 23,193 109,937 119,614
Other revenue
IAS 40.75(f)(i) Investment property
rentals 38(B)(ii) 460 302 - - 460 302
Hedging gainsc 32(C)(iv) 6 (4) - - 6 (4)
466 298 - - 466 298
Total revenue 102,860 96,719 7,543 23,193 110,403 119,912
Primary statements
NOTES
IFRS 15.119(b), a. IFRS 15 requires an entity to provide disclosure about costs to obtain or fulfil a contract with a customer. The Group
127–128 does not incur such costs, and therefore the related disclosures are not illustrated in this guide. Similarly, the Group
has determined that its contracts with customers do not contain a significant financing component, and therefore
the related disclosures are not illustrated.
IFRS 15.113, b. In providing a separate disclosure of revenue from contracts with customers – either in the notes or in the
IAS 1.29–30, 85, statement of profit or loss – we believe that an entity should not include amounts that do not fall in the scope of
Insights 4.2.560.25 IFRS 15.
IFRS 9.B6.5.29(a), c. When an entity hedges a sale, whether in a forecast transaction or a firm commitment, the costs of hedging related
Insights 7.10.167.20 to that sale are reclassified to profit or loss as part of the cost related to that sale in the same period as the revenue
from the hedged sale is recognised. It appears that when these costs of hedging are reclassified to profit or loss, an
Appendices
entity may choose an accounting policy, to be applied consistently, to present them:

– as revenue: because they relate to a hedge of revenue. However, they should not be presented or disclosed as
revenue from contracts with customers in the scope of IFRS 15, because they are not; or
– in another appropriate line item of income or expense: because the term ‘cost related to that sale’ could be
interpreted as precluding presentation as revenue.
The Group has chosen to present the costs of hedging related to sales transactions as revenue.

Introduction
8. Revenue (continued)
B. Disaggregation of revenue from contracts with customers
IFRS 15.114–115 In the following table, revenue from contracts with customers (including revenue related to a
discontinued operation) is disaggregated by primary geographical market, major products and service
lines and timing of revenue recognition. The table also includes a reconciliation of the disaggregated
revenue with the Group’s reportable segments (see Note 6).a, b, c
Reportable segments
d
For the year ended 31 December Non-recycled Papers Recycled Papers Packaging (discontinued)
In thousands of euro 2020 2019 2020 2019 2020 2019
Australian content
Primary geographical markets

Europe 51,276 54,335 24,290 17,873 6,034 18,786
US 12,832 12,752 6,075 4,189 1,509 4,407
64,108 67,087 30,365 22,062 7,543 23,193
Major products/service lines
Standard paper products 48,081 50,315 22,774 16,547 - -
Made-to-order paper products 16,027 16,772 7,591 5,515 - -
Forestry services - - - - - -
Timber products - - - - - -
Packaging and other - - - - 7,543 23,193
64,108 67,087 30,365 22,062 7,543 23,193
Primary statements
Timing of revenue recognition

Products transferred at a point
in time 48,081 50,315 22,774 16,547 7,543 23,193
Products and services
transferred over time 16,027 16,772 7,591 5,515 - -
Revenue from contracts with
customers 64,108 67,087 30,365 22,062 7,543 23,193
Other revenue 4 (2) 2 (2) - -
IFRS 15.115 External revenue as reported
in Note 6 64,112 67,085 30,367 22,060 7,543 23,193
IFRS 15.114, B87– a. The extent to which an entity’s revenue is disaggregated for the purposes of this disclosure depends on the facts
B89, IE210–IE211 and circumstances of the entity’s contracts with customers.
In determining the appropriate categories, an entity considers how revenue is disaggregated in:
NOTES
– disclosures presented outside the financial statements: e.g. earnings releases, annual reports or investor presentations;
– information reviewed by the CODM for evaluating the financial performance of operating segments; and
– other similar information that is used by the entity or users of the entity’s financial statements to evaluate
performance or make resource allocation decisions.
Examples of categories that might be appropriate in disclosing disaggregated revenue include, but are not limited to,
the following.
Type of category Example

Type of good or service Major product lines
Geographic region Country or region
Market or type of customer Government and non-government customers
Type of contract Fixed-price and time-and-materials contracts
Contract duration Short-term and long-term contracts
Appendices
Timing of transfer of goods or services Goods or services transferred to customers:

– at a point in time
– over time
Sales channels Goods or services sold:
– directly to consumers
– through intermediaries
Introduction
Reportable segments
Forestry Timber Products Total reportable segments All other segments Total
2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
Australian content

3,174 2,821 2,160 2,418 86,934 96,233 1,003 651 87,937 96,884
793 662 540 567 21,749 22,577 251 153 22,000 22,730
3,967 3,483 2,700 2,985 108,683 118,810 1,254 804 109,937 119,614
- - - - 70,855 66,862 - - 70,855 66,862

- - - - 23,618 22,287 - - 23,618 22,287
3,967 3,483 - - 3,967 3,483 - - 3,967 3,483
- - 2,700 2,985 2,700 2,985 - - 2,700 2,985
- - - - 7,543 23,193 1,254 804 8,797 23,997
3,967 3,483 2,700 2,985 108,683 118,810 1,254 804 109,937 119,614
Primary statements
- - 2,700 2,985 81,098 93,040 831 359 81,929 93,399
3,967 3,483 - - 27,585 25,770 423 445 28,008 26,215
3,967 3,483 2,700 2,985 108,683 118,810 1,254 804 109,937 119,614
- - - - 6 (4) 460 302 466 298
3,967 3,483 2,700 2,985 108,689 118,806 1,714 1,106 110,403 119,912
NOTES
IFRS 15.112, 114, b. Some entities may not be able to meet the objective in paragraph 114 of IFRS 15 for disaggregating revenue by
BC340 providing segment revenue information and may need to use more than one type of category. Other entities
may meet the objective by using only one type of category. Even if an entity uses consistent categories in the
segment note and in the revenue disaggregation note, further disaggregation of revenue may be required because
the objective of providing segment information under IFRS 8 is different from the objective of the disaggregation
disclosure under IFRS 15 and, unlike IFRS 8, there are no aggregation criteria in IFRS 15.
Nonetheless, an entity does not need to provide disaggregated revenue disclosures if the information about revenue
provided under IFRS 8 meets the requirements of paragraph 114 of IFRS 15 and those revenue disclosures are
based on the recognition and measurement requirements in IFRS 15.
Appendices
IFRS 15.115 c. An entity is required to disclose sufficient information to enable users of financial statements to understand the
relationship between the disclosure of disaggregated revenue and revenue information that is disclosed for each
reportable segment, if the entity applies IFRS 8.
IFRS 15.114, 5.5B d. Although it is not explicitly required to include discontinued operations as part of the disaggregation of revenue
from contracts with customers, the Group has provided that information.

Introduction
IFRS 15.116–118 C. Contract balances
The following table provides information about receivables, contract assets and contract liabilities
from contracts with customers.
31 December 31 December
Receivables, which are included in ‘trade and other receivables’ 18 32,092 22,010
Receivables, which are included in ‘assets held for sale’ 20 3,496 -
Contract assets 1,271 782
Australian content
Contract liabilities (160) (166)

The contract assets primarily relate to the Group’s rights to consideration for work completed
but not billed at the reporting date on made-to-order paper products. The contract assets were
impacted by an impairment charge of €4 thousand (2019: €2 thousand). There was no impact on
contract assets as a result of an acquisition of the subsidiary (see Note 34). The contract assets
are transferred to receivables when the rights become unconditional. This usually occurs when
the Group issues an invoice to the customer.
IFRS 15.120(b) The contract liabilities primarily relate to the advance consideration received from customers for
construction of storage units and warehouses, for which revenue is recognised over time, and
to the unredeemed customer loyalty points. The amount of unredeemed customer loyalty points
is €50 thousand (2019: €2 thousand). This will be recognised as revenue when the points are
redeemed by customers, which is expected to occur over the next two years.
Primary statements
IFRS 15.116(b) The amount of €166 thousand included in contract liabilities at 31 December 2019 has been
recognised as revenue in 2020 (2019: €140 thousand).
IFRS 15.116(c) The amount of revenue recognised in 2020 from performance obligations satisfied (or partially
satisfied) in previous periods is €8 thousand (2019: €4 thousand). This is mainly due to changes in
the estimate of the stage of completion of construction of storage units and warehouses.
IFRS 15.121–122 No information is provided about remaining performance obligations at 31 December 2020 or
at 31 December 2019 that have an original expected duration of one year or less, as allowed by
IFRS 15.
NOTES
Appendices
Introduction
IFRS 15.119, 123–126, D. Performance obligations and revenue recognition policiesa
IAS 1.122
Revenue is measured based on the consideration specified in a contract with a customer.
The Group recognises revenue when it transfers control over a good or service to a customer.
The following table provides information about the nature and timing of the satisfaction of
performance obligations in contracts with customers, including significant payment terms, and
the related revenue recognition policies. For the accounting policy for onerous contracts, see
Note 45(S).
Nature and timing of satisfaction of
Australian content
performance obligations, including
Type of product/service significant payment terms Revenue recognition policies
Standard paper Customers obtain control of standard Revenue is recognised when the goods
products paper products when the goods are are delivered and have been accepted by
delivered to and have been accepted at customers at their premises.
their premises. Invoices are generated For contracts that permit the customer to
at that point in time. Invoices are usually return an item, revenue is recognised to
payable within 30 days. No discounts are the extent that it is highly probable that
provided for standard paper products, a significant reversal in the amount of
but customers may earn loyalty points cumulative revenue recognised will not
instead (see Loyalty programme). occur.
Some contracts permit the customer Therefore, the amount of revenue
to return an item. Returned goods are recognised is adjusted for expected
exchanged only for new goods – i.e. no returns, which are estimated based on
cash refunds are offered. the historical data for specific types
Primary statements
of paper, size, finish etc. In these
circumstances, a refund liability and a
right to recover returned goods asset
are recognised.
The right to recover returned goods
asset is measured at the former
carrying amount of the inventory less
any expected costs to recover goods.
The refund liability is included in other
payables (see Note 29) and the right
to recover returned goods is included
in inventory (see Note 17). The Group
reviews its estimate of expected returns
at each reporting date and updates
the amounts of the asset and liability
accordingly.
Made-to-order paper The Group has determined that for made- Revenue and associated costs are
products to-order paper products, the customer recognised over time – i.e. before the NOTES
controls all of the work in progress as goods are delivered to the customers’
the products are being manufactured. premises. Progress is determined based
This is because under those contracts on the cost-to-cost method.
paper products are made to a customer’s
specification and if a contract is
terminated by the customer, then the
Group is entitled to reimbursement of
the costs incurred to date, including a
reasonable margin.
Invoices are issued according to
contractual terms and are usually payable
within 30 days. Uninvoiced amounts are
presented as contract assets. Customers
may earn loyalty points (see Loyalty
Appendices
programme).
IAS 1.117(b), 119 a. The Group presents significant accounting policies related to revenue from contracts with customers in the revenue
note, rather than in a separate note with other significant accounting policies (see Note 45). Other approaches to
presenting accounting policies may be acceptable.

Introduction
IFRS 15.119, 123–126, D. Performance obligations and revenue recognition policies (continued)
IAS 1.122
Nature and timing of satisfaction of
performance obligations, including
Type of product/service significant payment terms Revenue recognition policies
Timber products Customers obtain control of timber Revenue is recognised when the
products when the goods are dispatched goods are dispatched from the Group’s
from the Group’s warehouse. Invoices warehouse.
are generated and revenue is recognised
at that point in time. Invoices are usually
payable within 30 days. No discounts,
Australian content
loyalty points or returns are offered for

timber products.
Loyalty programme Customers who purchase paper products The Group allocates a portion of the
may enter the Group’s customer loyalty consideration received to loyalty points.
programme and earn points that are This allocation is based on the relative
redeemable against any future purchases stand-alone selling prices. The amount
of the Group’s products. The points allocated to the loyalty programme is
accumulate and do not expire. deferred, and is recognised as revenue
when loyalty points are redeemed or
the likelihood of the customer redeeming
the loyalty points becomes remote.
The deferred revenue is included in
contract liabilities.
Managing forest Invoices for forestry services are issued Revenue is recognised over time as
Primary statements
resources services on a monthly basis and are usually the services are provided. The stage of
and related services payable within 30 days. completion for determining the amount
of revenue to recognise is assessed
based on surveys of work performed.
If the services under a single
arrangement are rendered in different
reporting periods, then the consideration
is allocated based on their relative stand-
alone selling prices. The stand-alone
selling price is determined based on the
list prices at which the Group sells the
services in separate transactions.
Construction The Group builds storage units and Revenue is recognised over time based
contracts warehouses for customers in the on the cost-to-cost method. The related
Timber Products segment based on costs are recognised in profit or loss
their designs and on their land. Each when they are incurred.
project commences on receipt of a full Advances received are included in
NOTES
prepayment from a customer and its contract liabilities.

length depends on the complexity of the
design. However, projects usually do not
extend beyond six months.
Appendices
Introduction
9. Income and expenses
IAS 1.97 A. Other income
IAS 41.40 Change in fair value of biological assets 16(A) 587 28

IAS 40.76(d) Increase in fair value of investment property 23(A) 20 60
IAS 20.29 Government grants 30(A) 238 -
IAS 1.98(c) Gain on sale of property, plant and equipment 38(B)(i) 48 16
893 104
B. Other expensesa
Australian content
IAS 1.97
b
Impairment loss on goodwill 22(C) 116 -
IFRS 5.41(c) Impairment loss on remeasurement of the disposal group 20(A) 35 -
Settlement of pre-existing relationship with acquiree 34(A) 326 -
Onerous contract charge 160 -
IAS 1.87 Earthquake-related expenses 359 -
996 -
IAS 1.104 C. Expenses by nature

2020 2019
Primary statements
Changes in inventories of finished goods and work in progress 472 (343)
Raw materials and consumables 42,104 43,208
IAS 1.104 Employee benefits 13(E) 22,154 19,439
IAS 1.104 Depreciation and amortisation 21(A), 22(A) 6,124 5,917
(Reversal of) impairment of property, plant and equipment
and intangible assets 21(B), 22(C) (493) 1,408
Consultancy 4,866 2,732
Advertising 2,550 2,650
Maintenance 12,673 9,957
Lease expense 38(A)(ii) 465 477
Other 1,680 1,731
Total cost of sales, selling and distribution, administrative
and research and development expenses 92,595 87,176
* See Note 44.
NOTES
Insights a. There is no guidance in IFRS Standards on how specific expenses are allocated to functions. An entity establishes its
Appendices
4.1.30.10–40 own definitions of functions. In our view, cost of sales includes only expenses directly or indirectly attributable to the
production process. Only expenses that cannot be allocated to a specific function are classified as ‘other expenses’.
IAS 36.126, b. The Group has classified expenses by function and has therefore allocated the impairment loss to the appropriate
Insights 3.10.410.20 function. In our view, in the rare case that an impairment loss cannot be allocated to a function, it should be included
in ‘other expenses’ as a separate line item if it is significant (e.g. impairment of goodwill), with additional information
given in a note.

Introduction
10. Net finance costs

See accounting policies in Notes 45(G) and (O).
IAS 1.97 In thousands of euro Note 2020 2019
a
Interest income under the effective interest method on:
IFRS 7.20(b) – Corporate debt securities – at FVOCI 8 27
IFRS 7.20(b) – Corporate debt securities – at amortised cost 198 123
IFRS 7.20(b) – Cash and cash equivalents 1 1
IFRS 16.90(a)(ii) Interest income on lease receivable 2 -
Total interest income arising from financial assets 209 151
Australian content
IFRS 3.B64(p)(ii) Remeasurement to fair value of pre-existing interest in an

acquiree 34(D) 250 -
Dividend income:
IFRS 7.11A(d) – Equity securities – at FVOCI – investments held at the
reporting date 25 26 32
IFRS 7.20(a)(viii) Corporate debt securities – at FVOCI:
– Gain on derecognition reclassified from OCI 64 -
IFRS 7.20(a)(i) Financial assets at FVTPL – net change in fair value:
– Mandatorily measured at FVTPL – held for trading 74 -
– Mandatorily measured at FVTPL – other 508 264
Finance income – other 922 296
IAS 1.82(ba) Finance costs – impairment loss on debt securities (net of
Primary statements
reversals) 32(C)(ii) (59) (13)

b
IFRS 7.20(b), 7.IG13 Financial liabilities not measured at FVTPL – interest expense (1,523) (1,299)
IAS 21.52(a) Net foreign exchange loss (186) (250)
IFRS 7.24C(b) Cash flow hedges – reclassified from OCI including costs of
hedging reserve 32(C)(iv) 17 12
IAS 37.84(e) Unwind of discount on site restoration provision 31 (60) (50)
IFRS 7.20(a)(i) Change in fair value of contingent consideration 32(B)(iii) (20) -
IFRS 7.24C(b)(ii) Cash flow hedges – ineffective portion of changes in fair value (51) (16)
IFRS 7.24C(b)(ii) Net investment hedge – ineffective portion of changes in fair value (1) -
IFRS 7.20(a)(i) Financial assets at FVTPL – net change in fair value:
– Mandatorily measured at FVTPL – held for trading - (19)
Finance costs – other (1,824) (1,622)
Net finance costs recognised in profit or loss (752) (1,188)
NOTES
Appendices
IFRS 7.20(b), a. Under IFRS 7 an entity is required to disclose the total interest income (calculated using the effective interest
IAS 1.97 method) for financial assets that are measured at amortised cost or at FVOCI – showing these amounts separately.
IAS 32.40, b. The Group has grouped interest on lease liabilities and dividends classified as an expense with interest on other
IFRS 7.IG13 financial liabilities. Alternatively, they may be presented as a separate item. If there are differences between interest
and dividends with respect to matters such as tax deductibility, then it is desirable to disclose them separately.
Introduction
11. Earnings per share
A. Basic earnings per share
The calculation of basic EPS has been based on the following profit attributable to ordinary
shareholders and weighted-average number of ordinary shares outstanding.
IAS 33.70(a) i. Profit (loss) attributable to ordinary shareholders (basic)

2020 2019
Continuing Discontinued
Continuing Discontinued operations operation Total
In thousands of euro Note operations operation Total (restated)* (restated)* (restated)*
Australian content
Profit (loss) for the
year, attributable to
the owners of the
Company 6,676 379 7,055 6,045 (422) 5,623
Dividends on non-
redeemable
preference shares 26(C) (438) - (438) (438) - (438)
Profit (loss) attributable
to ordinary
shareholders 6,238 379 6,617 5,607 (422) 5,185
* See Notes 7 and 44.
IAS 33.70(b) ii. Weighted-average number of ordinary shares (basic)
Primary statements
In thousands of shares Note 2020 2019
Issued ordinary shares at 1 January 26(A)(i) 3,100 3,100

Effect of treasury shares held 26(B)(vii) (49) (40)
Effect of share options exercised 26(A)(i) 3 -
Effect of shares issued related to a business combination 26(A)(i) 6 -
Effect of shares issued in October 2020 26(A)(i) 23 -
Weighted-average number of ordinary shares at
31 December 3,083 3,060
B. Diluted earnings per share
The calculation of diluted EPS has been based on the following profit attributable to ordinary
shareholders and weighted-average number of ordinary shares outstanding after adjustment for
the effects of all dilutive potential ordinary shares.
IAS 33.70(a) i. Profit (loss) attributable to ordinary shareholders (diluted)

NOTES
2020 2019
Continuing Discontinued
Continuing Discontinued operations operation Total
In thousands of euro Note operations operation Total (restated)* (restated)* (restated)*

to ordinary
shareholders (basic) 6,238 379 6,617 5,607 (422) 5,185
Interest expense on
convertible notes, net
of tax 28(C) 61 - 61 - - -
to ordinary
shareholders
Appendices
(diluted) 6,299 379 6,678 5,607 (422) 5,185

* Sees Notes 7 and 44.

Introduction
11. Earnings per share (continued)

B. Diluted earnings per share (continued)
IAS 33.70(b) ii. Weighted-average number of ordinary shares (diluted)
In thousands of shares Note 2020 2019
Weighted-average number of ordinary shares (basic) 3,083 3,060

Effect of conversion of convertible notes 28(C) 148 -
Effect of share options on issue 47 18
Weighted-average number of ordinary shares (diluted) at
31 December 3,278 3,078
Australian content
IAS 33.70(c) At 31 December 2020, 135,000 options (2019: 44,000) were excluded from the diluted weighted-
average number of ordinary shares calculation because their effect would have been anti-dilutive.
The average market value of the Company’s shares for the purpose of calculating the dilutive
effect of share options was based on quoted market prices for the year during which the options
were outstanding.a
Primary statements
NOTES
Appendices
Insights a. In our view, the method used to determine the average market price for ordinary shares should be disclosed in
5.3.270.80 the notes.
Employee benefits
Introduction
12. Share-based payment arrangementsa
See accounting policy in Note 45(E)(ii).
IFRS 2.44–45(a), 50 A. Description of share-based payment arrangements

At 31 December 2020, the Group had the following share-based payment arrangements.
i. Share option programmes (equity-settled)
On 1 January 2016 and 1 January 2019, the Group established share option programmes that
entitle key management personnel to purchase shares in the Company. On 1 January 2020, a
further grant on similar terms was offered to key management personnel and senior employees.
Under these programmes, holders of vested options are entitled to purchase shares at the market
Australian content
price of the shares at grant date. Currently, these programmes are limited to key management
personnel and other senior employees.
The key terms and conditions related to the grants under these programmes are as follows;
all options are to be settled by the physical delivery of shares.
Number of
instruments Contractual
Grant date/employees entitled in thousands Vesting conditions life of options
Options granted to key

management personnel
On 1 January 2016 400 3 years’ service from grant date 7 years
and 5% increase in operating
income in each of the 3 years
Primary statements
On 1 January 2019 200 Same as above 10 years
On 1 January 2020 225 Same as above 10 years
Options granted to senior
employees
On 1 January 2020 100 3 years’ service from grant date 10 years
Total share options 925
ii. Replacement awards (equity-settled)
In connection with the acquisition of Papyrus, the Group exchanged equity-settled share-based
payment awards held by employees of Papyrus for 150,000 equity-settled share-based payment
awards of the Company with a contractual life of nine years from the vesting date (see Note 34(A)(ii)).
iii. Share purchase plan (equity-settled)
On 1 January 2020, the Group offered 26 of its employees the opportunity to participate in an
employee share purchase plan. To participate in the plan, the employees are required to save an NOTES
amount of 5% of their gross monthly salary, up to a maximum of €300 per month, for a period of
36 months. Under the terms of the plan, at the end of the 36-month period the employees are
entitled to purchase shares using funds saved at a price of 20% below the market price at grant
date. Only employees that remain in service and save the required amount of their gross monthly
salary for 36 consecutive months will become entitled to purchase the shares. Employees who
cease their employment, do not save the required amount of their gross monthly salary in any
month before the 36-month period expires, or elect not to exercise their options to purchase
shares will be refunded their saved amounts.
iv. Share appreciation rights (cash-settled)
On 1 January 2015 and 1 January 2020, the Group granted 100,000 and 300,000 share appreciation
rights (SARs), respectively, to employees that entitle them to a cash payment after three years of
service. The SARs expire at the end of a five-year period after grant date. The amount of the cash
Appendices
payment is determined based on the increase in the share price of the Company between grant
date and the time of exercise.
ASIC Instrument a. Where ASIC Instrument 2016/191 is applied in the financial statements, certain share-based payment disclosures
2016/191 are subject to the exception of the rounding provisions. This exception is not reflected in this international-based
illustrative disclosure.

Introduction
12. Share-based payment arrangements (continued)

A. Description of share-based payment arrangements (continued)
iv. Share appreciation rights (cash-settled) (continued)
Details of the liabilities arising from the SARs were as follows.
IFRS 2.51(b)(i) Total carrying amount of liabilities for SARs 13 440 380
IFRS 2.51(b)(ii) Total intrinsic value of liabilities for vested benefits - 380
The liabilities at 31 December 2019 were settled during 2020.

Australian content
B. Measurement of fair values

i. Equity-settled share-based payment arrangements
IFRS 2.46, 47(a)(i), (iii) The fair value of the employee share purchase plan (see (A)(iii)) has been measured using a
Monte Carlo simulation. The fair value of the employee share options (see (A)(i) and (A)(ii)) has
been measured using the Black-Scholes formula. Service and non-market performance conditions
attached to the arrangements were not taken into account in measuring fair value.
IFRS 2.47(a)(iii) The requirement that the employee has to save in order to purchase shares under the share
purchase plan has been incorporated into the fair value at grant date by applying a discount to
the valuation obtained. The discount has been determined by estimating the probability that the
employee will stop saving based on historical behaviour.
The inputs used in the measurement of the fair values at grant date of the equity-settled share-
Primary statements
based payment plans were as follows.

Share option programmes
Key management Senior Replacement Share purchase

personnel employees awards plan
(see (A)(i)) (see (A)(i)) (see (A)(ii)) (see (A)(iii))
2020 2019 2020 2020 2020
IFRS 2.47(a)(i) Fair value at grant date €3.54 €3.75 €3.14 €3.81 €4.02
Share price at grant date €10.10 €10.50 €10.10 €10.30 €10.10
Exercise price €10.10 €10.50 €10.10 €10.30 €8.08
Expected volatility
(weighted‑average) 40.1% 40.9% 40.1% 42.4% 43.3%
Expected life (weighted‑average) 8.6 years 8.8 years 5.4 years 5.9 years 3.0 years
Expected dividends 3.2% 3.2% 3.2% 3.2% N/A
Risk-free interest rate (based on
NOTES
government bonds) 3.9% 3.8% 3.8% 3.9% 3.9%

IFRS 2.47(a)(ii) Expected volatility has been based on an evaluation of the historical volatility of the Company’s
share price, particularly over the historical period commensurate with the expected term.
The expected term of the instruments has been based on historical experience and general
option holder behaviour.
At 31 December 2020, a total amount of €78 thousand was invested by the participants in the
share purchase plan (see Note 41(B)(i)) and has been included in ‘other trade payables’ (see
Note 29).
Appendices
Employee benefits
Introduction
12. Share-based payment arrangements (continued)
B. Measurement of fair values (continued)
IFRS 2.33A ii. Cash-settled share-based payment arrangementa
The fair value of the SARs (see (A)(iv)) has been measured using the Black-Scholes formula.
Service and non-market performance conditions attached to the arrangements were not taken
into account in measuring fair value.
The inputs used in the measurement of the fair values at grant date and measurement date of
the SARs were as follows.
Measurement
Australian content
Grant date date
1 January 31 December
2020 2020
IFRS 2.52 Fair value €2.82 €4.40

Share price €10.10 €12.70
Exercise price €10.10 €10.10
Expected volatility (weighted-average) 43.3% 43.1%
Expected life (weighted-average) 4.0 years 2.8 years
Expected dividends 3.2% 3.3%
Risk-free interest rate (based on government bonds) 4.4% 4.5%
Expected volatility has been based on an evaluation of the historical volatility of the Company’s
share price, particularly over the historical period commensurate with the expected term.
The expected term of the instruments has been based on historical experience and general
Primary statements
option holder behaviour.
C. Reconciliation of outstanding share options
IFRS 2.45(b) The number and weighted-average exercise prices of share options under the share option
programmes (see (A)(i)) and replacement awards (see (A)(ii)) were as follows.
2020 2019
Weighted- Weighted-
Number of average Number of average
In thousands of options options exercise price options exercise price
IFRS 2.45(b)(i) Outstanding at 1 January 550 €10.18 400 €10.00

IFRS 2.45(b)(iii) Forfeited during the year (50) €10.00 (50) €10.00
IFRS 2.45(b)(iv) Exercised during the year (5) €10.00 - -
IFRS 2.45(b)(ii) Granted during the year 475 €10.16 200 €10.50
IFRS 2.45(b)(vi) Outstanding at 31 December 970 €10.18 550 €10.18
NOTES
IFRS 2.45(b)(vii) Exercisable at 31 December 295 €10.00 350 €10.00
IFRS 2.45(d) The options outstanding at 31 December 2020 had an exercise price in the range of €8.08 to
€10.50 (2019: €10.00 to €10.50) and a weighted-average contractual life of 6.4 years (2019:
5.2 years).
IFRS 2.45(c) The weighted-average share price at the date of exercise for share options exercised in 2020 was
€10.00 (2019: no options exercised).
D. Expense recognised in profit or loss
For details of the related employee benefit expenses, see Note 13(E).
Appendices
Insights a. Although it is not specifically required by IFRS 2, the Group has disclosed information about the fair value
4.5.1000.10 measurement of its SARs. In our view, these disclosures should be provided for cash-settled share-based payments.
For awards granted during the period, disclosures about fair value measurement at grant date and at the reporting
date should be given; for awards granted in previous periods but unexercised at the reporting date, disclosures
about fair value measurement at the reporting date should be given.

Introduction
13. Employee benefits

See accounting policies in Note 45(E).
Net defined benefit asset (671) (731)

Total employee benefit asset (671) (731)
Net defined benefit liability 285 280
Liability for social security contributions 8 5
Liability for long-service leave 199 176
IFRS 2.51(b)(i) Cash-settled share-based payment liability 12 440 380
Australian content
Total employee benefit liabilities 932 841

Non-current 912 453
Currenta 20 388
932 841
For details on the related employee benefit expenses, see (E).
IAS 19.139(a) The Group contributes to the following post-employment defined benefit plans in [Countries X
and Y].
– Plan A entitles a retired employee to receive an annual pension payment. Directors and
executive officers (see Note 41(B)(i) retire at age 60 and are entitled to receive annual payments
equal to 70% of their final salary until the age of 65, at which time their entitlement falls to 50%
of their final salary. Other retired employees are entitled to receive annual payments equal to
Primary statements
1/60 of final salary for each year of service that the employee provided.
– Plan B reimburses certain medical costs for retired employees.
The defined benefit plans are administered by a single pension fund that is legally separated from the
Group. The board of the pension fund comprises three employee and two employer representatives
and an independent chair. The board of the pension fund is required by law to act in the best interests
of the plan participants and is responsible for setting certain policies (e.g. investment, contribution
and indexation policies) of the fund.
IAS 19.139(b) These defined benefit plans expose the Group to actuarial risks, such as longevity risk, currency
risk, interest rate risk and market (investment) risk.
A. Funding
IAS 19.147(a) Plan A is fully funded by the Group’s subsidiaries, except for the obligation for directors and
executive officers, which is funded by the Company. The funding requirements are based on
the pension fund’s actuarial measurement framework set out in the funding policies of the plan.
NOTES
The funding of Plan A is based on a separate actuarial valuation for funding purposes for which
the assumptions may differ from the assumptions set out in (D). Employees are not required
to contribute to the plans. Plan B is unfunded.
The Group has determined that, in accordance with the terms and conditions of the defined
benefit plans, and in accordance with statutory requirements (including minimum funding
requirements for Plan A) for the plans of the respective jurisdictions, the present value of refunds
or reductions in future contributions is not lower than the balance of the total fair value of the plan
assets less the total present value of obligations. This determination has been made on a plan-
by-plan basis. As such, no decrease in the defined benefit asset was necessary at 31 December
2020 or 31 December 2019.
IAS 19.147(b) The Group expects to pay €350 thousand in contributions to its defined benefit plans in 2021.
Appendices
IAS 1.69, 19.133 a. Although it is not required to distinguish the current and non-current portions of assets and liabilities arising from
post-employment benefits, the Group distinguishes between the current and non-current portions of obligations
arising from long-term employee benefits if it does not have an unconditional right to defer settlement of the liability
at least 12 months from the reporting date.
Employee benefits
Introduction
13. Employee benefits (continued)
B. Movement in net defined benefit (asset) liability
The following table shows a reconciliation from the opening balances to the closing balances for
the net defined benefit (asset) liability and its components.a
Defined benefit Net defined benefit
obligation Fair value of plan assets (asset) liability
In thousands of euro 2020 2019 2020 2019 2020 2019
IAS 19.140 Balance at 1 January 7,057 6,718 (7,508) (7,162) (451) (444)
b
Included in profit or loss
Australian content
IAS 19.141(a) Current service cost 497 456 - - 497 456
IAS 19.141(d) Past service credit (100) - - - (100) -
IAS 19.141(b) Interest cost (income) 360 322 (383) (344) (23) (22)
757 778 (383) (344) 374 434
Included in OCIb
IAS 19.141(c) Remeasurement loss (gain):
– Actuarial loss (gain) arising from:
IAS 19.141(c)(ii) - demographic assumptions (31) 4 - - (31) 4
IAS 19.141(c)(iii) - financial assumptions (21) 8 - - (21) 8
- experience adjustment (30) 6 - - (30) 6
IAS 19.141(c)(i) – Return on plan assets
excluding interest income - - 10 (3) 10 (3)
Primary statements
IAS 19.141(e) Effect of movements in exchange
ratesc 21 (1) 76 (1) 97 (2)
(61) 17 86 (4) 25 13
Other
IAS 19.141(f) Contributions paid by the employer - - (325) (403) (325) (403)
IAS 19.141(g) Benefits paid (433) (456) 424 405 (9) (51)
(433) (456) 99 2 (334) (454)
IAS 19.140 Balance at 31 December 7,320 7,057 (7,706) (7,508) (386) (451)
Represented by:
Net defined benefit asset (Plan A) (671) (731)

Net defined benefit liability (Plan B) 285 280
(386) (451) NOTES
IAS 19.139(c) During 2020, the pension arrangements for a number of employees in [Country X] were adjusted
to reflect new legal requirements in that country regarding the retirement age. As a result of the
plan amendment, the Group’s defined benefit obligation decreased by €100 thousand (2019: nil).
A corresponding past service credit was recognised in profit or loss during 2020.
IAS 19.138 a. The Group has more than one defined benefit plan and has generally provided aggregated disclosures in respect of
these plans, on the basis that they are not exposed to materially different risks. Further disaggregation of some or all
of the disclosures – e.g. by geographic locations or by different characteristics – would be required if this were not
the case.
b. Although it is not specifically required by IAS 19 Employee Benefits, the Group has disclosed the subtotals of items
recognised in profit or loss and OCI. This disclosure is provided for illustrative purposes only.
Appendices
IAS 21.39, c. A net obligation under a defined benefit plan may be denominated in a foreign currency from the point of view
Insights 4.4.1010 of the sponsor’s financial statements. In our view, in that case the net defined benefit liability (asset) should first
be calculated in the currency in which it is denominated, and the resulting net amount should then be translated
into the sponsor’s functional currency. As a result, the foreign exchange gain or loss arising on translation will be
recognised together with other foreign exchange gains and losses, rather than as part of the IAS 19 remeasurement.
This is different from the situation illustrated above. In this case, the sponsor of the plan is a foreign subsidiary, and
therefore the translation difference is recognised in OCI in the usual way.

Introduction

C. Plan assets
IAS 19.142 Plan assets comprise the following.
IAS 19.142(b) Equity securities:

– Consumer markets 1,725 1,842
– Pharmaceuticals 602 555
– Oil and gas 218 239
– Telecoms 343 260
Australian content
– Financial institutions 213 561

3,101 3,457
IAS 19.142(c) Government bonds 3,587 3,254
IAS 19.142(e) Derivatives:
– Interest rate swaps 29 37
– Forward foreign currency contracts 185 70
– Longevity swaps 97 39
311 146
IAS 19.143 Property occupied by the Group 525 497
IAS 19.143 Company’s own ordinary shares 182 154
7,706 7,508
Primary statements
IAS 19.142 All equity securities and government bonds have quoted prices in active markets. All government
bonds are issued by European governments and are rated AAA or AA, based on [Rating Agency Y]
ratings.
IAS 19.146 At each reporting date, an Asset-Liability Matching study is performed by the pension fund’s
asset manager, in which the consequences of the strategic investment policies are analysed.
The strategic investment policy of the pension fund can be summarised as follows:
– a strategic asset mix comprising 40–50% equity securities, 40–50% government bonds and
0–15% other investments;
– interest rate risk is managed with the objective of reducing the cash flow interest rate risk
by 40% through the use of debt instruments (government bonds) and interest rate swaps;
– currency risk is managed with the objective of reducing the risk by 30% through the use of
forward foreign currency contracts; and
– longevity risk is managed with the objective of reducing the risk by 25% through the use of
NOTES
longevity swaps.
Appendices
Employee benefits
Introduction
D. Defined benefit obligation
IAS 1.125, 19.144 i. Actuarial assumptions
The following were the principal actuarial assumptions at the reporting date (expressed as
weighted averages).
2020 2019
Discount rate 5.1% 4.8%

Future salary growth 2.5% 2.5%
Future pension growth 3.0% 2.0%
Australian content
Medical cost trend rate 4.5% 4.0%
IAS 19.144 Assumptions regarding future longevity have been based on published statistics and mortality
tables. The current longevities underlying the values of the defined benefit obligation at the
reporting date were as follows.
2020 2019
Plan A Plan B Plan A Plan B
Longevity at age 65 for current pensioners

Males 18.5 18.2 18.3 18.0
Females 21.0 19.0 21.0 18.8
Longevity at age 65 for current members
aged 45
Primary statements
Males 19.2 19.0 19.0 18.7
Females 22.9 20.5 22.9 20.0
IAS 19.147(c) At 31 December 2020, the weighted-average duration of the defined benefit obligation was
17.5 years (2019: 17.1 years).
ii. Sensitivity analysis
IAS 1.125, 129, 19.145 Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions,
holding other assumptions constant, would have affected the defined benefit obligation by the
amounts shown below.
31 December 2020 31 December 2019
Effect in thousands of euro Increase Decrease Increase Decrease
Discount rate (1% movement) (338) 354 (335) 350

Future salary growth (1% movement) 187 (176) 180 (172)
Future pension growth (1% movement) 181 (173) 175 (168) NOTES
Medical cost trend rate (1% movement) 389 (257) 380 (250)
Future mortality (1% movement) (73) 69 (70) 67
Although the analysis does not take account of the full distribution of cash flows expected under
the plan, it does provide an approximation of the sensitivity of the assumptions shown.
Appendices

Introduction

E. Employee benefit expenses
Wages and salaries 18,286 16,229

Social security contributions 1,468 1,267
IAS 19.53 Contributions to defined contribution plans 455 419
Termination benefits 31(B) 350 450
Expenses related to post-employment defined benefit plans 13(B) 374 434
Expenses related to long-service leave 26 12
Australian content
IFRS 2.51(a) Equity-settled share-based payments 12 755 248

IFRS 2.51(a) Cash-settled share-based paymentsa 12 440 380
9(C) 22,154 19,439
Primary statements
NOTES
Appendices
IFRS 2.IG19, a. The Group has included the remeasurement of the liability in relation to its cash-settled share-based payment
BC252–BC255, arrangement in ‘employee benefit expenses’. Alternatively, in our view an entity may include the amount in ‘finance
Insights 4.5.970.20 income’ or ‘finance costs’.
Income taxes
Introduction
14. Income taxesa, b
See accounting policy in Note 45(H).
A. Amounts recognised in profit or lossc
2020 2019
Current tax expense

IAS 12.80(a) Current year 3,063 3,594
IAS 12.80(b) Changes in estimates related to prior years 116 (34)
3,179 3,560
Australian content
Deferred tax expense
IAS 12.80(c) Origination and reversal of temporary differences 77 (865)
IAS 12.80(d) Reduction in tax rate (15) (5)
IAS 12.80(f) Recognition of previously unrecognised tax losses (see Note 14(H)) (50) (240)
IAS 12.80(f)–(g) Recognition of previously unrecognised (derecognition of
previously recognised) deductible temporary differences (13) 10
(1) (1,100)
Tax expense on continuing operations 3,178 2,460
IAS 12.81(h)(i)–(ii) ‘Tax expense on continuing operations’ excludes the Group’s share of the tax expense of equity-
accounted investeesd of €492 thousand (2019: €261 thousand), which has been included in ‘share
Primary statements
of profit of equity-accounted investees, net of tax’. The amount also excludes the tax income from
the discontinued operation of €25 thousand (2019: €44 thousand) and the tax expense on the
gain on sale of the discontinued operation of €330 thousand (2019: nil); both of these have been
included in ‘profit (loss) from discontinued operation, net of tax’ (see Note 7).
IAS 10.22(h), 12.81(d), In December 2020, a new corporate tax law was enacted in France. Consequently, as of 1 July
88
2021, the corporate tax rate in France will be reduced from 30 to 29%. This change resulted in a
gain of €15 thousand related to the remeasurement of deferred tax assets and liabilities of the
Group’s French subsidiary, Baguette S.A., being recognised during the year ended 31 December
2020. In addition, on 23 March 2021, an increase in the corporate tax rate in the Netherlands from
25 to 30% was substantively enacted, effective from 1 January 2022. This increase does not affect
the amounts of current or deferred income taxes recognised at 31 December 2020. However, this
change will increase the Group’s future current tax charge accordingly. If the new tax rate were
applied to calculate taxable temporary differences and tax losses recognised as at 31 December
2020, then the net deferred tax assets would increase by €27 thousand.
IAS 12.81(d) In December 2019, numerous changes to the tax law were enacted in Denmark, including a NOTES
decrease in the corporate tax rate from 35 to 21%. This change resulted in a gain of €5 thousand
related to the remeasurement of deferred tax assets and liabilities of the Group’s consolidated
Danish entity, Mermaid A/S, being recognised during the year ended 31 December 2019.
a. The changes in tax laws and the tax rates disclosed or applied throughout this guide to calculate the tax impact
amounts are for illustrative purposes only and do not reflect actual changes in tax laws or corporate tax rates in the
respective jurisdictions. In practice, the applicable changes in tax laws need to be considered and tax rates of the
respective entities need to be used. All tax impacts in this guide are calculated using the tax rate of 33%.
Tax Transparency b. The Tax Transparency Code (the Code) released by the Board of Taxation requires businesses with a turnover
Code - Part A of AU$100 million or over to voluntarily disclose additional tax information in their financial statements or other
report. Such additional disclosures are included in Part A of the Code. Refer to Voluntary tax disclosures - Part A
for an example that illustrates one way in which an entity might incorporate additional disclosure requirements
in Part A of the Code within its annual financial statements.
c. The Group has allocated the entire amount of current income tax related to cash contributions to funded post-
Appendices
Insights
3.13.580.20–80 employment benefit plans to profit or loss because the cash contributions relate primarily to service costs. In our
view, the allocation of the current income tax effect to profit or loss and OCI should reflect the nature of the cash
contribution, unless it is impracticable to identify whether the cost to which the funding relates affects profit or loss or
OCI. We believe that a number of allocation approaches are acceptable if the nature of the cash contribution is unclear.
d. Although it is not specifically required, the Group has disclosed the share of tax of equity-accounted investees.
This disclosure is provided for illustrative purposes only.

Introduction
14. Income taxes (continued)

B. Amounts recognised in OCI
2020 2019
Restated
Tax Tax
Before (expense) Net of Before (expense) Net of
IAS 1.90–91, 12.81(ab) In thousands of euro tax benefit tax tax benefit tax
Items that will not be

reclassified to profit or loss
Revaluation of property, plant
Australian content
and equipment 200 (66) 134 - - -

Remeasurements of defined
benefit liability (asset) 72 (24) 48 (15) 5 (10)
Equity investments at FVOCI –
net change in fair value 141 (47) 94 59 (19) 40
Equity-accounted investees –
share of OCI 15 - 15 (3) - (3)
428 (137) 291 41 (14) 27
Items that are or may be
reclassified subsequently
to profit or loss
Foreign operations – foreign
currency translation differences 679 - 679 471 - 471
Primary statements
Net investment hedge (3) - (3) (8) - (8)

Cash flow hedges reserve:
– Effective portion of changes
in fair value (62) 21 (41) 95 (30) 65
– Net amount reclassified to
profit or loss (31) 10 (21) (12) 4 (8)
Cost of hedging reserve:
– Net change in fair value 34 (12) 22 10 (3) 7
profit or loss 8 (3) 5 2 - 2
Debt investments at FVOCI:
– Net change in fair value 54 (18) 36 60 (19) 41
profit or loss (64) 21 (43) - - -
Reclassification of foreign
NOTES
currency differences on loss

of significant influence (20) - (20) - - -
Equity-accounted investees –
share of OCI (172) - (172) (166) - (166)
423 19 442 452 (48) 404
851 (118) 733 493 (62) 431
Appendices
Income taxes
Introduction
C. Amounts recognised directly in equity
2020 2019
In thousands of euro Before tax Tax Net of tax Before tax Tax Net of tax
IAS 12.81(a) Convertible notes 163 (54) 109 - - -

IAS 12.81(a) Share-based payments - - - - 2 2
For amounts recognised directly in equity relating to correction of an error – see Note 44.
D. Reconciliation of effective tax ratea, b
Australian content
2020 2020 2019 2019
In thousands of euro Restated Restated*
IAS 12.81(c) Profit before tax from continuing operations 10,351 8,856
Tax using the Company’s domestic tax rate 33.00% 3,416 33.00% 2,922
Effect of tax rates in foreign jurisdictions (0.71%) (73) (0.55%) (49)
Reduction in tax rate (0.14%) (15) (0.06%) (5)
Tax effect of:
– Share of profit of equity-accounted investees
reported, net of tax (3.64%) (377) (2.19%) (194)
– Non-deductible expenses 2.37% 245 0.41% 36
– Tax-exempt income (0.23%) (24) (0.56%) (50)
– Tax incentives (0.85%) (88) (0.71%) (63)
Primary statements
– Current-year losses for which no deferred tax
asset is recognised 0.40% 41 1.43% 127
Recognition of previously unrecognised tax losses
(see Note 14(H)) (0.48%) (50) (2.71%) (240)
Recognition of previously unrecognised
(derecognition of previously recognised)
deductible temporary differences (0.13%) (13) 0.11% 10
Changes in estimates related to prior years 1.12% 116 (0.38%) (34)
30.70% 3,178 27.78% 2,460
NOTES
IAS 12.85 a. The Group’s reconciliation of the effective tax rate is based on its domestic tax rate, with a reconciling item in
respect of tax rates applied by Group companies in other jurisdictions. The reconciliation of the effective tax
Appendices
rate is based on an applicable tax rate that provides the most meaningful information to users. In some cases,
it might be more meaningful to aggregate separate reconciliations prepared using the domestic tax rate in each
individual jurisdiction.
IAS 12.81(c) b. Rather than presenting either a numerical reconciliation between total tax expense and the product of accounting
profit multiplied by the applicable tax rates, or a numerical reconciliation between the average effective tax rate and
the applicable tax rate, the Group has elected to present both.

Introduction

IAS 12.81(g)(i)–(ii) E. Movement in deferred tax balancesa, b, c
Recognised in
2020 Net balance at profit or loss
In thousands of euro 1 January (see (A))
Property, plant and equipment 580 (71)

Intangible assets 56 4
Biological assets (22) (182)
Australian content
Investment property (30) (7)

Investment in securities (56) (7)
Trade and other receivables, including contract assets 53 17
Derivatives (39) (5)
Inventories 64 96
Loans and borrowings - -
Employee benefits (91) 21
Equity-settled share-based payments 225 88
Provisions 508 (13)
Deferred income 54 (15)
Other items 14 25
Tax losses carried forward 386 50
Tax assets (liabilities) before set-off 1,702 1
Primary statements
Set-off of tax
Net tax assets (liabilities)
Recognised in
profit or loss
2019 Net balance at (see (A))
In thousands of euro 1 January Restated*
Property, plant and equipment 214 366

Intangible assets (38) 94
Biological assets (25) 3
Investment property (10) (20)
Investment in securities (18) 1
Trade and other receivables, including contract assets - 53
Derivatives (12) 1
Inventories 8 56
NOTES
Employee benefits (90) (6)

Equity-settled share-based paymentsd 141 82
Provisions 290 218
Deferred income 46 8
Other items 10 4
Tax losses carried forward 146 240
Tax assets (liabilities) before set-off 662 1,100
Set-off of tax
Net tax assets (liabilities)
* See Note 44.
a. IAS 12 Income Taxes requires disclosure of the amount of recognised deferred tax assets and liabilities in respect
Appendices
IAS 12.81(g),
Insights of each type of temporary difference. The Standards are unclear on what constitutes a ‘type’, and the Group has
3.13.640.60 provided the disclosures based on the classes of assets and liabilities related to the temporary differences. Another
possible interpretation is to present disclosures based on the reason for the temporary difference – e.g. depreciation.
Insights b. In our view, it is not appropriate to disclose the tax effects of both recognised and unrecognised deferred tax assets
3.13.640.70 as a single amount – e.g. similar to the ‘gross’ approach under US GAAP – because under IFRS Standards it is
recognised deferred tax assets that are required to be disclosed.
Income taxes
Introduction
Balance at 31 December
Acquired
Recognised Recognised directly in business Other
in OCI in equity combinations (see Notes 7(C) Deferred tax
(see (B)) (see (C)) (see Note 34(C)) and 20(B)) Net Deferred tax assets liabilities
(66) - (35) 210 618 739 (121)

- - (38) - 22 98 (76)
- - - - (204) - (204)
Australian content
- - - - (37) - (37)
(44) - - - (107) 32 (139)
- - - - 70 70 -
16 - - - (28) 3 (31)
- - (3) 40 197 197 -
- (54) (9) - (63) - (63)
(24) - - - (94) 160 (254)
- - - - 313 313 -
- - 6 - 501 501 -
- - - - 39 39 -
- - - - 39 50 (11)
- - - - 436 436 -
(118) (54) (79) 250 1,702 2,638 (936)
Primary statements
- (387) 387
1,702 2,251 (549)
Balance at 31 December
Acquired
Recognised Recognised directly in business Other
in OCI in equity combinations (see Notes 7(C) Deferred tax
(see (B)) (see (C)) (see Note 34(C)) and 20(B)) Net Deferred tax assets liabilities
- - - - 580 663 (83)

- - - - 56 94 (38)
- - - - (22) - (22)
- - - - (30) - (30)
(38) - - - (55) 16 (71)
- - - - 53 53 -
(29) - - - (40) 3 (43)
- - - - 64 64 - NOTES
5 - - - (91) 150 (241)
- 2 - - 225 225 -
- - - - 508 508 -
- - - - 54 54 -
- - - - 14 18 (4)
- - - - 386 386 -
(62) 2 - - 1,702 2,234 (532)
- (126) 126
1,702 2,108 (406)
Appendices
Insights 3.13.300 c. The Group does not plan to dispose of its investments in associates in the foreseeable future, and therefore has
measured deferred tax relating to these investments using the tax rates applicable to dividends, which are zero
because such dividends are tax-exempt. As a result, no deferred tax has been recognised.
IAS 12.68C d. When the amount of the tax deduction (or estimated future tax deduction) exceeds the amount of the related
cumulative share-based payment expense, the excess of the associated income tax is recognised directly in equity.
Any subsequent reduction in the excess is also recorded in equity.

Introduction

F. Unrecognised deferred tax liabilitiesa
IAS 12.81(f), 87 At 31 December 2020, there was a deferred tax liability of €1,523 thousand (2019: €1,146 thousand)
for temporary differences of €4,615 thousand (2019: €3,473 thousand) related to investments in
subsidiaries and the joint venture. However, this liability was not recognised because the Group
controls the dividend policy of its subsidiaries and is able to veto the payment of dividends of
its joint venture – i.e. the Group controls the timing of reversal of the related taxable temporary
differences and management is satisfied that they will not reverse in the foreseeable future.b
IAS 12.82A In some of the countries in which the Group operates, local tax laws provide that gains on
Australian content
the disposal of certain assets are tax-exempt, provided that the gains are not distributed. At
31 December 2020, total tax-exempt reserves amounted to €613 thousand (2019: €540 thousand),
which would result in a tax liability of €202 thousand (2019: €178 thousand) if the subsidiaries paid
dividends from these reserves.
G. Unrecognised deferred tax assets
IAS 12.81(e) Deferred tax assets have not been recognised in respect of the following items, because it is not
probable that future taxable profit will be available against which the Group can use the benefits
therefrom.c
2020 2019
Gross Gross
In thousands of euro amount Tax effect amount Tax effect
Deductible temporary differences 161 53 200 66

Primary statements
Tax losses 644 213 672 222

805 266 872 288
H. Tax losses carried forward

IAS 12.81(e) Tax losses for which no deferred tax asset was recognised expire as follows.
In thousands of euro 2020 Expiry date 2019 Expiry date
Expire 644 2023–2027 520 2023–2024

Never expire - - 152 -
IAS 1.125, 129, 12.82 In 2020, one of the Group’s UK subsidiaries, Paper Pabus Co, successfully launched a new type of
paper and entered into a number of long-term supply contracts. As a result, management revised
its estimates of future taxable profits and the Group recognised the tax effect of €152 thousand of
previously unrecognised tax losses (tax impact: €50 thousand) because management considered
it probable that future taxable profits would be available against which such losses can be used.
NOTES
In 2019, the Group’s Danish subsidiary, Mermaid A/S, launched a new production line that
would allow it to reduce costs significantly going forward and improve profitability. As a result,
management revised its estimates of future taxable profits and the Group recognised the tax
effect of €727 thousand of previously unrecognised tax losses (tax impact: €240 thousand)
because management considered it probable that future taxable profits would be available against
which such losses can be used. In 2020, Mermaid A/S achieved its planned profitability; therefore,
management continues to consider it probable that future taxable profits would be available
against which the tax losses can be recovered and, therefore, the related deferred tax asset can
be realised.
IAS 12.81(f), 87 a. Although it is not required, in addition to the aggregate amount of temporary differences associated with
investments in subsidiaries, branches and associates and interests in joint arrangements for which deferred tax
liabilities have not been recognised, the Group has also provided the encouraged disclosure of the amounts of
Appendices
unrecognised deferred tax liabilities. This disclosure is provided for illustrative purposes only.
Insights b. In our view, the ability of a joint venturer to veto the payment of dividends is sufficient to demonstrate control for
3.13.310.10 the purpose of recognising deferred tax.
IAS 12.81(e) c. Although IAS 12 only requires the disclosure of the amount of deductible temporary differences and unused tax
losses for which no deferred tax asset has been recognised, the Group has also disclosed their respective tax
effects. This disclosure is for illustrative purposes only.
Income taxes
Introduction
H. Tax losses carried forward (continued)
In 2020, the Group’s Romanian subsidiary, Lei Sure Limited, incurred a tax loss of €124 thousand,
increasing cumulative tax losses to €644 thousand (2019: €520 thousand). Management has
determined that the recoverability of cumulative tax losses, which expire in 2023–2027, is
uncertain due to surplus capacity/supply depressing paper prices in Romania. Based on the
five‑year business plan and taking into account the reversal of existing taxable temporary
differences, Lei Sure Limited is not expected to generate taxable profits until 2026. However, if
paper prices improve more quickly than forecast or new taxable temporary differences arise in the
next financial year, then additional deferred tax assets and a related income tax benefit of up to
Australian content
€213 thousand could be recognised.
I. Uncertainty over income tax treatmentsa, b

IAS 1.122, 125, 129, From 2016 until 2019, the Group’s Canadian subsidiary Maple-leaf Inc benefited from a tax ruling
12.88
of the Canadian tax authorities allowing it to qualify for a reduced corporate tax rate. In 2020,
there was a change in the Canadian government. The new government is currently debating
certain tax rulings granted in the past, which include the tax ruling applied by the Group. If the
tax ruling applied in the past is retroactively revoked, then additional tax expenses for the period
2016–2019 of up to €53 thousand may be incurred. This amount has not been recognised in
these consolidated financial statements because the Group believes that the tax ruling granted
in the past was in compliance with the applicable law and, if revoked, the Group believes that it is
probable that it would successfully defend the Group’s tax treatment in court.
Of the Group’s current tax provision, €63 thousand (2019: nil) relates to management’s estimation
Primary statements
of the amount of tax payable by the Group’s German subsidiary Papier GmbH for the ongoing tax
review, which its tax authority opened in March 2020. The uncertain tax treatment relates to the
interpretation of how the tax legislation applies to the Group’s transfer pricing arrangements. Due
to the uncertainty involved, there is a possibility that the outcome of the tax review is significantly
different from the amount currently recognised. Although management has used a single best
estimate of the tax amount expected to be paid, it is anticipated that the reasonably possible
outcome of current tax liabilities sits within a range between €51 thousand and €72 thousand.
The Group believes that its accruals for tax liabilities are adequate for all open tax years based on
its assessment of many factors, including interpretations of tax law and prior experience.
NOTES
Appendices
a. Management of the Group analysed the specific facts and circumstances of the open tax review and determined
that it is necessary to provide information about assumptions and estimates related to the uncertain tax treatment
required by paragraph 125 of IAS 1.
b. The Group provided quantitative disclosure of the sensitivity of the amount of the uncertain tax treatment to
the method, assumptions and estimates underlying the calculation. Other approaches to the disclosure may be
acceptable to meet the requirements of paragraph 129 of IAS 1.

Introduction
15. Adjusted earnings before interest, tax, depreciation and

amortisation (adjusted EBITDA)a
s t ed
ge ded
Management has presented the performance measure adjusted EBITDA because it monitors
g
this performance measure at a consolidated level and it believes that this measure is relevant
u
it is s inclu
to an understanding of the Group’s financial performance. Adjusted EBITDA is calculated by
30, ot be
adjusting profit from continuing operations to exclude the impact of taxation, net finance costs,
2
depreciation, amortisation, impairment losses/reversals related to goodwill, intangible assets,
RG uld n ts.
property, plant and equipment and the remeasurement of disposal groups, and share of profit of
C
equity-accounted investees.
A SI , sho men
in withmeasure IFRSte
d intitled
Adjusted EBITDA is not a defined performance
e te t a Standards. The Group’s definition
Australian content
nc
of adjusted EBITDA may not be comparable
a e n al s
similarly performance measures and
s i
uid s pre nanc
disclosures by other entities.
g
Reconciliation
n thof o te a EBITDA
e adjusted
th e fito profit from continuing operations
e n
Giv t this tes to
2020* 2019
t ha continuing
Profit from
e no operations 7,173 6,396
h
Income tax texpense 14 3,178 2,460
in
Profit before tax 10,351 8,856
Adjustments for:
Primary statements

– (Reversal of) impairment losses on property, plant and
equipment 21(B) (393) 1,123
– Impairment losses on goodwill 22(C) 116 -
– (Reversal of) impairment losses on intangible assets 22(C) (100) 285
– Impairment loss on remeasurement of disposal group 20(A) 35 -
Adjusted EBITDA 15,744 16,782
information has also been re‑presented due to a discontinued operation. See Note 7.
NOTES
IAS 1.85–85B, a. The Group has disclosed adjusted EBITDA because management believes that this measure is relevant to an
BC38G, understanding of the Group’s financial performance. This disclosure is provided for illustrative purposes only.
Insights 4.1.150
If an entity presents additional subtotals in the statement of financial position or statement of profit or loss and OCI,
then the subtotals:
– comprise line items made up of amounts recognised and measured in accordance with the Standards;
– are presented and labelled in a manner that makes the line items that constitute the subtotal clear and
Appendices
understandable;
– are consistent from period to period;
– are displayed with no more prominence than other subtotals and totals presented in the statement of financial
position or statement of profit or loss and OCI; and
– for the additional subtotals presented in the statement of profit or loss and OCI, are reconciled with the subtotals
and totals required by IAS 1.
Assets
Introduction
16. Biological assets
See accounting policies in Note 45(I).
A. Reconciliation of carrying amount
Standing
In thousands of euro Note timber Livestock Total
IAS 41.50, IFRS 13.93(e) Balance at 1 January 2019 3,240 196 3,436
IAS 41.50(b),
IFRS 13.93(e)(iii) Purchases 743 92 835
IAS 41.50(c),
IFRS 13.93(e)(iii) Sales of livestock - (63) (63)
Australian content
IAS 41.50(d),
IFRS 13.93(e)(iii) Harvested timber transferred to inventories (293) - (293)
IAS 41.40, 50(a) Change in fair value less costs to sell:
IAS 41.51 – Due to price changes 9(A) (17) 22 5
IAS 41.51 – Due to physical changes 9(A) 15 8 23
IAS 41.50(f) Effect of movements in exchange rates 68 45 113
IAS 41.50 Balance at 31 December 2019 3,756 300 4,056
Non-current 3,756 269 4,025
Current - 31 31
3,756 300 4,056
IAS 41.50, IFRS 13.93(e) Balance at 1 January 2020 3,756 300 4,056
IAS 41.50(b),
Primary statements
IFRS 13.93(e)(iii) Purchases 294 11 305
IAS 41.50(c),
IFRS 13.93(e)(iii) Sales of livestock - (127) (127)
IAS 41.50(d),
IFRS 13.93(e)(iii) Harvested timber transferred to inventories (135) - (135)
IAS 41.40, 50(a) Change in fair value less costs to sell:
IAS 41.51 – Due to price changes 9(A) 92 59 151
IAS 41.51 – Due to physical changes 9(A) 315 121 436
IAS 41.50(f) Effect of movements in exchange rates 30 14 44
IAS 41.50 Balance at 31 December 2020 4,352 378 4,730
Non-current 4,352 346 4,698
Current - 32 32
4,352 378 4,730
NOTES
Appendices

Introduction
16. Biological assets (continued)

A. Reconciliation of carrying amount (continued)
IAS 41.41, 43, 46(b)(i) At 31 December 2020, standing timber comprised approximately 3,310 hectares of pine tree
plantations (2019: 3,230 hectares), which ranged from newly established plantations to plantations
that were 30 years old. €282 thousand (2019: €513 thousand) of the standing timber was less than
one year old and considered to be immature assets.a
IAS 41.41, 43, At 31 December 2020, livestock comprised 1,875 cattle and 3,781 sheep (2019: 1,260 cattle
46(b)(i)–(ii)
and 3,314 sheep). During 2020, the Group sold 289 cattle and 286 sheep (2019: 150 cattle and
175 sheep).a
Australian content

i. Fair value hierarchy
IFRS 13.93(b) The fair value measurements for the standing timber have been categorised as Level 3 fair
values based on the inputs to the valuation techniques used. The fair value measurements of
livestock have been categorised as Level 2 fair values based on observable market sales data (see
Note 4(B)).
ii. Level 3 fair values
The following table shows a breakdown of the total gains (losses) recognised in respect of Level 3
fair values (standing timber).b
IFRS 13.93(e)(i) Gain included in ‘other income’

Primary statements
Change in fair value (realised) 60 3

IFRS 13.93(f) Change in fair value (unrealised) 347 (5)
IFRS 13.93(e)(ii) Gain included in OCI
IFRS 13.93(e)(ii) Effect of movements in exchange rates 30 68
NOTES
Appendices
IAS 41.43 a. This is an example of encouraged disclosures providing a quantified description of each group of biological assets,
distinguishing between mature and immature biological assets (for standing timber), and the basis for making
such distinctions.
b. Because the Group classifies the entire category of standing timber as Level 3 in the fair value hierarchy, this table
illustrates only those disclosures that are incremental to the information in the reconciliation in Note 16(A).
Assets
Introduction
iii. Valuation techniques and significant unobservable inputs
IFRS 13.93(d), (h), 99 The following table shows the valuation techniques used in measuring Level 2 and Level 3 fair
values, as well as the significant unobservable inputs used.
Inter-relationship
between key
unobservable inputs and
Type Valuation technique Significant unobservable inputs fair value measurement
Standing timber
Australian content
Standing timber Discounted cash flows: The – Estimated future timber market The estimated fair
older than valuation model considers prices per tonne (2020: €12.8– value would increase
25 years (the the present value of the 17.9, weighted average €16.25; (decrease) if:
age at which net cash flows expected 2019: €11.6–16.3, weighted – the estimated
it becomes to be generated by the average €15.15). timber prices per
marketable) plantation. The cash flow – Estimated yields per hectare tonne were higher
projections include specific (2020: 6–10, weighted average 8; (lower);
estimates for [X] years. The 2019: 5–10, weighted average 7.5). – the estimated
expected net cash flows are yields per hectare
– Estimated harvest and
discounted using a risk- were higher (lower);
transportation costs (2020: 6.4–
adjusted discount rate.
8.3%, weighted average 7.5%; – the estimated
2019: 6.3–7.8%, weighted harvest and
average 6.7%). transportation costs
were lower (higher);
– Risk-adjusted discount rate (2020:
or
7.9–9.0%, weighted average
Primary statements
8.6%; 2019: 7.1–8.3%, weighted – the risk-adjusted
average 7.8%). discount rates were
lower (higher).
Younger Cost approach and – Estimated costs of infrastructure The estimated fair
standing timber discounted cash flows: per hectare (2020: €0.8–1.1, value would increase
The Group considers both weighted average €0.95; (decrease) if:
approaches, and reconciles 2019: €0.8–1.2, weighted – the estimated costs
and weighs the estimates average €0.97). of infrastructure,
under each approach based – Estimated costs of cultivation and cultivation and
on its assessment of the preparation per hectare (2020: preparation and
judgement that market €0.2–0.4, weighted average buying and planting
participants would apply. €0.3; 2019: €0.3–0.4, weighted trees were higher
The cost approach considers average €0.35). (lower);
the costs of creating a
– Estimated costs of buying and – the estimated
comparable plantation,
planting young trees (2020: €1.0– timber prices per
taking into account the costs
1.3, weighted average €1.25; 2019: tonne were higher
of infrastructure, cultivation
€1.1–1.3, weighted average €1.2). (lower);
and preparation, buying and
NOTES
planting young trees with – Estimated future timber market – the estimated
an estimate of the profit prices per tonne (2020: €13.8– yields per hectare
that would apply to this 19.8, weighted average €17.05; were higher
activity. Discounted cash 2019: €13.7–19.5, weighted (lower); or
flows consider the present average €16.6). – the risk-adjusted
value of the net cash flows – Estimated yields per hectare discount rates were
expected to be generated (2020: 6–11, weighted average lower (higher).
by the plantation at maturity, 8.6; 2019: 7–11, weighted
the expected additional average 8.9).
biological transformation and
– Risk-adjusted discount rate (2020:
the risks associated with the
8.9–9.9%, weighted average
asset; the expected net cash
9.4%; 2019: 9.3–9.9%, weighted
flows are discounted using
average 9.6%).
risk-adjusted discount rates.
Livestock
Appendices
Livestock Market comparison Not applicable. Not applicable.

comprises cattle technique: The fair values are
and sheep, based on the market price
characterised as of livestock of similar age,
commercial or weight and market values.
breeders

Introduction

IAS 41.49(c) C. Risk management strategy related to agricultural activities
The Group is exposed to the following risks relating to its pine tree plantations.
i. Regulatory and environmental risks
The Group is subject to laws and regulations in various countries in which it operates. The
Group has established environmental policies and procedures aimed at compliance with local
environmental and other laws.
ii. Supply and demand risk
Australian content
The Group is exposed to risks arising from fluctuations in the price and sales volume of timber.
When possible, the Group manages this risk by aligning its harvest volume to market supply and
demand. Management performs regular industry trend analyses for projected harvest volumes
and pricing.
iii. Climate and other risks
The Group’s pine plantations are exposed to the risk of damage from climatic changes, diseases,
forest fires and other natural forces. The Group has extensive processes in place aimed at
monitoring and mitigating those risks, including regular forest health inspections and industry pest
and disease surveys. The Group is also insured against natural disasters such as forest fires, floods
and hurricanes.
Primary statements
NOTES
Appendices
Assets
Introduction
17. Inventories
See accounting policy in Notes 45(J) and 8(D).
IAS 1.78(c), 2.36(b) Raw materials and consumables 7,415 6,914

IAS 1.78(c), 2.36(b) Finished goods 4,200 4,705
Right to recover returned goodsa 533 500
Inventories 12,148 12,119
IAS 2.36(h) Carrying amount of inventories pledged as security for liabilities 1,650 2,090
Australian content
IAS 1.98(a), 2.36(d) In 2020, inventories of €54,019 thousand (2019: €53,258 thousand) were recognised as an expense
during the year and included in ‘cost of sales’.
IAS 2.36(e)–(g) During 2019, due to regulatory restrictions imposed on the manufacture of a new product in the
Non-recycled Papers segment, the Group tested the related product line for impairment (see
Note 22(C)(ii)) and wrote down the related inventories to their net realisable value, which resulted
in a loss of €42 thousand. In 2020, following a change in estimates, €10 thousand of the write-
down was reversed.
In addition, inventories have been reduced by €345 thousand (2019: €125 thousand) as a result
of the write-down to net realisable value. This write-down was recognised as an expense
during 2020.
The write-downs and reversals are included in ‘cost of sales’.b
Primary statements
NOTES
Appendices
IFRS 15.B21, a. IFRS 15 and other standards do not specify where assets for rights to recover products from customers with
BC367 regards to sales with a right of return should be presented. The Group has included the assets in ‘inventories’ and
disclosed them separately in the note.
Insights b. In our view, for an entity that presents an analysis of expenses by function in the statement of profit or loss and OCI,
3.8.400.70 the write-down of inventories to net realisable value and any reversals should be included in ‘cost of sales’.

Introduction
18. Trade and other receivables

See accounting policies in Notes 45(O)(i)–(ii) and (R)(i).
IAS 1.78(b) Trade receivables due from related parties 41(C) 1,236 642
IAS 1.78(b) Other trade receivables* 31,282 21,683
32,518 22,325
* Of which €426 thousand (2019: €315 thousand) relates to lease receivables.
A. Transfer of trade receivablesa

Australian content
IFRS 7.14, 42D(a)–(c) The Group sold with recourse trade receivables to a bank for cash proceeds. These trade
receivables have not been derecognised from the statement of financial position, because the
Group retains substantially all of the risks and rewards – primarily credit risk. The amount received
on transfer has been recognised as a secured bank loan (see Note 28(A)). The arrangement with
the bank is such that the customers remit cash directly to the Group and the Group transfers the
collected amounts to the bank.
The receivables are considered to be held within a held-to-collect business model consistent with
the Group’s continuing recognition of the receivables.
The following information shows the carrying amount of trade receivables at the reporting date
that have been transferred but have not been derecognised and the associated liabilities.
Primary statements
IFRS 7.42D(e) Carrying amount of trade receivables transferred to a bank 600 1,000
Carrying amount of associated liabilities 598 985
B. Credit and market risks, and impairment losses
Information about the Group’s exposure to credit and market risks, and impairment losses for
trade receivables is included in Note 32(C).
NOTES
Insights 2.3.70, a. There is no specific guidance in IFRS Standards on the classification of cash flows from factoring arrangements –
Appendices
73.30 e.g. whether the entity should classify the cash inflows from the factor as operating or financing in the statement of
cash flows. The primary consideration for the classification of cash flows is the nature of the activity to which they
relate and judgement may be needed to apply this to factoring arrangements.
Considering that the customers remit cash directly to the Group, the Group has presented a financing cash inflow
for the proceeds received from the bank, followed by an operating cash inflow for the proceeds received from the
customer and a financing cash outflow for the settlement of amounts due to the bank.
Assets
Introduction
19. Cash and cash equivalents
See accounting policies in Notes 45(O)(i)–(ii) and (R)(i).
IAS 7.45 In thousands of euro 2020 2019
Bank balances 50 988

Call deposits 1,454 861
Cash and cash equivalents in the statement of financial position 1,504 1,849
Bank overdrafts repayable on demand and used for cash management
purposes (334) (282)
Cash and cash equivalents in the statement of cash flows 1,170 1,567
Australian content
Primary statements
NOTES
Appendices

Introduction
20. Disposal group held for salea

See accounting policy in Note 45(N).
IFRS 5.41(a)–(b), 41(d) In June 2020, management committed to a plan to sell part of a manufacturing facility within the
Non-recycled Papers segment. Accordingly, part of that facility is presented as a disposal group
held for sale. Efforts to sell the disposal group have started and a sale is expected by April 2021.
IFRS 5.41(c) A. Impairment losses relating to the disposal group

Impairment losses of €35 thousand for write-downs of the disposal group to the lower of its
carrying amount and its fair value less costs to sell have been included in ‘other expenses’
(see Note 9(B)). The impairment losses have been applied to reduce the carrying amount of
Australian content
property, plant and equipment within the disposal group.
IFRS 5.38 B. Assets and liabilities of disposal group held for saleb
At 31 December 2020, the disposal group was stated at fair value less costs to sell and comprised
the following assets and liabilities.
In thousands of euro Note
Property, plant and equipment 21(A) 8,129

Inventories 2,775
Trade and other receivables 3,496
Assets held for sale 14,400
Primary statements
Trade and other payables 4,270

Deferred tax liabilities 14(E) 140
Liabilities held for sale 4,410
IFRS 5.38 C. Cumulative income or expenses included in OCI

There are no cumulative income or expenses included in OCI relating to the disposal group.
D. Measurement of fair values
IFRS 13.93(a)–(b) The non-recurring fair value measurement for the disposal group of €10,050 thousand (before
costs to sell of €60 thousand) has been categorised as a Level 3 fair value based on the inputs to
the valuation technique used (see Note 4(B)).c
NOTES
a. The part of the Group’s manufacturing facility that has been presented as a disposal group held for sale does not
meet the definition of a discontinued operation in IFRS 5. If it did, then additional disclosures applicable to the
Appendices
discontinued operation would be required.

IFRS 5.38 b. The Group has elected to disclose major classes of assets and liabilities classified as held-for-sale in the notes.
Alternatively, this information may be provided in the statement of financial position.
IFRS 13.93(a), c. A non-recurring fair value measurement – e.g. related to an asset classified as held-for-sale – may occur during the
Insights 2.4.530 reporting period. The disclosures required for a non-recurring fair value measurement are applicable in the financial
statements for the period in which the fair value measurement occurred.
Assets
Introduction
20. Disposal group held for sale (continued)
D. Measurement of fair values (continued)
ii. Valuation technique and significant unobservable inputs
IFRS 13.93(d), 99 The following table shows the valuation technique used in measuring the fair value of the disposal
group, as well as the significant unobservable inputs used.
Valuation technique Significant unobservable inputs
Cost approach and discounted cash flows: The Group considers both – Budgeted EBITDA growth rate
approaches, and reconciles and weighs the estimates under each technique (4.2–5.1%, weighted average
based on its assessment of the judgement that market participants would 4.7%).
Australian content
apply. The cost approach considers the current replacement costs of – Budgeted capital expenditure
replicating the manufacturing facility, including the costs of transportation, growth rate (3–4%, weighted
installation and start-up. Discounted cash flows consider the present value average 3.5%).
of the net cash flows expected to be generated from the facility, taking
into account the budgeted EBITDA growth rate and budgeted capital – Risk-adjusted discount rate
expenditure growth rate; the expected net cash flows are discounted using (7.7%).
a risk-adjusted discount rate.
Primary statements
NOTES
Appendices

Introduction
21. Property, plant and equipment

See accounting policies in Notes 45(K), (R)(ii) and (T)(ii).
A. Reconciliation of carrying amounta
Fixtures
Land and Plant and and Under
In thousands of euro Note buildings equipment fittings construction Total
Cost
IAS 16.73(d) Balance at 1 January 2019 10,431 29,509 5,289 - 45,229
IAS 16.73(e)(i) Additions 193 1,540 675 - 2,408
Disposals - (1,081) - - (1,081)
Australian content
IAS 16.73(e)(ii)
IAS 16.73(e)(viii) Effect of movements in exchange
rates - 316 171 - 487
IAS 16.73(d) Balance at 31 December 2019 10,624 30,284 6,135 - 47,043
IAS 16.73(e)(iii) Acquisitions through business
combinations 34(C) 185 1,580 190 - 1,955
IAS 16.73(e)(i) Additions 1,750 9,694 657 4,100 16,201
IAS 16.73(e)(ix) Reclassification to investment
property – depreciation offset (F) (300) - - - (300)
IAS 16.73(e)(ix) Revaluation of building reclassified
to investment property (F) 200 - - - 200
Primary statements
property (F) (800) - - - (800)

IAS 16.73(e)(ii) Reclassification to assets held for
sale 20(B) - (9,222) - - (9,222)
IAS 16.73(e)(ii) Disposals (89) (11,972) (2,100) - (14,161)
rates - 91 50 - 141
IAS 16.73(d) Balance at 31 December 2020 11,570 20,455 4,932 4,100 41,057
NOTES
Appendices
IAS 16.73(d)–(e) a. Although IAS 16 Property, Plant and Equipment only requires the reconciliation of the carrying amount at the
beginning and at the end of the reporting period, the Group has also provided separate reconciliations of the gross
carrying amount and accumulated depreciation. These additional reconciliations are not required and a different
format may be used.
Assets
Introduction
21. Property, plant and equipment (continued)
A. Reconciliation of carrying amount (continued)
Land and Plant and Fixtures Under
In thousands of euro Note buildings equipment and fittings construction Total
Accumulated depreciation and

impairment losses
IAS 16.73(d) Balance at 1 January 2019 1,615 5,557 939 - 8,111
IAS 16.73(e)(vii) Depreciation 9(C) 123 4,240 759 - 5,122
IAS 16.73(e)(v) Impairment loss (B), 9(C) - 1,123 - - 1,123
Disposals - (700) - - (700)
Australian content
IAS 16.73(e)(ii)
rates - 98 59 - 157
IAS 16.73(e)(vii) Depreciation 9(C) 120 4,478 741 - 5,339
IAS 16.73(e)(vi) Reversal of impairment loss (B), 9(C) - (393) - - (393)
property – depreciation offset (F) (300) - - - (300)
IAS 16.73(e)(ii) Reclassification to assets held for
sale 20(B) - (1,058) - - (1,058)
IAS 16.73(e)(ii) Disposals - (3,808) (1,127) - (4,935)
Primary statements
rates - 63 38 - 101
IAS 1.78(a), 16.73(e) Carrying amounts
At 1 January 2019 8,816 23,952 4,350 - 37,118
At 31 December 2019 8,886 19,966 4,378 - 33,230
At 31 December 2020 10,012 10,855 3,523 4,100 28,490
[IFRS 16.47] Property, plant and equipment includes right-of-use assets of €3,593 thousand (2019:
€4,153 thousand) related to leased properties that do not meet the definition of investment
property (see Note 38(A)(i)).
B. Impairment loss and subsequent reversal
IAS 36.126(a)–(b) During 2019, due to regulatory restrictions imposed on the manufacture of a new product in the
Non-recycled Papers segment, the Group tested the related product line for impairment and
recognised an impairment loss of €1,123 thousand with respect to plant and equipment. In 2020, NOTES
€393 thousand of the loss was reversed. Further information about the impairment loss and
subsequent reversal is included in Note 22(C)(ii).
C. Leased plant and equipment
IAS 7.43 During 2020, the Group leased land and buildings and recognised a right-to-use asset of
€150 thousand (2019: €180 thousand of production equipment). Some leases provide the Group
with the option to buy the equipment at a beneficial price.
Appendices

Introduction
21. Property, plant and equipment (continued)

D. Security
IAS 16.74(a) At 31 December 2020, properties with a carrying amount of €5,000 thousand (2019: €4,700 thousand)
were subject to a registered debenture that forms security for bank loans (see Note 28(A)).
E. Property, plant and equipment under construction
IAS 16.74(b) During 2020, the Group acquired a piece of land for €3,100 thousand, with the intention of
constructing a new factory on the site.
IAS 23.26 The Group has started construction and costs incurred up to 31 December 2020 totalled
€1,000 thousand (2019: nil). Included in this amount are capitalised borrowing costs related to the
Australian content
acquisition of the land and the construction of the factory of €194 thousand, calculated using a
capitalisation rate of 5.2%.
F. Transfer to investment property
During 2020, a building was transferred to investment property (see Note 23(A)), because it was
no longer used by the Group and it was decided that the building would be leased to a third party.
IFRS 13.93(d) Immediately before the transfer, the Group remeasured the property to fair value and recognised
a gain of €200 thousand in OCI. The valuation techniques and significant unobservable inputs used
in measuring the fair value of the building at the date of transfer were the same as those applied to
investment property at the reporting date (see Note 23(C)(ii)).
G. Change in estimates
Primary statements
IAS 8.39, 16.76 During 2020, the Group conducted an operational efficiency review at one of its plants, which
resulted in changes in the expected usage of certain dyeing equipment. The dyeing equipment,
which management had previously intended to sell after five years of use, is now expected to
remain in production for 12 years from the date of purchase. As a result, the expected useful life of
the equipment increased and its estimated residual value decreased. The effect of these changes
on actual and expected depreciation expense, included in ‘cost of sales’, was as follows.
In thousands of euro 2020 2021 2022 2023 2024 Later
(Decrease) increase in depreciation

expense (256) (113) 150 150 130 170
H. Change in classification
IAS 1.41(a)–(c) During 2020, the Group modified the classification of depreciation expense on certain office
space to reflect more appropriately the way in which economic benefits are derived from its use.
Comparative amounts in the statement of profit or loss and OCI were reclassified for consistency.
As a result, €120 thousand was reclassified from ‘administrative expenses’ to ‘selling and
NOTES
distribution expenses’.
I. Temporarily idle property, plant and equipment

IAS 16.79 At 31 December 2020, plant and equipment with a carrying amount of €503 thousand were
temporarily idle, but the Group plans to operate the assets in 2021.
Appendices
Assets
Introduction
22. Intangible assets and goodwill
See accounting policies in Notes 45(L) and (R)(ii).
A. Reconciliation of carrying amounta
Patents and Development Customer
In thousands of euro Note Goodwill trademarks costs relationships Total
IFRS 3.B67(d)(i), Cost

IAS 38.118(c) Balance at 1 January 2019 3,545 1,264 4,111 - 8,920
IAS 38.118(e)(i) Acquisitions – internally
developed - - 515 - 515
Effect of movements in
Australian content
IAS 38.118(e)(vii)
exchange rates - (171) (75) - (246)
IFRS 3.B67(d)(viii),
IAS 38.118(c) Balance at 31 December 2019 3,545 1,093 4,551 - 9,189
IFRS 3.B67(d)(i),
IAS 38.118(c) Balance at 1 January 2020 3,545 1,093 4,551 - 9,189
IFRS 3.B67(d)(ii), Acquisitions through business
IAS 38.118(e)(i)
combinations 34(C)–(D) 541 170 - 80 791
IAS 38.118(e)(i) Acquisitions – internally
developed - - 1,272 - 1,272
IAS 38.118(e)(vii) Effect of movements in
exchange rates - 186 195 - 381
IAS 38.118(c) Balance at 31 December 2020 4,086 1,449 6,018 80 11,633
Primary statements
Accumulated amortisation
IFRS 3.B67(d)(i),
and impairment losses
IAS 38.118(c) Balance at 1 January 2019 138 552 2,801 - 3,491
IAS 38.118(e)(vi) Amortisation (B), 9(C) - 118 677 - 795
IAS 38.118(e)(iv) Impairment loss (C), 9(C) - - 285 - 285
IAS 38.118(e)(vii) Effect of movements in exchange
rates - (31) (12) - (43)
IAS 38.118(c) Balance at 31 December 2019 138 639 3,751 - 4,528
IFRS 3.B67(d)(i),
IAS 38.118(c) Balance at 1 January 2020 138 639 3,751 - 4,528
IAS 38.118(e)(vi) Amortisation (B), 9(C) - 129 646 10 785
IFRS 3.B67(d)(v),
IAS 38.118(e)(iv) Impairment loss (C), 9(B) 116 - - - 116
IAS 38.118(e)(v) Reversal of impairment loss (C), 9(C) - - (100) - (100)
NOTES
IAS 38.118(e)(vii) Effect of movements in
exchange rates - 61 17 - 78
IAS 38.118(c) Balance at 31 December 2020 254 829 4,314 10 5,407
Carrying amounts
IAS 38.118(c) At 1 January 2019 3,407 712 1,310 - 5,429
IAS 38.118(c) At 31 December 2019 3,407 454 800 - 4,661
IAS 38.118(c) At 31 December 2020 3,832 620 1,704 70 6,226
Appendices
IAS 38.118(c), (e) a. Although IAS 38 Intangible Assets requires only the reconciliation of the carrying amount at the beginning and at the
end of the reporting period, the Group has also provided separate reconciliations of the gross carrying amount and
accumulated amortisation. These additional reconciliations are not required and a different format may be used.

Introduction
22. Intangible assets and goodwill (continued)

IAS 38.118(d) B. Amortisation
The amortisation of patents, trademarks and development costs is allocated to the cost of
inventory and is included in ‘cost of sales’ as inventory is sold; the amortisation of customer
relationships is included in ‘cost of sales’.
C. Impairment test
IAS 36.131(b) The impairment loss and its subsequent reversal were recognised in relation to the manufacture of
a new product in the Non-recycled Papers segment and the goodwill in the Timber Products CGU
as follows.
Australian content
IAS 36.130(d)(ii) Non-recycled Papers

Plant and equipment and development costs (ii) (493) 1,408
IAS 36.126(a)–(b) The impairment loss and subsequent reversal in relation to the Non-recycled Papers segment
were included in ‘cost of sales’ (see Note 9(C)).a
IAS 36.130(d)(ii) Timber Products

Goodwill (iii) 116 -
IAS 36.126(a)–(b) The impairment loss on goodwill in the Timber Products CGU was included in ‘other expenses’
(see Note 9(B)).a
Primary statements
i. Recoverability of development costsb

IAS 36.132 Included in the carrying amount of development costs at 31 December 2020 is an amount of
€400 thousand related to a development project for a new process in one of the Group’s factories
in the Non-recycled Papers segment. The regulatory approval that would allow this new process
was delayed; consequently, the benefit of the new process will not be realised as soon as
previously expected and management has carried out an impairment test.
The recoverable amount of the CGU that included these development costs (the factory using
the process) was estimated based on the present value of the future cash flows expected to be
derived from the CGU (value in use), assuming that the regulatory approval would be passed by
July 2021 and using a pre-tax discount rate of 12% and a terminal value growth rate of 2% from
2025. The recoverable amount of the CGU was estimated to be higher than its carrying amount
and no impairment was required.
IAS 1.125, 129 Management considers it possible that the regulatory approval may be delayed by a further year to
July 2022. This further delay would result in an impairment of approximately €100 thousand in the
NOTES
carrying amount of the factory.
IAS 36.126, a. The Group has classified expenses by function and has therefore allocated the impairment loss to the appropriate
Appendices
Insights 3.10.410.20 function. In our view, in the rare case that an impairment loss cannot be allocated to a function, it should be included
in ‘other expenses’ as a separate line item if it is significant (e.g. impairment of goodwill), with additional information
given in a note.
IAS 36.132, 134 b. The Group has disclosed the key assumptions used (discount rate and terminal growth rate) to determine the
recoverable amount of assets and CGUs, although disclosures beyond the discount rate are required only for CGUs
containing goodwill or indefinite-lived intangible assets.
Assets
Introduction
C. Impairment test (continued)
ii. Impairment loss and subsequent reversal in relation to a new product
IAS 36.130(a), (d)(i) During 2019, a regulatory inspection revealed that a new product in the Non-recycled Papers
segment did not meet certain environmental standards, necessitating substantial changes to the
manufacturing process. Before the inspection, the product was expected to be available for sale in
2020; however, as a result of the regulatory restrictions, production and the expected launch date
were deferred.
IAS 36.130(e) Accordingly, management estimated the recoverable amount of the CGU (the product line)
Australian content
in 2019. The recoverable amount was estimated based on its value in use, assuming that the
production line would go live in August 2021.
In 2020, following certain changes to the recovery plan, the Group reassessed its estimates and
reversed part of the initially recognised impairment.
IAS 36.130(g), 132 The estimate of value in use was determined using a pre-tax discount rate of 10.5% (2019: 9.8%)
and a terminal value growth rate of 3% from 2025 (2019: 3% from 2024).a
Plant and equipment 21(B) (393) 1,123

Development costs (100) 285
(Reversal of) impairment loss (493) 1,408
At 31 December 2020, the recoverable amount of the CGU was as follows.
Primary statements
IAS 36.130(e)
Recoverable amount 1,576 1,083
iii. Impairment testing for CGUs containing goodwillb

IAS 36.134(a) For the purposes of impairment testing, goodwill has been allocated to the Group’s CGUs
(operating divisions) as follows.
European Paper manufacturing and distribution 2,676 2,135

Timber Products 960 1,076
3,636 3,211
IAS 36.135 Multiple units without significant goodwill 196 196
3,832 3,407
NOTES
Appendices
IAS 36.132, 134 a. The Group has disclosed the key assumptions used (discount rate and terminal growth rate) to determine the
recoverable amount of assets and CGUs, although disclosures beyond the discount rate are required only for CGUs
containing goodwill or indefinite-lived intangible assets.
IAS 36.134 b. Separate disclosures are required for each CGU (or group of CGUs) for which the carrying amount of goodwill or
intangible assets with an indefinite useful life allocated to the CGU is significant in comparison with its carrying amount.

Introduction

iii. Impairment testing for CGUs containing goodwill (continued)
European Paper manufacturing and distribution
IAS 36.134(c), (e) The recoverable amount of this CGU was based on fair value less costs of disposal, estimated
using discounted cash flows. The fair value measurement was categorised as a Level 3 fair value
based on the inputs in the valuation technique used (see Note 4(B)).
IAS 36.134(e)(i) The key assumptionsa used in the estimation of the recoverable amount are set out below.
The values assigned to the key assumptions represent management’s assessment of future
Australian content
trends in the relevant industries and have been based on historical data from both external and
internal sources.
IAS 36.134(f)(ii) In percent 2020 2019
IAS 36.134(e)(v) Discount rate 8.7 8.5

IAS 36.134(e)(iv) Terminal value growth rate 1.0 0.9
IAS 36.134(e)(i), (f)(ii) Budgeted EBITDA growth rate (average of next five years) 5.2 4.8
IAS 36.134(e)(ii) The discount rate was a post-tax measure estimated based on the historical industry average
weighted-average cost of capital, with a possible debt leveraging of 40% at a market interest rate
of 7%.
IAS 36.134(e)(ii)–(iii) The cash flow projections included specific estimates for five years and a terminal growth rate
thereafter. The terminal growth rate was determined based on management’s estimate of the
Primary statements
long-term compound annual EBITDA growth rate, consistent with the assumptions that a market
participant would make.
IAS 36.134(e)(ii) Budgeted EBITDA was estimated taking into account past experience, adjusted as follows.
– Revenue growth was projected taking into account the average growth levels experienced over
the past five years and the estimated sales volume and price growth for the next five years. It
was assumed that the sales price would increase in line with forecast inflation over the next
five years.
– Significant one-off environmental costs have been factored into the budgeted EBITDA,
reflecting various potential regulatory developments in a number of European countries in which
the CGU operates. Other environmental costs are assumed to grow with inflation in other years.
– Estimated cash flows related to a restructuring that is expected to be carried out in 2021 were
reflected in the budgeted EBITDA.
IAS 36.134(f)(i) The estimated recoverable amount of the CGU exceeded its carrying amount by approximately
NOTES
€300 thousand (2019: €250 thousand). Management has identified that a reasonably possible
change in two key assumptions could cause the carrying amount to exceed the recoverable
amount. The following table shows the amount by which these two assumptions would need to
change individually for the estimated recoverable amount to be equal to the carrying amount.
Change required for
carrying amount to equal
recoverable amount
In percent 2020 2019
IAS 36.134(f)(iii) Discount rate 1.6 1.3

IAS 36.134(f)(iii) Budgeted EBITDA growth rate (4.4) (3.6)
Appendices
IAS 36.134(d)(ii), a. IAS 36 Impairment of Assets specifically requires quantitative disclosures (i.e. values) in respect of the discount
(iv)–(v), (e)(ii), rates and growth rates used to extrapolate cash flow projections. Narrative disclosures are sufficient for other key
(iv)–(v), (f), IE89 assumptions, having regard to the requirement for an entity to disclose a description of management’s approach
to determining the value(s) assigned to each key assumption, whether those value(s) reflect past experience or,
if appropriate, are consistent with external sources of information, and, if not, how and why they differ from past
experience or external sources of information. An entity also discloses additional quantitative information if a
reasonably possible change in key assumptions would result in an impairment.
Assets
Introduction
iii. Impairment testing for CGUs containing goodwill (continued)
Timber Products
IAS 1.125, The recoverable amount of this CGU was based on its value in use, determined by discounting
36.134(c)–(d)
the future cash flows to be generated from the continuing use of the CGU. The carrying amount
of the CGU was determined to be higher than its recoverable amount of €960 thousand and an
impairment loss of €116 thousand during 2020 (2019: nil) was recognised. The impairment loss
was fully allocated to goodwill and included in ‘other expenses’.
Australian content
IAS 36.134(d)(i) The key assumptions used in the estimation of value in use were as follows.a
In percent 2020 2019
IAS 36.134(d)(v) Discount rate 9.6 10.0

IAS 36.134(d)(iv) Terminal value growth rate 1.8 2.0
IAS 36.134(d)(i), (f)(ii) Budgeted EBITDA growth rate (average of next five years) 8.0 9.0
IAS 36.134(d)(ii) The discount rate was a pre-tax measureb based on the rate of 10-year government bonds issued by
the government in the relevant market and in the same currency as the cash flows, adjusted for a
risk premium to reflect both the increased risk of investing in equities generally and the systematic
risk of the specific CGU.
IAS 36.134(d)(ii)–(iii) Five years of cash flows were included in the discounted cash flow model. A long-term growth rate
into perpetuity has been determined as the lower of the nominal gross domestic product (GDP)
Primary statements
rates for the countries in which the CGU operates and the long-term compound annual EBITDA
growth rate estimated by management.
Budgeted EBITDA was based on expectations of future outcomes taking into account past
experience, adjusted for anticipated revenue growth. Revenue growth was projected taking into
account the average growth levels experienced over the past five years and the estimated sales
volume and price growth for the next five years. It was assumed that sales prices would grow at a
constant margin above forecast inflation over the next five years, in line with information obtained
from external brokers who publish a statistical analysis of long-term market trends.
IAS 36.134(f) Following the impairment loss recognised in the Group’s Timber Products CGU, the recoverable
amount was equal to the carrying amount. Therefore, any adverse movement in a key assumption
would lead to further impairment.
D. Development costs
IAS 23.26(a)–(b) Included in development costs is an amount of €37 thousand (2019: €12 thousand) that represents
NOTES
borrowing costs capitalised during the year using a capitalisation rate of 5.1% (2019: 5.4%).
IAS 36.134(d)(ii), a. IAS 36 specifically requires quantitative disclosures (i.e. values) in respect of the discount rates and growth rates
(iv)–(v), (e)(ii), used to extrapolate cash flow projections. Narrative disclosures are sufficient for other key assumptions, having
(iv)–(v), (f), IE89 regard to the requirement for an entity to disclose a description of management’s approach to determining the
value(s) assigned to each key assumption, whether those value(s) reflect past experience or, if appropriate, are
consistent with external sources of information, and, if not, how and why they differ from past experience or external
sources of information. An entity also discloses additional quantitative information if a reasonably possible change in
key assumptions would result in an impairment.
IAS 36.50(b), 55, b. IAS 36 prima facie requires value in use to be determined using pre-tax cash flows and a pre-tax discount rate.
Appendices
A20, Insights However, in our experience it is more common to use post-tax cash flows and a post-tax discount rate such as the
3.10.840.10–20 weighted-average cost of capital. Challenges arise in following a post-tax approach appropriately so that the resulting
value in use is consistent with the pre-tax principle.
Whichever rate is used (pre- or post-tax), the pre-tax discount rate needs to be disclosed. When value in use is
determined using post-tax cash flows and a post-tax discount rate, the pre-tax discount rate needs to be calculated
to comply with the disclosure requirements.

Introduction
23. Investment propertya

See accounting policy in Note 45(M).
A. Reconciliation of carrying amount
IAS 40.76, IFRS 13.93(e) Balance at 1 January 400 300

IAS 40.76(a),
IFRS 13.93(e)(iii) Acquisitions 300 40
IAS 40.76(f),
IFRS 13.93(e)(iii) Reclassification from property, plant and equipment 21(F) 800 -
IAS 40.76(d),
Australian content
IFRS 13.93(e)(i), (f) Change in fair value 9(A) 20 60

IAS 40.76, IFRS 13.93(e) Balance at 31 December 1,520 400
IFRS 16.92(a) Investment property comprises a number of commercial properties that are leased to third parties.
Each of the leases contains an initial non-cancellable period of 10 years. Subsequent renewals
are negotiated with the lessee and historically the average renewal period is four years. Further
information about these leases is included in Note 38(B).
IFRS 13.93(e)(i), (f) Changes in fair values are recognised as gains in profit or loss and included in ‘other income’. All
gains are unrealised.
B. Amounts recognised in profit or loss
IAS 40.75(f)(i)–(iii) Rental income recognised by the Group during 2020 was €460 thousand (2019: €302 thousand)
and was included in ‘other revenue’ (see Note 8(A)). Maintenance expense, included in ‘cost of
Primary statements
sales’ (see Note 9(C)), was as follows.

Income-generating property 45 30
Vacant property 20 15
65 45
C. Measurement of fair values
IAS 40.75(e) The fair value of investment property was determined by external, independent property valuers,
having appropriate recognised professional qualifications and recent experience in the location
and category of the property being valued. The independent valuers provide the fair value of the
Group’s investment property portfolio every six months.
IFRS 13.93(b) The fair value measurement for all of the investment properties has been categorised as a Level 3
fair value based on the inputs to the valuation technique used (see Note 4(B)).
NOTES
Appendices
Insights 3.4.260.40 a. Because IAS 40 Investment Property makes no reference to making disclosures on a class-by-class basis, it could be
assumed that the minimum requirement is to make the disclosures on an aggregate basis for the whole investment
property portfolio. If investment property represents a significant portion of the assets, then it may be appropriate to
disclose additional analysis – e.g. portfolio by types of investment property.
Assets
Introduction
23. Investment property (continued)
C. Measurement of fair values (continued)
ii. Valuation technique and significant unobservable inputs
IFRS 13.93(d), (h)(i), 99 The following table shows the valuation technique used in measuring the fair value of investment
property, as well as the significant unobservable inputs used.
Inter-relationship between key
unobservable inputs and fair value
Valuation technique Significant unobservable inputs measurement
Discounted cash flows: The – Expected market rental growth The estimated fair value would
Australian content
valuation model considers the (2020: 2–3%, weighted average increase (decrease) if:
present value of net cash flows to 2.6%; 2019: 2–3%, weighted – expected market rental
be generated from the property, average 2.5%). growth were higher (lower);
taking into account the expected – Void periods (2020 and 2019: – void periods were shorter
rental growth rate, void periods, average 6 months after the end of (longer);
occupancy rate, lease incentive each lease).
costs such as rent-free periods – the occupancy rate were
– Occupancy rate (2020: 90–95%, higher (lower);
and other costs not paid by
weighted average 92.5%; 2019:
tenants. The expected net cash – rent-free periods were shorter
91–95%, weighted average 92.8%).
flows are discounted using risk- (longer); or
adjusted discount rates. Among – Rent-free periods (2020 and 2019:
– the risk-adjusted discount rate
other factors, the discount rate 1-year period on new leases).
were lower (higher).
estimation considers the quality – Risk-adjusted discount rates
of a building and its location (2020: 5–6.3%, weighted average
(prime vs secondary), tenant 5.8%; 2019: 5.7–6.8%, weighted
credit quality and lease terms. average 6.1%).
Primary statements
NOTES
Appendices

Introduction
24. Equity-accounted investeesa, b

See accounting policies in Notes 45(A)(v)–(vi) and (R)(i).
Interest in joint venture (A) 2,217 1,048

Interests in associates (B) 272 900
Balance at 31 December 2,489 1,948
c
A. Joint venture
IFRS 12.20(a), Paletel AG (Paletel) is a joint venture in which the Group has joint control and a 40% ownership
21(a)(i)–(iii), (b)(iii)
interest. It is one of the Group’s strategic suppliers and is principally engaged in the production of
Australian content
paper pulp in Himmerland, Denmark. Paletel is not publicly listed.

IFRS 12.7(c), 20(b), Paletel is structured as a separate vehicle and the Group has a residual interest in the net assets of
23(a), B18
Paletel. Accordingly, the Group has classified its interest in Paletel as a joint venture. In accordance
with the agreement under which Paletel is established, the Group and the other investor in the
joint venture have agreed to make additional contributions in proportion to their interests to make
up any losses, if required, up to a maximum amount of €6,000 thousand. This commitment has not
been recognised in these consolidated financial statements.
Primary statements
NOTES
a. For additional disclosure examples and explanatory notes on IFRS 12 Disclosure of Interests in Other Entities, see
our Guide to annual financial statements – IFRS 12 supplement.
Appendices
IFRS 12.21 b. The extent of disclosures required by IFRS 12 for individually material interests in joint arrangements and associates
differs from that for individually immaterial interests. For example, required financial information may be disclosed in
aggregate for all individually immaterial associates.
IFRS 12.21–23, c. The extent of disclosures required by IFRS 12 for individually material joint ventures and joint operations is different.
B12–B13 For example, the disclosure of summarised financial information, fair value (if there is a quoted market price) and
commitments is not required for joint operations.
Assets
Introduction
24. Equity-accounted investees (continued)
A. Joint venture (continued)
IFRS 12.21(b), The following table summarises the financial information of Paletel as included in its own financial
B12–B14
statements, adjusted for fair value adjustments at acquisition and differences in accounting
policies. The table also reconciles the summarised financial information to the carrying amount of
the Group’s interest in Paletel.
IFRS 12.21(a)(iv) Percentage ownership interest 40% 40%

IFRS 12.B12(b)(ii) Non-current assets 5,953 3,259
Australian content
IFRS 12.B12(b)(i), Current assets (including cash and cash equivalents –
B13(a)
2020: €200 thousand, 2019: €150 thousand) 1,089 821
IFRS 12.B12(b)(iv), Non-current liabilities (including non-current financial liabilities
B13(c) excluding trade and other payables and provisions –
2020: €1,211 thousand, 2019: €986 thousand) (1,716) (1,320)
IFRS 12.B12(b)(iii), Current liabilities (including current financial liabilities
B13(b)
excluding trade and other payables and provisions –
2020: €422 thousand, 2019: €930 thousand) (543) (1,130)
Net assets (100%) 4,783 1,630
Group’s share of net assets (40%) 1,913 652
Elimination of unrealised profit on downstream sales (96) (4)
Goodwill 400 400
Primary statements
Carrying amount of interest in joint venture 2,217 1,048
IFRS 12.B12(b)(v) Revenue 25,796 21,405
IFRS 12.B13(d) Depreciation and amortisation (445) (350)
IFRS 12.B13(f) Interest expense (396) (218)
IFRS 12.B13(g) Income tax expense (1,275) (290)
IFRS 12.B12(b)(vi), (ix) Profit and total comprehensive income (100%) 3,205 690
Profit and total comprehensive income (40%) 1,282 276
Elimination of unrealised profit on downstream sales (92) (4)
Group’s share of total comprehensive income 1,190 272
IFRS 12.B12(a) Dividends received by the Group 21 -
NOTES
Appendices

Introduction
24. Equity-accounted investees (continued)

B. Associates
IFRS 12.20, 21(a)(i)–(iii), On 31 March 2020, the Group’s equity interest in its material associate, Papyrus, increased from
(b)(iii)
25 to 90% and Papyrus became a subsidiary from that date (see Note 34). Papyrus is one of the
Group’s strategic suppliers and is principally engaged in the production of paper pulp in Kentucky,
United States. Papyrus is not publicly listed.
IFRS 12.21(b), The following table summarises the financial information of Papyrus as included in its own financial
B12–B14
statements, adjusted for fair value adjustments at acquisition and differences in accounting
policies. The table also reconciles the summarised financial information to the carrying amount
Australian content
of the Group’s interest in Papyrus. The information for 2019 presented in the table includes the
results of Papyrus for the period from 1 January to 31 December 2019. The information for 2020
includes the results of Papyrus only for the period from 1 January to 31 March 2020, because
Papyrus became a subsidiary on 31 March 2020.
IFRS 12.21(a)(iv) Percentage ownership interest 25% 25%

IFRS 12.B12(b)(ii) Non-current assets - 1,280
IFRS 12.B12(b)(i) Current assets - 1,975
IFRS 12.B12(b)(iv) Non-current liabilities - (1,087)
IFRS 12.B12(b)(iii) Current liabilities - (324)
Net assets (100%) - 1,844
Group’s share of net assets (25%) - 461
Primary statements
Elimination of unrealised profit on downstream sales - (8)

Carrying amount of interest in associate - 453
IFRS 12.B12(b)(v) Revenue 7,863 19,814
IFRS 12.B12(b)(vi) Profit from continuing operations (100%) 271 857
IFRS 12.B12(b)(viii) Other comprehensive income (100%) (408) (552)
IFRS 12.B12(b)(ix) Total comprehensive income (100%) (137) 305
Total comprehensive income (25%) (34) 76
Elimination of unrealised profit on downstream sales 1 (1)
Group’s share of total comprehensive income (33) 75
IFRS 12.7(b), 12.9(e), The Group also has interests in a number of individually immaterial associates. For one of these
IAS 1.122
associates, the Group owns 20% of the equity interests but has less than 20% of the voting
rights; however, the Group has determined that it has significant influence because it has
meaningful representation on the board of the investee.
NOTES
IFRS 12.21(c), B16 The following table analyses, in aggregate, the carrying amount and share of profit and OCI of
these associates.
Carrying amount of interests in associates 272 447

Share of:
– Profit from continuing operations (133) 102
– OCI (57) (31)
(190) 71
IFRS 12.22(c) The Group has not recognised losses totalling €15 thousand (2019: nil) in relation to its interests in
associates, because the Group has no obligation in respect of these losses.
Appendices
During 2020, the Group repaid a loan of €1,000 thousand received from one of its associates (see
Notes 28 and 41(C)).
Assets
Introduction
25. Other investments, including derivatives
See accounting policies in Notes 45(O) and (R)(i).
Non-current investments
IFRS 7.8(f) Corporate debt securities – at amortised cost 2,421 2,243
IFRS 7.8(h) Corporate debt securities – at FVOCI 118 373
IFRS 7.8(h) Equity securities – at FVOCI 710 511
IFRS 7.8(a) Equity securities – mandatorily at FVTPL 251 254
IFRS 7.22B(a) Interest rate swaps used for hedging 116 131
Australian content
3,616 3,512
Current investments
IFRS 7.8(a) Sovereign debt securities – mandatorily at FVTPL 243 591
IFRS 7.22B(a) Forward exchange contracts used for hedging 297 352
Other forward exchange contracts 122 89
662 1,032
IFRS 7.7 Corporate debt securities classified as at amortised cost have interest rates of 6.3 to 7.8% (2019: 7.5
to 8.3%) and mature in two to five years. Corporate debt securities at FVOCI have stated interest
rates of 5.2 to 7.0% (2019: 6.5 to 8.0%) and mature in two to three years.
Sovereign debt securities at FVTPL have stated interest rates of 3.5 to 4.0% (2019: 3.2 to 3.8%) and
are held for trading.
Primary statements
Information about the Group’s exposure to credit and market risks, and fair value measurement, is
included in Note 32(C).
Equity securities designated as at FVOCIa
IFRS 7.11A The Group designated the investments shown below as equity securities at FVOCI because
these equity securities represent investments that the Group intends to hold for the long term for
strategic purposes.
Dividend Dividend
Fair value at Fair value at income income
31 December 31 December recognised recognised
In thousands of euro 2020 2019 during 2020 during 2019
Investment in MSE Limited 243 175 10 12

Investment in DEF Limited 467 336 16 20
710 511 26 32
IFRS 7.11A(e) No strategic investments were disposed of during 2020, and there were no transfers of any NOTES
cumulative gain or loss within equity relating to these investments.
Insights 7.10.230.25 a. When disclosing which investments in equity instruments have been designated as at FVOCI, it appears that an
entity should apply judgement in determining what disclosures would provide the most useful information for
Appendices
financial statement users. We believe that in most cases, disclosing the names of individual investees would be
appropriate – e.g. if an entity has a small number of individually significant investments, particularly if this disclosure
enables users to access additional information about those investees from other sources. However, in some cases
disclosure at a higher level of aggregation and disclosures other than the names of investees may provide more
useful information. For example, if an entity has a large number of individually insignificant investments in a few
industries, then disclosure by industry may be appropriate. Similarly, if an entity holds investments for which no
public information is available, then disclosure about the nature and purpose of those investments may be relevant.

Introduction
26. Capital and reservesa

See accounting policies in Notes 45(B)(i)–(ii), (E)(iv), (K)(iv), (O)(ii), (O)(iv)–(v), (P) and (Q).
A. Share capital and share premium
Non-redeemable
Ordinary shares preference shares
IAS 1.79(a)(iv) In thousands of shares 2020 2019 2020 2019
In issue at 1 January 3,100 3,100 1,750 1,750

Issued for cash 130 - - -
Exercise of share options 5 - - -
Australian content
Issued in business combination 8 - - -

IAS 1.79(a)(ii) In issue at 31 December – fully paid 3,243 3,100 1,750 1,750
IAS 1.79(a)(i), (iii) Authorised – par value €3 10,000 10,000 2,000 2,000
IAS 1.79(a)(v) All ordinary shares rank equally with regard to the Company’s residual assets. Preference
shareholders participate only to the extent of the face value of the shares.
i. Ordinary shares
Holders of these shares are entitled to dividends as declared from time to time and are entitled
to one vote per share at general meetings of the Company. All rights attached to the Company’s
shares held by the Group are suspended until those shares are reissued.
Issue of ordinary shares
IAS 1.79(a) In October 2020, the general meeting of shareholders approved the issue of 130,000 ordinary
Primary statements
shares at a price of €11.92 per share (2019: nil).
Additionally, 5,000 ordinary shares were issued as a result of the exercise of vested options arising
from the 2015 share option programme granted to key management personnel (2019: nil) (see
Note 12). Options were exercised at an average price of €10 per share.
IAS 7.43 During 2020, 8,000 ordinary shares were also issued as a result of the acquisition of Papyrus (see
Note 34(A)) (2019: nil).
ii. Non-redeemable preference shares
Holders of these shares receive a non-cumulative dividend of 25.03 cents per share at the
Company’s discretion, or whenever dividends to ordinary shareholders are declared. They do not
have the right to participate in any additional dividends declared for ordinary shareholders. These
shares do not have voting rights.
B. Nature and purpose of reserves
NOTES
i. Translation reserve
IAS 1.79(b) The translation reserve comprises all foreign currency differences arising from the translation
of the financial statements of foreign operations, as well as the effective portion of any foreign
currency differences arising from hedges of a net investment in a foreign operation (see
Note 45(O)(v)).
Appendices
a. Refer to Australia content: Note 26 Capital and reserves for additional Australia specific disclosures.
Equity and liabilities
Introduction
26. Capital and reserves (continued)
B. Nature and purpose of reserves (continued)
IAS 1.79(b) ii. Hedging reserve
The hedging reserve comprises the effective portion of the cumulative net change in the fair value
of hedging instruments used in cash flow hedges pending subsequent recognition in profit or
loss or directly included in the initial cost or other carrying amount of a non-financial asset or non-
financial liability.
IAS 1.79(b) iii. Cost of hedging reserve
The cost of hedging reserve reflects gain or loss on the portion excluded from the designated
Australian content
hedging instrument that relates to the forward element of forward contracts. It is initially
recognised in OCI and accounted for similarly to gains or losses in the hedging reserve.
iv. Fair value reserve
IAS 1.79(b) The fair value reserve comprises:
– the cumulative net change in the fair value of equity securities designated at FVOCI; and
– the cumulative net change in fair value of debt securities at FVOCI until the assets are
derecognised or reclassified. This amount is adjusted by the amount of loss allowance.
v. Revaluation reserve
IAS 1.79(b) The revaluation reserve relates to the revaluation of property, plant and equipment immediately
before its reclassification as investment property.
Primary statements
vi. Convertible notes
IAS 1.79(b) The reserve for convertible notes comprises the amount allocated to the equity component for the
convertible notes issued by the Group in May 2020 (see Note 28(C)).
vii. Treasury share reserve
IAS 1.79(b), 32.34 The reserve for the Company’s treasury shares comprises the cost of the Company’s shares
held by the Group. At 31 December 2020, the Group held 48,000 of the Company’s shares
(2019: 50,000).a
C. Dividends
IAS 1.107 The following dividends were declared and paid by the Company for the year.
25.97 cents per qualifying ordinary share (2019: 4.28 cents) 805 133
25.03 cents per non-redeemable preference share (2019: 25.03 cents) 438 438 NOTES
1,243 571
IAS 1.137(a), 10.13, After the reporting date, the following dividends were proposed by the board of directors. The
12.81(i)
dividends have not been recognised as liabilities and there are no tax consequences.
27.92 cents per qualifying ordinary share (2019: 25.97 cents) 892 805
25.03 cents per non-redeemable preference share (2019: 25.03 cents) 438 438
1,330 1,243
Appendices
IAS 1.79(a)(vi), 32.34 a. The Group has elected to disclose the number of treasury shares held in the notes. Alternatively, it may be disclosed
in the statement of financial position or the statement of changes in equity.

Introduction
26D
26. Capital and reserves (continued)
IAS 1.106(d)(ii), 106A D. OCI accumulated in reserves, net of taxa
Cost of hedging
In thousands of euro reserve
2020
IAS 16.77(f) Revaluation of property, plant and equipment -
Remeasurements of defined benefit liability/asset -
IFRS 7.20(a)(vii) Equity investments at FVOCI – net change in fair value -
Australian content
IAS 21.52(b) Foreign operations – foreign currency translation differences -

IAS 21.52(b) Reclassification of foreign currency differences on loss of significant influence -
IAS 21.52(b) Net investment hedge – net loss -
IFRS 7.24C(b)(ii) Cash flow hedges – effective portion of changes in fair value -
IFRS 7.24C(b)(iv) Cash flow hedges – reclassified to profit or loss -
Cost of hedging reserve – changes in fair value 22
Cost of hedging reserve – reclassified to profit or loss 5
IFRS 7.20(a)(viii) Debt investments at FVOCI – net change in fair value -
IFRS 7.20(a)(viii) Debt investments at FVOCI – reclassified to profit or loss -
Equity-accounted investees – share of OCI -
Total 27
2019
Primary statements
Remeasurements of defined benefit liability/asset -

IFRS 7.20(a)(vii) Equity investments at FVOCI – net change in fair value -
IAS 21.52(b) Foreign operations – foreign currency translation differences -
IAS 21.52(b) Net investment hedge – net loss -
IFRS 7.24C(b)(ii) Cash flow hedges – effective portion of changes in fair value -
IFRS 7.24C(b)(iv) Cash flow hedges – reclassified to profit or loss -
Cost of hedging reserve – changes in fair value 7
Cost of hedging reserve – reclassified to profit or loss 2
IFRS 7.20(a)(viii) Debt investments at FVOCI – net change in fair value -
Equity-accounted investees – share of OCI -
Total 9
NOTES
Appendices
Introduction
Translation Hedging Fair value Revaluation
reserve reserve reserve reserve Retained NCI
(see (B)(i)) (see (B)(ii)) (see (B)(iv)) (see (B)(v)) earnings Total (see Note 34) Total OCI
- - - 134 - 134 - 134

- - - - 48 48 - 48
- - 94 - - 94 - 94
Australian content
653 - - - - 653 26 679
(20) - - - - (20) - (20)
(3) - - - - (3) - (3)
- (41) - - - (41) - (41)
- (21) - - - (21) - (21)
- - - - - 22 - 22
- - - - - 5 - 5
- - 36 - - 36 - 36
- - (43) - - (43) - (43)
(172) - - - 15 (157) - (157)
458 (62) 87 134 63 707 26 733
Primary statements
- - - - (10) (10) - (10)
- - 41 - - 41 - 41
449 - - - - 449 22 471
(8) - - - - (8) - (8)
- 64 - - - 64 - 64
- (8) - - - (8) - (8)
- - - - - 7 - 7
- - - - - 2 - 2
- - 41 - - 41 - 41
(166) - - - (3) (169) - (169)
275 56 82 - (13) 409 22 431
NOTES
Appendices
IAS 1.106A a. The Group has elected to present the disaggregation of changes in each component of equity arising from
transactions recognised in OCI in the notes. Alternatively, an entity may present the disaggregation in the statement
of changes in equity.

Introduction
27. Capital management

IAS 1.134–135(a) The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and
market confidence and to sustain future development of the business. Management monitors the
return on capital, as well as the level of dividends to ordinary shareholders.
IAS 1.135(a) The board of directors seeks to maintain a balance between the higher returns that might be
possible with higher levels of borrowing and the advantages and security afforded by a sound
capital position. The Group’s target is to achieve a return on capital above 23%; in 2020 the return
was 29.9% (2019: 24.3%). The weighted-average interest expense on interest-bearing borrowings
(excluding liabilities with imputed interest) was 5.8% (2019: 5.5%).
Australian content
Management is considering extending the Group’s share option programme beyond key
management and other senior employees. Currently, other employees are awarded SARs
and participate in an employee share purchase programme (see Note 12(A)). The Group is in
discussions with employee representatives, but no decisions have been made.
IAS 1.135(a) The Group monitors capital using a ratio of ‘net debt’ to ‘adjusted equity’. Net debt is calculated
as total liabilities (as shown in the statement of financial position) less cash and cash equivalents.
Adjusted equity comprises all components of equity other than amounts accumulated in the
hedging and cost of hedging reserves.a
The Group’s policy is to keep the ratio below 2.00. The Group’s net debt to adjusted equity ratio at
31 December 2020 was as follows.
2020 2019
Primary statements
Total liabilities 67,638 54,647

Less: cash and cash equivalents (1,504) (1,849)
Net debt 66,134 52,798
Total equity 45,222 35,366
Less: hedging reserve (433) (491)
Less: cost of hedging reserve (4) 27
Adjusted equity 44,785 34,902
Net debt to adjusted equity ratio 1.48 1.51
* See Note 44.
IAS 1.135(a) From time to time, the Group purchases its own shares on the market; the timing of these
purchases depends on market prices. The shares are primarily intended to be used for issuing
shares under the Group’s share option programme. Buy and sell decisions are made on a specific
NOTES
transaction basis by the risk management committee; the Group does not have a defined share
buy-back plan.
Appendices
a. The Group has provided the definitions of ‘net debt’ and ‘adjusted equity’ because they are relevant to
understanding how it manages capital and are not defined in IFRS Standards. It has also provided the reconciliations
between these measures and items presented in the consolidated financial statements.
Introduction
IFRS 7.8(g) 28. Loans and borrowings
See accounting policies in Notes 45(B)(i)–(ii), (O)(i), (O)(iii), (R)(ii), (S) and (T).
IAS 1.77 Non-current liabilities

Secured bank loans 7,554 8,093
Unsecured bond issues 6,136 9,200
Convertible notes 4,678 -
Redeemable preference shares 1,939 -
Lease liabilities 3,451 3,584
Australian content
23,758 20,877
Current liabilities
Current portion of secured bank loans 1,055 3,985
Unsecured bank loans 503 117
Unsecured bond issues 3,064 -
Dividends on redeemable preference shares 51 -
Current portion of lease liabilities 674 945
Loan from associate 41(C) - 1,000
5,347 6,047
Information about the Group’s exposure to interest rate, foreign currency and liquidity risks is
included in Note 32(C).
Primary statements
NOTES
Appendices

Introduction
28. Loans and borrowings (continued)

IFRS 7.7 A. Terms and repayment schedule
The terms and conditions of outstanding loans are as follows.
Nominal Year of Face Carrying Face Carrying
In thousands of euro Currency interest rate maturity value amount value amount
IFRS 7.42D(e) Secured bank loan

(see Note 18(A)) EUR 3.60–3.90% 2020–21 600 598 1,000 985
Secured bank loan CHF 3.90% 2024 1,240 1,240 1,257 1,257
Australian content
Secured bank loan USD 4.70% 2022–23 1,447 1,447 1,521 1,521
Secured bank loan EUR 4.50% 2022–23 3,460 3,460 3,460 3,460
Secured bank loan GBP LIBOR+1% 2020–22 1,864 1,864 4,855 4,855
Unsecured bank loan EUR 3.80% 2021 510 503 - -
Unsecured bank loan EUR 5.50% 2020 - - 117 117
Unsecured bond issues EUR LIBOR+0.5% 2024 1,023 1,023 1,023 1,023
Unsecured bond issues EUR LIBOR+1% 2025 5,113 5,113 5,113 5,113
Unsecured bond issues EUR LIBOR 2021 3,064 3,064 3,064 3,064
Loan from associate EUR 4.80% 2020 - - 1,000 1,000
Convertible notes EUR 3.00% 2023 5,000 4,678 - -
Redeemable
preference shares EUR 4.40% 2026 2,051 1,990 - -
Lease liabilities EUR 6.0–7.0% 2020–34 5,697 4,125 5,936 4,529
Primary statements
Total interest-bearing liabilities 31,069 29,105 28,346 26,924

IFRS 7.7, 14, The secured bank loans are secured over land and buildings, inventories and trade receivables with
IAS 16.74(a)
a carrying amount of €5,000 thousand (2019: €4,700 thousand) (see Note 21(D)), €1,650 thousand
(2019: €2,090 thousand) (see Note 17) and €600 thousand (2019: €1,000 thousand) (see
Note 18(A)) respectively.
NOTES
Appendices
Introduction
B. Breach of loan covenant
IFRS 7.18–19 The Group has a secured bank loan with a carrying amount of €3,460 thousand at 31 December
2020 (2019: €3,460 thousand). This loan is repayable in tranches within five years. However, the
loan contained a covenant stating that at the end of each quarter the Group’s debt (defined in
the covenant as the Group’s loans and borrowings and trade and other payables) cannot exceed
2.5 times the Group’s quarterly revenue from continuing operations, otherwise the loan will be
repayable on demand.
The Group exceeded its maximum leverage threshold in the third quarter of 2020 and the
threshold was still exceeded as at 31 December 2020. However, management obtained a waiver
Australian content
from the bank in October 2020, which extended until March 2022. Accordingly, the loan was not
payable on demand at 31 December 2020 (see Note 37).a
C. Convertible notes
Proceeds from issue of convertible notes (1,250,000 notes at €4 par value) 5,000
Transaction costs (250)
Net proceeds 4,750
Amount classified as equity (net of transaction costs of €9 thousand) 14(C) (163)
Accreted interest 91
Carrying amount of liability at 31 December 2020 4,678
These notes were issued on 29 May 2020. They are convertible into 250,000 ordinary shares in
Primary statements
May 2023 at the option of the holder. Any unconverted notes become payable on demand.
D. Redeemable preference shares
In thousands of euro
Proceeds from issue of redeemable preference shares 2,000

Transaction costs (61)
Accrued dividend 51
Carrying amount at 31 December 2020 1,990
During 2020, 1,000,000 redeemable preference shares were issued as fully paid with a par value
of €2 per share (2019: nil). The redeemable preference shares are mandatorily redeemable at par
on 31 May 2026 and the Group is obliged to pay holders of these shares annual dividends of 4.4%
of the par amount on 31 May each year until and including on maturity. Redeemable preference
shares do not carry the right to vote.
NOTES
Appendices
Insights 3.1.40.130 a. In some circumstances, an entity may – before the reporting date – obtain from a lender an agreement to amend
a lending arrangement. Such amendments may defer the date as at which information is assessed for testing
covenant compliance from a date at or before the reporting date to a later date. We believe that in these situations
whether the entity would have breached the related covenant had the agreement not been amended does not affect
the classification of the liability at the reporting date.

Introduction

IAS 7.44A–E E. Reconciliation of movements of liabilities to cash flows arising from
financing activitiesa
Liabilities
Bank
overdrafts
used for cash Other loans
Australian content
management and Convertible

In thousands of euro Note purposes borrowings notes
Balance at 1 January 2020 282 22,395 -

IAS 7.44B(a) Changes from financing cash flows
Proceeds from issue of share capital 26(A) - - -
Proceeds from issue of convertible notes 28(C) - - 4,837
Proceeds from issue of redeemable preference
shares 28(D) - - -
Proceeds from loans and borrowings - 591 -
Proceeds from sale of treasury shares - - -
Proceeds from exercise of share options 26(A) - - -
Proceeds from settlement of derivatives - - -
Primary statements
Transaction costs related to loans and borrowings 28(C)–(D) - - (250)

Acquisition of NCI 36 - - -
Repayment of borrowings - (5,055) -
Payment of lease liabilities - - -
Dividend paid 26(C) - - -
Total changes from financing cash flows - (4,464) 4,587
IAS 7.44B(b) Changes arising from obtaining or losing
control of subsidiaries or other businesses - 500 -
IAS 7.44B(c) The effect of changes in foreign exchange rates - (122) -
IAS 7.44B(d) Changes in fair value - - -
IAS 7.44B(e) Other changes
Liability-related
Change in bank overdraft 19 52 - -
New leases - - -
NOTES
38(A)
Capitalised borrowing costs 21(E), 22(D) - 231 -
Interest expense 10 - 1,061 91
Interest paid - (1,289) -
Total liability-related other changes 52 3 91
Total equity-related other changes - - -
Balance at 31 December 2020 334 18,312 4,678
Appendices
Introduction
Derivatives (assets)/liabilities
held to hedge long-term
Liabilities borrowings Equity
Interest rate Interest rate
swap and swap and
forward forward
exchange exchange
Redeemable contracts used contracts used
Australian content
preference Lease for hedging – for hedging – Share capital/ Retained
shares liabilities assets liabilities premium Reserves earnings NCI Total
- 4,529 (205) 8 18,050 439 13,786 3,091 62,375
- - - - 1,550 - - - 1,550
- - - - - 163 - - 5,000
2,000 - - - - - - - 2,000
- - - - - - - - 591
- - - - 19 11 - - 30
- - - - 50 - - - 50
- - 4 1 - - - - 5
Primary statements
(61) - - - - - - - (311)
- - - - - 8 (93) (115) (200)
- - - - - - - - (5,055)
- (554) - - - - - - (554)
- - - - - - (1,243) - (1,243)
1,939 (554) 4 1 1,619 182 (1,336) (115) 1,863
- - - - 87 - 120 - 707
- - - - - - - - (122)
- - 24 16 - - - - 40
- - - - - - - - 52
- 150 - - - - - - 150 NOTES
- - - - - - - - 231
51 320 - - - - - - 1,523
- (320) - - - - - - (1,609)
51 150 - - - - - - 347
- - - - - 598 7,873 828 9,299
1,990 4,125 (177) 25 19,756 1,219 20,443 3,804 74,509
IAS 7.44D–E, 60 a. This example illustrates one possible format to meet the disclosure requirement in paragraphs 44A–E of IAS 7 by
Appendices
providing a reconciliation between the opening and closing balances for liabilities arising from financing activities.
Other presentation formats are possible. Although the amendments only require disclosure of a reconciliation
of changes in liabilities arising from financing activities, the Group has elected to expand the disclosure to cover
changes in bank overdrafts used for cash management purposes and changes in equity balances arising from
financing activities as well. If an entity provides the disclosures required by paragraph 44A of IAS 7 in combination
with disclosures of changes in other assets and liabilities, then it discloses the changes in liabilities arising from
financing activities separately from changes in those other assets and liabilities.

Introduction

IAS 7.44A–E E. econciliation of movements of liabilities to cash flows arising from financing
R
activities (continued)
Liabilities
Bank
overdrafts
used for cash Other loans
Australian content
management and Convertible

In thousands of euro Note purposes borrowings notes
Restated balance at 1 January 2019 303 20,409 -

IAS 7.44B(a) Changes from financing cash flows
Proceeds from loans and borrowings - 4,439 -
Proceeds from sale of treasury shares - - -
Proceeds from settlement of derivatives - - -
Repayment of borrowings - (2,445) -
Payment of lease liabilities - - -
Dividend paid 26(C) - - -
Total changes from financing cash flows - 1,994 -
IAS 7.44B(c) The effect of changes in foreign exchange
Primary statements
rates - (30) -
IAS 7.44B(d) Changes in fair value - - -
IAS 7.44B(e) Other changes
Liability-related
Change in bank overdraft 19 (21) - -
New leases 21(C) - - -
Capitalised borrowing costs 22(D) - 12 -
Interest expense 10 - 1,061 -
Interest paid - (1,051) -
Total liability-related other changes (21) 22 -
Total equity-related other changes - - -
Balance at 31 December 2019 282 22,395 -
NOTES
Appendices
Introduction
Derivatives (assets)/liabilities
held to hedge long-term
Liabilities borrowings Equity
Interest rate Interest rate
swap and swap and
forward forward
exchange exchange
Redeemable contracts used contracts used
Australian content
preference Lease for hedging – for hedging – Share capital/ Retained
shares liabilities assets liabilities premium Reserves earnings NCI Total
- 4,939 (204) 1 18,050 297 8,497 2,718 55,010
- - - - - - - - 4,439
- - - - - (280) - - (280)
- - 8 3 - - - - 11
- - - - - - - - (2,445)
- (590) - - - - - - (590)
- - - - - - (571) - (571)
- (590) 8 3 - (280) (571) - 564
Primary statements
- - - - - - - - (30)
- - (9) 4 - - - - (5)
- - - - - - - - (21)
- 180 - - - - - - 180
- - - - - - - - 12
- 238 - - - - - - 1,299
- (238) - - - - - - (1,289)
- 180 - - - - - - 181
- - - - - 422 5,860 373 6,655
- 4,529 (205) 8 18,050 439 13,786 3,092 62,375
NOTES
Appendices

Introduction
29. Trade and other payables

See accounting policies in Notes 45(O)(iii) and (iv).
Note 2020 2019
IFRS 7.8(g) Trade payables due to related parties 41 174 351

Trade payables – supplier factoring facility 5,515 4,900
Other trade payables 17,016 14,700
Accrued expenses 312 487
Trade payables 23,017 20,438
Australian content
Forward exchange contracts used for hedging 32(C)–(D) 8 7

Interest rate swaps used for hedging 32(C)–(D) 20 5
Contingent consideration 34(A)(iii) 270 -
Refund liabilities 8(D) 988 883
Other payables 1,286 895
24,303 21,333
Non-current 290 5
Current 24,013 21,328
24,303 21,333
* See Note 44.
Information about the Group’s exposure to currency and liquidity risks is included in Note 32(C).
Primary statements
The Group participates in a supply chain finance programme (SCF) under which its suppliers may
elect to receive early payment of their invoice from a bank by factoring their receivable from the
Group. Under the arrangement, a bank agrees to pay amounts to a participating supplier in respect
of invoices owed by the Group and receives settlement from the Group at a later date. The principal
purpose of this programme is to facilitate efficient payment processing and enable the willing
suppliers to sell their receivables due from the Group to a bank before their due date.
The Group has not derecognised the original liabilities to which the arrangement applies because
neither a legal release was obtained nor the original liability was substantially modified on entering
into the arrangement. From the Group’s perspective, the arrangement does not significantly
extend payment terms beyond the normal terms agreed with other suppliers that are not
participating. The Group does not incur any additional interest towards the bank on the amounts
due to the suppliers. The Group therefore discloses the amounts factored by suppliers within
trade payables because the nature and function of the financial liability remain the same as those
of other trade payables but discloses disaggregated amounts in the notes. All payables under the
NOTES
SCF are classified as current as at 31 December 2020 and 2019.

IAS 7.43 The payments to the bank are included within operating cash flows because they continue to be
part of the normal operating cycle of the Group and their principal nature remains operating – i.e.
payments for the purchase of goods and services. The payments to a supplier by the bank are
considered non-cash transactions and amount to €3,860 thousand (2019: €3,430 thousand).
Appendices
Introduction
30. Deferred income
See accounting policies in Notes 8(D) and 45(F).
Government grantsa (A) 1,424 1,462

1,424 1,462
Non-current 1,424 1,462
Current - -
1,424 1,462
Australian content
A. Government grants
IAS 20.39(b)–(c) The Group has been awarded two government grants. One of the grants, received in 2019,
amounted to €1,462 thousand and was conditional on the acquisition of factory premises in a
specified region. The factory has been in operation since early 2020 and the grant, recognised
as deferred income, is being amortised over the useful life of the building. In accordance with
the terms of the grant, the Group is prohibited from selling the factory premises for a period of
15 years from the date of the grant.
The second grant, received in 2020, was unconditional, amounted to €200 thousand and related to
pine trees. This grant was recognised in profit or loss in full and presented in ‘other income’ when
it became receivable (see Note 9(A)). There is no outstanding balance of deferred income related
to this grant as at 31 December 2020.
Primary statements
NOTES
Appendices
IAS 20.24, a. The Group has elected to present government grants related to assets as deferred income. Alternatively, an entity
Insights may present these grants as a deduction in arriving at the carrying amount of the asset.
4.3.130.60
The deferred income is generally classified as a non-current liability when an entity presents a classified statement
of financial position.

Introduction
31. Provisions
See accounting policy in Note 45(S).
Restructur- Site Onerous
In thousands of euro Note Warranties ing restoration contracts Legal Total
Balance at
IAS 37.84(a) 1 January 2020 200 600 740 - - 1,540
Assumed in
a business
combination 34 - - 150 - 20 170
Provisions made
Australian content
IAS 37.84(b) during the year 280 400 660 160 - 1,500
Provisions used
IAS 37.84(c) during the year (200) (500) (800) - - (1,500)
IAS 37.84(d) Provisions reversed
during the yeara - (100) - - - (100)
IAS 37.84(e) Unwind of discount 10 - - 60 - - 60
IAS 37.84(a) Balance at
31 December 2020 280 400 810 160 20 1,670
Non-current 100 - 810 100 - 1,010
Current 180 400 - 60 20 660
280 400 810 160 20 1,670
Primary statements
A. Warranties
IAS 37.85(a)–(c) The provision for warranties relates mainly to paper sold during 2019 and 2020. The provision
has been estimated based on historical warranty data associated with similar products and
services. The Group expects to settle the majority of the liability over the next year. An expected
reimbursement of warranty expense incurred of €25 thousand has been included in ‘other trade
receivables’ (see Note 18) following a supplier accepting responsibility for the defective products.
B. Restructuring
IAS 1.98(b), 125, During 2020, a provision of €400 thousand was made to cover the costs associated with
37.85(a)–(b)
restructuring part of a manufacturing facility within the Non-recycled Papers segment that will be
retained when the remainder of the facility is sold (see Note 20). Estimated restructuring costs
mainly include employee termination benefits (see Note 13(E)) and are based on a detailed plan
agreed between management and employee representatives. The restructuring and the sale are
expected to be completed by June 2021.
During 2019, the Group committed to a plan to restructure a product line in the American Paper
NOTES
manufacturing and distribution division due to a decrease in demand as a result of a deterioration

in economic conditions. Following the announcement of the plan, the Group recognised a
provision of €600 thousand for expected restructuring costs, including contract termination
costs, consulting fees and employee termination benefits (see Note 13(E)). Estimated costs
were based on the terms of the relevant contracts. The restructuring was completed in 2020, and
€500 thousand of the provision was used during the year. The unused provision of €100 thousand
was reversed and has been included in ‘cost of sales’.
Appendices
Insights 3.12.850 a. In our view, in the statement of profit or loss and OCI, the reversal of a provision should be presented in the same
line item as the original estimate.
Introduction
31. Provisions (continued)
C. Site restoration
i. France
IAS 37.85(a) A provision of €740 thousand was made during 2019 and an unwind of the discount of
€60 thousand was recognised in 2020 in respect of the Group’s obligation to rectify environmental
damage in France. The required work was completed during 2020 at a cost of €800 thousand.
ii. Romania
IAS 1.125,129, Under Romanian law, the Group’s subsidiary in Romania is required to restore contaminated land
37.85(a)–(b)
to its original condition before the end of 2023. During 2020, the Group provided €660 thousand
Australian content
for this purpose.
Because of the long-term nature of the liability, the greatest uncertainty in estimating the provision
is the costs that will be incurred. In particular, the Group has assumed that the site will be restored
using technology and materials that are currently available. The Group has been provided with a
range of reasonably possible outcomes for the total cost, which range from €500 thousand to
€700 thousand, reflecting different assumptions about pricing of the individual components of the
cost. The provision has been calculated using a discount rate of 5.9%, which is the risk-free rate in
Romania. The rehabilitation is expected to occur in the next two to three years.
IAS 34.26 The provision has increased compared with the amount of €500 thousand reported in the
Company’s interim financial statements as at 30 June 2020 due to a change in estimated costs. At
the time of preparing the interim financial statements, the extent of restoration work required was
uncertain, because the inspection report by the Romanian authorities had not yet been finalised.
Primary statements
The estimates were subsequently revised based on the final report.
iii. Acquisition of Papyrus
As part of the acquisition of Papyrus, the Group recognised environmental provisions of
€150 thousand, measured on a provisional basis (see Note 34(C)).
D. Legal
IAS 37.86(a)–(b) As a result of the acquisition of Papyrus, the Group assumed a contingent liability of €20 thousand,
measured on a provisional basis (see Note 34(C)).
E. Levies
IAS 37.85(a) The Group operates in a number of countries in which it is subject to government levies.
It assesses the timing of when to accrue environmental taxes imposed by legislation at the end of
the tax year (31 March) on entities that manufacture pulp products. The Group recognised a liability
to pay environmental taxes on 31 March, when the obligating event as stated in the legislation
occurred. It paid that liability in full at a later date. NOTES
Therefore, at 31 December 2020 no liability for environmental taxes has been recognised. An expense
of €102 thousand has been recognised in profit or loss for the year ended 31 December 2020.
Appendices

Introduction
FINANCIAL INSTRUMENTS
32. Financial instruments – Fair values and risk management
A. Accounting classifications and fair valuesa, b
IFRS 7.8, 25–26, 29, The following table shows the carrying amounts and fair values of financial assets and financial
13.93(a)–(b), 94, 97, 99
liabilities, including their levels in the fair value hierarchy. It does not include fair value information
for financial assets and financial liabilities not measured at fair value if the carrying amount is a
reasonable approximation of fair value.
Trade and other receivables and trade and other payables classified as held-for-sale are not included
in the table below (see Note 20). Their carrying amount is a reasonable approximation of fair value.
Carrying amount
Australian content
Fair value –
31 December 2020 hedging Mandatorily at FVOCI – debt
In thousands of euro Note instruments FVTPL – others instruments
Financial assets measured at fair value

Interest rate swaps used for hedging 25 116 - -
Forward exchange contracts used for hedging 25 297 - -
Other forward exchange contracts 25 - 122 -
Sovereign debt securities 25 - 243 -
Corporate debt securities 25 - - 118
Equity securities 25 - 251 -
413 616 118
Financial assets not measured at fair value
Primary statements
Trade and other receivables 18 - - -

Cash and cash equivalents 19 - - -
Corporate debt securities 25 - - -
- - -
Financial liabilities measured at fair value
Interest rate swaps used for hedging 29 (20) - -
Forward exchange contracts used for hedging 29 (8) - -
Contingent consideration 29 - (270) -
(28) (270) -
Financial liabilities not measured at fair value
Bank overdrafts 19 - - -
Secured bank loans 28 - - -
Unsecured bank loans 28 - - -
Unsecured bond issues 28 - - -
NOTES
Convertible notes – liability component 28 - - -

Redeemable preference shares 28 - - -
Dividends payable on redeemable shares 28 - - -
Trade and other payables* 29 - - -
- - -
* Other payables that are not financial liabilities (refund liabilities recognised under IFRS 15 – €988 thousand) are
not included.
Appendices
Financial instruments
Introduction
Carrying amount Fair value
Australian content
Financial assets
FVOCI – equity at amortised Other financial
instruments cost liabilities Total Level 1 Level 2 Level 3 Total
- - - 116 - 116 - 116

- - - 297 - 297 - 297
- - - 122 - 122 - 122
- - - 243 43 200 - 243
- - - 118 48 70 - 118
710 - - 961 961 - - 961
710 - - 1,857
Primary statements
- 32,518 - 32,518
- 1,504 - 1,504
- 2,421 - 2,421 2,461 - - 2,461
- 36,443 - 36,443
- - - (20) - (20) - (20)

- - - (8) - (8) - (8)
- - - (270) - - (270) (270)
- - - (298)
- - (334) (334)
- - (8,609) (8,609) - (8,979) - (8,979)
- - (503) (503) - (505) - (505)
- - (9,200) (9,200) - (9,675) - (9,675) NOTES
- - (4,678) (4,678) - (4,671) - (4,671)
- - (1,939) (1,939) - (1,936) - (1,936)
- - (51) (51) - (51) - (51)
- - (23,017) (23,017)
- - (48,331) (48,331)
IFRS 7.8, 29 a. In this table, the Group has disclosed the fair value of each class of financial assets and financial liabilities in a way
that permits the information to be compared with the carrying amounts. In addition, it has reconciled the assets
and liabilities to the different categories of financial instruments as defined in IFRS 9. This presentation method is
optional and different presentation methods may be appropriate, depending on circumstances.
Appendices
The Group has not disclosed the fair values of financial instruments such as short-term trade receivables and
payables, because their carrying amounts are a reasonable approximation of fair value.
IFRS 7.6, B1–B3 b. An entity groups financial instruments into classes that are appropriate to the nature of the information disclosed
and that take into account the characteristics of those financial instruments. Although IFRS 7 does not define
‘classes’, as a minimum instruments measured at amortised cost should be distinguished from instruments
measured at fair value.

Introduction

(continued)
A. Accounting classifications and fair values (continued)
Carrying amount
Fair value –
31 December 2019 hedging Mandatorily at FVOCI – debt
In thousands of euro Note instruments FVTPL – others instruments
Financial assets measured at fair value

Interest rate swaps used for hedging 25 131 - -
Forward exchange contracts used for hedging 25 352 - -
Australian content
Other forward exchange contracts 25 - 89 -

Sovereign debt securities 25 - 591 -
Corporate debt securities 25 - - 373
Equity securities 25 - 254 -
483 934 373
Financial assets not measured at fair value
Trade and other receivables 18 - - -
Cash and cash equivalents 19 - - -
Corporate debt securities 25 - - -
- - -
Financial liabilities measured at fair value
Interest rate swaps used for hedging 29 (5) - -
Primary statements
Forward exchange contracts used for hedging 29 (7) - -

Contingent consideration 29 - - -
(12) - -
Financial liabilities not measured at fair value
Bank overdrafts 19 - - -
Secured bank loans 28 - - -
Unsecured bank loans 28 - - -
Unsecured bond issues 28 - - -
Loan from associate - - -
Trade and other payables* 29 - - -
- - -
* Other payables that are not financial liabilities (refund liabilities recognised under IFRS 15 – €883 thousand) are
not included.
NOTES
Appendices
Introduction
Carrying amount Fair value
Financial assets
FVOCI – equity at amortised Other financial
instruments cost liabilities Total Level 1 Level 2 Level 3 Total
- - - 131 - 131 - 131

- - - 352 - 352 - 352
Australian content
- - - 89 - 89 - 89
- - - 591 81 510 - 591
- - - 373 151 222 - 373
511 - - 765 540 - 225 765
511 - - 2,301
- 22,325 - 22,325
- 1,849 - 1,849
- 2,243 - 2,243 2,249 - - 2,249
- 26,417 - 26,417
- - - (5) - (5) - (5)
Primary statements
- - - (7) - (7) - (7)
- - - - - - - -
- - - (12)
- - (282) (282)
- - (12,078) (12,078) - (12,078) - (12,078)
- - (117) (117) - (117) - (117)
- - (9,200) (9,200) - (9,301) - (9,301)
- - (1,000) (1,000) - (997) - (997)
- - (20,438) (20,438)
- - (43,115) (43,115)
NOTES
Appendices

Introduction

(continued)
i. Valuation techniques and significant unobservable inputs
The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair
values for financial instruments in the statement of financial position, as well as the significant
unobservable inputs used. Related valuation processes are described in Note 4(B).
IFRS 13.91(a), 93(d), Financial instruments measured at fair value
93(h)(i), 99
Australian content
Inter-relationship between
significant unobservable
Significant unobservable inputs and fair value
Type Valuation technique inputs measurement
IFRS 3.B67(b)(iii) Contingent Discounted cash flows: The – Expected cash flows The estimated fair value
consideration valuation model considers the (31 December 2020: would increase (decrease) if:
present value of the expected €318 – €388 thousand). – the expected cash flows
future payments, discounted – Risk-adjusted discount were higher (lower); or
using a risk-adjusted discount rate (31 December 2020: – the risk-adjusted discount
rate. 15%). rate were lower (higher).
Equity Market comparison – Adjusted market multiple The estimated fair value
securities technique: The valuation (2019: 4–7). would increase (decrease) if
model is based on market the adjusted market multiple
Primary statements
multiples derived from were higher (lower).

quoted prices of companies
comparable to the investee,
adjusted for the effect of
the non-marketability of the
equity securities, and the
revenue and EBITDA of the
investee. The estimate is
adjusted for the net debt of
the investee.
Corporate debt Market comparison/ Not applicable. Not applicable.

securities discounted cash flow: The fair
value is estimated considering
(i) current or recent quoted
prices for identical securities
in markets that are not active
and (ii) a net present value
calculated using discount
NOTES
rates derived from quoted

yields of securities with
similar maturity and credit
rating that are traded in active
markets, adjusted by an
illiquidity factor.
Appendices
Introduction
(continued)
i. Valuation techniques and significant unobservable inputs (continued)
IFRS 13.91(a), 93(d), Financial instruments measured at fair value (continued)
93(h)(i), 99
Inter-relationship between
significant unobservable
Significant unobservable inputs and fair value
Type Valuation technique inputs measurement
Australian content
Forward Forward pricing: The fair value Not applicable. Not applicable.
exchange is determined using quoted
contracts forward exchange rates at the
reporting date and present
value calculations based on
high credit quality yield curves
in the respective currencies.
Interest rate Swap models: The fair value Not applicable. Not applicable.
swaps is calculated as the present
value of the estimated future
cash flows. Estimates of
future floating-rate cash flows
are based on quoted swap
rates, futures prices and
interbank borrowing rates.
Estimated cash flows are
Primary statements
discounted using a yield curve
constructed from similar
sources and which reflects
the relevant benchmark
interbank rate used by market
participants for this purpose
when pricing interest rate
swaps. The fair value estimate
is subject to a credit risk
adjustment that reflects
the credit risk of the Group
and of the counterparty;
this is calculated based on
credit spreads derived from
current credit default swap or
bond prices.
IFRS 13.93(d), 97 Financial instruments not measured at fair value NOTES

Type Valuation technique
Other financial Discounted cash flows: The

liabilities* valuation model considers
the present value of expected
payments, discounted using a
risk-adjusted discount rate.
* Other financial liabilities include secured and unsecured bank loans, unsecured bond issues, convertible
notes – liability component, redeemable preference shares and loans from associates.
Appendices

Introduction

(continued)
ii. Transfers between Levels 1 and 2
IFRS 13.93(c), 95 At 31 December 2020, FVOCI corporate debt securities with a carrying amount of €40 thousand
were transferred from Level 1 to Level 2 because quoted prices in the market for such debt
securities were no longer regularly available. To determine the fair value of such debt securities,
management used a valuation technique in which all significant inputs were based on observable
market data (see Note 32(B)(i)). There were no transfers from Level 2 to Level 1 in 2020 and no
transfers in either direction in 2019.
Australian content
iii. Level 3 recurring fair values

Reconciliation of Level 3 fair values
The following table shows a reconciliation from the opening balances to the closing balances for
Level 3 fair values.
Equity Contingent
In thousands of euro Note securities consideration
Balance at 1 January 2019 - -

IFRS 13.91(b), 93(e)(ii) Gain included in OCI
– Net change in fair value (unrealised) 13 -
IFRS 13.93(e)(iii) Purchases 212 -
Balance at 31 December 2019 225 -
Primary statements
Balance at 1 January 2020 225 -

IFRS 13.93(e)(iii) Assumed in a business combination 34(A) - (250)
IFRS 13.91(b), 93(e)(i),
(f) Loss included in ‘finance costs’
– Net change in fair value (unrealised) 10 - (20)
IFRS 13.91(b), 93(e)(ii) Gain included in OCI
– Net change in fair value (unrealised) 18 -
IFRS 13.93(e)(iv) Transfers out of Level 3 (243) -
Balance at 31 December 2020 - (270)
Transfer out of Level 3
IFRS 13.93(e)(iv), 95 The Group holds an investment in equity shares of MSE Limited with a fair value of €243 thousand
at 31 December 2020 (2019: €225 thousand). The fair value of this investment was categorised
as Level 3 at 31 December 2019 (for information on the valuation technique, see B(i)). This was
because the shares were not listed on an exchange and there were no recent observable arm’s
NOTES
length transactions in the shares.
During 2020, MSE Limited listed its equity shares on an exchange and they are currently actively
traded in that market. Because the equity shares now have a published price quotation in an
active market, the fair value measurement was transferred from Level 3 to Level 1 of the fair value
hierarchy at 31 December 2020.
Appendices
Introduction
(continued)
iii. Level 3 recurring fair values (continued)
IFRS 13.93(h)(ii) Sensitivity analysis
For the fair values of contingent consideration and equity securities, reasonably possible changes
at the reporting date to one of the significant unobservable inputs, holding other inputs constant,
would have the following effects.
Contingent consideration Profit or loss
Australian content
Effect in thousands of euro Increase Decrease
31 December 2020
Expected cash flows (10% movement) (23) 23
Risk-adjusted discount rate (1% movement (100 bps)) 6 (6)
Equity securities OCI, net of tax
Effect in thousands of euro Increase Decrease
31 December 2019
Adjusted market multiple (5% movement) 81 (81)
a
C. Financial risk management
The Group has exposure to the following risks arising from financial instruments:
Primary statements
– credit risk (see (C)(ii));
– liquidity risk (see (C)(iii)); and
– market risk (see (C)(iv)).
i. Risk management framework
IFRS 7.31, 33(b) The Company’s board of directors has overall responsibility for the establishment and oversight
of the Group’s risk management framework. The board of directors has established the risk
management committee, which is responsible for developing and monitoring the Group’s risk
management policies. The committee reports regularly to the board of directors on its activities.
The Group’s risk management policies are established to identify and analyse the risks faced
by the Group, to set appropriate risk limits and controls and to monitor risks and adherence to
limits. Risk management policies and systems are reviewed regularly to reflect changes in market
conditions and the Group’s activities. The Group, through its training and management standards
NOTES
and procedures, aims to maintain a disciplined and constructive control environment in which all
employees understand their roles and obligations.
The Group audit committee oversees how management monitors compliance with the Group’s
risk management policies and procedures, and reviews the adequacy of the risk management
framework in relation to the risks faced by the Group. The Group audit committee is assisted in its
oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk
management controls and procedures, the results of which are reported to the audit committee.
Appendices
IFRS 7.34 a. The financial risk disclosures presented are only illustrative and reflect the facts and circumstances of the Group.
In particular, IFRS 7 requires the disclosure of summary quantitative data about an entity’s risk exposures based on
information provided internally to an entity’s key management personnel, although certain minimum disclosures are
also required to the extent that they are not otherwise covered by the disclosures made under the ‘management
approach’ above.

Introduction

(continued)
C. Financial risk management (continued)
IFRS 7.31, 33 ii. Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Group’s
receivables from customers and investments in debt securities.
IFRS 7.35K(a), 36(a) The carrying amounts of financial assets and contract assets represent the maximum credit
exposure.
Australian content
IAS 1.82(ba) Impairment losses on financial assets and contract assets recognised in profit or loss were
as follows.
IFRS 15.113(b) Impairment loss on trade receivables and contract assets arising from
contracts with customers* 210 192
Impairment loss on lease receivable 1 1
Impairment loss on debt securities at amortised cost 62 13
Impairment loss (reversal) on debt securities at FVOCI (3) -
270 206
* Of which, €11 thousand (2019: €3 thousand) related to a discontinued operation (see Notes 6 and 7).
Primary statements
Trade receivables and contract assets

IFRS 7.33(a)–(b) The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. However, management also considers the factors that may influence the credit risk of
its customer base, including the default risk associated with the industry and country in which
customers operate. Details of concentration of revenue are included in Notes 6(D)–(E).
The risk management committee has established a credit policy under which each new customer
is analysed individually for creditworthiness before the Group’s standard payment and delivery
terms and conditions are offered. The Group’s review includes external ratings, if they are available,
financial statements, credit agency information, industry information and in some cases bank
references. Sale limits are established for each customer and reviewed quarterly. Any sales
exceeding those limits require approval from the risk management committee.
The Group limits its exposure to credit risk from trade receivables by establishing a maximum
payment period of one and three months for individual and corporate customers respectively.
More than 85% of the Group’s customers have been transacting with the Group for over
NOTES
four years, and none of these customers’ balances have been written off or are credit-impaired at
the reporting date. In monitoring customer credit risk, customers are grouped according to their
credit characteristics, including whether they are an individual or a legal entity, whether they are a
wholesale, retail or end-user customer, their geographic location, industry, trading history with the
Group and existence of previous financial difficulties.
IFRS 7.33(c) The Group is monitoring the economic environment in [Region Z] and is taking actions to limit its
exposure to customers in countries experiencing particular economic volatility. In 2020, certain
purchase limits have been reduced, particularly for customers operating in [Countries A, B, C, D
and E], because the Group’s experience is that the recent economic volatility has had a greater
impact for customers in those countries than for customers in other countries.
IFRS 7.35K(b), B8G The Group does not require collateral in respect of trade and other receivables. The Group does not
have trade receivable and contract assets for which no loss allowance is recognised because of
Appendices
collateral.
The quantitative information below on trade receivables and contract assets includes amounts
classified as held-for-sale (see Note 20).
Introduction
(continued)
ii. Credit risk (continued)
Trade receivables and contract assets (continued)
IFRS 7.34(a), (c) At 31 December 2020, the exposure to credit risk for trade receivables and contract assets by
geographic region was as follows.a
Carrying amount
Australian content
[Countries A, B, C, D and E] 1,598 1,583
Other [Region Z] countries 24,027 13,649
US 11,374 7,687
Other regions 286 188
37,285 23,107
IFRS 7.34(a), (c) At 31 December 2020, the exposure to credit risk for trade receivables and contract assets by type
of counterparty was as follows.a
Carrying amount
Wholesale customers 27,588 15,051

Retail customers 9,246 7,145
Primary statements
End-user customers 342 820
Other 109 91
37,285 23,107
IFRS 7.34(a), (c) At 31 December 2020, the carrying amount of the receivable from the Group’s most significant
customer (a European wholesaler) was €8,034 thousand (2019: €4,986 thousand).
IFRS 7.34(a), 35M, B8I A summary of the Group’s exposure to credit risk for trade receivables and contract assets is as
follows.
2020 2019
Not credit- Credit- Not credit- Credit-

In thousands of euro impaired impaired impaired impaired
External credit ratings at least Baa3 from [Rating

Agency X] or BBB- from [Rating Agency Y] 6,397 - 5,139 -
Other customers: NOTES
– Four or more years’ trading history with the
Group* 21,298 - 14,230 -
– Less than four years’ trading history with the
Group* 8,735 - 3,290 -
– Higher risk 952 223 446 216
Total gross carrying amount 37,382 223 23,105 216
Loss allowance (246) (74) (138) (76)
37,136 149 22,967 140
* Excluding ‘higher risk’.
Appendices
IFRS 7.IG18 a. Identifying concentrations of risk requires judgement in light of specific circumstances, and may arise from industry
sectors, credit ratings, geographic distribution or a limited number of individual counterparties.

Introduction

(continued)
Expected credit loss assessment for corporate customers
IFRS 7.35B(a), 35F(c), The Group allocates each exposure to a credit risk grade based on data that is determined to
35G(a)–(b)
be predictive of the risk of loss (including but not limited to external ratings, audited financial
statements, management accounts and cash flow projections and available press information
Australian content
about customers) and applying experienced credit judgement. Credit risk grades are defined
using qualitative and quantitative factors that are indicative of the risk of default and are aligned to
external credit rating definitions from agencies [Rating Agencies X and Y].
Exposures within each credit risk grade are segmented by geographic region and industry
classification and an ECL rate is calculated for each segment based on delinquency status and
actual credit loss experience over the past seven years. These rates are multiplied by scalar factors
to reflect differences between economic conditions during the period over which the historical
data has been collected, current conditions and the Group’s view of economic conditions over the
expected lives of the receivables.
Scalar factors are based on GDP forecast and industry outlook and include the following: 1.3 (2019:
1.2) for [Country X], 0.9 (2019: 0.8) for [Country Y], 1.1 (2019: 1.2) for [Country Z] and 1.8 (2019: 1.9)
for [Industry A].
Primary statements
IFRS 7.35M, B8I The following table provides information about the exposure to credit risk and ECLs for trade
receivables and contract assets for corporate customers as at 31 December 2020.
Weighted- Gross Impairment
31 December 2020 Equivalent to external average carrying loss Credit-
In thousands of euro credit rating [Agency Y] loss rate amount allowance impaired
Grades 1–6: Low risk BBB- to AAA 0.30% 9,163 (27) No

Grades 7–9: Fair risk BB- to BB+ 0.60% 16,094 (97) No
Grade 10: Substandard B- to CCC- 2.60% 1,633 (42) No
Grade 11: Doubtful C to CC 23.20% 118 (27) Yes
Grade 12: Loss D 44.90% 67 (30) Yes
27,075 (223)
Expected credit loss assessment for individual customers
IFRS 7.35B(a), 35F(c), The Group uses an allowance matrix to measure the ECLs of trade receivables from individual
NOTES
35G(a)–(b)
customers, which comprise a very large number of small balances.
Loss rates are calculated using a ‘roll rate’ method based on the probability of a receivable
progressing through successive stages of delinquency to write-off. Roll rates are calculated
separately for exposures in different segments based on the following common credit risk
characteristics – geographic region, age of customer relationship and type of product purchased.
Appendices
Introduction
(continued)
IFRS 7.35M, 35N, B8I The following table provides information about the exposure to credit risk and ECLs for trade
receivables and contract assets from individual customers as at 31 December 2020.
Weighted- Gross
Australian content
31 December 2020 average carrying Loss Credit-
In thousands of euro loss rate amount allowance impaired
Current (not past due) 0.40% 8,511 (34) No

1–30 days past due 1.10% 1,638 (18) No
31–60 days past due 5.60% 232 (13) No
61–90 days past due 13.20% 111 (15) No
More than 90 days past due 43.60% 38 (17) Yes
10,530 (97)
Loss rates are based on actual credit loss experience over the past seven years. These rates are
multiplied by scalar factors to reflect differences between economic conditions during the period
over which the historical data has been collected, current conditions and the Group’s view of
economic conditions over the expected lives of the receivables.
Primary statements
Scalar factors are based on actual and forecast unemployment rates and are as follows: 1.3 (2019:
1.2) for [Country X], 0.95 (2019: 1.0) for [Country Y] and 1.2 (2019: 1.1) for [Country Z].
Expected credit loss assessment for corporate customers

IFRS 7.35M, B8I The following table provides information about the exposure to credit risk and ECLs for trade
receivables and contract assets for corporate customers as at 31 December 2019.
Equivalent to Weighted- Gross Impairment
31 December 2019 external credit average carrying loss Credit-
In thousands of euro rating [Agency Y] loss rate amount allowance impaired
Grades 1–6: Low risk BBB- to AAA 0.20% 4,786 (10) No

Grades 7–9: Fair risk BB- to BB+ 0.60% 8,141 (49) No
Grade 10: Substandard B- to CCC- 2.60% 865 (22) No
Grade 11: Doubtful C to CC 24.20% 100 (24) Yes
Grade 12: Loss D 44.80% 101 (45) Yes NOTES
13,993 (150)
IFRS 7.35M, 35N, B8I The following table provides information about the exposure to credit risk and ECLs for trade
receivables and contract assets from individual customers as at 31 December 2019.
Weighted- Gross
31 December 2019 average carrying Loss Credit-
In thousands of euro loss rate amount allowance impaired
Current (not past due) 0.30% 7,088 (21) No

1–30 days past due 1.10% 2,012 (22) No
31–60 days past due 5.60% 193 (11) No
61–90 days past due 14.60% 20 (3) No
Appendices
More than 90 days past due 43.50% 15 (7) Yes

9,328 (64)

Introduction

(continued)
Movements in the allowance for impairment in respect of trade receivables and contract assets
IFRS 7.35H The movement in the allowance for impairment in respect of trade receivables and contract assets
during the year was as follows.
Australian content
Balance at 1 January 214 26

Amounts written off (80) (5)
Amounts derecognised due to discontinued operation (25) -
Net remeasurement of loss allowance 211 193
Balance at 31 December 320 214
IFRS 7.35L Trade receivables with a contractual amount of €70 thousand written off during 2020 are still
subject to enforcement activity.
IFRS 7.35I, B8D The following significant changes in the gross carrying amounts of trade receivables contributed to
the changes in the impairment loss allowance during 2020:
– the growth of the business in [Countries A, B, X and Y] resulted in increases in trade receivables
Primary statements
of €4,984 thousand (2019: €2,356 thousand) and €4,556 thousand (2019: €2,587 thousand)
respectively and increases in impairment allowances of €30 thousand (2019: €14 thousand) and
€44 thousand (2019: €23 thousand) respectively;
– increases in credit-impaired balances in [Countries D and Z] of €143 thousand (2019:
€98 thousand) resulted in increases in impairment allowances of €47 thousand (2019:
€44 thousand); and
– a decrease in trade receivables of €3,970 thousand attributed to the Packaging segment, which
was sold in February 2020 (see Note 7), resulted in a decrease in the loss allowance in 2020 of
€25 thousand.
NOTES
Appendices
Introduction
(continued)
Debt securities
IFRS 7.33(a)–(b), The Group limits its exposure to credit risk by investing only in liquid debt securities and only with
35B(a), 35F(a), counterparties that have a credit rating of at least A2 from [Rating Agency X] and A from [Rating
35G(a)–(b)
Agency Y].
The Group monitors changes in credit risk by tracking published external credit ratings.
Australian content
To determine whether published ratings remain up to date and to assess whether there has been
a significant increase in credit risk at the reporting date that has not been reflected in published
ratings, the Group supplements this by reviewing changes in bond yields and, where available,
credit default swap (CDS) prices together with available press and regulatory information
about debtors.
12-month and lifetime probabilities of default are based on historical data supplied by
[Rating Agency X] for each credit rating and are recalibrated based on current bond yields and
CDS prices. Loss given default (LGD) parameters generally reflect an assumed recovery rate of
40% except when a security is credit-impaired, in which case the estimate of loss is based on the
instrument’s current market price and original effective interest rate.
IFRS 7.34(a), (c) The exposure to credit risk for debt securities at amortised cost, FVOCI and FVTPL at the reporting
date by geographic region was as follows.
Primary statements
Net carrying amount
[Country X] 1,615 2,338

[Countries A, B, C, D and E] 68 115
Other [Region Z] countries 366 273
UK 435 430
US 298 51
2,782 3,207
NOTES
Appendices

Introduction

(continued)
Debt securities (continued)
IFRS 7.34(a), 35M, B8I The following table presents an analysis of the credit quality of debt securities at amortised cost,
FVOCI and FVTPL. It indicates whether assets measured at amortised cost or FVOCI were subject
to a 12-month ECL or lifetime ECL allowance and, in the latter case, whether they were credit-
impaired.
Australian content
2020 2019
Credit rating FVTPL FVOCI At amortised cost FVTPL FVOCI At amortised cost
Lifetime Lifetime
ECL – Lifetime ECL – Lifetime
12- 12- not ECL – 12- 12- not ECL –
month month credit- credit- month month credit- credit-
In thousands of euro ECL ECL impaired impaired ECL ECL impaired impaired
BBB- to AAA 243 122 1,764 - - 591 378 1,569 - -

BB- to BB+ - - - 207 - - - - 334 -
B- to B+ - - - 113 - - - - 233 -
C to CCC+ - - - 247 - - - - 73 -
D - - - - 185 - - - - 67
Primary statements
Gross carrying
amounts 122 1,764 567 185 378 1,569 640 67
Loss allowance (1) (15) (25) (55) (4) (7) (7) (19)
Amortised cost 121 1,749 542 130 374 1,562 633 48
Carrying
amount 243 118 1,749 542 130 591 373 1,562 633 48
IFRS 7.35I An impairment allowance of €55 thousand (2019: €19 thousand) in respect of debt securities at
amortised cost with a credit rating of D was recognised because of significant financial difficulties
being experienced by the debtors. The Group has no collateral in respect of these investments.
NOTES
Appendices
Introduction
(continued)
IFRS 7.35H, 42P The movement in the allowance for impairment for debt securities at amortised cost during the
year was as follows.
2020
IFRS 7.42P Lifetime ECL Lifetime
Australian content
12-month – not credit- ECL – credit-
In thousands of euro ECL impaired impaired Total
Balance at 1 January 10 3 20 33
Net remeasurement of loss allowance 5 46 27 78
Transfer to lifetime ECL – not credit-impaired (1) 1 - -
Transfer to lifetime ECL – credit-impaired - (8) 8 -
Financial assets repaid (2) (17) - (19)
New financial assets acquired 3 - - 3
Balance at 31 December 15 25 55 95
2019
IFRS 7.42P Lifetime ECL Lifetime

12-month – not credit- ECL – credit-
Primary statements
In thousands of euro ECL impaired impaired Total
Balance at 1 January 6 2 12 20
Net remeasurement of loss allowance - 10 6 16
Transfer to lifetime ECL – not credit-impaired - - - -
Transfer to lifetime ECL – credit-impaired - (1) 1 -
Financial assets repaid - (4) - (4)
New financial assets acquired 1 - - 1
Balance at 31 December 7 7 19 33
IFRS 7.35I, B8D The following contributed to the increase in the loss allowance during 2020.
– An issuer of a debt security with a gross carrying amount of €109 thousand entered
administration. The Group classified the debt security as credit-impaired and increased the loss
allowance by €25 thousand.
– A recession in [Country Y] in the fourth quarter of 2020 resulted in credit rating downgrades NOTES
and transfers to lifetime ECL measurement, with consequent increases in loss allowances of
€33 thousand.
Appendices

Introduction

(continued)
IFRS 7.16A, 35H, 42P The movement in the allowance for impairment in respect of debt securities at FVOCI during the
year was as follows.
2020 2019
12-month 12-month
Australian content
In thousands of euro ECL ECL
Balance at 1 January 4 4
Net remeasurement of loss allowance (1) (1)
Financial assets derecognised (3) -
New financial assets acquired 1 1
Balance at 31 December 1 4
Cash and cash equivalents
IFRS 7.33(a)–(b), The Group held cash and cash equivalents of €1,504 thousand at 31 December 2020 (2019:
34(a), 35B(a), 35F(a),
35G(a)–(b), 35M
€1,850 thousand). The cash and cash equivalents are held with bank and financial institution
counterparties, which are rated AA- to AA+, based on [Rating Agency Y] ratings.
Impairment on cash and cash equivalents has been measured on a 12-month expected loss basis
Primary statements
and reflects the short maturities of the exposures. The Group considers that its cash and cash
equivalents have low credit risk based on the external credit ratings of the counterparties.
The Group uses a similar approach for assessment of ECLs for cash and cash equivalents to those
used for debt securities.
IFRS 7.35H, 42P The amount of impairment allowance at 31 December 2020 is €1 thousand (2019: €1 thousand).
Derivatives
IFRS 7.33(a)–(b), 34(a) The derivatives are entered into with bank and financial institution counterparties, which are rated
AA- to AA+, based on [Rating Agency Y] ratings.
Guarantees
The Group’s policy is to provide financial guarantees only for subsidiaries’ liabilities.
At 31 December 2020 (31 December 2019), the Company has issued a guarantee to certain
banks in respect of credit facilities granted to two subsidiaries (see Note 33(B)).
NOTES
Appendices
Introduction
(continued)
iii. Liquidity risk
IFRS 7.31, 33 Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations
associated with its financial liabilities that are settled by delivering cash or another financial
asset. The Group’s objective when managing liquidity is to ensure, as far as possible, that it will
have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.
Australian content
The Group uses activity-based costing to cost its products and services, which assists it in
monitoring cash flow requirements and optimising its cash return on investments.
IFRS 7.34(a), 39(c), The Group aims to maintain the level of its cash and cash equivalents and other highly marketable
B10A
debt investments at an amount in excess of expected cash outflows on financial liabilities (other
than trade payables) over the next 60 days. The ratio of investments to outflows was 1.65 at
31 December 2020 (2019: 1.58). The Group also monitors the level of expected cash inflows on
trade and other receivables together with expected cash outflows on trade and other payables.
At 31 December 2020, the expected cash flows from trade and other receivables maturing
within two months were €12,331 thousand (2019: €8,940 thousand) and the expected cash
outflows from trade and other payables due within two months were €8,336 thousand (2019:
€7,250 thousand). This excludes the potential impact of extreme circumstances that cannot
reasonably be predicted, such as natural disasters.
Primary statements
IAS 7.50(a), In addition, the Group maintains the following lines of credit.
IFRS 7.B11F
– €10 million overdraft facility that is unsecured. Interest would be payable at the rate of Euribor
plus 150 basis points (2019: Euribor plus 160 basis points).
– €15 million facility that is unsecured and can be drawn down to meet short-term financing
needs. The facility has a 30‑day maturity that renews automatically at the option of the
Group. Interest would be payable at a rate of Euribor plus 100 basis points (2019: Euribor plus
110 basis points).
NOTES
Appendices

Introduction

(continued)
iii. Liquidity risk (continued)
Exposure to liquidity risk
IFRS 7.39(a) The following are the remaining contractual maturities of financial liabilities at the reporting date.
The amounts are gross and undiscounted, and include contractual interest payments and exclude
the impact of netting agreements.a, b
Contractual cash flows
Australian content
31 December 2020 Carrying 2 months 2–12 More than

In thousands of euro amount Total or less months 1–2 years 2–5 years 5 years
IFRS 7.39(a), Non-derivative financial

B11A–B11D
liabilities
Contingent consideration 270 (330) - - - (330) -
Bank overdrafts 334 (334) (334) - - - -
Secured bank loans 8,609 (9,409) (1,667) (420) (1,810) (5,512) -
Unsecured bank loan 503 (520) (194) (326) - - -
Unsecured bond issues 9,200 (10,272) (59) (3,195) (709) (6,309) -
Convertible notes 4,678 (5,375) - (150) (150) (5,075) -
Redeemable preference
shares 1,990 (2,528) - (88) (88) (264) (2,088)
Primary statements
IFRS 16.58 Lease liabilities 4,125 (5,697) (381) (334) (963) (1,450) (2,569)
Trade payables 23,017 (23,017) (23,017) - - - -
52,726 (57,482) (25,652) (4,513) (3,720) (18,940) (4,657)
IFRS 7.39(b), Derivative financial liabilitiesc
B11A–B11D
Interest rate swaps used for
hedging 20 (21) (1) (6) (6) (8) -
Forward exchange contracts
used for hedging:
– Outflow 8 (152) (91) (61) - - -
– Inflow - 142 85 57 - - -
28 (31) (7) (10) (6) (8) -
NOTES
IFRS 7.39, B11, a. The Group has disclosed a contractual maturity analysis for its financial liabilities, which is the minimum disclosure
Appendices
Insights 7.10.650.80 under IFRS 7 in respect of liquidity risk. Because IFRS 7 does not mandate the number of time bands to be used in
the analysis, the Group has applied judgement to determine an appropriate number of time bands.
Insights 7.10.650.70 b. The Group has included both the interest and principal cash flows in the analysis. In our view, this best represents
the liquidity risk being faced by the Group.
Insights 7.10.650.30 c. In our view, the maturity analysis should include all derivative financial liabilities, but contractual maturities only are
required for those essential for an understanding of the timing of the cash flows.
Introduction
(continued)
iii. Liquidity risk (continued)
Exposure to liquidity risk (continued)
Contractual cash flows
31 December 2019 Carrying 2 months 2–12 More than

In thousands of euro amount Total or less months 1–2 years 2–5 years 5 years
IFRS 7.39(a), Non-derivative financial
Australian content
B11A–B11D
liabilities
Bank overdrafts 282 (282) (282) - - - -
Secured bank loans 12,078 (13,112) (1,720) (3,605) (518) (6,357) (912)
Unsecured bank loan 117 (125) (63) (62) - - -
Unsecured bond issues 9,200 (10,613) (61) (184) (3,306) (1,703) (5,359)
IFRS 16.58 Lease liabilities 2,182 (3,186) (177) (354) (458) (666) (1,531)
Loan from associate 1,000 (1,048) (8) (1,040) - - -
Trade payables 20,438 (20,438) (20,438) - - - -
45,297 (48,804) (22,749) (5,245) (4,282) (8,726) (7,802)
IFRS 7.39(b), Derivative financial liabilities
B11A–B11D
Interest rate swaps used for
hedging 5 (5) - (2) (1) (2) -
Primary statements
used for hedging:
– Outflow 7 (41) (25) (16) - - -
– Inflow - 32 19 13 - - -
12 (14) (6) (5) (1) (2) -
IFRS 7.39(b)–(c), B11D The inflows/(outflows) disclosed in the above table represent the contractual undiscounted cash
flows relating to derivative financial liabilities held for risk management purposes and which are
not usually closed out before contractual maturity. The disclosure shows net cash flow amounts for
derivatives that are net cash-settled and gross cash inflow and outflow amounts for derivatives that
have simultaneous gross cash settlement.
IFRS 7.B10A As disclosed in Notes 28 and 37, the Group has a secured bank loan that contains a loan covenant.
A future breach of covenant may require the Group to repay the loan earlier than indicated in the
above table. In addition, convertible notes will become repayable on demand if the Group’s net
debt to adjusted equity ratio exceeds 1.95. Under the agreement, the covenant is monitored NOTES
on a regular basis by the treasury department and regularly reported to management to ensure
compliance with the agreement.
The interest payments on variable interest rate loans and bond issues in the table above reflect
market forward interest rates at the reporting date and these amounts may change as market
interest rates change. The future cash flows on contingent consideration (see Note 34(A)) and
derivative instruments may be different from the amount in the above table as interest rates and
exchange rates or the relevant conditions underlying the contingency change. Except for these
financial liabilities, it is not expected that the cash flows included in the maturity analysis could
occur significantly earlier, or at significantly different amounts.a
Appendices
Insights a. When the amount payable is not fixed, the amount to be disclosed is determined with reference to conditions
7.10.650.110 existing at the reporting date. For example, for a floating-rate bond with interest payments indexed to three-month
Euribor, in our view the amount to be disclosed should be based on forward rates rather than spot rates prevailing
at the reporting date because the spot interest rates do not represent the level of the index based on which the
cash flows will be payable. The forward interest rates better describe the level of the index in accordance with the
conditions existing at the reporting date.

Introduction

(continued)
iv. Market risk
IFRS 7.33 Market risk is the risk that changes in market prices – e.g. foreign exchange rates, interest
rates and equity prices – will affect the Group’s income or the value of its holdings of financial
instruments. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimising the return.
The Group uses derivatives to manage market risks. All such transactions are carried out within
the guidelines set by the risk management committee. Generally, the Group seeks to apply hedge
Australian content
accounting to manage volatility in profit or loss.

Managing interest rate benchmark reform and associated risks
Overview
IFRS 7.24H(c) A fundamental reform of major interest rate benchmarks is being undertaken globally, including
the replacement of some interbank offered rates (IBORs) with alternative nearly risk-free rates
(referred to as ‘IBOR reform’). The Group has exposures to IBORs on its financial instruments that
will be replaced or reformed as part of these market-wide initiatives. There is uncertainty over the
timing and the methods of transition in some jurisdictions that the Group operates in. The Group
anticipates that IBOR reform will impact its risk management and hedge accounting.
The risk management committee monitors and manages the Group’s transition to alternative
rates. The committee evaluates the extent to which contracts reference IBOR cash flows,
whether such contracts will need to be amended as a result of IBOR reform and how to manage
Primary statements
communication about IBOR reform with counterparties. The committee reports to the Company’s
board of directors quarterly and collaborates with other business functions as needed. It provides
periodic reports to management of interest rate risk and risks arising from IBOR reform.
Derivatives
IFRS 7.24H(a), (c), The Group holds interest rate swaps for risk management purposes which are designated in cash
31, 33 flow hedging relationships. The interest rate swaps have floating legs that are indexed to either
Euribor or sterling LIBOR. The Group’s derivative instruments are governed by contracts based on
the International Swaps and Derivatives Association (ISDA)’s master agreements.
[ISDA is currently reviewing its standardised contracts in the light of IBOR reform and plans to
amend certain floating-rate options in the 2006 ISDA definitions to include fallback clauses that
would apply on the permanent discontinuation of certain key IBORs. ISDA is expected to publish
an IBOR fallback supplement to amend the 2006 ISDA definitions and an IBOR fallback protocol
to facilitate multilateral amendments to include the amended floating-rate options in derivative
transactions that were entered into before the date of the supplement. The Group currently plans
NOTES
to adhere to the protocol if and when it is finalised and to monitor whether its counterparties will
also adhere. If this plan changes or there are counterparties who will not adhere to the protocol,
the Group will negotiate with them bilaterally about including new fallback clauses.] a
Hedge accounting
IFRS 7.24H(a) The Group has evaluated the extent to which its cash flow hedging relationships are subject
to uncertainty driven by IBOR reform as at 31 December 2020. The Group’s hedged items and
hedging instruments continue to be indexed to Euribor or sterling LIBOR. These benchmark rates
are quoted each day and the IBOR cash flows are exchanged with counterparties as usual.
The calculation methodology of Euribor changed during 2019. In July 2019, the Belgian Financial
Services and Markets Authority granted authorisation with respect to Euribor under the European
Union Benchmarks Regulation. This allows market participants to continue to use Euribor for
both existing and new contracts and the Group expects that Euribor will continue to exist as a
Appendices
benchmark rate for the foreseeable future.
a. This description is based on public information available at 23 September 2020 about the status of ISDA’s benchmark
reform activities at that date and assumes that no further progress will have been made. ISDA has indicated that
it expects to publish the IBOR fallback supplement and IBOR fallback protocol by the end of 2020. Entities need to
monitor the developments and update this note accordingly.
Introduction
(continued)
iv. Market risk (continued)
Managing interest rate benchmark reform and associated risks (continued)
Hedge accounting (continued)
However, the Group’s sterling LIBOR cash flow hedging relationships extend beyond the
anticipated cessation date for sterling LIBOR. The Group expects that sterling LIBOR will be
discontinued after the end of 2021. The preferred alternative reference rate is the Sterling
Australian content
Overnight Index Average (SONIA). However, there is uncertainty about when and how
replacement may occur with respect to the relevant hedged items and hedging instruments. Such
uncertainty may impact the hedging relationship. The Group applies the amendments to IFRS 9
issued in September 2019 to those hedging relationships directly affected by IBOR reform.
IFRS 7.24H(d) Hedging relationships impacted by IBOR reform may experience ineffectiveness attributable to
market participants’ expectations of when the shift from the existing IBOR benchmark rate to
an alternative benchmark interest rate will occur. This transition may occur at different times for
the hedged item and hedging instrument, which may lead to hedge ineffectiveness. The Group
has measured its hedging instruments indexed to sterling LIBOR using available quoted market
rates for LIBOR-based instruments of the same tenor and similar maturity and has measured the
cumulative change in the present value of hedged cash flows attributable to changes in sterling
LIBOR on a similar basis.
Primary statements
IFRS 7.24H(b), (e) The Group’s exposure to sterling LIBOR designated in hedging relationships is €1,000 thousand
nominal amount at 31 December 2020 (see Note 28(A)), representing both the nominal amount
of the hedging interest rate swap and the principal amount of the hedged sterling-denominated
secured bank loan liability maturing in 2022.
Currency riska
IFRS 7.21C, 22A(a) The Group is exposed to transactional foreign currency risk to the extent that there is a mismatch
between the currencies in which sales, purchases, receivables and borrowings are denominated
and the respective functional currencies of Group companies. The functional currencies of
Group companies are primarily the euro and Swiss francs (CHF). The currencies in which these
transactions are primarily denominated are euro, US dollars, sterling and Swiss francs.
IFRS 7.21A, The Group’s risk management policy is to hedge 75 to 85% of its estimated foreign currency
7.22A(b)–(c), 22C
exposure in respect of forecast sales and purchases over the following 12 months at any point in
time. The Group uses forward exchange contracts to hedge its currency risk, most with a maturity
of less than one year from the reporting date. These contracts are generally designated as cash NOTES
flow hedges.b
IFRS 7.24C(b)(vi) a. The Group did not designate any net positions in a hedging relationship. For an entity that did, the required
disclosures would include the hedging gains or losses recognised in a separate line item in the statement of profit
or loss and OCI.
IFRS 7.24B(a), b. The Group has not designated any fair value hedging relationships. For an entity that has a fair value hedge, the
24C(a) required disclosures would include:
– the carrying amount of the hedged item recognised in the statement of financial position (presenting assets
separately from liabilities);
– the accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount of
the hedged item recognised in the statement of financial position (presenting assets separately from liabilities);
– the line item in the statement of financial position that includes the hedged item;
Appendices
– the change in value of the hedged item used as the basis for recognising hedge ineffectiveness for the period;
– the accumulated amount of fair value hedge adjustments remaining in the statement of financial position for any
hedged items that have ceased to be adjusted for hedging gains and losses;
– hedge ineffectiveness: i.e. the difference between the hedging gains or losses of the hedging instrument and the
hedged item recognised in profit or loss; and
– the line item in the statement of profit or loss and OCI that includes the recognised hedge ineffectiveness.

Introduction

(continued)
Currency risk (continued)
IFRS 7.22B The Group designates the spot element of forward foreign exchange contracts to hedge its
currency risk and applies a hedge ratio of 1:1. The forward elements of forward exchange contracts
are excluded from the designation of the hedging instrument and are separately accounted for as
a cost of hedging, which is recognised in equity in a cost of hedging reserve. The Group’s policy is
Australian content
for the critical terms of the forward exchange contracts to align with the hedged item.
IFRS 7.22B(b) The Group determines the existence of an economic relationship between the hedging instrument
and hedged item based on the currency, amount and timing of their respective cash flows. The
Group assesses whether the derivative designated in each hedging relationship is expected
to be and has been effective in offsetting changes in cash flows of the hedged item using the
hypothetical derivative method.
IFRS 7.23D In these hedge relationships, the main sources of ineffectiveness are:a
– the effect of the counterparties’ and the Group’s own credit risk on the fair value of the forward
foreign exchange contracts, which is not reflected in the change in the fair value of the hedged
cash flows attributable to the change in exchange rates; and
– changes in the timing of the hedged transactions.
Primary statements
IFRS 7.34(a) Exposure to currency risk

The summary quantitative data about the Group’s exposure to currency risk as reported to the
management of the Group is as follows.
In thousands of EUR USD GBP CHF EUR USD GBP CHF
Trade receivables 1,977 8,365 2,367 - 3,099 6,250 1,780 -

Secured bank loans - (1,447) (886) (1,240) - (1,521) (4,855) (1,257)
Trade payables (876) (7,956) (4,347) - (5,411) (10,245) (2,680) -
Net statement of
financial position
exposure 1,101 (1,038) (2,866) (1,240) (2,312) (5,516) (5,755) (1,257)
Next six months’
forecast salesb 9,000 23,000 12,000 - 18,700 17,000 24,000 -
Next six months’
NOTES
forecast
purchasesb (10,000) (20,000) (8,000) - (9,800) (10,000) (17,000) -
Net forecast
transaction
exposure (1,000) 3,000 4,000 - 8,900 7,000 7,000 -
Forward exchange
contracts - (950) (946) - - (1,042) (870) -
Net exposure 101 1,012 188 (1,240) 6,588 442 375 (1,257)
IFRS 7.23E a. The Group did not have any new sources of hedge ineffectiveness emerging in designated hedging relationships.
If it had, then it would be required to disclose those sources by risk category and explain the resulting hedge
ineffectiveness.
Appendices
IFRS 7.34(a) b. Disclosure of estimated forecast sales and purchases does not form part of the minimum disclosure requirements
in IFRS 7, because estimated forecast sales and purchases are not financial instruments. However, the Group has
disclosed this information because it is relevant to an understanding of its exposure to currency risk. In addition,
IFRS 7 requires quantitative data about risk exposures to be based on information provided internally to key
management personnel and the Group provides forecast sales and purchase information to management as part
of its management of currency risk.
Introduction
(continued)
Currency risk (continued)
IFRS 7.34(a) Exposure to currency risk (continued)
IFRS 7.31 The following significant exchange rates have been applied.a
Average rate Year-end spot rate
Australian content
Euro 2020 2019 2020 2019
USD 1 0.758 0.765 0.750 0.758

GBP 1 1.193 1.214 1.172 1.230
CHF 1 0.818 0.825 0.810 0.828
IFRS 7.40 Sensitivity analysis
A reasonably possible strengthening (weakening) of the euro, US dollar, sterling or Swiss franc
against all other currencies at 31 December would have affected the measurement of financial
instruments denominated in a foreign currency and affected equity and profit or loss by the
amounts shown below. This analysis assumes that all other variables, in particular interest rates,
remain constant and ignores any impact of forecast sales and purchases.
Profit or loss Equity, net of tax
Effect in thousands of euro
Primary statements
Strengthening Weakening Strengthening Weakening
31 December 2020
EUR (9% movement) (33) 33 25 (25)
USD (10% movement) 25 (25) (7) 7
GBP (8% movement) 17 (17) (5) 5
CHF (3% movement) 2 (2) (30) 30
31 December 2019
EUR (10% movement) (37) 37 28 (28)
USD (12% movement) 85 (85) (8) 8
GBP (10% movement) 92 (92) (7) 7
CHF (5% movement) 6 (6) (50) 50
Interest rate risk

IFRS 7.21C, The Group adopts a policy of ensuring that between 80 and 90% of its interest rate risk exposure
22A(b)–(c), 22B–C
is at a fixed rate. This is achieved partly by entering into fixed-rate instruments and partly by NOTES
borrowing at a floating rate and using interest rate swaps as hedges of the variability in cash flows
attributable to movements in interest rates. The Group applies a hedge ratio of 1:1.
IFRS 7.22B(b), The Group determines the existence of an economic relationship between the hedging instrument
IFRS 9.6.8.6
and hedged item based on the reference interest rates, tenors, repricing dates and maturities and
the notional or par amounts. If a hedging relationship is directly affected by uncertainty arising from
IBOR reform, then the Group assumes for this purpose that the benchmark interest rate is not
altered as a result of interest rate benchmark reform.
The Group assesses whether the derivative designated in each hedging relationship is expected
to be effective in offsetting changes in cash flows of the hedged item using the hypothetical
derivative method.
Appendices
IFRS 7.31 a. Although it is not specifically required by the Standards, the Group has disclosed the significant exchange rates
applied. This disclosure is provided for illustrative purposes only. In addition, IFRS 7 requires information that enables
users of its financial statements to evaluate the nature and extent of risks arising from financial instruments to
which the entity is exposed at the reporting date.

Introduction

(continued)
IFRS 7.34(a) Interest rate risk (continued)
IFRS 7.23D In these hedge relationships, the main sources of ineffectiveness are:a
– the effect of the counterparty’s and the Group’s own credit risk on the fair value of the swaps,
which is not reflected in the change in the fair value of the hedged cash flows attributable to the
change in interest rates; and
Australian content
– differences in repricing dates between the swaps and the borrowings.
Hedging relationships that are impacted by IBOR reform may experience ineffectiveness because
of a timing mismatch between the hedged item and the hedging instrument regarding IBOR
transition. For further details, see ‘Managing interest rate benchmark reform and associated risks’
above.
Exposure to interest rate risk
The interest rate profile of the Group’s interest-bearing financial instruments as reported to the
management of the Group is as follows.
Nominal amount

Primary statements
Fixed-rate instruments
Financial assets 2,554 2,629
Financial liabilities (18,041) (12,869)
(15,487) (10,240)
Effect of interest rate swaps (8,000) (7,500)
(23,487) (17,740)
Variable-rate instruments
Financial liabilities (11,064) (14,055)
Effect of interest rate swaps 8,000 7,500
(3,064) (6,555)
Fair value sensitivity analysis for fixed-rate instruments
The Group does not account for any fixed-rate financial assets or financial liabilities, at FVTPL, and
the Group does not designate derivatives (interest rate swaps) as hedging instruments under a fair
value hedge accounting model. Therefore, a change in interest rates at the reporting date would
NOTES
not affect profit or loss.
A change of 100 basis points in interest rates would have increased or decreased equity by
€65 thousand after tax (2019: €66 thousand). This analysis assumes that all other variables, in
particular foreign currency exchange rates, remain constant.
Appendices
IFRS 7.23E a. The Group did not have any new sources of hedge ineffectiveness emerging in designated hedging relationships.
If it had, then it would be required to disclose those sources by risk category and explain the resulting hedge
ineffectiveness.
Introduction
(continued)
Interest rate risk (continued)
IFRS 7.40 Cash flow sensitivity analysis for variable-rate instruments
A reasonably possible change of 100 basis points in interest rates at the reporting date would
have increased (decreased) equity and profit or loss by the amounts shown below. This analysis
assumes that all other variables, in particular foreign currency exchange rates, remain constant.
Australian content
Profit or loss Equity, net of tax
100 bp 100 bp 100 bp 100 bp
Effect in thousands of euro increase decrease increase decrease
31 December 2020
Variable-rate instruments (66) 66 - -
Interest rate swaps 61 (61) 310 (302)
Cash flow sensitivity (net) (5) 5 310 (302)
31 December 2019
Interest rate swaps 61 (61) 280 (275)
Cash flow sensitivity (net) (81) 81 280 (275)
Primary statements
Other market price risk
IFRS 7.B5(a)(iii) The primary goal of the Group’s investment in equity securities is to hold the investments for the
long term for strategic purposes. Management is assisted by external advisers in this regard.
Certain investments are designated as at FVTPL because their performance is actively monitored
and they are managed on a fair value basis.
IFRS 7.40 Sensitivity analysis – Equity price risk

All of the Group’s listed equity investments are listed on either the London Stock Exchange or the
New York Stock Exchange. For such investments classified at FVOCI, a 2% increase in the FTSE
100 plus a 3% increase in the Dow Jones Industrial Average at the reporting date would have
increased equity by €28 thousand after tax (2019: an increase of €18 thousand after tax); an equal
change in the opposite direction would have decreased equity by €28 thousand after tax (2019:
a decrease of €18 thousand after tax). For such investments classified as at FVTPL, the impact
of a 2% increase in the FTSE 100 plus a 3% increase in the Dow Jones Industrial Average at the
reporting date on profit or loss would have been an increase of €16 thousand after tax (2019: NOTES
€18 thousand after tax). An equal change in the opposite direction would have decreased profit or
loss by €16 thousand after tax (2019: €18 thousand after tax).
Appendices

Introduction

(continued)
Cash flow hedgesa, b
IFRS 7.23B At 31 December 2020, the Group held the following instruments to hedge exposures to changes in
foreign currency and interest rates.
Maturity
6–12 More than
Australian content
1–6 months months one year
Foreign currency risk

IFRS 7.23B(a) Net exposure (in thousands of euro) 253 63 -
IFRS 7.23B(b) Average EUR:USD forward contract rate 0.91 0.87 0.83
Average EUR:GBP forward contract rate 1.27 1.23 1.20
Average EUR:CHF forward contract rate 0.92 0.91 0.90
Interest rate risk
Interest rate swaps
Net exposure (in thousands of euro) - 41 78
Average fixed interest rate 2.2% 2.4% 2.8%
Primary statements
At 31 December 2019, the Group held the following instruments to hedge exposures to changes in
foreign currency rates.
Maturity
6–12 More than
1–6 months months one year

Net exposure (in thousands of euro) 293 73 -
Average EUR:USD forward contract rate 0.93 0.89 0.85
Average EUR:GBP forward contract rate 1.35 1.32 1.28
Average EUR:CHF forward contract rate 0.95 0.93 0.91
Interest rate risk
Interest rate swaps
Net exposure (in thousands of euro) - 63 67
NOTES
Average fixed interest rate 2.1% 2.2% 2.9%
IFRS 7.23C, 24D a. The Group does not frequently reset hedging relationships because both the hedging instrument and the hedged
item frequently change (i.e. the entity does not use a dynamic process in which neither the exposure nor the
hedging instruments used to manage that exposure remain the same for a long period). If it did, then it would be
exempt from providing the disclosures required by paragraphs 23A and 23B of IFRS 7, but would instead provide
information about the ultimate risk management strategy, how it reflects its risk management strategy in its hedge
accounting and designations, and how frequently hedging relationships are discontinued and restarted. If the
Appendices
volume of these hedges is unrepresentative of normal volumes during the year (i.e. the volume at the reporting date
does not reflect the volumes during the year), then the entity would disclose that fact and the reason it believes the
volumes are unrepresentative.
IFRS 7.23F b. The Group did not have any forecast transaction for which cash flow hedge accounting had been used in the
previous period, but which is no longer expected to occur. If it did, then it would be required to disclose a description
of the forecast transaction as well as the amount reclassified from the cash flow hedge reserve to profit or loss.
Introduction
(continued)
Cash flow hedges (continued)
IFRS 7.24B(b) The amounts at the reporting date relating to items designated as hedged items were as follows.
31 December 2020
Balances
remaining in
Australian content
the cash flow
hedge reserve
from hedging
Change in relationships
value used for Costs of for which hedge
calculating hedge Cash flow hedging accounting is no
In thousands of euro ineffectiveness hedge reserve hedge reserve longer applied

Sales, receivables and borrowings 23 154 2 -
Inventory purchases 15 101 2 -
Interest rate risk
Variable-rate instruments 24 178 - -
31 December 2019
Primary statements
Sales, receivables and borrowings (35) 181 (27) -
Inventory purchases (23) 119 - -
Interest rate risk
NOTES
Appendices

Introduction

(continued)
IFRS 7.21B, 21D, 24A, The amounts relating to items designated as hedging instruments and hedge ineffectiveness were
24C(b)
as follows.
2020
Australian content
Line item in the

statement of financial
position where the
Carrying amount
Nominal hedging instrument is
In thousands of euro amount Assets Liabilities included

Other investments
including
Forward exchange contracts – 1,138 178 (5) derivatives (assets),
sales, receivables and trade and other
borrowings payables (liabilities)
Primary statements
Forward exchange contracts – Other investments

inventory purchases including
758 119 (3) derivatives (assets),
trade and other
payables (liabilities)
Interest rate risk
Other investments
including
Interest rate swaps 8,000 116 (20) derivatives (assets),
trade and other
NOTES
Appendices
Introduction
During the period – 2020
Australian content
Amount
Changes in Amount from from costs Amount
the value of Line item hedging of hedging Amount reclassified
the hedging Hedge in profit or Costs of reserve reserve reclassified from costs Line item in
instrument ineffectiveness loss that hedging transferred transferred from hedging of hedging profit or loss
recognised recognised in includes hedge recognised to cost of to cost of reserve to reserve to affected by the
in OCI profit or loss ineffectiveness in OCI inventory inventory profit or loss profit or loss reclassification
Finance
(23) (45) 20 - - (12) 6 Revenue
costs – other
Finance
Primary statements
- - - (6) 2
costs – other
(15) - 14 6 6 - -
Finance Finance
(24) (6) - - - (13) -
costs – other costs – other
NOTES
Appendices

Introduction

(continued)
IFRS 7.21B, 21D, 24A, The amounts relating to items designated as hedging instruments and hedge ineffectiveness were
24C(b)
as follows.
2019
Australian content
Line item in the

position where the
Carrying amount
Nominal hedging instrument is
In thousands of euro amount Assets Liabilities included

Other investments
Forward exchange contracts – including
sales, receivables and 1,147 211 (4) derivatives (assets),
borrowings trade and other
Primary statements
Other investments
including
Forward exchange contracts –
765 141 (3) derivatives (assets),
inventory purchases
trade and other
Interest rate risk
Other investments
including
Interest rate swaps 7,500 131 (5) derivatives (assets),
trade and other
NOTES
Appendices
Introduction
Australian content
Amount
Changes in Amount from from costs Amount
the value of Line item hedging of hedging Amount reclassified
the hedging Hedge in profit or Costs of reserve reserve reclassified from costs Line item in
instrument ineffectiveness loss that hedging transferred transferred from hedging of hedging profit or loss
recognised recognised in includes hedge recognised to cost of to cost of reserve to reserve to affected by the
in OCI profit or loss ineffectiveness in OCI inventory inventory profit or loss profit or loss reclassification
Finance
35 (11) costs – 6 - - (3) 7 Revenue
other
Finance
Primary statements
- - - (3) (5) costs –
other
23 - 4 1 (1) - -
Finance Finance
37 (5) costs – - - - (5) - costs –
other other
NOTES
Appendices

Introduction

(continued)
IFRS 7.24E–F The following table provides a reconciliation by risk category of components of equity and analysis
of OCI items, net of tax, resulting from cash flow hedge accounting.
2020
Cost of
Australian content
Hedging hedging
In thousands of euro reserve reserve
Balance at 1 January 2020 491 (27)

Cash flow hedges
Changes in fair value:
– Foreign currency risk – inventory purchases (15) 14
– Foreign currency risk – other items (23) 20
– Interest rate risk (24) -
Amount reclassified to profit or loss:
Amount included in the cost of non-financial items:
Primary statements
– Foreign currency risk – inventory purchases 6 6

Tax on movements on reserves during the year 29 (17)
Balance at 31 December 2020 433 4
NOTES
Appendices
Introduction
(continued)
2019
Cost of
Hedging hedging
In thousands of euro reserve reserve
Australian content
Balance at 1 January 2019 434 (35)
Cash flow hedges
Effective portion of changes in fair value:
– Foreign currency risk – inventory purchases 23 4
– Foreign currency risk – other items 35 6
– Interest rate risk 37 -
Amount reclassified to profit or loss:
Amount included in the cost of non-financial items:
– Foreign currency risk – inventory purchases 1 (1)
Tax on movements on reserves during the year (28) (3)
Primary statements
Balance at 31 December 2019 491 (27)
Net investment hedges
IFRS 7.22A A foreign currency exposure arises from the Group’s net investment in its Swiss subsidiary that
has a Swiss franc functional currency. The risk arises from the fluctuation in spot exchange rates
between the Swiss franc and the euro, which causes the amount of the net investment to vary.
The hedged risk in the net investment hedge is the risk of a weakening Swiss franc against the
euro that will result in a reduction in the carrying amount of the Group’s net investment in the
Swiss subsidiary.
IFRS 7.22B(a) Part of the Group’s net investment in its Swiss subsidiary is hedged by a Swiss franc-denominated
secured bank loan (carrying amount: €1,240 thousand (2019: €1,257 thousand)), which mitigates
the foreign currency risk arising from the subsidiary’s net assets. The loan is designated as a
hedging instrument for the changes in the value of the net investment that is attributable to
changes in the EUR/CHF spot rate.
NOTES
IFRS 7.22B(b) To assess hedge effectiveness, the Group determines the economic relationship between the
hedging instrument and the hedged item by comparing changes in the carrying amount of the
debt that is attributable to a change in the spot rate with changes in the investment in the foreign
operation due to movements in the spot rate (the offset method). The Group’s policy is to hedge
the net investment only to the extent of the debt principal.
Appendices

Introduction

(continued)
IFRS 7.24A, Net investment hedges (continued)
24C(b)(i)–(iii)
The amounts related to items designated as hedging instruments were as follows.
2020
Line item in the

Australian content
position where the

Carrying amount
hedging instrument
In thousands of euro Nominal amount Assets Liabilities is included
Foreign exchange- Loans and

denominated debt (CHF) 1,240 - 1,240 borrowings
IFRS 7.24B(b) The amounts related to items designated as hedged items were as follows.
2020
In thousands of euro Change in value used for calculating hedge ineffectiveness
CHF net investment 3

The amounts related to items designated as hedging instruments were as follows.
Primary statements
2019
Line item in the

position where the
Carrying amount
hedging instrument
In thousands of euro Nominal amount Assets Liabilities is included
Foreign exchange- Loans and

denominated debt (CHF) 1,257 - 1,257 borrowings
The amounts related to items designated as hedged items were as follows.
2019
In thousands of euro Change in value used for calculating hedge ineffectiveness
CHF net investment 8

NOTES
Appendices
Introduction
Change in value used
Australian content
for calculating hedge Change in value of Hedge ineffectiveness Line item in profit Amount reclassified Line item affected in
ineffectiveness for hedging instrument recognised in profit or loss that includes from hedging reserve profit or loss because
2020 recognised in OCI or loss hedge ineffectiveness to profit or loss of the reclassification
Finance costs –
(4) (3) (1) other - N/A
Balances remaining in the foreign currency translation reserve from

Foreign currency translation reserve hedging relationships for which hedge accounting is no longer applied
125 -
Primary statements
Change in value used

for calculating hedge Change in value of Hedge ineffectiveness Line item in profit Amount reclassified Line item affected in
ineffectiveness for hedging instrument recognised in profit or loss that includes from hedging reserve profit or loss because
2019 recognised in OCI or loss hedge ineffectiveness to profit or loss of the reclassification
Finance costs –
(8) (8) - other - N/A
Balances remaining in the foreign currency translation reserve from

Foreign currency translation reserve hedging relationships for which hedge accounting is no longer applied
105 - NOTES
Appendices

Introduction

(continued)
IFRS 7.13B, 13E, B50 D. Master netting or similar agreementsa, b
The Group enters into derivative transactions under International Swaps and Derivatives
Association (ISDA) master netting agreements. In general, under these agreements the amounts
owed by each counterparty on a single day in respect of all transactions outstanding in the
same currency are aggregated into a single net amount that is payable by one party to the other.
In certain circumstances – e.g. when a credit event such as a default occurs – all outstanding
transactions under the agreement are terminated, the termination value is assessed and only a
single net amount is payable in settlement of all transactions.
Australian content
The ISDA agreements do not meet the criteria for offsetting in the statement of financial
position. This is because the Group does not have any currently legally enforceable right to offset
recognised amounts, because the right to offset is enforceable only on the occurrence of future
events such as a default on the bank loans or other credit events.
The following table sets out the carrying amounts of recognised financial instruments that are
subject to the above agreements.
Gross
amounts
of financial Related
instruments in financial
the statement instruments
of financial that are
IFRS 7.13C, B46 In thousands of euro Note position not offset Net amount
Primary statements
31 December 2020
Financial assets
Other investments, including derivatives
– Interest rate swaps used for hedging 25 116 (5) 111
– Forward exchange contracts used for hedging 25 297 (16) 281
– Other forward exchange contracts 25 122 (7) 115
535 (28) 507
Financial liabilities
Trade and other payables
– Interest rate swaps used for hedging 29 (20) 20 -
– Forward exchange contracts used for hedging 29 (8) 8 -
(28) 28 -
31 December 2019
Financial assets
NOTES
Other investments, including derivatives

– Interest rate swaps used for hedging 25 131 (2) 129
– Forward exchange contracts used for hedging 25 352 (8) 344
– Other forward exchange contracts 25 89 (2) 87
572 (12) 560
Trade and other payables
– Interest rate swaps used for hedging 29 (5) 5 -
– Forward exchange contracts used for hedging 29 (7) 7 -
(12) 12 -
IFRS 7.13C, B51– a. The disclosure requirements in paragraph 13C of IFRS 7 may be grouped by type of financial instrument or
Appendices
B52, Insights transaction. Alternatively, an entity may present the disclosures in paragraph 13C(a)–(c) by type of financial
7.10.250.70 instrument, and those in 13C(c)–(e) by counterparty.
IFRS 7.13C, B52– b. The disclosure requirements described in paragraph 13C of IFRS 7 are minimum requirements. An entity
B53, Insights supplements them with additional qualitative disclosures if they are necessary for financial statement users to
7.10.250.120 evaluate the actual or potential effect of netting arrangements on its financial position. When disclosing quantitative
information by counterparty, an entity considers qualitative disclosure about the type of counterparty.
Group composition
Introduction
33. List of subsidiariesa
See accounting policy in Note 45(A)(ii).
IFRS 12.10(a), 12(a)–(b), Set out below is a list of material subsidiaries of the Group.
IAS 24.13–14
The Company
Australian content
Baguette S.A. Lei Sure Paper Pabus Hemy Payo
Mermaid A/S Papier GmbH Oy Kossu AG
Limited Co Products N.V.
France Denmark Germany Romania UK Netherlands Switzerland
100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 90% 90%
Papyrus Pty Swissolote Sloan Bio-

Maple-leaf Inc Silver Fir S.A. MayCo
Limited AG Research Co
US Switzerland Canada Spain UK US
90% 25% 75% 60% 45% 45% 48% 48% - - - -
Name Ownership interest in 2020

Principal place of business Ownership interest in 2019
Primary statements
A. Maple-leaf Inc and Silver Fir S.A.
IFRS 12.7(a), 9(b), Although the Group owns less than half of Maple-leaf Inc and Silver Fir S.A. and has less than half
IAS 1.122
of their voting power, management has determined that the Group controls these two entities.
The Group controls Maple-leaf Inc by virtue of an agreement with its other shareholders; the
Group has control over Silver Fir S.A., on a de facto power basis, because the remaining voting
rights in the investee are widely dispersed and there is no indication that all other shareholders
exercise their votes collectively.
B. Sloan Bio-Research Co and MayCo
IFRS 12.7(a), 9(b), The Group does not hold any ownership interests in two structured entities, Sloan Bio-Research
10(b)(ii)
Co and MayCo. However, based on the terms of agreements under which these entities were
established, the Group receives substantially all of the returns related to their operations and net
assets (these entities perform research activities exclusively for the Group) and has the current
ability to direct these entities’ activities that most significantly affect these returns. Because the
owners’ interests in these entities are presented as liabilities of the Group, there are no NCI for
NOTES
these entities.
IFRS 12.14 The Company has issued guarantees to certain banks in respect of the credit facilities of
€700 thousand granted to these entities, which is the maximum amount the Company is
exposed to.
Appendices
a. For additional disclosure examples and explanatory notes on IFRS 12, see our Guide to annual financial statements –
IFRS 12 supplement.

Introduction
34. Acquisition of subsidiary

See accounting policy in Note 45(A)(i)–(iii).
IFRS 3.B64(a)–(c) On 31 March 2020, the Group acquired 65% of the shares and voting interests in Papyrus. As
a result, the Group’s equity interest in Papyrus increased from 25 to 90%, granting it control of
Papyrus (see Note 24(B)).
Included in the identifiable assets and liabilities acquired at the date of acquisition of Papyrus
are inputs (a head office, several factories, patented technology, inventories and customer
relationships), production processes and an organised workforce. The Group has determined that
together the acquired inputs and processes significantly contribute to the ability to create revenue.
The Group has concluded that the acquired set is a business.a
Australian content
IFRS 3.B64(d) Taking control of Papyrus will enable the Group to modernise its production process through
access to Papyrus’s patented technology. The acquisition is also expected to provide the Group
with an increased share of the standard paper market through access to Papyrus’s customer base.
The Group also expects to reduce costs through economies of scale.
IFRS 3.B64(q) For the nine months ended 31 December 2020, Papyrus contributed revenue of
€20,409 thousand and profit of €425 thousand to the Group’s results. If the acquisition had
occurred on 1 January 2020, management estimates that consolidated revenue would have
been €107,091 thousand, and consolidated profit for the year would have been €8,128 thousand.
In determining these amounts, management has assumed that the fair value adjustments,
determined provisionally, that arose on the date of acquisition would have been the same if the
acquisition had occurred on 1 January 2020.
A. Consideration transferred
Primary statements
IFRS 3.B64(f)
The following table summarises the acquisition date fair value of each major class of consideration
transferred.
IFRS 3.B64(f)(i),
IAS 7.40(a)–(b) Cash 2,500
IFRS 3.B64(f)(iv),
IAS 7.43 Equity instruments (8,000 ordinary shares) 26(A)(i) 87
Replacement share-based payment awards 120
IFRS 3.B64(f)(iii) Contingent consideration 32(B)(iii) 250
Settlement of pre-existing relationship 9(B) (326)
Total consideration transferred 2,631
i. Equity instruments issued
IFRS 3.B64(f)(iv) The fair value of the ordinary shares issued was based on the listed share price of the Company at
31 March 2020 of €10.88 per share.
NOTES
ii. Replacement share-based payment awards

IFRS 3.B64(l) In accordance with the terms of the acquisition agreement, the Group exchanged equity-settled
share-based payment awards held by employees of Papyrus (the acquiree’s awards) for equity-
settled share-based payment awards of the Company (the replacement awards). The details of the
acquiree’s awards and replacement awards were as follows.
Acquiree’s awards Replacement awards
Terms and conditions Grant date: 1 April 2019 Vesting date: 31 March 2023
Vesting date: 31 March 2023 Service condition
Service condition
Fair value at date of
Appendices
acquisition €527 thousand €571 thousand
IFRS 3.3 a. There are no additional disclosure requirements introduced by Definition of a Business (Amendments to IFRS 3). An
entity applies the existing disclosure requirements of IFRS 3. This information is provided for illustration purposes only.
Group composition
Introduction
34. Acquisition of subsidiary (continued)
A. Consideration transferred (continued)
ii. Replacement share-based payment awards (continued)
The value of the replacement awards is €520 thousand, after taking into account an estimated
forfeiture rate of 9%. The consideration for the business combination includes €120 thousand
transferred to employees of Papyrus when the acquiree’s awards were substituted by the
replacement awards, which relates to past service. The balance of €400 thousand will be
recognised as post-acquisition compensation cost. For further details on the replacement awards,
see Note 12(A)(ii).
Australian content
iii. Contingent consideration
IFRS 3.B64(g), B67(b) The Group has agreed to pay the selling shareholders in three years’ time additional consideration
of €600 thousand if the acquiree’s cumulative EBITDA over the next three years exceeds
€10,000 thousand. The Group has included €250 thousand as contingent consideration related
to the additional consideration, which represents its fair value at the date of acquisition. At
31 December 2020, the contingent consideration had increased to €270 thousand (see Note 29).
iv. Settlement of pre-existing relationship
IFRS 3.B64(l) The Group and Papyrus were parties to a long-term supply contract under which Papyrus supplied
the Group with timber products at a fixed price. Under the contract, the Group could terminate the
agreement early by paying Papyrus €326 thousand. This pre-existing relationship was effectively
terminated when the Group acquired Papyrus.
The Group has attributed €326 thousand of the consideration transferred to the extinguishment of
Primary statements
the supply contract, and has included the amount in ‘other expenses’ (see Note 9(B)). This amount
is the lower of the termination amount and the value of the off-market element of the contract. The
fair value of the contract at the date of acquisition was €600 thousand, of which €400 thousand
related to the unfavourable aspect of the contract to the Group relative to market prices.
B. Acquisition-related costs
IFRS 3.B64(l)–(m) The Group incurred acquisition-related costs of €50 thousand on legal fees and due diligence
costs. These costs have been included in ‘administrative expenses’.
IFRS 3.B64(i), C. Identifiable assets acquired and liabilities assumed

IAS 7.40(a)–(d)
The following table summarises the recognised amounts of assets acquired and liabilities
assumed at the date of acquisition.
Property, plant and equipment 21(A) 1,955

Intangible assets 22(A) 250 NOTES
Inventories 825
IFRS 3.B64(h)(i) Trade receivables 848
IAS 7.40(c) Cash and cash equivalents 375
Loans and borrowings (500)
Deferred tax liabilities 14(E) (79)
Contingent liabilities 31 (20)
Site restoration provision 31 (150)
Trade and other payables (460)
Total identifiable net assets acquired 3,044
Appendices

Introduction

C. Identifiable assets acquired and liabilities assumed (continued)
IFRS 3.61 i. Measurement of fair valuesa
The valuation techniques used for measuring the fair value of material assets acquired were as
follows.
Assets acquired Valuation technique
Property, Market comparison technique and cost technique: The valuation model considers market prices
plant and for similar items when they are available, and depreciated replacement cost when appropriate.
equipment Depreciated replacement cost reflects adjustments for physical deterioration as well as
Australian content
functional and economic obsolescence.

Intangible Relief-from-royalty method and multi-period excess earnings method: The relief-from-royalty
assets method considers the discounted estimated royalty payments that are expected to be avoided
as a result of the patents being owned. The multi-period excess earnings method considers the
present value of net cash flows expected to be generated by the customer relationships, by
excluding any cash flows related to contributory assets.
Inventories Market comparison technique: The fair value is determined based on the estimated selling
price in the ordinary course of business less the estimated costs of completion and sale, and
a reasonable profit margin based on the effort required to complete and sell the inventories.
IFRS 3.B64(h)(ii)–(iii) The trade receivables comprise gross contractual amounts due of €900 thousand, of which
€52 thousand was expected to be uncollectable at the date of acquisition.
Fair values measured on a provisional basis
IFRS 3.B67(a), The following amounts have been measured on a provisional basis.
Primary statements
IAS 1.125
– The fair value of Papyrus’s intangible assets (patented technology and customer relationships)
has been measured provisionally, pending completion of an independent valuation.
IFRS 3.B64(j), B67(c), – Papyrus is the defendant in legal proceedings brought by a customer that alleges that Papyrus
IAS 37.86
supplied defective goods. Management’s assessment, based on its interpretation of the
underlying sales contract and independent legal advice, is that the basis for the customer’s
claim has little merit and it is not probable that an outflow will be required to settle the claim.
Management’s assessment of the fair value of this contingent liability, taking into account the
range of possible outcomes of the judicial process, is €20 thousand (see Note 40).
– Papyrus’s operations are subject to specific environmental regulations. The Group has
conducted a preliminary assessment of site restoration provisions arising from these
regulations and has recognised a provisional amount. The Group will continue to review these
matters during the measurement period.
If new information obtained within one year of the date of acquisition about facts and
circumstances that existed at the date of acquisition identifies adjustments to the above amounts,
NOTES
or any additional provisions that existed at the date of acquisition, then the accounting for the
acquisition will be revised.
Appendices
IFRS 13.BC184 a. The Group has disclosed information about the fair value measurement of assets acquired in a business
combination, although the disclosure requirements of IFRS 13 do not apply to the fair value of these assets if they
are subsequently measured at other than fair value. This disclosure is provided for illustrative purposes only.
Group composition
Introduction
D. Goodwill
Goodwill arising from the acquisition has been recognised as follows.
In thousands of euro Note 2020
Consideration transferred (A) 2,631

IFRS 3.B64(o)(i) NCI, based on their proportionate interest in the recognised amounts of
the assets and liabilities of Papyrus 305
IFRS 3.B64(p)(i) Fair value of pre-existing interest in Papyrus 649
Fair value of identifiable net assets (C) (3,044)
Australian content
Goodwill 22(A) 541
IFRS 3.B64(p)(ii) The remeasurement to fair value of the Group’s existing 25% interest in Papyrus resulted in a
gain of €250 thousand (€649 thousand less the €419 thousand carrying amount of the equity-
accounted investee at the date of acquisition plus €20 thousand of translation reserve reclassified
to profit or loss). This amount has been included in ‘finance income’ (see Note 10).
IFRS 3.B64(e), B64(k) The goodwill is attributable mainly to the skills and technical talent of Papyrus’s work force and the
synergies expected to be achieved from integrating the company into the Group’s existing Standard
Papers business. None of the goodwill recognised is expected to be deductible for tax purposes.
Primary statements
NOTES
Appendices

Introduction
35. Non-controlling interestsa

See accounting policies in Note 45(A)(ii)–(iii) and (vi).
IFRS 12.10(a)(ii), 12, The following table summarises the information relating to each of the Group’s subsidiaries that has
B10–B11
material NCI, before any intra-group eliminations.b
31 December 2020 Papyrus Pty
In thousands of euro Limited
NCI percentage 10%

Non-current assets 2,500
Current assets 1,780
Australian content
Non-current liabilities (715)

Current liabilities (43)
Net assets 3,522
Net assets attributable to NCI 352
Revenue 20,409
Profit 450
OCI 25
Total comprehensive income 475
Profit allocated to NCI 45
OCI allocated to NCI 3
Cash flows from operating activities 430
Cash flows from investment activities (120)
Primary statements
Cash flows from financing activities (dividends to NCI: nil) 12

Net increase (decrease) in cash and cash equivalents 322
31 December 2019
NCI percentage
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Net assets
Net assets attributable to NCI
Revenue
Profit
NOTES
OCI
Total comprehensive income
Profit allocated to NCI
OCI allocated to NCI
Cash flows from operating activities
Cash flows from investment activities
Cash flows from financing activities (dividends to NCI: nil)
Net increase (decrease) in cash and cash equivalents
* See Note 44.
On 31 March 2020, the Group’s equity interest in Papyrus increased from 25 to 90% and Papyrus
became a subsidiary from that date (see Note 34). Accordingly, the information relating to Papyrus is
Appendices
only for the period from 1 April to 31 December 2020.
Group composition
Introduction
Other individually
immaterial Intra-group
Oy Kossu AG Swissolote AG Maple-leaf Inc Silver Fir S.A. subsidiaries eliminations Total
10% 25% 55% 52%

9,550 7,438 1,550 4,948
5,120 1,115 890 1,272
Australian content
(5,230) (6,575) (1,280) (533)
(5,084) (915) (442) (1,018)
4,356 1,063 718 4,669
436 266 395 2,428 7 (80) 3,804
10,930 9,540 8,112 15,882
566 410 245 309
- - 44 -
566 410 289 309
57 103 135 161 3 (7) 497
- - 24 - - (1) 26
210 166 (268) (135)
510 75 - (46)
Primary statements
(600) (320) - 130
120 (79) (268) (51)
Other individually
Oy Kossu AG Swissolote AG immaterial Intra-group
Restated* Restated* Maple-leaf Inc Silver Fir S.A. subsidiaries eliminations Total
10% 40% 55% 52%

9,120 7,322 1,394 4,874
4,960 1,278 850 638
(5,900) (6,900) (1,200) -
(4,390) (1,047) (615) (1,152)
3,790 653 429 4,360
379 261 236 2,267 2 (54) 3,091
8,660 9,390 6,259 13,743
150 252 236 285 NOTES
- - 40 -
150 252 276 285
15 101 130 148 (5) (38) 351
- - 22 - - - 22
300 115 530 (100)
(25) (40) (788) (30)
(200) (50) 190 130
75 25 (68) -
Appendices
a. For additional disclosure examples and explanatory notes on IFRS 12, see our Guide to annual financial statements –
IFRS 12 supplement.
b. Although it is not required by IFRS 12, the Group has reconciled from the summarised financial information about
subsidiaries with material NCI to the total amounts in the financial statements. This disclosure is provided for
illustrative purposes only.

Introduction
36. Acquisition of NCI

See accounting policies in Note 45(A)(ii)–(iii).
IFRS 12.10(b)(iii), 18 In June 2020, the Group acquired an additional 15% interest in Swissolote, increasing its
ownership from 60 to 75%. The carrying amount of Swissolote’s net assets in the Group’s
consolidated financial statements on the date of the acquisition was €767 thousand.
Carrying amount of NCI acquired (€767 x 15%) 115

Consideration paid to NCI 200
A decrease in equity attributable to owners of the Company (85)
Australian content
The decrease in equity attributable to owners of the Company comprised:

– a decrease in retained earnings of €93 thousand; and
– an increase in the translation reserve of €8 thousand.
Primary statements
NOTES
Appendices
Other information
Introduction
37. Loan covenant waiver
IFRS 7.18–19 As explained in Note 28(B), the Group exceeded its maximum leverage threshold (loan covenant
ratio, calculated as debt to quarterly revenue for continuing operations) associated with a bank
loan in the third quarter of 2020. The Group obtained a waiver of the breach of covenant in October
2020 for a period of 18 months. Subsequent to 31 December 2020, the bank revised the loan
covenant ratio from 2.5 to 3.5 times and the waiver was lifted. On the basis of the new covenant
and its forecasts, management believes that the risk of the new covenant being breached is low.
Australian content
Primary statements
NOTES
Appendices

Introduction
38. Leases
See accounting policy in Note 45(T).
A. Leases as lessee
IFRS 16.51, 59 The Group leases warehouse and factory facilities. The leases typically run for a period of 10 years,
with an option to renew the lease after that date. Lease payments are renegotiated every
five years to reflect market rentals. Some leases provide for additional rent payments that are
based on changes in local price indices. For certain leases, the Group is restricted from entering
into any sub-lease arrangements.
IAS 1.122 The warehouse and factory leases were entered into many years ago as combined leases of land
Australian content
and buildings.
During 2020, one of the leased properties has been sub-let by the Group. The lease and sub-lease
expire in 2022.
IFRS 16.60 The Group leases IT equipment with contract terms of one to three years. These leases are short-
term and/or leases of low-value items. The Group has elected not to recognise right-of-use assets
and lease liabilities for these leases.
IFRS 16.53–54 Information about leases for which the Group is a lessee is presented below.
i. Right-of-use assetsa
IFRS 16.47(a)(ii) Right-of-use assets related to leased properties that do not meet the definition of investment
property are presented as property, plant and equipment (see Note 21(A)).
Primary statements
Land and Production

In thousands of euro buildings equipment Total
2020
IFRS 16.53(j) Balance at 1 January 2,181 1,972 4,153
IFRS 16.53(a) Depreciation charge for the year (25) (283) (308)
IFRS 16.53(h) Additions to right-of-use assets 150 - 150
Derecognition of right-of-use assets* (402) - (402)
IFRS 16.53(j) Balance at 31 December 1,904 1,689 3,593
* Derecognition of the right-of-use assets is as a result of entering into a finance sub-lease.
NOTES
Appendices
a. Although it is not required by IFRS 16, the Group has reconciled the opening and closing right-of-use asset carrying
amounts in the financial statements. This disclosure is provided for illustrative purposes only.
Other information
Introduction
38. Leases (continued)
A. Leases as lessee (continued)
i. Right-of-use assets (continued)
Land and Production
In thousands of euro buildings equipment Total
2019
IFRS 16.53(j) Balance at 1 January 2,526 2,057 4,583
IFRS 16.53(a) Depreciation charge for the year (30) (265) (295)
IFRS 16.53(h) Additions to right-of-use assets - 180 180
Australian content
Derecognition of right-of-use assets* (315) - (315)
IFRS 16.53(j) Balance at 31 December 2,181 1,972 4,153
* Derecognition of the right-of-use assets is as a result of entering into a finance sub-lease.
ii. Amounts recognised in profit or loss

IFRS 16.53(b) Interest on lease liabilities 320 238

IFRS 16.53(f) Income from sub-leasing right-of-use assets presented in ‘other revenue’ (150) (90)
IFRS 16.53(c) Expenses relating to short-term leases 80 90
IFRS 16.53(d) Expenses relating to leases of low-value assets, excluding short-term
leases of low-value assets 65 119
iii. Amounts recognised in statement of cash flows
Primary statements
IFRS 16.53(g) Total cash outflow for leases 1,019 1,037
iv. Extension options

IFRS 16.59(b)(ii), B50, Some property leases contain extension options exercisable by the Group up to one year
IE10 Ex.23 before the end of the non-cancellable contract period. Where practicable, the Group seeks to
include extension options in new leases to provide operational flexibility. The extension options
held are exercisable only by the Group and not by the lessors. The Group assesses at the lease
commencement date whether it is reasonably certain to exercise the extension options. The
Group reassesses whether it is reasonably certain to exercise the options if there is a significant
event or significant changes in circumstances within its control.
The Group has estimated that the potential future lease payments, should it exercise the
extension option, would result in an increase in lease liability of €120 thousand.
NOTES
B. Leases as lessor
IFRS 16.90–91 The Group leases out its investment property consisting of its owned commercial properties
as well as leased property (see Note 23). All leases are classified as operating leases from a
lessor perspective with the exception of a sub-lease, which the Group has classified as a finance
sub‑lease.
Appendices

Introduction
38. Leases (continued)

B. Leases as lessor (continued)
i. Finance lease
IFRS 16.92(a) During 2020, the Group has sub-leased a building that has been presented as part of a right-of-use
asset – property, plant and equipment.
IFRS 16.90(a)(i) During 2020, the Group recognised a gain of €22 thousand (2019: nil) on derecognition of the right-
of-use asset pertaining to the building and presented the gain as part of ‘Gain on sale of property,
plant and equipment’ (see Note 9(A)).
IFRS 16.90(a)(ii) During 2020, the Group recognised interest income on lease receivables of €2 thousand (2019:
Australian content
nil).
IFRS 16.94 The following table sets out a maturity analysis of lease receivables, showing the undiscounted
lease payments to be received after the reporting date.
Less than one year 103 35

One to two years 128 100
Two to three years 131 120
Three to four years 92 100
Four to five years - -
More than five years - -
Total undiscounted lease receivable 454 355
Primary statements
Unearned finance income 30 40

Net investment in the lease 424 315
ii. Operating lease
IFRS 16.92(a) The Group leases out its investment property. The Group has classified these leases as operating
leases, because they do not transfer substantially all of the risks and rewards incidental to the
ownership of the assets. Note 23 sets out information about the operating leases of investment
property.
IFRS 16.90(b) Rental income recognised by the Group during 2020 was €460 thousand (2019: €302 thousand).
IFRS 16.97 The following table sets out a maturity analysis of lease payments, showing the undiscounted
lease payments to be received after the reporting date.
Less than one year 450 332

NOTES
One to two years 400 420

Two to three years 380 390
Three to four years 350 360
Four to five years 340 300
More than five years 145 445
Total 2,065 2,247
Appendices
Other information
Introduction
39. Commitments
IAS 16.74(c) During 2020, the Group entered into a contract to purchase property, plant and equipment and
patents and trademarks in 2020 for €1,465 thousand (2019: nil) and €455 thousand (2019: nil)
respectively.
The Group is committed to incurring other capital expenditure of €150 thousand (2019:
€45 thousand). The Group’s joint venture is committed to incurring capital expenditure
of €23 thousand (2019: €11 thousand), of which the Group’s share is €9 thousand (2019:
€4 thousand). These commitments are expected to be settled in 2021.
IAS 40.75(h) The Group has entered into contracts for the management and maintenance of certain commercial
Australian content
properties that are leased to third parties. These contracts will give rise to annual expense of
€15 thousand for the next five years.
40. Contingencies
IAS 1.125, 37.86 A subsidiary is defending an action brought by an environmental agency in Europe. Although
liability is not admitted, if the defence against the action is unsuccessful, then fines and legal
costs could amount to €950 thousand, of which €250 thousand would be reimbursable under an
insurance policy. Based on legal advice, management believes that the defence against the action
will be successful.
As part of the acquisition of Papyrus, the Group recognised a contingent liability of €20 thousand in
respect of a claim for contractual penalties made by one of Papyrus’s customers (see Note 34(C)).
Primary statements
NOTES
Appendices

Introduction
41. Related partiesa, b

A. Parent and ultimate controlling party
IAS 1.138(c), 24.13 During 2020, a majority of the Company’s shares were acquired by Cameron Paper Co from
Brown Products Corporation. As a result, the new ultimate controlling party of the Group is
AJ Pennypacker. The previous ultimate controlling party was Sigma Global Investment Holdings.c
IAS 24.18 B. Transactions with key management personnel

i. Key management personnel compensation
Key management personnel compensation comprised the following.
Australian content
IAS 24.17(a) Short-term employee benefits 502 420

IAS 19.151(b), 24.17(b) Post-employment benefits 82 103
IAS 24.17(c) Other long-term benefits 3 2
IAS 24.17(d) Termination benefits 25 -
IAS 24.17(e) Share-based payments 516 250
1,128 775
Compensation of the Group’s key management personnel includes salaries, non-cash benefits and
contributions to a post-employment defined benefit plan (see Note 13).
Executive officers also participate in the Group’s share option programme (see Note 12(A)(i)).
Furthermore, employees of the Company are entitled to participate in a share purchase
Primary statements
programme (see Note 12(A)(iii)) if they meet the criteria of investing a percentage of each month’s
salary for a period of 36 months. Consequently, the Group has deducted €78 thousand from the
salaries of the employees concerned (including an amount of €37 thousand that relates to key
management personnel), to satisfy the criteria. The amounts withheld are included in ‘trade and
other payables’ (see Note 29).
IAS 24.17(d) As a result of the termination of the employment of one of the Group’s executives in France, the
executive received an enhanced retirement entitlement. Accordingly, the Group has recognised an
expense of €25 thousand during the year (2019: nil).
ii. Key management personnel transactions
Directors of the Company control 12% of the voting shares of the Company. A relative of a director
of a subsidiary has a 10% share in the Group’s joint venture (see Note 24(A)).
A number of key management personnel, or their related parties, hold positions in other
companies that result in them having control or significant influence over these companies.
NOTES
IAS 24.18(b)(i) A number of these companies transacted with the Group during the year. The terms and
conditions of these transactions were no more favourable than those available, or which might
reasonably be expected to be available, in similar transactions with non-key management
personnel-related companies on an arm’s length basis.
ASIC Instrument a. Where ASIC Instrument 2016/191 is applied in the financial statements, related party disclosures are subject to the
2016/191 exception of the rounding provisions. This exception is not reflected in this international-based illustrative disclosure.
b. For example disclosures for government-related entities that apply the exemption in paragraph 25 of IAS 24 Related
Appendices
Party Disclosures, see Appendix IV.

IAS 24.13 c. The Company’s parent produces consolidated financial statements that are available for public use. If neither the
Company’s parent nor its ultimate controlling party produced consolidated financial statements available for public
use, then the Company would disclose the name of the next most senior parent that does so. If neither the ultimate
controlling party nor any intermediate controlling party produced consolidated financial statements that are available
for public use, then this fact would be disclosed.
Other information
Introduction
41. Related parties (continued)
B. Transactions with key management personnel (continued)
ii. Key management personnel transactions (continued)
IAS 24.18(a) The aggregate value of transactions and outstanding balances related to key management
personnel and entities over which they have control or significant influence were as follows.
Transaction values for the Balance outstanding as at
In thousands of euro year ended 31 December 31 December
Transaction Note 2020 2019 2020 2019
Legal fees (a) 12 13 - -
Australian content
Repairs and maintenance (b) 410 520 137 351
Inventory purchases – paper (c) 66 - - -
IAS 24.18(b)(i), 23 a. The Group used the legal services of one of its directors in relation to advice over the sale of
certain non-current assets of the Company. Amounts were billed based on market rates for
such services and were due and payable under normal payment terms.
b. In 2019, the Group entered into a two-year contract with On-Track Limited, a company
controlled by another director, to buy repairs and maintenance services on production
equipment. The total contract value is €986 thousand. The contract terms are based on
market rates for these types of services and amounts are payable on a quarterly basis for the
duration of the contract.
c. The Group bought various paper supplies from Alumfab Limited, a company that is controlled
by another director. Amounts were billed based on market rates for such supplies and were
Primary statements
due and payable under normal payment terms.
From time to time directors of the Group, or their related entities, may buy goods from the Group.
These purchases are on the same terms and conditions as those entered into by other Group
employees or customers.
IAS 24.18 C. Other related party transactionsa

Transaction values for the Balance outstanding as at
year ended 31 December 31 December
In thousands of euro Note 2020 2019 2020 2019
IAS 24.18(a)–(b), 19 Sale of goods and services

Parent of the Group – Cameron Paper Co
(2019: Brown Products Corporation) 350 320 253 283
Joint venture 745 250 651 126
Associates 400 150 332 233
NOTES
Purchase of goods
Joint venture 1,053 875 - -
Others
Joint venture
– Dividends received 24 21 - - -
Associates
– Loan and related interest 28 5 6 - 1,000
Appendices
Insights 5.5.120.30 a. In our view, an entity should disclose the portions of transactions with joint ventures or associates that are not
eliminated in applying equity accounting in the consolidated financial statements.

Introduction

IAS 24.18 C. Other related party transactions (continued)
IAS 24.18(b)(i)–(ii), All outstanding balances with these related parties are priced on an arm’s length basis and are to
18(c)–(d), 23
be settled in cash within two months of the reporting date. None of the balances is secured. No
expense has been recognised in the current year or prior year for bad or doubtful debts in respect
of amounts owed by related parties. During 2020, there were no transactions or outstanding
balances with Brown Products Corporation, the previous parent of the Group. No guarantees have
been given or received.
To support the activities of the joint venture, the Group and the other investors in the joint venture
Australian content
have agreed to make additional contributions in proportion to their interests to make up any losses,
if required (see Note 24).
IAS 1.114(c)(iv)(1), Purchase obligations in relation to recycled paper products arise from supply and service contracts
24.21
signed by the Group. During 2020, the Group entered into an €89 thousand supply agreement with
Cameron Paper Co. At 31 December 2020, the Group has used €25 thousand of its commitment
under the agreement.
Primary statements
NOTES
Appendices
Other information
Introduction
42. Subsequent events
IAS 10.21–22 A. Restructuring
At the end of January 2021, the Group announced its intention to implement a cost-reduction
programme and to take further measures to reduce costs. Additionally, to enable the Group
to adapt its size to current market conditions, it intends to reduce the Group’s workforce by
400 positions worldwide by the end of 2021, by means of non-replacement whenever possible.
The Group expects the restructuring associated with the reduction in positions to cost between
€600 thousand and €850 thousand in 2021 and 2022.
IAS 10.21–22 B. Others
Australian content
Subsequent to 31 December 2020, one of the Group’s major trade customers went into
liquidation following a natural disaster in February 2021 that damaged its operating plant. Of the
€100 thousand owed by the customer, the Group expects to recover less than €10 thousand. No
additional allowance for impairment has been made in these consolidated financial statements.
On 10 January 2021, one of the premises of Oy Kossu AG, having a carrying amount of
€220 thousand, was seriously damaged by fire. Surveyors are in the process of assessing the
extent of the loss, following which the Group will file a claim for reimbursement with the insurance
company. The Group is unable to estimate the incremental costs relating to refurbishment and
temporary shift of production to other locations (in excess of the reimbursement expected).
As explained in Note 28(B), the Group breached a financial loan covenant associated with a
bank loan in the third quarter of 2020. The Group obtained a waiver for the breach of covenant in
October 2020 for a period of 18 months. Subsequent to 31 December 2020, the bank revised the
Primary statements
loan covenant ratio and the waiver was lifted (see Note 37).
On 23 March 2021, an increase in the Netherlands corporate tax rate from 25 to 30% was
substantively enacted, effective from 1 January 2022. This increase does not affect the amounts
of current or deferred income taxes recognised at 31 December 2020. However, this change will
increase the Group’s future current tax charge accordingly. If the new tax rate were applied to
calculate taxable temporary differences and tax losses recognised as at 31 December 2020 the
effect would be that net deferred tax assets would increase by €27 thousand (see Note 14).
On 22 July 2020, the Group announced its intention to acquire all of the shares of ABC Company
for €6,500 thousand. On 4 January 2021, the Group’s shareholders approved the transaction
and the Group is now awaiting approval from regulatory authorities before proceeding with the
acquisition. Management anticipates that this approval will be received by April 2021.
NOTES
Appendices

Introduction
43. Basis of measurement

IAS 1.112(a), 117(a) The consolidated financial statements have been prepared on the historical cost basis except for
the following items, which are measured on an alternative basis on each reporting date.
Items Measurement bases
Derivative financial instruments Fair value

Non-derivative financial instruments at FVTPL Fair value
Debt and equity securities at FVOCI Fair value
Contingent consideration assumed in a Fair value
Australian content
business combination
Biological assets Fair value less costs to sell
Investment property Fair value
Liabilities for cash-settled shared-based Fair value
payment arrangements
Net defined benefit (asset) liability Fair value of plan assets less the present value
of the defined benefit obligation, limited as
explained in Note 45(E)(iv)
Primary statements
NOTES
Appendices
Accounting policies
Introduction
44. Correction of errorsa
IAS 8.49 During 2020, the Group discovered that maintenance expenses had been erroneously duplicated
in its financial statements since 2018. As a consequence, maintenance expenses and the related
liabilities have been overstated. The errors have been corrected by restating each of the affected
financial statement line items for prior periods. The following tables summarise the impacts on the
Group’s consolidated financial statements.
IAS 8.49 i. Consolidated statement of financial position
Impact of correction of error
1 January 2019 As previously
Australian content
In thousands of euro reported Adjustments As restated
Total assets 86,344 - 86,344

Trade and other payables (current) (28,335) 85 (28,250)
Deferred tax liabilities (295) (28) (323)
Others (28,209) - (28,209)
Total liabilities (56,839) 57 (56,782)
Retained earnings (8,440) (57) (8,497)
Others (21,065) - (21,065)
Total equity (29,505) (57) (29,562)
31 December 2019 As previously
Primary statements
Total assets 90,013 - 90,013
Trade and other payables (current) (21,424) 96 (21,328)
Deferred tax liabilities (374) (32) (406)
Others (32,913) - (32,913)
Total liabilities (54,711) 64 (54,647)
Retained earnings (13,722) (64) (13,786)
Others (21,580) - (21,580)
Total equity (35,302) (64) (35,366)
IAS 8.49 ii. Consolidated statement of profit or loss and OCI
Impact of correction of error
For the year ended 31 December 2019 As previously
Administrative expenses (14,439) 11 (14,428)

Income tax expense (2,456) (4) (2,460) NOTES
Others 22,862 - 22,862
Profit 5,967 7 5,974
Total comprehensive income 6,398 7 6,405
There is no material impact on the Group’s basic or diluted earnings per share and no impact on
the total operating, investing or financing cash flows for the year ended 31 December 2019.
Appendices
IAS 8.49 a. The Group has disclosed the nature of the prior-period error and the amount of the correction for each financial line
item affected as required by IAS 8.

Introduction
45. Significant accounting policiesa

IAS 1.112(a), 116, The Group has consistently applied the following accounting policies to all periods presented in
117(b), 119–121
these consolidated financial statements, except if mentioned otherwise (see also Note 5).
IFRS 5.34, IAS 1.41, Certain comparative amounts in the statement of profit or loss and OCI have been restated,
8.28
reclassified or re-presented, as a result of a correction of a prior-period error (see Note 44),
a change in the classification of certain depreciation expenses during the current year (see
Note 21(H)) or an operation discontinued during the current year (see Note 7).
Set out below is an index of the significant accounting policies, the details of which are available on
the pages that follow.
Australian content
A. Basis of consolidation 205

B. Foreign currency 206
C. Discontinued operation 207
D. Revenue from contracts with customers 207
E. Employee benefits 207
F. Government grants 209
G. Finance income and finance costs 209
H. Income tax 210
I. Biological assets 211
Primary statements
J. Inventories 211
K. Property, plant and equipment 211
L. Intangible assets and goodwill 212
M. Investment property 212
N. Assets held for sale 213
O. Financial instruments 213
P. Share capital 219
Q. Compound financial instruments 219
R. Impairment 220
S. Provisions 222
NOTES
T. Leases 222
U. Operating profit 224
V. Fair value measurement 224
a. The example accounting policies illustrated reflect the circumstances of the Group on which these financial
statements are based, by describing only the specific policies that are relevant to an understanding of the Group’s
Appendices
consolidated financial statements. For example, the accounting policy for preference shares (see Note 45(P)(ii)) is not
intended to be a complete description of the classification of such shares in general. These example accounting
policies should not be relied on for a complete understanding of IFRS Standards and should not be used as
a substitute for referring to the standards and interpretations themselves. To help you identify the underlying
requirements in IFRS Standards, references to the recognition and measurement requirements in IFRS Standards
that are relevant for a particular accounting policy have been included and indicated by square brackets – e.g.
[IFRS 3.19].
Accounting policies
Introduction
45. Significant accounting policies (continued)
A. Basis of consolidation
i. Business combinations
[IFRS 3.3–4, 32, 34, The Group accounts for business combinations using the acquisition method when the acquired
53, B5–B12]
set of activities and assets meets the definition of a business and control is transferred to the
Group (see (A)(ii)). In determining whether a particular set of activities and assets is a business,
the Group assesses whether the set of assets and activities acquired includes, at a minimum, an
input and substantive process and whether the acquired set has the ability to produce outputs.
The Group has an option to apply a ‘concentration test’ that permits a simplified assessment of
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whether an acquired set of activities and assets is not a business. The optional concentration
test is met if substantially all of the fair value of the gross assets acquired is concentrated in a
single identifiable asset or group of similar identifiable assets.
The consideration transferred in the acquisition is generally measured at fair value, as are the
identifiable net assets acquired. Any goodwill that arises is tested annually for impairment
(see (R)(ii)). Any gain on a bargain purchase is recognised in profit or loss immediately. Transaction
costs are expensed as incurred, except if related to the issue of debt or equity securities (see (P)).
[IFRS 3.B52] The consideration transferred does not include amounts related to the settlement of pre-existing
relationships. Such amounts are generally recognised in profit or loss.
[IFRS 3.40, 58] Any contingent consideration is measured at fair value at the date of acquisition. If an obligation
to pay contingent consideration that meets the definition of a financial instrument is classified
as equity, then it is not remeasured and settlement is accounted for within equity. Otherwise,
Primary statements
other contingent consideration is remeasured at fair value at each reporting date and subsequent
changes in the fair value of the contingent consideration are recognised in profit or loss.
[IFRS 3.30, B57–B61] If share-based payment awards (replacement awards) are required to be exchanged for awards
held by the acquiree’s employees (acquiree’s awards), then all or a portion of the amount of
the acquirer’s replacement awards is included in measuring the consideration transferred in
the business combination. This determination is based on the market-based measure of the
replacement awards compared with the market-based measure of the acquiree’s awards and the
extent to which the replacement awards relate to pre-combination service.
ii. Subsidiaries
[IFRS 10.6, 20] Subsidiaries are entities controlled by the Group. The Group ‘controls’ an entity when it is exposed
to, or has rights to, variable returns from its involvement with the entity and has the ability to
affect those returns through its power over the entity. The financial statements of subsidiaries are
included in the consolidated financial statements from the date on which control commences until
the date on which control ceases. NOTES
iii. Non-controlling interests

[IFRS 3.19] NCI are measured initially at their proportionate share of the acquiree’s identifiable net assets at
the date of acquisition.a
[IFRS 10.23, B96] Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted
for as equity transactions.
iv. Loss of control
[IFRS 10.25, B98–B99] When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the
subsidiary, and any related NCI and other components of equity. Any resulting gain or loss is
recognised in profit or loss. Any interest retained in the former subsidiary is measured at fair value
when control is lost.
Appendices
IFRS 3.19 a. An entity has a choice on a combination-by-combination basis to measure any NCI in the acquiree at either the
proportionate share of the acquiree’s identifiable net assets or fair value. The Group has elected the former approach.

Introduction

A. Basis of consolidation (continued)
v. Interests in equity-accounted investeesa
The Group’s interests in equity-accounted investees comprise interests in associates and a
joint venture.
[IFRS 11.15–16, Associates are those entities in which the Group has significant influence, but not control or joint
IAS 28.3]
control, over the financial and operating policies. A joint venture is an arrangement in which the
Group has joint control, whereby the Group has rights to the net assets of the arrangement, rather
than rights to its assets and obligations for its liabilities.
Australian content
[IAS 28.38–39] Interests in associates and the joint venture are accounted for using the equity method. They are
initially recognised at cost, which includes transaction costs. Subsequent to initial recognition, the
consolidated financial statements include the Group’s share of the profit or loss and OCI of equity-
accounted investees, until the date on which significant influence or joint control ceases.
vi. Transactions eliminated on consolidation
[IFRS 10.B86(c), Intra-group balances and transactions, and any unrealised income and expenses (except for
IAS 28.28]
foreign currency transaction gains or losses) arising from intra-group transactions, are eliminated.
Unrealised gains arising from transactions with equity-accounted investees are eliminated against
the investment to the extent of the Group’s interest in the investee.b Unrealised losses are
eliminated in the same way as unrealised gains, but only to the extent that there is no evidence
of impairment.
Primary statements
B. Foreign currency
i. Foreign currency transactions
[IAS 21.21] Transactions in foreign currencies are translated into the respective functional currencies of Group
companies at the exchange rates at the dates of the transactions.
[IAS 21.23] Monetary assets and liabilities denominated in foreign currencies are translated into the functional
currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are
measured at fair value in a foreign currency are translated into the functional currency at the
exchange rate when the fair value was determined. Non-monetary items that are measured
based on historical cost in a foreign currency are translated at the exchange rate at the date of the
transaction. Foreign currency differences are generally recognised in profit or loss and presented
within finance costs.c
[IFRS 9.B5.7.3] However, foreign currency differences arising from the translation of the following items are
recognised in OCI:
– an investment in equity securities designated as at FVOCI (except on impairment, in which case
NOTES
foreign currency differences that have been recognised in OCI are reclassified to profit or loss);
– a financial liability designated as a hedge of the net investment in a foreign operation to the
extent that the hedge is effective (see (O)(v)); and
– qualifying cash flow hedges to the extent that the hedges are effective.
Insights a. Although it is not illustrated, an entity’s equity-accounted investee may have accounting policies for items that do
5.10.140.150 not apply to the investor. In our view, this information should be included in the accounting policy note for equity-
accounted investees if it is necessary for an understanding of equity-accounted earnings or the carrying amount of
equity-accounted investees.
Insights 3.5.430.30 b. In the absence of specific guidance in IFRS Standards, the Group has elected to eliminate unrealised gains and
losses resulting from transactions with equity-accounted investees against the investment in the investees.
Appendices
Alternatively, the elimination may be presented as a reduction in the underlying asset – e.g. inventory.
Insights 2.7.160.20 c. In our experience, the most common practice is for all such exchange differences related to monetary items to be
included as part of finance costs. However, it is also acceptable to allocate the exchange differences to the various
line items affected. If exchange differences are allocated in this way, then this should be done consistently from
period to period having regard to the guidance in IAS 1 on offsetting, and in our view it would be necessary to
disclose the entity's allocation policy, if it is significant, in the financial statements.
Accounting policies
Introduction
B. Foreign currency (continued)
ii. Foreign operations
[IAS 21.39] The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising
on acquisition, are translated into euro at the exchange rates at the reporting date. The income and
expenses of foreign operations are translated into euro at the exchange rates at the dates of
the transactions.
[IFRS 10.B94, Foreign currency differences are recognised in OCI and accumulated in the translation reserve,
IAS 21.41]
except to the extent that the translation difference is allocated to NCI.
Australian content
[IAS 21.48–48D] When a foreign operation is disposed of in its entirety or partially such that control, significant
influence or joint control is lost, the cumulative amount in the translation reserve related to that
foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. If the Group
disposes of part of its interest in a subsidiary but retains control, then the relevant proportion of the
cumulative amount is reattributed to NCI. When the Group disposes of only part of an associate
or joint venture while retaining significant influence or joint control, the relevant proportion of the
cumulative amount is reclassified to profit or loss.
C. Discontinued operation
[IFRS 5.32] A discontinued operation is a component of the Group’s business, the operations and cash flows
of which can be clearly distinguished from the rest of the Group and which:
– represents a separate major line of business or geographic area of operations;
Primary statements
– is part of a single co-ordinated plan to dispose of a separate major line of business or geographic
area of operations; or
– is a subsidiary acquired exclusively with a view to resale.
Classification as a discontinued operation occurs at the earlier of disposal or when the operation
meets the criteria to be classified as held-for-sale.
IFRS 5.34 When an operation is classified as a discontinued operation, the comparative statement of profit
or loss and OCI is re-presented as if the operation had been discontinued from the start of the
comparative year.
D. Revenue from contracts with customersa

Information about the Group’s accounting policies relating to contracts with customers is provided
in Note 8(D).
E. Employee benefits
NOTES
i. Short-term employee benefits
[IAS 19.11] Short-term employee benefits are expensed as the related service is provided. A liability is
recognised for the amount expected to be paid if the Group has a present legal or constructive
obligation to pay this amount as a result of past service provided by the employee and the
obligation can be estimated reliably.
Appendices
IAS 1.117(b), 119 a. The Group presents significant accounting policies related to revenue from contracts with customers in the
‘revenue’ note, rather than in a separate note with other significant accounting policies. Other approaches to
presenting accounting policies may be acceptable.

Introduction

E. Employee benefits (continued)
ii. Share-based payment arrangements
[IFRS 2.14–15, The grant-date fair value of equity-settled share-based payment arrangements granted to
19–21, 21A]
employees is generally recognised as an expense, with a corresponding increase in equity, over
the vesting period of the awards. The amount recognised as an expense is adjusted to reflect
the number of awards for which the related service and non-market performance conditions
are expected to be met, such that the amount ultimately recognised is based on the number of
awards that meet the related service and non-market performance conditions at the vesting date.
For share-based payment awards with non-vesting conditions, the grant-date fair value of the
Australian content
share-based payment is measured to reflect such conditions and there is no true-up for differences
between expected and actual outcomes.
[IFRS 2.30, 32] The fair value of the amount payable to employees in respect of SARs, which are settled in cash,
is recognised as an expense with a corresponding increase in liabilities, over the period during
which the employees become unconditionally entitled to payment. The liability is remeasured at
each reporting date and at settlement date based on the fair value of the SARs. Any changes in
the liability are recognised in profit or loss.
iii. Defined contribution plans
[IAS 19.28, 51] Obligations for contributions to defined contribution plans are expensed as the related service is
provided. Prepaid contributions are recognised as an asset to the extent that a cash refund or a
reduction in future payments is available.
Primary statements
iv. Defined benefit plans

[IAS 19.57, 83] The Group’s net obligation in respect of defined benefit plans is calculated separately for each plan
by estimating the amount of future benefit that employees have earned in the current and prior
periods, discounting that amount and deducting the fair value of any plan assets.
[IAS 19.63–64, The calculation of defined benefit obligations is performed annually by a qualified actuary using
IFRIC 14.23–24]
the projected unit credit method. When the calculation results in a potential asset for the Group,
the recognised asset is limited to the present value of economic benefits available in the form
of any future refunds from the plan or reductions in future contributions to the plan. To calculate
the present value of economic benefits, consideration is given to any applicable minimum
funding requirements.
[IAS 19.122, 127–130] Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses,
the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding
interest), are recognised immediately in OCI. The Group determines the net interest expense
(income) on the net defined benefit liability (asset) for the period by applying the discount rate used
to measure the defined benefit obligation at the beginning of the annual period to the then-net
NOTES
defined benefit liability (asset), taking into account any changes in the net defined benefit liability
(asset) during the period as a result of contributions and benefit payments. Net interest expense
and other expenses related to defined benefit plans are recognised in profit or loss.
[IAS 19.103, 109–110] When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit
that relates to past service or the gain or loss on curtailment is recognised immediately in profit or
loss. The Group recognises gains and losses on the settlement of a defined benefit plan when the
settlement occurs.
v. Other long-term employee benefits
[IAS 19.155–156] The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit
that employees have earned in return for their service in the current and prior periods. That benefit is
discounted to determine its present value. Remeasurements are recognised in profit or loss in the
period in which they arise.
Appendices
vi. Termination benefits

[IAS 19.165] Termination benefits are expensed at the earlier of when the Group can no longer withdraw the
offer of those benefits and when the Group recognises costs for a restructuring. If benefits are not
expected to be settled wholly within 12 months of the reporting date, then they are discounted.
Accounting policies
Introduction
F. Government grantsa
IAS 20.39(a), [IAS 20.7, The Group recognises an unconditional government grant related to a biological asset in profit or loss
26, 41.34–35]
as other income when the grant becomes receivable. Other government grants related to assets
are initially recognised as deferred income at fair value if there is reasonable assurance that they will
be received and the Group will comply with the conditions associated with the grant; they are then
recognised in profit or loss as other income on a systematic basis over the useful life of the asset.
[IAS 20.12, 20, 29] Grants that compensate the Group for expenses incurred are recognised in profit or loss as other
income on a systematic basis in the periods in which the expenses are recognised, unless the
Australian content
conditions for receiving the grant are met after the related expenses have been recognised. In this
case, the grant is recognised when it becomes receivable.
G. Finance income and finance costsb

The Group’s finance income and finance costs include:
– interest income;
– interest expense;
– dividend income;
– dividend expense on preference shares issued classified as financial liabilities;
– the net gain or loss on the disposal of investments in debt securities measured at FVOCI;
– the net gain or loss on financial assets at FVTPL;
Primary statements
– the foreign currency gain or loss on financial assets and financial liabilities;
– impairment losses (and reversals) on investments in debt securities carried at amortised cost
or FVOCI;
– the gain on the remeasurement to fair value of any pre-existing interest in an acquiree in a
business combination;
– the fair value loss on contingent consideration classified as a financial liability;
– hedge ineffectiveness recognised in profit or loss; and
– the reclassification of net gains and losses previously recognised in OCI on cash flow hedges
of interest rate risk and foreign currency risk for borrowings (see Note 32(C)(iv)).
Interest income or expense is recognised using the effective interest method. Dividend income
is recognised in profit or loss on the date on which the Group’s right to receive payment is
established. NOTES
[IFRS 9.5.4.1–5.4.2, A] The ‘effective interest rate’ is the rate that exactly discounts estimated future cash payments
or receipts through the expected life of the financial instrument to:
– the gross carrying amount of the financial asset; or
– the amortised cost of the financial liability.
In calculating interest income and expense, the effective interest rate is applied to the gross
carrying amount of the asset (when the asset is not credit-impaired) or to the amortised cost of
the liability. However, for financial assets that have become credit-impaired subsequent to initial
recognition, interest income is calculated by applying the effective interest rate to the amortised
cost of the financial asset. If the asset is no longer credit-impaired, then the calculation of interest
income reverts to the gross basis.
Appendices
Insights 4.3.140.10 a. An entity chooses a presentation format, to be applied consistently, either to offset a grant related to income against
the related expenditure (net presentation) or to present it separately or under a general heading such as ‘other
income’ (gross presentation).
Insights 7.10.70.20 b. There is no guidance in IFRS Standards on what is included in finance income and finance costs and the Group has
disclosed as part of its accounting policy which items constitute finance income and finance costs.

Introduction

H. Income tax
[IAS 12.58] Income tax expense comprises current and deferred tax. It is recognised in profit or loss except
to the extent that it relates to a business combination, or items recognised directly in equity or
in OCI.
The Group has determined that interest and penalties related to income taxes, including uncertain
tax treatments, do not meet the definition of income taxes, and therefore accounted for them
under IAS 37 Provisions, Contingent Liabilities and Contingent Assets.a
i. Current tax
Australian content
[IAS 12.2, 12, 46, Current tax comprises the expected tax payable or receivable on the taxable income or loss for the
IFRIC 23.11]
year and any adjustment to the tax payable or receivable in respect of previous years. The amount
of current tax payable or receivable is the best estimate of the tax amount expected to be paid or
received that reflects uncertainty related to income taxes, if any. It is measured using tax rates
enacted or substantively enacted at the reporting date. Current tax also includes any tax arising
from dividends.
[IAS 12.71] Current tax assets and liabilities are offset only if certain criteria are met.
ii. Deferred tax
[IAS 12.15, 24, 39, 44] Deferred tax is recognised in respect of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for:
Primary statements
– temporary differences on the initial recognition of assets or liabilities in a transaction that is not
a business combination and that affects neither accounting nor taxable profit or loss;
– temporary differences related to investments in subsidiaries, associates and joint arrangements
to the extent that the Group is able to control the timing of the reversal of the temporary
differences and it is probable that they will not reverse in the foreseeable future; and
– taxable temporary differences arising on the initial recognition of goodwill.
[IAS 12.56] Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible
temporary differences to the extent that it is probable that future taxable profits will be available
against which they can be used. Future taxable profits are determined based on the reversal
of relevant taxable temporary differences. If the amount of taxable temporary differences is
insufficient to recognise a deferred tax asset in full, then future taxable profits, adjusted for
reversals of existing temporary differences, are considered, based on the business plans for
individual subsidiaries in the Group. Deferred tax assets are reviewed at each reporting date and
are reduced to the extent that it is no longer probable that the related tax benefit will be realised;
NOTES
such reductions are reversed when the probability of future taxable profits improves.
[IAS 12.37] Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the
extent that it has become probable that future taxable profits will be available against which they
can be used.
[IAS 12.47, IFRIC 23.11] Deferred tax is measured at the tax rates that are expected to be applied to temporary differences
when they reverse, using tax rates enacted or substantively enacted at the reporting date, and
reflects uncertainty related to income taxes, if any.
Appendices
Insights 3.13.45.10 a. Interest and penalties related to income taxes are not explicitly included in the scope of IAS 12. The IFRS
Interpretations Committee discussed the accounting for interest and penalties related to income taxes and noted
that an entity first considers whether interest or a penalty itself is an income tax. If so, then it applies IAS 12. If the
entity does not apply IAS 12, then it applies IAS 37 to that amount. The Committee also noted that this is not an
accounting policy choice – i.e. an entity needs to apply judgement based on the specific facts and circumstances.
Accounting policies
Introduction
H. Income tax (continued)
ii. Deferred tax (continued)
[IAS 12.51, 51C] The measurement of deferred tax reflects the tax consequences that would follow from the
manner in which the Group expects, at the reporting date, to recover or settle the carrying
amount of its assets and liabilities. For this purpose, the carrying amount of investment property
measured at fair value is presumed to be recovered through sale, and the Group has not rebutted
this presumption.
[IAS 12.74] Deferred tax assets and liabilities are offset only if certain criteria are met.
Australian content
I. Biological assets
[IAS 41.12–13] Biological assets are measured at fair value less costs to sell, with any change therein recognised
in profit or loss.
J. Inventories
[IAS 2.9, 25], Inventories are measured at the lower of cost and net realisable value. The cost of inventories is
IAS 2.36(a)
based on the first-in, first-out principle. In the case of manufactured inventories, cost includes an
appropriate share of production overheads based on normal operating capacity.
[IAS 2.20] The cost of standing timber transferred from biological assets is its fair value less costs to sell at
the date of harvest.
K. Property, plant and equipment
Primary statements
i. Recognition and measurement
[IFRS 1.D5, IAS 16.30], Items of property, plant and equipment are measured at cost, which includes capitalised
IAS 16.73(a)
borrowing costs, less accumulated depreciation and any accumulated impairment losses. The cost
of certain items of property, plant and equipment at 1 January 2005, the Group’s date of transition
to the Standards, was determined with reference to its fair value at that date.a
[IAS 16.45] If significant parts of an item of property, plant and equipment have different useful lives, then
they are accounted for as separate items (major components) of property, plant and equipment.
[IAS 16.41, 71] Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit
or loss.
ii. Subsequent expenditure
[IAS 16.13] Subsequent expenditure is capitalised only if it is probable that the future economic benefits
associated with the expenditure will flow to the Group.
iii. Depreciation NOTES
[IAS 16.53, 58, 60], Depreciation is calculated to write off the cost of items of property, plant and equipment less their
IAS 16.73(b)
estimated residual values using the straight-line method over their estimated useful lives, and is
generally recognised in profit or loss. Land is not depreciated.
IAS 16.73(c) The estimated useful lives of property, plant and equipment for current and comparative periods
are as follows:
– buildings: 40 years
– plant and equipment: 3–12 years
– fixtures and fittings: 5–10 years.
[IAS 16.51] Depreciation methods, useful lives and residual values are reviewed at each reporting date and
adjusted if appropriate.
Appendices
a. The Group was previously a first-time adopter of IFRS Standards. It has included the accounting policy for the
determination of the cost of property, plant and equipment at the date of transition to IFRS Standards because it
regards this information as relevant to an understanding of its financial statements.

Introduction

K. Property, plant and equipment (continued)
iv. Reclassification to investment property
[IAS 40.62] When the use of a property changes from owner-occupied to investment property, the property is
remeasured to fair value and reclassified accordingly. Any gain arising on this remeasurement is
recognised in profit or loss to the extent that it reverses a previous impairment loss on the specific
property, with any remaining gain recognised in OCI and presented in the revaluation reserve.
Any loss is recognised in profit or loss. However, to the extent that an amount is included in the
revaluation surplus for that property, the loss is recognised in OCI and reduces the revaluation
surplus within equity.
Australian content
L. Intangible assets and goodwill

i. Recognition and measurement
[IAS 38.107–108] Goodwill Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated
impairment losses.
[IAS 38.54–55] Research and Expenditure on research activities is recognised in profit or loss as incurred.
development
[IAS 38.57, 66, 71, 74] Development expenditure is capitalised only if the expenditure can be measured
reliably, the product or process is technically and commercially feasible, future economic
benefits are probable and the Group intends to and has sufficient resources to complete
development and to use or sell the asset. Otherwise, it is recognised in profit or loss as
incurred. Subsequent to initial recognition, development expenditure is measured at cost
less accumulated amortisation and any accumulated impairment losses.
[IAS 38.74] Other intangible Other intangible assets, including customer relationships, patents and trademarks, that are
Primary statements
assets acquired by the Group and have finite useful lives are measured at cost less accumulated
amortisation and any accumulated impairment losses.
ii. Subsequent expenditure

[IAS 38.18] Subsequent expenditure is capitalised only when it increases the future economic benefits
embodied in the specific asset to which it relates. All other expenditure, including expenditure
on internally generated goodwill and brands, is recognised in profit or loss as incurred.
iii. Amortisation
[IAS 38.97], Amortisation is calculated to write off the cost of intangible assets less their estimated residual
IAS 38.118(a)–(b)
values using the straight-line method over their estimated useful lives, and is generally recognised
in profit or loss. Goodwill is not amortised.
The estimated useful lives for current and comparative periods are as follows:
– patents and trademarks: 3–20 years
– development costs: 2–5 years
NOTES
– customer relationships: 4–5 years.

[IAS 38.104] Amortisation methods, useful lives and residual values are reviewed at each reporting date and
adjusted if appropriate.
M. Investment property
[IAS 40.7, 33, 35] Investment property is initially measured at cost and subsequently at fair value with any change
therein recognised in profit or loss.
[IAS 16.41, 71] Any gain or loss on disposal of investment property (calculated as the difference between the net
proceeds from disposal and the carrying amount of the item) is recognised in profit or loss. When
investment property that was previously classified as property, plant and equipment is sold, any
related amount included in the revaluation reserve (see (K)(iv)) is transferred to retained earnings.
Appendices
Accounting policies
Introduction
M. Investment property (continued)
Rental income from investment property is recognised as other revenue on a straight-line basis over
the term of the lease. Lease incentives granted are recognised as an integral part of the total rental
income, over the term of the lease.
N. Assets held for sale
[IFRS 5.6] Non-current assets, or disposal groups comprising assets and liabilities, are classified as held-for-
sale if it is highly probable that they will be recovered primarily through sale rather than through
continuing use.
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[IFRS 5.15–15A, Such assets, or disposal groups, are generally measured at the lower of their carrying amount
18–23]
and fair value less costs to sell. Any impairment loss on a disposal group is allocated first to
goodwill, and then to the remaining assets and liabilities on a pro rata basis, except that no loss is
allocated to inventories, financial assets, deferred tax assets, employee benefit assets, investment
property or biological assets, which continue to be measured in accordance with the Group’s
other accounting policies. Impairment losses on initial classification as held-for-sale or held-for-
distribution and subsequent gains and losses on remeasurement are recognised in profit or loss.
[IFRS 5.25, IAS 28.20] Once classified as held-for-sale, intangible assets and property, plant and equipment are no longer
amortised or depreciated, and any equity-accounted investee is no longer equity accounted.
IFRS 7.21 O. Financial instruments

i. Recognition and initial measurement
Primary statements
[IFRS 9.3.1.1] Trade receivables and debt securities issued are initially recognised when they are originated.
All other financial assets and financial liabilities are initially recognised when the Group becomes
a party to the contractual provisions of the instrument.
[IFRS 9.5.1.1, 5.1.3, A financial asset (unless it is a trade receivable without a significant financing component)
15.D]
or financial liability is initially measured at fair value plus or minus, for an item not at FVTPL,
transaction costs that are directly attributable to its acquisition or issue. A trade receivable without
a significant financing component is initially measured at the transaction price.
ii. Classification and subsequent measurement
Financial assets
[IFRS 9.4.1.1] On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI – debt
investment; FVOCI – equity investment; or FVTPL.
[IFRS 9.4.4.1, 5.6.1] Financial assets are not reclassified subsequent to their initial recognition unless the Group
changes its business model for managing financial assets, in which case all affected financial NOTES
assets are reclassified on the first day of the first reporting period following the change in the
business model.
Appendices

Introduction

IFRS 7.21 O. Financial instruments (continued)
ii. Classification and subsequent measurement (continued)
Financial assets
[IFRS 9.4.1.2] A financial asset is measured at amortised cost if it meets both of the following conditions and
is not designated as at FVTPL:
– it is held within a business model whose objective is to hold assets to collect contractual cash
flows; and
– its contractual terms give rise on specified dates to cash flows that are solely payments of
Australian content
principal and interest on the principal amount outstanding.

[IFRS 9.4.1.2A] A debt investment is measured at FVOCI if it meets both of the following conditions and is not
designated as at FVTPL:
– it is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling financial assets; and
– its contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
[IFRS 9.4.1.4, 5.7.5] On initial recognition of an equity investment that is not held for trading, the Group may irrevocably
elect to present subsequent changes in the investment’s fair value in OCI. This election is made on
an investment-by-investment basis.
Primary statements
[IFRS 9.4.1.5] All financial assets not classified as measured at amortised cost or FVOCI as described above
are measured at FVTPL. This includes all derivative financial assets (see Note 32(A)). On initial
recognition, the Group may irrevocably designate a financial asset that otherwise meets the
requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates
or significantly reduces an accounting mismatch that would otherwise arise.
Financial assets – Business model assessment
[IFRS 9.B4.1.2] The Group makes an assessment of the objective of the business model in which a financial
asset is held at a portfolio levela because this best reflects the way the business is managed and
information is provided to management. The information considered includes:
[IFRS 9.B4.1.2B– – the stated policies and objectives for the portfolio and the operation of those policies in practice.
B4.1.2C, B4.1.4A,
B4.1.5]
These include whether management’s strategy focuses on earning contractual interest income,
maintaining a particular interest rate profile, matching the duration of the financial assets to the
duration of any related liabilities or expected cash outflows or realising cash flows through the
sale of the assets;
NOTES
– how the performance of the portfolio is evaluated and reported to the Group’s management;
– the risks that affect the performance of the business model (and the financial assets held within
that business model) and how those risks are managed;
– how managers of the business are compensated – e.g. whether compensation is based on the
fair value of the assets managed or the contractual cash flows collected; and
– the frequency, volume and timing of sales of financial assets in prior periods, the reasons for
such sales and expectations about future sales activity.
Appendices
IFRS 9.B4.1.1– a. The objective of the entity’s business model is not based on management’s intentions with respect to an individual
B4.1.2, instrument, but rather is determined at a higher level of aggregation. The assessment needs to reflect the way that
Insights 7.4.70.30 an entity manages its business or businesses. A single reporting entity may have more than one business model for
managing its financial instruments.
Accounting policies
Introduction
Financial assets – Business model assessment
Transfers of financial assets to third parties in transactions that do not qualify for derecognition are
not considered sales for this purpose, consistent with the Group’s continuing recognition of the
assets.a
[IFRS 9.B4.1.6] Financial assets that are held for trading or are managed and whose performance is evaluated on a
fair value basis are measured at FVTPL.
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Financial assets – Assessment whether contractual cash flows are solely payments of
principal and interest
[IFRS 9.4.1.3, For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on
B4.1.7A–B4.1.7B,
B4.1.9A–B4.1.9E]
initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit
risk associated with the principal amount outstanding during a particular period of time and for other
basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin.
In assessing whether the contractual cash flows are solely payments of principal and interest,
the Group considers the contractual terms of the instrument. This includes assessing whether
the financial asset contains a contractual term that could change the timing or amount of
contractual cash flows such that it would not meet this condition. In making this assessment,
the Group considers:
Primary statements
– contingent events that would change the amount or timing of cash flows;
– terms that may adjust the contractual coupon rate, including variable-rate features;
– prepayment and extension features; and
– terms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse
features).
[IFRS 9.B4.1.11(b), A prepayment feature is consistent with the solely payments of principal and interest criterion
B4.1.12]
if the prepayment amount substantially represents unpaid amounts of principal and interest
on the principal amount outstanding, which may include reasonable compensation for early
termination of the contract. Additionally, for a financial asset acquired at a discount or premium
to its contractual par amount, a feature that permits or requires prepayment at an amount that
substantially represents the contractual par amount plus accrued (but unpaid) contractual interest
(which may also include reasonable compensation for early termination) is treated as consistent
with this criterion if the fair value of the prepayment feature is insignificant at initial recognition.
NOTES
Appendices
Insights 7.4.110.15 a IFRS 9 does not provide specific guidance for business model assessment related to portfolios of financial assets for
which the entity’s objectives include transfers of financial assets to third parties in transactions that do not qualify for
derecognition. In our view, whether such a portfolio is considered consistent with a held-to-collect business model
depends on the circumstances.

Introduction

IFRS 7.B5(e) Financial assets – Subsequent measurement and gains and losses
[IFRS 9.5.7.1] Financial assets at These assets are subsequently measured at fair value. Net gains and losses, including
FVTPL any interest or dividend income, are recognised in profit or loss. However, see
Note 45(O)(v) for derivatives designated as hedging instruments.
[IFRS 9.5.7.2] Financial assets at These assets are subsequently measured at amortised cost using the effective interest
amortised cost method. The amortised cost is reduced by impairment losses. Interest income, foreign
exchange gains and losses and impairment are recognised in profit or loss. Any gain or
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loss on derecognition is recognised in profit or loss.

[IFRS 9.5.7.10–5.7.11] Debt investments at These assets are subsequently measured at fair value. Interest income calculated
FVOCI using the effective interest method, foreign exchange gains and losses and impairment
are recognised in profit or loss. Other net gains and losses are recognised in OCI. On
derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.
[IFRS 9.5.7.5–5.7.6, Equity investments at These assets are subsequently measured at fair value. Dividends are recognised as
B5.7.1] FVOCI income in profit or loss unless the dividend clearly represents a recovery of part of the
cost of the investment. Other net gains and losses are recognised in OCI and are never
reclassified to profit or loss.
Financial liabilities – Classification, subsequent measurement and gains and losses

[IFRS 9.5.7.1] Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is
classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as
Primary statements
such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and
losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are
subsequently measured at amortised cost using the effective interest method. Interest expense and
foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition
is also recognised in profit or loss.
See Note 45(O)(v) for financial liabilities designated as hedging instruments.
iii. Derecognition
Financial assets
[IFRS 9.3.2.3–3.2.6] The Group derecognises a financial asset when:
– the contractual rights to the cash flows from the financial asset expire; or
– it transfers the rights to receive the contractual cash flows in a transaction in which either:
- substantially all of the risks and rewards of ownership of the financial asset are transferred; or
NOTES
- the Group neither transfers nor retains substantially all of the risks and rewards of ownership
and it does not retain control of the financial asset.
[IFRS 9.3.2.6(b)] The Group enters into transactions whereby it transfers assets recognised in its statement of
financial position, but retains either all or substantially all of the risks and rewards of the transferred
assets. In these cases, the transferred assets are not derecognised.
[IFRS 9.3.3.1–3.3.2] The Group derecognises a financial liability when its contractual obligations are discharged or
cancelled, or expire. The Group also derecognises a financial liability when its terms are modified
and the cash flows of the modified liability are substantially different, in which case a new financial
liability based on the modified terms is recognised at fair value.
[IFRS 9.3.3.3] On derecognition of a financial liability, the difference between the carrying amount extinguished
Appendices
and the consideration paid (including any non-cash assets transferred or liabilities assumed) is
recognised in profit or loss.
Accounting policies
Introduction
iv. Offsetting
[IAS 32.42] Financial assets and financial liabilities are offset and the net amount presented in the statement
of financial position when, and only when, the Group currently has a legally enforceable right to set
off the amounts and it intends either to settle them on a net basis or to realise the asset and settle
the liability simultaneously.
v. Derivative financial instruments and hedge accounting
Derivative financial instruments and hedge accounting
Australian content
[IFRS 9.4.3.3] The Group holds derivative financial instruments to hedge its foreign currency and interest rate
risk exposures. Embedded derivatives are separated from the host contract and accounted for
separately if the host contract is not a financial asset and certain criteria are met.
[IFRS 9.5.1.1, 5.2.1(c)] Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are
measured at fair value, and changes therein are generally recognised in profit or loss.
The Group designates certain derivatives as hedging instruments to hedge the variability in
cash flows associated with highly probable forecast transactions arising from changes in foreign
exchange rates and interest rates and certain derivatives and non-derivative financial liabilities as
hedges of foreign exchange risk on a net investment in a foreign operation.
[IFRS 9.6.4.1(a), At inception of designated hedging relationships, the Group documents the risk management
6.4.1(c)]
objective and strategy for undertaking the hedge. The Group also documents the economic relationship
Primary statements
between the hedged item and the hedging instrument, including whether the changes in cash flows
of the hedged item and hedging instrument are expected to offset each other.
Hedges directly affected by interest rate benchmark reform
IFRS 9.6.8.6 For the purpose of evaluating whether there is an economic relationship between the hedged
item(s) and the hedging instrument(s), the Group assumes that the benchmark interest rate is
not altered as a result of interest rate benchmark reform.
IFRS 9.6.8.4–6.8.5 For a cash flow hedge of a forecast transaction, the Group assumes that the benchmark interest
rate will not be altered as a result of interest rate benchmark reform for the purpose of assessing
whether the forecast transaction is highly probable and presents an exposure to variations in cash
flows that could ultimately affect profit or loss. In determining whether a previously designated
forecast transaction in a discontinued cash flow hedge is still expected to occur, the Group assumes
that the interest rate benchmark cash flows designated as a hedge will not be altered as a result of
interest rate benchmark reform.
NOTES
IFRS 9.6.8.9–6.8.11 The Group will cease to apply the specific policy for assessing the economic relationship between
the hedged item and the hedging instrument (i) to a hedged item or hedging instrument when the
uncertainty arising from interest rate benchmark reform is no longer present with respect to the
timing and the amount of the interest rate benchmark-based cash flows of the respective item or
instrument or (ii) when the hedging relationship is discontinued. For its highly probable assessment
of the hedged item, the Group will no longer apply the specific policy when the uncertainty
arising from interest rate benchmark reform about the timing and the amount of the interest rate
benchmark-based future cash flows of the hedged item is no longer present, or when the hedging
relationship is discontinued.
Appendices

Introduction

v. Derivative financial instruments and hedge accounting (continued)
Cash flow hedges
[IFRS 9.6.5.11, 6.5.16] When a derivative is designated as a cash flow hedging instrument, the effective portion of
changes in the fair value of the derivative is recognised in OCI and accumulated in the hedging
reserve. The effective portion of changes in the fair value of the derivative that is recognised in
OCI is limited to the cumulative change in fair value of the hedged item, determined on a present
value basis, from inception of the hedge. Any ineffective portion of changes in the fair value of
Australian content
the derivative is recognised immediately in profit or loss.
The Group designates only the change in fair value of the spot element of forward exchange
contracts as the hedging instrument in cash flow hedging relationships. The change in fair value
of the forward element of forward exchange contracts (forward points) is separately accounted
for as a cost of hedging and recognised in a costs of hedging reserve within equity.
When the hedged forecast transaction subsequently results in the recognition of a non-financial
item such as inventory, the amount accumulated in the hedging reserve and the cost of hedging
reserve is included directly in the initial cost of the non-financial item when it is recognised.
For all other hedged forecast transactions, the amount accumulated in the hedging reserve and
the cost of hedging reserve is reclassified to profit or loss in the same period or periods during
which the hedged expected future cash flows affect profit or loss.
Primary statements
[IFRS 9.6.5.6–6.5.7, If the hedge no longer meets the criteria for hedge accounting or the hedging instrument is
6.5.12]
sold, expires, is terminated or is exercised, then hedge accounting is discontinued prospectively.
When hedge accounting for cash flow hedges is discontinued, the amount that has been
accumulated in the hedging reserve remains in equity until, for a hedge of a transaction resulting
in the recognition of a non-financial item, it is included in the non-financial item’s cost on its initial
recognition or, for other cash flow hedges, it is reclassified to profit or loss in the same period or
periods as the hedged expected future cash flows affect profit or loss.
If the hedged future cash flows are no longer expected to occur, then the amounts that have been
accumulated in the hedging reserve and the cost of hedging reserve are immediately reclassified
to profit or loss.
Net investment hedges

[IFRS 9.6.5.13–6.5.14] When a derivative instrument or a non-derivative financial liability is designated as the hedging
instrument in a hedge of a net investment in a foreign operation, the effective portion of changes
in the fair value of a derivative or foreign exchange gains and losses for a non-derivative is
recognised in OCI and presented in the translation reserve within equity. Any ineffective portion
NOTES
of the changes in the fair value of the derivative or foreign exchange gains and losses on the
non-derivative is recognised immediately in profit or loss. The amount recognised in OCI is fully or
partially reclassified to profit or loss as a reclassification adjustment on disposal or partial disposal
of the foreign operation, respectively.
Appendices
Accounting policies
Introduction
P. Share capital
i. Ordinary shares
[IAS 32.35–35A] Incremental costs directly attributable to the issue of ordinary shares are recognised as a
deduction from equity. Income tax relating to transaction costs of an equity transaction is
accounted for in accordance with IAS 12 (see 45(H)).
ii. Preference shares
[IAS 32.AG25–AG26] The Group’s redeemable preference shares are classified as financial liabilities, because they
bear non-discretionary dividends and are redeemable in cash by the holders. Non-discretionary
Australian content
dividends thereon are recognised as interest expense in profit or loss as accrued.
Non-redeemable preference shares are classified as equity, because they bear discretionary
dividends, do not contain any obligations to deliver cash or other financial assets and do not require
settlement in a variable number of the Group’s equity instruments. Discretionary dividends thereon
are recognised as equity distributions on approval by the Company’s shareholders.
iii. Repurchase and reissue of ordinary shares (treasury shares)
[IAS 32.33] When shares recognised as equity are repurchased, the amount of the consideration paid, which
includes directly attributable costs, is recognised as a deduction from equity. Repurchased shares
are classified as treasury shares and are presented in the treasury share reserve. When treasury
shares are sold or reissued subsequently, the amount received is recognised as an increase in
equity and the resulting surplus or deficit on the transaction is presented within share premium.
Primary statements
Q. Compound financial instruments
[IAS 32.28–32] Compound financial instruments issued by the Group comprise convertible notes denominated
in euro that can be converted to ordinary shares at the option of the holder, when the number of
shares to be issued is fixed and does not vary with changes in fair value.
[IAS 32.38, AG31, The liability component of compound financial instruments is initially recognised at the fair value of
IFRS 9.5.1.1]
a similar liability that does not have an equity conversion option. The equity component is initially
recognised at the difference between the fair value of the compound financial instrument as a
whole and the fair value of the liability component. Any directly attributable transaction costs are
allocated to the liability and equity components in proportion to their initial carrying amounts.
[IFRS 9.5.3.1] Subsequent to initial recognition, the liability component of a compound financial instrument
is measured at amortised cost using the effective interest method. The equity component of a
compound financial instrument is not remeasured.
[IAS 32.AG32] Interest related to the financial liability is recognised in profit or loss. On conversion at maturity,
the financial liability is reclassified to equity and no gain or loss is recognised. NOTES
Appendices

Introduction

R. Impairment
i. Non-derivative financial assets
Financial instruments and contract assets
[IFRS 9.2, 9.5.5.1, The Group recognises loss allowances for ECLs on:
IFRS 16.77]
– financial assets measured at amortised cost;
– debt investments measured at FVOCI; and
– contract assets.
Australian content
The Group also recognises loss allowances for ECLs on lease receivables, which are disclosed as
part of trade and other receivables.
[IFRS 9.5.5.3, 5.5.5, The Group measures loss allowances at an amount equal to lifetime ECLs, except for the
5.5.11, 5.5.15–5.5.16]
following, which are measured at 12-month ECLs:
– debt securities that are determined to have low credit risk at the reporting date; and
– other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the
expected life of the financial instrument) has not increased significantly since initial recognition.
Loss allowances for trade receivables (including lease receivables) and contract assets are always
measured at an amount equal to lifetime ECLs.a
When determining whether the credit risk of a financial asset has increased significantly since
Primary statements
initial recognition and when estimating ECLs, the Group considers reasonable and supportable
information that is relevant and available without undue cost or effort. This includes both
quantitative and qualitative information and analysis, based on the Group’s historical experience
and informed credit assessment, that includes forward-looking information.
The Group assumes that the credit risk on a financial asset has increased significantly if it is more
than 30 days past due.
IFRS 7.35F(b), B8A The Group considers a financial asset to be in default when:
– the debtor is unlikely to pay its credit obligations to the Group in full, without recourse by the
Group to actions such as realising security (if any is held); or
– the financial asset is more than 90 days past due.
IFRS 7.35F(a)(i), The Group considers a debt security to have low credit risk when its credit risk rating is equivalent
[IFRS 9.5.5.10,
B5.5.22–B5.5.24, A]
to the globally understood definition of ‘investment grade’. The Group considers this to be Baa3 or
higher per [Rating Agency X] or BBB- or higher per [Rating Agency Y].
NOTES
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a
financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the
12 months after the reporting date (or a shorter period if the expected life of the instrument is less
than 12 months).
[IFRS 9.5.5.19, The maximum period considered when estimating ECLs is the maximum contractual period over
B5.5.38]
which the Group is exposed to credit risk.
[IFRS 9.5.5.17, A, Measurement of ECLs
B5.5.28–B5.5.30,
B5.5.33] ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the
present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in
accordance with the contract and the cash flows that the Group expects to receive).
Appendices
ECLs are discounted at the effective interest rate of the financial asset.
IFRS 9.5.15 a. For lease receivables, contract assets and trade receivables with a significant financing component, an entity can
choose as an accounting policy either to apply the general model for measuring the loss allowance or always to
measure the loss allowance at an amount equal to the lifetime ECLs. The Group has chosen the latter policy.
Accounting policies
Introduction
R. Impairment (continued)
i. Non-derivative financial assets (continued)
IFRS 7.35F(d), Credit-impaired financial assets
35G(a)(iii), [IFRS 9.A]
At each reporting date, the Group assesses whether financial assets carried at amortised cost
and debt securities at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one
or more events that have a detrimental impact on the estimated future cash flows of the financial
asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
Australian content
– significant financial difficulty of the debtor;
– a breach of contract such as a default or being more than 90 days past due;
– the restructuring of a loan or advance by the Group on terms that the Group would not consider
otherwise;
– it is probable that the debtor will enter bankruptcy or other financial reorganisation; or
– the disappearance of an active market for a security because of financial difficulties.
[IFRS 9.5.5.1–5.5.2] Presentation of allowance for ECL in the statement of financial position
Loss allowances for financial assets measured at amortised cost are deducted from the gross
carrying amount of the assets.
Primary statements
For debt securities at FVOCI, the loss allowance is charged to profit or loss and is recognised in OCI.
Write-off
IFRS 7.35F(e), The gross carrying amount of a financial asset is written off when the Group has no reasonable
[IFRS 9.5.4.4]
expectations of recovering a financial asset in its entirety or a portion thereof. For individual
customers, the Group has a policy of writing off the gross carrying amount when the financial asset
is 180 days past due based on historical experience of recoveries of similar assets. For corporate
customers, the Group individually makes an assessment with respect to the timing and amount
of write-off based on whether there is a reasonable expectation of recovery. The Group expects no
significant recovery from the amount written off. However, financial assets that are written off could
still be subject to enforcement activities in order to comply with the Group’s procedures for recovery
of amounts due.
ii. Non-financial assets
[IAS 36.9–10, 59] At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other
than biological assets, investment property, inventories, contract assets and deferred tax assets) NOTES
to determine whether there is any indication of impairment. If any such indication exists, then the
asset’s recoverable amount is estimated. Goodwill is tested annually for impairment.
[IAS 36.22, 80] For impairment testing, assets are grouped together into the smallest group of assets that
generates cash inflows from continuing use that are largely independent of the cash inflows
of other assets or CGUs. Goodwill arising from a business combination is allocated to CGUs or
groups of CGUs that are expected to benefit from the synergies of the combination.
[IAS 36.6, 30] The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less
costs of disposal. Value in use is based on the estimated future cash flows, discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset or CGU.
[IAS 36.59] An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable
Appendices
amount.
[IAS 36.104] Impairment losses are recognised in profit or loss. They are allocated first to reduce the carrying
amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the
other assets in the CGU on a pro rata basis.

Introduction

R. Impairment (continued)
ii. Non-financial assets (continued)
[IAS 36.117, 122, 124] An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is
reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount
that would have been determined, net of depreciation or amortisation, if no impairment loss had
been recognised.
S. Provisions
[IAS 37.14, 45, 47, Provisions are determined by discounting the expected future cash flows at a pre-tax rate that
Australian content
IFRIC 1.8]
reflects current market assessments of the time value of money and the risks specific to the
liability. The unwinding of the discount is recognised as finance cost.
[IAS 37.39] Warranties A provision for warranties is recognised when the underlying products or services are
sold, based on historical warranty data and a weighting of possible outcomes against
their associated probabilities.
[IAS 37.72] Restructuring A provision for restructuring is recognised when the Group has approved a detailed
and formal restructuring plan, and the restructuring either has commenced or has been
announced publicly. Future operating losses are not provided for.
[IAS 37.21] Site restoration In accordance with the Group’s published environmental policy and applicable legal
requirements, a provision for site restoration in respect of contaminated land, and the
related expense, is recognised when the land is contaminated.
Onerous contracts A provision for onerous contracts is measured at the present value of the lower of the
Primary statements
[IAS 37.66, 68]

expected cost of terminating the contract and the expected net cost of continuing with
the contract, which is determined based on incremental costs necessary to fulfil the
obligation under the contract. Before a provision is established, the Group recognises
any impairment loss on the assets associated with that contract (see (R)(ii)).
T. Leases
[IFRS 16.9] At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract
is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration.
i. As a lessee
[IFRS 16.15, 45] At commencement or on modification of a contract that contains a lease component, the Group
allocates the consideration in the contract to each lease component on the basis of its relative stand-
alone prices. However, for the leases of property the Group has elected not to separate non-lease
components and account for the lease and non-lease components as a single lease component.
NOTES
Appendices
Accounting policies
Introduction
T. Leases (continued)
i. As a lessee (continued)
[IFRS 16.22–24] The Group recognises a right-of-use asset and a lease liability at the lease commencement date.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or before the commencement date, plus any initial
direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to
restore the underlying asset or the site on which it is located, less any lease incentives received.
[IFRS 16.29–33] The right-of-use asset is subsequently depreciated using the straight-line method from the
Australian content
commencement date to the end of the lease term, unless the lease transfers ownership of the
underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset
reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be
depreciated over the useful life of the underlying asset, which is determined on the same basis
as those of property and equipment. In addition, the right-of-use asset is periodically reduced by
impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
[IFRS 16.26] The lease liability is initially measured at the present value of the lease payments that are not paid
at the commencement date, discounted using the interest rate implicit in the lease or, if that rate
cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses
its incremental borrowing rate as the discount rate.
IAS 1.112(c) The Group determines its incremental borrowing rate by obtaining interest rates from various
external financing sources and makes certain adjustments to reflect the terms of the lease and
Primary statements
type of the asset leased.
[IFRS 16.27] Lease payments included in the measurement of the lease liability comprise the following:
– fixed payments, including in-substance fixed payments;
– variable lease payments that depend on an index or a rate, initially measured using the index or
rate as at the commencement date;
– amounts expected to be payable under a residual value guarantee; and
– the exercise price under a purchase option that the Group is reasonably certain to exercise,
lease payments in an optional renewal period if the Group is reasonably certain to exercise an
extension option, and penalties for early termination of a lease unless the Group is reasonably
certain not to terminate early.
[IFRS 16.36, 40, 42] The lease liability is measured at amortised cost using the effective interest method. It is
remeasured when there is a change in future lease payments arising from a change in an index
or rate, if there is a change in the Group’s estimate of the amount expected to be payable under NOTES
a residual value guarantee, if the Group changes its assessment of whether it will exercise a
purchase, extension or termination option or if there is a revised in-substance fixed lease payment.
[IFRS 16.39] When the lease liability is remeasured in this way, a corresponding adjustment is made to the
carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of
the right-of-use asset has been reduced to zero.
[IFRS 16.47–48] The Group presents right-of-use assets that do not meet the definition of investment property in
‘property, plant and equipment’ and lease liabilities in ‘loans and borrowings’ in the statement of
financial position.
Short-term leases and leases of low-value assets
IFRS 16.60, The Group has elected not to recognise right-of-use assets and lease liabilities for leases of
[IFRS 16.5–6, 8,
Appendices
B3–B8, BC100]
low-value assets and short-term leases, including IT equipment. The Group recognises the lease
payments associated with these leases as an expense on a straight-line basis over the lease term.

Introduction

T. Leases (continued)
ii. As a lessor
[IFRS 16.17] At inception or on modification of a contract that contains a lease component, the Group allocates
the consideration in the contract to each lease component on the basis of their relative stand-
alone prices.
[IFRS 16.61–62] When the Group acts as a lessor, it determines at lease inception whether each lease is a finance
lease or an operating lease.
[IFRS 16.63] To classify each lease, the Group makes an overall assessment of whether the lease transfers
Australian content
substantially all of the risks and rewards incidental to ownership of the underlying asset. If this
is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this
assessment, the Group considers certain indicators such as whether the lease is for the major part
of the economic life of the asset.
[IFRS 16.B58] When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-
lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use
asset arising from the head lease, not with reference to the underlying asset. If a head lease is a
short-term lease to which the Group applies the exemption described above, then it classifies the
sub-lease as an operating lease.
[IFRS 16.17] If an arrangement contains lease and non-lease components, then the Group applies IFRS 15 to
allocate the consideration in the contract.
Primary statements
[IFRS 16.77] The Group applies the derecognition and impairment requirements in IFRS 9 to the net investment
in the lease (see Note 45(R)(i)). The Group further regularly reviews estimated unguaranteed
residual values used in calculating the gross investment in the lease.
[IFRS 16.81] The Group recognises lease payments received under operating leases as income on a straight-
line basis over the lease term as part of ‘other revenue’.
U. Operating profit
Operating profit is the result generated from the continuing principal revenue-producing activities
of the Group as well as other income and expenses related to operating activities. Operating profit
excludes net finance costs, share of profit of equity-accounted investees and income taxes.
V. Fair value measurement
[IFRS 13.9, 24, 42] ‘Fair value’ is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date in the principal or, in its
absence, the most advantageous market to which the Group has access at that date. The fair value
NOTES
of a liability reflects its non-performance risk.

IFRS 13.93(g) A number of the Group’s accounting policies and disclosures require the measurement of fair
values, for both financial and non-financial assets and liabilities (see Note 4(B)(i)).
[IFRS 13.77, 79, A] When one is available, the Group measures the fair value of an instrument using the quoted price
in an active market for that instrument. A market is regarded as ‘active’ if transactions for the asset
or liability take place with sufficient frequency and volume to provide pricing information on an
ongoing basis.
[IFRS 13.61–62] If there is no quoted price in an active market, then the Group uses valuation techniques that maximise
the use of relevant observable inputs and minimise the use of unobservable inputs. The chosen
valuation technique incorporates all of the factors that market participants would take into account
in pricing a transaction.
Appendices
[IFRS 13.70–71] If an asset or a liability measured at fair value has a bid price and an ask price, then the Group
measures assets and long positions at a bid price and liabilities and short positions at an ask price.
Accounting policies
Introduction
V. Fair value measurement (continued)
IFRS 7.28(a) The best evidence of the fair value of a financial instrument on initial recognition is normally the
transaction price – i.e. the fair value of the consideration given or received. If the Group determines
that the fair value on initial recognition differs from the transaction price and the fair value is
evidenced neither by a quoted price in an active market for an identical asset or liability nor based
on a valuation technique for which any unobservable inputs are judged to be insignificant in relation
to the measurement, then the financial instrument is initially measured at fair value, adjusted
to defer the difference between the fair value on initial recognition and the transaction price.
Subsequently, that difference is recognised in profit or loss on an appropriate basis over the life of
Australian content
the instrument but no later than when the valuation is wholly supported by observable market data
or the transaction is closed out.
Primary statements
NOTES
Appendices

Introduction
46. Standards issued but not yet effectivea

IAS 8.30–31 A number of new standards are effective for annual periods beginning after 1 January 2020 and
earlier application is permitted; however, the Group has not early adopted the new or amended
standards in preparing these consolidated financial statements.
A. Onerous contracts – Cost of Fulfilling a Contract (Amendments to IAS 37)
The amendments specify which costs an entity includes in determining the cost of fulfilling a
contract for the purpose of assessing whether the contract is onerous. The amendments apply
for annual reporting periods beginning on or after 1 January 2022 to contracts existing at the date
when the amendments are first applied. At the date of initial application, the cumulative effect of
applying the amendments is recognised as an opening balance adjustment to retained earnings
Australian content
or other components of equity, as appropriate. The comparatives are not restated. The Group
has determined that all contracts existing at 31 December 2020 will be completed before the
amendments become effective.
B. Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS 9, IAS 39,
IFRS 7, IFRS 4 and IFRS 16)
The amendments address issues that might affect financial reporting as a result of the reform of
an interest rate benchmark, including the effects of changes to contractual cash flows or hedging
relationships arising from the replacement of an interest rate benchmark with an alternative
benchmark rate. The amendments provide practical relief from certain requirements in IFRS 9,
IAS 39, IFRS 7, IFRS 4 and IFRS 16 relating to:
– changes in the basis for determining contractual cash flows of financial assets, financial
liabilities and lease liabilities; and
Primary statements
– hedge accounting.
i. Change in basis for determining cash flows
The amendments will require an entity to account for a change in the basis for determining the
contractual cash flows of a financial asset or financial liability that is required by interest rate
benchmark reform by updating the effective interest rate of the financial asset or financial liability.
At 31 December 2020, the Group has €1,500 thousand sterling LIBOR secured bank loans that will
be subject to IBOR reform. The Group expects that the interest rate benchmark for these loans will
be changed to SONIA in 2021 and that no significant modification gain or loss will arise as a result
of applying the amendments to these changes.
ii. Hedge accounting
The amendments provide exceptions to the hedge accounting requirements in the following
areas.
NOTES
– Allow amendment of the designation of a hedging relationship to reflect changes that are
required by the reform.
– When a hedged item in a cash flow hedge is amended to reflect the changes that are required
by the reform, the amount accumulated in the cash flow hedge reserve will be deemed to be
based on the alternative benchmark rate on which the hedged future cash flows are determined.
– When a group of items is designated as a hedged item and an item in the group is amended
to reflect the changes that are required by the reform, the hedged items are allocated to sub-
groups based on the benchmark rates being hedged.
– If an entity reasonably expects that an alternative benchmark rate will be separately identifiable
within a period of 24 months, it is not prohibited from designating the rate as a non-contractually
specified risk component if it is not separately identifiable at the designation date.
Appendices
AASB 1054.17 a. When an IFRS Standard has been issued by the IASB Board but the equivalent Australian Accounting Standard
has yet to be issued by the AASB, an entity intending to comply with IFRS Standards discloses the information
specified in paragraphs 30 and 31 of AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors
in relation to that IFRS Standard.
Accounting policies
Introduction
46. Standards issued but not yet effective (continued)
B. Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS 9, IAS 39,
IFRS 7, IFRS 4 and IFRS 16) (continued)
ii. Hedge accounting (continued)
At 31 December 2020, the Group has cash flow hedges of sterling LIBOR risk. The Group expects
that indexation of the hedged items and hedging instruments to sterling LIBOR will be replaced
with SONIA in 2021 (see Note 32(C)(iv)). Whenever the replacement occurs, the Group expects
to apply the amendments related to hedge accounting. However, there is uncertainty about when
and how replacement may occur. When the change occurs to the hedged item or the hedging
Australian content
instrument, the Group will remeasure the cumulative change in fair value of the hedged item or
the fair value of the interest rate swap, respectively, based on SONIA. Hedging relationships may
experience hedge ineffectiveness if there is a timing or other mismatch between the transition
of the hedged item and that of the hedging instrument to SONIA. The Group does not expect that
amounts accumulated in the cash flow hedge reserve will be immediately reclassified to profit or
loss because of IBOR transition.
iii. Disclosure
The amendments will require the Group to disclose additional information about the
entity’s exposure to risks arising from interest rate benchmark reform and related risk
management activities.
iv. Transition
The Group plans to apply the amendments from 1 January 2021. Application will not impact
Primary statements
amounts reported for 2020 or prior periods.
C. Other standardsa
The following new and amended standards are not expected to have a significant impact on the
Group’s consolidated financial statements.
– COVID-19-Related Rent Concessions (Amendment to IFRS 16).b
– Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16).
– Reference to Conceptual Framework (Amendments to IFRS 3).
– Classification of Liabilities as Current or Non-current (Amendments to IAS 1).
– IFRS 17 Insurance Contracts and amendments to IFRS 17 Insurance Contracts.
NOTES
Appendices
a. Although new or amended standards that will have no or no material effect on the financial statements need not
be provided, the Group has included all new or amended standards and their possible impact on the consolidated
financial statements for illustrative purposes only.
b. See our COVID-19 supplement – Guide to annual financial statements for illustrative disclosures of early adoption of
this amendment.
Appendix I
Introduction
New standards or amendments for 2020-21 and

forthcoming requirements
Since the November 2019 edition of this guide, a number of standards, amendments to or
interpretations of standards have been issued in relation to preparing general purpose financial
statements – Tier 1. This appendix lists these new requirements that have been issued by the IASB
Board and AASB as at 31 August 2020, and it contains two tables, as follows.
– New currently effective requirements: This table lists the recent changes to the Standards that are
required to be adopted in annual periods beginning on 1 January 2020 and annual periods beginning
Australian content
on 1 July 2020.
– Forthcoming requirements: This table lists the recent changes to the Standards that are required
to be applied for annual periods beginning after 1 January 2020 and annual periods beginning on
1 July 2020 and that are available for early adoption in annual periods beginning on 1 January 2020
and annual periods beginning on 1 July 2020 and annual periods beginning on 1 July 2020.
The tables also include a cross-reference to further KPMG guidance, as appropriate. All of the effective
dates in the tables refer to the beginning of an annual accounting period.
New currently effective requirements

Effective date New standards or amendments KPMG guidance
For annual periods beginning 1 January 2020 and annual periods beginning on 1 July 2020
Primary statements
Amendments to References to Conceptual Framework

Web article
in IFRS Standards
Insights into IFRS

Definition of Material (Amendments to IAS 1 and IAS 8)
(1.2.40.10), web article
1 January 2020 Insights into IFRS

Definition of a Business (Amendments to IFRS 3)
(2.6.20), web article
Interest Rate Benchmark Reform (Amendments to Insights into IFRS

IFRS 9, IAS 39 and IFRS 7) (7.9.1172, 7.10.455,
7.11.220.30, 229 and
230.15), web article
Disclosure of the Effect of New IFRS Standards Not Yet

19RU-017
Issued in Australia (Amendments to AASB 1054)
Notes
APPENDICES
Appendix I 229
New standards or amendments for 2020 and forthcoming requirements
Forthcoming requirements
Introduction
Effective date New standards or amendments KPMG guidance
COVID-19-Related Rent Concessions (Amendment to Web article, handbook

1 June 2020
IFRS 16) chapter
Insights into IFRS

Interest Rate Benchmark Reform – Phase 2 (7.9.1280, 7.6.510, 7.7.560,
1 January 2021 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and 7.10.770, 7.11.280, 8.1.300
IFRS 16) and 5.1.780.20),
web article
Onerous Contracts – Cost of Fulfilling a Contract Insights into IFRS

(Amendments to IAS 37) (3.12.635), web article
Australian content
Insights into IFRS
Annual Improvements to IFRS Standards 2018–2020 (2.4.795, 3.9.35, 6.1.1295,
7.6.415), web article
Property, Plant and Equipment: Proceeds before Insights into IFRS

Intended Use (Amendments to IAS 16) (3.2.125), web article
1 January 2022 Reference to the Conceptual Framework
N/A
(Amendments to IFRS 3)
Sale or Contribution of Assets between an Investor

and its Associate or Joint Venture (Amendments to Web article
IFRS 10 and IAS 28)
Primary statements
Insights into IFRS
Classification of Liabilities as Current or Non-current
(2.9.45, 3.1.47, 7.10.55),
(Amendments to IAS 1)
web article
1 January 2023
Insights into IFRS
IFRS 17 Insurance Contractsa and amendments to
(Chapter 8.1A), web
IFRS 17 Insurance Contracts
article, First Impressions
Notes
APPENDICES
a. Early application of IFRS 17 is permitted only for companies that also apply IFRS 9 Financial Instruments.
Appendix I
Introduction
Presentation of comprehensive income –

Two‑statement approach
Consolidated income statement a

Australian content
IAS 1.10(b), 10A, 29, Note 2020 2019

IAS 1.82(a) Revenue 8 102,860 96,719
IAS 1.99, 103 Cost of sales 9(C) (55,432) (56,186)
IAS 1.103 Gross profit 47,428 40,533
IAS 1.99, 103 Selling and distribution expenses 9(C) (18,322) (15,865)
IAS 1.99, 103 Administrative expenses 9(C) (17,732) (14,428)
IAS 1.99, 103, 38.126 Research and development expenses 9(C) (1,109) (697)
Impairment loss on trade receivables and contract assets 31(C)(ii) (200) (190)
Primary statements

IAS 1.82(b) Finance costs (1,883) (1,635)
IFRS 5.33A,
IAS 1.82(ea) Profit (loss) from discontinued operation, net of tax 7 379 (422)
IAS 1.81B(a)(ii) Owners of the Company 7,055 5,623
Notes
7,552 5,974
IAS 33.4A Earnings per share
IAS 33.66, 67A Basic earnings per share (euro) 11 2.15 1.69
IAS 33.66, 67A Diluted earnings per share (euro) 11 2.04 1.68
Earnings per share – Continuing operations
IAS 33.66, 67A Basic earnings per share (euro) 11 2.02 1.83
IAS 33.66, 67A Diluted earnings per share (euro) 11 1.92 1.82
Adjusted earnings before interest, tax, depreciation and
amortisation (adjusted EBITDA) 15 15,744 16,782
APPENDICES
information has also been re‑presented due to a discontinued operation and a change in classification. See
Notes 7 and 21(H) respectively.
IAS 1.10A a. This appendix illustrates the two-statement approach to the presentation of comprehensive income, consisting of an
income statement displaying profit or loss, and a separate statement displaying the components of OCI.
Appendix II 231
Presentation of comprehensive income – Two‑statement approach
Introduction
other comprehensive income
Note 2020 2019
IAS 1.10A Profit for the period 7,552 5,974

IAS 1.82A(a)(i) Items that will not be reclassified to profit or loss
IAS 1.85 Revaluation of property, plant and equipment 21(F) 200 -
IAS 1.85 Remeasurements of the defined benefit liability (asset) 13(B) 72 (15)
Australian content
IFRS 7.20(a)(vii) Equity investments at FVOCI – net change in fair value 26(D) 141 59
IAS 1.82A(b)(i) Equity-accounted investees – share of OCI 24, 26(D) 15 (3)
IAS 1.91(b) Related tax 14(B) (137) (14)
291 27
IAS 1.82A(a)(ii) Items that are or may be reclassified subsequently to
profit or loss
IAS 1.82A(b)(ii) Equity-accounted investees – share of OCI 24, 26(D) (172) (166)
IFRS 7.24C(b)(i) Cash flow hedges – effective portion of changes in fair value 26(D) (62) 95
Primary statements
IFRS 7.24C(b)(iv),
IAS 1.92 Cash flow hedges – reclassified to profit or loss 26(D) (31) (12)
IAS 1.92 Cost of hedging reserve – reclassified to profit or loss 26(D) 8 2
IFRS 7.20(a)(viii),
IAS 1.92 Debt investments at FVOCI – reclassified to profit or loss 26(D) (64) -
IAS 1.91(b) Related tax 14(B) 19 (48)
442 404
8,285 6,405 Notes
information has also been re‑presented due to a discontinued operation and a change in classification.
See Notes 7 and 21(H) respectively.
APPENDICES
Appendix I I
Introduction
Statement of cash flows – Direct method

IAS 1.10(d), 29,
38–38A, 113 Consolidated statement of cash flows
Australian content
IAS 7.18(a) Cash flows from operating activities

Cash receipts from customers 94,352 96,534
Cash paid to suppliers and employees (90,439) (93,025)
IAS 7.31–32 Interest paid (1,609) (1,289)
IAS 7.35 Income taxes paid (400) (1,913)
IAS 7.31 Interest received 6 19
IAS 7.31 Dividends received 26 32
IAS 7.16(b) Proceeds from sale of property, plant and equipment 3,085 397
IAS 7.16(d), (h) Proceeds from sale of investments 1,476 534
Primary statements
IAS 7.39 Disposal of discontinued operation, net of cash disposed of 7 10,890 -

IAS 7.39 Acquisition of subsidiary, net of cash acquired 34 (1,799) -
IAS 7.16(a) Acquisition of property, plant and equipment (15,657) (2,228)
IAS 7.16(a) Acquisition of investment property 23(A) (300) (40)
IAS 7.16(a) Purchase of non-current biological assets 16(A) (305) (835)
IAS 7.16(c), (g) Acquisition of other investments (359) (342)
IAS 24.18 Dividends from equity-accounted investees 24(A) 21 -
IAS 7.16(a) Development expenditure 22(A), (D) (1,235) (503)
Receipt of government grant 30 - 1,462
IAS 7.10 Net cash used in investing activities (4,151) (1,504)
IAS 7.17(a) Proceeds from issue of share capital 26(A) 1,550 -
IAS 7.17(c) Proceeds from issue of convertible notes 28(C) 5,000 -
IAS 7.17(c) Proceeds from issue of redeemable preference shares 28(D) 2,000 -
IAS 7.17(c) Proceeds from loans and borrowings 591 4,439
Notes
IAS 7.17(a) Proceeds from sale of treasury shares 30 -

IAS 7.17(a) Proceeds from exercise of share options 26(A) 50 -
IAS 7.16(h) Proceeds from settlement of derivatives 5 11
IAS 7.21 Transaction costs related to loans and borrowings 28(C)–(D) (311) -
IAS 7.42A Acquisition of NCI 36 (200) -
IAS 7.17(b) Repurchase of treasury shares - (280)
IAS 7.17(d) Repayment of borrowings (5,055) (2,445)
IAS 7.17(e) Payment of lease liabilities (554) (590)
IAS 7.31, 34 Dividends paid 26(C) (1,243) (571)
IAS 7.10 Net cash from financing activities 1,863 564
Cash and cash equivalents at 1 January* 1,567 2,226
APPENDICES
Cash and cash equivalents at 31 December* 19 1,170 1,567
IAS 7.45 * Cash and cash equivalents includes bank overdrafts that are repayable on demand and form an integral part of
Appendix IV 233
Other disclosures not illustrated in the consolidated financial statements
Appendix IV
Introduction
Other disclosures not il ustrated in the consolidated
financial statements
Going concern matters
Extracts of notes to the consolidated financial statements
Australian content
2. Basis of accounting
X. Going concern basis of accountinga, b
IAS 1.25–26, 122 The consolidated financial statements have been prepared on a going concern basis, which
assumes that the Group will be able to discharge its liabilities including the mandatory repayment
terms of the banking facilities as disclosed in Note 31(C).
The Group has recognised a net profit after tax of €7,937 thousand for the year ended 31 December
2020 and, as at that date, current assets exceed current liabilities by €22,046 thousand. However, as
described in Note X, significant one-off environmental costs are expected in 2021, reflecting various
regulatory developments in a number of European countries.
In addition to the above, fully drawn banking facilities of €7,012 thousand are subject to review by
Primary statements
30 June 2021. The lenders are expected to undertake a review, which will include (but is not limited
to) an assessment of:
– the financial performance of the Group against budget; and
– the progress of compliance with new regulatory requirements.
Management believes that the repayment of the facilities will be met out of operating cash
flows and the immediate and significant mitigating actions taken by management to reduce
costs and optimise the Group’s cash flow and liquidity. Among these are the following mitigating
actions: reducing capital and investment expenditure through postponing or pausing projects and
change activity; deferring or cancelling discretionary spend; freezing non-essential recruitment;
and reducing marketing spend. Management anticipates that any additional cash flow needs
will be met out of asset sales. Management is confident that the asset sales will be finalised
before 30 June 2021 as disclosed in Note 20 and that the proceeds will be sufficient to meet any
additional cash flow needs.
Notes
Based on these factors, management has a reasonable expectation that the Group has and will
have adequate resources to continue in operational existence for the foreseeable future.
4. Use of judgements and estimates

A. Judgements
IAS 1.122 Information about judgements made in applying accounting policies that have the most significant
effects on the amounts recognised in the financial statements is included in the following notes:
IAS 1.122, IU 07-14, – Note 2(X) – going concern: whether there are material uncertainties that may cast significant
Insights 1.2.80.10
doubt on the entity’s ability to continue as a going concern […]
a. This appendix illustrates one possible example of disclosures in a close-call scenario. Additional illustrative examples
APPENDICES
of going concern disclosures are provided in our COVID-19 supplement.

IAS 1.122, b. In some cases, management may conclude that there are no material uncertainties that require disclosure in
Insights 1.2.80.10 accordance with paragraph 25 of IAS 1. However, reaching that conclusion involved significant judgement (i.e.
a ‘close-call’ scenario). In these cases, a question arises about whether any disclosures are required. The IFRS
Interpretations Committee discussed this issue and noted that the disclosure requirements in paragraph 122 of
IAS 1 apply to the judgements made in concluding that there are no material uncertainties related to events or
conditions that may cast significant doubt on the entity’s ability to continue as a going concern.
Distributions of non-cash assets to owners

Introduction

X. Distribution of wholly owned subsidiary to owners of the
Companya, b, c
IFRIC 17.16(a) On 15 May 2020, the board of directors of the Company announced that the Group would distribute
all of its shares in Papier GmbH, a wholly owned subsidiary within the Recycled Papers segment, to
the Company’s shareholders. On authorisation of the distribution, the Group recognised a dividend
payable of €12,500 thousand, being the fair value of the assets to be distributed.
On 3 June 2020, the shares were distributed. The net assets comprised assets of €17,408 thousand
less liabilities of €7,464 thousand as follows.
Australian content
In thousands of euro 2020
Property, plant and equipment 9,650

Investment property 100
Intangible assets 400
Deferred tax assets 225
Inventories 2,900
Trade and other receivables 4,133
Loans and borrowings (3,064)
Provisions (200)
Deferred tax liabilities (450)
Trade and other payables (3,750)
Primary statements
Carrying amount of net assets distributed 9,944

Dividend to shareholders 12,500
Carrying amount of net assets distributed (9,944)
Gain on distribution to owners of the Company 2,556c
IFRIC 17.16(b) There was no change in the fair value of the assets to be distributed between the date on which
the distribution was approved and the date on which the dividend was settled.
Notes
a. This appendix illustrates the disclosures that may be necessary to provide information about distributions of non-
cash assets to owners and/or non-current assets (or disposal groups) that are held for distribution (or distributed)
to owners.
IFRS 5.5A, b. It is not clear whether a business that will be disposed of by distribution to owners could be classified as a
APPENDICES
Insights 5.4.130.30 discontinued operation before its disposal. Although IFRS 5 was amended to extend the requirements in respect
of non-current assets or disposal groups held for sale to such items held for distribution to owners, the cross-
referencing in the amendments does not extend to discontinued operations. In our view, although the definition of a
discontinued operation has not been extended explicitly, classification of non-current assets or disposal groups held
for distribution to owners as a discontinued operation is appropriate if the remaining criteria of IFRS 5 are met.
IFRIC 17.14 c. The difference between the dividend paid/payable and the carrying amount of the assets distributed is presented
as a separate line item in profit or loss.
Appendix IV 235
Government-related entities under IAS 24
Introduction
41. Related partiesa
Example 1 – Individually significant transaction because of size of transaction
In 2017, a subsidiary entity, Griffin Limited, entered into a procurement agreement with the
Department of Commerce of the Government of [Country X], such that Griffin Limited would act
as the sole supplier of recycled paper products to the Department’s various agencies for a term of
three years from 2019 to 2021, with an agreed bulk discount of 10% compared with the list prices
that Griffin Limited would generally charge on individual orders.
The aggregate sales value under the agreement for the year ended 31 December 2020 amounted
Australian content
to €3,500 thousand (2019: €2,800 thousand). As at 31 December 2020, the aggregate amounts
due from the Department amounted to €10 thousand (2019: €30 thousand) and were payable
under normal 30 days’ credit terms.
Example 2 – Individually significant transaction carried out on ‘non-market’
terms
On 30 December 2019, the Department of Finance of the Government of [Country X] contracted
Griffin Limited to be the sole designer and supplier of materials for office fit-outs for all of
Government. The contract lasts for a term of five years from 2020 to 2024. Under the agreement,
the Department of Finance will reimburse Griffin Limited for the cost of each fit-out. However,
Griffin Limited will not be entitled to earn a margin above cost for this activity. The aggregate sales
value under the agreement for the year ended 31 December 2020 amounted to €3,500 thousand.
As at 31 December 2020, the aggregate amounts due from the Department amounted to
Primary statements
€1,000 thousand and were payable under normal 30 days’ credit terms.
Example 3 – Individually significant transaction outside normal day-to-day
business operations
Under an agreement dated 1 January 2020, Griffin Limited and the Department of Trade and
Enterprise of the Government of [Country X] agreed to participate and co-operate with a third party
consortium in the development, funding and operation of a research and development centre.
Griffin Limited will also sub-lease a floor in its headquarters building as an administrative office
for the joint operation. As at 31 December 2020, the capital invested in the venture amounted to
€700 thousand and total lease payments of €100 thousand were received as rental income.
Example 4 – Individually significant transaction subject to shareholder approval
Griffin Limited currently owns 40% of Galaxy Corp, with the remaining 60% owned by the
Department of Commerce of the Government of [Country X] (25%) and Lex Corp (35%), a party
indirectly controlled by the Department of Commerce.
Notes
On 1 December 2020, Griffin Limited entered into a sale-and-purchase agreement (the Agreement)
with the Department of Commerce and Lex Corp, such that Griffin Limited will buy their shares
in Galaxy Corp at €1 per share, at a total consideration of €6,000 thousand. The terms of the
Agreement are subject to independent shareholders’ approval at the extraordinary general meeting
to be held on 1 February 2020. On completion of the proposed acquisition, Galaxy Corp will become
a wholly owned subsidiary of Griffin Limited.
APPENDICES
a. This appendix illustrates a variety of disclosures that an entity may make under paragraph 26 of IAS 24; other
formats are possible. We assume that the Group is indirectly controlled by the government of [Country X]. We also
assume that, in addition to selling to various private sector entities, products are sold to government agencies and
departments of [Country X].

Introduction
(continued)
IAS 24.26 Example 5 – Collectively, but not individually, significant transactions
Griffin Limited operates in an economic regime dominated by entities directly or indirectly
controlled by the Government of [Country X] through its government authorities, agencies,
affiliations and other organisations, collectively referred to as government-related entities. Griffin
Limited has transactions with other government-related entities, including but not limited to sales
and purchases of goods and ancillary materials, rendering and receiving services, lease of assets,
and use of public utilities.
Australian content
These transactions are conducted in the ordinary course of Griffin Limited’s business on terms
comparable to those with other entities that are not government-related. Griffin Limited has
established procurement policies, a pricing strategy and an approval process for purchases
and sales of products and services, which are independent of whether the counterparties are
government-related entities.
For the year ended 31 December 2020, management estimates that the aggregate amount of Griffin
Limited’s significant transactions with other government-related entities is at least 50% of its sales
of recycled paper products and between 30 and 40% of its purchase of materials.
Primary statements
Notes
APPENDICES
Appendix IV 237
Entities with a service concession arrangement
Introduction
X. Service concession arrangementa, b
SIC-29.6 On 1 July 2020, the Group entered into a service concession agreement with a local township
(the grantor) to construct a toll road near one of the Group’s forestry operations. The construction
of the toll road started in July 2020 and it was completed and available for use on 30 September
2020. Under the terms of the agreement, the Group will operate and make the toll road available
to the public for a period of five years, starting from 1 October 2020. The Group will be responsible
for any maintenance services required during the concession period. The Group does not expect
major repairs to be necessary during the concession period.
Australian content
SIC-29.6(c)(iv) The grantor will provide the Group a guaranteed minimum annual payment for each year that
the toll road is in operation. Additionally, the Group has received the right to charge users a fee
for using the toll road, which the Group will collect and retain; however, this fee is capped to a
maximum amount as stated in the service concession agreement. The usage fees collected
and earned by the Group are over and above the guaranteed minimum annual payment to
be received from the grantor. At the end of the concession period, the toll road will become
the property of the grantor and the Group will have no further involvement in its operation or
maintenance requirements.
SIC-29.6(c)(v) The service concession agreement does not contain a renewal option. The rights of the grantor
to terminate the agreement include poor performance by the Group and in the event of a material
breach in the terms of the agreement. The rights of the Group to terminate the agreement include
failure of the grantor to make payment under the agreement, a material breach in the terms of
Primary statements
the agreement and any changes in law that would render it impossible for the Group to fulfil its
requirements under the agreement.
SIC-29.6(e), 6A For the year ended 31 December 2020, the Group has recognised revenue of €350 thousand,
consisting of €320 thousand on construction and €30 thousand on operation of the toll road,
which is the amount of tolls collected. The Group has recognised profit of €20 thousand,
consisting of a profit of €25 thousand on construction and a loss of €5 thousand on operation of
the toll road. The revenue recognised in relation to construction in 2020 represents the fair value
of the construction services provided in constructing the toll road. The Group has recognised a
service concession receivable, initially measured at the fair value of the construction services,
of €260 thousand representing the present value of the guaranteed annual minimum payments
to be received from the grantor, discounted at a rate of 5%, of which €11 thousand represents
accrued interest.
The Group has recognised an intangible asset received as consideration for providing construction
or upgrade services in a service concession arrangement of €95 thousand, of which €5 thousand
has been amortised in 2020. The intangible asset represents the right to charge users a fee for use Notes
of the toll road.c
APPENDICES
a. This appendix illustrates one possible format for the disclosure of a service concession arrangement to help in
the preparation of consolidated financial statements. Other presentation formats are possible.
SIC-29.7 b. Disclosures about the nature and extent of service concession arrangements are provided individually for each
service concession arrangement or in aggregate for each class of service concession arrangement.
c. The disclosure requirements in IFRS 13 do not apply to assets and liabilities that are not measured at fair value
after initial recognition.

Introduction
(continued)
45. Significant accounting policies
D. Revenue
x. Service concession arrangements
[IFRIC 12.13] Revenue related to construction or upgrade services under a service concession arrangement
is recognised over time, consistent with the Group’s accounting policy on recognising revenue
on construction contracts. Operation or service revenue is recognised in the period in which the
services are provided by the Group. If the service concession arrangement contains more than one
performance obligation, then the consideration received is allocated with reference to the relative
Australian content
stand-alone selling prices of the services delivered.

L. Intangible assets and goodwill
x. Service concession arrangements
[IFRIC 12.17] The Group recognises an intangible asset arising from a service concession arrangement when
it has a right to charge for use of the concession infrastructure. An intangible asset received as
consideration for providing construction or upgrade services in a service concession arrangement
is measured at fair value on initial recognition with reference to the fair value of the services
provided. Subsequent to initial recognition, the intangible asset is measured at cost, which includes
capitalised borrowing costs, less accumulated amortisation and accumulated impairment losses.
The estimated useful life of an intangible asset in a service concession arrangement is the period
from when the Group is able to charge the public for the use of the infrastructure to the end of the
Primary statements
concession period.
O. Financial instruments
x. Non-derivative financial assets – Service concession arrangements
The Group recognises a financial asset arising from a service concession arrangement when it
has an unconditional contractual right to receive cash from or at the direction of the grantor for
the construction or upgrade services provided, and the right to receive cash depends only on
the passage of time. Such financial assets are measured at fair value on initial recognition and
classified as financial assets measured at amortised cost.
If the Group is paid for the construction services partly by a financial asset and partly by an
intangible asset, then each component of the consideration is accounted for separately and is
initially recognised at the fair value of the consideration (see also (L)(x)).
Notes
APPENDICES
Acknowledgements | 239
Acknowledgements
Introduction
We would like to acknowledge the principal contributors to and reviewers of
this guide, who include:
Anushree Agrawal
Jessica Cheong
Roanne Hasegawa
Irina Ipatova
Seung Hoon Lee
Julie Locke
Ingo Rahe
Agnieszka Sekita
Australian content
Sinead Slattery
Chris Spall
Ivy Tsoi
Guy Zmora
Primary statements
Notes
APPENDICES
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References and abbreviations 4

Notes to the consolidated financial statements 40

ASX additional information 50

Voluntary tax disclosures – Part A 53

Guide to annual financial statements 56

Consolidated statement of profit or loss, and

Consolidated statement of changes in equity 64

Consolidated statement of cash flows 66

Notes to the consolidated financial statements 68

II Presentation of comprehensive income –

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IV Other disclosures not illustrated in the

Keeping in touch 240

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Australian Accounting Standards

Amendments to Australian Accounting Standards - References to Conceptual Framework1

Definition of Material (Amendments to AASB 101 and AASB 108)

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References and abbreviations

IAS 1.82(a) Paragraph 82(a) of IAS 1.

Insights into IFRS.

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Major changes since the 2019-20 edition of this guide.

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Corporations Instruments (Instrument) and Class Orders (CO)

IU IFRS Interpretations Committee publication IFRIC Update

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Consolidated statement of changes in equity 36

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Notes to the consolidated financial statements 40

3. Functional and presentation currency 40

26. Capital and reserves 41

47. Reconciliation of cash flows from

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49. Deed of cross guarantee 44

50. Parent entity disclosures 47

ASX additional information 50

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Annual Financial Report

S153-S155 ABN 14 004 152 682

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IV Other disclosures not illustrated in the

47. Reconciliation of cash flows from

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