TPC CONSOLIDATED LIMITED — Earnings Release 2017

Jul 31, 2017

ASX & Media Release

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FY 2017 Updated Earnings Guidance

 Anticipated result for the financial year ended 30 June 2017:

o	Revenue	$68.9m	(FY 2016: $47.6m)
o	Gross Profit	$12.5m	(FY 2016: $7.7m)
o	EBITDA	$1.1m	(FY 2016: -$3.1m)
o	Profit before Tax	$0.8m	(FY 2016: -$3.3m)

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 Audited financial statements for FY 2017 to be released by the end of August 2017

Tuesday 1 August 2017 : The Board of TPC Consolidated Limited (TPC) today advised that the anticipated result for the year ended 30 June 2017 of the Company shows an EBITDA of $1.1m, representing a turn-around of $4.2m from the last year loss of $3.1m.

Management had taken prompt action in response to the difficult situation experienced in the energy industry in the second half year of FY 2017. While the government is reviewing and attempting to provide direction and stability into this sector, we have implemented more responsive measures to minimise the impact of wholesale energy market events.

Our business has adapted well under the volatile and uncertain circumstances. We believe that we have the right foundations for the coming years.

The anticipated result, yet to be audited, compared with the previous outlook for FY 2017:

	FY 2017 Anticipated Result	FY 2017 Previous Outlook
Revenue	$68.9m	~$60m
Gross Profit	$12.5m	~$13m
EBITDA	$1.1m	~$2.0m - ~$3.0m
Profit before Tax	$0.8m	~$1.5m - ~$2.5m

The total decrease in gross profit for the two months of January and February compared to the outlook amounted to approximately $1.1m, which was due to the adverse increase of energy costs. These costs, borne from the industry volatility over the second half of FY 2017, cumulated in a material reduction in EBITDA.

Attributable to deft steps taken by Management, we are still able to show a positive EBITDA for the second half year of FY 2017.

For further information, please contact:

Charles Huang CEO, TPC (02) 8448 0663 www.tpc.com.au

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About TPC

Established in 1996, TPC (formerly Tel.Pacific) was a significant participant in the Australian communications market. The Company’s core business centred around its mobile customer acquisition and the development of the MRTM platform (Mobile Real Time Monitoring) which is an intelligent network connected to a leading mobile network. The Company sold its pre-paid phone card business in April 2014, retaining the MRTM platform and a relatively small pre-paid mobile sim business. The Company still has wholesale customers on its MRTM platform.

Having been granted licences by the Australian Energy Regulator and Essential Services of Victoria, the Company through a specially created wholly owned subsidiary, CovaU Pty Limited, entered the electricity and gas business. The services have been rolled out from April 2014, and its focus has been on growth opportunities in the electricity and gas business along with its mobile business. TPC intends to further expand its business activities as part of its long-term growth strategy.

The CovaU energy service focuses on the SME sector and residential consumers.

TPC Consolidated Limited

ASX & Media Release

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