(NZX:FMS) Half Yearly Result to 30 September 2017

The Directors of Future Mobility Solutions are pleased to report the following results for the six- month period ended 30 September 2017: o Revenue of $12.3m, an increase of $ 3.9m or 47% over the prior corresponding period ("PCP") o An increase in gross margin from $2.7m to $3.5m or 28% over the PCP o EBITDA of $0.5m compared to $0.7 in the PCP o Net loss after tax of $0.5m, down from a profit of $0.4m in the PCP This six-month period has seen the strategy to become a multi-brand marine and related technology business come to life. The acquisition of a 70% interest in Sillinger S.A.S was completed in August, and the acquisitions of Sealegs Europe S.A.S and Lancer Industries Ltd completed in September and October respectively. Accordingly, of the $3.9m increase in revenue, $1.8m related to Sillinger. Excluding Sillinger, revenue improved by 26% which was achieved on the sale of 55 Sealegs craft and 5 enablement systems which compared to 44 craft and 3 enablement systems sold by Sealegs in the PCP. Gross margin as a percentage of sales was 28% in the current period. Gross margin is likely to vary in the immediate future as it will steadily adjust to reflect all of the Group's operating businesses over a full year period. Equally, the Group is seeing margin changes as both the product mix continues to evolve and, especially, as the Group develops an increased focus on multiple boat orders to government and commercial organisations rather than pure leisure users. The ongoing transformation of the Group from one with a single operating business, to one with multiple operating businesses around the globe also required change at the Group level to facilitate this and to manage activities going forward. While this has increased the cost base of the Group, there is an expectation that cost efficiencies can be driven through the Group and will provide an offset to this longer term. This increased cost base, together with an increase in Marketing and Distribution expenses associated with increased sales resulted in a decline in EBITDA compared to that reported in the same period last year. The loss after tax of $0.5m was mainly attributable to litigation and acquisition related costs of $0.7m. These costs are classified below EBITDA in the financial statements. This is an exciting time for the Group and the Board will continue to consider acquisition opportunities if they provide a good fit both geographically and technologically. The transaction to acquire Willard Marine Incorporated continues to progress well. However, due to delays in obtaining South African regulatory approval for the acquisition of Gemini Marine, a condition precedent which was not satisfied, the sale and purchase agreement has expired. Accordingly, the acquisition will no longer proceed. The Board also noted that the various recently completed and the announced acquisitions will result in a significant increase in the scale of the Group assuming all acquisitions proceed as planned. FMS reported revenue of $17.7m in its 2017 annual financial statements. Based on an aggregation of the reported revenue from the latest annual financial statements of each of the entities expected to form part of the Group, it is expected that FMS will report Group revenue of at least double that level in the future. To be clear, this is not a forecast, but simply an indication of the scale of growth achieved through acquisition. Exchange rates used for translation purposes, together with changes in the operating landscape will all impact the revenue reported in the financial year following the year in which the acquisitions complete. For further information, please contact: Mark Broadley Future Mobility Solutions Limited Phone +64 9 414 5542 ABOUT FMS: FMS is a holding company for a number of businesses and brands focused on marine and related sectors and technologies. These brands include: Sealegs (www.sealegs.com), which is primarily engaged in the design, manufacture and sale of amphibious systems for marine craft. Sealegs also manufactures and sells a range of rigid inflatable boats fitted with the patented Sealegs System; Sillinger (www.sillinger.com) one of the most trusted manufacturers of Hypalon rigid inflatable boats to the military and defence sector; and Lancer (www.lancer.co.nz) who are Hypalon and inflatable engineers that work with customers to produce a product to meet their needs or solve a problem. End CA:00311114 For:FMS Type:HALFYR Time:2017-11-29 08:31:05