First Graphene : 2021 Preliminary Annual Report

For personal use only

ACN 007 870 760

ABN 50 007 870 760

ASX APPENDIX 4E

PRELIMINARY FINAL REPORT

FOR THE YEAR ENDED 30 JUNE 2021

(INCORPORATING INFORMATION PURSUANT TO ASX LISTING RULE 4.3A)

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ASX Appendix 4E

Details of the Reporting Period

Current reporting period:	30 June 2021
Previous corresponding reporting period:	30 June 2020
Functional Currency	Australian Dollars

Results for Announcement to the Market

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Revenue from ordinary activities

Loss from ordinary activities after tax attributable to members

Net Loss for the period attributable to members

Basic & Diluted (loss) per share

(cents per share)

30 June		30 June
2021		2020		Change
$		$		$	%
341,869		289,773		52,069	18%
(6,255,830)		(5,349,867)		(905,964)	(17%)
(6,284,757)		(5,366,149)		(918,609)	(17%)
(1.19)		(1.11)	(0.08)	(7%)

For personal

Dividends

No dividends have been paid or are proposed to be paid by First Graphene Limited and there is no dividend reinvestment plan in place / operation for the year ended 30 June 2021 (2020:Nil)

Net Tangible Assets per share

	30 June	30 June
	2021	2020
	Cents per Share	Cents per Share
Net Tangible Assets per share	1.72	2.27

Control Gained or Lost over Entities

There were no changes to control over entities by First Graphene limited or its subsidiaries during the financial year

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Details of Associates and Joint Ventures

No material impact to the consolidated group result of First Graphene Limited from the investment noted below

Name of Entity	Holding %
planarTECH (Holdings) Ltd	2.1%

Commentary on results for the period

Please refer to Results Review on Page 3

Compliance Statement

The attached Annual Financial Report has been prepared using Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ("AASB")

Audit Status

The attached Annual Financial Report for the year ended 30 June 2021 has been subject to an audit by our external auditor, BDO Audit (WA) Pty Ltd. A copy of the independent audit report to the members of First Graphene Limited is included in the accompanying Financial Report.

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Results Review for Financial Year 2021

Full Year ended 30 June	2021	2020	Variance
	A$000	A$000	%
Sales Revenue	342	290	18%
Reported Operating Profit / (Loss)	(6,285)	(5,366)	(17%)
Underlying Operating Profit / (Loss)	(5,066)	(5,366)	6%
(Reported Operating Loss, less Non-Recurring/One-off Costs)
Non-Recurring /One-off Costs*	(1,219)	-	(0%)
*Costs represented as a negative number

First Graphene Limited has a reported operating loss of AUD 6,3m before non-recurring/one off items for the Financial Year ended 30 June 2021.

Excluding these non-recurring /one-off items related to restructuring of the business, valued at AUD 1.2m, the underlying operating result is a loss of AUD 5.0m, which is a 6% improvement (AUD 0.3m) over Financial Year 2020. The primary drivers for this improved result include:

1. Improved sales in Q4 of FY 2021, setting a sound base for FY 2022
2. Cost reduction initiatives:
3. 1. Change in ERP system, reducing cost by 50%
   2. Reduced spend on consultants
   3. Headcount reduction

The One-off costs incurred in FY 2021 are primarily as result of a business restructure, which (amongst others) includes contractual payments to retiring directors (AUD 0.9m), recruitment costs for new leadership and commercial team (AUD 0.1m) and non-cash write- off of redundant intangible assets (AUD 0.25m).

First Graphene's refocused strategy is committed to rapidly growing its sales portfolio, whilst keeping its cost base under strict control and commensurate to its growth.

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For personal use only

ACN 007 870 760

ABN 50 007 870 760

ANNUAL FINANCIAL REPORT

30 JUNE 2021