YMCA E-Store Annual Report 2017 by ymcaestore

YMCA E-STORE

ANNUAL REPORT 2017

“YMCA Australia would like to sincerely thank YMCA E-Store for its significant support of the launch of our first national brand campaign “Why Not” in June 2017, which reintroduced the YMCA to Australia as a youth focused organisation. E-Store provided both financial support, and also produced campaign marketing and merchandise collateral for the Movement, and the general public. The campaign went global, and had a social media audience of over 82 million. We also grew awareness of the YMCA brand as a youth focused organisation by 3% from the previous year to 67% awareness. We couldn’t have achieved these outcomes without YMCA E-Store’s support.” MELINDA CROLE, CEO

TABLE OF

CONTENTS 4 A MESSAGE FROM OUR NEW CHAIRMAN AND OUR CEO

YMCA E-Store is wholly owned by YMCA Associations Australia wide, launching in 2003 with a focus to supply and produce quality YMCA branded products and uniforms for the movement. The YMCA in Australia serves in over 700 communities, offering a wide range of activities covering early learning, before and after school hours care, school holiday programs, aquatic & recreation centres, camps, sports, disability programs, and leadership and development opportunities for young people, all united by a shared belief in the power of inspired young people.

5 - 6 BOARD OF DIRECTORS 8 MEET OUR STAFF 9 SHAREHOLDERS INFORMATION 10 CURRENT SHAREHOLDINGS 10 SALES PERFORMANCE

The purchase of YMCA Gear products helps the YMCA support the empowerment of inspired young people.

12 - 21 FINANCIAL REPORT 22 SHARE VALUATION ADVICE

A MESSAGE FROM

OUR CHAIRMAN RESULTS Operating Profit for year ended 30th June 2017 $147k, which included a $50k Donation to the ‘Why Not’ campaign. As Chairman of YMCA E-Store, I would firstly like to acknowledge the significant input of my fellow Directors, and also acknowledge the enormous efforts of the staff. YMCA E-Store continues to be a valuable contributor to the overall organisation, whilst developing new and innovative products for expanding external markets. As the Company Chair, I have been cognizant to reinforce our focus with the continuation of the strategic planning, and attainment of the key objectives within the plan; to improve, incentivise, inspire, innovate, identify and invest. Despite loss of council contracts and other diminished internal business, affecting our income streams, we have been able to maintain a consistent turnover and in fact increased profitability through the process. We continue to build strong relationships and strong partnerships, with the Y globally and other like not for profit organisations like the Australian Childrens Foundation. We have invested in innovation with the employment of a product developer, to again develop products for internal use and mass distribution markets like Kmart, Target etc. We have incentivised internal sales by developing consistent state of the art merchandise destinations within centres, and recognising performance with this year’s merchandise award. We have Identified opportunity external to the organisation and will continue to drive these potential relationships. Further we have expanded YMCA E-Store services internationally, with engagement through online offers, and through development of strategic relationships. We have secured all Auckland uniform supply whilst seeking supply opportunities within both the USA and Europe. The company’s performance was in line with expectation, securing a profit of approximately $147k and donating an unbudgeted amount of $50k for the Nationally endorsed ‘Why Not’ program. We have again set a budget for growth and increased profits in 2017-18, building on the successful performance last year. We look forward to working with you into the future, whilst providing considerable benefit to the YMCA both locally and nationally. TIM GOODFELLOW, CHAIRMAN

FROM THE

CEO’S DESK As Chief Executive Officer, I am pleased to report that the business exceeded expectation for the 2016-17 period. In assessing the business landscape, both board and management are pleased to report increases in both income and profits. This has been attained by developing new partnerships and developing new products. Over the past twelve months we have continued to upgrade site merchandise facilities by investing in new and innovative shop fronts, improving imagery and developing both planograms and local retail business plans with supportive centres. We have employed additional resources to represent the company, with the inclusion of experienced merchandisers, product developer and further marketing support. We have also employed some young people in logistics and administration. We continue to provide resources to the movement, through dividends, donations, and discounts Over the past twelve months we have contributed in excess of $150k of product to assist local YMCAs with their objectives. We also provided $50k for the ‘Why Not’ campaign. Further the business has provided dividends to the value of $55k whilst increasing the overall equity to almost 1.6 million dollars. Finally on top of all the aforementioned benefits we have increased the value of shareholdings from $100 a share in 2003 to $366 a share today. This represents a growth of more than 266% increase in 14 years or an annual return of 19% per annum. The past twelve months of operation have seen us make significant inroads Into strategically shaping and moulding the business model from Internal supply to market supply. This change should emanate into Improved performance and also strengthen the company in the face of Internal change. In closing let me take the opportunity to thank you the customer, our board of Directors and my staff for all your concerted efforts to propel the company and brand.

MARK SARGENT, CHIEF EXECUTIVE OFFICER

BOARD OF DIRECTORS MR. TIM GOODFELLOW, DIRECTOR Tim is the General Manager at Ambra Corporation and a former Victorian YMCA board member. Tim is a director of numerous private companies in Australia and Hong Kong across a wide range of industries from apparel, distribution, manufacturing and agriculture. With a background in FMCG marketing, strategy and business efficiency, he brings extensive international experience and business acumen to the board. Tim has an intimate knowledge of apparel manufacturing, dealing with and sourcing product through Asia and vast experience distributing product to major retailers throughout Europe, Australia and New Zealand. He is an active participant in community life as a member of many sporting clubs with a particular passion for golf.

MS. DONNA MCMASTER Donna is a senior Retail Executive with over 30 years’ experience, the majority at senior, strategic levels within public & private companies. Her broad commercial experience in merchandise, marketing, logistics, store operations, human resources, leasing and property development has been pivotal to her leadership success. Donna is an inaugural winner of the Telstra Business Women of the Year Award (private sector) which is complimented by an Executive MBA from the University of Virginia (USA) and has also successfully completed Strategic Planning and Leadership programs at Monash and Deakin Universities. Donna is a Graduate & current member of the Australian Institute of Company Directors and is Chair of a School Education Board & Non-Executive Director of Dandenong Market Pty Ltd.

MS. CELIA RUANE Celia is a Senior Product Manager with Redbubble, an online marketplace for print on demand products, that features artwork by thousands of independent creatives. With experience across apparel manufacturing, wholesale, retail and online, Celia has developed strong competencies in product development and category management. “I am excited by the opportunity to contribute my skills to assist YMCA E-store, to develop strategic plans that ensure quality Y branded merchandise is the first choice by members, at all of our centres and beyond.”

MR. EDMUND WONG Edmund is a highly successful and results driven Director with an outstanding record in growing businesses and developing new routes to market. He has strong business acumen and leadership skills, with experience in leading teams and relating with key shareholders. Key competencies include strategic planning, e-commerce strategies, marketing and product positioning, developing new channels to market, sales strategies and communication. Edmund’s professional experience spans various roles with Hewlett-Packard including Worldwide Marketing, Global Operations, Mobility Solutions, Sales and Business Development, and he is currently the Commercial Director with Thomson Reuters in Melbourne.

MR. PETER MALONE Peter Malone has served the YMCA at a local, National and International levels in varying key roles throughout his engagement. Peter is the current Vice President of the YMCA Australia, current Chair of the Constitution Committee of APAY, current Chair of the Licensing and Member Development Sub-committee, and recently retired as a long term Director with YMCA of Bendigo. Peter commenced his involvement with the Y as a board Director with Eaglehawk YMCA, going on to serve the organisation as an interim CEO. Peter brings to the table significant skills in organisational development, project management, correctional behaviour as well as an extensive knowledge of the brand and associated intellectual property.

MS. MELINDA CROLE Melinda is the National CEO of the YMCA in Australia appointed in November 2016. A passionate advocate for the rights of children and young people, Melinda is working to support significant organisational reform to ensure a YMCA Movement that is fit for purpose with enduring relevance, sustainability, safety for all children and young people and is able to benefit more people in more communities Melinda has over 10 years serving the YMCA. Prior to being appointed National CEO, she was Executive Manager, Licensing and Development for YMCA Australia. Throughout her career, Melinda has had the opportunity to work across many general areas of operational and strategic management including direct business planning, human resource management, financial management and risk management in a national not-for-profit/community environment. Melinda currently plays a key role currently in YMCAs approach to Redress and continues to be involved with the Commonwealth governments discussions in regards to child safety and redress. Working closely with boards and directors in developing strategic objectives and good governance protocols and then translating these into operational management initiatives has been a major part of Melinda’s role. Melinda serves on several NFP boards and her formal qualifications include a Bachelor of Science (Biotechnology), Graduate Certificate in Management, a Diploma of Social Science and is a graduate and member of the Australian Institute of Company Directors.

MS. SHONA CASEY-ELAND Shona is the CEO of YMCA Geelong Inc & Geelong and District YMCA Youth Services. YMCA has been part of Shona’s life since commencing in 1998. The journey has seen her manage several significant areas within the YMCA, including access and inclusion, which saw her awarded the YMCA Australia program award in 1995 for her work in the area of Communications, Policy and Governance. With a strong background in governance, policy development, strategy and communications. Shona believes that E-store can deliver a strong commercial operation with returns to the YMCA shareholders through the implementation of the strategic plan and believe her skills, expertise and understanding of shareholder engagement experience will add value to the oversight, insight and foresight of YMCA E-store.

MS. LEISA HART Leisa Hart is a successful global executive leader with an impressive 30-year track record across IT, HR and not-for-profit community organisations. Leisa has significant operational experience having worked for organisations such as IBM and Telstra as Chief Operating Officer for an ICT acquisition. In 2009 Leisa joined Mission Australia to lead the Employment Services Division and was promoted to Chief Operating Officer to consolidate Mission Australia’s key national, commercial and support services. In 2013 she joined MAX Solutions as the Director of Operations for Employment Services, Training and Health Divisions. Since 2014 she has been the CEO of YMCA NSW and has strengthened the organisation with a focus on creating safe environments for children, young people and vulnerable adults.

E-STORE DONATES APPAREL TO YMCA OP SHOPS AROUND THE COUNTRY. HELPING TO SUPPORT VARIOUS PROGRAMS INCLUDING YMCA BRISBANES SCHOOL BREAKFAST PROGRAM

More than $150,000 of product was donated to various YMCA events and programs during the last 12 months

The YMCA Op Shop in Brisbane was started to help fund the School Breakfast Program, a school based program where food, equipment and guidance are provided free of charge by the YMCA, so that schools are able to operate a breakfast program which in turn improves student academic, school community and behavioural outcomes.

MEET OUR STAFF MARK SARGENT, CHIEF EXECUTIVE OFFICER

TIM BURMEISTER, BUSINESS MANAGER

Mark has been CEO of E-Store since 2004, and continues to lead the company to the successful position it is in today. With a YMCA career now spanning 29 years, Mark has maintained management roles in just about all facets of the YMCA business enterprises, including camping, recreation management, marketing, sponsorship, procurement, training and program development. He continues to strive for excellence on behalf of the Directors, shareholders, management, staff and customers.

Tim joined YMCA E-Store in July 2015, after having started originally with the Victorian YMCA back in 2001 as Business Manager at the Casey ARC. He was instrumental in the role out of the Links POS system across the State, and has had various roles in the Finance area from Group Accountant to Regional Finance Manager. Timâ&#x20AC;&#x2122;s working knowledge of Centre operations make him an integral part of the organisation into the future as we look to integrate YMCA E-Store operations into a more streamlined offering to the wider organisation.

DAVID BEACH, NATIONAL SALES MANAGER David joined YMCA E-Store early in 2011 as State Sales Representative, after working for the Eastern Ranges Football Club as marketing and sales manager. Over the past five years, David has improved relationships and assisted in the development of retail outlets, throughout Australia.

EARL MCMILLAN, DIGITAL DESIGN COORDINATOR Earl joined E-Store in 2015 after completing a Bachelor of Design (Multimedia Systems) at RMIT University followed by a year at Carlton Football Club as a Multimedia / Graphic Designer. As digital design coordinator, his key roles includes, art development, product and art design, print management, event art design and customised work. Earl also assists with maintaining and improving I.T and website programs.

RILEY BURMEISTER, WAREHOUSE / LOGISTICS Riley started with E-Store in January and completed a 6 week training program with Stuart and took over the Warehouse / Logistics role in March. He has been able to develop his skills in the warehouse, and has a solid understanding of the logistics & warehouse area of the business. During his first 6 months he has successfully attained his Victorian Drivers Licence and Licence to Perform high risk work.

KIRSTY WEINROWSKI, FINANCE & ACCOUNTS SUPPORT With experience in accounts, administration and purchasing, Kirsty has become an integral component of the company structure and has used her skills to develop systems and procedures within the office & warehouse. She has previously worked in small business, and specialised in reconciling accounts and streamlining processes.

STUART NORMAN, WAREHOUSE MANAGER Stuart brought a wealth of knowledge and experience in all areas of warehousing and logistics after a career spanning 15+ years in the industry. He previously managed production for large warehouse operations, and was appointed our Warehouse Coordinator in early 2014, before leaving us in March.

SHAREHOLDERS

INFORMATION Movement Support YMCA sites Australia wide have experienced difficulties in meeting financial commitments within their contract environments, so we have responded to these changing market conditions by offering best price or guaranteeing to match competitor prices, transitioning away from the old rebate model to a more streamlined best price model. We have seen a decline in our margins, however, through better tailoring supply agreements with our major partners, we have been able to streamline our operation and are able to continue to pay shareholder dividends in this ever-tightening market.

$2,000,000

In line with our commitment to support YMCA causes Australia wide, we have been able to contribute directly with donations of YMCA branded and supplier goods and apparel to support cause related activities across the Movement. We have continued to offer quality merchandise and apparel to support the various YMCA causes such as YMCA Swimathon & YMCA Global Challenge, and were a partner in the roll out of the Why Not Campaign which generated strong local and national exposure for the YMCA.

$1,514,616

WEALTH GENERATION – “IT’S YOUR MONEY RALPH” The Company structure of YMCA E-Store sits outside the business structure of all YMCA’s, however every dollar spent is used for the benefit of the organisation, with 100% of all profits being retained within the Movement and paid out either as Dividends or retained as Shareholder Equity, with no profits paid to external third parties. All Shareholders who purchased shares in YMCA E-Store back in 2003/4 have recouped their full initial investment, and now every dollar returned to them in Dividends is 100% surplus funds to be used to fund ongoing benevolent activities within their local communities. In addition to this, Shareholders have a combined Equity of $1,514,616, representing a 266% increase on their initial contribution, which is still retained in the Company.

$315,400

$357,677

CAPACITY BUILDING We continue to develop our Retail strategy within our Centres, with flagship retail destinations unveiled at Casey ARC and Casey RACE, with more to roll out in the 2017/18 year. We will continue to invest in building capacity at Centres, with the first Frontline training program run in conjunction with our Brand Partners, which will be developed further across the organisation with an emphasis on building capacity within Centres to help grow Secondary spend. After a comprehensive IT Strategy, we invested in a new Shopify website, launching in November, with increased functionality and easier access which has been widely supported by staff Australia wide.

INITIAL VALUE

RETURNED TO ORGANISATION

CURRENT VALUE

CURRENT SHAREHOLDINGS

SALES PERFORMANCE

TOTAL SALES

63%

37% 5%

YMCA VS PARTNER BRANDS

$3,254,565 .5%

YMCA of Perth Inc

200

Bendigo Regional YMCA

213

The Young Mens Christian Association of Canberra Incorporated

100

The Young Mens Christian Association of NSW

230

The Young Mens Christian Association of Ballarat

200

The Young Mens Christian Association of Stanthorpe Inc

The Young Mens Christian Association of Brisbane

640

Victorian State Council Of YMCA Inc

500

The National Council of the Young Mens Christian Associations of Australia

1441

The Young Mens Christian Association of Manningham Inc.

200

The Young Mens Christian Association of Whittlesea Inc.

YMCA of Top End Inc.

YMCA of Central Australia Inc.

YMCA of Katherine

YMCA of Hobart

YMCA of Geelong

YMCA of Inner North East of Adelaide Inc.

Grampians YMCA

YMCA of South Australia Inc.

State Council of YMCAs of Queensland

Total Shareholdings

4135

d construction eted the design an pl m co ly ul sf es cc Stores’ “E-Store have su at Casey ARC. Eea ar il ta re ed ov pr finish the of our new and im ion enabled us to at ic un m m co d il an siness. attention to deta n to day to day bu tio up sr di al im in m work on time with you enter akes an impact as m at th ea ar tic as se as they The result is a fant to linger and brow ns tro pa es ag ur co and Mark from the centre and en e to thank David lik st ju ld ou w I n. io .” approach recept project seamless lp in making this he r ei th l al r fo e E-Stor SEY ARC) AGER - YMCA CA AN M E TR EN (C - LLOYD KLAMAN

FINANCIAL

TABLE OF

YMCA E-STORE PTY LTD

DIRECTORSâ&#x20AC;&#x2122; REPORT

AUDITORS INDEPENDENCE DECLARATION

DIRECTORS DECLARATION

STATEMENT OF PROFIT & LOSS

STATEMENT OF FINANCIAL POSITION

STATEMENT OF CHANGES IN EQUITY

STATEMENT OF CASH FLOWS

17-20

NOTES TO THE FINANCIAL STATEMENTS

INDEPENDENT AUDIT REPORT

REPORT ABN 52 104 876 806

AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2017

CONTENTS

FINANCIAL

REPORT

Your directors present their report on the company for the financial year ended 30 June 2017.

DIRECTORS

EVENTS SUBSEQUENT TO THE END OF THE REPORTING PERIOD

The names of the directors in office at any time during or since the end of the year are:

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of those operations, or the state of

Tim Goodfellow

Donna McMaster

Edmund Wong

Celia Ruane

Melinda Crole

Peter Malone

LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS

Shona Eland (Appointed Nov’16)

Leisa Hart (Appointed Nov’16)

Likely developments in the operations of the company and the expected results of those operations in

Ron Mell (Resigned Sep’16)

affairs of the company in future financial years.

future financial years have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice to the company.

Directors have been in office since the start of the financial year to the date of this report unless other-

DIVIDENDS

wise stated.

On the 14th July, 2016, the company paid a dividend of $13.00 per share, totalling $53,755. Since balance date, on 21st July 2017, the Company paid a dividend of $20.16 per share totalling $83,361.

REVIEW OF OPERATIONS The profit of the company for the financial year amounted to $147,133 (2016 - $166,743)

Auditor’s Independence Declaration A copy of the auditor’s independence declaration is set out on page 4

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

This directors’ report is signed in accordance with a resolution of the Board of Directors:

No significant change in the nature of these activities occurred during the year.

PRINCIPAL ACTIVITIES

Director

YMCA E-Store Pty Ltd is the merchandising arm of YMCA Australia focused on supplying quality

Tim Goodfellow

sportswear and uniforms to YMCA member Associations. No significant change in the nature of these activities occurred during the year.

Dated this 22nd day of September 2017.

FINANCIAL

REPORT

AUDITOR’S INDEPENDENCE DECLARATION

DIRECTORS DECLARATION FOR THE YEAR ENDED 30 JUNE 2017

UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 & THE AUSTRALIAN CHARITIES

In accordance with a resolution of the directors of YMCA E-STORE Pty Ltd, the directors have determined that the company is not a reporting entity and that this special purpose financial report should be prepared in accordance with the accounting policies described in Note 1 to the financial statements.

AND NOT-FOR-PROFIT COMMISSION ACT 2012

TO THE DIRECTORS OF YMCA E-STORE PTY LTD I declare that, to the best of my knowledge and belief, during the year ended 30 June 2017 there have been;

The directors of the company declare that: 1. The financial statements and notes, as set out on pages 6 to 16 in accordance with the Corporations Act 2001 and the Australian Charities and Not for Profit Commission Act 2012 and: a. Comply with Australian Accounting Standards; and

(i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 and the Australian Charities and Not-for-profits Commission Act 2012 in relation to the audit; and (ii) no contraventions of any applicable code of professional conduct in relation to the audit.

b. Give a true and fair view of the company’s financial position as at 30 June 2017 and of its performance for the year ended on that date in accordance with the accounting policies described in Note 1 to the financial statements. 2. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

BDO East Coast Partnerships Chartered Accountants Director Tim Goodfellow RICHARD DEAN Partner Dated this 22nd day of September 2017.

Dated this 22nd day of September 2017.

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017

STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 30 JUNE 2017 Notes

2017 $

2016 $

Revenue

3,450,146

3,455,561

Other Income

6,591

Employee benefits expense

(449,204)

(445,225)

Freight & Cartage

(57,203)

(48,837)

Depreciation and amortisation expenses

(11,835)

(21,881)

Auditorâ&#x20AC;&#x2122;s remuneration

(7,250)

(7,230)

(2,777,521)

(2,772,236)

147,133

166,743

147,133

166,743

Other Expenses Profits from Operations Other Comprehensive Income Total Comprehensive Income

Notes

2017 $

2016 $

Cash and cash equivalents

980,661

801,902

Trade and other receivables

403,267

385,560

Inventories

579,696

697,350

4,845

27,388

1,968,469

1,912,200

37,440

29,621

37,440

29,621

2,005,909

1,941,821

ASSETS CURRENT ASSETS

Prepayments TOTAL CURRENT ASSETS NON-CURRENT ASSETS Plant and equipment

TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and other payables

421,368

464,665

Provisions

69,925

55,918

TOTAL CURRENT LIABILITES

491,293

520,583

TOTAL LIABILITIES

491,293

520,583

1,514,616

1,421,238

314,500

Retained Earnings

1,200,116

1,106,738

TOTAL EQUITY

1,514,616

1,421,238

NET ASSETS EQUITY Issued Capital

The accompanying notes form part of these financial statements

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2017

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017

Note

Issued

Retained

General

Capital

Earnings

Reserve

Total

314,500

991,682

1,306,182

Profit attributable to members

166,743

Other comprehensive income

Balance at 1 July 2015

2017 $

2016 $

Receipts from customers

3,432,438

3,233,067

Payments to suppliers and employees

(3,178,862)

(2,927,414)

253,576

305,658

Proceeds from disposal of assets

14,850

Payment for plant and equipment

(35,912)

(955)

Net cash used in investing activities

(21,062)

(955)

Dividend Paid

(53,755)

(51,687)

Net cash used in financing activities

(53,755)

(51,687)

Net (decrease)/increase in cash held

178,759

253,016

Cash at beginning of financial year

801,902

548,886

980,661

801,902

CASH FLOWS FROM OPERATING ACTIVITIES

Ordinary $

Notes

Net cash provided by operating activities

14(a)

Shares issued during the year

Transactions with owners in their capacity as owners Dividends paid or provided for

(51,687)

314,500

1,106,738

1,421,238

Profit attributable to members

147,133

Other comprehensive income

Balance at 30 June 2015 Shares issued during the year

Transactions with owners in their capacity as owners Dividends paid or provided for Balance at 30 June 2016

CASH FLOWS FROM INVESTING ACTIVITIES

(53,755)

314,500

1,200,116

1,514,616

CASH FLOWS FROM FINANCING ACTIVITIES

Cash at end of financial year

The accompanying notes form part of these financial statements

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES YMCA E-Store Pty Ltd is a company limited by shares, incorporated and domiciled in Australia.

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation The directors have prepared the financial statements on the basis that the company is a non-reporting entity because there are no users dependent on general purpose financial statements. The financial statements are therefore special purpose financial statements that have been prepared in order to meet the requirements of the Australian Charities and Not for Profit Commission Act 2012. The company is a not- for-profit entity for financial reporting purposes under Australian Accounting Standards. The financial statements have been prepared in accordance with the mandatory Australian Accounting Standards applicable to entities reporting under the Australian Charities and Not for Profit Commission Act 2012 and the significant accounting policies disclosed below, which the directors have determined are appropriate to meet the needs of members. Such accounting policies are consistent with the previous period unless stated otherwise. The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs unless otherwise stated in the notes. The amounts presented in the financial statements have been rounded to the nearest dollar. The financial statements were authorised for issue on 22nd day of September 2017 by the directors of the company. Accounting Policies a.

Income Tax The company was granted endorsement of a Charitable Institution to Income Tax Exempt Status effective from 1 July 2005 by the Australian Taxation Office on 18 November 2011. Consequently, income tax expense is not applicable.

Depreciation The depreciable amount of all fixed assets is depreciated on a straight line basis over their useful lives to the entity commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. Class of Fixed Asset Depreciation Rate Plant and equipment 7.4% - 37.5% The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. a.

Impairment of Assets At each reporting date, the entity reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the income statement.

b. Employee Benefits Provision is made for the company’s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits.

Inventories Inventories are measured at the lower of cost and net realisable value. Costs are assigned on the basis of weighted average costs. Plant and Equipment Each class of plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses. Plant and equipment are measured on the cost basis. The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

Note 1: Statement of Significant Accounting Policies c. Provisions Provisions are recognised when the company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will results and that outflow can be reliably measured.

2017 $

2016 $

3,254,565

3,237,147

4,716

6,181

3,259,281

3,243,328

- Sponsorship & rebate income

190,865

212,233

NOTE 2: REVENUE a. Sales Revenue: - sale of goods - interest received

Cash and Cash Equivalents Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the balance sheet.

Revenue Revenue from the sale of goods is recognised upon the delivery of goods to customers. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. Dividend revenue is recognised when the right to receive a dividend has been established. Dividends received from associates and joint venture entities are accounted for in accordance with the equity method of accounting. Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.

Other Revenue

190,865

212,233

Total Revenue

3,450,146

3,455,561

6,591

2,318,714

2,371,411

f. g.

Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST. Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

- Operating leases

74,263

- Contributions to defined Superannuation funds

36,427

36,344

- Loss on disposal of fixed assets

1,408

50,000

New Accounting Standards for Application in Future Periods Australian Accounting Standards and interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the company for the annual reporting period ended 30 June 2017. The new or amended Accounting Standards and interpretations, most relevant to the company, are AASB 9 Financial Investments, AASB 1058 Income of Not-for-profit Entities and AASB 15 Revenue from Contracts with Customers. These standards do not become mandatory until 2018 and the impact of their adoption is yet to be assessed by the company.

Note

Other Revenue

Other Income NOTE 3: RESULT FOR THE YEAR Expenses - Cost of sales

- Donations â&#x20AC;&#x201C; YMCA Why Not pledge

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

2017 $

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

2016 $

2017 $

2016 $

579,696

697,350

579,696

697,350

Plant & Equipment at cost

194,136

184,676

Accumulated depreciation

(156,696)

(155,055)

37,440

29,621

NOTE 4: ECONOMIC DEPENDENCE

NOTE 8: INVENTORIES

YMCA E-Store Pty Ltd is dependent on YMCA Associations for the majority of its revenue used to operate the business

CURRENT - Finished goods at cost

NOTE 5: AUDITORSâ&#x20AC;&#x2122; REMUNERATION Remuneration of the auditor - Auditing or reviewing the financial report

7,250

7,230

NOTE 6: CASH AND CASH EQUIVALENTS - Cash at bank and in hand - Short-term bank deposits

354,786

NOTE 9: PLANT & EQUIPMENT

180,494

625,875

621,408

980,661

801,902

Reconciliation of cash

NOTE 9: PLANT AND EQUIPMENT a.

Movements in Carrying Amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year.

Cash at the end of the financial year as shown in the cash flow statement is reconciled to items in balance sheet as follows: Cash and cash equivalents

354,786

180,494

Short-term bank deposits

625,875

621,408

980,661

801,902

NOTE 7: TRADE AND OTHER RECEIVABLES CURRENT Trade Receivables

383,627

363,464

Accrued Income

19,640

22,096

403,267

385,560

Total

Leased Plant and Equipment $

Freehold Land

Plant and Equipment

Balance at 1 July 2015

29,621

Additions

35,912

Disposals

(16,258)

Revaluation increments/ (decrements)

Depreciation expense

(11,835)

Balance at 30 June 2017

37,440

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

2017 $

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

2016 $

2017 $

2016 $

147,133

166,740

Depreciation

11,835

21,881

NOTE 11: PROVISIONS

Loss on disposal of asset

1,408

CURRENT

Changes in assets and liabilities, net of the effects of purchase

(Increase)/decrease in trade and other receivables

(20,163)

(221,614)

(Increase)/decrease in Prepayments

22,543

(3,634)

(Increase)/decrease in inventories

117,654

44,242

Increase/(decrease) in trade and other payables

(43,297)

299,168

(Increase)/decrease in Accrued Income

2,456

(880)

Increase/(decrease) in provisions

14,007

(248)

253,576

305,658

NOTE 10: TRADE AND OTHER PAYABLES

NOTE 14: CASH FLOW INFORMATION

CURRENT 352,150

a. Reconciliation of cash flow from Operations with Profit:

124,775

82,990

Profit

29,207

29,525

421,368

464,665

Trade payables

267,386

Sundry payables and accrued expenses Payroll expenses

Employee benefits

69,925

Non-cash flows in profit

55,918

NOTE 12: ISSUED CAPITAL 4,135 (2015: 4,135) fully paid ordinary shares

314,500

Ordinary shares participate in dividends and the proceeds on winding up of the entity in proportion to the number of shares held. At the shareholders meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands.

Note

2017 $

2016 $

NOTE 13: CAPITAL AND LEASING COMMITMENTS NOTE 15: COMPANY DETAILS The registered office of the company is: YMCA E-STORE Pty Ltd 88 Market Street SOUTH MELBOURNE VIC 3205

b. Operating Lease commitments Non-cancellable operating leases contracted for but not recognised in the financial statements: Payable - minimum lease payments: - not later than 12 months - between 12 months and five years

74,263

The principal place of business is: YMCA E-Store Pty Ltd Unit 2, 13 â&#x20AC;&#x201C; 15 Hi Tech Court KILSYTH VIC 3137

INDEPENDENT AUDITOR’S REPORT Independence To the members of YMCA E-Store Pty Ltd Report on the Financial Report We have audited the accompanying financial report, being a special purpose financial report of YMCA E-Store Pty Ltd, which comprises the statement of financial position as at 30 June 2016, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. i.e. confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of YMCA E-Store Pty Ltd, would be in the same terms if given to the directors as at the time of this auditor’s report. Opinion In our opinion the financial report of YMCA E-Store Pty Ltd is in accordance with the Corporations Act 2001, including:

Directors’ Responsibility for the Financial Report The directors of the company are responsible for the preparation of the financial report that gives a true and fair view and have determined that the basis of preparation described in Note 1 to the financial report is appropriate to meet the requirements of the Corporations Act 2001 and is appropriate to meet the needs of the members. The directors’ responsibility also includes such Internal control as the directors determine is necessary to enable the preparation of a financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

(a) giving a true and fair view of the company’s financial position as at 30 June 2016 and of its performance for the year ended on that date; and (b) complying with Australian Accounting Standards to the extent described in Note 1 and the Corporations Regulations 2001. Basis of accounting Without modifying our opinion, we draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the directors’ financial reporting responsibilities under the Corporations Act 2001. As a result, the financial report may not be suitable for another purpose. BDO East Coast Partnership

Richard Dean Partner

Melbourne, 20 September 2017

The Directors YMCA E-Store Pty Ltd Unit 2 13-15 Hi Tech Court KILSYTH VIC 3137 20 September 2017 Dear Directors, NET ASSETS In Accordance to your request, we provide the following details regarding the net assets per share of YMCA E-Store Pty Ltd as at 30 June 2017. The information has been based on the audited financial report of YMCA E-Store Pty Ltd for the financial year ended 30 June 2017. The audited net assets at 30 June 2017

$ 1,514,616

Number of shares on issue as per ASIC records Net assets per share at 30 June 2017

4,135 $

366.29

This net asset balance does not include provision for dividends, the last dividend paid that has been reflected in the financial report was paid in July 2016. Yours Faithfully BDO East Coast Partnership

Richard Dean Partner

In 2017 YMCA E-Store produced over 12,000 customised T-shirts for various YMCA organisations and programs including: YMCA Swimathon, the YMCA Global Challenge, Youth Parliament and many more

TITLE TITLE

The Directors, Management and staff of YMCA E-Store would like to thank the following providers for their much valued knowledge, support and assistance throughout the year.

We would also like to thank our shareholders, customers and YMCA members for your willingness and enthusiasm in promoting and purchasing YMCA branded products.

YMCA E-Store Pty Ltd t/as YMCA Merchandising 2/13-15 Hi Tech Court, Kilsyth, VIC, 3137 P: 03 8799 0000 E: estore@ymca.org.au W: ymcagear.com.au