24 Nov

FY 2022 July to Oct Trading Result, Outlook & Update

Page 1 FY2022 Unaudited Trading result – July 2021 to October 2021 All figures AU$000 Sales EBIT Interest NPBT July - Oct FY22 Actual $2,798 - $1,350 $463 - $1,813 July - Oct FY21 Actual $6,753 - $889 $414 - $1,30 3 Change - $3,955 - $461 $49 - $51 0 The first four months trading conditions were extremely challenging as Covid lockdowns in NSW and Victoria caused significant disruption to the business. These results, while disappointing, are in line with our expectations. The Board highlights that last year's result included $2.5m of Job Keeper receipts, compared with $1.3m in Job Saver receipts this year. Excluding these government support payments, OLI has improved its operational result by $690k in the first four months of FY2022, despite sales declining by almost $4m. Outlook OLI anticipates that traffic flows will return to 2019 levels from December onwards, and the Company is optimistic that revenue from December 2021 to June 2022 might progressively improve to those experienced before COVID-19. In addition, revenue will be supported by both new product developments and marketing initiatives. The new operating model, as previously announced, has removed $4m in annual costs. OLI expects to continue its operations and meet its business objectives under the new operating model. If the revenue assumptions are achieved, the Company expects to generate positive operating cash flows in the second half of FY2022. Over the coming weeks, the Board will monitor store sales as COVID 19 restriction ease and keep shareholders informed of our actual trading performance. Oliver’s Real Food Ltd ABN 33 166 495 441 PO Box 3678 TUGGERAH NSW (02) 4353 8055 2 4 November 202 1 ASX Announcement ASX – OLI FY 2022 July to October Trading result and Outlook, ASX Suspension and Annual General Meeting Date Page 2 ASX Suspension The Company advises the market that after the release of our FY2021 annual accounts, OLI wrote on 7 October 2021 to the ASX and, for the second time, formally requested the ASX reinstate OLI shares. On 22 October 2021, the ASX sought additional information via a series of specific questions to enable them to consider our request further. These questions were answered in a letter dated 27 October 2021, and on 19 November, the ASX responded and concluded their letter as follows: - …While it is a matter for the entity to satisfy ASX that its financial condition is adequate to warrant quotation, ASX reiterates that as set out in its letter of 12 May 2021, one way that OLI may be able to satisfy ASX about the adequacy of OLI's financial condition is to demonstrate that it has a minimum working capital of $1.5 million at the point of reinstatement. OLI's submissions to date have not satisfied ASX that OLI's financial position is adequate to warrant reinstatement without this working capital position being achieved". The Company is disappointed by this decision. We accept the ASX's regulatory role, but we respectfully disagree with ASX's continued suspension of OLI shares under Listing Rule 12.2. Furthermore, the Directors comment that they and the external auditors have signed off on the FY2021 accounts based on actual results and the key assumptions used in preparing those accounts. The OLI Board notes the ASX concern about OLI's profitability and balance sheet. Still, it highlights to shareholders that the FY21 audit report and Emphasis of Matter is no different from OLI's FY20 audit report, which did not result in the suspension of OLI shares at the time of its release. It is now almost nine months since OLI shares were suspended under listing rule 12.2, yet we continue to operate, despite not having $1.5m in working capital. We have executed a significant restructuring of the business, removing $4m in operating costs, refinancing our loans at significantly lower interest rates, and increasing our borrowing limit. OLI believes that the market is fully informed of the Company's current financial position. The Board is now considering all options due to this latest communication from the ASX and will update shareholders at the Annual General Meeting. Annual General Meeting The Company can now advise that the Annual General Meeting is scheduled for Friday 21 January 2022, and further details will be released in the coming weeks. The Board of Directors has authorised this ASX release. ---END--- For further information, please contact : Kimley Wood, Chairman kimley.wood@oliversrealfood.com.au + 61 (0) 401 117 997 About Oliver's Real Food Limited (ASX:OLI) Oliver's Real Food Limited ( Oliver's ) listed on the ASX on 21 June 2017. Over its 15-year operating history, Oliver's has established a significant market position providing a healthy fast-food alternative for travellers on Australia's Page 3 major arterial highways. Oliver's Real Food is the world's first "certified organic fast-food chain" and provides its customers with premium quality, "real" food that is fresh, natural, & free from additives and preservatives. Oliver's is a conscious business that understands, and is committed to, the interdependency of "all stakeholders" including our, customers, investors, team members, suppliers, the environment, and the communities in which we operate. www.oliversrealfood.com.au

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