Magontec : Appendix 4C 31 Dec 2015

Magontec GmbH ▪ Postfach 10 11 53 ▪ 46211 Bottrop

Suite 1.03, Level 1

46 Macleay St

Potts Point NSW 2011

Australia

Ph+61280054109 FAX: [phone]

29 January 2016

Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street

Sydney, NSW, 2000 Dear Sirs,

Appendix 4C - Quarter Ended 31 December 2015

In this letter are -

• Attachment 1 - Unaudited Cash Flow Statement for the 12 months to 31 December 2015

• Attachment 2 - Appendix 4C cash flow report for the quarter ended 31 December 2015

Attachment 1 is presented in the format that appears in the Company's half year and annual reports and prepared on a basis consistent with the requirements of accounting standards.

Attachment 2 is presented in the format required by Paragraph 4.7B of Chapter 4 of the ASX listing rules.

Rounding Errors
The tables in this report may indicate apparent errors to the extent of one unit (being $1,000) in -
•	the addition of items comprising total and sub totals; and
•	the comparative balances of items from the financial accounts.
Such differences arise from the process of -
•	converting foreign currency amounts to two decimal places in AUD; and
•	subsequent rounding of the AUD amounts to one thousand dollars.

Given that the Company's annual report for the year ended 31 December 2015 will be released to the market on or prior to 29 February 2016, no supplementary accounting data and Executive Chairman's report are included in this report. It is reiterated that all data presented in this report, including the starting net profit before tax in the cash flow statement in Attachment 1, is subject to change resulting from completion of the audit of the annual result to 31 December 2015.

Yours Sincerely

John Talbot Company Secretary

Attachment 1 - Statement of Cash Flows

CASH FLOW FROM OPERATING ACTIVITIES	Quarter Ended	12 Months to	9 Months to
	31-Dec-15	31-Dec-15	30 Sep 2015
	$A'000	$A'000	$A'000
Underlying operational cash flow
Profit before taxation	($1,299)	$310	$1,609
Adjustments for:
- Non-cash Equity expense	$0	$174	$174
- Depreciation & amortisation	$382	$1,775	$1,392
- Foreign currency effects(2)	$458	($957)	($1,415)
- Other Non-cash items(1)	$200	$1,354	$1,154
Cash generated from/(utilised in) underlying operating activities	($258)	$2,657	$2,914
Net working capital assets	$2,402	$937	($1,464)
- Trade and Other Receivables
- Inventory	($2,042)	$5,922	$7,964
- Trade and Other Payables	$145	($4,448)	($4,592)
- Other	($496)	($88)	$408
Cash generated from/(utilised in) net working capital asset	$8	$2,323	$2,315
Other operating activities	($234)	($1,223)	($989)
- Net Interest paid
- Income tax paid	($40)	($50)	($10)
Cash generated from/(utilised in) other operating activities	($274)	($1,273)	($999)
Net Cash generated from/(utilised in) all operating activities	($524)	$3,707	$4,231

CASH FLOW FROM INVESTING ACTIVITIES	($1,632)	($3,818)	($2,186)
Net cash out on purchase/disposal of property, plant &
equipment
Group Information Technology	($81)	($117)	($36)
Security Deposit	($73)	$894	$967
Other Financial Assets	$140	$140	$0
Other Non-current assets	($42)	($0)	$42
Net cash provided by / (used in) investing activities	($1,689)	($2,902)	($1,213)

CASH FLOW FROM FINANCING ACTIVITIES	$1,170	$677	($493)
Bank Debt
Net capital raised from issue of securities	($0)	($4)	($4)
Other	$66	$0	($66)
Net cash provided by / (used in) financing activities	$1,236	$673	($562)

Attachment 1 - Cash Flows (Continued)

Quarter Ended	12 Months to	9 Months to
31-Dec-15	31-Dec-15	30 Sep 2015
$A'000	$A'000	$A'000
Net increase / (decrease) in cash and cash equivalents	($978)	$1,478	$2,456
Foreign exchange effects on total cash flow movement	($336)	$488	$823
Cash and cash equivalents at the beginning of the reporting period	$9,714	$6,435	$6,435
Cash and cash equivalents at the end of the reporting period	$8,401	$8,401	$9,714

Note 1 Other Non-cash items - transaction in quarter ended 31 December 2015

Item	Comment	Amount
Add Back of Non-Cash Expenses		$123,537
Penalties and interest imposed by the Romanian fiscal authorities	An objection to this impost has been lodged. In the event of failure of the objection it is likely that Magontec will have a professional indemnity claim against a major accounting firm.
Impairment of assets at the Suzhou recycling plant (MAS)	The MAS cash generating unit was assessed for impairment following the decrease in volumes over 2015.	$362,158
Trade debtor dispute	No legal liability exists to make this payment. Nevertheless an amount has been provided for a possible commercial settlement.	$71,263
Deduction of Non-Cash Income		($232,168)
Non-cash income as a result of reduction in pension liability
Non-cash income as a result of reduction in other liabilities		($24,939)
Other Net Non-cash income		($99,380)
Add back net non-cash expenses		$200,471

Note 2 Decrease in unrealised foreign exchange gains in the quarter ended 31December 2015 of $458,000.