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1 Appendix 4D Half-year report 1. Company details Name of entity: ABN: Reporting period: For the half-year ended 31 December 2015 Previous period: For the half-year ended 31 December Results for announcement to the market Revenues from ordinary activities up 11.0% to 17,395 Normalised Earnings Before Interest, Tax, Depreciation and Amortisation ('EBITDA') up 102.8% to 1,302 Profit from ordinary activities after tax attributable to the owners of Flat Glass Industries Limited up 368.9% to 605 Profit for the half-year attributable to the owners of Flat Glass Industries Limited up 368.9% to 605 Dividends There were no dividends paid, recommended or declared during the current financial period. Comments The profit for the consolidated entity after providing for income tax amounted to $605,000 (31 December 2014: loss of $225,000). For detailed commentary on results for the half-year, refer to the 'Reviews of operations' section within the attached Directors' report. The following table summarises the key reconciling items between EBITDA adjusted for impairment and share of losses from associates (Normalised 'EBITDA') and statutory profit/(loss) after tax attributable to the owners of Flat Glass Industries Limited. $'000 Consolidated 31/12/ /12/2014 $'000 $'000 Revenue 17,395 15,674 Normalised EBITDA 1, Less: Depreciation and amortisation (565) (558) Less: Interest expense (202) (208) Add: Recovery of impairment of assets Profit/(loss) before income tax expense and share of loss of associate 696 (124) Share of losses of associate accounted for using the equity method (91) (101) Profit/(loss) after income tax expense for the half-year attributable to the owners of Flat Glass Industries Limited 605 (225)

2 Appendix 4D Half-year report 3. Net tangible assets Reporting period Cents Previous period Cents Net tangible assets per ordinary security Control gained over entities Not applicable. 5. Loss of control over entities Not applicable. 6. Dividends Current period There were no dividends paid, recommended or declared during the current financial period. Previous period There were no dividends paid, recommended or declared during the previous financial period. 7. Dividend reinvestment plans Not applicable. 8. Details of associates and joint venture entities Reporting entity's percentage holding Contribution to profit/(loss) (where material) Reporting Previous Reporting Previous period period period period Name of associate / joint venture % % $'000 $'000 Rayson RTK Pty Ltd / associate 37.00% 37.00% (91) (101) Group's aggregate share of associates and joint venture entities' profit/(loss) (where material) Profit/(loss) from ordinary activities before income tax (91) (101) Income tax on operating activities Foreign entities Details of origin of accounting standards used in compiling the report: Not applicable.

3 Appendix 4D Half-year report 10. Audit qualification or review Details of audit/review dispute or qualification (if any): The financial statements were subject to a review by the auditors and the review report is attached as part of the Interim Report. 11. Attachments Details of attachments (if any): The Interim Report of for the half-year ended 31 December 2015 is attached. 12. Signed Signed Date: 24 February 2016 Nicholas O'Connor Director Sydney

4 ABN Interim Report - 31 December 2015

5 Directors' report 31 December 2015 The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 31 December Directors The following persons were directors of during the whole of the financial half-year and up to the date of this report, unless otherwise stated: James Schwarz - Chairman Nicholas O Connor Frank D'Urso Lawrence Case Principal activities During the financial half-year the principal continuing activities of the consolidated entity consisted of the wholesaling and processing of glass and other products for the residential and commercial building industry. Review of operations The profit for the consolidated entity after providing for income tax amounted to $605,000 (31 December 2014: loss of $225,000). This profit/(loss) includes an equity-accounted loss of $91,000 (31 December 2014: $101,000) from the metals business. With an 11% increase in revenue to $17,395,000 (31 December 2014: $15,674,000) and continuing control of costs and labour, the consolidated entity returned to profit during the current half-year. This improvement is all due to the Victorian glass operation and, so, while the directors remain generally optimistic, they continue to reflect on the difficult trading conditions experienced in construction over the previous seven years. The following table summarises the key reconciling items between Normalised Earnings Before Interest, Tax, Depreciation, Amortisation, Impairment and Share of Losses from Associates (Normalised 'EBITDA') and statutory profit/(loss) after tax attributable to the owners of. Consolidated 31/12/ /12/2014 $'000 $'000 Revenue 17,395 15,674 Normalised EBITDA 1, Less: Depreciation and amortisation (565) (558) Less: Interest expense (202) (208) Add: Recovery of impairment of assets Profit/(loss) before income tax expense and share of loss of associate 696 (124) Share of losses of associate accounted for using the equity method (91) (101) Profit/(loss) after income tax expense for the half-year attributable to the owners of Flat Glass Industries Limited 605 (225) Capacity constraints in Victoria have been continually alleviated by investment in plant and equipment, and this program will continue, together with planned extensions to the Dandenong factory. The Sydney glass operation continues to suffer from loss of market share to direct import replacements, however changes to product mix and to equipment will allow that branch to adapt to market needs. The consolidated entity s plastics division experienced a small reduction in profitability, but on increased turnover. Significant changes in the state of affairs There were no significant changes in the state of affairs of the consolidated entity during the financial half-year. 1

6 Directors' report 31 December 2015 Rounding of amounts The company is of a kind referred to in Class Order 98/100, issued by the Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, the nearest dollar. Auditor's independence declaration A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 follows this directors' report. This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act On behalf of the directors Nicholas O'Connor Director 24 February 2016 Sydney 2

7 AUDITOR S INDEPENDENCE DECLARATION TO THE DIRECTORS OF FLAT GLASS INDUSTRIES LIMITED In relation to the independent review of the half-year ended 31 December 2015, I declare that to the best of my knowledge and belief, there have been no contraventions of: i. the auditor independence requirements of the Corporations Act 2001 in relation to the review; and ii. any applicable code of professional conduct in relation to the review. Nexia Court & Co Chartered Accountants Lester Wills Partner Sydney Dated: 24 February

8 Contents 31 December 2015 Contents Statement of profit or loss and other comprehensive income 5 Statement of financial position 6 Statement of changes in equity 7 Statement of cash flows 8 Notes to the financial statements 9 Directors' declaration 13 Independent auditor's review report to the members of 14 General information The financial statements cover as a consolidated entity consisting of Flat Glass Industries Limited and the entities it controlled at the end of, or during, the half-year. The financial statements are presented in Australian dollars, which is 's functional and presentation currency. is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is: 3 Moorebank Avenue Moorebank NSW 2170 A description of the nature of the consolidated entity's operations and its principal activities are included in the directors' report, which is not part of the financial statements. The financial statements were authorised for issue, in accordance with a resolution of directors, on 24 February The directors have the power to amend and reissue the financial statements. 4

9 Statement of profit or loss and other comprehensive income For the half-year ended 31 December 2015 Consolidated Note 31/12/ /12/2014 $'000 $'000 Revenue 3 17,395 15,674 Other income Expenses Raw materials and consumables used (7,225) (6,587) Occupancy costs (837) (847) Administration and overhead expenses (1,067) (1,051) Employee expenses (6,515) (6,077) Depreciation and amortisation expense (565) (558) Distribution expenses (486) (477) Recovery of impairment of assets Share of losses of associate accounted for using the equity method (91) (101) Finance costs (202) (208) Profit/(loss) before income tax expense 605 (225) Income tax expense - - Profit/(loss) after income tax expense for the half-year attributable to the owners of 605 (225) Other comprehensive income for the half-year, net of tax - - Total comprehensive income for the half-year attributable to the owners of Flat Glass Industries Limited 605 (225) Cents Cents Basic earnings per share (0.33) Diluted earnings per share (0.33) The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 5

10 Statement of financial position As at 31 December 2015 Consolidated 31/12/ /06/2015 $'000 $'000 Assets Current assets Cash and cash equivalents Trade and other receivables 4,670 5,179 Inventories 4,164 4,487 Prepayments Total current assets 10,078 10,218 Non-current assets Investments accounted for using the equity method Other financial assets 1 1 Property, plant and equipment 5,311 4,482 Intangibles Total non-current assets 6,217 5,479 Total assets 16,295 15,697 Liabilities Current liabilities Trade and other payables 2,606 3,249 Borrowings 3,915 3,617 Employee benefits 1,366 1,330 Total current liabilities 7,887 8,196 Non-current liabilities Borrowings Employee benefits Total non-current liabilities Total liabilities 8,391 8,398 Net assets 7,904 7,299 Equity Issued capital 21,266 21,266 Accumulated losses (13,362) (13,967) Total equity 7,904 7,299 The above statement of financial position should be read in conjunction with the accompanying notes 6

11 Statement of changes in equity For the half-year ended 31 December 2015 Issued Accumulated Total capital losses equity Consolidated $'000 $'000 $'000 Balance at 1 July ,561 (13,326) 7,235 Loss after income tax expense for the half-year - (225) (225) Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year - (225) (225) Balance at 31 December ,561 (13,551) 7,010 Issued Accumulated Total capital losses equity Consolidated $'000 $'000 $'000 Balance at 1 July ,266 (13,967) 7,299 Profit after income tax expense for the half-year Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year Balance at 31 December ,266 (13,362) 7,904 The above statement of changes in equity should be read in conjunction with the accompanying notes 7

12 Statement of cash flows For the half-year ended 31 December 2015 Consolidated 31/12/ /12/2014 $'000 $'000 Cash flows from operating activities Receipts from customers (inclusive of GST) 19,636 16,931 Payments to suppliers and employees (inclusive of GST) (18,308) (16,556) 1, Other revenue Interest and other finance costs paid (202) (208) Net cash from operating activities 1, Cash flows from investing activities Payments for property, plant and equipment (756) (116) Proceeds from disposal of property, plant and equipment 59 5 Net cash used in investing activities (697) (111) Cash flows from financing activities Net proceeds from debtor finance Repayment of borrowings - related party (200) (100) Proceeds/(repayment) of leases (74) (60) Net cash from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial half-year Cash and cash equivalents at the end of the financial half-year The above statement of cash flows should be read in conjunction with the accompanying notes 8

13 Notes to the financial statements 31 December 2015 Note 1. Significant accounting policies These general purpose financial statements for the interim half-year reporting period ended 31 December 2015 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'. These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2015 and any public announcements made by the company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated. New, revised or amending Accounting Standards and Interpretations adopted The consolidated entity has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the consolidated entity during the financial half-year ended 31 December 2015 and are not expected to have any significant impact for the full financial year ending 30 June Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Comparatives Certain comparative expense categories in the statement of profit or loss and other comprehensive income have been reclassified for consistency with the current period presentation. Revenue and net profit have not changed. Note 2. Operating segments Identification of reportable operating segments The consolidated entity is organised into three operating segments: Glass, Plastic and Other. These operating segments are based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources. While the CODM receives separate reports for the glass processing plants in Sydney and Melbourne, the plants have been aggregated into one operating segment as they have similar average gross margins and similar expected growth rates. The CODM reviews both adjusted earnings before interest, tax, depreciation and amortisation and impairment ('EBITDA') and profit before income tax. The information reported to the CODM is on at least a monthly basis. Types of products and services The principal products and services of each of these operating segments are as follows: Glass Glass processing plants in Sydney and Melbourne Plastic Plastic extrusion, including the Star Plug operations Other Other non-reportable segments including investments in associate Intersegment transactions Intersegment transactions were made at market rates. Intersegment transactions are eliminated on consolidation. Intersegment receivables, payables and loans Intersegment loans are initially recognised at the consideration received. Intersegment loans receivable and loans payable that earn or incur non-market interest are not adjusted to fair value based on market interest rates. Intersegment loans are eliminated on consolidation. 9

14 Notes to the financial statements 31 December 2015 Note 2. Operating segments (continued) Operating segment information Intersegment eliminations/ Glass Plastic Other unallocated Total Consolidated - 31/12/2015 $'000 $'000 $'000 $'000 $'000 Revenue Sales to external customers 16, ,388 Intersegment sales (588) - Total sales revenue 17, (588) 17,388 Other revenue Total revenue 17, (588) 17,395 Adjusted EBITDA 1, ,302 Depreciation and amortisation (565) Recovery of impairment of assets 161 Finance costs (202) Share of losses of associates accounted for using the equity method (91) Profit before income tax expense 605 Income tax expense - Profit after income tax expense 605 Assets Segment assets 20, ,997 (32,118) 16,295 Total assets 16,295 Total assets includes: Acquisition of non-current assets 1, ,278 Liabilities Segment liabilities 22, ,871 (24,266) 8,391 Total liabilities 8,391 10

15 Notes to the financial statements 31 December 2015 Note 2. Operating segments (continued) Intersegment eliminations/ Glass Plastic Other unallocated Total Consolidated - 31/12/2014 $'000 $'000 $'000 $'000 $'000 Revenue Sales to external customers 15, ,668 Intersegment sales (479) - Total revenue from continuing operations 15, (479) 15,668 Other revenue (322) 6 Total revenue 15, (801) 15,674 Adjusted EBITDA (320) 642 Depreciation and amortisation (558) Finance costs (208) Share of losses of associate accounted for using the equity method (101) Loss before income tax expense (225) Income tax expense - Loss after income tax expense (225) Consolidated - 30/06/2015 Assets Segment assets 19, ,141 (31,404) 15,697 Total assets 15,697 Liabilities Segment liabilities 21, ,066 (23,641) 8,398 Total liabilities 8,398 Note 3. Revenue Consolidated 31/12/ /12/2014 $'000 $'000 Sales revenue Sale of goods and services 17,388 15,668 Other revenue Other revenue 7 6 Revenue 17,395 15,674 Note 4. Other income Consolidated 31/12/ /12/2014 $'000 $'000 Net gain on disposal of property, plant and equipment 15 2 Insurance recoveries 22 5 Other income

16 Notes to the financial statements 31 December 2015 Note 5. Equity - dividends There were no dividends paid, recommended or declared during the current or previous financial half-year. Note 6. Fair value measurement The carrying values of financial assets and financial liabilities presented represent a reasonable approximation of fair value. Note 7. Contingent liabilities There are no contingent liabilities as at 31 December 2015 and 30 June Note 8. Related party transactions During the financial half-year year the consolidated entity had paid rent of $374,105 (2014: $368,214), electricity and water charges of $147,353 (2014: $172,350) and interest paid of $14,996 (2014: $28,603) to a director-related entity. As at 31 December 2015 the loan from the director-related entity amounted to $150,000 (30 June 2015: $350,000), which was reduced by $200,000 during the financial half-year. Note 9. Events after the reporting period No matter or circumstance has arisen since 31 December 2015 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years. Note 10. Earnings per share Consolidated 31/12/ /12/2014 $'000 $'000 Profit/(loss) after income tax attributable to the owners of 605 (225) Number Number Weighted average number of ordinary shares used in calculating basic earnings per share 81,118,560 69,017,547 Adjustments for calculation of diluted earnings per share: Options 2,000,000 - Weighted average number of ordinary shares used in calculating diluted earnings per share 83,118,560 69,017,547 Cents Cents Basic earnings per share 0.75 (0.33) Diluted earnings per share 0.73 (0.33) The weighted average number of ordinary shares for 2014 has been restated for the effect of the rights issue (6 for every 10 shares) completed in January 2015, in accordance with AASB 133 'Earnings per share'. Number Weighted average number of ordinary shares used in calculating basic earnings per share (before restatement) 67,018,039 Adjustment required by AASB 133 'Earnings per share' 1,999,508 Weighted average number of ordinary shares used in calculating basic earnings per share (after restatement) 69,017,547 12

17 Directors' declaration 31 December 2015 In the directors' opinion: the attached financial statements and notes comply with the Corporations Act 2001, Australian Accounting Standard AASB 134 'Interim Financial Reporting', the Corporations Regulations 2001 and other mandatory professional reporting requirements; the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 31 December 2015 and of its performance for the financial half-year ended on that date; and there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. Signed in accordance with a resolution of directors made pursuant to section 303(5)(a) of the Corporations Act On behalf of the directors Nicholas O'Connor Director 24 February 2016 Sydney 13

18 INDEPENDENT AUDITOR S REVIEW REPORT INDEPENDENT AUDITOR S REVIEW REPORT TO THE MEMBERS OF FLAT GLASS INDUSTRIES LIMITED We have reviewed the accompanying half-year financial report of, which comprises the Statement of Financial Position as at 31 December 2015, Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the halfyear ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors declaration of the consolidated entity comprising Flat Glass Industries Limited (the Company) and the entities it controlled at the period s end or from time to time during the half year. Directors Responsibility for the Interim Financial Report The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the interim financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity s financial position as at 31 December 2015 and its performance for the half year ended on that date; and complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations As auditor of, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report. A review of an interim financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Independence In conducting our review, we complied with the independence requirements of the Corporations Act

19 Conclusion Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of and controlled entities is not in accordance with the Corporations Act 2001, including: a) giving a true and fair view of the consolidated entity s financial position as at 31 December 2015 and of its performance for the half-year ended on that date; and b) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations Nexia Court & Co Chartered Accountants Lester Wills Partner Sydney Dated: 24 February