AMBERTECH LIMITED — Interim / Quarterly Report 2018

Feb 15, 2018

16 February 2018

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Company Announcements Office Australian Stock Exchange 4[th] Floor, 20 Bridge Street Sydney NSW

Dear Sir/Madam

Please find following the Appendix 4D and Half-Year Financial Report of Ambertech Limited for the period ended 31 December 2017.

Kind regards

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Robert Glasson Company Secretary

Ambertech Limited ACN 079 080 158 Unit 1, 2 Daydream Street, Warriewood NSW 2102 Tel: 02 9998 7600 Fax: 02 9999 0770 email: rglasson@ambertech.com.au Web: www.ambertech.com.au

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Ambertech Limited and Controlled Entities ACN 079 080 158

Appendix 4D and Half Year Report Period Ended 31 December 2017

For Immediate Release 16 February 2018

Results for Announcement to the market Further Explanation of the Results Outlook for the business Financial Data Half Year Financial Report

Ambertech Limited ACN 079 080 158 Unit 1, 2 Daydream Street, Warriewood NSW 2102 Tel: 02 9998 7600 Fax: 02 9999 0770 email: rglasson@ambertech.com.au Web: www.ambertech.com.au

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Results for Announcement to the Market

For the period ended 31 December 2017

Key Information

The following information is provided to the ASX under listing rule 4.2A.

	31 Dec 17	31 Dec 16	Movement	Movement
	$’000	$’000	$’000	%
Revenuefrom ordinary activities	27,293	26,236	1,057	4.03
Profit after income tax for the period attributable to
members	488	461	27	5.86
Net profitfor the period attributable to members	488	461	27	5.86
Dividend History
The Board has advised that there will be no interim dividend in
respect of the period ended 31 December 2017.
	Amount		Franked
Interim dividends
In respect of the half-year ended 31 December 2017	Nil		100%
In respect of the half-year ended 31 December 2016	Nil		100%
Final Dividends
In respect of the year ended 30 June 2017	Nil		100%
In respect of the year ended 30 June 2016	Nil		100%
Key Ratios	31 Dec 17	31 Dec 16
Net tangible assets per security	30.9c	33.0c

Further Explanation of the results follows in the attached commentary and Half Year Financial Report

Ambertech Limited ACN 079 080 158 Unit 1, 2 Daydream Street, Warriewood NSW 2102 Tel: 02 9998 7600 Fax: 02 9999 0770 email: rglasson@ambertech.com.au Web: www.ambertech.com.au

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Further Explanation of the Results

For the period ended 31 December 2017

Result for the year

esultfor the year
	31 Dec 17	31 Dec 16	Change
	$’000	$’000	%
EBIT	803	717	12.0
Net finance costs	(327)	(306)
Profit before income tax	476	411	15.8

The result for the half year ended 31 December 2017 was an improvement over the previous corresponding period. EBIT and NPBT growth was driven by a strong half year for our Lifestyle Entertainment Segment. Other segments of the business experienced a difficult first half, however we believe that there will be improvements in these areas in the second half of the financial year.

Inventory levels have increased in the period from June 17, due to increased levels of inventory in transit from overseas suppliers at this time of the year. Underlying (on hand) inventory levels continue to reduce as we look to consolidate efforts to increase return on inventory investments. Other key business metrics remained steady or improved over the period.

Further explanation of the result is included in the segment results below.

Ambertech Limited ACN 079 080 158 Unit 1, 2 Daydream Street, Warriewood NSW 2102 Tel: 02 9998 7600 Fax: 02 9999 0770 email: rglasson@ambertech.com.au Web: www.ambertech.com.au

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Segment Results

Lifestyle Entertainment Segment

Sales revenue up 6.1% to $15,229,000 (Dec 16: $14,357,000). EBIT up 53.0% to $1,161,000 (Dec 16: $759,000).

Sales and EBIT performance were improved for the period to December 2017. These improvements were underpinned by improved sales results from our dealer network in residential and commercial installation markets. During the period our sales to the major Consumer Electronics retailers remained steady, and we continue to maintain strong relationships with our retail partners to ensure ongoing successes.

Professional Segment

Sales revenue up 5.2% to $10,562,000 (Dec 16: $10,039,000). EBIT down 186% to $(122,000) (Dec 16: $142,000).

Our Professional segment had a number of successes during the period, which is highlighted by the improvement in sales revenue for the period. Despite this, the EBIT result for the period was down, primarily a result of the mix of business activities. In particular, our media systems group completed some “market-seeding” projects at lower margin this period, with the benefits of this intended to come in future periods. Our pipeline for project work is strong and we are hopeful of reflecting this in second half performance.

New Zealand Segment

Sales revenue down 14.2% to $1,682,000 (Dec 16: $1,960,000). EBIT down 233% to $(110,000) (Dec 16: $(33,000)).

The period to 31 December 2017 was a difficult one for our New Zealand operation with the domestic political and economic climate stifling business activity during the traditionally busy months in the lead up to Christmas. These factors appear to have now receded, and along with our focus on expanding our product offerings in New Zealand and leveraging more off our Australian operations we believe we can restore profitability to this segment.

Outlook for the business

The second half of the year has been more difficult for the business in recent years, however there is a strong forward order book at present and we remain very active in seeking new agencies to complement our portfolio. Our pipeline for completing capital equipment sales in our media systems area continues to be encouraging, across both our traditional media market and new growth area markets.

On behalf of the Board

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Robert Glasson Company Secretary

Ambertech Limited ACN 079 080 158 Unit 1, 2 Daydream Street, Warriewood NSW 2102 Tel: 02 9998 7600 Fax: 02 9999 0770 email: rglasson@ambertech.com.au Web: www.ambertech.com.au

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Financial Data

Financial Data
	31 Dec 17	31 Dec 16	Movement
Sales Revenue	$’000	$’000	$’000	%
Lifestyle Entertainment	15,229	14,357
Professional	10,562	10,039
New Zealand	1,682	1,960
Inter-segment	(188)	(128)
Total Sales Revenue	27,285	26,228	1,057	4.0
Segment Result
Lifestyle Entertainment	1,161	759
Professional	(122)	142
New Zealand	(110)	(33)
Unallocated/Corporate	(126)	(151)
Earnings before interest and tax (EBIT)	803	717	86	12.0
Net interest expense	(327)	(306)
Net profit before tax	476	411	65	15.8
Income tax benefit	12	50
Netprofit for theperiod	488	461	27	5.9
Key Ratios
EBIT/Sales	2.9%	2.7%
Inventory/Sales	22.7%	25.6%
Receivables/Sales	17.1%	17.1%
Basic earningsper share	1.6c	1.5c

For further information, please contact our Company Secretary, Mr Robert Glasson.

Ambertech Limited ACN 079 080 158 Unit 1, 2 Daydream Street, Warriewood NSW 2102 Tel: 02 9998 7600 Fax: 02 9999 0770 email: rglasson@ambertech.com.au Web: www.ambertech.com.au

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AMBERTECH LIMITED AND CONTROLLED ENTITIES ACN 079 080 158

HALF-YEAR FINANCIAL REPORT PERIOD ENDED 31 DECEMBER 2017

AMBERTECH LIMITED AND CONTROLLED ENTITIES ACN 079 080 158

DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

Your directors submit the financial report of Ambertech Limited (referred to hereafter as the consolidated entity) comprising Ambertech Limited and the entities it controlled for the half-year ended 31 December 2017.

Directors

The following persons were directors of Ambertech Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated.

Peter Francis Wallace Peter Andrew Amos Edwin Francis Goodwin Thomas Robert Amos David Rostil Swift

Review of Operations

A review of the operations of the consolidated entity during the half-year and the results of these operations are set out in the attached Appendix 4D.

Results of Operations

The consolidated profit after providing for income tax for the period ended 31 December 2017 was $488,000, up by $27,000 on the previous corresponding period (2016: $461,000). Revenue for the period was $27,293,000 (2016: $26,236,000). Further information on the operating results are included in the attached Appendix 4D.

Dividend

There were no dividends paid or declared during the half-year ended 31 December 2017.

Rounding of Amounts

The parent entity has applied the relief available to it under ASIC Corporations Instrument 2016/191 (Rounding in Financial/Directors' Reports). Accordingly, amounts in the financial statements have been rounded off to the nearest $1,000.

Auditor's Independence Declaration

The auditor's independence declaration under section 307C of the Corporations Act 2001 is set out on page 2.

Signed in accordance with a resolution of directors.

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P F Wallace Chairman of Directors

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P A Amos Managing Director

Dated this 16th day of February 2018 Sydney

Tel: +61 2 9251 4100 Level 11, 1 Margaret St Fax: +61 2 9240 9821 Sydney NSW 2000 www.bdo.com.au Australia

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DECLARATION OF INDEPENDENCE BY PAUL BULL TO THE DIRECTORS OF AMBERTECH LIMITED

As lead auditor for the review of Ambertech Limited for the half-year ended 31 December 2017, I declare that, to the best of my knowledge and belief, there have been:

1. No contraventions of the auditor independence requirements of the Corporations Act 2001 relation to the review; and

2. No contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Ambertech Limited and the entities it controlled during the period.

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Paul Bull Partner

BDO East Coast Partnership

Sydney, 16 February 2018

BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.

AMBERTECH LIMITED AND CONTROLLED ENTITIES

ACN 079 080 158

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

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31-Dec-17 31-Dec-16
$'000 $'000
Revenues 27,293 26,236
Cost of sales (18,792) (17,653)
Gross Profit 8,501 8,583
Other income - -
Employee benefits expense (4,634) (4,519)
Distribution costs (728) (772)
Marketing costs (482) (695)
Premises costs (980) (997)
Travel costs (216) (211)
Depreciation and amortisation expense (129) (130)
Finance costs (327) (306)
Other expenses (529) (542)
Profit before income tax 476 411
Income tax benefit 12 50
Profit after income tax for the half-year 488 461
Other comprehensive income
Exchange differences on translation of foreign operations (49) 9
Total comprehensive income for the half-year 439 470
Earnings per share
Basic earnings per share (cents) 1.6 1.5
Diluted earnings per share (cents) 1.6 1.5
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The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

AMBERTECH LIMITED AND CONTROLLED ENTITIES

ACN 079 080 158

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2017

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31-Dec-17 30-Jun-17
Note $'000 $'000
ASSETS
CURRENT ASSETS
Cash and cash equivalents 1,019 1,014
Trade and other receivables 10,978 7,728
Inventories 12,703 12,045
TOTAL CURRENT ASSETS 24,700 20,787
NON-CURRENT ASSETS
Plant and equipment 906 987
Deferred tax assets 1,201 1,202
TOTAL NON-CURRENT ASSETS 2,107 2,189
TOTAL ASSETS 26,807 22,976
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 8,450 6,600
Other financial liabilities 5,922 4,393
Provisions 1,647 1,614
TOTAL CURRENT LIABILITIES 16,019 12,607
NON-CURRENT LIABILITIES
Provisions 128 143
Deferred tax liabilities 10 18
TOTAL NON-CURRENT LIABILITIES 138 161
TOTAL LIABILITIES 16,157 12,768
NET ASSETS 10,650 10,208
EQUITY
Share capital 11,138 11,138
Reserves (13) 33
Retained earnings (475) (963)
TOTAL EQUITY 10,650 10,208
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The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

AMBERTECH LIMITED AND CONTROLLED ENTITIES ACN 079 080 158

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

		Foreign
		Currency	Share Based
	Share	Translation	Payments		Retained	Total
	Capital	Reserve	Reserve		Earnings	Equity
	$'000	$'000	$'000		$'000	$'000
Balance as at 1 July 2017	11,138	33	-		(963)	10,208
Profit for the half-year	-	-	-		488	488
Exchange differences on translation of foreign operations	-	(49)	-		-	(49)
Total comprehensive income for the half-year	-	(49)	-		488	439
Transactions with equity holders: Costs of share based payments	-	-		3	-	3
Balance as at 31 December 2017	11,138	(16)		3	(475)	10,650
Balance as at 1 July 2016 Profit for the half-year Exchange differences on translation of foreign operations	11,138 - -	31 - 9	- - -		(329) 461 -	10,840 461 9
Total comprehensive income for the half-year	-	9	-		461	470
Transactions with equity holders: Costs of share based payments	-	-	-		-	-
Balance as at 31 December 2016	11,138	40	-		132	11,310

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

AMBERTECH LIMITED AND CONTROLLED ENTITIES

ACN 079 080 158

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

	31-Dec-17	31-Dec-16
	$'000	$'000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers	27,122	27,063
Payments to suppliers and employees	(26,097)	(26,729)
Interest received	9	9
Interest and other costs of finance paid	(327)	(306)
Income taxes paid	-	-
Goods and services tax remitted	(2,193)	(2,016)
Net cash (used in) operating activities	(1,486)	(1,979)
CASH FLOWS FROM INVESTING ACTIVITIES Payments for purchase of plant and equipment	(49)	(34)
Net cash (used in) investing activities	(49)	(34)
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings Repayment of borrowings	1,541 -	2,008 (20)
Net cash provided by financing activities	1,541	1,988
Net increase in cash and cash equivalents held Cash and cash equivalents at beginning of period Effect of exchange rate changes on cash and cash equivalents	6 1,014 (1)	(25) 948 (6)
Cash and cash equivalents at end of period	1,019	917

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

AMBERTECH LIMITED AND CONTROLLED ENTITIES ACN 079 080 158

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

NOTE 1: STATEMENT OF COMPLIANCE

This general purpose interim financial report for the half-year ended 31 December 2017 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International financial Reporting Standard IAS 34 'interim financial reporting'.

This interim financial report does not include all the notes of a type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the most recent annual financial report for the year ended 30 June 2017 and any public announcements made by Ambertech Limited during the interim financial reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied in preparing this financial report for the half-year ended 31 December 2017 are consistent with those applied in the annual financial report for the year ended 30 June 2017, unless otherwise stated.

NEW, REVISED OR AMENDING ACCOUNTING STANDARDS AND INTERPRETATIONS ADOPTED

The consolidated entity has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.

Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Any significant impact on the accounting policies of the consolidated entity from the adoption of these Accounting Standards and Interpretations are disclosed in the relevant accounting policy. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the consolidated entity.

NOTE 3: EVENTS SUBSEQUENT TO REPORTING DATE

No matters have arisen which significantly affected or may significantly affect the operations of the consolidated entity, the results of those operations or the state of affairs of the consolidated entity in future financial years.

AMBERTECH LIMITED AND CONTROLLED ENTITIES ACN 079 080 158

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

NOTE 4: DIVIDENDS

	31-Dec-17	31-Dec-16
	$'000	$'000
Recognised as distributions to equity holders
There was no fully franked final dividend paid during the half-year
ended 31 December 2017.	-	-

Declared before the interim report is authorised for issue but not recognised as distributions to equity holders at the end of the period

Fully franked interim dividend - -

NOTE 5: SEGMENT REPORTING

Result EBIT Net interest and finance costs Profit before income tax Income tax benefit Profit for the half-year Total segment revenue Inter-segment revenue Revenue from external customers Segment EBIT Unallocated/corporate result	Professional Lifestyle Entertainment New Zealand Eliminations Total 31-Dec-17 31-Dec-17 31-Dec-17 31-Dec-17 31-Dec-17 $'000 $'000 $'000 $'000 $'000 10,551 15,053 1,681 - 27,285 11 176 1 (188) - 10,562 15,229 1,682 (188) 27,285 (122) 1,161 (110) - 929 (126) 803 (327) 476 12 488

AMBERTECH LIMITED AND CONTROLLED ENTITIES ACN 079 080 158

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

NOTE 5: SEGMENT REPORTING (continued)

Result EBIT Total Segment Assets 31 December 2017 30 June 2017 Total Segment Liabilities 31 December 2017 30 June 2017 Net interest and finance costs Profit before income tax Income tax expense Profit for the half-year Total segment revenue Inter-segment revenue Revenue from external customers Segment EBIT Unallocated/corporate result

Professional Lifestyle Entertainment New Zealand Eliminations Total 31-Dec-16 31-Dec-16 31-Dec-16 31-Dec-16 31-Dec-16 $'000 $'000 $'000 $'000 $'000 10,039 14,242 1,947 - 26,228 - 115 13 (128) - 10,039 14,357 1,960 (128) 26,228 142 759 (33) - 868 (151) 717 (306) 411 50 461 Professional Lifestyle Entertainment New Zealand Unallocated/ Corporate Total $'000 $'000 $'000 $'000 $'000 7,855 14,902 1,827 2,223 26,807 6,327 12,585 1,815 2,249 22,976 3,709 5,211 780 6,457 16,157 3,005 3,938 770 5,055 12,768

AMBERTECH LIMITED AND CONTROLLED ENTITIES ACN 079 080 158

DIRECTORS' DECLARATION

In the directors' opinion:

• the attached financial statements and notes thereto comply with the Corporations Act 2001 , Australian Accounting Standard AASB 134 ' Interim Financial Reporting ', the Corporations Regulations 2001 and other mandatory professional reporting requirements;

• the attached financial statements and notes thereto give a true and fair view of the consolidated entity's financial position as at 31 December 2017 and of its performance for the financial half-year ended on that date; and

• there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors made pursuant to section 303(5) of the Corporations Act 2001

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P F Wallace

Chairman of Directors

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P A Amos

Managing Director

Dated this 16th day of February 2018

Sydney

Tel: +61 2 9251 4100 Level 11, 1 Margaret St Fax: +61 2 9240 9821 Sydney NSW 2000 www.bdo.com.au Australia

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INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of Ambertech Limited

Report on the Half-Year Financial Report

Conclusion

We have reviewed the half-year financial report of Ambertech Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 31 December 2017, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the halfyear then ended, and notes comprising a statement of accounting policies and other explanatory information, and the directors’ declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of the Group is not in accordance with the Corporations Act 2001 including:

• (i) Giving a true and fair view of the Group’s financial position as at 31 December 2017 and of its financial performance for the half-year ended on that date; and

• (ii) Complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

Directors’ responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 31 December 2017 and its financial performance for the half-year ended on that date and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of the Group, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards

BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.

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and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Group, would be in the same terms if given to the directors as at the time of this auditor’s review report.

BDO East Coast Partnership

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Paul Bull Partner

Sydney, 16 February 2018