RANGE INTERNATIONAL LIMITED — Interim / Quarterly Report 2018

Apr 26, 2018

ASX Announcement (ASX:RAN)

27 April 2018

Appendix 4C March Quarter 2018

Range International Limited ('Range International' or 'Company'), manufacturer of Re>Pal™ recycled plastic pallets, presents its Appendix 4C for the quarter ended 31 March 2018.

HIGHLIGHTS

• Cash balance at the end of the March 2018 quarter was US$6.6M
• Sales of $564k for the quarter, representing the best quarter to date
• Revenue per kilogram of raw material increased to highest level yet which highlights operational efficiencies
• New board with active involvement in the business and a fresh perspective
• Head count across all areas of the business reduced by 50%
• Plastic raw material costs have reduced by 37% due to improved focus on this key ingredient
• Electricity costs have been lowered
• Operational and design efficiencies continue to optimise pallet weight per application to maximise margin while delivering optimal client satisfaction
• New Indonesian Sales Manager with strong logistics experience commenced in March, 2018
• Retention of Philippines Sales Manager with strong pipeline
• Strong pipeline of sales opportunities

OPERATIONAL UPDATE

The business achieved its best sales quarter to date and is continuing to see growth with repeat customers starting to form a strong backbone for the Company.

Sales are now focused in Indonesia and the Philippines

A new mould for the Philippines will be ready for testing in this quarter and trial shipments to new customers are expected to start in June.

The Company and its equipment suppliers continue to work together to resolve the remaining operational issues, however this is no longer critical to the success of the Company due to the availability of good stock material

The Company has reduced the electricity costs by installing capacitor banks and more efficient use of the extruders.

FINANCIALS

Sales for the quarter totalled $564k, representing the best quarter to date.

Closing cash on hand at 31 March 2018 was $6.6m.

During the quarter, the Company has significantly reduced the operating costs of the business, particularly around staff costs and raw material costs. We strive to drive operating costs down further and will see the benefit in the next quarter. As a result, the board has extended the Company's cash runway beyond the first quarter of 2019 and based on current sales targets being met does not see a requirement for additional capital funding.

OUTLOOK

The results of the strategic overhaul of the business has provided a platform for growth and our focus is firmly on sales performance. Recruitment of new sales staff in Indonesia will continue into the June quarter to increase our reach of potential customers and extend and expand our relationships with existing clients.

Matthew Darby Executive Chairman

About Range International:

Range is a manufacturer of plastic pallets. Our ThermoFusion™ technology allows Range to make plastic pallets from 100% recycled plastic at a price that is competitive with wood pallets. Range currently has production lines operating in Indonesia and sells its pallets under the brand Re>Pal™. Range is scaling up its operations in Indonesia. In the medium term, the Company's goal is to establish a global production footprint and sales distribution network.

Media: media@rangeinternational.com

Investor Relations: investors@rangeinternational.com

+Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

RANGE INTERNATIONAL LIMITED

ABN Quarter ended ("current quarter")

22611998200 March 2018

March 2018
------------	--

	Consolidated statement of cash flows	Current quarterUS$'000	Year-to-date(3 months)US$'000
1.	Cash flows from operating activities
1.1	Receipts from customers	494	494
1.2	Payments for
	(a)research and development	-	-
	(b)product manufacturing and operatingcosts	(626)	(626)
	(c)sales, advertising and marketing costs	(36)	(36)
	(d)leased assets	-	-
	(e)staff costs	(739)	(739)
	(f)administration and corporate costs	(644)	(644)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	22	22
1.5	Interest and other costs of finance paid	(4)	(4)
1.6	Income taxes paid	(48)	(48)
1.7	Government grants and tax incentives	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash (used in) operating activities	(1,581)	(1,581)

1 September 2016 Page 1

	Consolidated statement of cash flows	Current quarterUS$'000	Year-to-date(3 months)US$'000
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a)property, plant and equipment	(1,312)	(1,312)
	(b)businesses (see item 10)	-	-
	(c)investments	-	-
	(d)intellectual property	-	-
	(e)other non-current assets	-	-
2.2	Proceeds from disposal of:
	(a)property, plant and equipment	-	-
	(b)businesses (see item 10)	-	-
	(c)investments	-	-
	(d)intellectual property	-	-
	(e)other non-current assets	-	-
2.3	Cash flows from loans to other entities
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash (used in) investing activities	(1,312)	(1,312)

3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	-
3.2	Proceeds from issue of convertible notes	-
3.3	Proceeds from exercise of share options	-
3.4	Transaction costs related to issues ofshares, convertible notes or options	-
3.5	Proceeds from borrowings	-
3.6	Repayment of borrowings	-
3.7	Transaction costs related to loans andborrowings	-
3.8	Dividends paid	-
3.9	Other (provide details if material)	-
3.10	Net cash from financing activities	-

Consolidated statement of cash flows		Current quarterUS$'000	Year-to-date(3 months)US$'000
4.	Net (decrease) in cash and cashequivalents for the period	(2,893)	(2,893)
4.1	Cash and cash equivalents at beginning ofquarter/year to date	9,656	9,656
4.2	Net cash (used in) operating activities(item 1.9 above)	(1,581)	(1,581)
4.3	Net cash (used in) investing activities(item 2.6 above)	(1,312)	(1,312)
4.4	Net cash from financing activities (item 3.10above)	-	-
4.5	Effect of movement in exchange rates oncash held	(139)	(139)
4.6	Cash and cash equivalents at end ofquarter	6,624	6,624

5.	Reconciliation of cash and cashequivalentsat the end of the quarter (as shown in theconsolidated statement of cash flows) to therelated items in the accounts	Current quarterUS$'000	Previous quarterUS$'000
5.1	Bank balances	6,624	9,656
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end ofquarter	6,624	9,656

6. Payments to directors of the entity and their associates Current quarter

• 6.1 Aggregate amount of payments to these parties included in item 1.2 75
• 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3

US$'000
-

6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

6.1 Directors remuneration.

7.	Payments to related entities of the entity and theirassociates	Current quarterUS$'000
7.1	Aggregate amount of payments to these parties included in item 1.2	14
7.2	Aggregate amount of cash flow from loans to these parties includedin item 2.3	-
7.3	Include below any explanation necessary to understand the transactions included in

7.1 Payments to associate entity of Director.

items 7.1 and 7.2

8.Financingfacilities availableAdd notes as necessary for anunderstanding of the position	Total facility amountat quarter endUS$'000	Amount drawn atquarter endUS$'000
8.1Loan facilities	-	-
8.2Credit standby arrangements	-	-

• 8.3 Other (please specify) - 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

9.	Estimated cash outflows for next quarter	US$'000
9.1	Research and development	-
9.2	Product manufacturing and operating costs	(738)
9.3	Advertising and marketing	(113)
9.4	Leased assets	-
9.5	Staff costs	(448)
9.6	Administration and corporate costs	(322)
9.7	Other – Pasuruan Factory Capital expenditure	(428)
9.8	Total estimated cash outflows (excludes revenue)	(2,049)

10.	Acquisitions and disposals ofbusiness entities(items 2.1(b) and 2.2(b) above)	Acquisitions	Disposals
10.1	Name of entity	-	-
10.2	Place of incorporation orregistration	-	-
10.3	Consideration for acquisition ordisposal	-	-
10.4	Total net assets	-	-
10.5	Nature of business	-	-

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
• 2 This statement gives a true and fair view of the matters disclosed.

Sign here: Date: 27 April 2018

Company Secretary

Print name: Kim Bradley-Ware

Notes

• 1. The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.
• 1. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.
• 1. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.