Compumedics : Appendix 4D – Half yearly Report and accounts to 31 Dec 2016

COM PU M EDICS LIMITED

(ACN 006 854 897)

ASX Half-year information 31 December 2016

Lodged with the ASX under Listing Rule 4.2A.3

This information should be read in conjunction with the 30 June 2016 Annual Report.

Contents

Results for Announcement to the Market 2

(Appendix 40 item 2)

Half-year report 5

(ASX Listing rule 4.2A1)

Supplementary Appendix 40Information 23

Half-year ended 31 December 2016

(Previous corresponding period: Half-year ended 31 December 2015)

Results for Announcement to the Market

$'000
Revenue from continuing operations (Appendix 40 item 2.1)	Down 7% or $1,167k	to	16, 191
Profit before interest and tax (A$'000)	Down 71% or $1,166k	to	483
Profit after tax attributable to members (Appendix 40 item 2.2)	Down 88% or $1,637k	to	226
Net Profit for the period attributable to members (Appendix 40 item 2.3)	Down 88% or $1,637k	to	226

Dividends/ distributions (Appendix 40 item 2.4)	Amount per security	Franked amount per security
Final dividend (prior year)	n/a	n/a

Record date for determining entitlements to the dividend

(Appendix 40 item 2.5)

n/a

No interim dividend has been declared

Explanation of Revenue (Appendix 40 item 2.6)

The Company generated $16.2m in revenues from the sa le of goods and services, which was 7°/olower than the prior corresponding half­ year period (pep). At 31 December 2016, the Company was holding

$3.0m in sales orders to ship, down from $5.0m at 30 June 2016.

Revenues shipped and invoiced for the six-month period to 31 December 2016 were lower than the pep due to the following factors :

1. Sales in Asia, and in particular China were very strong, but were offset by lower sales out of the US, Europe and the OWL business. In both the US and OWL, business that was expected to be booked, $2m and $1m respectively, in December was not. This did not become apparent until late in the month of December. That business has not been lost, just not received in the time frame anticipated. Some of that business ($1.0m) has subsequently been received.

2. Other parts of the Company, including Australia, the Middle East and Latin America performed in accordance with plan.

Explanation of Profit after tax (Appendix 40 item 2.6)

Profit after tax for the half-year to 31 December 2016 was $0.2m compared to $1.9m for the prior corresponding half-year.

The decline in the profitability of the Company over the pep was primarily a result of the short fall in sales and shipments, and some increased expenses associated with the new growth initiatives. These were offset by improvements in gross margins.

The Company remains committed to its strategic growth plans, whilst at the same time improving productivity and efficiency throughout the business in order to continue to generate consistent and growing profits.

Explanation of Dividends {Appendix 4D item 2.6J

No dividends were declared or paid in the period.

Net Tangible Asset {NTA) Backing (Appendix 40 item 3)

2016	2015
Net tangible asset backing per ordinary share	9.2 cents	6.2 cents

Net tangible assets of $16.139m divided by issued ordinary shares of 177.163m =9.2 cents per share

Half-year report -31December 2016 Contents Page

Directors' Report 5

Auditor's independence declaration 8

Interim financial report

Consolidated statement of profit or loss and

other comprehensive income 9

Consolidated statement of financial position 11

Consolidated statement of changes in equity 12

Consolidated statement of cash flows 13

Notes to the financial statements for the half-year 14

ended 31December 2016

Directors' declaration 20

Independent auditor's review report 21

Supplementary Appendix 40 information 23

This interim financial report does not include a ll the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30June 2016and any public announcements made by Compumedics Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 and Australian Stock Exchange Listing Rules.