ENECO REFRESH LTD — Annual Report 2022

Aug 30, 2022

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Eneco Refresh Limited ( ACN 079 681 244) 17 Denninup Way, Malaga WA 6090 Tel: (08) 9248 7222 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 2022

Results for announcement to the market

Financial Results			June 2022	June 2021
Revenue from ordinary activities	Up	6 %	13,977,257	13,186,164
Comprehensive (Loss) from ordinary activities after tax attributable to members	Up	26.9%	(205,505)	(161,878)

Dividends	2022 Final Dividend	2021 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 2022	June 2021
Net tangible asset backing per ordinary security	$0.034	$0.035

ENECO REFRESH LIMITED and its controlled entities 1

COMMENTARY

Eneco Refresh Ltd (Eneco) is pleased to announce a 6% increase in revenue this year. Eneco has continued to grow because of its diversified product offering. It continues to manufacture at 7 bottled water factories across Australia and 1 plastic factory in Melbourne.

While freight costs are now 3 to 4 times higher than pre-COVID-19 and rises in fuel costs and electricity prices have also impacted margins, we have still been able to achieve growth and revenue increases.

Operating losses have reduced and are on track to continue improving. The decline in figures is caused by receipt of only $58,880 of New South Wales government support against $532,469 from Federal and State government support in the previous year.

Refresh Waters

Refresh Waters as whole had good sales growth of 12% compared to the same period last year.

Victoria achieved the highest growth and highest positive profit variance in Eneco this year, mostly from the supply of distilled water for commercial use.

Western Australia increased sales by 16%. This was mainly from increased supply to mining companies, benefiting both our Perth and Kalgoorlie factories.

Despite a long lockdown in New South Wales and negative growth for several months in the first half of the year, it caught up rapidly in the second half and closed with 10% growth for the year.

The Northern Territory continues to feel the impact of floods and road closures coupled with government mandated isolations. The local economy is reliant on the tourism sector, which remains weak at the moment, but it is expected that the new financial year will bring improvements in this region.

Queensland experienced revenue growth and profit, helped by very good sales to Woolworths.

Refresh Plastics

Refresh Plastics had a high demand for its Ampi activity toys and containers for sanitisers in the previous financial year. These have slowed this financial year.

Refresh Plastics also lost the Petainer distributorship when Petainer set up their own factory in Thailand. Once the non-compete restraint was over, we successfully secured the Dolium one-way keg distributorship. This is anticipated to boost sales this financial year when stocks start arriving in November 2022.

ENECO REFRESH LIMITED and its controlled entities 2

A breakdown by Cash Generating Units is presented below.

Revenue Western Australia New South Wales Victoria Northern Territory Queensland Refresh Waters Refresh Plastics Total Profit/(Loss) Western Australia New South Wales Victoria Northern Territory Queensland Refresh Waters Refresh Plastics Corporate Expenses Total	FY 2022 FY 2021 $'000 $'000 3,654 3,143 2,336 2,129 1,724 1,385 1,392 1,491 2,319 2,060 11,425 10,208 2,553 2,978 13,978 13,186 155 267 303 219 191 73 -356 -212 187 131 480 478 -122 -168 358 310 -564 -472 -206 -162	Variance 16% 10% 24% -7% 13% 12% -14% 6% -42% 38% 162% -68% 43% 0% 27% -25% -19% -27%

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 2022

Note Revenue 2a Cost of Sales 2b Gross Profit Other Income Other Expense Marketing Expenses Distribution Expenses Administrative Expenses Occupancy Expenses Results from operating activities Finance Income 2c Finance Costs 2d (Loss) before income tax Income tax expense (Loss) after income tax Other comprehensive income Item not reclassified subsequently to profit or loss: Fair value gain/(loss) on financial assets at fair value through OCI Total comprehensive loss for the period Basic and diluted loss per share (cents)	Note	CONSOLIDATED 2022 $ 2021 $
		13,977,257 13,186,164 (8,572,147) (8,094,098)
		5,405,110 5,092,066 66,643 (14,235) 548,270 - (614,394) (725,852) (1,758,164) (1,652,525) (2,372,458) (2,306,464) (1,047,362) (906,886)
		(334,860) 48,609 8,195 15,045 121,160 (225,532)
		(205,505) (161,878) - -
		(205,505) (24,628) (161,878) 149,419
		(230,133) (12,459)
		(0.075) (0.059)

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 2022

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 2022 2021 $ $
	3 4 7 5	1,283,574 1,454,871 1,275,871 1,213,716 130,175 80,744 1,993,991 2,042,695 34,361 34,361
		4,717,972 4,826,387
		6,618,342 6,788,318 562,171 562,171 16,400 22,800 50,000 50,000 2,846,062 3,940,172
		10,092,975 11,363,461
		14,810,947 16,189,848
		1,023,580 974,746 - - 982,246 949,227 683,173 494,207
		2,688,999 2,418,180
		- - 25,616 40,966 2,200,324 3,604,561
		2,225,940 3,645,527
		4,914,939 6,063,707
		9,896,008 10,126,141
		18,320,875 18,320,875 191,712 191,712 356,409 356,409 50,683 75,311 (9,023,671) (8,818,166)
		9,896,008 10,126,141

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 2022

Balance at 1 July 2020 Fair value gain on available- for sale financial assets Total (Loss) for the year Balance at 30 June 2021 Balance at 1 July 2021 Fair value gain on available- for sale financial assets Total (Loss) for the year Balance at 30 June 2022	Issued Capital Other Reserves Financial Assets Revaluation Reserve 2014 Profit Reserve Accumulated Losses Total 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
	18,320,875 191,712 75,311 356,409 (8,818,166) 10,126,141 - - (24,628) - - (24,628) 18,320,875 191,712 50,683 356,409 (8,818,166) 10,101,513 - - - - (205,505) (205,505) 18,320,875 191,712 50,683 356,409 (9,023,671) 9,896,008

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 2022

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 used in investing activities Cash flows from financing activities Repayments of borrowings Other- AASB 16 Prepayment for the Principal Net cash flows used in financing activities Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	CONSOLIDATED 2022 2021 $ $
	14,474,803 13,633,748 (13,899,805) (12,846,634) - (9,633) 8,195 15,045 58,880 532,469
	642,073 1,324,995
	9,250 62,291 (329,396) (528,829) (18,228) 348,943 - -
	(338,374) (117,595)
	- (432,906) (474,996) (746,356)
	(474,996) (1,179,262)
	(171,297) 28,138 1,454,871 1,426,733
	1,283,574 1,454,871

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 2022

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 2022 Revenue from external customers EBITDA Depreciation Expense Finance Income Finance Costs Segment operating profit/(loss) Total assets Total liabilities 30 June 2021 Revenue from external customers EBITDA Depreciation Expense Finance Income Finance Costs Segment operating profit/(loss) Total assets Total liabilities

WA NSW VIC NT QLD Plastics OTHER (Corporate) TOTAL 3,653,801 2,336,193 1,724,149 1,392,093 2,318,496 2,552,525 - 13,977,257 334,780 263,821 244,697 (279,234) 270,459 (171,344) (564,281) 98,898 (342,775) (64,496) (53,930) (76,819) (173,480) (56,156) (767,656) 1,056 - - - 5 17 7,117 8,195 (40,465) 58,176 - - (15,397) 118,846 - 121,160 154,922 303,530 190,767 (356,052) 187,532 (121,941) (564,263) (205,505) 4,397,128 1,174,122 928,714 4,399,861 1,371,578 1,771,421 768,122 14,810,947 1,144,152 726,196 537,653 431,612 1,067,837 685,710 321,777 4,914,939 3,143,119 2,129,393 1,384,398 1,491,301 2,059,510 2,978,443 - 13,186,164 638,271 380,590 116,969 (134,409) 340,943 261,984 (476,107) 1,128,241 (323,403) (323 403) (137,829) (44,328) (77,217) (182,276) (314,579) - (1,079,632) 2,370 - - - 7 30 12,638 15,045 (49,945) (24,221) - - (28,145) (114,962) (8,259) (225,532) 267,293 218,540 72,641 (211,626) 130,529 (167,527) (471,728) (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 22,181 - - 1,130,603 2,096,086 269,024 6,063,707

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 2022

2. REVENUE AND EXPENSES

a. Revenue Production and distribution of bottled water and accessories Production and distribution of plastic products b. Cost of Sales Inventory expensed Inventory write-off/(write-back) c. Finance Income Interest received d. Finance Costs Finance charges payable under finance leases and hire purchase contracts e. Employee Benefits Expense Wages and salaries Workers compensation costs Superannuation costs Provisions for annual and long service leave Other employee benefits expense f. Depreciation & Amortisation Depreciation expense	CONSOLIDATED 2022 2021 $ $
	11,424,732 10,207,721 2,552,525 2,978,443
	13,977,257 13,186,164
	8,627,233 8,203,104 (55,086) (109,006)
	8,572,147 8,094,098
	8,195 15,045
	8,195 15,045
	121,160 (225,532)
	121,160 (225,532)
	2,597,488 2,580,765 75,439 68,566 399,387 393,713 623,611 74,957 23,958 226,500
	3,719,883 3,344,501
	767,656 1,079,632
	767,656 1,079,632

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 2022

3. TRADE AND OTHER RECEIVABLES

	CONSOLIDATED	CONSOLIDATED
	2022	2021
Current	$	$
Trade receivables	1,254,668	1,166,674
Provision for expected credit losses	(16,327)	(7,357)
Other receivables	37,530	54,399
	1,275,871	1,213,716
Movement in the provision for expected credit losses of trade receivables:
Balance at the beginning of the year	7,357	23,409
Additional provision for expected credit losses of trade receivables	15,120	6,119
Receivables written off during the year as uncollectable	(6,150)	(22,171)
Balance at the end of the year	16,327	7,357

Allowance for expected credit losses

The Group has recognised $6,150 (2021: $22,171) in profit or loss in respect of the expected credit losses for the year ended 30 June 2022.

4. INVENTORIES

Raw materials (at cost) Finished goods (at cost) Total inventories at cost Provision for slow moving inventories	CONSOLIDATED 2022 2021 $ $
	1,310,356 1,212,747 789,363 880,904
	2,099,719 2,093,651 (105,728) (50,956)
	1,993,991 2,042,695

5. TRADE AND OTHER PAYABLES

Current Trade payables Other payables	CONSOLIDATED 2022 2021 $ $
	777,265 721,860 246,315 252,886
	1,023,580 974,746

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

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 2022

6. ACQUISITION

Nil

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

On 30 June 2022, Refresh Eneco owns 16,400,000 shares in Eve Health Group Ltd, which is listed on the Australian Securities Exchange (ASX:EVE). This is carried in its books at $0.001 per share, being the last traded price on ASX on 30 June 2022. 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 2022 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