Half Yearly Reports to 30 September 2018

Half Year Report
For the six months to 30 September 2018

Page 2

OPERATIONS REPORT 30 September 2018


OVERVIEW


Blis Technologies Limited (Company) reports a consolidated net deficit of $500k before tax for the six months
ended 30 September 2018 (HY19). This represents an improvement of $746k from the $1,246k net deficit
recorded for the six months ended 30 September 2017 (HY18).


The Company reports an increase in total revenue for HY19 of 47% ($980k) compared to the same period last
year (HY19 $3,052k and HY18 $2,072k). All regions and channels recorded growth during HY19 compared with
HY18.


Key Highlights for HY19 include:

• All regions and channels experiencing at least double-digit growth over the same period last year
• iNova Pharmaceuticals agreement finalised to distribute BLIS branded finished goods across selected markets
in Asia Pacific and Africa (Australia, sub-Saharan Africa and Asia). Australia launch expected by the end of
FY19.
• BLIS branded finished products launched on Amazon USA platform
• New launches by our European Distributor:
o BLIS K12
TM
based product: Denmark, Belgium, Netherlands, UAE
o BLIS M18
TM
based product: Poland
• Regulatory approvals:
o BLIS M18
TM
Self affirmed GRAS in USA
o BLIS K12
TM
based products approved in Russia and Belgium
• ThroatGuard PRO
TM
with BLIS K12
TM
is the highest selling throat lozenge YTD in New Zealand (NZ)
pharmacy.
• Approval received for a Growth Grant from Callaghan Innovation, providing20% rebate on qualifying Research
and Development spend.

Key Challenges for HY19 include:
• Long lead times with new customer initiatives
• Navigation of regulatory pathways
• Limited resources for targeting accelerated growth opportunities.

FINANCIAL

The Company reports a consolidated net deficit for HY19 of $500k (HY18: $1,246k net deficit) before tax. This
includes interest income of $3k received during HY19 ($3k for HY18).

Australasian sales grew by 44% to $697k in HY19, $213k higher than HY18 ($484k). The new relationship with
Radiant Health as our distributor within the NZ pharmacy channel has been in operation since March 2018 with
positive results in sales growth. Based on Pharmacy Retail Sales ThroatGuard Pro
TM
is the number one throat
lozenge in NZ. NZ based web sales have also increased compared with the same period last year. Australia sales
have been relatively small while we prepare for a full listed complementary medicine launch in the Australian
market with our distribution partner iNova late in this financial year.

Sales in Europe of $1,304k were up 28% ($285k) compared to HY18 ($1,019k). This growth reflects a recovery of
sales in Poland following the change of ownership of BLIS K12
TM
based ENTitis products to Maspex Group, their
launch of a BLIS M18
TM
based product, and continued growth of their toddler targeted product. We have also
seen launches of BLIS K12
TM
based products in Denmark, Belgium and the Netherlands. During this period our
distribution partners have been preparing for the launch of a BLIS K12
TM
powder format targeting younger children
in several countries.

Sales in Asia of $487k show a growth of $267k compared to HY18 ($220k), being a 121% increase. The main
contributor to this growth has been a return to regular ordering in Japan during HY19. China remains challenging

Page 3

and we are focusing our attention towards establishing cross border e-commerce (CBEC) opportunities for our Blis
branded product range to complement future China domestic opportunities.

North American ingredients sales increased 41% to $437k during HY19 compared with sales in HY18 ($310k).
This growth confirms a return to normal ordering patterns by our distributor and robust customer demand based on
both the stable base of customers and new launches. Amazon USA sales have been building consistently and
further campaign activity is planned for the range but particularly the throat health products in line with the USA
winter.

Total expenses of $3,552k in HY19 were 7% up on HY18 ($3,318k), consisting of an increase of 18% in variable
selling costs and an increase in remaining expenses of 5%. The company has continued to invest in marketing
activity including the expansion of our e-commerce channel, expanding our regulatory approvals and ensuring a
robust pipeline. During HY19, a key initiative has been investment to grow our Blis branded products opportunities
in NZ retail, and across e-commerce channels, in particular Amazon USA. This will provide the Company with
longer term value and a higher share of profit margins as we get closer to our ultimate customer.

No tax was payable and no dividend will be paid.

Net consolidated cash outflow from operating activities in HY19 was $166k (HY18: $545k cash outflow).

Investment in HY19 totalled $65k (HY18: $80k) reflecting further investment in finished goods manufacturing and
capitalisation of patent costs.

As at 30 September 2018, the Company held a net working capital position of $1,131k (HY18 $1,145k) which the
directors believe is sufficient to support its current business.


BUSINESS DEVELOPMENT STRATEGY PROGRESS

Blis Technologies Limited was formed to commercialise BLIS
TM
advanced probiotic bacteria in consumer products
targeted at oral health applications such as for ear, nose and throat health, halitosis (bad breath), gum and teeth
health and immune support.

We are world leaders in the commercial applications of these commensal probiotic bacteriocin-producing microbes
used to enhance oral health.

The board and management are focused on three core areas to ensure long-term sustainable profitable growth:
Positioning, Supply Chain and Product Pipeline.

Positioning:

We continue to focus on being a supplier of BLIS™ branded finished goods (including prominent co-branding) to
help ensure that the Company is recognised as the source. This is based on our increased understanding of the
customer value proposition and supported by credible clinical data. At the same time, branded ingredient sales
will be actively managed recognising this important revenue stream. Along with the retail channel activity the
Company is committing investment to drive e-commerce sales of our BLIS
TM
branded finished products – growing
the BLIS website, sales on Amazon platform and in the future targeting China cross border e-commerce
opportunities. Progress during HY19 included:

• A full range of BLIS
TM
branded finished products launched on Amazon USA
• All regions and channels showing growth over the same period last year
• iNova agreement finalised to distribute BLIS branded finished good across selected markets in Asia
Pacific and Africa. Australia launch for late FY19.
• ThroatGuard PRO
TM
with BLIS K12
TM
is the highest selling throat lozenge YTD in NZ pharmacy
• Based on consumer feedback, both Travel Protect
TM
and the Fresh Breath Kit
TM
has been updated and
improved.
• Launched HoneyBlis
TM
Ginger

Supply Chain:

Developing internal expertise and processes as a primary means of managing the supply chain is a critical aspect
in controlling key facets of the business. Quality control is a focus to ensure delivery of a safe and efficacious
product. We see the Company as the core source of knowledge about our BLIS™ products.

Page 4


In line with this priority, during HY19, we have:
• Fully commissioned a new tablet press to meet capacity and quality requirements
• Implemented packaging improvements focused on improving product quality.
• Established a relationship with GMP Pharmaceuticals to produce Australia products to meet TGA
(Therapeutic Goods Administration) requirements.


Product Pipeline:

Utilising our scientific knowledge to develop new product opportunities is the third area of focus. The science and
technology base (from research and development through clinical studies to the end-product) is at the core of the
business and underpining our brand.

To accelerate both new strain development and new product development (NPD) during the period we are:
• Continuing NPD to further enhance our portfolio – output has included upgrades to the Travel Protect
TM

and Fresh Breath Kit
TM
offerings and the launch of HoneyBlis
TM
Ginger.
• Undertaking intensive development activity related to the patented BLIS Q24
TM
, the skin probiotic strain in
our pipeline.
• New strain library mining to identify priority development candidates.
• Sponsorship of a PhD project looking at formulating food products with BLIS probiotics
• Approval received for a Growth Grant from Callaghan Innovation, providing 20% rebate on qualifying
Research and Development spend.

REGULATORY

Similar to the process we have already completed with BLIS K12
TM
we have completed USA self-affirmed GRAS
for BLIS M18
TM
and have lodged an application with the FDA for full no objection GRAS status.

Following the Australian Therapeutic Goods Administration (TGA) approval of BLIS K12
TM
as a listed
complementary medicine ingredient, an application was lodged for an equivalent use of BLIS M18
TM
building on
this success and knowledge.

In Europe, our distributor’s customers in Russia and Belgium have had BLIS K12
TM
based products approved for
launch.

In India, with our partner Raj Nakra Associates (RNA), we have an application lodged with the Food Safety and
Standards Authority of India for both BLIS K12
TM
and BLIS M18
TM
.

OUTLOOK

The first half year has seen good growth in revenue across all regions compared with the same period last year.
With the second half year of sales aligning with the northern hemisphere winter and new customer/ market
opportunities, including the first supply for an expanded Australia launch we reaffirm our existing market guidance.

Full financial year (FY19) guidance - revenue in excess of $7.0 m, an EBITDA in excess of $0.6 m and a small net
surplus before tax.





Tony Offen
Chairman Brian Watson
Chief Executive

16
th
day of November 2018

Page 5

BLIS TECHNOLOGIES LIMITED
CONSOLIDATED CONDENSED INTERIM INCOME STATEMENT
For the 6 Months Ended 30 September 2018

Notes 6 mths 6 mths 12 mths
30 Sep 18 30 Sep 17 31 Mar 18
(Unaudited) (Unaudited) (Audited)
$’000 $’000 $’000
REVENUES
Revenue 6.3 3,049 2,069 5,285
Interest received 3 3 3
────── ─────── ───────
3,052 2,072 5,288

LESS
Distribution expenses 44 42 87
Marketing expenses 248 330 402
Occupancy expenses 70 98 156
Operating expenses 3,180 2,847 5,677
Finance expenses 10 1 8
────── ────── ──────
3,552 3,318 6,330
────── ────── ──────
SURPLUS / (DEFICIT) BEFORE TAX (500) (1,246) (1,042)

Income tax expense - - -
_______ _______ _______

SURPLUS / (DEFICIT) FOR THE PERIOD (500) (1,246) (1,042)
══════ ══════ ═══════

Surplus/(deficit) for the period is attributed to:

Equity holders of the parent (500) (1,246) (1,042)
_______ _______ _______

(500) (1,246) (1,042)
══════ ══════ ═══════



Earnings per Share:

Basic (cents per ordinary share) (0.05) (0.11) (0.09)
Diluted (cents per ordinary share) (0.05) (0.11) (0.09)

Page 6

BLIS TECHNOLOGIES LIMITED
CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
For the 6 Months Ended 30 September 2018
6 mths 6 mths 12 mths
30 Sep 18 30 Sep 17 31 Mar 18
Notes (Unaudited) (Unaudited) (Audited)
$’000 $’000 $’000

Surplus/(deficit) for the period (500) (1,246) (1,042)
Other comprehensive income - - -
────── ────── ──────
Total Comprehensive Income/(Deficit) for the Period (500) (1,246) (1,042)
══════ ══════ ══════



CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY


EQUITY AT BEGINNING OF THE PERIOD 3,007 4,017 4,017

Total comprehensive income (deficit) for the period (500) (1,246) (1,042)
Share option equity reserve - - 32

────── ────── ──────
EQUITY AT END OF PERIOD 2,507 2,771 3,007
══════ ══════ ══════

Page 7

BLIS TECHNOLOGIES LIMITED
CONSOLIDATED CONDENSED INTERIM BALANCE SHEET
As at 30 September 2018

30 Sep 18 30 Sep 17 31 Mar 18
Notes (Unaudited) (Unaudited) (Audited)
$’000 $’000 $’000


CURRENT ASSETS
Cash and short term deposits 767 451 1,059
Accounts receivable 674 808 694
Prepayments 54 46 89
Inventory 368 281 343
─────── ────── ───────
1,863 1,586 2,185

LESS CURRENT LIABILITIES
Accounts payable 632 435 581
Income in advance 0 1 -
Current borrowings 52 - 121
Foreign exchange contracts 48 5 10
─────── ─────── ───────
732 441 712

WORKING CAPITAL 1,131 1,145 1,473


NON CURRENT ASSETS
Property, plant and equipment 745 570 785
Finite life intangible assets 706 981 843
Long term bank deposits 75 75 75
─────── ──────── ────────
1,526 1,626 1,703
NON CURRENT LIABILITIES
Non-current borrowings 150 - 169

─────── ──────── ────────
NET ASSETS 2,507 2,771 3,007
═══════ ════════ ════════


OWNERS’ EQUITY
Share capital 3 37,338 37,298 37,338
Share option equity reserve 46 54 46
Retained earnings/(deficits) (34,877) (34,581) (34,377)
______ ______ ______
TOTAL EQUITY 2,507 2,771 3,007
═══════ ════════ ════════




Tony Offen Brian Watson
Chairman Chief Executive Officer

These Financial Statements have been authorised for issue 16
th
November 2018

Page 8

BLIS TECHNOLOGIES LIMITED
CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASHFLOWS
For the 6 Months Ended 30 September 2018
Note 6 mths 6 mths 12 mths
30 Sep 18 30 Sep 17 31 Mar 18
(Unaudited) (Unaudited) (Audited)
$’000 $’000 $’000
CASH FLOWS FROM OPERATING ACTIVITIES

Cash was provided from (applied to):
Receipts from customers 3,069 2,410 5,734
Interest received 3 3 3
Payments to suppliers and employees (3,228) (2,958) (5,611)
Finance Costs (10) - (8)
_______ _______ _______

Net cash inflow/ (outflow) from operating activities 2 (166) (545) 118

CASH FLOWS FROM INVESTING ACTIVITIES

Cash was provided from (applied to):
Capitalised intangible costs (17) (54) (121)
Purchase of property, plant and equipment (48) (26) (355)
────── ────── ──────
Net cash inflow (outflow) from investing activities (65) (80) (476)

CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided from (applied to):
Drawdown of borrowings - - 290
Repayment of share option - - 32
Repayment of borrowings (19) - -
────── ────── ──────
Net cash inflow (outflow) from financing activities (19) - 322

─────── ─────── ───────
Net increase/ (decrease) in cash held (250) (625) (36)


Add cash and short term deposits at start of period 1,059 1,065 1,065
Foreign exchange differences (42) 11 30
─────── ─────── ───────
Balance at end of period 767 451 1,059
═══════ ═══════ ═══════

COMPRISED OF:

Cash and short term deposits 767 451 1,059
________ ________ _______
Total 767 451 1,059
═══════ ═══════ ══════

Page 9

BLIS TECHNOLOGIES LIMITED
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL
STATEMENTS
For the 6 Months Ended 30 September 2018
1. SUMMARY OF ACCOUNTING POLICIES
Statement of Compliance
The unaudited condensed interim consolidated financial statements presented are those of Blis Technologies
Limited and its non-trading subsidiary Blis Functional Foods Limited (Group). The principal activity of Blis
Technologies Limited (referred to as Blis or the Company) is developing healthcare products based on strains of
bacteria that produce Bacteriocin-Like Inhibitory Substances (BLIS). The Company is a profit oriented entity,
registered in New Zealand under the Companies Act 1993. The Company is a "FMC Reporting Entity" for the
purposes of the Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013 and its annual financial
statements comply with these Acts.
The unaudited interim financial statements are prepared in accordance with Generally Accepted Accounting Practice
(NZ GAAP) and comply with the New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS),
as appropriate for interim financial statements (NZ IAS 34). The interim financial statements should be read in
conjunction with the Group annual report for the year ended 31 March 2018.
Basis of Preparation
The financial statements have been prepared on the basis of historical cost. Cost is based on the fair values of the
consideration given in exchange for assets.
Accounting policies are selected and applied in a manner which ensures that the resulting financial information
satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions
or other events is reported.
The financial statements are presented in thousands of New Zealand dollars.
The condensed interim financial statements do not include all the information required for full financial statements.
The same accounting policies and methods of computation are followed in these interim financial statements as
were applied in the preparation of the Company’s financial statements for the year ended 31 March 2018 except in
relation to the adoption of new or amended standards as set out below.
New or amended standards adopted by the Group
A number of new or amended standards became applicable for the Group for the current reporting period and the
Group had to amend its accounting policies as a result of adopting the following standards:
• NZ IFRS 9 Financial Instruments; and
• NZ IFRS 15 Revenue from Contracts with Customers
Adoption of NZ IFRS 15 Revenue from Contracts with Customers from 1 April 2018 has not resulted in material
adjustments to the amount recognised in the financial statements. Revenue from the sale of Blis products is
recognised at a point in time when control of the goods passes to the customer, as disclosed at Notes 6.2 and 6.3.

Page 10

BLIS TECHNOLOGIES LIMITED

NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL
STATEMENTS
Adoption of NZ IFRS 9 Financial Instruments from 1 April 2018 has not resulted in material adjustments to the
amount recognised in the financial statements. Cash and short term deposits and accounts receivable are classified
as financial assets at amortised cost.”
Going Concern
The financial statements have been prepared based on an assumption of going concern.
The Group has recorded a net deficit of $500k for HY19 (HY18: deficit $1,246k).
The Directors believe the going concern assumption is valid, reaching such a conclusion after having regard to the
circumstances which they consider reasonably likely to affect the Group during the period of one year from the date
these financials statements are approved.
Specifically, the Group held cash reserves of $767k as at 30 September 2018 which is considered sufficient to meet
its working capital requirements. The cash reserves of $767k excludes $75k held in a bank account as a bond for
the NZX. These funds are held as security and restricted and accordingly have been included in the financial
statements as a non-current asset
Based on management budgets and plans, the Group will be able to meet financial obligations for at least 12 months
from the date of approval of interim financial statements.
The Directors believe that there is no material uncertainty in respect of the Group’s ability to continue as a going
concern for the period assessed above due to the level of its current cash holdings and ability to generate operating
cash flows. Nevertheless, in the event it fails to achieve planned profitability, the Group may not be able to continue
as a going concern.
If the Group were unable to continue as a going concern, and pay debts as, and when, they become due and
payable, adjustments to the carrying value of assets would have to be made to reflect the situation. In such
circumstances, assets may need to be realised and liabilities extinguished, other than in the normal course of
business and at amounts which could differ significantly from the amounts at which they are currently recorded in
the balance sheet. This situation would likely impact, in particular, on the carrying value of plant and equipment and
intangible assets

Page 11

BLIS TECHNOLOGIES LIMITED
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL
STATEMENTS
For the 6 Months Ended 30 September 2018


2. RECONCILIATION OF NET SURPLUS/ (DEFICIT) WITH CASHFLOWS FROM OPERATING ACTIVITIES
6 mths 6 mths 12 mths
30 Sep 18 30 Sep 17 31 Mar 18
(Unaudited) (Unaudited) (Audited)
$’000 $’000 $’000

NET SURPLUS/ (DEFICIT) FOR THE PERIOD (500) (1,246) (1,042)

Adjustments for non-cash items:

Depreciation 88 102 215
Amortisation of capitalised product development costs 74 120 242
Amortisation of patents 57 48 109
Amortisation of software 23 23 45
Foreign exchange loss/(gain) 42 (11) (30)
Loss/(Gain) on fair value of foreign exchange contracts - (2) -
─────── ─────── ───────
(216) (966) (461)
Movement in working capital
Accounts receivable 20 342 456
Prepayments 35 51 8
Accounts payable and income in advance 20 (40) 109
Inventories (25) 68 6
─────── ─────── ───────
50 421 579
─────── ─────── ───────
NET CASH INFLOW (OUTFLOW) FROM OPERATING (166) (545) 118
ACTIVITIES ═══════ ═══════ ═══════


3 SHARE CAPITAL - ORDINARY SHARES

Balance at beginning of period 37,338 37,298 37,298
Shares issued pursuant to CEO share plan - - 40
────── ────── ──────
Balance at end of period 37,338 37,298 37,338
══════ ══════ ══════


NUMBER OF SHARES ON ISSUE (000’S)

Balance at beginning of period 1,107,654 1,107,654 1,107,654

────── ────── ──────
Balance at end of period 1,107,654 1,107,654 1,107,654
══════ ══════ ══════

Page 12


BLIS TECHNOLOGIES LIMITED
NOTES TO AND FORMING PART OF THE INTERIM FINANCIAL STATEMENTS
For the 6 Months Ended 30 September 2018


Net tangible assets 6 mths 6 mths 12 mths
30 Sep 18 30 Sep 17 31 Mar 18
(Unaudited) (Unaudited) (Audited)
$’000 $’000 $’000

Total assets 3,389 3,212 3,888
Less intangible assets (706) (981) (843)
Less total liabilities (882) (441) (881)
──────── ──────── ────────
Net tangible assets 1,801 1,790 2,164
──────── ──────── ────────
Number of shares outstanding (‘000) 1,107,654 1,107,654 1,107,654
──────── ──────── ────────
Net tangible assets per share (cents) 0.16 0.16 0.20
════════ ════════ ════════

4. CAPITAL COMMITMENTS, CONTINGENT LIABILITIES

The capital commitments as at 30 September 2018 were $nil (30 September 2017: $260,000).



5. INVESTMENT IN SUBSIDIARY

Subsidiary Percentage Held Balance Date Principal Activity
2018 2017

Blis Functional Foods Limited 100% 100% 31 March Non trading


6. SEGMENTAL REPORTING

6.1 Adoption of NZ IFRS 8 Operating Segments
The Group is internally reported as a single operating segment to the chief operating decision-maker.

6.2 Revenue from major products and services
The Group’s revenues from its major products and services were as follows:

6 mths 6 mths 12 mths
30 Sep 18 30 Sep 17 31 Mar 18
(Unaudited) (Unaudited) (Audited)
$’000 $’000 $’000

BLIS™ products 2,978 2,047 5,242
Other revenue 74 25 46
──────── ──────── _______
Total revenue 3,052 2,072 5,288
════════ ════════ ══════

Other revenues mainly include interest, grants received and contract manufacturing revenue of non-BLIS®
branded products.

Page 13


BLIS TECHNOLOGIES LIMITED
NOTES TO AND FORMING PART OF THE INTERIM FINANCIAL STATEMENTS
For the 6 Months Ended 30 September 2018

6.3 Information about geographical areas
The Group operates in four principal geographical areas: Australasia, Asia (incl. China), Europe and North America.
The Group’s revenue from external customers and information about its assets by geographical location (of the
customer) are detailed below:
Revenue from external customer’s Non-current assets
6 mths 30 Sept 6 mths 30 Sept 12 mths 30 Sept 30 Sept 12 mths
2018 2017 2018 2018 2017 2018
31 Mar 18 31 Mar 18
(Unaudited) (Unaudited) (Audited) (Unaudited) (Unaudited) (Audited)
$’000 $’000 $’000 $’000 $’000 $’000
Trading Revenue
Australasia 697 484 873 1,526 1,626 1,703
North America 437 310 834 - - -
Asia 487 220 680 - - -
Europe 1,304 1,019 2,817 - -
Rest of World 62 36 81 - - -
Total Trading Revenue 2,987 2,069 5,285

Interest received 3 3 3
Grant Revenue 62 - -
──────── ──────── ────── ──────── ──────── ────────
Total Revenue 3,052 2,072 5,288 1,526 1,626 1,703
════════ ════════ ══════ ════════ ════════ ════════
Revenues for the 6 months to 30 September 2018 include $1,302k, $462k and $417k, which arose from sales to the
Group's three largest customers.
Revenues for the 6 months to 30 September 2017 include $1,019k, $347k and $310k, which arose from sales to the
Group's three largest customers.
Revenues for year ended 31 March 2018 include $2,797k, $834k and $589k, which arose from sales to the Group's
three largest customers.

7. SUBSEQUENT EVENTS
There were no subsequent events post 30 September 2018.

8. ADDITIONAL STOCK EXCHANGE INFORMATION
Refer to the half year preliminary announcement.

---

Blis Technologies Limited: 81 Glasgow Street, South Dunedin 9012, PO Box 2208, Dunedin 9044, New Zealand
T:+64 3 474 0988 E: info@blis.co.nz W: www.blis.co.nz
Blis Technologies Limited - Update of the company performance.
The Company releases the half year report for the six months ending 30 September
2018 (unaudited) (HY19).
These results show an increase in total revenue for HY19 of 47% compared with the
same period last year (HY19 $3.052m compared with HY18 $2.072m). The half year
report outlines growth across all regions we report on (Asia, Australasia, Europe and
North America).
The Company has continued to invest in marketing activity including the expansion
of our e-commerce channel, expanding our regulatory approvals and ensuring a
robust pipeline. This has resulted in an EBITDA deficit of $0.248m and a Net Deficit
before Tax of $0.500m which will be shown in the half year report.
We reaffirm our existing market guidance on the basis of second half year sales
aligning with the northern hemisphere winter and new customer/ market
opportunities, including the first supply for an expanded Australia launch. Full
financial year (FY19) Guidance - Revenue in excess of $7.0m, an EBITDA in excess
of $0.6m and a small net surplus before tax.
For further information please contact Brian Watson, CEO: 027 7059133

Brian Watson
Chief Executive

---

18004673 | 3989150
NZX APPENDIX 1 RELEASE
BLIS TECHNOLOGIES LIMITED
For the six months ended 30 September 2018
The information below relates to the preliminary announcement required under Listing Rule 10.3.1 and
Appendix 1 of the NZX Main Board Listing Rules:
2.1 Details of the reporting period and previous reporting period

Reporting Period 6 months to 30 September 2018
Previous Reporting Period 6 months to 30 September 2017

2.2 Information prescribed by NZX

RESULTS FOR ANNOUNCEMENT TO THE MARKET
For the six months ended 30 September 2018

Amount ($000s) Percentage change
Revenue from ordinary
activities
3,052 47.3% increase
Profit (loss) from ordinary
activities after tax attributable
to security holder
(500) 59.9% improvement
Net profit (loss) attributable to
security holders
(500) 59.9% improvement

Interim/Final Dividend: The Company does not propose to pay dividends to its shareholders.

2.3 The following information:

(a) A Statement of Financial Performance

Refer to the Financial Statements for the six months ended 30 September 2018.

(b) A Statement of Financial Position

Refer to the Financial Statements for the six months ended 30 September 2018.

(c) A Statement of Cash Flows

Refer to the Financial Statements for the six months ended 30 September 2018.

(d) Details of dividends or distributions

The Company does not propose to pay dividends to shareholders.

(e) Details of any dividend or distribution reinvestment plans in operation

The Company has no dividend reinvestment plan.

(f) Net tangible assets per security

Refer to Note 3 of the Notes to the Financial Statements for the six months ended 30
September 2018.

(g) Details of entities over which control has been gained or lost during the period

Nil

18004673 | 3989150

page 2


(h) Details of associates and joint venture entities

Nil

3.1 Basis of preparation

The financial statements for the six months to 30 September 2018 have been prepared in accordance
with Generally Accepted Accounting Practice (NZ GAAP) and comply with the New Zealand
Equivalents to International Financial Reporting Standards (NZ IFRS), as appropriate for interim
financial statements (NZ IAS 34).

3.2 Accounting policies

Refer to the Summary of Accounting Policies in Note 1 of the Notes to the Financial Statements for the
six months ended 30 September 2018.

3.3 Changes in accounting policies

There has been no material changes in the accounting policies applied in prepared of the Financial
Statements for the six months ended 30 September 2018.

3.4 Audit report

The interim Financial Statements for the six months ended 30 September 2018 have not been audited.

3.5 Additional information

Not applicable.

MAJOR CHANGES OR TRENDS IN THE COMPANY'S BUSINESS

Refer to the commentary in the Operations Report.

UNREALISED GAINS RESULTINGS FROM REVALUATIONS

There are no unrealised gains resulting from the revaluation of assets of the Company or its
subsidiaries, or any unrealised net changes in values or development margins of investment assets
included as separate items after profit before extraordinary items.