APPEN LIMITED — Interim / Quarterly Report 2017

Aug 27, 2017

Appen Limited Appendix 4D Half-year report

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1. Company details

Name of entity: Appen Limited ABN: 60 138 878 298 Reporting period: For the half-year ended 30 June 2017 Previous period: For the half-year ended 30 June 2016

2. Results for announcement to the market

			$'000
Revenues from ordinary activities	up	38.6% to	74,058
Profit from ordinary activities after tax attributable to the owners of Appen
Limited	up	50.0% to	8,115
Profit for the half-year attributable to the owners of Appen Limited	up	50.0% to	8,115
Dividends
			Franked
		Amount per	amount per
		security	security
		Cents	Cents
Final dividend for the year ended 31 December 2016		3.00	3.00

Dividend declared

On 28 August 2017, the Company declared an interim dividend for the year ended 31 December 2017 of 3.0 cents per share, fully franked. The dividend is to be paid out of the profits reserve. The record date for determining entitlements to the dividend is 4 September 2017. The financial effect of these dividends has not been brought to account in the financial statements for the period ended 30 June 2017 and will be recognised in subsequent financial reports.

Comments

The profit for the Group after providing for income tax amounted to $8,115,000 (30 June 2016: $5,409,000).

Refer to the 'Review of Operations' section in the Directors' report attached for further explanation of the results.

3. Net tangible assets

Net tangible assets per ordinary security	Current period Cents 25.28	Previous period Cents 21.08

4. Control gained over entities

Not applicable.

5. Loss of control over entities

Not applicable.

(DRAFT 4-2)

Appen Limited Appendix 4D Half-year report

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6. Dividends

Current period

Current period
					Franked
				Amount per	amount per
				security	security
				Cents	Cents
Final dividend for the year ended	31	December	2016	3.00	3.00

Dividend declared

On 28 August 2017, the Company declared an interim dividend for the year ended 31 December 2017 of 3.0 cents per share, fully franked. The dividend is to be paid out of the profits reserve. The record date for determining entitlements to the dividend is 4 September 2017. The financial effect of these dividends has not been brought to account in the financial statements for the period ended 30 June 2017 and will be recognised in subsequent financial reports.

Previous period
		Franked
	Amount per	amount per
	security	security
	Cents	Cents
Interim dividend for the year ended 31 December 2016	2.00	2.00

7. Dividend reinvestment plans

Not applicable.

8. Details of associates and joint venture entities

Not applicable.

9. Foreign entities

Details of origin of accounting standards used in compiling the report:

Not applicable.

10. Audit qualification or review

Details of audit/review dispute or qualification (if any):

The financial statements were subject to a review by the auditors and the review report is attached as part of the Interim Report.

11. Attachments

Details of attachments (if any):

The Interim Report of Appen Limited for the half-year ended 30 June 2017 is attached.

(DRAFT 4-2)

Appen Limited Appendix 4D Half-year report

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12. Signed

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Signed _________

Date: 28 August 2017

Mark Brayan Managing Director Sydney

(DRAFT 4-2)

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Appen Limited ABN 60 138 878 298

Interim Report - 30 June 2017

Appen Limited
Contents
30 June 2017
Corporate directory	2
Directors' report	3
Auditor's independence declaration	6
Consolidated statement of profit or loss and other comprehensive income	7
Consolidated statement of financial position	8
Consolidated statement of changes in equity	9
Consolidated statement of cash flows	10
Notes to the consolidated financial statements	11
Directors' declaration	16
Independent auditor's review report to the members of Appen Limited	17

1

Appen Limited Corporate directory 30 June 2017

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Directors	Christopher Charles Vonwiller - Chairman
	Mark Ronald Brayan – Managing Director and Chief Executive Officer
	Stephen John Hasker
	Robin Jane Low
	William Robert Pulver
	Deena Robyn Shiff
Company secretary	Leanne Ralph
Registered office and principal
place of business	Level 6
	9 Help Street
	Chatswood NSW 2067
	Tel: 02 9468 6300
Share register	Link Market Services Limited
	Level 12
	680 George Street
	Sydney NSW 2000
	Telephone: 1300 554 474
	Facsimile: (02) 9287 0303
Auditor	KPMG
	Tower Three
	International Towers Sydney
	300 Barangaroo Avenue
	Sydney NSW 2000
Solicitors	Norton Rose Fulbright Australia
	Level 18, Grosvenor Place
	225 George Street
	Sydney NSW 2000
Stock exchange listing	Appen Limited shares are listed on the Australian Securities Exchange (ASX code:
	APX)
Website	www.appen.com

2

Appen Limited Directors' report 30 June 2017

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The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group' or 'Appen') consisting of Appen Limited (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 30 June 2017.

Directors

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

Christopher Charles Vonwiller - Chairman Mark Ronald Brayan Stephen John Hasker Robin Jane Low William Robert Pulver Deena Robyn Shiff

Principal activities

During the financial half-year the principal continuing activities of the Group consisted of the provision of data solutions and services for global technology companies and government agencies.

Appen operates through two operating divisions being:

• Content Relevance which provides annotated data used in search technology (embedded in web, e-commerce and social engagement) for improving relevance and accuracy of search results; and

• Language Resources which provides data used in speech recognisers, machine translation, speech synthesisers and other machine-learning technologies resulting in more engaging and fluent devices including internet-connected devices, in-car automotive systems and speech-enabled consumer electronics.

Supporting both divisions is a global on-demand workforce providing customers with very flexible in-country linguistic and cultural expertise in support of large global initiatives to any of 140 global markets.

Appen was founded in 1996 and listed on the Australian Securities Exchange on 7 January 2015.

Dividends

Dividends paid during the financial half-year were as follows:

Final dividend paid out of the profits reserve for the year ended 31 December 2016 of 3.0 cents per ordinary share (2016: 3.0 cents)	Group 30 Jun 2017 30 Jun 2016 $'000 $'000 2,928 2,909

Dividend declared

On 28 August 2017, the Company declared an interim dividend for the year ended 31 December 2017 of 3.0 cents per share, fully franked. The dividend is to be paid out of the profits reserve. The record date for determining entitlements to the dividend is 4 September 2017. The financial effect of these dividends has not been brought to account in the financial statements for the period ended 30 June 2017 and will be recognised in subsequent financial reports.

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Appen Limited Directors' report 30 June 2017

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Review of operations

The profit for the Group after providing for income tax amounted to $8,115,000 (30 June 2016: $5,409,000).

Financial performance

Language Resources Content Relevance Other Total revenue from principal activities Net profit after tax (NPAT) Add tax Add net interest expense/(income) EBIT Depreciation and amortisation Statutory EBITDA* % Statutory EBITDA / Sales % Segment Profit / Sales Language Resources Content Relevance	30 Jun 2017 $'000 20,747 53,305 6	30 Jun 2016 Percentage change Percentage change constant currency $'000 % % 18,434 13% 17% 34,975 52% 56% 32 53,441 39% 42% 5,409 50% 62% 2,818 4 8,231 42% 49% 617 8,848 44% 52% 16.6% 40.4% 17.3%
	74,058
	8,115 3,532 3
	11,650 1,119
	12,769
	17.2% 36.0% 16.8%

• EBIT is defined as earnings before tax and interest

• ** EBITDA is EBIT before depreciation and amortisation

Total revenue for the period ended 30 June 2017 was $74,058,000 compared to prior period revenue of $53,441,000. The drivers behind this change in revenue were:

• The Language Resources division recorded a 13% increase in revenue over the prior year, driven mainly by increased demand for data collection services for government customers as well as technology and automotive customers. On a constant currency basis, the revenue growth was 17%.

• The Content Relevance division delivered a 52% increase in revenue over the prior year. This was largely driven by increased demand for human annotated data for a variety of machine learning applications. On a constant currency basis, the revenue growth was 56%.

The Company reported EBITDA of $12,769,000 for the half year period to 30 June 2017, representing a 44% increase over the prior corresponding period. This resulted from the strong revenue increase in both sectors and the subsequent delivery of services at scale, via a streamlined operating model delivering cost efficiency and economies of scale. This is evidenced by operating expenses (expenses excluding services purchased, depreciation, impairment, finance costs and foreign exchange) for the first half period comprising 24.6% of revenue as compared to 29.5% for the prior corresponding period. The EBITDA result included realised and unrealised foreign exchange gains of $558,000. Excluding these gains, the EBITDA was $12,211,000 and the EBITDA return was 16.5%. On a constant currency basis, the EBITDA growth was 52%.

The Language Resources division reported return on sales of 36% down from 40%, due to movements in customer and project mix resulting in a lower gross margin percentage. The Content Relevance division reported return on sales of 16.8% from 17.3%. The reduction was expected due to volume related discounts that became effective in the second half of last year. However, the return for the first half of this year has increased significantly on the second half of last year return of 11.7%. This is due to productivity measures and cost control and efficiencies implemented in late Q3 and Q4 last year.

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Appen Limited Directors' report 30 June 2017

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Significant changes in the state of affairs

There were no significant changes in the state of affairs of the Group during the financial half-year.

Rounding of amounts

The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors Reports) Instrument 2016/191 (Rounding Instrument), issued by the Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.

Auditor's independence declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report.

This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001.

On behalf of the directors

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Christopher Vonwiller _________ Director

28 August 2017 Sydney

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6

Appen Limited Consolidated statement of profit or loss and other comprehensive income For the half-year ended 30 June 2017

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Note Revenue 3 Foreign exchange gain Expenses Services purchased - data collection Employee benefits expense Depreciation and amortisation expense Impairment of assets Travel expense Professional fees Rental expense Communication expense Other expenses Finance costs and foreign exchange loss 3 Profit before income tax expense Income tax expense Profit after income tax expense for the half-year attributable to the owners of Appen Limited Other comprehensive income Items that may be reclassified subsequently to profit or loss Foreign currency translation Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year attributable to the owners of Appen Limited Basic earnings per share 9 Diluted earnings per share 9	Group 30 Jun 2017 30 Jun 2016 $'000 $'000 74,058 53,441 558 - (43,618) (28,443) (13,534) (12,303) (1,119) (617) - (107) (437) (564) (899) (911) (388) (249) (132) (167) (2,839) (1,459) (3) (394) 11,647 8,227 (3,532) (2,818) 8,115 5,409 (1,928) (419) (1,928) (419) 6,187 4,990 Cents Cents 8.32 5.59 8.21 5.46
	11,647 (3,532)
	8,115 (1,928)
	(1,928)
	6,187
	Cents 8.32 8.21

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

7

Appen Limited Consolidated statement of financial position As at 30 June 2017

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Note Assets Current assets Cash and cash equivalents Trade and other receivables 4 Derivative financial instruments Prepayments Total current assets Non-current assets Property, plant and equipment Intangibles Other deposits Total non-current assets Total assets Liabilities Current liabilities Trade and other payables 5 Derivative financial instruments Income tax Provisions Revenue received in advance Total current liabilities Non-current liabilities Borrowings Deferred tax Provisions Total non-current liabilities Total liabilities Net assets Equity Issued capital 6 Reserves Accumulated losses Total equity	Group 30 Jun 2017 31 Dec 2016 $'000 $'000 19,986 16,471 23,215 21,861 261 - 733 415 44,195 38,747 1,168 725 14,377 14,543 11 12 15,556 15,280 59,751 54,027 14,368 12,177 - 199 2,183 1,447 1,203 884 471 716 18,225 15,423 5 6 2,004 2,778 429 417 2,438 3,201 20,663 18,624 39,088 35,403 19,795 19,510 23,163 19,763 (3,870) (3,870) 39,088 35,403
	44,195
	1,168 14,377 11
	15,556
	59,751
	14,368 - 2,183 1,203 471
	18,225
	5 2,004 429
	2,438
	20,663
	39,088
	19,795 23,163 (3,870)
	39,088

The above consolidated statement of financial position should be read in conjunction with the accompanying notes

8

Appen Limited Consolidated statement of changes in equity For the half-year ended 30 June 2017

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Group Balance at 1 January 2016 Profit after income tax expense for the half-year Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Issue of ordinary shares (note 6) Transfer between reserves Share-based payments Dividends paid (note 7) Balance at 30 June 2016 Group Balance at 1 January 2017 Profit after income tax expense for the half-year Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Issue of ordinary shares (note 6) Transfer between reserves Share-based payments Dividends paid (note 7) Balance at 30 June 2017	Issued capital $'000 19,077 - -	Reserves $'000 13,451 - (419)	Accumulated losses $'000 (3,870) 5,409 -	Total equity $'000 28,658 5,409 (419) 4,990 396 - 168 (2,909) 31,303 Total equity $'000 35,403 8,115 (1,928) 6,187 285 - 141 (2,928) 39,088
	- 396 - - -	(419) - 5,409 168 (2,909)	5,409 - (5,409) - -
	19,473	15,700	(3,870)
	Issued capital $'000 19,510 - -	Reserves $'000 19,763 - (1,928)	Accumulated losses $'000 (3,870) 8,115 -
	- 285 - - -	(1,928) - 8,115 141 (2,928)	8,115 - (8,115) - -
	19,795	23,163	(3,870)

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

9

Appen Limited Consolidated statement of cash flows For the half-year ended 30 June 2017

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Note Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) Interest received Interest and other finance costs paid Income taxes paid Net cash from operating activities Cash flows from investing activities Payments for property, plant and equipment Payments for intangibles Net cash used in investing activities Cash flows from financing activities Proceeds from issue of ordinary shares 6 Dividends paid 7 Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial half-year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of the financial half-year	Group 30 Jun 2017 30 Jun 2016 $'000 $'000 71,891 50,738 (59,244) (44,048)	Group 30 Jun 2017 30 Jun 2016 $'000 $'000 71,891 50,738 (59,244) (44,048)
	12,647 1 (3) (3,493)	6,690 4 (10) (3,171)
	9,152	3,513
	(581) (1,568)	(180) (178)
	(2,149)	(358)
	285 (2,928)	396 (2,909)
	(2,643)	(2,513)
	4,360 16,471 (845)	642 12,725 (298)
	19,986	13,069

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

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Appen Limited Notes to the consolidated financial statements 30 June 2017

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Note 1. General information

The financial statements cover Appen Limited as a Group consisting of Appen Limited (the 'Company') and the entities it controlled at the end of, or during, the half-year (collectively referred to as the 'Group'). The financial statements are presented in Australian dollars, which is Appen Limited's functional and presentation currency.

Appen Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is:

Level 6 9 Help Street Chatswood NSW 2067

A description of the nature of the Group's operations and its principal activities are included in the directors' report, which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of directors, on 28 August 2017.

Note 2. Significant accounting policies

These general purpose financial statements for the interim half-year reporting period ended 30 June 2017 have been prepared in accordance with Australian 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'.

These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 31 December 2016 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated.

New or amended Accounting Standards and Interpretations adopted

The Group 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.

The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the Group during the financial half-year ended 30 June 2017 and are not expected to have any significant impact for the full financial year ending 31 December 2017.

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

Note 3. Operating segments

Identification of reportable operating segments

The Group is organised into two operating segments based on differences in products and services provided: Content Relevance and Language Resources. These operating segments are based on the internal reports that are reviewed and used by the Group's Chief Executive Officer ('CEO'), who is identified as the Chief Operating Decision Maker, in assessing performance and in determining the allocation of resources. There is no aggregation of operating segments.

The CEO reviews a set of financial reports which covers EBITDA (earnings before interest, tax, depreciation and amortisation), revenue and operating segment reports on a monthly basis. The accounting policies adopted for internal reporting to the CEO are consistent with those adopted in the financial statements.

11

Appen Limited Notes to the consolidated financial statements 30 June 2017

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Note 3. Operating segments (continued)

Types of products and services

The principal products and services of each of these operating segments are as follows:

Content Relevance Content Relevance provides annotated data used in search technology (embedded in web, e-commerce and social engagement) for improving relevance and accuracy of search results.

Language Resources Language Resources provides data used in speech recognisers, machine translation, speech synthesisers and other machine-learning technologies resulting in more engaging and fluent devices including internet-connected devices, in-car automotive systems and speech-enabled consumer electronics.

Intersegment transactions

Intersegment transactions were made at market rates. Intersegment transactions are eliminated on consolidation.

Intersegment receivables, payables and loans

Intersegment loans are initially recognised at the consideration received. Intersegment loans receivable and loans payable that earn or incur non-market interest are not adjusted to fair value based on market interest rates. Intersegment loans are eliminated on consolidation.

Major customers

During the financial half-year ended 30 June 2017 approximately 88% (30 June 2016: 83%) of the Group's external revenue was derived from sales to five major customers.

Operating segment information

Group - 30 Jun 2017 Revenue Services revenue Interest and other income Total revenue Segment result Corporate overhead Foreign exchange gain Depreciation and amortisation Interest Profit before income tax expense Income tax expense Profit after income tax expense*	Content Relevance $'000 53,305 -	Language Resources $'000 20,747 -	Other segments $'000 - 6	Total $'000 74,052 6
	53,305	20,747	6	74,058
	8,982	7,472	(693)	15,761 (3,550) 558 (1,119) (3)
				11,647 (3,532)
				8,115

• Amortisation expense includes AUD$572,719 for the disposal of ERP system purchased in March 2014, since there is no probable future economic benefits.

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Appen Limited Notes to the consolidated financial statements 30 June 2017

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Note 3. Operating segments (continued)

Group - 30 Jun 2016 Revenue Services revenue Rent Interest Total revenue Segment result Corporate overhead Foreign exchange loss Depreciation and amortisation Interest Profit before income tax expense Income tax expense Profit after income tax expense	Content Relevance $'000 34,975 - -	Language Resources $'000 18,434 - -	Other segments $'000 - 28 4	Total $'000 53,409 28 4
	34,975	18,434	32	53,441
	6,061	7,446	(463)	13,044 (3,810) (386) (617) (4)
				8,227 (2,818)
				5,409

Geographical information

Australia US Others	Services revenue 30 Jun 2017 30 Jun 2016 $'000 $'000 18,286 16,810 54,989 36,599 777 -	Services revenue 30 Jun 2017 30 Jun 2016 $'000 $'000 18,286 16,810 54,989 36,599 777 -	Geographical non-current assets 30 Jun 2017 31 Dec 2016 $'000 $'000 1,069 666 12,082 12,169 2,405 2,445	Geographical non-current assets 30 Jun 2017 31 Dec 2016 $'000 $'000 1,069 666 12,082 12,169 2,405 2,445
	74,052	53,409	15,556	15,280

Note 4. Current assets - trade and other receivables

Trade receivables Less: Provision for impairment of receivables Other receivables Work in progress	Group 30 Jun 2017 31 Dec 2016 $'000 $'000 17,241 14,360 (76) (81)	Group 30 Jun 2017 31 Dec 2016 $'000 $'000 17,241 14,360 (76) (81)
	17,165	14,279
	550 5,500	398 7,184
	23,215	21,861

Note 5. Current liabilities - trade and other payables

Trade payables Other payables and accrued expenses	Group 30 Jun 2017 31 Dec 2016 $'000 $'000 7,827 5,842 6,541 6,335	Group 30 Jun 2017 31 Dec 2016 $'000 $'000 7,827 5,842 6,541 6,335
	14,368	12,177

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Appen Limited Notes to the consolidated financial statements 30 June 2017

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Note 6. Equity - issued capital

30 Jun 2017 Shares Ordinary shares - fully paid 97,761,955 Movements in ordinary share capital Details Date Balance 1 January 2017 Issue of shares on exercise of options 1 March 2017 Issue of shares on exercise of options 1 March 2017 Issue of shares on exercise of options 1 March 2017 Issue of shares on exercise of options 3 March 2017 Issue of shares on exercise of options 9 March 2017 Issue of shares on exercise of performance rights 10 April 2017 Issue of shares on exercise of options 16 June 2017 Balance 30 June 2017	30 Jun 2017 Shares 97,761,955		Group 31 Dec 2016 30 Jun 2017 Shares $'000 97,180,407 19,795	Group 31 Dec 2016 30 Jun 2017 Shares $'000 97,180,407 19,795	31 Dec 2016 $'000 19,510
			Shares 97,180,407 318,750 20,450 20,450 53,125 106,250 9,398 53,125	Issue price $0.500 $0.489 $0.432 $0.500 $0.500 $0.500	$'000 19,510 159 10 9 27 53 - 27 19,795
			97,761,955

Note 7. Equity - dividends

Dividends paid during the financial half-year were as follows:

Final dividend paid out of the profits reserve for the year ended 31 December 2016 of 3.0 cents per ordinary share (2016: 3.0 cents)	Group 30 Jun 2017 30 Jun 2016 $'000 $'000 2,928 2,909

Dividend declared

On 28 August 2017, the Company declared an interim dividend for the year ended 31 December 2017 of 3.0 cents per share, fully franked. The dividend is to be paid out of the profits reserve. The record date for determining entitlements to the dividend is 4 September 2017. The financial effect of these dividends has not been brought to account in the financial statements for the period ended 30 June 2017 and will be recognised in subsequent financial reports.

Note 8. Contingent liabilities

The Group has given bank guarantees as at 30 June 2017 of $133,000 (31 December 2016: $122,000) to various landlords.

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Appen Limited Notes to the consolidated financial statements 30 June 2017

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Note 9. Earnings per share

Profit after income tax attributable to the owners of Appen Limited Weighted average number of ordinary shares used in calculating basic earnings per share Adjustments for calculation of diluted earnings per share: Options and rights over ordinary shares Weighted average number of ordinary shares used in calculating diluted earnings per share Basic earnings per share Diluted earnings per share	Group 30 Jun 2017 30 Jun 2016 $'000 $'000 8,115 5,409	Group 30 Jun 2017 30 Jun 2016 $'000 $'000 8,115 5,409
	Number 97,532,356 1,293,324	Number 96,769,131 2,233,029
	98,825,680	99,002,160
	Cents 8.32 8.21	Cents 5.59 5.46

Note 10. Events after the reporting period

Apart from the dividend declared as disclosed in note 7, no other matter or circumstance has arisen since 30 June 2017 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years.

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Appen Limited Directors' declaration 30 June 2017

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In the directors' opinion:

• the attached financial statements and notes 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 give a true and fair view of the Group's financial position as at 30 June 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 directors made pursuant to section 303(5)(a) of the Corporations Act 2001.

On behalf of the directors

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_________ Christopher Vonwiller Director 28 August 2017 Sydney

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