ENECO REFRESH LTD — Annual Report 2021

Aug 30, 2021

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Eneco Refresh Limited ( ACN 079 681 244) 17 Denninup Way, Malaga WA 6090 Tel: (08) 9248 3006 Fax: (08) 9248 7233 Email: info@eneco-refresh.com.au Website: www.eneco-refresh.com.au

Appendix 4E

Preliminary Final Report period ending 30 June 2021

Results for announcement to the market

Financial Results			June 2021	June 2020
Revenue from ordinary activities	Up	16.9%	13,186,164	11,284,764
Comprehensive (Loss) from ordinary activities after tax attributable to members	Down	84.5%	(161,878)	(1,044,466)

Dividends	2021 Final Dividend	2020 Final Dividend
Amount per Ordinary Security	nil	nil
Franked amount per Security	N/A	N/A
Record date for determining entitlements to final dividend	N/A

Net Tangible Asset Backing	June 2021	June 2020
Net tangible asset backing per ordinary security	$0.04	$0.04

ENECO REFRESH LIMITED and its controlled entities 1

COMMENTARY

Eneco Refresh Ltd (Group) is pleased to announce that it has achieved a 17% increase in revenue and trimmed its loss by 85% compared to the previous financial year. The effect of COVID-19 lockdowns has been felt across the country. Despite that, the Group has done well and is able to grow because of its diversified product offering. Every Cash Generating Unit achieved positive variance both in revenue and bottom line. The Federal and State government packages have helped in reducing losses.

Refresh Waters

Sales growth in New South Wales, Victoria, and Queensland improved partly because since September 2020, our 2-litre Demineralised Water has been sold in all Woolworths supermarkets (with the exception of Western Australia and Northern Territory). This is in addition to our 5-litre Refresh Pure Water being sold in Woolworths for the last 16 years (with the exception of South Australia and Tasmania).

New South Wales continued to do well and our custom labelled bottled water sales picked up significantly.

Victoria was unfortunately badly affected by many lockdowns, resulting in only a marginal increase in profitability.

Sales in the Northern Territory have overtaken Victoria, which reflects positively on our strategy to acquire the only single-serve bottled water factory in the Top End.

Queensland had excellent revenue growth of 20% and also achieved the highest variance in profitability. Refresh Waters bought back a 51% share of our Queensland business on 2 January 2019, making it a wholly-owned subsidiary. Under our management, it has achieved record profit.

Refresh Plastics

Refresh Plastics achieved excellent growth of 17%. This is despite it no longer selling Petainer one-way PET kegs, which used to be about 5% of total revenue. Petainer refused to take back raw materials and finished goods worth $93,000. We have progressively written down the value of these stocks, with $70,000 written off in the current financial year. Refresh Plastics’ loss would otherwise have been much lesser.

A breakdown by Cash Generating Units is presented below.

ENECO REFRESH LIMITED and its controlled entities 2

COMMENTARY (continued)

Revenue Western Australia New South Wales Victoria Queensland Northern Territory Refresh Waters Refresh Plastics Total Profit/(Loss) Western Australia New South Wales Victoria Queensland Northern Territory Refresh Waters Refresh Plastics Goodwill Impairment Corporate Expenses Total	FY 2021 FY 2020 $'000 $'000 3,143 2,981 2,129 1,875 1,385 1,263 2,060 1,836 1,491 860 10,208 8,815 2,978 2,470 13,186 11,285 267 179 219 203 73 68 131 57 -212 -567 478 -60 -168 -266 478 -326 - -243 -472 -475 -162 -1,044	Variance
		5% 14% 10% 12% 73% 16% 21% 17% 49% 8% 7% 130% 63% 897% 37% 247% 1% 85%

ENECO REFRESH LIMITED and its controlled entities 3

PRELIMINARY FINAL REPORT CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021

Note Revenue 2a Cost of Sales 2b Gross Profit Other Income Marketing Expenses Distribution Expenses Administrative Expenses Occupancy Expenses Impairment of Goodwill Results from operating activities Finance Income 2c Finance Costs 2d (Loss) before income tax Income tax expense (Loss) for the year from continuing operations Profit/(Loss) for the year from discontinued operations (Loss) after income tax Other comprehensive income Fair value gain on financial assets at fair value through OCI Total comprehensive loss for the period Basic and diluted loss per share (cents)	Note	CONSOLIDATED 2021 $ 2020 $	CONSOLIDATED 2021 $ 2020 $
		13,186,164 (8,094,098)	11,284,764 (6,960,122)
		5,092,066 548,270 (725,852) (1,652,525) (2,306,464) (906,886) -	4,324,642 366,971 (715,347) (1,637,376) (2,138,575) (1,042,005) (243,007)
		48,609 15,045 (225,532)	(1,084,697) 37,657 (34,480)
		(161,878) -	(1,081,520) -
		(161,878) - (161,878) 149,419	(1,081,520) - (1,081,520) 37,054
		(12,459)	(1,044,466)
		(0.005)	(0.380)

The accompanying notes form part of the Statement of Comprehensive Income

ENECO REFRESH LIMITED and its controlled entities 4

PRELIMINARY FINAL REPORT CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021

ASSETS Current Assets Cash and cash equivalents Trade and other receivables Prepayments Inventories Current tax asset Total Current Assets Non-Current Assets Property, plant and equipment Intangible assets Financial assets at fair value through OCI Investment in associate Right of use asset Total Non-Current Assets TOTAL ASSETS LIABILITIES Current Liabilities Trade and other payables Financial liabilities Short-term provisions and accruals Lease liabilities Total Current Liabilities Non-current Liabilities Financial liabilities Long-term provisions Lease liabilities Total Non-Current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves 2014 profit reserve Financial asset revaluation reserve Accumulated losses TOTAL EQUITY	Notes	CONSOLIDATED 2021 2020 $ $
	3 4 7 5	1,454,871 1,426,733 1,213,716 1,167,604 80,744 106,557 2,042,695 2,067,551 34,361 34,361
		4,826,387 4,802,806
		6,788,318 6,768,068 562,171 562,171 22,800 222,324 50,000 50,000 3,940,172 1,831,383
		11,363,461 9,433,946
		16,189,848 14,236,752
		974,746 734,418 - 232,906 733,048 964,918 494,207 313,300
		2,202,001 2,245,542
		- 200,000 257,145 63,017 3,604,561 1,589,593
		3,861,706 1,852,610
		6,063,707 4,098,152
		10,126,141 10,138,600
		18,320,875 18,320,875 191,712 191,712 356,409 356,409 75,311 (74,108) (8,818,166) (8,656,288)
		10,126,141 10,138,600

The accompanying notes form part of the Statement of Financial Position

ENECO REFRESH LIMITED and its controlled entities 5

PRELIMINARY FINAL REPORT CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS AT 30 JUNE 2021

Balance at 1 July 2019 Fair value gain on available- for sale financial assets Total (Loss) for the year Balance at 30 June 2020 Balance at 1 July 2020 Fair value gain on available- for sale financial assets Total (Loss) for the year Balance at 30 June 2021	Issued Capital Other Reserves Financial Assets Revaluation Reserve 2014 Profit Reserve Accumulated Losses Total 18,320,875 191,712 (111,162) 356,409 (7,574,768) 11,183,066 - - 37,054 - - 37,054
	18,320,875 191,712 (74,108) 356,409 (7,574,768) 11,220,120 - - - - (1,081,520) (1,081,520)
	18,320,875 191,712 (74,108) 356,409 (8,656,288) 10,138,600
	18,320,875 191,712 (74,108) 356,409 (8,656,288) 10,138,600 - - 149,419 - - 149,419 18,320,875 191,712 75,311 356,409 (8,656,288) 10,288,019 - - - - (161,878) (161,878) 18,320,875 191,712 75,311 356,409 (8,818,166) 10,126,141

The accompanying notes form part of the Statements of Changes in Equity

ENECO REFRESH LIMITED and its controlled entities 6

PRELIMINARY FINAL REPORT CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021

Cash flows from operating activities Receipts from customers Payments to suppliers and employees Borrowing costs Interest received Government grants and tax incentives Net cash flows provided by operating activities Cash flows from investing activities Proceeds from sale of property, plant and equipment, and investment Purchase of property, plant and equipment Investment Intellectual property Net cash flows provided by/(used in) investing activities Cash flows from financing activities Repayments of borrowings Other- AASB 16 Prepayment for the Principal Net cash flows provided by/(used in) financing activities Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	CONSOLIDATED 2021 2020 $ $
	13,633,748 11,585,583 (12,846,634) (12,215,499) (9,633) (34,480) 15,045 37,657 532,469 344,883
	1,324,995 (281,856)
	62,291 70,642 (528,829) (228,612) 348,943 (50,000) - (100,380)
	(117,595) (308,350)
	(432,906) (247,938) (746,356) -
	(1,179,262) (247,938)
	28,138 (838,144) 1,426,733 2,264,877
	1,454,871 1,426,733

The accompanying notes form part of the Statement of Cash Flows

ENECO REFRESH LIMITED and its controlled entities 7

PRELIMINARY FINAL REPORT NOTES TO AND FORMING PART OF PRELIMINARY FINAL REPORT FOR THE YEAR ENDED 30 JUNE 2021

1. SEGMENT INFORMATION

The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (chief operating decision makers) in assessing performance and determining the allocation of resources.

In identifying its operating segments, management follows the geographical location of the Group’s bottled water business, but show Refresh Plastics separately. Corporate costs are included under “Other”. Segment information can be analysed as follows for the reporting period under review.

30 June 2021 Revenue from external customers EBITDA Depreciation Expense Finance Income Interest Expense Segment operating profit/(loss) Total assets Total liabilities 30 June 2020 Revenue from external customers EBITDA Depreciation Expense Finance Income Interest Expense Segment operating profit/(loss) Material items include: Impairment of goodwill Total assets Total liabilities

WA NSW VIC NT QLD Plastics OTHER (Corporate) TOTAL

3,143,119 2,129,393 1,384,398 1,491,301 2,059,510 2,978,443 - 13,186,164 589,496 356,570 116,969 (134,409) 312,799 147,022 (476,107) 912,340 (323,403) (137,829) (44,328) (77,217) (182,276) (314,579) - (1,079,632) 2,370 - - - 7 30 12,638 15,045 (1,374) - - - - - (8,259) (9,633) 267,088 218,741 72,642 (211,625) 130,530 (167,527) (471,727) (161,878) 4,293,830 762,571 571,253 4,449,509 2,057,481 3,125,920 929,284 16,189,848 2,545,813 22,182 --1,130,603 2,096,086 269,024 6,063,708 2,980,956 , 1,874,603 1,263,191 860,5821,835,660 2,469,772 - 11,284,764 343,596 251,972 121,981 (553,651) (98,866) (198,867) (518,250) (652,085) (163,635) (48,654) (53,701) (13,521) (87,929) (68,351) - (435,791) 701 - - - 421 859 35,676 37,657 (2,100) - - - - - (32,380) (34,480) 178,562 203,318 68,280 (567,172) (186,374) (266,359) (514,954) (1,084,699) - - - -(243,007) - - (243,007) 2,684,144 843,021 595,001 4,418,801 1,137,666 3,560,754 997,365 14,236,752 947,455 119,076 710 - 96,866 2,273,974 660,071 4,098,152

ENECO REFRESH LIMITED and its controlled entities 8

PRELIMINARY FINAL REPORT NOTES TO AND FORMING PART OF PRELIMINARY FINAL REPORT FOR THE YEAR ENDED 30 JUNE 2021

2. REVENUE AND EXPENSES

Revenue Sale of bottled water, accessories and beverages; plastics blow moulding Cost of Sales Inventory expensed Inventory write-off/(write-back) Finance Income Interest received Finance Costs Finance charges payable under finance leases and hire purchase contracts Employee Benefits Expense Wages and salaries Workers compensation costs Superannuation costs Provisions for annual and long service leave Other employee benefits expense Depreciation & Amortisation Depreciation expense	CONSOLIDATED 2021 2020 $ $
	13,186,164 11,284,764
	13,186,164 11,284,764
	8,203,104 6,994,137 (109,006) (34,015)
	8,094,098 6,960,122
	15,045 37,657
	15,045 37,657
	225,532 34,480
	225,532 34,480
	2,583,733 2,687,188 68,566 94,055 393,713 391,646 74,957 82,180 223,532 242,451
	3,344,501 3,497,520
	1,079,632 666,231
	1,079,632 666,231

a. Revenue

b. Cost of Sales

c. Finance Income

d. Finance Costs

e. Employee Benefits Expense

f. Depreciation & Amortisation

ENECO REFRESH LIMITED and its controlled entities 9

PRELIMINARY FINAL REPORT NOTES TO AND FORMING PART OF PRELIMINARY FINAL REPORT FOR THE YEAR ENDED 30 JUNE 2021

3. TRADE AND OTHER RECEIVABLES

TRADE AND OTHER RECEIVABLES
Current Trade receivables Provision for impairment of receivables Other receivables	CONSOLIDATED 2021 2020 $ $
	1,166,674 1,039,089 (7,357) (23,409)
	1,159,317 1,015,680 54,399 151,924
	1,213,716 1,167,604

Consolidated 2021 Trade receivables Other receivables 2020 Trade receivables Other receivables	Gross Amount Past due and impaired Past due but not impaired (days overdue) Within initial trade terms 31-60 61-90 >90
	1,159,317 (7,357) 352,193 86,245 20,840 707,396 54,399 - - - - 54,399
	1,213,716 (7,357) 352,193 86,245 20,840 761,795
	1,015,680 (23,409) 271,187 77,226 - 690,676 151,924 - - - - 151,924
	1,167,604 (23,409) 271,187 77,226 - 842,600

4. INVENTORIES

Raw materials (at cost) Finished goods (at cost) Total inventories at cost Provision for slow moving inventories	CONSOLIDATED 2021 2020 $ $
	1,212,747 1,290,715 880,904 817,587
	2,093,651 2,108,302 (50,956) (40,751)
	2,042,695 2,067,551

ENECO REFRESH LIMITED and its controlled entities 10

PRELIMINARY FINAL REPORT NOTES TO AND FORMING PART OF PRELIMINARY FINAL REPORT FOR THE YEAR ENDED 30 JUNE 2021

5. TRADE AND OTHER PAYABLES

Current Trade payables Other payables	CONSOLIDATED 2021 2020 $ $
	721,860 520,970 252,886 213,448
	974,746 734,418

Trade payables are non-interest bearing and are normally settled on 60-day terms.

6. ACQUISITION

Nil

7. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (OCI)

On 30 June 2021, Refresh Eneco owns 5,700,000 shares in Eve Investments Ltd, which is listed on the Australian Securities Exchange (ASX:EVE). This is carried in its books at $0.004 per share, being the last traded price on ASX on 30 June 2021. The fair value changes have been accounted for through OCI.

8. SIGNIFICANT EVENTS

Nil

9. EVENTS AFTER THE BALANCE SHEET DATE

Nil

10. CONTINGENT ASSETS & LIABILITIES

There is no contingent liability between 30 June 2021 and the date of this report.

11. BASIS FOR PREPARATION

This preliminary final report has been prepared in accordance with ASX listing rule 4.3A and the disclosure requirements of ASX Appendix 4E. The accounting policies adopted in the preparation of the preliminary final report are consistent with those adopted in the preparation of the annual financial report.

12. UNAUDITED APPENDIX 4E

This report is in the process of being audited.

ENECO REFRESH LIMITED and its controlled entities 11