WATERCO LIMITED — Earnings Release 2016

Jun 22, 2016

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WATERCO LTD A.B.N. 62 002 070 733 36 South Street, Rydalmere NSW 2116 Ph: + 61 2 9898 8600 Fx: + 61 2 9898 1877 www.waterco.com

23 JUNE 2016

Waterco Limited (ASX Code: WAT)

WATERCO LIMITED ANNOUNCES PROFIT UPGRADE

Waterco Limited is pleased to advise that the projected Group Net Profit After Tax for the current financial year has been upgraded to $2.4 million. This is an improvement of 20% on the previous guidance of $2.0 million given on 25 November 2015 and 60% on the $1.5 million reported for the last financial year.

Group sales were steady, while better inventory and cost control were the main factors for the improvement in performance.

Interest expense was also significantly lower, as a result of lower working capital, achieved mainly through lower inventory levels. During the year, Waterco Limited has restructured its banking facilities and the Commonwealth Bank of Australia is now its principal banker.

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About Waterco Ltd – www.waterco.com.au

Established in 1981 and listed on the ASX in 1989, Waterco (ASX:WAT) manufactures and distributes a diverse range of products for the international swimming pool and water treatment markets. Waterco is also the franchisor of Swimart, Australia and New Zealand's largest network of pool and spa retail outlets, and is also the distributor of Zane Pool Heating solutions via a network of Australian dealerships.

Waterco delivers high quality, innovative products at exceptional value in over 40 countries. This includes a comprehensive range of swimming pool & spa equipment and chemicals as well as domestic and industrial water treatment equipment. The company’s head office is in Sydney, Australia with international offices, manufacturing plants and warehouses located in Australia, New Zealand, Malaysia, Indonesia, Singapore, China, US, Canada, France and the UK.

For further information, please contact:

Sze Tin Lim t: +61 2 9898 8646 e: szetin@waterco.com