10 ANNUAL REPORT  2013 KATHMANDU in this year losses) on the value of the loan at each balance  date are taxable in the Australian company. Whilst this loan  remains outstanding, this one-off benefit in FY2013 could  reverse in a future year when the AUD:NZD exchange rate  strengthens. sufficient to meet our capital expenditure requirements in  tandem with Kathmandu’s working capital cycle. Facility fees  and interest expense in FY2013 were down by over $1.4m  compared to the prior year, and the better terms attached to  the facility agreements now in place were the major reason  for this year-on-year reduction.  Net profit after tax increased by $9.3m after a favourable  taxation expense outcome for the year. Total tax expense  of $14.8m includes the benefit of the reduced tax charge in  the Australian trading company (Kathmandu Pty Ltd) arising  from the annual revaluation of its NZD denominated loan from  Kathmandu Ltd. This loan primarily arises from the amount  due by our Australian subsidiary for the purchase of the IP and  rights to use the Kathmandu brand in Australia, based on the  valuation determined at the time of the IPO in 2009. Because  it is NZD denominated, exchange rate conversion gains (or as  Kathmandu is committed to a sustainable future. In  recognising its importance to our customers, investors and  our team, sustainability is a Kathmandu core value. Our  sustainability journey continued in 2013 and brought to a close  our first ‘Sustain the Dream Plan 2011-2013’. This plan set out  the pathway for driving our sustainability performance in the  areas of our people, our customers, our products and  our community.  We have made considerable progress in integrating  sustainability into the way our business is organised and run,  SUSTAINABILITY 