SAFEROADS HOLDINGS LIMITED — Capital/Financing Update 2019

May 28, 2019

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29 May 2019

ASX ANNOUNCEMENT

Profit Guidance

Further to the advice contained in our 17 April 2019 Market update, the directors of Saferoads Holdings Limited ( ASX: SRH ) wish to provide further guidance for the FY2019 result.

We are now forecasting that total revenue for FY2019 is likely to be less than FY2018. This is predominantly due to customer deferrals for some of our domestic product sales with various project delays, resulting in reduced sales volumes in comparison to the previous financial year. Our export sales remain strong and are forecast to be well over 50% above last year.

As a result of the above factors, and based on the latest forecasts from Management, we now anticipate that the Company will generate a breakeven profit position before tax for the FY2019 year which is again dependent on timing of customer orders and delivery requirements. This is down from the previous advised profit range of $150k to $400k.

Whist the Directors are disappointed with this FY2019 profit position, a number of initiatives are underway within the business to continue to better promote our sales and services, and contain costs. We are confident that, despite the current half not providing the returns we were expecting, that we have a platform to deliver better returns in FY2020, both domestically and overseas. Our new product program, that has been ramped up over the last few years, will provide a growth platform for the coming years.

Enquiries/Additional Information:

David Ashmore, Chairman Ph: 03 5945 6600

ABOUT SAFEROADS

Saferoads is an Australian company specialising in providing innovative road safety solutions for domestic and International markets. Headquartered in Pakenham, Victoria with representation across Australia, New Zealand and the USA. The company provides state government departments, local councils, road construction companies and equipment hire companies with a broad range of products and services designed to direct, protect, inform and illuminate for the public’s safety.

SAFEROADS HOLDINGS LIMITED ABN 81 116 668 538

www.saferoads.com.au