Redflex : FY2019 First Half Year Earnings Update

ASX ANNOUNCEMENT

30 January 2019

Redflex Holdings Limited | ABN 96 069 306 216

FY2019 First Half Year Earnings Update

Redflex Holdings Limited (ASX:RDF) wishes to provide the following update in relation to its expected earnings for the FY2019 First Half Year (ending December 31, 2018).

The Company expects to achieve an EBITDA result for FY2019 First Half Year between AUD8.7 million and AUD9.2 million (FY2018 First Half Year EBITDA: AUD5.5 million and FY2018 Full Year EBITDA: AUD12.3 million).

At the lower end of this range (AUD8.7 million), this represents an increase of:

• • 58% in the Company's EBITDA performance compared to FY2018 First Half Year EBITDA of AUD5.5 million; and

• • 28% in the Company's EBITDA performance compared to FY2018 Second Half Year EBITDA of AUD6.8 million.

This expected increase is primarily driven by:

• • an increase in sales revenue to AUD56.8 million (comparative period revenue was AUD53.2 million) attributable to conversion of new business opportunities; and

• • growth in EBITDA margins resulting from continued efficiency improvements realised across the global business.

The above expected results are preliminary in nature and are subject to review by the Company's auditor.

The Company will release its auditor reviewed Appendix 4D for the Half Year ending December 31, 2018 on or before February 28, 2019.

About Redflex

The Redflex Group has established itself as a world leader in developing and implementing intelligent traffic management products and services. Redflex develops, manufactures and operates a wide range of platformed based solutions including red light camera, speed camera, auto number plate recognition (ANPR) and school bus stop arm camera systems, all utilising advanced sensor and image capture technologies enabling active management of state and local motorways.

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 improve safety and alleviate congestion on roadways for more than 20 years.

Redflex Holdings Limited was listed on the Australian Securities Exchange in January 1997.

For further information:

Mark J. Talbot	Neville Joyce
Group Chief Executive Officer	Group Chief Financial Officer
Redflex Holdings Limited	Redflex Holdings Limited
[e-mail]	[e-mail]
[phone]	[phone]
Redflex Holdings Limited

31 Market Street (P.O. Box 720), South Melbourne, Victoria, Australia 3205 t: [phone]

e:[e-mail]

www.redflex.com