FREELANCER LIMITED — Interim / Quarterly Report 2015

Jul 29, 2015

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Rule 4.7B

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Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Name of entity

Freelancer Limited	Freelancer Limited
ABN 66 141 959 042	Quarter ended (“current quarter”)
66 141 959 042	30 June 2015

Under the conditions of Freelancer’s listing on the ASX in November 2013, Freelancer is required to provide quarterly cash flow reports to the ASX. This unaudited cash flow report is for the quarter ended 30 June 2015.

At 30 June 2015, Freelancer had cash balances of $31.1 million. Net cash inflows for the quarter were $9.1 million, comprising:

• net operating cash inflows of $0.01 million;

• net investing cash outflows of $0.8 million, which is inclusive of a $0.6 million deposit paid towards the acquisition of escrow.com; and

• net financing cash inflows of $9.8 million resulting from placement of ordinary shares (net of transaction costs) and the repayment of Employee Share Plan (ESP) loans provided by the Company to finance the original purchase of vested ESP shares.

Unaudited consolidated statement of cash flows

Unaudited consolidated statement of cash flows
Cash flows related to operating activities 1.1 Receipts from customers 1.2 Payments for (a) staff costs (b) advertising and marketing (c) research and development (d) leased assets (e) other working capital 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes refunded/ (paid) 1.7 Other: (a) Government grant revenue Net operating cash flows	Current quarter $A’000	Year to date (6 months) $A’000
	8,780 (4,108) (1,366) - - (3,239) - 16 - (14) 59	16,738 (8,124) (2,442) - - (5,179) - 23 - (33) 119
	128	1,101

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

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	Current quarter $A’000	Year to date (6 months) $A’000
1.8 Net operating cash flows (carried forward)	128	1,101
Cash flows related to investing activities 1.9 Payment for acquisition of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.10 Proceeds from disposal of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.11 Loans to other entities 1.12 Loans repaid by other entities 1.13 Other Net investing cash flows 1.14 Total operating and investing cash flows	- - (4) (167) (648) - - - - - - - -	- - (6) (333) (648) - - - - - - - -
	(819)	(988)
	(691)	114
Cash flows related to financing activities 1.15 Proceeds from issues of shares, options, etc.1 1.16 Proceeds from sale of forfeited shares 1.17 Proceeds from borrowings 1.18 Repayment of borrowings 1.19 Dividends paid 1.20 Other: (a) Capitalised IPO costs Net financing cash flows	9,825 - - - - - -	9,862 - - - - - -
	9,825	9,862
Net increase (decrease) in cash held 1.21 Cash at beginning of quarter/year to date 1.22 Exchange rate adjustments 1.23 Cash at end of quarter	9,134 22,143 (144)	9,976 20,210 948
	31,134	31,134

1 As the ESP is considered in substance a share option, ESP shares issued and corresponding loans receivable are not recognised by the Company in its financial statements. The loan receivable does not satisfy the “probable future benefits following to the entity” criteria of SAC 2 Framework for the Preparation and Presentation of Financial Statements on the basis that the loan is non-recourse. ESP shares are therefore not considered issued to participants until the corresponding loans are repaid, at which time the Company recognises an increase in the issued capital and increase in cash.

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

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Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entities

1.24 Aggregate amount of payments to the parties included in item 1.2 1.25 Aggregate amount of loans to the parties included in item 1.11	Current quarter $A’000
	208
	-

• 1.26 Explanation necessary for an understanding of the transactions

• 1.24 includes directors’ fees and salaries paid in the quarter.

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

N/A

• 2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest

• N/A

Financing facilities available

Financing facilities available
3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	-	-
	-	-

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

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Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
4.1 Cash on hand and at bank 4.2 Deposits at call 4.3 Bank overdraft 4.4 Other (provide details)	23,329	21,400
	7,805	743
	-	-
	-	-
Total: cash at end of quarter(item 1.23)	31,134	22,143

Acquisitions and disposals of business entities

5.1 Name of entity 5.2 Place of incorporation or registration 5.3 Consideration for acquisition or disposal 5.4 Total net assets 5.5 Nature of business	Acquisitions (Item 1.9(a))	Disposals (Item 1.10(a))
	-	-
	-	-
	-	-
	-	-
	-	-

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.

• 2 This statement does give a true and fair view of the matters disclosed.

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Dated 30 July 2015

Neil Katz Company Secretary

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

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Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2. The definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report except for any additional disclosure requirements requested by AASB 107 that are not already itemised in this report.

3. Accounting Standards. ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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