Energy Mad Ltd’s financial results year ended 31 March 2017

30 May 2017 This document covers Energy Mad Limited's un-audited financial results for the year ended 31 March 2017. ENERGY MAD LIMITED RESULTS FOR ANNOUNCEMENT TO THE MARKET Please refer to the attached for tabled figures. Commentary Income Statement o Operating revenue was $5,327,270 for the year ended 31 March 2017 compared to $8,403,752 for the previous year (ignoring other income). The 36% decrease was due to a significant contraction in the Australian market following a decline in VEEC prices, and lower revenue in New Zealand following the Group's decision to exit the direct to consumer business. o Gross profit was $1,865,955 (35% of operating revenue) for the year ended 31 March 2017 compared to $2,823,926 (34% of operating revenue) for the previous year. The reduction reflected the reduction in revenue. o Administration and general expenses were $2,183,405 for the year ended 31 March 2017 compared to $2,456,113 for the previous year. The 11% decrease is primarily due to cost savings achieved through restructuring. o Selling and distribution expenditure stands at $263,694 for the year ended 31 March 2017 compared to $1,150,306 for the previous year. The 77% decrease reflects the reduction in costs following the Group's decision to exit the New Zealand direct to consumer business. o The Board has reviewed the expected realisations for the Group's assets following the entry into an arrangement which may lead to execution of an agreement for the sale and purchase of assets announced to the Exchange on 9 May and as a consequence: - Has written down inventory by $1,657,678 to expected realisable value net of holding and disposal costs. - Provided $250,000 for exit costs associated with winding down operations. - Provided $923,636 for the impairment of intangible assets. o Finance expenses are $605,012 for the year ended 31 March 2017 compared to the previous year of $378,648. The 60% increase was due to an increase in borrowing to fund continuing operations. Statement of Cash flows and Financial Position o The net cash outflow for operating activities amounted to $1,351,529 compared to an outflow of $1,748,349 the previous year. o The net cash outflow from investing activities amounted to $253,550 compared to an outflow of $367,911 for the previous year. The reduction reflected lower expenditure on research and development. o The Group's assets $1,747,768 have decreased by $4,268,231 from $6,015,999. The reduction reflects: - Lower receivables due to fall in revenue - The write down of inventories to expected net realisable value - The impairment of intangible assets. o The Group's liabilities have decreased by $2,488,590 from $7,400,232 to $4,911,642. The decrease reflects a reduction in trade and other payables due to the contraction in market activity Please refer to the accompanying Market Release and Consolidated Financial Statements for additional commentary. For more information, contact Brent Wheeler 021 834279 End CA:00301923 For:MAD Type:FLLYR Time:2017-05-30 15:31:08