Redflex : 2016-02-25 Appendix 4D - FY2016 First Half-Year Results

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ASX ANNOUNCEMENT

25 February 2016

REDFLEX HOLDI N GS L I M I TED ABN 96 069 306 216

Appendix 4D - FY2016 First Half-Year Results

Redflex Holdings Limited (ASX: RDF) releases its first half-year results for FY2016. Attached is the ASX Appendix 4D.

About Redflex

The Redflex Group has established itself as a world leader in traffic enforcement products and services, developing world leading enforcement camera technology and owning and operating one of the largest networks of digital speed and red-light cameras in the world. Redflex develops and manufactures a wide range of digital photo enforcement solutions including red light camera, speed camera and school bus stop arm camera systems all utilising the most advanced sensor and image capture technologies.

The Redflex Group runs its own systems engineering operations, system integration technologies and innovation centre for research and development. With our continuous development of new safety products, the Redflex Group has been helping to reduce collisions and to save lives for more than 20 years.

Paul Clark Group Chief Executive Officer Redflex Holdings Limited [e-mail] [phone]

Brad Crump Group Chief Financial Officer Redflex Holdings Limited [e-mail] [phone]

Redflex Holdings Limited was listed on the Australian Securities Exchange in January 1997. For further information:

31 MARKET STREET

SOUTH MELBOURNE VICTORIA 3205 AUSTRALIA

TELEPHONE [phone]

FACSIMILE [phone] WWW.REDFLEX.COM.AU

REDFLEX HOLDINGS LIMITED

ACN: 069 306 216

ABN: 96 069 306 216 ASX CODE: RDF

APPENDIX 4D

AND REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2015

RESULTS FOR ANNOUNCEMENT TO THE MARKET

Reporting period	Half-year ended 31 December 2015 "H1 FY16"
Previous corresponding period	Half-year ended 31 December 2014 "H1 FY15"

Redflex Holdings Limited

Interim Financial Report for half-year ended 31 December 2015

APPENDIX 4D HALF-YEAR REPORT SIX MONTHS ENDED 31 DECEMBER 2015

RESULTS FROM OPERATIONS	H1 FY16 ($'000)	H1 FY15 ($'000)
Revenue from operations	Up	8.9%	to	65,213	59,873
Profit before interest, tax, depn, amortn and impairment (PBITDAI)	Up	21.4%	to	11,351	9,347
Loss before tax	Down	73.6%	to	(2,767)	(10,463)
Loss after tax	Down	82.2%	to	(1,731)	(9,720)
H1 FY16	H1 FY15
Cents	Cents
Basic / diluted loss per share	Down	82.2%	to	(1.56)	(8.78)
Net tangible asset backing per ordinary security	Down	6.1%	to	75.13	80.00
DIVIDENDS (DISTRIBUTIONS)
No dividends have been declared in respect of H1 FY16 or H1 FY15

A review of the results for Redflex Holdings Limited ("Redflex" or "the Company") and its consolidated entities (collectively, "the Group" or "we" or "our") is included in the attached Directors' Report.

It is recommended that this Interim Financial Report for the half-year ended 31 December 2015 ("Half-Year Report") be read in conjunction with the Annual Report for the year ended 30 June 2015 and be considered together with any public announcements made by Redflex up to 25 February 2016 in accordance with the Redflex's continuous disclosure obligations (a copy of which is available on the Company's website (www.redflex.com/index.php/en/home-investor)).

This Half-Year Report is prepared in accordance with International Financial Reporting Standards ("IFRS"). This Half-Year Report has been reviewed by the Group's auditors, PricewaterhouseCooppers ("PWC"), and PWC's conclusion is attached.

Unless otherwise stated, all currencies are denominated in Australian dollars.

Note regarding non-IFRS financial information

1. Throughout this Half-Year Report, Redflex has included certain non-IFRS financial information, including PBITDAI, net debt and free cash flow.

2. This information is presented to assist readers in making appropriate comparisons with prior periods and to assess the performance of the Group. PBITDAI or EBITDAI, as it is sometimes called, is a measure frequently quoted in the industry and forms the basis upon which many investors, financiers and analysts are briefed.

3. Non-IFRS information is not reviewed by PwC.

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Redflex Holdings Limited

Interim Financial Report for half-year ended 31 December 2015

Directors' Report INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2015

Your Directors submit their report for the half-year ended 31 December 2015.

Directors

The following persons were Directors of Redflex during the half-year and up to the date of this Half-Year Report. All directors held their position as Director throughout the entire half-year

Adam Gray	Chairman
Paul Clark	Chief Executive Officer
Robert DeVincenzi	Non-Executive Director
Herman Schwarz	Non-Executive Director
Clark Davey	Non-Executive Director
David McIntyre	Non-Executive Director
Terry Winters	Non-Executive Director

Company Secretary

Craig Durham has held the position of Group General Counsel and Company Secretary for the half year up to the date of this Half- Year Report.

OPERATING AND FINANCIAL REVIEW Principal Activities

The Group began operations in 1995 and the Company's ordinary shares were listed for quotation on the Australian Securities Exchange ("ASX ") in January 1997.

The Group has established itself as a world leader in the automated traffic enforcement products and services market, a market segment of the much larger Intelligent Traffic Systems (ITS) market. The ITS market is expected to grow at a CAGR of 12% between 2015 and 2020, and reach $34 Billion by 2020.

Redflex develops and manufactures a wide range of high-performing digital photo enforcement solutions including red light, speed and school bus stop arm systems which utilise the most advanced sensor and image capture technologies available. The Group also owns and operates one of the largest networks of digital speed and red-light enforcement systems in the world.

Our continuous development of new road safety products has been helping to save lives for more than 20 years.

The Group comprises two main subsidiaries: Redflex Traffic Systems Inc. ("RTSI") is based in the United States of America ("USA"), and focuses on the Americas (incorporating the USA, Canada and South America); and Redflex Traffic Systems Pty Ltd is based in Australia and focuses on the Australian and International markets.

In the USA, RTSI operates a Build-Own-Operate-Maintain (BOOM) business model, where it provides enforcement and processing services to largely municipal (government) customers most commonly on a fully outsourced multi-year contracted basis.

The Australian and International business offers a full suite of automated enforcement products and services via direct, distribution and BOOM contracts.

Consolidated Result

For the half-year ended 31 December 2015, revenue from operations was $65.2 million which is up 8.9% as compared to the first half of the previous financial year (H1 FY15: $59.9 million).

The increased revenue was primarily attributable to:

• An increase of $4.1 million in the Australian and International business due to:

- Strong growth in the United Kingdom ("UK"), on the back of being awarded significant contracts with Highways England (formally the Highways Agency). Excluding the impact of foreign exchange the UK business has grown by 90% to £2.6 million as at 31 December 2015, in comparison with H1 FY15 revenue of £1.4 million;

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